| Abstract: | Now a day, customer retention has been the choice of many companies owing the fact that, it
generates more profit by reducing the cost incurred in acquiring new customers. Moreover,
customer retention plays a vital role in increasing customer base. Therefore, effort is required from
companies to upgrading customer retention strategies. Hence this study aims at assessing the
determinant factors of customer retention in the case of capital hotel and investigates the
relationship between service quality, customer satisfaction, customer relationship, customer loyalty
and customer trust, with customer retention. A questionnaire survey was used to collect the primary
and secondary data and the population of the study comprises of the individuals who are customers
as well as booker of the hotel service in Addis Ababa. The sample of 203 respondents were taken
using non probability technique and methodologies like correlation, multiple regression and ANOVA
are used in the research. The result of correlation analysis shows relationships between customer
satisfaction, customer trust, and customer loyalty with customer retention. However the multiple
regression result indicates that customer satisfaction, customer trust and customer loyalty have a
significant positive effect on customer retention. On the other hand the study reveals the
insignificant relationship between quality service and customer relationship. |
