The Effect Of Relationship Marketing On Customers’ Loyalty In Banking Industry: The Case Of Commercial Banks In Sebeta City Municipality Town
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Date
2017-05-14
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Addis Ababa University
Abstract
Every firm without good marketing team and strategies is bound to fail. In order to be competitive and profitable in the industry, bankers should acquire and retain profitable customers. Definitely this is done with relationship marketing. Relationship marketing is a philosophy of doing business, a strategic orientation that focuses on keeping and improving current customers rather than acquiring new customers. Therefore, relationship marketing has become more and more important since last decade of 20th century, especially in service industry. This research was conducted to investigate the effect of relationship marketing on customer’s loyalty in the banking industry in Ethiopia the case of commercial banks in Sebeta city municipality town. There are many relationship marketing dimensions implemented for retaining customers. This study was aimed to explore the effect of relationship marketing dimensions (trust, commitment, conflict handling and empathy) on customers’ loyalty in banking industry in Ethiopia the case of commercial banks in Sebeta city municipality town. A quantitative research approach which is cross sectional study with deductive approach was used in this research. Data was collected from primary sources. In order to collect primary data, a standard questionnaire was designed. The questionnaire was distributed to 280 customers of both private and public commercial banks found in Sebeta city municipality town. Descriptive, correlation and regression analysis methods were used to analyze the collected data using SPSS version 17.00. Questionnaire Reliability test was estimated by cronbanch’s alpha. The finding shows that relationship marketing dimensions namely trust, commitment, conflict handling and empathy are positively and directly related to customers’ loyalty particularly in commercial banks in sebeta city municipality town.
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Relationship Marketing, Trust, Commitment