| Abstract: | The survival of any organization depends on its customers. Customers are the source of profits to be earned by a profit making organization. Due to the more and fiercer competition in today’s business, many companies are required to build long-term profitable relationship with customers and to achieve customer loyalty. Therefore, the aim of this study was to determine the effect of relationship marketing dimensions (trust, commitment, conflict handling, and communication) on customer loyalty, by focusing on Gihon four-star hotel Addis Ababa. Quantitative approach along with explanatory research design was applied. The study was conducted on customers of Gihon hotel in Addis Ababa. A sample of 384 respondents was taken through convenience non- probability sampling method, of which a total of 305 valid responses were obtained and used for the analysis. Structured self-administered questionnaire was used to collect the primary data and using SPSS 20.0, both descriptive and inferential statistics were conducted for correlation and multiple linear regression analysis to attain the intended objectives. The results of correlation analysis indicate that there is a positive and significant relationship between all relationship marketing dimensions (trust, commitment, conflict handling, and communication) and customer loyalty. The regression result indicates that Trust, communication, commitment and conflict handling had significant effect on customer loyalty with trust having the highest significance followed by communication, commitment and at last conflict handling. Finally, based on the finding of the study, recommendations were made. |
