THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT PRACTICE ON THE CUSTOMER SATISFACTION IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA OPERATING IN GURAGHE ZONE

Abstract

This study want to address the highlighted gaps established in the literature by examining the influence of customer relationship management practices on the customer satisfaction in the case of commercia Bank of Ethiopia in Guraghe zone with reference to assessing the CRM practices. The thesis was used the five key constructs of Customer Relationship Management these are organizational commitment, customer experience, process driven approach, reliability and technology orientation.The research design in this study was both descriptive and explanatory type research. The function of research design is to provide for the collection of relevant data with minimum expenditure of effort time and money taking in to account the research purpose. During sampling techniques were used stratified random sampling is also a form of probability sampling. For this purpose, the researcher distributed questionnaires to 267 respondents from which 250 of the questionnaires were filled and returned to the researcher for analysis. In this research the SPSS and Stata software is used to enhance data analysis process. The problem has shown in this thesis from the result of cronbach’s alpha is the reliability statistics which is a little bit small.To increase the number of questions the respondent may be bored. The findings of the study shows that the technology orientation has the highest influence on customer satisfaction. Hence Commercial Bank of Ethiopia in Guraghe zone should be very conscious in improving more use of latest technology to offer quality services. This will yield more customer satisfaction which may contribute to customer loyalty and retention as argued by some researchers. Additionally future research is recommended to identify other variables of customer relationship management that effect customer satisfaction and the mediating factors as this study evaluated the relationship only from five dimensions.