The Effect of Relationship Marketing on Credit Customer Retention: The Case of Selected Commercial Banks in Ethiopia

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


This research is conducted to investigate the effect of relationship marketing on customer retention. . It is casual research type. Data were collected through the five point’s likert scales of questionnaires. The questionnaire was physically distributed to credit customers of Commercial Bank of Ethiopia (CBE), Bank of Abyssinia (BoA) and Wugagen Bank (WB) who. Out of 358 customers 337 customers were completed and collected. Descriptive, correlation and regression analysis methods were used to analyze the collected data by using SPSS software version 20 and Questionnaires reliability was estimated by calculating Cronbach’s Alpha. Descriptive analysis tools such as frequency, percentage, to present results statistical analysis tools such as correlation coefficient was worked out and used to explore the relationships between variables. Regression analysis was performed to study the effect of independent variables on customer retention. Research findings indicates that there is a significant relation between customer relationship marketing components including trust, Commitment, customer satisfaction, conflict handling and communication on customer retention and also to regression testing that all variables were examined simultaneously on customer retention; results showed that all components have a significant effect on customer retention in the following order, commitment, trust, conflict handling, communication and satisfaction. It is also concluded that there is significance difference between public and private banks in terms of their CRM and customer retention practice, were privet banks practice CRM in a better manner. The researcher has recommended that commercial banks in Ethiopia need to improve their practice of Relationship Marketing in order to retain their customers in all levels dimensions of RM ; trust, commitment, communication, conflict handling and satisfaction



customer retention, Relationship Marketing, trust