The Effect Of Relationship Marketing On Customer Loyalty: The Case Of Selected Commercial Banks In Ethiopia

No Thumbnail Available

Date

2017-06-07

Journal Title

Journal ISSN

Volume Title

Publisher

Addis Ababa University

Abstract

The purpose of this study was to examine the effect of relationship marketing on customer loyalty in commercial banks in Ethiopia. Five dimensions of relationship marketing namely Trust, Commitment, Communication, Empathy and Conflict Handling were considered as predictor factors for the analysis of this study. A structured questionnaire with five point Likert scale was used to collect the data. A total of 400 questionnaires were distributed to customers of 8 big city branches of CBE, Awash Bank, Dashen Bank and Abay banks, based on convenience sampling method and 387(97%) were returned for analysis. Descriptive statistics were used to give general observation of the data and existing relationship marketing practice of the banks. To investigate the relationship and effects of the variables Pearson correlation and multiple regression analysis is done. Result of the study showed that 48.9% of customer loyalty was found to be explained by relationship marketing factors. Commitment, Trust and Conflict handling were found to be the major and significant contributing factors on customer loyalty while contributions of Communication and Empathy are found to be statistically insignificant. Based on the findings, it was recommended that the banks management to focus on the statistically significant factors in order to make customers more loyal. In addition, the study recommends the banks to focus on some relationship marketing factors such as empathy since such factors exhibited lesser mean value in the study.

Description

Keywords

Communication, Empathy, relationship marketing

Citation