International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)
  Year: 2021 | Volume: 5 | Issue: 6 | Page No.: 30-43
The Effect Of Relationship Marketing On Customer Loyalty In The Banking Industry The Case Of Commercial Bank Of Ethiopia Gondar Branches)
Wondim Atnafu Ashenef

Abstract:
Customer loyalty in banking sector has seen a major concern to practitioners due to severe competition and higher customer expectations. Further to that, one way to enhance customer loyalty in banking sector is by focusing on creating long term relationship with customers in the developed countries there is a big problem of relationship marketing in insurance companies which results in customers not to be loyal for the company. This problem of not paying serious attention to relationship marketing and loyalty also occurs in developing countries including in Ethiopia .Banks need to have a good understanding of their customer behavior so that appropriate marketing strategies directed towards relationship building and customer retention can be developed. The objective of this study is, therefore, to examine the cause and effect relationships of antecedents of effective customer relationship management practices and extent of customer loyalty in the context of branches of the commercial bank of Ethiopia in Gondar city. In doing so, 398 samples were selected and incorporated in the study and both qualitative and quantitative research methods ,including a cross sectional survey approach has been used in gathering and analyzing the data and to identify the effect of relationship marketing on customer loyalty. By using multiple linear regression model independent variables were tested effectively based on beta value. The result of the study shows that the four relationship marketing dimensions namely trust(0.254), commitment (0.415), conflict handling(0.238),and empathy(.103) are significantly affecting customer loyalty in branch bank of commercial bank of Ethiopia operating in Gondar city.