BULE HORA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

ASSESSEMENT OF CUSTOMER RELATIONSHIP MANAGEMENT, IN

CASE OF ABYSSINIA BANK, BULE HORA BRANCH

A RESEARCH PROPOSAL PAPER SUBMITTED IN PARTIAL

FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF
BACHELOR OF ART IN MARKETING
MANAGEMENT

2. GEMECHU JIMA

ADVISOR: BEREKET BELAY(MBA)

FEBRUARY, 2024
BULE HORA, ETHIOPIA
Table of Contents
LIST OF TABLE ………………….……………………………………………………………………i

CHAPTER ONE..........................................................................................................................1
1. INTRODUCTION...................................................................................................................1
1.1 Back ground of the study...................................................................................................1
1.2 Statement of the problem...................................................................................................2
1.3 Research Questions............................................................................................................2
1.4 Objective of the Study......................................................................................................3
1.4.1 General objective.........................................................................................................3
1.4.2 Specific Objective.......................................................................................................3
1.5. Significance of the study...................................................................................................3
1.6 Scope of the study..............................................................................................................3
1.6.1 Geographical Scope.....................................................................................................3
1.6.2 Conceptual Scope:.......................................................................................................4
1.6.3 Mythological Scope.....................................................................................................4
1.7 Limitation of the Study......................................................................................................4
1.8 Definitions of key terms.....................................................................................................4
1.9 Organization of the study...................................................................................................5
2. LITERATURE REVIEW........................................................................................................6
2.1 Definition of customer relationship management and customer loyalty...........................6
2.1.1 Why does organization need and undertake customer relationship management.......7
2.1.3 Benefits of customer loyalty........................................................................................8
2.1.4 Customer Relationship management in banking industry...........................................9
2.1.5 Importance of customer relationship management....................................................10
2.1.6 Challenges of CRM in the bank................................................................................11
CHAPTER THREE...................................................................................................................12
3. METHODOLOGY................................................................................................................12
3.1 Description of the study area............................................................................................12
3.2 Research design................................................................................................................13
3.2 Target population and sample size...................................................................................13
3.2.1. Target population.....................................................................................................13
3.2.2. SAMPLE SIZE.........................................................................................................13

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 3.3. Sampling method/Technique.......................................................................................13
3.4 Types/source of data......................................................................................................14
3.5 Data collection................................................................................................................14
3.6 Data analysis...................................................................................................................14
4.1 Work Plan.......................................................................................................................15
4.2 Budget Plan.....................................................................................................................16
REFERENCE............................................................................................................................17

LIST OF TABLE
Table 1: Work plan of the study............................................................................................................15
Table 2: Budgeting of the study............................................................................................................16

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 CHAPTER ONE

1. INTRODUCTION
1.1 Back ground of the study
Customer relationship management is the functional head of relation marketing of much
organization. Customer relationship management (CRM) is about gathering information that
essential to serve customers in a better way.

In servicing company like bank, CRM brings a wide organizational change process and result
improved profitability of the organization by retaining and customers attracting new
customers; organizations like banks cannot meet its goal without efficient and effective
implementation of CRM.

The core theme of all CRM and relationship perspective is its focuses on a cooperative and
collective relationship between the firm and its customer and other marketing sector.
Divyerschurr and Oh (1987) has characterize such cooperative relationship as being
interdependent and long term oriented rather than being concerned with short term discrete
transaction. Customer relationship management is the overall process of building and
maintaining profitable customer’s relationship by delivering superior customer value. (Philip
Kotler and Armstrong). Previously marketing efforts had been directed majority at going new
customer. However, with increase completion and low customer switching cost, building
customer loyalty is now critical goal for organizations (Johnson et al, 2004).

The key to building customer relationship is to create to superior customer value and
satisfaction. In their view, Kotler and Armstrong (2008) satisfied customer likely to be loyal
customer and to give the company a larger share of their business. Targeting and retaining the
right customer is at core of many successful business firms.

Another important facet of CRM is “customer selective” as several researcher have shown not
all customer are equally profitable for an individual company. In fact, maintaining an effective
CRM is a big issue in banking services therefore the research conduct above by different
people and authors is not much study on impacts of CRM on customer loyalty this is the

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reason that inflate the researcher to conduct on the topic” Assessing CRM in Abyssinia Bank,
Bule hora branch”.

1.2 Statement of the problem

The ultimate objective of all customer relationship management is to make customer happy
because they are the blood supplier of any business especially in financial industries.

Customer relationship management is the core business strategy that integrates internal
process and external network to create and deliver value to target customer to a profit. CRM is
expanding more in the world’s different sectors profit in awes determined manner. If we take
market oriented services provider are not focusing on single transaction with customers. Their
main objective is setting developing and maintains relationship with customer. In some
situation it may also mean that relationship is end for instance when the services provider
cannot meet customer demands any longer dissatisfy faction of customer are mostly clear
through the complaint they make about services provision.

The bank industry is facing with many problems due to the failure of having smooth
relationship with its customer. Based on this fact we assess the CRM of the bank. Thus the
researcher is go to assessing this and other problem by raising different questions to the
customer in the study area. The formation process of CRM refers to the decisions regarding
initiation of relation activities for affirm with respect to specific group of customers or to an
individual customer with whom the company wishes to engage in cooperative or
collaborative relationship.( Cf. Darer (2011, p. 7), Saturator and Benat2018, pp. 251f).

1.3 Research Questions

Based on the above argument the study would design to answer the following research
question.

 Is the customer well satisfied with customer relationship management practice of

services provider (bank)?
 What importance would bring this system for the concerned company?
 Does the bank have service efficiency?
 Does the bank have service effectiveness?
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  Does the bank have effective communication?
 Does the bank have loyalty customers?
 Were levels of the bank customer satisfaction?

1.4 Objective of the Study

1.4.1 General objective

The general objective of the study is to assess the practice of customer relationship
management in, Abyssinia bank Bule hora branch.

1.4.2 Specific Objective

 To identify the different measure, the bank use to make customer loyal
 To find out how the bank handles its customer loyal to measure the satisfaction of
customers
 To know customer satisfaction level on Abyssinia bank
 To assess the level of customers’ loyalty on the service of Abyssinia bank
 To asses Abyssinia bank service efficiency level of from customers’ point of view
 To see Abyssinia’s bank service effectiveness from customers’ point of view
1.5. Significance of the study
The organization use this research to identify its strength and weakness, for the customers,
after this study being concluded the study is provide the solution for their problem, for the
researcher, it develop the knowledge that the researcher have towards the issue and gain
different experience of undertaking the study, for other researcher who are engaged in
searching the information related to customer relationship management can use this research
paper as a source of information after it is completed.

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1.6 Scope of the study
1.6.1 Geographical Scope
The study assessed branches of Abyssinia bank that are found only in bule hora having higher
grade (Grade I) per the Bank`s branch rating scheme. This limits the realm of the study by
discriminating those branches of Abyssinia Bank found in outlying areas and those in bule
hora but with lower grades.

1.6.2 Conceptual Scope:

The study has also assessed the level of CRM`s application in the Abyssinia bank only from
four dimensions that are derived from the reviewed CRM related literatures. Namely these
dimensions are key customer focus, Knowledge management, CRM organization and
technology- based CRM.
1.6.3 Mythological Scope:
The study used quantitative in course of researching both primary and secondary data was
used. With regard to the secondary sources various publications, books and journals‟
regarding the subject matter was addressed and population of the study Abyssinia Bank in bule
hora branches and to Achieve the objective of the study well design structured questionnaire
were distributed among the study respondents selected on purposive sampling basis

1.7 Limitation of the Study

Difficulty to generalize the exact finding for total population. While the randomness of the
selection process ensures the unbiased choice of the subject it, cloud also by chance leads to
the assembly of a sample, which does not represent the population well.

The following are some limitations

 Some of the customers and respondents were be not willing to fill the questionnaire
 Lack of experience to conduct the research
 Lack of budget
 Shortage of time is also may can be another limitation

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1.8 Definitions of key terms
Customer Relationship Management (CRM): CRM can be defined as “the development and
maintenance of mutually beneficial long-term relationships with strategically significant
customers” (Buttle).

Customer relationship management: is the overall process of building and maintaining

profitable customer relationships by delivering superior customer value and satisfaction. It
deals with all aspect of acquiring, keeping and growing customers.

Customer: A customer (also known as a client, buyer, or purchaser) is the recipient of a good,
service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other
valuable consideration. (Jim).

Customer value and satisfaction: the key to building lasting customer relationships is to
create superior customer value and satisfaction.

Customer value: the customer’s evaluation the difference between all the benefits and all the
costs of the marketing offer relative to those of competing offers.

Customer satisfaction: the extent to which a products perceived performance a buyer’s

expectation. Most studies show that higher level of satisfaction lead to greater customer
loyalty, which in turn results in better company performance.

Customer relation: Customer relation is a broad term used to describe customer service and
the general interactions between a company and its constituents. (ehow.com)

1.9 Organization of the study

The paper contains the following chapters: -chapter one deals about the introduction part and
background of the study, statement of the problem, objective of the study, significant of the
study, limitation of the study, scope of the study and organization of the paper. Chapter two
discuss with review of the related literature. Chapter three deals with methodology of the
study and chapter four discuss data analysis and interpretation. Finally, based on the finding of
the study summary, conclusion and recommendation was presented on chapter five.

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 CHAPTER TWO

2. LITERATURE REVIEW
2.1 Definition of customer relationship management and customer loyalty
Different authors define customer relationship management in different way. Some of this is
listed as follows. CRM is the precious of building and maintain profitable customer
relationship management by delivering superior customer value and satisfaction and involves
artfully managing customer touch point to maximize customer loyalty or its strategy, process
and enabling technology that allow organization on to acquire and reaction its best customer
(Philip Kotler, 12th edition).

Customer relationship is corporate wide approach to understand customer behaviour inflating

through continues relation communication and developing long-term relationship to behave
customer loyalty acquisition, retention and profitability (www. Wikipedia. Com (CRM).

CRM has an essential and vital function of customer oriented marketing responsible for
gathering and related information about customer in order to provide effective services
(Kuwanon, 2013). It is also modes for managing a company interaction with current and future
customer (kettle, 2006).

“All business is based on relationships” The firm only has to make them visible and
meaningful for it provided that the customer wants them ( Grunrocu, 2007,p.23) customer
relationship management is the overall process of building and mantling profitable customer
relations by delivering superior or value and satisfaction (Kotler and Armstrong,
2006.p.13)CRM is an attempt to modify customer behaviour over time and strange then eth
bond beseech the customer and the company with the purpose of maximizing the value of
eh relationship to customer for the customer benefit and the company s benefit. CRM could
enhance a company’s ability to a chive the ultimate goal of retaining customer and gain
strategic advantage over it competitors. CRM allows organization to distinguish between
customer that are profitable, nearly profitable, and unprofitable and have the potential to be
portable (Bull, 2003).

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The customer awareness of organization customer relationship could raise their loyalty toward
the corporation which would in turn increase company income enhance market share and
achier other corporatize objectives (Hirsch and Li.2008).

2.1.1 Why does organization need and undertake customer relationship management
The purpose of customer relationship management like any organization initiative is to
increase profit. In case of customer relation this achieved mainly be providing customer
relationship management capability would also reduce cost ways tango and complaints
effective CRM also reduce staff stress because a major cause for street reduce as services and
relationship improved (Ellen Gifford d 2002).

Achieving Good CRM

Achieving good CRM requirement organization to adopt new prospective. Ellen clarity as
follows. Consider the following Traditional custom is something house does to the customer.
Modern CRM in does with the customer. The second statesman is emphasizing the big
difference between conventional traditional services and he modern progressive CRM
approach your relationship with customer should be on going cooperative and built for long-
term organizations who have many transitory relations with customer the cost of keeping
existing customer is a tiny fraction of cost of acquiring new customer (Ellen G. 2002)

Creating customer loyalty and retention: good customer relation management creates
customer delight, in turn delighted customer remain loyal and talk favourably to others about
the company and its products.

Customer loyalty

There is still no universal agreement to definition of loyalty. However, researchers have

agreed that customer loyalty les two dimension behavioural and attitudinal dimensions
(Scotland and segued 2004).

Behavioural loyalty

Behavioural loyalty is customer overly behaviour tow and a specific product /services in
terms of repeat purchasing pattern a repeat purchasing paten. It can be determined as actual
purchase frequency his portion of occasion in which specific brand is perhaps as compared to

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the total number of purchase behaviour of a business can successfully achieved repurchase
behaviour then it is one way to generating customer loyalty (Get al 2008)

Attitudinal loyalty

Researcher widely agrees that the more measurement of repast purchase does not capture the
whole meaning of loyalty. Some schools rogue that behavioural loyalty (Repeat purchase
alone is too simplistic and ode not capture the multidimensional of loyalty (Kumar and shah
2004). attitudinal loyalty represents a high order or long term commitment of cist per, to the
organization that cannot be inferred by merely observing

Customer repeat purchase behaviour. This as often result as an outcome of a long fruitful
relationship between the organization and the customer over the time (Kumar and shah 2004)

Van looyet et al (2003.p.59) putting into consideration both behavioural and attitudinal aspect
of loyalty defined customer loyalty as customer behaviour characterized by apposition buying
pattern during an extended period (measured by means of repeat purchases frequency of
purchase) and derive by positive attitude towards the company and its product or services.
The consideration of attitude in addition to behaviour representation makes loyalty nor just
richer conceptually loyalty is a process to just repression make locality not just richer
concretely (loyalty is a process both just an act) a but also more useful for particular process
(pick and base 1994)

The need for integrated marketing communication:

The shift toward a richer mix of media and communication approaches poses a problem for
marketers. Consumers today are bombarded by commercial messages from abroad rang of
sources.in the consumers mind message from different media and promotional approaches all
become part of a single message about the company .conflicting messages from these
different sources can result in confused company images, brand positions, and customer
relationships, there for to cope with these problem and to create good and strong CRM
integrated and organized marketing communication is vital. FASIKA, Z. (2018).

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2.1.3 Benefits of customer loyalty
Customer loyalty generates numerator benefits. According to Rowley (2005) as table
customer base is a core business asset that enables improve organizational profitability
cadherin and Holbrook 200) suggest that a high customer loyalty impels a higher market
share and an ability to demand relatively a higher price compared otiose conations loyal
caster are chapter to serve less price sensitive fortes positive word of mouth promotion.

2.1.4 Customer Relationship management in banking industry

Today many businesses such as bank insurance companies and other service provider realizes
the importance of CRM and its potential to help hem acquire new customer retain the existing
ones and their life time value. on net etal (2007) organs that CRM is a business strategy of
identifying the banks most profitable customer and prospects and devotes time and attention
to expanding accent relationship with those customer through individualized orating and
customized cervical all delivered through the various sales channels that the bank uses.
GEBRE, B. (2014).

The banking industry is facing an increasing level of completion around the world as the
dynamics of the business change bank have understand the need to capitalize on new
technology to gain advantage in the competition by exploiting their customer base, brand
value and costly infrastructure investment in order to increase profit as there is direct link
between the customer satisfaction and profitability. However, the banks face challenge in
implementing customer relationship management in Ethiopian case includes
 lack of skilled people
 quality of customer data
 using customer data more intelligently
 using right technology (onset al 2007)
Today’s banking institution are undergoing tremendous revolutionist scoop to wok due
mainly to compaction and product diversification among the ascots in the industry (odure
Songhai et al 2009) financial institution are restructuring to fund only those are competencies
that are key to their profitability and loge tern survival. Managing relationship with their
customer especially with employee’s channel partners and strategic alliance partners is
critical to eh furnish long- term success (Beckett cameraman, camera and Barker 1998). CRM

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based on social exchange and equity significantly artists the firm in developing collaborative,
cooperative, and long term relationship (Beckatettcomaratet al 1998).

CRM from Bank industry prospective is a sound strategy to identify the banks most profitable
customer and prospects, and due toes time and attention to expanding account relationship
with those customers through individualized marketing retracing discretionary decision
making and customized service all delved through the various sale channels that the bank
uses (smith and Ibrahim ,1997). The ability to disunity profitable customer and the customize
marketing one basis of customer value has enabled many banks to punch above their weight
in two days competitive environment (Bewket Camarataetal 1998).

2.1.5 Importance of customer relationship management

Customer relationship management enables the bank industry or any organization to provide
excellence real-time customer services through the effective use of individual account
information. Based on what they know about each value customer, companies can customize
market offerings, services, programs messages and media (Kotte, 2003).

Gifford (2002) states that there are significant business benefit derivable forms an integrated
customer relationship managing approach. This include reduce cost because the Reith things
are being done increases customer satisfaction because have getting exactly what they want
(i.e. exceeding expectation). Growth in number of customer maximization of opportunities
(i.e. increase service referral). Long term profitability and sustainability. High ting poor
operational process offering a big advantage of competition to enterprises reduction improved
cost. Improvement of customer loyalty increase to race of scat loyalty.

High quality services since the provider becomes knowledge be about castor regiment. Social
and status benefit from continuity relationship with supplier since repeat contract a may
develop relationship resembling person) friendship which can feed estates avoiding switching
cost because maintain relationship with suppliers avoids the cost associated with switching to
a new provider.

CRM (customer relationship management) is use to help business understand their customer
wants and needs and services them more efficiently and effectively. It would help the
business to improve customer satisfaction increase staff productivity decrease operational

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cost and maximize the effectiveness of each customer in custom relationship management
process that help identify and target their best customer generate quality sales and plan and
implement helps to individualize relationship with customer and provide the highest rowel of
customer services to the most profitable customer.

Customer relationship management process provides employees with the information they
need to know about their customer want and need and build relationship between the
company and its customer. CRM is also important because major drive company
profitability is the total value of company customer base (Kotler a dKeller, 2003) and
marketing management 12 edition.

2.1.6 Challenges of CRM in the bank

As (Antony Lawrence, 2010) stated that customer relationship management is not easy to
understand but when it come up implementation it becomes very difficult for the bank.
Generally, it is observed that the bank does not fail to select right tools but they fail to
implement it in proper way. Banks are finding it difficult track and pitch profitable customers
across the various contact channels such as ATM, Email, voice recognition and wireless.
Bank should train customer to serve themselves and connect customer focus marketing
campaign across the various service and product.

To meet the customer need to beat the completion they must deliver superior quality service.
The CRM approach adopts by the bank focus on maximizing the value of customer and the
bank. There are key drivers to customer loyalty such as positive staff attitude, honesty,
integrity, productivity advice and delivery promised service and so on. (Antony Lawrence
2010, 2nd edition, p.146-147).

Service quality is important for an organizational survival growth. it is a form of attitude

representing along run over all evaluation which is different from customer satisfaction in
short term transaction judgment. The level of customer satisfaction is a result or the
customer comparison of the service quality in a given service encounter with perceived
services quality. These implies that satisfaction assessment require customer experience than
quality does (Breton etal 2000).

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 CHAPTER THREE

3. METHODOLOGY

3.1 Description of the study area

The study will undertake on the title “The assessing of customer relationship management the
case of Abyssinia bank, Bule hora branch.
This study will be conducted in south Eastern parts of Ethiopia, West Guji Zone, Bule Hora
town. Topographically This District lies between latitudes 50 26_ and 50 52_ North and
longitudes 370 56_ and 380 31_ East with a total area of about 488,861.3 hectares or 48,886.1
km2 of which 77.1% is middle land and 22.9% is lowland and the altitudinal range lies
between 1465- 2300 m a.s.l. The neighboring Districts are Kercha to the north east, Kochere
to the north, Gelana to the northwest, Burji to the west, and Dugda Dawa District to the south.
The District is composed of forty-eight kebeles (the smallest community based administrative
units in Ethiopia.

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Figure 1; Map of Bule hora Town
3.2 Research design
The study will use descriptive study. A descriptive study attempts to describe or define a
subject, often by creating a profile of a group of problems, people, or events, through the
collection of data and tabulation of the frequencies on research variables or their interaction.
Will use the descriptive research design because it provides an opportunity of collect data
from various sources such as manager, employees and customers. It also helps to describes
about the characteristics of manager, employees and customers to provide appropriate
information.
3.2 Target population and sample size

3.2.1. Target population

Target population for the study will the employer and customer of Abyssinia bank, Bule hora
branch. Will use among employees 12 and 105 customer from the total customers of
Abyssinia bank, Bule hora branch.

3.2.2. SAMPLE SIZE

Sample size is the number of observations or individuals included in a
study or experiment. It is the number of individuals, items, or data points
selected from a larger population to represent it statistically.
The study will select 105 customers from 2114 and 12 employees from CRM
department and other departments of the bank as sample size to get relevant
data. MELAK, S. (2017).

3.3. Sampling method/Technique

The study will use judgmental and convenience sampling to simplifying study and to select
customer and employees respectively because judgmental and conveniences sampling in order

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to gain the exact samples related to CRM in the bank and an enable to collect relevant
information about CRM in regarding to implementation of CRM, we would identify 12 sample
among the employee and 105 customer of Abyssinia bank, Bule hora branch.
3.4 Types/source of data
In this study will use both primary and secondary source. Primary data gather through close
ended and open end questionnaire of customer and employee’s respectively and also
secondary data gather from books, research paper and internets and manual of the bank.
3.5 Data collection
Customers that gives the necessary information primary data of question will be prepare
containing very few of respondents and employees of Abyssinia bank filled questionnaire.
More the researcher used both primary and secondary data collection methods.
3.6 Data analysis
After the data gathered by using questionnaire and interview, the data is analysed through
tabulation, paragraph and percentages.The data analysis is method going to undertake based
on the nature of the data the necessary information collected from the element of the study the
data will be analysis through percentage, paragraph and tabulation.

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4.1 Work Plan
Table 1: Work plan of the study

No Activities February March April May

1 Literature X
review

2 Data collation X

3 Data X
analysis

4 Write first X
draft proposal

5 Revising the X
draft report

6 Presenting the X
report

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 4.2 Budget Plan
Table 2: Budgeting of the study

Items Amount Unit cost Total cost

Paper 70 1 70

Pen 1 20 20

Printing 35 4 140

Total 230

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 REFERENCE

Ellen Gifford (2002), customer relationship management principles, strategy and Ideas for effective
customer relationship management. http://www. business ball.com
Esther A DEMLY (2009), Gronroos.C. (2007), service management and marketing: customer
management nonservice competition (3rded), England: Wiley Higher education.
Kotler and Gary Armstrong (2006) principle of marketing 11thedition, priemticehakll of IndiapvtLtd
New Delhi
Bogale, T. (2013). Human Resource Training Practices at the Bank of Abyssinia: With Emphasis to Addis Ababa Area
Offices (Doctoral dissertation, St. Mary's University).
Alemayehu, D., & Gobena, A. (2019). Historical survey of Bule Hora Town from its Foundation to Present. Journal of
Indigenous Knowledge and Development Studies, 1(1), 44-65.
GEBRE, B. (2014). Department of Marketing Managemnt An Assessment of Customer Relationship
Management Practice the Case of Bank of Abyssinia (Doctoral dissertation, ST, Mary's Universty).
WORKU, S. (2017). The Impact of Relationship Marketing on Customer Loyalty in Banking Industry, the
Case of Bank of Abyssinia Sc (Doctoral Dissertation, St. Mary's University).
YIMAM, S. (2017). Assessment on the Contribution of Customer Relationship Management on Customer
Loyalty the Case of Abyssinia Bank Doctoral Dissertation, St. Mary's University).
Buttle and Burton (2001), Journal of consumer behavior
Bull, C. (2007), strategic issue in customer Relation management implementation
Melak, S. (2017). Assesment of Customer Relationship Management: A Case Study on
Abyssinia Bank North Addis District (Doctoral Dissertation, St. Mary's University).
Schaefer, C. (1992). The Politics of Banking: The Bank of Abyssinia, 1905-1931. The International
Journal of African Historical Studies, 25(2), 361-389.
Philip Kotler principle of marketing, (14thedition),

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