The Relationship Between Relationship Marketing And Customer Satisfaction: The Case Of Banking Industry In Hawassa City, Ethiopia

Abstract

This study examines the relationship between key components of relationship marketing and customer satisfaction in the banking industry. Adopting a correlational research design with a quantitative approach, the study collected data from 384 respondents using convenience sampling to ensure a diverse yet accessible participant pool. The data were analyzed using Pearson correlation using SPSS version 26, revealing that all five relationship marketing components had a positive and significant correlation with customer satisfaction. Among these, communication showed the strongest association, highlighting its critical role in shaping customer perceptions, followed closely by empathy and conflict handling, which underscore the importance of emotional engagement and effective problem resolution. Trust and commitment, while still influential, had relatively weaker but still meaningful impacts. These findings contribute to the theoretical understanding of relationship marketing by demonstrating the varying degrees of influence each component has on customer satisfaction. From a practical standpoint, the study suggests that service providers should prioritize clear and responsive communication, train employees in empathy and conflict resolution, and reinforce trust and commitment through consistent service quality. Future research could expand on these insights by conducting longitudinal studies to assess long-term effects, comparing different service industries, or incorporating qualitative methods to explore customer experiences in greater depth. Ultimately, this research provides valuable guidance for businesses aiming to enhance customer satisfaction and foster long-term loyalty through strategic relationship marketing efforts.