The Effect Of Customer Relationship Marketing On Customer Loyalty: The Case Of Ries Engineering-Rental(Resco-Rental)
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Date
2017-06-14
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Addis Ababa University
Abstract
The main purpose of this study was to examine the effect of relationship marketing dimensions (trust, commitment, empathy and conflict handling) on customer loyalty in Ries Engineering-Rental. The study used a quantitative approach, and an explanatory research design was also employed. By considering the scope of the study all 60 B2B customers of Resco-Rental located in Addis Ababa were considered to take part in the study. A census study was conducted by taking 300 people including production managers, project managers, and general managers as a target respondent: 300 is the total available number of respondents in those, 60 B2B customers of Resco-rental. The study employed a questionnaire adopted from previous studies and relevant literature as a data gathering instrument. The researcher has gathered data from 270 respondents, which are about 90 % of the total 300 questioners that were distributed to respondents. The data analysis was conducted through statistical techniques such as descriptive statistics, bivariate correlations and multiple linear regressions by using SPSS software-version 20.00.
The results of data analysis show that, the four variables namely, commitment, empathy. conflict handling and trust aggregately explained or affected 43.7% of variance on customer loyalty in descending order but the rest 56.3% is explained by other factors. Moreover, they are significantly related and contribute differentially to customer loyalty. Commitment is the most important predictor of customer loyalty followed by empathy, conflict handling and trust. This shows that, the company has to be committed enough to have customer loyalty and also need to focus it on its core services so as to gain its customers’ trust.
It is reasonable to conclude, on this evidence, that customer loyalty can be created, reinforced and retained by marketing plans aimed at building trust, demonstrating commitment to service, treating customers as they want to be treated, and handling conflicts effectively and efficiently. This study may be affected by a limitation because it couldn’t involve other companies in the rental industry; however, the model allows the study to be a base for future researches
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Customer Relationship Marketing, Customer Loyalty, Commitment