Effects Of Customer Relationship Marketing On Customer Retention Of First Bank Customers In Michael Okpara University Of Agriculture, Umudike

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