THE EFFECT OF INTERNAL MARKETING ON EMPLOYEES’ CUSTOMER ORIENTATION IN CASE OF DASHEN BANK

Abstract

Internal marketing is considered employees as internal customers and jobs as internal products. It has a significant impact on the mediating variable, employees’ customer orientation. This study aimed at investigate the effect of internal marketing on customer orientation of employees in case of Dashen Bank front line service employees' who are currently working in Addis Ababa city administration. To achieve the objectives of the study, descriptive research design with quantitative approach were used. Data was collected through questionnaire from a sample of 261 front line service employees' were selected using simple random sampling method. The data collected from the questionnaire were analyzed using descriptive statistics (such as mean, standard deviation, percentage and frequency) and inferential statistics like correlation, and multiple regression analysis. The finding revealed that there are positive and significant relationships between training, communication, motivation, job satisfaction and organization commitment relationship with employees’ customers orientation. The score of the coefficient correlation determination R2 is 0.932, which implies that internal marketing explain a significant amount (93.2%) of the variance in employee customer orientation. It was found that communication, motivation, job satisfaction and organization commitment significantly predicted the customer orientation among employees. However, training was not significant predictor of customer orientation among employees. Therefore, this study recommends the company to improve the internal marketing strategy to achieve internal customer's satisfaction and improve customer orientation on employees’.