Abstract:
Relationship marketing in banking industry entirely differ from other sectors because
banking industry purely related to financial services, which needs to create trust among the
customers without loyal customers and strategic customer relationship marketing CBE can’t
be successful or profitable .Customer loyalty is both attitudinal and behavioral tendency to
favor one brand over all others, whether due to satisfaction with the product and services ,
its convenience or performance, or simply familiarity and comfort with the brand. It is a
customer ongoing to believe that your organization’s product /services offer is their best
option. Relationship marketing has the aim to building mutually satisfying long term
relationship between business organizations and customer in order to earn and retain their
business. The main objective of the researcher to conduct this research was to assess the
effect of relationship marketing on customer loyalty in the case of Commercial Bank of
Ethiopia Gondar city selected branches. Customer relationship marketing has many
dimensions but this paper used only six dimensions. The researcher used explanatory and
cross sectional research design and Qualitative and quantitative research approach. For
conducting this study non-probability sampling technique was 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 399
questionnaires were administered to customers of six CBE grade III and IV branches found
in Gondar city and 387 questionnaires were returned for usable and comprehensive
empirical analysis was done. The data was analysis by multi linear regression and
correlation. The result revealed that all relationship marketing dimensions have a positive
and significant effect on customer loyalty. Alternatively, R square is 0.83 means that
explanatory variables have 83% impact on dependent variable. The remaining 17%
variations on outcome variable were explained by other variables out of this model which is
not incorporated in this study. Generally, relationship marketing can explain customers‘
loyalty in commercial banks of Ethiopian. Based on the finding CBE implement and expand
relationship marketing strategies appropriately and should make the whole system on work
with their customers to gain more customer loyalty.
