The Effect of Relationship Marketing Practice on Customer Loyalty- A Case in the Motor and Engineering Company of Ethiopia (Moenco)
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Date
2023-06
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Addis Ababa University
Abstract
This research sought to explore the influence of relationship marketing practice on customer loyalty in the context of the Motor and Engineering Company of Ethiopia (MOENCO). The independent variables examined were trust, commitment, perceived value, conflict handling, and empathy, while customer loyalty was the dependent variable. A convenient sampling method was utilized, and data was collected through a Google Forms questionnaire from 357 respondents. The resulting data was analyzed using SPSS version 27.Overall, the results of the study indicated that there was a significant positive relationship between relationship marketing practice and customer loyalty. Commitment, perceived value, conflict handling and empathy had a substantial impact on customer loyalty. In contrast, Trust had a less modest effect. These findings provide important insights into the importance of relationship marketing strategies in enhancing customer loyalty in the motor and engineering sector in Ethiopia. The study highlights the significance of the customers' perceived value of the company's products and services in creating customer loyalty. It also reinforces the need for companies to develop and maintain a high level of trust with their customers through a genuine commitment to customer satisfaction. The study also emphasizes employing effective conflict management strategies and displaying empathy towards customers. These findings have practical implications for management in the motor and engineering industry as they provide an understanding of the importance of relationship marketing practice in creating customer loyalty. The recommendations from this research can inform strategies aimed at improving customer retention rates, increasing customer satisfaction, and driving sales growth
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Keywords
Customer Loyalty, Relationship Marketing