Effect of Relationship Marketing on Firm Sales Performance in the Case of Banking Industry in Ethiopia Effect of Relationship Marketing on Firm Sales Performance

Abstract

This paper presents a study on the effect of relationship marketing on the firm sales performance
of the banking industry in Ethiopia. For the study, an explanatory research design is used so as
to investigate the causal relationship between relationship Marketing and firms’ sales
performances. Both primary and secondary sources of data are exploited. Stratified and
convenient sampling techniques are also employed to select the respondents from the target
population of the study. Descriptive statistics and inferential methods of data analysis are
implemented using AMOS software. The executed results show that among dimensions of
relationship marketing, both commitment and trust have a high effect on the firm sales
performance of the Ethiopian banking industry. Moreover, Relationship Marketing has a positive
and significant direct effect on the Firm’s sales Performance (b=, 1.72, P < 0.001). Therefore, the
practices of Trust, commitment, empathy, and communication are in good progress, and it is
recommended that banks should give more emphasis on building relationship marketing.