The Effect of Relationship Marketing Strategy on Customer Retention: The Mediating Role of Commitment (The Case of Wegagen Bank in East District Branches of Addis Ababa)
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Date
2019-06
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Addis Ababa University
Abstract
The main objectives of this study was to determine the effect of relationship marketing strategy (RMS) on customer retention (CR) with the mediating role of commitment in Wegagen Bankeastdistrict branches of Addis Ababa. Both descriptive and explanatory research design was used to investigate and determine the effect of relationship marketing strategy on customer retention. A cross sectional data was collected using representativeness of the sample respondents by using convenience sampling technique there by 350 out of 383 survey questionnaires wascollected from the sample respondents. This study was a quantitative study and to analyze the collected data both descriptive statistics includingpercentage and frequency to analysis the background information of the respondents of the questionnaire and inferential statistics of multiple linear regression is used. The finding on the base of correlation analysis of the relationship between RMS and CR is analyzed and the result shows all RMS dimensions have positive and significant relation with CR. The finding of the study also shows that the predicting variables such as customer satisfaction, reward program and mediating variable (commitment) have positively and significantly impact on customer retention; trust has also positive and significant impact on commitment and commitment had significant impact on customer retention. Therefore, commitment have a mediation role between customer satisfaction and customer retention and commitment have also a mediation role between trust and customer retention. Finally from this finding of the study concluding remarks as well as recommendations are forwarded.
Description
A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Masters of Business Administration
Keywords
Commitment, Customer Satisfaction, Relationship marketing strategy