The Relationship Between Relationship Marketing and Customer Loyalty; The Mediation Effect of Customer Satisfaction in Pharmaceutical Sectors of Addis Ababa
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Date
2019-12
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A.A.U
Abstract
The purpose of this study is to examine the relationship between relationship marketing and customer loyalty mediated by customer satisfaction in pharmaceutical sectors of Addis Ababa. The objective of the study is examining the relationship between trust, commitment and customer’s loyalty and it has also another objective to identify the mediating effect of customer satisfaction in the relationship between relationship marketing and customer’s loyalty. The study employs an explanatory research design and uses quantitative approach. A survey is conducted by using structured close ended questionnaires which is distributed to 270 pharmacists and druggists. Descriptive, correlation and multiple regression statistical tools is used to examine the relationship between trust, commitment, customer satisfaction and customer loyalty. To analyze the mediating effect of customer satisfaction bootstrapping method is used. The correlation result and findings show that trust, commitment and customer satisfaction are positively related with customer loyalty and the bootstrapping method shows that customer satisfaction partially mediates the relationship between relationship marketing and customer loyalty. Thus this study recommended that suppliers in the pharmaceutical sector of Addis Ababa are expected to invest more on attracting new customers and retaining the existing ones. They should recognize the importance of relationship marketing and customer satisfaction in creating loyal customers and implement it properly
Description
A Thesis Submitted to Addis Ababa University College of Business and Economics, School of Graduate Studies in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration
Keywords
Commitment, Customer loyalty, Customer satisfaction