CRM's Impact on Customer Loyalty in Restaurants
CRM's Impact on Customer Loyalty in Restaurants
Chapter 1
Introduction
Customer relationship management is the term used to describe how a business and its
customers perform and interact over time, as well as how this impacts the company. It entails
increasing customer satisfaction and loyalty as well as tracking these factors. Customer
practices, and technology used to manage and maintain relationships with customers.
Understanding consumer wants and preferences involves gathering and evaluating customer
data, interactions, and feedback. It's a tactic or technique that companies use to control how they
communicate and make connections with potential and current customers. Organizing,
automating, and synchronizing sales, marketing, customer service, and technical assistance are
objective is to enhance customer satisfaction, improve customer retention, and drive business
growth by fostering and nurturing strong and long-lasting relationships with customers. CRM
data collection enables firms to communicate with and learn from their customers. It offers
Agency (KOTRA) in Manila, the number of Korean restaurants in the Philippines has climbed
by 81.2 percent from 2014 to 2018. The Korean wave has had a great impact on the Philippines.
The Korean Wave (Hallyu) refers to the global popularity of South Korea's cultural economy,
which exports pop culture, entertainment, music, TV dramas, and movies. Due to social media
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
trends, it quickly gained notoriety in the Philippines. Korean dramas and movies reflect Korean
culture, particularly the cuisine. In that case, most Filipinos who became lovers of Korean
dramas and music were persuaded to purchase their preferred meals and goods from Korean
stars. One of them is samgyeopsal, one of Korea's most popular foods. Korean cuisine—
samgyeopsal is now considered part of the household treat where one can enjoy having a tasteful,
safe, and delightful feast with family as part of the new normal. Samgyeopsal became popular in
the Philippines with the entry of Korean dramas and films that captured the interest of many
Based on the studies and literature presented, the researchers aim to investigate the role
sought to identify how samgyeopsal restaurants manage to have a good customer relationship
with their customers as their marketing strategy. This may help other business establishment to
strategically essential for recruiting and boosting customer spending as online tourists become
more price-sensitive, less brand-loyal, and more sophisticated. Despite the crucial role that
eCRM plays in the success of e-commerce, its deployment frequently goes wrong or does not
always produce the desired results. The latter has enhanced research, however the majority of
studies have looked at eCRM implementation from a company's standpoint, ignoring the
perspective of the consumer. In this regard, the goal of this study is to look into how eCRM
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
affects how well-received hotel websites are by visitors. To do so, a customer-centric eCRM
model that immediately determines eCRM influence on e-services is proposed after first
In the study conducted by Elmuti, et al. (2009) to determine the obstacles that prevent
CRM success and to examine the effects of customer relationship management (CRM) as a
strategic strategy on overall organizational effectiveness. 500 randomly chosen financial service
management. Key managers from several financial service organizations were also interviewed
again. The findings indicate that firms usually thought they were handling their customer
relationship management initiatives successfully. They have, however, not yet attained the level
strategy for the majority of businesses. In today's global economy, organizations must identify
strategies to increase their productivity. It is vital for a business to motivate its employees and
Total quality service and customer relationship management affect customer satisfaction
and its impact on customer loyalty. Being able to create customer loyalty is also necessary to
have a good relationship between the customer with the [Link] result shows that: total
quality service have a significant effect on customer satisfaction; total quality service have
significant effect on customer loyalty; customer relationship management have significant effect
loyalty; and customer satisfaction significantly affect customer loyalty (Binsar, et al 2014).
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
organizations are using more and more to monitor and address their customers' needs to deliver
better and faster services. The role it plays in the knowledge management framework is
discussed, along with its applicability to institutional research and operations in higher education.
engages with a client, learns about that person's wants in response, and the customer is more
likely to remain a loyal customer. explains how marketing students can learn the basics of the
relationships with current and potential clients. Businesses in India are realizing the value of
CRM in fostering customer loyalty and encouraging repeat purchase intention because of the
rising need for personalized experiences and the fierce competition in nearly every sector.
Businesses can develop a deeper understanding of their consumers' wants and preferences and
Aldaihani et al., (2023) examine how customer loyalty in Kuwaiti local banks is affected
and technology-based CRM. From the 460 dispersed questionnaires in the study, 433 relevant
questionnaires were gathered using the convenience sampling method. To evaluate the
hypotheses that suggest a major mediating role for technological innovation in the relationship
between CRM practices and customer loyalty, the collected data were analyzed using AMOS.
Alanazi,(2023) presented how Saudi Arabia's five-star hotels' customer loyalty has been
affected by social customer relationship management. The study's main objective was to
determine how social customer relationship management affected Saudi Arabia's five-star hotels'
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
ability to retain customers. Customer value, long-term collaboration with the customer, customer
knowledge, reliance on technology, trust, and social media communication. the research
population. From 500 clients, a convenience sample was drawn; 413 legitimately recovered
Sumitha K (2022) explores customer relationship management (CRM) and its impact on
customer loyalty and satisfaction. It highlights how businesses use CRM techniques to manage
and expand relationships, and how analytical CRM analyzes customer interactions for innovative
Binsar, (2014) examines the impacts of customer relationship management and complete
quality service on client satisfaction and loyalty. KFC, a fast-food restaurant, is constantly
working to enhance its overall quality of service in order to sustain customer pleasure, which will
then lead to an increase in customer loyalty. To have a solid relationship between the customer
and the restaurant, you must be able to build client loyalty. Customers of the KFC fast food
restaurant in Rungkut Surabaya, Indonesia, made up the entire research population. Using the
outcomes of the model's testing in this study, analysis of structural equation models, and
what value the will customer gets rather than on the products or services to be sold by the
are expected to be able to establish communication and a good relationship with their customers.
This condition is also expected that the company will not only sell and market a product and
service with good quality or competitive prices but also be able to answer customers' desires and
needs as described by Indah and Dewi, which can lead to satisfaction and customer loyalty.
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer Loyalty
Kim, et al. (2014) Prior cross-cultural study on consumer complaint behavior has
revealed that Asian customers, who tend to be collective rather than individualist, are more likely
to choose non-confrontational responses like switching and bad word-of-mouth rather than voice
complaints. However, we argue that this link might not be valid when considering cultural values
such as customer loyalty, price range, and power distance. In order to better understand how
culture, patron loyalty, and restaurant pricing affect complaints from customers, we did an
experiment. Our findings suggest that when there is no strong loyalty to a restaurant and while
paying a premium price for the service, Asian customers may in fact be vociferous public critics.
Lee et al.(2005) determine the relative effects of service quality on service value,
customer satisfaction, and loyalty, including the likelihood of repeat business and good word-of-
mouth recommendations. Surveys received responses from 218 customers of Korean restaurants.
The empirical findings and results of the data analysis using LISREL 8.5W are as [Link],
clients perceive service values, the physical, assuring, and sensory elements of service quality.
Second, customer satisfaction increases as the empathy component of service quality increases.
Third, customer satisfaction, positive word-of-mouth advertising, and customer intent to return
As stated by Kotler, [Link] (2011) consumer loyalty in general can be interpreted as fidelity
consumer satisfaction to use the facilities and services provided by the company, as well as to be
According to Pathmini M., (2015), customer loyalty and satisfaction places a premium on
service marketing tactics, particularly service quality and in-store purchasing. The objectives of
this paper are to show a portion of the literature that exists around customer loyalty and service
tactics. It was discovered that customer pleasure and, consequently, customer loyalty are
influenced by service techniques. As a result, the review's findings suggest that customer
satisfaction has a substantial impact as the component that stands between service plans and
customer loyalty. Additionally, it demonstrates how tactics for service quality and service
customer satisfaction and loyalty, as well as between customer contentment and trust. Customer
satisfaction also had an impact on customer trust, demonstrating that consumer contentment is a
prerequisite for customer trust. Additionally, it was shown that consumer trust had an indirect
effect on the relationship between customer happiness and loyalty. Future research may be
repeated in various service environments, and a comparison of the models of public and private
Binsar K., et al. (2014) examine the impacts of customer relationship management and
complete quality service on client satisfaction and loyalty. KFC, a fast-food restaurant, is
constantly working to enhance its overall quality of service in order to sustain customer pleasure,
which will then lead to an increase in customer loyalty. In order to have a solid relationship
between the customer and the restaurant, you must be able to build client loyalty. Customers of
the KFC fast food restaurant in Rungkut Surabaya, Indonesia, made up the entire research
population. The 200 responders were able to explain the model's performance using the
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
research's testing findings utilizing random sampling, structural equation modeling, and the
Amos 20 software. The 200 respondents were able to explain the relationship between the total
service quality, customer relationship management, customer satisfaction, and customer loyalty
to KFC fast food restaurants in Rungkut Surabaya, Indonesia, based on the results of the model's
testing in this study, using accidental sampling, structural equation modeling analysis, and
software support from Amos 20. Customer relationship management significantly affects
and customer satisfaction significantly affects customer loyalty, according to the results. Total
Jang S. Et, al (2014) stated that first-time diners and repeat customers had different
perceptions of the atmosphere, employee service, and meal quality at Korean restaurants. This
study is distinctive in that it enables restaurant owners to comprehend how dissatisfied clients
turn into devoted patrons. In general, first-time customers with high intentions to return thought
the quality was higher than it was for first-time customers with low intentions to return.
visitors with high intentions to return. Based on the findings, this study offered some applicable
advise for Korean restaurateurs. Although ambient variables play a significant role in first-time
tourists' willingness to return, Korean restaurateurs must also emphasize spicy food.
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Korean Restaurant
Kim S., et al. (2017) This study looks at how consumers' perceptions of experiential
value in Korean family restaurants affect their consuming feelings, self-connectivity with the
restaurant brand, and ultimately, their brand loyalty. After conducting a thorough review of the
literature, the study proposes and estimates a model that details the interactions between three
latent variables positive and negative emotions, self-connective attachment, and brand loyalty
and four dimensions of experiential value, namely atmosphere, escapism, customer return on
investment, and service excellence. Data gathered from South Korean family restaurants'
customers was used in an analysis with structural equation modeling. The findings indicate that
experience value dimensions can have a positive or negative impact on emotions. The links
between the perceived value of the eating experience and brand loyalty are also mediated by the
choosing a restaurant because they play a significant role in the decision-making process. On the
other hand, because younger generations tend to imitate Korean pop culture, which is a major
force in Korean media, Korean cuisine is becoming more and more popular throughout the
over other ethnic eateries in Malaysia. This is a result of customers' favorable opinions of Korean
cuisine and its culture. The goal of this study is to determine how customers' perceptions affect
their decision to choose a Korean restaurant in Malaysia. both published studies and the study of
other academics. In this study, the consumer impression and its impact are evaluated along with
Caldito R., (2022) investigate how generation Z consumers in Metro Manila are
influenced by the brand equity of Samgyupsal restaurants. The Korean BBQ sector has been
expanding and has dominated the Philippine market, which is why the study was done.
Additionally, to assess what the underlying factors are that lead consumers to choose one brand
over another. The research will be of considerable importance to Korean restaurant operators,
marketers, and future academics because it is focused on Korean BBQ restaurants and many
elements connected to purchasing decisions. The study's findings show that in Metro Manila,
quality, and customer happiness. The researchers have suggested the following as a result of the
study's findings: (1) Identify their shortcomings to provide high-quality products and services.
(2) Improving their analysis of the competition. A strong brand is one that can change with the
needs of the marketplace. (3) Korean barbecue businesses must comprehend the market and their
place within it in order to be successful. (4) Lastly,Korean BBQ restaurants should pay greater
attention to their patrons' comments and ideas to determine whether or not their customers are
satisfy.
Chul J.'s (2017) examined the connections between Chinese visitors' behavior intentions
and the perceived value, satisfaction, and quality of the cuisine at Korean restaurants.
Exploratory factor analysis, second-order confirmatory factor analysis, and structural equation
modeling were all used to examine the data. The findings demonstrate that food quality—which
food quality had the greatest influence on perceived value. The current research suggests that
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Korean restaurant marketers should focus more on enhancing food quality, which raises
perceived value and pleasure and, in turn, can result in repeat business and recommendations
field.
Mujiya U., (2016) find ways to attract new customers, retain existing customers, and
remain competitive and profitable. As competition increases, delivering better service becomes
more important. Service quality is considered as a vital aspect for the success of the firms.
Restaurant cannot be separated from the service quality they have to de- liver. The development
of restaurant is supported with the reputation of the country where the food comes from.
Recently, one of the most trending topic is Korean wave which affects the Korean cuisine. A
fuzzy AHP was employed to evaluate the service quality. It is more preferable than traditional
AHP which is criticized for its inability to handle the uncertainty of the decision maker’s
perception. Six attributes are used to evaluate five Korean restaurants in Sema- rang, Indonesia.
It seems that decision makers viewed the food variation and new method service as main
factors that the restaurants have to manage. This finding can pro- vide the managers with
valuable insights into the attribute that reflects customers’ perceptions; also to position their
service based on their competitors. Five Korean restaurants in Semarang, Indonesia are evaluated
using six different criteria. The outcome demonstrates that creativity is the most significant
quality. The decision-makers' apparent priorities for restaurants to manage seem to be the variety
of the food and new methods of service. This discovery can give managers insightful information
about the factor that represents consumers' perceptions and help them position their service in
In this study, the researchers aims to investigate the role of CRM in enhancing the
customer loyalty among samgyeopsal restaurant in Porac. Specifically; it sought to answer the
following questions:
a. Years in operation
b. Location
c. Number of employees
Conceptual Framework
A research framework was generated based on the literature study to investigate the
correlation between s-CRM and customer relationship performance concurrently. The conceptual
processes
Customer
Relationship
orientation
H3
Customer Social
H1
Engagement Information
initiatives Processes
Customer
H5 H6 Relationship
performance
S-CRM
Technology
Capability
H2
H4
business owners toward their customers, and the subject matter is investigating the role of
customer relationship management (CRM) in enhancing customer loyalty. The area of the study
covered the municipality of Porac, Pampanga, while the total samgyeopsal in Porac was 13 and
composed of 13 respondents, which are the business owners of samgyeopsal in Porac. The study
was limited to analyzing customer relationship management and enhancing customer loyalty,
which may help business owners determine how customer relationship management affects
Business owners. . This study will benefit business owners because it will help them
understand their relationship with their customers. Through this research, they can get a deeper
Consumer. The customer will benefit when the business adopts changes or improvements to
Future entrepreneur. The result of this study will help future entrepreneurs understand the role
and importance of CRM in enhancing customer loyalty. This study will serve as a guide for them
Future researchers.
The result of this study will help the future researchers find out more about the role of customer
they conduct a same study, they can use this study as a reference.
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Definition of Terms
For clarification, the important terms used in this study have been defined. The following
terms are:
technologies companies use to manage and analyze customer interactions and data throughout
the customer lifecycle, with the ultimate goal of improving customer satisfaction, loyalty, and
retention.
Customer loyalty- describes an ongoing emotional relationship between you and your
customer, manifesting itself by how willing a customer is to engage with and repeatedly
3customer after using a product or service. It is a measure of how well a business meets or
surpasses the expectations and needs of its customers, resulting in their overall satisfaction with
Korean Wave (Hallyu)- refers to the global popularity of South Korea's cultural
economy, which exports pop culture, entertainment, music, TV dramas, and movies.
Samgyeopsal- is a popular Korean dish that consists of thick, fatty slices of pork belly.
It's typically grilled at your table and eaten with sides like kimchi, lettuce, and a spicy dipping
sauce.
cuisine. It typically offers a variety of dishes such as kimchi, bulgogi, bibimbap, kimbap, and
Consumer- is a person who purchases goods and services for personal use.
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
groups when making purchasing decisions. involves the study and analysis of how customers
E-commerce- short for electronic commerce, refers to the buying and selling of products
Total quality management (TQM)- is the continual process of detecting and reducing
Chapter 2
METHODOLOGY
This chapter concentrates on the details of the structure of the study. Specifically, the
discussion of the research design, data sources, research instruments, data analysis, and ethical
Research Design
A quantitative descriptive research method was used in this study to investigating the role
Samgyeopsal restaurant in Porac, Pampanga. This study applies quantitative descriptive analysis
to understand customer satisfaction and loyalty in different types Korean Restaurants. It's a great
example this method can be used to study specific aspects of the restaurant industry (KIM 2009)
In this study, it is about studying the customer relationship management in various ways,
such as conducting surveys or face to face interviews, the researcher could visit the restaurants.
This method allows for a more personal connection and the ability to observe the restaurant
environment.
Respondents
The respondents of this study are the owners of Korean Samyeopsal restaurants around
Porac, Pampanga. Korean restaurants must operate for at least 2–6 months, regardless of the
number of their employees. The researcher identified the number of Korean Samyeopsal
Pampanga.
INVESTIGATING THE ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Research Locale
The researcher will conduct this study about customer relationship management (CRM)
province of Pampanga, because nowadays there are a lot of samgyeopsal restaurants that are
established in Porac.
Research Instruments
The tool that was used to gather and collect information from the respondents regarding
the research interests and objectives was discussed. To ensure the highest level of reliability and
validity, the researchers used structured survey questionnaires as the main data-gathering
instrument for this study. The respondents will provide the needed information to determine and
complete the survey. Individual perceptions will help the researcher complete the data needed in
the study: the questionnaire proper. The questionnaire describes how the respondents may be
the importance of customer relationship management? How do respondents evaluate the effect of
CRM on their sales? These are the questionnaires that the researchers will include in the survey
to gather information based on the responses. A Likert scale method will also be used, for it is a
rating scale that allows respondents to choose answers ranging across a spectrum of choices to
The quality of research is indicated by the ability of instrument development in the study.
It was lessened if it did not include any references to back up the study by analyzing,
interpreting, and evaluating the problem and statements made by the research. The researchers
used one-on-one interviews to educate their thoughts and establish the basis of the ideas and
concepts applied in this study. They patiently conduct interviews, spending a lot of time
collecting facts and ideas that will also support the study.
Data Sources/Gathering
A survey questionnaire was adopted from the same study and then distributed through an
actual survey of the proprietors of every Samgyeopsal here in Porac. The researchers clarified
the significance of the respondent to this investigation. In order for respondents to complete the
questionnaire completely aware of their population, researchers must first clarify specific
concepts to them. The researchers instructed the respondents to provide complete and truthful
responses. The researchers collected, totaled, and then evaluated the data after the respondents
completed the questionnaire in order to determine the owner of the Samgyeopsal and its impact
on customer loyalty. To apply and analyze the data, the most accurate statistical techniques
Ethical Consideration
The researchers completely followed the DHVSU legal and ethical standards in
accomplishing this research study. Before the study, respondents' full consent and permission
were acquired, and in their participation, they could accept or decline to participate. The
researchers ensured that all the identity, information, and data collected were confidential and
privately analyzed with all transparency and honesty. To secure the privacy of the respondents,
researchers apply Republic Act No. 10173, also known as the Data Privacy Act of 2012 (DPA),
which aims to protect personal data information collected from the respondents. All of the
related literature that have been used in this study were properly cited. The researchers also
guaranteed that this study was only used for academic purposes and the completion of the
Data Analysis
In analyzing and interpreting the data gathered in the process of data collection. The
researchers will use a specific statistical tool like the use of percentage, frequency distribution,
In describing the profile of the respondents in terms of their year in operation, location,
and number of employees, the researchers will use percentage and frequency distribution.
In describing CRM, its importance, and its effects on the sales of the restaurants, the