THE EFFECT OF RELATIONSHIP MARKETING ON CUSTOMER LOYALTY (THE CASE OF COMMERCIAL BANK OF ETHIOPIA)

Abstract

Relationship Marketing in banking industry entirely different from other sectors, because banking industry purely related to financial services, which needs to create the trust among the people. So applying RM is mandatory for the bank to have loyal customers. The purpose of this study is to provide an insight into the influence of relationship marketing on customer loyalty in Commercial Bank of Ethiopia. The researcher collects data from CBE customers survey method using by distributing questionnaires which measured their agreement and disagreement on RM activities of the bank and their level of loyalty to the bank by using five point Likert scale. For this research 384 questionnaires were distributed and 291 were returned back for analysis which is 75.80% response rate. The collected data was analysed by using statistical package for social science (SPSS) version 20 software using tables and other descriptive statistics and inferential statistics (correlation and regression)as appropriate. The findings indicate the importance of Relationship Marketing dimensions such as Trust, Empathy Communication, Commitment, Service quality, and Conflict Handling,, and in CBE. The study concludes that CBE should apply Relationship Marketing in order to maintain its market share in the market