THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER SATISFACTION IN THE CASE OF ETHIO TELECOM, ADDIS ABABA

Abstract

The main objective of this study is to investigate the effect of customer relationship management on customer satisfaction in the case of Ethio Telecom company in Addis Ababa. Quantitative research approach along with Explanatory research design were adopted to address the specific objectives of the study. Population of the study was Ethio Telecom service subscribers, of which a sample size of 385 was selected by using convenience non-probability sampling technique. Structured questionnaires were used to collect primary data from the targeted sample respondents. Of which, 305 valid and usable responses were obtained and utilized for analysis. SPSS version 20 statistical tool was also used for carrying out both descriptive and inferential statistics analyses. Multiple linear regression model was implemented to investigate the relationship between customer relationship management and customer satisfaction. Results of the findings revealed that network quality, perceived value, loyalty program and relational experience dimensions of customer relationship management had strong and positive relation with customer satisfaction in the context of Ethio Telecom’s service subscribers. The model significantly explained 71.0% (p< .05) of the variance in customer satisfaction through variation in customer relationship management attributes. Network quality had relatively the highest positive and statistically significant effect on customer satisfaction followed by loyalty program offered by the company. Perceived value and relational experience showed the least influence on customer satisfaction. It can be concluded that exerting more effort on building efficient and effective customer relationship management escalates level of subscriber’s satisfaction in Addis Ababa. Managements of Ethio Telecom shall work on the improvement of network quality and implementation of more loyalty programs would improve their customer’s satisfaction more.