dc.description.abstract |
The banking industry in Ethiopia is highly competitive, so banks must consider various
strategic options and plans to survive and develop. One of the strategies is customer
relationship marketing. Customer relationship marketing has the aim of building
mutually satisfying long-term relationships between business organizations and their
customers in order to earn and retain their business. This study was aimed at
investigating the effects of customer relationship marketing variables of trust,
commitment, and conflict handling on customer loyalty; and it has also identified the
mediating role of customer satisfaction in the relationship between customer
relationship marketing and customer loyalty in the banking sector in Bahr Dar city. The
study employed an explanatory research design and used a quantitative approach. A
structured questionnaire with a five-point Likert scale was used to collect the data from
the customers, which was distributed to 399 questionnaires for selected commercial
bank customers, and out of these, 327 were used for this analysis. Structural equation
modeling was used to examine the measurement model and structural model.
Descriptive statistics were analyzed using SPSS, and path analyses were computed
using AMOS. The bootstrapping method was used in AMOS to analyze the mediating
effect of customer satisfaction. The results of path analysis show that trust and conflict
handling have a direct and significant effect on customer loyalty, but commitment has
an insignificant direct effect on customer loyalty. And also trust, commitment, and
conflict handling have a positive and significant effect on customer loyalty through
customer satisfaction. Furthermore, customer satisfaction has mediates the relationship
between relationship marketing and customer loyalty. This study recommended that
bank service providers invest more in customer relationship marketing strategies to
attract and maintain their customers and build relationships with them. |
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