This thesis is made with research objectives below to find out what a CRM is appropriate for a travel agency and analyze factors influential in re-buying intention. On this thesis, I’m going first, to suggest effectingfactors on travel agencies’ C...
This thesis is made with research objectives below to find out what a CRM is appropriate for a travel agency and analyze factors influential in re-buying intention. On this thesis, I’m going first, to suggest effectingfactors on travel agencies’ CRM and analyze the effect on re-buying intention, second, to understand effecting factors on travel agency’s customer value and prove the customer value, third, to prove a switching cost which reduces the secession of travel agency’s customer and affects re-buying & oral communication for and customer retention
At the study of theory, theories are identified about CRM affecting factors, a customer value, a switching cost, a satisfaction on a travel agency and the intention of re-buying. As a result of theory study, the quality of customer relation (an emotional band), compensation and CRM enterprise environment factors are deducted as CRM influential factors. A pre-study on customer values comprised of commodity value, service value & brand value (Keller, 1993, Keeny, 1999) is done. Besides, a switching cost theory is used for a case where there is a mismatch between intention & action by meaning that intention doesn’t reflect action perfectly and explains this mismatching reason. At the analysis of current status, the overall status of travel industry and cases of major travel agencies’ CRM are reviewed. As a result of study, first, travel agencies’ CRM effecting factors for customer satisfaction is shown as the quality of relationship & rewards and it’s estimated that the quality of travel agency employee’s relationship & various rewards programs much affect a customer satisfaction. ([Hypothesis 1-1] [Hypothesis 1-2] [Hypothesis 2-1] adopted) The quality of relationship comprised of a front-end employee’s trust (S.E 0.805***) and satisfaction (S.E 0.776***) canbe estimated as an important effecting factor by positively affecting the satisfaction of a travel agency(S.E 0..393***) and a customer value(S.E 0.492***). Also, it is proved that rewards program executed at a travel agency is importantly considered for a customer value creation by verifying rewards’ effecting power on customer value(S.E 0.359***).
The second, customer value was comprised of commodity value, service value, brand value, and configuration factors to be able to improve travel agency’s customer value are re-illuminated. Travel agency’s customer values are commodity value(S.E. 0.849***)comprised of the role of TC(S. E. 0.550 ***), travel product(S.E. 0.715***) & travel pleasure(S.E. 0.739***), service value(S.E. 1.059 ***) comprised of an economical efficiency (S.E. 0.501***), convenience efficiency(S.E. 0.665***) and recreational efficiency(S.E. 0.701***) and brand value(S.E. 0.805***) comprised of the degree of a brand association(S.E. 0.714***) and the degree of brand recognition(S.E 0.444***). The third, the importance of switching cost is proved by confirming its effect on the satisfaction of travel agency & a re-buying intention.
As the result of research, it seems that the influence which travel agency satisfaction has on to re-buying intention is meaningful but not so much (S.E 0.261**). Even though a traveler was satisfied to a travel agency, the intention of choosing the same agency is rather little for a next traveling.
However, from an observation of value’s rising when adjusted with a switching cost (S.E. 0.667***), it can be confirmed that the effecting power on the intention of re-buying gets higher when a switching cost is adjusted. Therefore, the suggesting points of this thesis are as follows.
First, this thesis is suggesting it’s much more important to execute CRM appropriate to customers by catching the quality of relationship and customer’s needs though it’s important to implement the current generalized technical CRM environment at travel agencies.
Second, a travel agency’scustomer value shows the following difference in compared with customer value of the manufacturing industry. At first, the role of TC included in a commodity value represents the characteristics of a service product and items like traveling memories & fun are included in the commodity value, so these are estimated customer values unique only in the traveling industry. It can be confirmed that a travel agency should consider economical side, convenient usage & entertainment to create a customer’s positive value because the value of economical efficiency, convenience & entertainment is evaluated as important travel agency’s customer value in the field of service value. It is urgent for a travel agency to do R&D about its own brand because it’s revealed that brand association and brand awareness affects the creation of customer value.
Third, meaningful switching costs verified at this thesis are continuity cost and sunk cost. A continuity cost is a cost expressing the mental status of using a tourist bureau continuously and a sunk cost is a cost which might be from an inconvenience with burying of benefit to get from the existing tourist bureaus. As a result, tourist bureaus shall execute marketing by focusing to form a relation of continuous repurchase through various events like a compensation program and stimulating the sensitivity of customers.