METEKU BOGALE

90 Pages·2013·0.66 MB·English

ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF BUSINESS

FACTORS AFFECTING CUSTOMER RELATIONSHIP
MANAGEMENT (CRM). CASE OF SELECTED
COMMERCIAL BANKS IN ETHIOPIA

BY
METEKU BOGALE BUNGUDO
ID No. SGS1/0056/2004

DECEMBER 2013
ADDIS
ABABA, ETHIOPIA
FACTORS AFFECTING CUSTOMER RELATIONSHIP
MANAGEMENT (CRM). CASE OF SELECTED
COMMERCIAL BANKS IN ETHIOPIA

BY
METEKU BOGALE BUNGUDO
ID No. SGS1/0056/2004

A THESIS SUBMITTED TO ST. MARY’S UNIVERSITY, SCHOOL OF
GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION.

DECEMBER 2013
ADDIS ABABA, ETHIOPIA
ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF BUSINESS

FACTORS AFFECTING CUSTOMER RELATIONSHIP
MANAGEMENT (CRM). CASE OF SELECTED
COMMERCIAL BANKS IN ETHIOPIA

BY
METEKU BOGALE BUNGUDO
ID No. SGS1/0056/2004

APPROVED BY BOARD OF EXAMINERS

________________________ __________________
Dean, Graduate Studies Signature & Date

______________________________ _____________________
Advisor Signature & Date
______________________________ _____________________
External Examiner Signature & Date
______________________________ _____________________
Internal Examiner Signature & Date
TABLE OF CONTENTS
CONTENTS PAGE
Acknowledgements………………………………………………………………… iv
List of Abbreviations and Acronyms ………………………………………………… v
List of Tables ………………………………………………………………………... vi
List of Figures ………………………………………………………………………... vii
Abstract …………………………………………………..………………………… viii
CHAPTER ONE: INTRODUCTION …………………………………..………………. 1
1.1 Background of the study…………………..……………………………..………… 1
1.2 Statement of the problem ………………………….…………………….………….. 3
1.3 Research Questions …………………………………………..……………………. 4
1.4 Research Objectives ……………………………………………………………… 5
1.5 Definition of Terms ………………………………………………………………. 5
1.6 Significance of the study ………………………….……….……………………. 5
1.7 Scope/Limitations of the study ……….……………………................................. 6
1.8 Organization of the paper …………………………………………………………. 6
CHAPTER TWO: LITERATURE REVIEW …………………………………………… 7
2.1 Empirical Literature ……………………………………………………………… 7
2.1.1 The Definition and importance of CRM…………………………………… 7
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2.1.2 Types of CRM ……………………………………………..…………….. 8
2.1.3 Benefits of CRM ………………………….......................................... 9
2.1.4 Goals and Objectives of CRM………………………………………….. 10
2.1.5 Leadership ………………………….……………………….................. 10
2.1.6 CRM Strategy ………………….………………………………………… 11
2.1.7 CRM Components ………………………………………………............. 12
2.1.7.1 People ……………………………………….…………………… 12
2.1.7.2 Business Process …………………………..……..……………. 14
2.1.7.3 Technology ………………………..…………….….…………… 15
2.1.8 Performance Assessment ……………………..……….….…………… 16
2.1.9 CRM Critical Success Factors ……………..…………………………… 18
2.2 Theoretical Literature …………………………………………………………….. 20
2.2.1 CRM implementation Models ………………..………………………… 20
2.3 Frame of Reference ………………………..………………………………… 24
2.3.1 CSFs drawn from Conceptual Model for Implementation …………….. 25
2.4 Summary ………………………………………………………………………… 27
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY….................. 28
3.1 Research Design ….…………………………..…………….…………..……… 28
3.2 Population and Sample Size…………………………………………..…………. 29
3.3 Sampling technique ………………………………………………..…………. 30
3.4 Sources of Data ……………………………………………………..…..….. 31
3.5 Method of Data Collection ………………………………..……….……….. 31
3.6 Methods of Data Analysis …………………………………………..……… 32
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CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION .33
4.1 Demographic Characteristics of Respondents…………………..….………… 33
4.2 Analysis of Data Pertaining to the Study ……………………………………. 37
4.3 Descriptive Statistics Analysis ……………………………………….……. 55
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION. 57
5.1 Summary …………………………………………………………………… 57
5.2 Conclusions ……………………………………………….………………… 58
5.3 Limitations of the Study …………………………………………………….. 59
5.4 Recommendations …………………………………………….……………. 59
5.5 Future Research ……………………………………………….……………. 62

ANNEXES:
• References
• Appendix I: Open Ended Questionnaire
• Appendix II: Dichotomy Questionnaire
• Appendix III: Descriptive Statistics Table

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ACKNOWLEDGEMENTS

First of all, I feel a deep sense of gratitude to the source and supplier of all wisdom, the
Omnipotent one, Almighty GOD; I have prepared this thesis with the blessings of Him.

The completion of this study would have not been realized without the help of others and I
would like to take this opportunity to thank everyone who helped me with this thesis.

First of all, I would like to express my thanks and appreciation to my Advisor Asst. Prof.
Mesfin Lemma, for his guidance, continual advice, patience, vast knowledge, and critical
review of the thesis. It has helped me to improve the quality of the report and compilation
of my thesis work.

Then, I am indebted to Commercial Bank of Ethiopia, Bank of Abyssinia and Zemen Bank
S.C. management and employees who have showed me a welcoming face and their
willingness to devote their valuable time in filling the questionnaires. Without their kind
cooperation and valuable responses this study would not be complete and become a reality.

Last but not list, I would like to thank my youngest child, Eyouel M, for his understanding,
never-ending motivation, support and love. My achievements are yours also.

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LIST OF ABBRIVATIONS AND ACCRONYMS

ATM Automatic Tellers Machine
BOA Bank of Abyssinia
CI Continuous Improvement
CBE Commercial Bank of Ethiopia
CRM Customer Relationship Management
CSFs Critical Success Factors
IT Information Technology
KPIs Key Performance Indicators
KM Knowledge Management
OWS One Window Service
SPSS Statistical Package for Social Science
ZB Zemen Bank

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LIST OF TABLES

TABLES PARTICULARS PAGE
Table 2.1: Summary of CSFs for CRM from various literatures ……………………. 19
Table 2.2: CSFs for CRM derived from modified model for CRM implementation… 25
Table 4.1: Sex of Customer Service Officers, and Managers and CSMs …………… 33
Table 4.2: Age of Customer Service Officers and Managers and CSMs ………….. 34
Table 4.3: Work Experience of Customer Service Officers and Managers and CSMs 35
Table 4.4: Educational Qualifications of CSOs and Managers and CSMs ………..... 36
Table 4.5: Leadership Commitment and Readiness ……………………………… 40
Table 4.6: CRM Business Strategy ………………………………………………. 41
Table 4.7: People-Employee attitude and knowledge on CRM ……………………. 42
Table 4.8: Business Process ……………………………………………………….. 43
Table 4.9: CRM Technology: ………………………………………………………. 44
Table 4.10: Performance assessment of CRM effectiveness ………………………. 45
Table 4.11: Leadership Commitment and readiness ……………………………… 46
Table 4.12: CRM Business Strategy ……………………………………………….. 47
Table 4.13: Organizational Structure, culture …………………………………..… 48
Table 4.14: Employee attitude towards client ……………………………………… 49
Table 4.15: Employee Knowledge and wisdom ……………………………………. 50
Table 4.16: Business Process ……………………………………………………….… 51
Table 4.17: Channel of Communication …………………………………………….. 53
Table 4.18: CRM performance measurement ………………………………………. 54
Table 4.19: The role of CRM on performance ………………………………………. 55
Table 4.20: Establishing and monitoring of CRM performance ……………………. 56

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LIST OF FIGURES

FIGURE NAME OF FIGURES PAGE
Figure 2.1 Payne’s model of CRM ……………………………………. 20
Figure 2.2 The Eight Building Blocks of CRM ………………………. 21
Figure 2.3 Frame of Reference by Thomas Kwaku Obeng & Karla Loria 22
Figure 2.4 Conceptual Frameworks for CRM by Payne and Frow …… 23
Figure 2.5 The proposed Model for CRM Implementation ………… 24

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