ASSESSMENT OF RELATIONSHIP MARKETING PRACTICE:- A CASE STUDY OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Relationship marketing is a new phenomenon in the field of marketing, and it focuses on creating a long-term relationship with customers through realizing mutual benefits of both parties. The purpose of this study is to assess relationship-marketing practice of Commercial Bank of Ethiopia in terms of relationship marketing dimensions and the levels of relationship marketing strategies. In order to obtain adequate and detailed information from customers as well as branch marketing managers of the bank both quantitative and qualitative data collection tools were used. Non-probability sampling method was employed to select respondents; specifically convenience sampling technique was used. Accordingly, the study has selected 322 respondents from seventeen branches of the bank that operates in Addis Ababa and 322 questionnaires were distributed to customers, 269 questionnaires were found usable. Descriptive statistics particularly mean, standard deviation and frequency were used to analyze data and to aid computation statistical package for social science (SPSS) software version 20.0 was used. The findings of the study showed that, average mean score of each dimension was categorized under well practiced of relationship marketing by the bank. Therefore, the bank practiced relationship marketing well when it is evaluated from the four dimensions namely informational, management, instrumental and organizational dimensions. According to the interview conducted with branch marketing managers of the bank, it practiced and considered in its marketing strategies the three levels of relationship marketing strategies namely financial, social and customization bonds, whereas, structural band is not implemented by the bank so far.