The Effect Of Internal Marketing On Customer Satisfaction: The Case Of Private Universities In Bishoftu Town

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Addis Ababa University


The purpose of this paper is to explore the effect of internal marketing on customers’ satisfaction the case of Private Universities in Bishoftu Town. The study was Explanatory and quantitative in its approach. A structured questionnaire was developed. The hypotheses were simultaneously tested on a sample of 267 out of 316 questioners distributed to customers and employees of the universities by selecting convenience sampling technique, giving a valid response rate of 84 percent. Several analytical techniques were used to assess the relationships among the variables under investigation such as Pearson correlation, multiple linear regressions. The application used to analyze and examine the hypotheses is the SPSS V20. The findings of this study have shown a significant effect of internal marketing dimensions on customer satisfaction at the level of (α ≤ 0.05.The entire IM dimension in this study is positively correlated with customer satisfaction. The regression result shows that the adjusted R Square value was .622 and this implied that IM dimensions (predictors) accounts for 62.2% of the variation in customer satisfaction which is significant and 37.7% are other extraneous variables that can affect customer satisfaction. Only upward communication, job quality and reward, promotional activities and benchmarking of benefit packages are predictors of customers satisfaction with beta value of .272, .439, .186, and .259 respectively that have positive contribution for variation in customer satisfaction .The results are useful in identifying areas for strategic focus to help private universities to implement internal marketing programs for the satisfaction of its customers to increase their market share in the industry. As evident from the finding section that the study was conducted in Ethiopia only, applicability of the results in other countries may result differently. Further, as the study is conducted in the education sector, application of the same in other industries, like; finance and health may not come up with the same findings



Internal Marketing, Customer Satisfaction, Internal Marketing Dimensions