The Effect Of Internal Marketing On Customer Satisfaction: The Case Of Commercial Bank Of Ethiopia (CBE)
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Date
2017-05-05
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Addis Ababa University
Abstract
The purpose of this paper is to explore the effect of internal marketing on customers’ satisfaction the case of Commercial Bank of Ethiopia. The study was descriptive and quantitative in its approach. A structured questionnaire was developed. The hypotheses were simultaneously tested on a sample of 504 out of 645 questioners distributed to customers and employees of the bank by selecting fourteen branches in Addis Ababa based on convenience sampling technique, giving a valid response rate of 78 percent. Several analytical techniques were used to assess the relationships among the variables under investigation such as Pearson correlation, multiple linear regressions. The application used to analyze and examine the hypotheses is the SPSS V20. The findings of this study have shown a significant effect of internal marketing dimensions on customer satisfaction at the level of (α ≤ 0.05) The mean scores of employees perception of the internal marketing program of the bank range from 3.48-4.12 indicating that it is more than average. Overall satisfaction on the internal marketing program of the bank has resulted a mean score of 3.14 which shows there is average satisfaction on the implementation of the identified IM elements. The entire IM dimension in this study is positively correlated with customer satisfaction. The regression result shows that the adjusted R Square value was .857 and this implied that IM dimensions (predictors) accounts for 85.7% of the variation in customer satisfaction which is significant and 14.3% are other extraneous variables that can affect customer satisfaction. Only job quality and reward, promotional activities and benchmarking of benefit packages are predictors of customers satisfaction with beta value of .955, .669 , and .818 respectively that have positive contribution for variation in customer satisfaction .The results are useful in identifying areas for strategic focus to help CBE to evaluate and implement internal marketing programs for the satisfaction of its customers to maintain its market leadership in the industry. As evident from the finding section that the study was conducted in Ethiopia only, applicability of the results in other countries may result differently. Further, as the study is conducted in the banking industry, application of the same in other industries, like; education and health may not come up with the same findings.
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Internal Marketing, Customer Satisfaction, Internal Marketing Dimensions