The Impact Of Customer Relationship Marketing On Customer Loyalty In Banking Industry, The Case Of Dashen Bank
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Date
2017-06-03
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Addis Ababa University
Abstract
The purpose of this study is to provide an insight into the impact of relationship
marketing strategy on customer loyalty of retail banking industry particularly in Dashen
bank and to examines whether these relationship strengthen through improvements in
banking relationship. A questionnaire derived from previous studies. Multiple regression
analysis assessed the impact on customer loyalty of four key construct of customer
relationship marketing (Trust, Commitment, empathy and conflict handling). Results
indicate that four variables have significant effect and predict good proportion of
variance in customer loyalty.There are many different relationship marketing
dimensions implemented for retaining customers. Therefore, this study is aimed to
explore the impact of relationship marketing dimensions (trust, commitment, conflict
handling, and empathy) on customer loyalty, by focusing on the Dashen bank. A
theoretical framework was used as a guideline to test the relationships between
relationship marketing dimensions and customer loyalty.A quantitative method which is
cross-sectional study with deductive approach is chosen in this research. In order to
collect primary data, a self-completed questionnaire is designed and was randomly
given to the customers of Dashen bank. In addition to questionnaire, semi structured
interview questions are prepared to get information from the organization which is
analysed qualitatively.It is reasonable to conclude, on this evidence, that customer
loyalty can be created, reinforced and retained by marketing plans aimed at building
trust, demonstrating commitment to service ,have empathy on customers feelings and
proactive fashion, and handling conflict efficiently. Furthermore, they are significantly
related to one another. The relationship investigated in this study deserves further
research. Because the data analyzed were collected from one sector of the service
industry in one country, more studies are required before general conclusions can be
drawn
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Keywords
Relationship Marketing, Trust, Commitment