Effect of Relationship Marketing on Customer Loyalty: In Case of Wegagen Bank, South District Addis Ababa
No Thumbnail Available
Date
2024-02-01
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AAU
Abstract
Any business that lacks an effective marketing staff and tactics will eventually collapse. Bankers
need to attract and hold onto profitable clients to stay profitable and have a competitive edge in
the market. Without a doubt, relationship marketing is used for this. This study's goal is to find
out how relationship marketing affects client loyalty. In the instance of South District Addis
Ababa's Wegagen Bank. The first and most significant deficiency stems from the researcher's
knowledge base; so far, Wegagen Bank relationship marketing has not been the subject of any
research. The dearth of research on the district level was another motivation for this study's
conduct. The lack of depth in the literature on relationship marketing, in addition to the
aforementioned deficiencies, inspired the investigator to conduct this study. Adding new
variables is the other driving force. The researcher is therefore driven to carry out this
investigation as a result of these driving forces. An explanatory research design was adopted in
this study. Convenience sampling was employed by the researcher to select survey takers from
the study's total population of 401. Primary data sources were employed in this investigation. A
closed-ended questionnaire with a five-point Likert scale that was taken from earlier research
was used to gather the primary data. Because this study takes a quantitative approach, the data
was analyzed using regression and correlation models with the use of the SPSS version 26
software. The study indicated that while communication was shown to be minor, trust,
commitment, empathy, and conflict resolution were found to have a substantial impact on
consumer loyalty. This research suggested that to ensure trust, commitment, empathy, and
dispute resolution and the bank should reevaluate its relationship marketing. To maintain and
sustain sound relationship marketing, the study also suggests specific actions that should be
taken by the banks, government, stakeholders, professionals, and academicians. Since
relationship marketing has not been thoroughly investigated from various economic sectors, this
investigation recommended additional studies to be done in this area.