dc.description.abstract |
Due to fierce competition in today’s business environment, many companies are required to
build long- term profitable relationship with customers and to achieve better market
performance. Therefore, CRM has become more and more important since the last decade of
20
th
century, especially in the service industry. As a result, this study is aimed to empirically
investigate the influence of CRM (key customer focus, customer knowledge management,
CRM organization and technology based CRM) on market performance in banking industry
with reference to Commercial Bank of Ethiopia (CBE). A theoretical framework was used as
a guideline to test the influence of CRM on market performance. A quantitative research
approach was implemented. Besides, a descriptive research design was used and a cross -
sectional survey was chosen for this study. A questionnaire derived from previous studies
and the relevant literature is completed by 116 employees of the selected commercial banks
in debre tabor city. Correlation analysis assessed the relationship between CRM and market
performance and multiple regression analysis assessed the influence of CRM on market
performance. The findings confirm that all the independent variables (key customer focus,
knowledge management, CRM organization and technology based CRM) have a positive and
significant relationship with market performance in selected commercial banks. Moreover,
the study explore that there is a positive and significant influence of CRM on market
performance. Besides, it is found that customer knowledge management underpinning of
CRM has the highest influence on market performance in CBE and key customer focus
underpinning of CRM has the highest influence on market performance in this bank.
Therefore, the selected branch’s have to implement CRM appropriately and continuously, as
an indispensable tool for gaining competitive advantage and building long – lasting and
profitable relationships with its customers in order to achieve their market performance. |
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