Impact of Customer Orientation of Service Employees on Relationship Quality and Customer Loyalty (Case Study of Commercial Banks in Addis Ababa)
No Thumbnail Available
Date
2015-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The main focus of this study is on the assessment of customer orientation of service employees on the bank–customer relationship quality and examining how this relationship quality (measured in three dimensions) affect the behavioral and attitudinal loyalty of customers in case of the Ethiopian banking sector. In order to achieve the underlying objective, an analytical model is developed based on previous researches as a guideline to test the relationships between Customer orientation of service employees (COSE), relationship quality (trust, commitment and satisfaction) and customer loyalty. Hypotheses were developed from the literature review based on the conceptual model. The data used in this study was collected through, a self-completed questionnaire distributed to conveniently selected 480 bank customers of the eight leading banks in Addis Ababa city. Two multivariate analysis methods are employed to analyze the primary data. Initially, confirmatory factor analysis was used to develop and refine the measurement model. Then, a structural equation model was used to test the hypotheses. The SPSS 20 for windows and STATA 12 are used to process the primary data. The findings of this thesis prove that COSE does have a strong positive relationship with the three relationship quality dimensions (Trust, Commitment and Satisfaction). Further, this study also supports that Behavioral and attitudinal customer loyalty can be presented as a positive and linear function of Satisfaction and commitment. However, the relationship between Trust and Loyalty is not strong and significant. Based on the findings of the study theoretical implications and implications for and managers are recommended
Description
Keywords
Commitment, Customer Loyalty, Customer orientation of service employees