The Effect of Customer Relationship Marketing on Customer Loyalty. Case Study of Commercial Banks in Nekemte Town

Case Study , 2021 , 94 Pages , Grade: 90.5

Business economics - Market research

The general objective of this study, which got submitted as partial fulfillment to the requirement of the award of Master of Art, is to examine the effect of customer relationship marketing on customer loyalty of commercial banks in Ethiopia. Specifically, this study has the following objectives: To find out the level of the effect of trust on customer loyalty the case of commercial banks in Nekemte banks.

Banking industry in Ethiopia has stiff competition thus banks need to consider various strategic options and programs in order to survive and thrive. One of strategy is Customer Relationship Marketing. This study was aimed to examine the effect of customer relationship marketing dimensions (trust, commitment, conflict handling, communication, empathy competence and customer satisfaction) on customer loyalty of commercial banks in Nekemte town. The researcher was used both probability and non-probability sampling techniques to select sample respondents from the total population under this study. Data were collected through the five point’s likert scales of questionnaires and used mixed research approach was used. To achieve the objective of the study, questionnaire was physically distributed to 404 respondents of selected Commercial Banks in Nekemte town. Out of 404 customers 375 92.8% of customers were completed and collected. Descriptive and inferential statistics were used to analyze the collected data by using SPSS software version 24 and questionnaires reliability was estimated by calculating Cronbach’s Alpha. Descriptive analysis tools such as frequency, percentage, mean and standard deviation. Inferential statistical analysis tools such as correlation coefficient was worked out and used to explore the relationships between variables. And regression analysis was performed to study the effect of independent variables on dependent variable.

Inhaltsverzeichnis (Table of Contents)

• ACKNOWLEDGEMENT
• ABBREVIATIONS AND ACRONYMS
• TABLE OF CONTNTS
• LIST OF TABLE
• LIST OF FIGURE
• ABSTRACT
• CHAPTER ONE: INTRODUCTION
• 1.1. Background of Study
• 1.2. Statement of the Problem
• 1.3. Research Questions
• 1.4. Objective of the Study
• 1.4.1. General Objective
• 1.4.2 Specific Objectives
• 1.4.3. Research Hypothesis
• 1.5. Significance of the Study
• 1.6. Scope of the Study
• 1.7. Limitation of the Study
• 1.8. Operational Definition
• 1.9. Organization of the Study
• CHAPTER TWO: REVIEW OF THE RELATED LITERATURE
• 2.1. Theoretical Review
• 2.1.1 The Concepts of Relationship Marketing
• 2.1.2. Theories of Relationship Marketing
• 2.1.3. Social Exchange Theory
• 2.1.4. Resource Based View Theory
• 2.1.5. The Commitment-Trust Theory
• 2.1.6. Relational Benefit Theory
• 2.1.7. Benefits of Customer Relationship Marketing
• 2.1.8. Customer Relationship Marketing in the Banking Industry
• 2.1.9. Customer Relationship Marketing Dimensions
• 2.1.12. Customer Loyalty
• 2.1.13. Customer Satisfaction
• 2.1.14. Customer Relationship Marketing and Customer loyalty
• 2.2. Related Empirical Studies in Other Country
• 2.2.1. Related Empirical Studies in Ethiopia
• 2.3. Conceptual Framework
• CHAPTER THREE: RESEARCH DESIGN AND METHODS
• 3.1 INTRODUCTION
• 3.2. Research Design
• 3.3. Research Approach
• 3.4. Data type and Data Source
• 3.5. Target Population
• 3.6. Sampling Technique and Sample Size Determination
• 3.6.1. Sampling Techniques
• 3.6.2. Sample Size Determination
• 3.7. Data Collection instrument
• 3.7.1. The Questionnaire
• 3.8. Data Analysis Techniques
• 3.9. Reliability and Validity
• 3.10. Ethical Consideration
• 3.11. Model Specification
• CHAPTER FOUR: DATA ANALYSIS, DISCUSSION, AND INTERPRETATION
• 4.1 Response Rates
• 4.2. Descriptive Analysis of the Variables
• 4.2.1. The Respondents Demographic profile
• 4.2.2. Descriptive Analysis of Customer Relationship Marketing Dimensions
• 4.2.2. Descriptive Statistics of Trust

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis investigates the effect of customer relationship marketing on customer loyalty in commercial banks in Nekemte Town, Ethiopia. The study aims to examine the impact of various customer relationship marketing dimensions, such as trust, commitment, and satisfaction, on customer loyalty in the banking sector. The findings will provide valuable insights for bank managers on how to effectively implement customer relationship marketing strategies to enhance customer retention and foster long-term relationships.

• Customer Relationship Marketing (CRM) in the banking industry
• The impact of CRM on customer loyalty
• Factors influencing customer loyalty in the banking sector
• The role of trust, commitment, and satisfaction in fostering customer loyalty
• Strategies for enhancing customer loyalty through CRM

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter one introduces the research topic, focusing on the background, statement of the problem, research questions, objectives, significance, scope, limitations, and operational definitions of the study. It also outlines the organization of the thesis.

Chapter two presents a comprehensive review of the related literature. It explores theoretical frameworks, including social exchange theory, resource based view theory, and the commitment-trust theory, to understand the concepts of relationship marketing and its impact on customer loyalty. Additionally, it examines empirical studies conducted in other countries and Ethiopia.

Chapter three outlines the research design and methodology employed in the study. This includes details on the research design, approach, data types and sources, target population, sampling technique, sample size, data collection instruments, analysis techniques, reliability and validity, ethical considerations, and model specification.

Chapter four presents the data analysis, discussion, and interpretation of the findings. It examines response rates, descriptive analysis of variables, including the demographic profile of respondents and customer relationship marketing dimensions, and descriptive statistics of trust.

Schlüsselwörter (Keywords)

This study focuses on the relationship between customer relationship marketing and customer loyalty in the context of commercial banks in Nekemte Town, Ethiopia. Key concepts include customer relationship marketing, customer loyalty, trust, commitment, satisfaction, banking industry, and empirical research findings.

• College: Wollega University
• Course: Thesis
• Grade: 90.5
• Author: Musefa Yesin (Author)
• Publication Year: 2021
• Pages: 94
• Catalog Number: V1160755
• ISBN (PDF): 9783346563088
• ISBN (Book): 9783346563095
• Language: English
• Tags: effect, customer, relationship, marketing, loyalty, case, study, commercial, banks, nekemte, town