Xenocentrism, Country-of-Origin Perception, and Switching Barriers: A CRM-Based Consumer Behavior Perspective in Five-Star Hotels in Bali

I Made Bagus Dwiarta (), Budiyanto () and Djawoto ()
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I Made Bagus Dwiarta: Universitas PGRI Adi Buana Surabaya, Indonesia
Budiyanto: Full Professor, Head of Doctoral Program in Management Science Study, Indonesia School of Economics (STIESIA), Indonesia
Djawoto: Indonesia School of Economics (STIESIA), Surabaya, Indonesia

European Journal of Studies in Management and Business, 2025, vol. 36, 1-15

Abstract: This study examines the mediating role of Customer Relationship Marketing (CRM) in the influence of consumer xenocentrism and Country-Of-Origin Perception (COOP) on switching barriers in the context of five-star hotels in Bali. A total of 140 hotel guests were surveyed using a quantitative approach, and the data were analyzed using Structural Equation Modeling (SEM-AMOS). The results indicate that consumer xenocentrism and COOP significantly affect CRM; however, the mediating effect of CRM on switching barriers is positive but not statistically significant. These findings challenge conventional CRM perspectives that relational strategies alone are sufficient to enhance customer retention. Instead, foreign brand prestige and origin-based superiority exert a stronger influence on switching resistance formation than relational efforts managed by domestic hotels. Theoretically, this study extends Service-Dominant Logic (SDL) by introducing xenocentrism and COOP as boundary conditions that may weaken CRM effectiveness in luxury hospitality markets. Practically, domestic hotels need to shift CRM strategies from transactional incentives to cultural value differentiation supported by technology-enabled service innovation. This study contributes by offering empirical evidence on CRM limitations in emerging tourism markets and by providing strategic insights to strengthen the competitive advantage of domestic luxury hotels competing against global hotel brands in Bali.

Keywords: Consumer Xenocentrism; Country-of-Origin Perception; Customer Relationship Marketing; Switching Barriers; Luxury Hospitality in Bali (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bco:mbrqaa::v:36:y:2025:p:1-15

DOI: 10.32038/mbrq.2025.36.01

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