An Empirical Study on Customer Retention: A Case Study of Melaka Tourism Industry
Abstract
Customer retention has been emphasized as a significant subject of study in the competitive landscape of tourism destinations. Melaka is among the most frequented sites in Malaysia by both local and foreign tourists. It features a combination of heritage attractions that reflect its designation as a World Heritage Site by UNESCO. This study examines the determinants of customer retention in Melaka empirically. Questionnaires were employed to gather pertinent information from the tourists to know the factors affecting their repeat visitation to Melaka. The objective of the study is to examine the relationship between Destination Attributes, Motive, Cost, and Promotion Strategy related to customer retention in Melaka. The results indicate that Destination Attributes, Motive, and Cost have a positive relationship to customer retention meanwhile Promotion strategy was not related to customer retention empirically. The findings of this study suggested that "cost" was the primary factor influencing customer retention in Melaka. In conclusion, first-time and returning tourists possess distinct expectations yet exhibit comparable pleasure about the aspects of heritage attractions in the Heritage City of Melaka. Future researchers are advised to explore additional factors such as service quality and attraction management to increase the scope of the study. Expanding the sample size would also provide more robust insights, allowing for a broader generalization of findings. By refining the research design, future studies can contribute to a deeper understanding of customer retention in the tourism sector.
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