The Role of Customer Responsive Culture in Enhancing Customer Loyalty: the case of Cooperative Bank of Oromia Addis Ababa City branches
No Thumbnail Available
Date
2018-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Customers have an unquestionable role for the success of any banking industry. Its significance will be more if they are loyal customers. This research is made to indicate the role of customer responsive culture in enhancing customer loyalty by showing it as alternative way beside other means to enhance customer loyalty. Consequently, it is sought to fill the knowledge gap in this area. In this study, variables shaping customer responsive culture (personality of employee, formalization, employee empowerment, listening skills, role clarity and organizational citizenship behavior) are independent variables and customer loyalty is dependent variable. The sample size for the study is 400 customers. And a questionnaire with a 5 point Likert scale is applied as data collection instrument from the sampled customers. The researcher used convenient sampling method to distribute the questionnaire. The questionnaires are distributed to the customers of eight branches found in the three district divisions of CBO. After branch selection, 420 questionnaires are distributed to customers but 355 among returned are fit for data analysis. SPSS version 20 is adopted to analyze these data. As of the finding on average the customers tend to be loyal to Cooperative Bank of Oromia. In addition, customers feel customer responsive culture level at CBO is medium or higher. However, there are customers with significant share of lower test for both the level of customer loyalty and customer responsive culture. The correlation analysis revealed that there is statistically significant medium and strong positive correlation between all the independent variables and customer loyalty. Moreover, formalization (0.544) and organizational citizenship behavior (0.521) have strong positive correlation with customer loyalty. The regression analysis also revealed that formalization (β=0.203) and organizational citizenship behavior (β=0.201) citrus paribus have a positive and higher effect than other independent variables on customer loyalty. To sum up, as the data analysis indicated customer responsive culture have a significant influence on customer loyalty where 55.8% of variation in customer loyalty is affected by the shaping variables of customer responsive culture.
Description
A Thesis Submitted to Addis Ababa University College of Business and Economics in Partial Fulfillment of the Requirements for the Master of Business Administration (MBA)
Keywords
Customer loyalty, Customer responsive culture