Jurnal Genesis Indonesia
Vol. 5 No. 01 (2026): Article in Press - Jurnal Genesis Indonesia

The Effect of Relationship Marketing on Customer Loyalty: The Case of Cooperative Bank of Oromia in Nekemte Town

Chali, Gudata Abara (Unknown)



Article Info

Publish Date
20 Mar 2026

Abstract

This study investigates the impact of relationship marketing—specifically Customer Relationship Management (CRM) practices—on customer loyalty at the Cooperative Bank of Oromia (CBO) in Nekemte town. Despite the rapid growth of the Ethiopian banking sector, competition for customer retention remains intense. Utilizing a descriptive and explanatory research design, the study collected primary data from 180 respondents using structured Likert-scale questionnaires. Data analysis was performed employing descriptive statistics, Pearson correlation, and multiple regression analysis. The findings reveal significant positive correlations between all six studied dimensions—Key Customer Focus, Interaction Management, CRM Organization, Knowledge Management, Technology-based CRM, and IT Integration—with customer loyalty. Regression results (R2=0.755) indicate that CRM practices explain 75.5% of the variance in customer loyalty. Notably, Technology (β=0.337) and ICT Integration (β=0.320) emerged as the most potent predictors. The study concludes that while CBO performs moderately in relationship marketing, a technology-driven, customer-centric approach is essential for long-term loyalty. Recommendations include upgrading digital banking infrastructures and enhancing personalized communication frameworks.

Copyrights © 2026






Journal Info

Abbrev

JGI

Publisher

Subject

Humanities Computer Science & IT Education Engineering Social Sciences

Description

Jurnal Genesis Indonesia is a journal managed by The Indonesian Institute of Science and Technology Research. True to its name: Genesis, which means "beginning of formation", this journal is aimed at students, as well as young researchers and young professionals. This journal covers various scopes, ...