The Effect of Customer Relationship Marketing on Customer Loyalty in Ethiopian Private Commercial Banks
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Date
2023-06
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Addis Ababa University
Abstract
This research paper intended at exploring the effect of Customer relationship quality on customer loyalty through adopting a descriptive and explanatory research design. The target population for this study comprised customers who have had previous experiences with the corporate Banking services offered by the three Ethiopian Banks namely: Dashen bank, Bank of Abyssinia and Awash Bank. The sample size of this thesis project was therefore, 376 customers who have a corporate banking relationship with Dashen Bank, Awash Bank and Abyssinia Bank in the four districts of Addis Ababa as respondents. The study used first hand data that has been gathered through structured and close ended questionnaires. Correlation analysis was performed to determine the degree of relationship between customer relationship Marketing quality dimensions namely: Trust quality, commitment quality, communication quality, customer focus and knowledge management. Multiple regression analysis was also done to evaluate the effect of the above stated explaining variables on customer loyalty. The study established that at 5% level of significance, there is a positive and significant interconnection between Customer relationship quality dimensions and customer loyalty. Furthermore, the study revealed that all the developed constructs have a significant impact on customer loyalty in the studied area. Finally, the research found that customer focus quality is the highest significant factor that affects customer loyalty followed by commitment quality, trust quality, communication quality and knowledge Management. Hence, Banks should prioritize customer focus by implementing customer-centric strategies, establishing strong commitment to corporate customers, build trust and ensure effective communication to make customer loyal.
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Customer Loyalty