ABSTRACT

 Due to the rapid expansion in banks and the severe competition for customers’ retention, banks have started using various marketing strategies to achieve their objectives. Customer Relationship Marketing is one of the marketing strategies that may be used in this respect. The study aims to investigate the impact of Customer Relationship Marketing on Customer Retention of first bank customer in Michael Okpara University of agriculture. Questionnaire was designed and sent to 150 customers of First Bank Michael Okpara University of Agriculture, Umudike, creating two sample pools of respondents. A total of 120 of the collected questionnaires were valid. The study findings show medium to high degrees of positive attributes of the two samples toward Customer Relationship Marketing dimensions (trust, commitment, communication, empathy, social bonding and fulfilling promises) on customer satisfaction. The findings also indicate different attitudes regarding the importance of Customer Relationship Marketing dimension between the two samples. The findings also indicate different results regarding the impact of Customer Relationship Marketing on customer’s retention due to gender, age and educational level. Ultimately, the study suggested that first bank Umudike , whether in the study’s two selected school, or in other school where it has branches and operates from, should apply Customer Relationship Marketing in order to maintain its market share in the market.    

TABLE OF CONTENTS

Cover i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of contents vi

Abstract x

CHAPTER ONE

INTRODUCTION  

1.0 Background of the study 1

1.2 Statement of the Problem 3

1.3 Research Objective 4

1.4 Research Questions 4

1.5 Research Hypotheses: 5

1.6 Significance of the Study 5

1.7 Scope of the study 5 

CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual framework 6 

2.2 Historical Background 11

2.3 Customer Relationship Marketing 13 

2.3.1 Objectives of Relationship Marketing 15

2.3.2 Benefits of Relationship Marketing 17

2.3.3 Relationship Marketing Strategies 18

2.3.4 Internal Relationship Marketing 19

2.4 Reciprocity 20

2.5 Relationship Duration 22

2.6 Advantages of Relationship Marketing in Banking 22

2.7 Customer Satisfaction 24 

2.8 The Importance of Customer retention 26

2.9 The Difference between this Study and other Studies 26

2.10 Theoretical Review 27

2.11 Empirical Review 28

CHAPTER THREE

METHODOLOGY

3.1 Research Design 31

3.2 Area of study 31

3.3 Population of the study 31

3.4 Sampling technique and sample size 31

3.5 Sources of data 32

3.5.1 Secondary Data 32

3.5.2 Primary Data Collection 32

3.6 Method of data collection 32

3.7 Method of data analysis 33

3.8 Validity 33

3.9 Instrument Reliability 33

3.10 Model specification 33

3.11 Decision rule 34

CHAPTER FOUR

RESULTS AND DISCUSSION

4.1Socio-economic characteristics of the respondents 36

CHAPTER FIVE

Conclusion and Recommendation:

5.0 Summary 41

5.1 Conclusion 41

REFERENCES