IMPACT OF CUSTOMER ORIENTATION OF SERVICE EMPLOYEES ON RELATIONSHIP QUALITY AND CUSTOMER LOYALTY (CASE STUDY OF COMMERCIAL BANK OF ETHIOPIA IN ADDIS ABABA)

Abstract

The main purpose of this research is to conduct an empirical study on selected branch customers to assess the impact of customer orientation of bank employees on relationship quality and customer’s loyalty dimensions. In order to achieve the underlying objective, an analytical model is developed based on previous researches as a guideline to test the relationships between Customer orientation of service employees (COSE), relationship quality (trust, commitment and satisfaction) and customer loyalty. For this purpose a structural equation modeling was used to identify how customers perceive customer orientation of service employees and how this effect their loyalty intention towards Commercial Bank of Ethiopia in Addis Ababa. Total number of 384 respondents served as a particular sample for this study. A self-completed questionnaire distributed to serve the purpose and the SPSS 25 for windows and STATA 15 are used to process the primary data. The findings of this study prove that COSE does have a strong positive relationship with the three relationship quality dimensions (Trust, Commitment and Satisfaction). Further, this study also supports that Behavioral and attitudinal customer loyalty can be presented as a positive and linear function of Satisfaction and trust. However, the relationship between commitment and Loyalty is not strong and significant. Based on the findings of the study recommendations are put forward.