The Impact of Relationship Marketing on Customer Loyalty in Commercial Bank of Ethiopia, Addis Ababa District Branches
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Date
2015-05
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Addis Ababa University
Abstract
The purpose of this study is to discuss the impact of relationship marketing on customer loyalty in Commercial Bank of Ethiopia. The customer loyalty in banking has seen a major concern due to severe competition and higher customer expectations. Further to that, one way to enhance customer loyalty in banking is by focusing on offering excellent services and meeting the needs of customer. The population of this study was customers of CBE who are banking with various branches of the bank found in various geographical locations of Addis Ababa specifically from the four, North, south, west and east districts of the bank, which have got 190 branches. , which was unknown numerically. To obtain representative samples, in selecting the research respondents, convenient method was applied, this sampling method helps for a population from which sample has been constitute a homogeneous group, therefore the study takes 384 respondents as target respondents from these customers .A quantitative method which was cross-sectional study with deductive approach was chosen in this research. The SPSS version 17.00 for windows was used to process the primary data which was collected through questionnaire; a theoretical framework was used as a guideline to test the relationships between relationship marketing dimensions and customer loyalty. Next, the research presents the research framework, methods, measures and findings and conclusion. By analyzing the relationship of every construct in the theoretical framework loyalty to provide the outcome measures for the hypotheses, thus, the study was reviewed the marketing literature on the experience of customer loyalty i.e., trust, commitment, empathy and conflict handling. Finally, the results were discussed in terms of its contribution to the upgrading of banking services and recommendations for future research. The findings show that relationship marketing dimensions have impact on customer loyalty. All the independent variables are positively and directly related to customer loyalty particularly in Commercial Bank of Ethiopia. The relationship between relationship marketing and customer loyalty is significant. Therefore, Commercial bank Ethiopia should make the whole system on work with customers, and also they are expected to invest more on attracting new customers and retaining the existed ones with regard to relationship marketing to increase customer loyalty
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Customer commitment, Conflict handling, customer loyalty