Abstract:
ABSTRACT
Every business organizations without loyal customers and strategic customer relationship
marketing are bound to be unsuccessful. Customer loyalty is the behavior of customers
trying to keep their promises on the product, buy with a higher frequency. Customer
relationship marketing is a way of life of doing business, a strategic direction that focuses
on keeping and improving current customers rather than acquiring new customers. The
main purpose of this study is to determine the effect of Customer relationship marketing
dimensions on customer loyalty in case of private and government owned banks in Gondar
city. Customer relationship marketing has many dimensions but this paper used only six
dimensions. Qualitative and quantitative research methods with deductive and explanatory
approaches were used in this study. For conducting this study non-probability sampling
technique, specifically Purposive-and convenience sampling techniques were used.
Interview and structured questionnaire with five point Likert scale was used to collect the
data from the customers and managers and assistant manager of the banks that included in
this study. A total of 422 questionnaires were distributed to customers of both public and
private owned banks found in Gondar city, based on convenience sampling methods and
418(99.05%) were returned for analysis. SPSS version 20.00 software was employed to
analyze the collected data through the statistical tools used in this study, namely
descriptive analysis, correlation, multiple regression analysis and independent sample ttest.
Result of the study showed that 57.9% of customer loyalty was explained by
relationship marketing dimensions. Specifically trust, commitment, communications and
conflict handling have a positive and significant effect on customer Loyalty of commercial
banks in Ethiopia, however empathy and responsiveness have positive but insignificant
effect on customer’s loyalty. There is significance difference between private and
government owned banks. Based on the finding banks apply Customer relationship
marketing appropriately and should make the whole system on work with their customers.
