The Role of Customer Relationship Management in Building Customer Loyalty: The Case of Zemen Bank S.C

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title



The aim of this research is to determine if customer relationship management has an effect on customer loyalty in the context of Ethiopia banking industry taking “Zemen Bank S.C” as a case study. The underpinnings of customer relationship management orientations: communication, trust, relationship commitment, and conflict handling were used as independent variables whilst customer loyalty was treated as the dependent variable. For this study, accessible population of 265 the bank customers who are classified as corporate and high net worth individuals was conveniently selected. A structured questionnaire was used to collect data form respondents by using a self-administered data collection system. Data analysis mainly took place in AMOS 20.0 and SPSS 21.0 through structural equation modeling (SEM) to test hypothesized causal relationships. The study found out that the four underpinnings of customer relationship management orientations such as communication, trust, relationship commitment, and conflict handling, significantly and positively affect customer loyalty. Results of structural equation modeling analysis shows that zemen bank customers tend to be very loyal if the bank remains trustworthy to the clients; communicates them openly and timely, stay committed and tries to avoid conflict or willing to solve conflicts that already manifested



Customer Relationship Management, Customer Loyalty, Communication