“Effect Of Relationship Marketing On Customers’ Loyalty In CBE In Ambo Selected Branches “

Abstract

Customer loyalty enhances the customers to be committed to purchasing products and services from a specific service provider and will resist the actions of competitors attempting to usurp their patronage. However, the condition is not uniform in all places and all time particularly in all sectors like CBE (commercial bank of Ethiopia). Thus, the purpose of this study was to assess theeffect of relationship marketing on customers’ loyalty in CBE in Ambo selected branches. Both descriptive and explanatory research design and quantitative approach was used. A total of 365 questionnaires distributed and only 337 were filled and returned by the respondents and this made a return rate of 92.33%. the results of correlation of relationship marketing and customer’s loyalty and adjusted R Square is (.238) and it is pointed out that 23.8 percent of relationship marketing can explain the dependent variable that is customer’s loyalty. But, the remaining 76.2% of dependant variables can be explained by variables which are not included in this study. In the regression analysis, the beta value under standardized coefficients exhibited that that the beta value between customer Conflict Handling and customer's loyalty in commercial Bank of Ethiopia was .327 and the p =.000. Therefore, it is possible to conclude that 32.7% of customer’s loyalty is affected by Communication at p<0.01. In addition, the beta value under standardized coefficients exhibited that that the beta value between customer communication and customer's loyalty in commercial Bank of Ethiopia was .159 and the p =.018. Therefore, it is possible to conclude that 15.9% of customer’s loyalty is affected by Communication at p<0.05. From the ANOVA statics, the processed data which is the population parameters, had a significance level of 100% which shows that the data is ideal for making a conclusion on the population’s parameter as the value of significance (p-value ) is less than 1%. The calculated value was greater than the critical value (21.682) an indication that, commitment, communication and conflict handling is significantly influence the customer loyalty of CBE sites in Ambo town. In general, the banks customers’ loyalty great determination by the Communication, conflict handling and trust, implies that the customers’ were need to focus on these factors to be strengthened.