Paper type: Essay Pages: 4 (908 words)
1.3 Objectives of the StudyThe Overall objective of the study is to investigate the impact of CRM practice on customer retention in branches of Commercial Bank of Ethiopia (CBE) and Cooperative Bank of Oromia (s.
c.) in selected districts of South West Shoa Zone. The other specific objectives of the study are:1. To investigate and compare the role of Behavior of the Employee (BE), Trust (T), CRM technology (CRMT) and Quality of Service (QS)) in the successful implementation of customer relationship management in Commercial Bank of Ethiopia (CBE) and Cooperative Bank of Oromia (s.c.) 2. To analyze and identify the importance of customer relationship management in customer retention in Commercial Bank of Ethiopia (CBE) and Cooperative Bank of Oromia (s.c.)3. To examine the problems encountered by banks in introducing customer relationship management.4. To assess the present level effect of customer relationship management in banks customer retention. 5. To give possible recommendations based on the findings of the study. 1.4 Significance of the Study Many authors describe the final goal of CRM as customer retention which is the key to survive in competitive markets for any firm.
Customer satisfaction and surviving in today’s competitive environments require a heart to understand the customers; a brain to analyze; and hands to deliver the products to them (Ghahfarokhi & Zakaria, 2009).These researches will also explain that customers are the source of revenue because they are the ones who pay the bills and generate profit. The role of customers is so vital for organizations and that is why customer relationship management (CRM) is born based on the recognition of the value customers have. Previous researches have shown that there is a strong dependency between customer satisfaction and customer retention (Winer, 2001). Considering customer retention, any firm needs to improve the relationships with its customers in a way that results in more customer satisfaction and therefore increased profits (Dwyer et al., 1987; Beckeret al.,2009). The Significance of this study will be: It provides the deeply knowledge, understanding and direction by exploring the link between customer relationship management and customer retention by mediating the customer satisfaction in CBE & CBO. To make good relationship with customers managers take help from this study because if managers apply CRM in banks they will be able to receive more earnings and develop long base customer relations. This study will help to increase awareness of customer relationship management practices in private and public banks of CBE & CBO. It will provide will provide the way for future researchers to enhance their research on this study. 1.5. Scope and Limitations of the StudyThe Scope of the research is limited to Commercial Bank of Ethiopia and Cooperative Bank of Oromia (CBO) in oromia region, South West shoa Zone.The Research is carried out in 4 district growing towns of South West shoa zone only. The four common customer retention elements that will be considered in the study are Convenience of Physical environment (PE), Behavior of the Bank Employees (BE), Trust (T), CRM technology (CRMT) and Quality of Service (QS).The research will also explore certain customer related aspects such as attitude of employees, ATM facility, and Internet banking.The potential weaknesses /limitation of the study will be:- Lack of time to carry out a thorough research and to gather more in depth information from 11 woreda districts ( Restriction of time) the researcher has no knowledge of who actually filled the questionnaire in on line (Validity limit) Without the presence of the researcher the respondents may pay little attentions and considerations to the questions( Reliability restriction) With a random sample of 150 respondents the results are assumed to represent the target banks in the whole of Ethiopia ( Restriction of Generalizablity) The sample taken for the study is restricted to a particular area. Bias of the respondents may effects the results of the study.1.6 Basic Research Questions and/or Hypothesis To what extent the implementation of CRM influence customer Retention in CBE and Cooperative Bank of Oromia? Does the four variables of CRM (Behavior of the Employee (BE), Trust (T), CRM technology (CRMT) and Quality of Service (QS CRM impact the successful Implementation of CRM? Is there a significant difference between CBE and Cooperative Bank of Oromia in terms of practice of CRM and customer retention? HypothesisThe Proposed Research hypotheses for this Study are:Hypothesis I Null Hypothesis: : CRM is highly affected customer retention in branches of Commercial Bank Of Ethiopia (CBE) Alternate Hypothesis: CRM is highly affected customer retention in branches of Cooperative Bank of Oromia (CBO)Hypothesis IINull Hypothesis: There is no significant difference in the Customer Relationship Management practices in Commercial Bank of Ethiopia and Cooperative Bank of Oromia. Alternative Hypothesis: There is significant difference in the Customer Relationship Management practices in Commercial Bank of Ethiopia and Cooperative Bank of OromiaHypothesis IIINull Hypothesis: The behavior of Ethiopian Commercial Banks employees (CBE) is quite attractive and supportive for customer relationship management. Alternative Hypothesis: The behavior of Oromia Cooperative Banks (CBO) employees is quite attractive and supportive for customer relationship management.Hypothesis IVNull Hypothesis: The CBE render quality services in line with the requirements and expectations of each individual customer. Alternative Hypothesis: The CBO render quality services in line with the requirements and expectations of each individual customerHypothesis VNull Hypothesis: The CBE is implemented and used efficiently Customer relationship Management information technology to increase Customer Satisfaction and retention.Alternative Hypothesis: The CBO is implemented and used efficiently Customer relationship Management information technology to increase Customer Satisfaction and retention.
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Objectives of the StudyThe Overall objective of the study is to. (2019, Aug 20). Retrieved from https://studymoose.com/objectives-of-the-studythe-overall-objective-of-the-study-is-to-essay