THE EFFECT OF RELATIONSHIP MARKETING ON CUSTOMER LOYALTY: A CASE OF BANK OF ABYSSINIA S.C

Abstract

This study was conducted with an objective of identifying the effect of relationship marketing on customer loyalty in Bank of Abyssinia S.C. It conceptualized and developed five dimensions of relationship marketing: social bonding, responsiveness, reciprocity, trustfulness and empathy. This study used both descriptive and explanatory research designs. Random sampling method was used. The Data were collected from bank services customers by using primary sources of data collocation methods through questionnaire. The data also analyzed through both descriptive and inferential methods. The descriptive analysis was conducted by using mean and standard deviation. On the other hand, inferential analysis was conducted by using Pearson correlation method and ordinary least square multiple regressions (OLS) method. The result indicated that relationship marketing has significant effect on bank customer loyalty. Variableslike Social bonding, responsiveness, reciprocity, trustfulness and empathy have significant and positive effect on customer loyalty of the bank. Based on the findings the researcher recommends that management of the bank has to improve social bonding, responsiveness, reciprocity, truthfulness and empathy. The bank also has built the relationship marketing variablesfor this reason the customer also uses the bank services regularly.The bank employee also supports the customers when they face problems in branches.