The Effect of Relationship Marketing towards Enhancing Organizational Performance

Abstract

Businesses are living in a world of stiff competition. To be successful in this competition, considering customer relationship is a requisite, and organizations need to concentrate more on applying relationship marketing variables. The objective of the study is to assess the effects of relationship marketing towards enhancing organizational performance. The researchers made use of exploratory research design to make an in-depth investigation of the problem and to develop a working hypothesis from an operational aspect. Customers and employees of Ethio-telecom, Kobo branch were the target population of the study. A five point Likert-Type questionnaire and structured interview were administered to collect the pertinent data among selected Staffs of Ethio-telecom; kobo branch. Stratified sampling technique was used to identify the sample respondents from the sampling frame and the data were analyzed by using SPSS version 20 software. The result of the study shows that commitment has highest effect on performance followed by conflict handling (β=0.287,p=0.01), communication(β=0.229, P=0.01) and trust (0.154, p=0.05) respectively. The need to augment the level of loyalty to customers, developing a cooperative behavior to clients, hire employees who are likely to become linked to the organization, rendering a flexible service packages, providing sufficient and trustworthy services and demonstrate knowledge and expertise and confer continuous and uninterrupted services are among the possible recommendations forwarded on the basis of the finding of the study.