The Effect of Customer Relationship Marketing on Customer Loyalty in public and private Commercial Banks in Ethiopia

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Date

2017-06-07

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Addis Ababa University

Abstract

The purpose of this study was to explain the effects of customer relationship marketing dimensions on customer Loyalty of commercial banks in Ethiopia. Samples of 400 respondents were drawn from both public and private commercial banks in Addis Ababa, Ethiopia where structured questionnaires were distributed to these samples. However, the response rate from among the intended samples was only 96% therefore; around 384 responses were found to be workable by this study. A theoretical framework was used as a guideline to test the relationships between relationship marketing dimensions and customer loyalty. A quantitative method which is cross-sectional study with deductive approach and explanatory type of research design was chosen in this study. SPSS V 24.0 was used to analyze the data collected and to test the hypotheses put forward. The findings of this study then showed that all the dimensions of customer relationship marketing namely, trust, commitment, conflict handling, empathy and communication have a positive and significant relationship with customer Loyalty of commercial banks in Ethiopia which led to, the acceptance of hypotheses one through five. And this was found by running correlation and multiple linear regression analysis on SPSS.Also the testing of the sixth and the seven hypotheses, which set out to find any significant difference between the different dimensions of customer relationship marketing dimensions and customer loyalty of public and private banks respectively showed that there was significant difference which led to the acceptance of hypotheses six and seven. These findings are beneficial for both public and private banks in Ethiopia to make their customers Loyal

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Keywords

trust, commitment, conflict handling

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