Determinants Of Customer Loyalty In Commercial Bank Of Ethiopia:Case Of Adama District

Abstract

The aim of this research is to analyze determinants of customer loyalty in commercial bank of Ethiopia, Adama district case. In this research the explanatory research design used by considering both primary source of data to address the given set of the research's objective. Even though commercial bank of Ethiopia is constituted under fifteen district offices this research address purposively Adama districts under which fifteen branches are addressed through convenience sampling and the sample respondents under these selected branches were selected through systematic sampling method. The primary data is obtained by the structured questioners filled by 221 systematically selected customers and an interview made with branch managers. The researcher has used the descriptive statistics analysis method in order to analyze the difference between two extreme values, to divide in hundred for analyzing data composition and contribution of respondents on the given parameters. For analysis internal reliability the cronbach’s alpha is used and the result shows 0.778 or 77.8%. To examine the relationship between the dependent variable (customer loyalty) and the independent variables (trust, commitment, and service quality and customer relation. Based on the regression analysis undertaken by the researcher commitment, service quality and customer relationship has a positive significant determination power over the dependent variable with beta values of 0.233.0.325 and 0.337 respectively. Even though the significance of trust in determining the dependent variable, customer loyalty, is negligible a unit change of it is analyzed to bring 6.4% of change of the dependent one. Key words: customer loyalty, trust, commitment, service quality, customer relationship, customer satisfaction, customer retention.