Effects of Customer Relationship Marketing Practice on Organizational Competitiveness The Case of Commercial Bank of Ethiopia, Jimma District

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Tekeste Deboch
Mekonnen Bogale

Abstract

Recent literature on marketing theory and practice acknowledge that increasing emphasis on
designing customer–centric strategies and processes by organizations in order to realize lifetime
value of customers’. Commercial Bank of Ethiopia is a state owned bank and it has been
practicing customer relationship marketing strategy accompanied with other business growth
strategies since 2009. This study was intended to evaluate the extent to which customer
relationship marketing is practiced in the bank and to explain the effects of this strategy on the
bank competitiveness. In order to achieve this objective, 145 sample respondents were selected
using stratified random sampling. Primary data were collected using Self-administered
questionnaire. Multiple linear regressions model was used to explain the effects of explanatory
variables (trust, commitment, communication, conflict handling and competence) on outcome
variable (Organizational competitiveness). The finding shows that there is a significant positive
relationship between customer relationship marketing underpinnings and bank’s
competitiveness. However, each explanatory variable has no equal significant effect on a
dependent variable. The study concluded that the higher the bank practicing customer
relationship marketing the higher its positive effect on their competitiveness level. Therefore, the
study recommended that the bank should work more on customer relationship underpinnings to
enhance its competitive position even by far better than its current performance.

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Author Biographies

Tekeste Deboch, Jimma University, Jimma, Ethiopia

Department of Management, Jimma University, Jimma, Ethiopia

Mekonnen Bogale, Jimma University, Jimma, Ethiopia

Department of Management, Jimma University, Jimma, Ethiopia
The corresponding author can be reached using nuwami90@gmail.com