The Effect Of Customer Relationship Management On Customer Loyalty: (The Case Of Current Account Customers Of Three Commercial Banks In Ethiopia)

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Addis Ababa University


The purpose of this study was to investigate the effect of customer relationship management on customer loyalty: the case of current account customers of three commercial banks in Ethiopia. A theoretical framework was used as a guideline to test the relationships between relationship marketing dimensions (trust, commitment, empathy, and conflict handling) and customer loyalty. In order to obtain information from customers of the banks quantitative data collection tools were used. Non-probability sampling method was employed to select respondents; specifically convenience sampling technique was used. Accordingly, the study has selected 384 respondents from Commercial Bank of Ethiopia, Awash International Bank S.C., and Deshen Bank S.C. branches that operates in Addis Ababa and 384 questionnaires were distributed to customers, all were collected. Descriptive statistics were used to analyze demographic data and correlation, regression and independent sample t-test were used to analyze the five scaled questions.To aid computation statistical package for social science (SPSS) soft ware version 20.0 was used. The findings show that relationship marketing dimensions have effect on customer loyalty. All the independent variables are positively and directly related to customer loyalty in banking industry. The relationship between relationship marketing and customer loyalty is significant. Therefore, to retain and develop loyal customers, the banks should be trustworthy and show commitment, providing individualized attention to customers and must resolve conflicts in a manner that will eliminate unimportant loss and inconvenience to their customers



customer relationship management, customers, relationship marketing