The Role of Customer Relationship Management in Building Customer Loyalty: The Case of Zemen Bank S.C
No Thumbnail Available
Date
2016-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
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
Description
Keywords
Customer Relationship Management, Customer Loyalty, Communication