The Effect of Relationship Marketing on Customer’s Loyalty In Commercial Bank of Ethiopia.
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Date
2024-06
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AddisAbeba Universty
Abstract
The purpose of this study was to examine the effect of relationship marketing on customer loyaltyin the Ethiopian banking business, in case of commercial bank of Ethiopia. There are severaldeterminants of relationship marketing like Trust, Commitment, communication, sharing values,Empathy and Conflict Handling. Here four dimensions of relationship marketing namely, Trust,Commitment, Empathy and Conflict Handling has been considered as predictor factors for theanalysis of this study. A quantitative approach descriptive study designs was used in thisresearch for the achievement of the objective of study. A structured questionnaire with five-pointLikert scale has been used to collect the data. 250 structural questionnaires have been preparedto get information from 10 branches customers of commercial bank of Ethiopia. A theoreticalcontext has been used as a standard to establish the relationships between the constructsexamined in the study. The SPSS version 13.00 for windows is used to process both the primary
data and secondary data which is has been collected through questionnaire has been distributedto customer of the bank through respective employee and the hypotheses were tested on thesecustomers’ responses. To investigate the relationship and effects of the variables Pearsoncorrelation and multiple regression analysis has been done. The findings of the study show that there is positive significant effect of trust and empathy on customer loyalty whereas commitmentand conflict handling didn’t have significant effect on customer loyalty. Thus, to make thisconcluding a strategic orientation adding value to the bank, it has to develop customerrelationship program that will help them build and support positive customer relationships. This
finding contributes to theory and practice of building long term customer relationship and alsoproviding recorded evidence.
Keywords: Relationship marketing; trust; empathy; commitment; customer loyalty