Effect Of Customer Orientation Of Service Employees On Customer Satisfaction And Loyalty: The Case Of Commercial Bank Of Ethiopia
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Date
2017-05-05
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Addis Ababa University
Abstract
The main objective of this study is to examine the impact of customer orientation of service employees (measured in four dimensions) on customer satisfaction and loyalty in the case of Commercial Bank of Ethiopia (CBE). In addition to this, the study intended to see the mediating role of customer satisfaction between COSE and customer loyalty. The data used in this study was collected through a self-completed questionnaire, distributed to systematically selected 384 customers of the eight randomly selected CBE branches in Addis Ababa district. Data was analyzed using both descriptive statistics (frequencies and percentages), and inferential statistics (multiple regression analysis). Mean score was used to understand the level of customer orientation of CBE’s employees and correlation analysis was used to examine the relationship between the study variables. Then, Sobel test was computed to see the mediating role of customer satisfaction between COSE and customer loyalty. The findings of this research revealed that the employees of the bank exhibit good customer orientation and that there is a positive and significant relationship between customer satisfaction and all the dimensions of COSE. In CBE, the employees’ technical skill, motivation, and self-perceived decision making authority does have a significant positive relationship with customer loyalty except for the social skill of the employees which was found to be insignificant in explaining customer loyalty. Further, this study indicates that customer satisfaction mediates the relationship between COSE and customer loyalty. Eventually, the study recommends managers of the bank to focus more on the motivation of employees as a means of overcoming the intense competition that exists in the industry since it contributes the most to both customer satisfaction and loyalty.
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Customer orientation of service employees, Customer satisfaction, Customer loyalty