The Effect Of Customer Relationship Marketing On Customer Loyalty: The Case Of Commercial Banks In Ethiopia
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Date
2017-06-25
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Addis Ababa University
Abstract
Banking industry in Ethiopia has stiff competition thus banks need to consider
various strategic options and programs in order to survive and thrive. One of
strategy is Customer Relationship Marketing (CRM).This study was aimed to
examine the effect of customer relationship marketing dimensions (trust,
commitment, conflict handling, and communication) on customer loyalty of
commercial banks in Ethiopia. A survey was conducted, collecting data through
a questionnaire containing 30 items from sample of 384 conveniently selected
bank customers. The statistical result revealed that three relationship marketing
dimensions: trust, communication and conflict handling have positive and
significant effect on customer loyalty. Whereas commitment has negative and but
insignificance effect on customer loyalty. The relationship between relationship
marketing and customer loyalty was found partially significant. Banks should
focus on CRM so that they are expected to attracting new customers and more on
retaining the existed ones with regard to relationship marketing to increase
customer loyalty
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Keywords
Customer Relationship Marketing, Trust, Commitment