CHAPTER ONE INTRODUCTION1.
1. Background of the studyCustomer relationship management (CRM) is progressively significant to companies as they chase to recuperate their marketing performance through customer retention, customer acquirement, market share, and sales volume throughout long-term relationships with customers. Now days, many companies have attentive greatly in information technology assets to well manage their alliances with customers before, during and after procurement (Bohling et al.
, 2006).However, the reachable returns that were attained from information technology investment programs sporadically increase from a slight courteousness on information technology only, with the maximum successfulparcelsintegration of technology with the productive use of organization of people and their knowledge’s (Bharadwaj, 2000; Piccoli and Ives, 2005).They also reveal that, the better proficiency about how companieseffectively build and conglomerate their technological and organizational competences, the greater our understanding of how CRM impactcompany’srecital.Chastonet al.
(2004) find Pragmatic support that the espousal of customer relationship management versus transactional marketing alignment has encouragement on the market recital of small accountancy rehearses. Parvatiyar and Sheth (2001) contemplate CRM is the enduring process of appealing in accommodating and concerted activities and programswithinstantaneous and end-user customers to generate or improvecommunal economic worth atabridged cost.Banks are struggling with each other to triumph a great wedge of the market share with a globalization upshot. For that purpose, the banks have to searchobstacles to meet the greattumor of customer anticipations (Hinnawi, 2011).
In Ethiopia, according to Tsegay and Shifera (2011) the banking sector is painstaking as foremostlegatee in latesteconomicimprovement. Therefore, wellestablishment of strategies in banking sector is the most desired one particularly in the current information technology era.Moreover, in Ethiopia, the fast expanding of banking andother financialservicesoffer the commercial infrastructure enhances to the economic enlargement& structural alteration.
This is clearly revealed in the progress of assets in the financial division and the involvement of the financial division to gross national product in past ten years (Ibid).Recently, more than ever before, strong rivalry, disintegration of markets, short life sequences of products and snowballing customer awareness and involvedness are the big difficulties to the banking sector (Tsegay, 2011). In such condition, banks can practice the CRM strategy to generate, sustain, and expand strong relationships with their customers to sustain their market enactment. Therefore, it is significant to empirically inspectfactors that influence on market recital.
Such sympathetic will succor in better management of bank-customer relationship and in attaininggreater level of market enactment among (Ndubisi, 2006). This study drive to empirically examine the assessment of customer relationship management practices and its effect on companyperformance with reference to commercial bank of Ethiopiain sevenselected branches (Abaymado, Bahirdar,Bezawit, Donaber,Gishabay, Shimbet&Tana)in bahirdar cityadministration.The selected CBE brancheshave almost 75 % of customers & employees from the total 14 CBE branches found in bahirdar city administration & also they have been established & launched their work early from others CBE branchesdue to this they have more reliable &organized data that isused to conduct theresearch.1.2. Statement of the ProblemAccording to Parvatiyar and Sheth (2001), the application of CRM as a device ofcompetitive advantage is swellinguniversal.
However, there is no doubt that the realoperation and resourcefulimplementation of CRM is vital to the achievements of a firm.The majority of the businessessmearing CRM were so far to glowing benefit of it in terms of snowballing profitability, escalating market share, ornamental sales volume, nourishingcustomers, retentive customers and plummeting customer defection by appealingbuddingcustomers, because there are no mincedtactics and practices on adoption;enactment and applies.As the world has become a global village, rivalry became harsh and strained betweenorganizations and designed a situation of persistentalteration, and holding a customer hasbecome vivacious for the success of any business and Ethiopia is no concession. However, intoday’s world customers have more attentiveness and supernumerary of various products and servicesdue to up-to-date and confounded outlets of communication like internet than ever before.
Hence due to upgraded customer alertness, customers are more requesting, and those bankshaving vigorous relationships with their customers have forceful competitive advantage in termsof enlargement profitability, market share, customer holding and appealing new and potentialcustomers over other banks.Customers are becomingstiffer to delightthey are keener, more price delicate, more difficulties, less compassionate, and they areappeared by numerous more contestants with equal or improved offers (Kotler, 2007).According to Umesh et al. (2006), the prominence and arrangement of banking operation is anecho replication of the economic enlargement anddeterioration in the country. As well as, it is a recognized fact that banking industry by networking the repast savings to fruitful uses and deliveringflexibility to the capitalacting a meaningfulrole in attaining the foreseeable socio economic enlargement of a country. Accordingly, the accomplishment andengagement of the banking industry is anindispensablesituation for the economic enlargement of a country.
However, customers are vigorous for business in general and banking industry in predominantly Ethiopiaalengthy way in meeting the fluctuating needs and enquiring of customers.These prevention have many difficulties from economical to political, thoughts tosophisticated tools for customer gratification, customer holding, customer attaining, salesvolume, market share from legislation toenactment. Thus, one of the difficulties which contributed a lot towards the above drawback could be deficit of knowledge of CRM by the business professionals and deficit of conceptualframework. Moreover, even nevertheless some of the professionals have appreciated the prominence of CRM, they deficitasympathetic of what establishaplentifulset of CRM executes. In this standing, the researcher could barelydiscover studies connectedwith the knowledge and execution of CRM practices as well as their correlation on organizational performance. Therefore the researcher want to study usuallystimulatedCRM practices used in preceding researchers Tsegay (2011), the consequence of customer relationship advertising on customer retaining,Mekelle University and Shifera (2011), the influence of relationship marketing on customer faithfulness that compriseskey customer focus, customer knowledge management, CRM Based technology and CRM organizationirrespective of other superfluous variables that impact positively or negatively the recital of the business.
With standing to CRM, studies had been recurrence in most developed countries like USA,Europe and Asia and developing countries like South Africa, Ghana and Nigeria, But, currently it is apparent that Ethiopia is one of the profligategrowingcountries in economy in the World, as such requires the implementation of CRM philosophies forbusinesses to be prominence in the global marketingcontest.At this time commercial bank of Ethiopia is among the prominent banks in the industry that have pronouncedinvolvement in country’s economy, Although CBE is one of the prominentbanks in the country, there is a difficult in the unceasingexpansion of bank’s recital due to diverse features like deficiency of respectableaffiliation between the bank and its clients, deficiency of innovative skills, deficiency of knowledge about clients and rivalry in the banking industry. As the researcher attempt to indicate local published studies in this arena he seek few such as, Tsegay (2011), the impact of customer relationship marketing on customer preservation, Shifera (2011), the consequence of relationship marketing on customer faithfulness, Addis Ababa University. Consequently, this offers the motivation for this research project to be steered to aid bracketing the literature gap offering.The rationalization of conducting this research project on these seven selected CBE branches (Abaymado, Bahir dar,Bezawit, Donaber,Gishabay, Shimbet; Tana)in bahirdar city administrationto assess the CRM Practice ;its effect on banks performance, as they have almost 75 % of customers ; employees from the total 14 CBE branches found in bahirdar city administration and also they have beenestablished; launchedtheir work early from others CBE branchesin bahirdar city administration.
1.3. Research Objectives1.
3.1. General ObjectivesThe main objective of this study was to assess customerrelationship management practices and its effect on performance of commercial bank of Ethiopiabranches in bahirdar city administration.1.3.
2. Specific ObjectivesIn conformity with the above general objective the following specific objectives are set. To assess the effect of customer relationship management practices namely key customer focus, customer relationship management organizations, customer knowledge management and CRM based technology on company performance of CBE branches in bahirdar city administration. To investigatethe relationship between key customer focus, customer relationship management organizations, customer knowledge management and CRM based technology and company performance. To measure the level of implementation of customer relationship management practices ofCBE branches in bahirdarcity administration.
1.4. Research HypothesisIn order to achieve the purpose of this study, the following hypotheses are considered to be tested.H1: Key customer focus has positive and significant relationship with company performance.H2: CRM organization has positive and significant relationship with company performance H3:Customer knowledge management has positive and significant relationship with company performance.
H4: Customer relationship management-based technology has positive and significant relationship with company performance.1.5. Significance of the StudyConducting a study on customer relationship management in publicbanks is believed to be adomineeringviewpoint.
The research is prepared for partial fulfillment of the requirements for award of the degree of master of business administration (MBA) in the University of Gonder. The research results willdeliverassistance to the commercial banks of Ethiopia management to healthiergratify their customers, reply to their desiresproficiently and on sensiblecomportments. The result of this study offers knowledge how to determine the desires of their customers in conveying advanced technologies to mend the excellence of their services. The study also bounces a path for banks how to uphold the present customer and entice new customers by providing technology based service in sunny of its contestants.
In addition to this, it may serve as a source of reference and give some highlights for others who would liketo know more about the issue and interested in under takings further research on factors that affecting customer relationship managementpractice.1.6. Scope of the Study Conducting a research in all service businesses is not alaidback task; it entails much money, time and sweat.
Considering; money, time and inclination of the banks to bouncerequire data for the study. Therefore, this study waslimited to assessment of customer relationship management practices(key customer focus, customer relationship management organizations, customer knowledge management, and CRM based technology) and its effect on the performance of commercial bank of Ethiopia in seven branches (Abaymado, Bahir dar, Bezawit, Donaber, Gishabay, Shimbet; Tana), in bahirdarcity administrations.Beyond the above explaincommercial bank of Ethiopia branches were not be incorporated in this study. Including customers in the study was costly and time consuming,therefore, the study was delimited to collect data only from CBE employees of the selected branches. The study also was delimited to collect primary data using questionnaireand an interview.1.
7. Organizations of the StudyThethesisis organized into five chapters. The First chapter is introductory part whichconsists of background of the study, statement of the problem, research objectives,and hypothesis of the study, significance of the studyandscope of the study.The Second Chaptercontains a literature review informing the reader of what is already known in this area of study. The Third Chapterdiscuss the research methodology whichdescribe aboutresearch design,research approach, data type ; source, data collection instrument,sampling frame, sampling unit, sampling techniques, target population ; sample size, methods of data analysis; presentationand also limitation of the study.The Fourth Chapter discuss about data presentation, analysis and interpretation, figureand different tables are used in this part to describe and analyze the quantitative data.
Finally The Fifth Chapter presents the major conclusion drawn from analysis and findings of the study and possible recommendation for the identified problems also included.CHAPTER TWO2. REVIEW OF LITERATURE2.1.
Definition of Customer Relationship ManagementThe goal of this study is not just to apprise the reader with the practices and know-how of CRM philosophy. The more endeavoringaim of this study is to aid the readers to comprehend the prominence of customer relationship management as indispensable and importantelements of managing every fruitful enterprise. Hence,a firm most respectedasset is its customers, and give the new and performance technological competences todistinguish, measure, and manage relationship with each of those customers in order toflourish, a firm must emphasis in purposelysnowballing the worth of the customer base”(Peppers ; Rogers, 2004,p.
6). Therefore, the competitivebenefit for any enterprise can be obtained only by leveraging knowledge of customers’ predictions, choices and conduct, which implicatebuilding an enduringnegotiation with customers and employing the information and mindfulnessattained at every customers touch points (Payne, 2004). Itsvalueuttering that, buildingrespectable life time worth with customers is not a briefduty of the marketing department rather it’s an enduring process which indispensable the engrossment of the whole organization.
This is accurate for nonprofit (when the customers may be benefactors or helpers), as well as for-profit, large or small, public or as well as for private business” (Peppers, 2004, p.6).However, many academics give plentifuldefinition for customer relationship management, among these enlightenments technological and relationship facet of customer relationship management are the important ones. For marketing knowledge focus the marketing side to explain customer relationship management while others anticipate information technology lookout to pronounce CRM. However, from marketing point of outlook, CRM is outline according to (Could well, 1998) as “CRM is anamalgamation of businessprocess and technology that are used to comprehend a company’s customers from the belvedere ofwho they are, what they do, and what they are like”.But, according to Swift, R.
S., (2000,p.11), more stress is given for customer relationship management and is defined as “it is a scheme of business technique that are sympathetic anddeployingcustomer demeanor by managing relationships via fruitful communicationin orderto elevation customer turnover”.
In these situations, customer relationship is defined as a multidimensional conceptunruffled of four behavioralingredients:-key customer focus, CRM organization, Knowledge management and CRM -based technology in order to employ the CRM in a fruitful way for snowballing the market recital (Sadek et al. 2011).2.
2. Customer Relationship Management and Information TechnologyAccording to Buttle, F., (2009),customer relationship management sets more courtesy on the advancement of quality service and marketing function, and then fears about cross-selling and offering product or service undeniably at precise time for the precise customers. Differentiate information technology implementation are the vital point and salesforcecomputerization in this extreme. Information proficiency in customer relationship management set upissues related to business sales approaches and effectiveness, crusade management, networkintegration and, snowballing product and management, dedication and preservation, cost minimization, customer service, and after-sales backing. Nowadays, CRM-based informationtechnology with its classification like operational, pinpointing, and cooperativebackingschemesenhance the processesinvolved in all sides of customer-facing connections.
It combinesadvertising, customer services, and severalcommunicationnetworks and offers personalize services by showing a customer’s conduct so as to scale up the worth of the enterprise. Information technology through the internet has not only deliver anentirely new communications network, but has persistentlyaltered the role and purpose of customer communication.2.2.1.
Service Automation in Banking IndustriesThe knowledge of service automation showsanenergetic role in business and it’s the application of high-techscheme used to sustenance service staffs and management in directive to attain their work linked activities. For the moment customer service sections are accountable for managing incoming call focusprocesses, grievancetreatment and steadfastness, command entry and dispensation, providing arena sales sustenance, managing outbound call focusprocesses, and acting as contact to other departments. Communicationhubs are arranged to interconnect with customers crosswaysmanifoldnetworks, including speech telephony, e-mail, SMS, prompt messaging, web alliance and fax. According to Buttle, (2009), service proxies requisite to be able to access a whole announcement history, irrespective of network when collaborating with customers about service matters. However, call hubs are typically devoted to telephony communications, whether through a community swapped telephone network, cell phone network.
But the information counters are usually accompanying with information expertise situations where backing is obtainable to information expertise labors. Many businesses now concession web based personality service to customers, customers can residence instructions, pay, track service concerns, or achieve service analytical online at any time of day or night.2.
2.2. Marketing Automation in Banking IndustryAccording to Buttle(2009), in totaling to service automation, marketing automation also plays a vital role in service giving industry especially in banks and it can be distinct as “the application of high-techknow-hows to sustenance marketers and marketing management in the attainment of their exertionassociatedpurposes”.
Anactualwidevariety of marketing places can make use of marketing automation as well as marketing managers, crusade managers, market predictors, advertising managers, database marketers, and straight marketing managers. Hardware and software are the crucialhigh-techrudiments of marketing automation. Hardware comprises desktop, laptop, and handheld devices whereas software entail of both factresolutions that are intended to backing in a solitary area of marketing or marketing management, and united solutions that offer a variety of functionality.2.
3. Customer Relationship Management Objectives in Banking IndustryIn business operation the objective of CRM is that, it aids businesses to use experience and human resources in directive to gain sympathetic into the behaviors of customers and the worth of those customers. In this occasion business can providebetter-quality services, making their activities more proficient, emerging positive and close relationship with staffs, update marketing and selling activities, ascertain new customers, and upsurge customer returns.According to Semih and Ibrahim (2000), for CRM to be actually effective and fruitfulpredominantly, abusiness must appreciate and ascertain what kind of customer information is permitting for and it is crucial to choice what it intends to do with that information. For illustration, most of banking institutions retaintrack of customer lifetimestages in order to market appropriate banking products like mortgages to them at the accurateperiod to meet their desires.
However, the business must look into all of the numerousrealities about customers into a business, where and how this information is warehoused and how it is presently used. For illustration, one business may have a relationship with customers through mail crusades, websites,call hubs, mobile auctionspower staff and marketing and advertisingexertions. Mehrota (2006) specified that, before the outline of internet era, customers greatest of the time nominated their banks founded on how suitable the place of banking branches was to their homes or office. However, with the outline of new technologies in the business of bank services, such as delivering banking services through internet ‘internet banking” and”ATMs”, now customers are more appreciated and they can effortlessly selections any bank for their dealings. This singularities augmented customer base of banks, and also has enlarge the elections of customers for choosing the diverse banks as per their welfares.2.
3.1. Benefits of CRM in the Banking IndustryCustomer relationship management is anattitude that are providing unbelievableprominence any businesses predominantly banking industries since the knowledge’s of CRM improve how to appeal, conquer,retain, and catch potential and new customers for a business in order to contest and endure in stiff rivalry. According to Liyunet al (2008,) the prominence ofCRM is to emphases on keeping and upholding long-term relationship with customers, leading to customer satisfaction and hence generating business recital in the banking industry However , Kalakota and Robinson, (2001); Shani and Chalasani, (1992) highlight that the companies’ purposes from using customer relationship management is to know their modified customers and to offer personalized services, in order to increase both customer gratification and their marketing recital in the long track through keeping customers faithful to them.
Nguyen et al (2007), persistent that the customer relationship management if used properly, would mature a bank’s capability to achieve the decisiveaim of holding customers in order to mend a strategic benefit over its contestants. Accordingly, the fruitful management of customer relationship can upsurge customers’ gratification and faithfulness, in order to give hopefulconsequence on indorsing market recital (Liyunet al., 2008).Furthermore, customer relationships are delightful, particularly significant for banks as market situations get firmer. Race is snowballing, earnings are deteriorating. Customers are becoming more puzzling and the life-cycles of products and services are margarine melodramatically.
Allthese issues make it vital for banks to upsurge the relationship with their customers and deliver them the services they requisite via the networks they desire.2.4. Empirical Findings on Customer Relationship ManagementMost of the studysteered on customer relationship management is based on confirmation from majority of previousexperimental studies that are done in countries. Here, in this slice certain experimentalresultssteered based on countries will berevised.
According to Swaminathan, (2004), the connotation of customer relationship management and its clientupshot has been done by considering banks, investment companies, insurance companies and other firms as anillustration study which pigeonholed as high notch of relationship alignment and thus well suitable for analysis CRM framework. Although for the persistence of data collection questionnaire was used and for these case questionnaires were sent directly to general managers and similarly level senior managers. These senior-level respondents were extremelyeducated about CRM application and drill within their companies as designated by their capability to response fully practically all questions. Accordingly, the results displays that concentrating on crucial customers and managing knowledge have importantpossessions on market recital in terms of customer gratification.However, customer gratification is not directly pretentious by organizing around CRM and integrating CRM-based technology. Besides, organizing around CRM distresses customer preservation directly.
Correspondingly, managing knowledge has a momentousupshot on customer preservationand sales growth via customer gratification. Integrating CRM-based technology displays no indication of momentousupshot on the recital metrics.Also another study has been directed on the ultimate role of customer relationship management on customer knowledge and customers ‘satisfaction.
For this research the essential data was collected from managers of information technology almost from 300 organizationsoccupied in United States of America. The discovery showed that the solicitations of CRM have a positive consequence as they donate to advance the understanding of the customer and improve the market recital (Mithas and Frow, 2005).Also studies were showed in Turkey on the customer relationship management method within a business and commend a device or customer relationship management dimension. The criticisms from numerousbusinesses like manufacturing, information technologies, tourism, service, retail, finance, and logistics were gathered.
The study permitslacks of information about the connection between the progressions and results of CRM such as CS, CL. As anoutcomeanextensive model can be collected and the connection between CRM results, customer relationship management progressions and other organizational aspects can be examined. The consequence of organizational attitude, preparation and other organizational structures on CRM progressions and outcomes can be investigated (Oztaysi, 2011).The degree to which customer relationship management underwrites to mend the enactment of banking was recognized by Coltman (2007).The study serene a sample of banks set up in Australia upon the solicitation of know-how and quantity of clients.
The aptitude to relate client association management was leisurely using humanoid expertise and involvements, edifice of information know-how and carcass of the business. Enactment was restrained by the getting rate of the venture, the income of new products and the development of trades. The study accomplishes that, aptitude to smear client association management clue to enhancement of enactment in generally banking actions.
Ryals (2005) in his research revealed that the application of CRM actions provide larger incomes. The lifespan tenets of customers in two longitudinal case studies shown that client administration tactics alterations with veneration to the worth of the client. Hence CRM works and a judiciously forthright investigation of the worth of the client can mark a factual alteration.
Now the perception of CRM fetches healthier enactment of the business through suitable dimension and management of client associations. The inclusive income and cost documents particular to single clients or client sections outcomes the companies to amend their CRM tactics. The involvement of this artefact is to demonstration that the correlation between the client incomes and morals are satisfactorily great proposing that the worth of client majorly regulates the quantity of income it engenders which again can’t be sweeping as it might be business precise or further explicitly to business associated with monetary facilities. Payne and Frow (2006) inspected CRM from the standpoint of tactic construction and execution. They anticipated a model that contracts with together CRM tactic and application.They analytically recognized four apparatuses of fruitful CRM platform i.
e. CRM eagerness valuation; CRM alteration administration; CRM scheme administration; and worker rendezvous and scrutinized these apparatuses with five crucial cantankerous purposeful CRM procedure which are tactic enlargement, worth formation, multi-channel amalgamation, information administration and enactment valuation. Additional the consequence of CRM is studied instantaneously with origination and business enactment.
The consequence demonstrations the positive influence of CRM on the way to business enactment, a discovery which is dependable with preceding research (Hooley et al., 2005).Kolis;Jirinova (2013) pronounced in their research a connection between CRM and business’s enactment. Four crucial magnitudes of client association management – clientgratification, faithfulness, worth and evenhandedness were booked into contemplation to undertake this research.
Each measurement is verified for correlation with business enactment pointers which pronounced how proficiently the business transmutes trades into income, was preferred as the foremost business enactment. Cengiz (2010) in his employed paper appraised and studied on the prominence of computing client gratification. It has advanced through the study that client gratification in this modest market is must and computing it is not specifically an erstwhile progression. It will ultimately clues to succeeding progressions to get achievement. The gratification will composition a vibrant heroine in client prospects and can generate a modified promotion assortment.
Worker placement is entrenched in the work tradition of a business which is noticeable through its worth rudiments comportment and relics. CRM is grounded on four rudimentary accomplishments: designed scheduling, information, worth formation, and enactment dimension. These rudimentary accomplishments extensively conjecture connotation between CRM achievement and worker alignment and the scheme fundamental this connotation elucidate the boundary of worker placement and Client Association Administration (Plakoyiannaki et. al, 2008).
Thus the sympathetic nonfictions studied and occurred all demarcated CRM as client centric and decent CRM applies generates influence on gratification and faithfulness of client. Additional in this research, the researcher will endeavor to authenticate it through quantifiable study that client association administration has positive influence on client gratification and faithfulness.Amir Mozaheb, Sayyed Mohammad Ali Alamolhodaei& Mohammad FotouhiArdakani (2015)in their research demonstrated in nowadays, the inevitability of enduring actions and preserving the modest benefit is courtesy to clients that due to their straight association with business movements are respected foundation for prospects, intimidations and effective interrogations connected to the business. This study intentions to scrutinize the consequence of customer relationship management (CRM) on the enactment of small and medium size enterprises (SMEs).
Arithmetical populace of this study is managers vigorous in Business Park in Mashhad.Arithmetical sample of this research is 105 managers who were nominated randomly from among themanagers of business green placed in this city. Library technique was used for collecting data. In thisresearch, survey method and questionnaire were used to ascertain the consequence among variables and data analysis was done by SPSS19 software.
Outcomes disclosed that CRM has noteworthy outcome on the recital of business. Know-how is a crucial aspect which impacts SMEs and clues to preeminence on contestants. Moreover, for accomplishing extra anticipated enactment, business should emolument courtesy to arcade and clientsEsmaeelRamezanpour, Seyed Mohammad &FatemehSotoudeh (2013) in their research, in adding to the empathy of clients’ association managementmagnitudes, their influences on the monetary enactment of banking facilities are studied. To accomplish the research purposes, information know-how, acquaintance administration, client reply and client interface administration as the client association administration magnitudes were recognized and four hypotheses were reputable to examination the influence of these magnitudes on Mellat bank’s monetary enactment in Rasht. In order to gather data, a standard questionnaire containing 18 questions was used. The questionnaires were disseminated among 203 bank workers as the statistical samples. To examination the hypotheses, the Pearson Correlation Coefficient Method, Simple Linear Regression and MultipleRegression Analysis were used.Examination outcomes disclosed that there is a positive noteworthy associationbetween the magnitudes of client association administration and the monetary enactment. The influence coefficient of all the hypotheses through regression tests was positive in which information know-how has had the extreme consequence. At the end, bestowing to each of these aspects, commendations were delivered in order to intensification the monetary enactment of banks.Dr. E. B. Khedkar& D .Y Patil (2015)in their research describe the Customer Relationship Management (CRM) is the extremely esteemed in marketplace for standing and contemporary clients. In this research they ascertain the consequence of CRM on aspects such as client gratification and client faithfulness. Subsequently CRM is distinct as an imperative crucial in industry among businesses to preserve and intensification their clients base. In this study they guise for numerous features that are indispensable for an operative CRM. In this research, they distillate on these matters that are attractive prominence to advanced level bureaucrats in a business: is there an association between CRM with client gratification and faithfulness in Indian businesses? If so then how we can narrate CRM with client gratification and faithfulness? With globalization businesses are mounting quickly and with always mounting businesses, race is also snowballing. Additional with suitable arithmetical analysis the hypotheses mounted in this study is authenticated and the consequences displays great positive correlation among the variables painstaking for the study.In developing countries most of the studies on client relationship management have been finished on the basis of data attained from developed countries.For illustration, a research was steered on client relationship management and clientalignment on the Hotel industry. Accordingly the study strained to categorize hotels in Ashanti region of Ghana into a classification of low, middle, or high customer relationship management mindful. The fallouts of the findings of the hotels have low alignment to CRM (Hamdallah and Evelyn, 2011).According to Sayed (2011) research was steered on discovering the theoretical bases of customer relationship management and its relationship to the marketing recital from the numerousviewpoints. However, the population of the study comprises all the financial organizations working in the Arab Republic of Egypt. The Upshot of the research displays that there is animportant correlation between marketing recital and emphasis on the key customers, organizational competence and customer knowledge management.Besides, the research was steered on how information technology could improve firm performance in the organizations that are delivering services for the customers and in order to improveeffectiveness in the Nigerian insurance industries (Oghojaforet al, 2011).Accordinglyto the used survey approaches to gather data among insurance companies in Nigeria. Also a sample from Lagos municipal, the commercial focus of the countryis nominated. Lastly according to the upshot of the finding displays, despite the fact that all mostall organizations have anextensive data base of their customers, but not almost createnecessities for their customers to generatemaintrades online because they have not entirelyassimilated their customer relationship management with information technology.Kapologwe Lugano (2013) described in his research one of the greatest imperative encounters for any institute is to assist and preserve virtuous associations with the king (the client). previous, clients were humble individual and were joyful at whatever invention or facility accessible to them. This altering commercial atmosphere is pigeonholed by monetary liberalization snowballing rivalry, great client optimal, knowledgeable and arduous client who overhaul about superiority and worth procurements (Kotler, 2002). In this study researcher scrutinized the influence of CRM on recital of banks in Tanzania. Precisely the study guises frontward to bump into the succeeding explicit purposes namely; to regulate influence of hominid analytics, industry architecture and IT know-how and groundwork on effectiveness of banks in Tanzania, also to decide encounters that facades banks in executing CRM actions and finally to deliver commendation for cultivating CRM in Tanzania Banking Business In order to achieve the above revealed intents, researcher used case study scheme so as to sort in deepness investigation on crucial notions under examination. Researcher secondhand Exim Bank as an incident study for this exacting study, and sample for this study was acquired by exhausting purposive sampling to attain main squealers. In this research paper, researcher scrutinized the impression of CRM on industry recital expending case study methodology. Succeeding the resource-based observation of the industry, CRM is hypothesized as an endogenously gritty occupation of the organization’s aptitude to hitch and compose lesser command proficiencies that encompass somatic assets. Our outcomes disclose a positive and momentous footpath between a greater CRM competence and industry enactment. In turn, higher CRM competence is positively connected with humanoid analytics and industry architecture. However, outcomes recommend the influence of IT groundwork on greater CRM competence is unintended and entirely interceded by humanoidanalytics and industry architecture.Zainab Said Abdallaa (2013) in his research demonstrated clients are the principal point in the enlargement of fruitful promotion tactic. Promotion tactics both impact and are predisposed by buyers’ distress and cognizance, comportment and atmosphere. In the banking arena a distinctive ‘association’ happens between the clients and the bank. But because of numerous motives and trepidations like commercial encumbrances, risk of disaster, promotion apathy etc., numerous banks are still succeeding the outdated techniques of advertising and only few banks are creation endeavors to acclimate CRM. It is with this background, the researcher has made a diffident endeavor in the direction of the impression that CRM can be amended homogeneously in the banking business for advancement of banking facilities. The overall dispassionate of this study is to measure the involvement of client association management on PBZ (Peoples banks of Zanzibar) enactment and precise purposes are to regulate if the CRM has any influence on client faithfulness, to discovery out the degree in which the facility delivered clues to client gratification in PBZ and to suggestion relevant recommendations grounded on the outcomes. The study concealments the sample of 45 respondents who were the clients of PBZ and 5 officers from the banks including the IT director, the client facility division, the advertising manager and accountant. The primary and secondary data were gathered and analyzed by means of a statistical package for social science (SPSS) and offered in tabular form, chart and graph. The main outcomes displayed that there is straight positive association between the excellence of facility accessible and client gratification and there is straight positive association between CRM programmers of PBZ on client’s faithfulness. The study also displayed that there is a noteworthy enhancement in bank enactment and it was commended that business should appreciate that CRM is an predictable apparatus of advertising that can be painstaking as Precarious Restraint of Souk with respect to Banks in contemporary situation.Moreover, additional research has been completed by Hamid (2009). Henceforward the research was not only enchanting a non-traditional technique of assessingachievement; by tactics stakeholders’ prospects as an assessment criterion but also focused a case study from Pakistan, wherever ICT industry and precisely CRM is in the originalphases of implementation. The only recommendation the researcher would like to make is that in its place of reinventing the wheel, stakeholders should acquire from the faults of the western companies. If they have introduced the solution from these developed countries, then those failure teachings should also be introduced and practical in order to avoid injury and financial fatalities. The outcomedisplays that the loyalty card program has important positive outcome on the customers’ loyalty. Although loyalty card program may not be the greatestexcellent for some supplies, also there are many other methods to improve and preserve customer loyalty. Having all the above studies directed by numerous scholars, the dimension of CRM netting can be dissimilar form researchers to researchers, some studies unrushed them through the customer’s satisfaction and loyalty, others studies unhurried them through the return rate on investment and others unhurried it through snowballing sales and profits.Solomon Amare (2014) in his research examined CRM as a tactic has gained marvelous curiosity among researchers and experts in current periods.Hence, the study attempts to measure the position and techniques CRM has been placed in to rehearsal by nominated Ethiopian isolated banks. In tallying, this research contemplates diverse CRM magnitudes such as faith, mutuality, sympathy, attachment andreceptiveness. To attain the dispassionate of the study, primary data were gathered through questionnaire from sample of 253 bank clients of Wegagen bank, Dashen bank and Bank ofAbyssinia, Mekelle, Ethiopia. These respondents were designated using simple random sampling technique. The data gathered through questionnaire were scrutinized using descriptive statistical analysis method and SPSS as ainstrument of data analysis. The discovery also recommends some actions which can be booked in to contemplation in order to augment CRM performs of the three designated banks. The study also obviously shown that the five CRM magnitudes are sturdily associated. Therefore, from clients as well as management physiques of the three banks standpoint, CRM has a momentous effect on client retaining of the selected banks. Mostly communication the three banks are in prerequisite of undertaking a lot of CRM grounded client fixated applies. Though, in executing CRM in to rehearsal, the designated banks had their own breaches. Paralleling the designated private banks on their aptitude of executing CRM rehearsal, Dashen bank was originate to be healthier executer, trailed by Bank of Abyssinia and Wegagen bank, correspondingly. Grounded on the conclusions of the study, the researcher onwards some commendations as; incessant administration on the superiority of amenities, endowment of drill to employees, and persistent research on client desires may assistance the banks to attain their intentions.SemiraEwnetu(2015) Customer relationship management shows a key role in the enhancement of firms’ performance. The importance of Customer relationship management is growing due to the challenging business environment faced by organizations throughout the world today. The purpose of this study is to examine the impact of customer relationship management (key customer focus, customer knowledge management, technology based customer relationship management and organizing around customer relationship management) on marketing performance (customer loyalty, customer satisfaction, customers’ perception and service quality and market share) of fourcommercial bank of Ethiopia branches from East and South Addis Ababa district. In this study both qualitative and quantitative approaches were employed. The study used primary and secondary sources to gather data. Primary data were collected through close ended questionnaire and semi-structured interview. The population of the study was employees (customer service officers, customer service managers and marketing managers) of the selected fourbranches commercial bank of Ethiopia branches from East and South Addis Ababa district. The total sample size for the study was 246 among these 233 were customer service officers and managers and the rest 13 are marketing managers. These employees were selected because they are concerned about the customer relationship management practices and marketing performance of the bank. To analyze the collected data correlation, simple linear and multiple regression was used. The findings show that customer relationship management dimensions (key customer focus, customer knowledge management, technology based customer relationship management and organizing around customer relationship management) affects customer loyalty, customer satisfaction, customers’ perception and service quality and market share. Among the problems faced by the bank on implementation of CRM practices, lack of customer centric performance standards, lack of advanced technological facilities and lack of standardized physical facilities are the major ones. To increase employees’ performance, reduceclient waiting time and intensificationfacility Excellency, the bank should establishing customer centric performance standards at all customer touch points and use advanced banking technologies and facilities.2.5. Conceptual Framework of CRMAccording to Langerak, and Peter, (2003) in marketing management the quintessence of customer relationship management attitudeinvents from three thoughts. Those are: -customer orientation, relationship marketing, and database marketing. Due to the improvement of information communication technology, these three marketing outlooksjoint together in the paradigm of CRM. However, CRM may be used to precisevariousviewpoints at diverseclassifiedprocedure of management. For illustration, at the strategic level of management customer relationship management may be associated to data-base marketing or automated marketing; at the tactical level, customer relationship management may be implicit as customer preservation or affiliating with customers (Peppers and Rogers, 1995); whereas at the hypothetical level, it may be realized as evolving research paradigm in advertising most often slacklyconcomitant to prevailingoutlooks.According to Sayed H. (2011) CRM is a multidimensional construct consisting of four broad behavioral components; those are: “key customer focus, CRM organization, knowledge management, and CRM -based technology”. Also he investigated the four CRM behavioral dimensions on market performance of financial institutions in maintaining current customers, attracting new customers, increasing market share, enhancing the standard of sales growth and adding the net profit standard to sales. Bearing in mind the model, the researcher focuses on the banks among many financial institutions. Performance dimension of CRM considers their performance in terms of combining technology, appropriate handling of key customers, customer knowledge management and organizational efficiency in relation with market performance of the selected banks. As it has been piercing out in the first chapter of this research, the first objective of this study was to assess the effect of customer relationship management practices & its effect on company performance. In this end, bank’s performance is painstaking as dependent variable which is explicated by customer relationship management and other factors. In order to be able to stipulate the effect of CRM on bank performance, first researcher operationalizes variables appropriate for each model. The sections that trail deliver the elucidation of the variables.According to the literature review the four CRM practices proposed in this research framework are described as follows:2.5.1. Independent VariablesIndependent variable is an inducement variable or involvement functions either within an individual or within atmosphere to distress his comportment. It is that factor which is restrained, deployed or designated by the alchemist to regulate its association to a detected spectacle. The succeeding are individualities of independent variables namely; they basis for alteration in other variables and they are continually attentive only when they distress another variable. The dependent variable is reply variable or yield. The dependent variable is that factor which is detected and restrained to decide the consequence of the independent variables. It is the variable that will alteration as a result of disparities in the independent variable. It is painstaking dependent because it’s worth be contingent upon the worth of theindependent variable. It epitomizes the magnitude of alteration in the person or condition studied. In this specific study, performance of bank is referred as dependent variable. In big businesses, there is a parting between possession and management, and in such businesses growing appears to be the supreme conceivable objective of managers while proprietors are most attentive in income enlargement (Baumol 1997; Penrose 1999). In this exacting study, customer relationship management can be elucidated by innumerable factors. But CRM the subsequent regulator variables also was recycled in this study to sifter out their consequence on disparities of dependent variable namely; key customer focus, customer relationship management organization, customer knowledge management & customer relationship management based technology.188.8.131.52. Key Customer FocusAccording to Shelthet al., (2000); Vandermerwe,( 2004), key customer focus encompasses a general customer-centric focus and unceasingly offering superior and added value through customized offers to the key customers. According to Armstrong and Kotler, (2004), intoday’s business atmospheres the decisiveaim of any key customer focus is to attain a thoughtful customer relationship that makes an organization anessentialcompanion to its supremeprofitable customers. The whole company sympathetic and support for key customerfocusinspire sales power to adoptive long-term customer relationships by posing morepersonalized services.Evelyn and Hamadallah (1996) specified that firms are betrothed in plentiful amounts oftransactions with meaningfullyvarious customers in terms of their needs, preferences andprospects. Also they reflect customer relationship management to some degree aschallenging. In order to diminish the CRM encounters, most of the firms have alternative to officialcustomer relationship management programs. CRM programs are mostlycategorized aseither database-driven mentions to distinguishing profitable sections through statistical practicesorcustomer-needs-driven mentions to the use of database to source information that welfares inthe development and retain of long-term relationships with key customers. 184.108.40.206. Customer Relationship Management OrganizationThe key thoughts in order to effectivelyestablish the whole company around customerrelationship management are as follows: organizational structure, organization-wide commitment of resources, and human resources management. CRM means crucialdiscrepancies in the way that firms are schematized and business advancements are absorbed (Hoffman and Kashmeri, 2000). As a result, firms should take into thought the organizational encountersintrinsic in any customer relationship management benefit (Agarwal et al. 2004).According to Anderson and Swaminathan (2005), strong focus on key customers intenselyenclosed throughout its CRM scheme, the entire company should be organized around indorsing, inspiring, motivating these appreciated relationships. The organizational procedure and configuration needs to be bendable and, if indispensable, reconvened to produce customer-centric values and improve coordination of customer-focused, cross-functional teams in order to appealpossible pool of customers. They specified that with scrupulousexertions by all organizational functions to persistentlydeliver a stream of value-rich movements and customer results. This permits the organizations and its sales force is safe that they can satisfy customers’ needs and improve customer relationships. The achievement of CRM plansdemand for commitment of resources at all stages and occupations of the firm. In summary, well systematized customer relationship management can be reflected as anoccupation of customers’ personal affection to a retailer, as well as their acuity of the company in relation to its contestants, and their alignment towards a long- term relationship with the retailer.220.127.116.11. Customer Knowledge ManagementAccording to Salomoun et al, (2005) in today’s modest world, knowledge is wellthought- out as one of the competitive issues in worldwide economy. It is necessary to think and cogitate for a business firms in order to appeal customer as another vitalissue in order to come in today’s energetic market effectively. Despite of this customer knowledge management can be defined as the scheme of achieving, allotting, and snowballing the customer knowledge among employees for creating profit to the organization and customers. With the purpose of refining the organizational efficiency and worth, assure from supplyingrequisite products and services to the customers and attain their gratification, it is obligatory to manage the organization’s knowledge about customers. Consequently, it can be decided that knowledge management is an integrative part of CRM.In today’s business situation firms are inspiring towards the implement of customer relationship management solicitations to track customer conduct to gain sympathetic into customer tastes, preferences and budding needs (Mithaset al., 2005). CRM solicitations help firms to collect and use customer knowledge through CRM solicitations in order to expedite customer employees to record pertinent information about each customer operation. Later information is occupied from employees can be managed and transformed into customer knowledge on the basis of information dispensation rules and organizational policies and businesses organizations can slice their stockpiled customer knowledge with customers to permit those customers to assist themselves by describing the service and its delivery to outfits their needs. However, a firm cannot be customer focused without knowing the needs and preferences of customers. Customer needs and preferences obsessed CRM tacticsentail unrecognized customer needs and preferences through the scrutiny of customer information.18.104.22.168. Customer Relationship Management-Based TechnologyAccordingto Abbott et al., (2001) to measure the CRM performance effectively, pertinent and consistent customer data is essential. Hence, to exactlycollect customer data technology has anenergetic role in CRM in addition to firm intelligence (Boyle, 2004). Indeed, the expansion and upgrading of information technology deliver the aptitude to collect, examine, and share customer information which will lead to a customer satisfaction, customer loyalty and retaining customers (Bulter, 2000). The CRM stresses for “information-wide strategies” which feat computer technologies in preserving relationships (Harding et al., 2004) such as: computer-aided plan or manufacturing, data warehouses, data mining and CRM solicitationschemes that permit the firms to offer supreme customization with improved quality at lower cost. Moreover, it aids the staff at all interaction points or trace points to aid the customers inanimproved way. Hence, many customerfocus actions would be unbearable without the use of asuitable technology (Sin et al., 2005).According to Zeblah, (2004), knowledge management is measured as one of CRM oriented actions which cannot be enhanced without manipulatingthe latest technology. And also CRM technology painstaking as one of the organizational resourcescommitments that serves as an input into the CRM process and is envisioned to improve firms’ aptitude to effectivelyphysique and preserve a supreme profit assortment for relationships with customer.2.5.2 Dependent Variables22.214.171.124 Company PerformanceIn today’s world as competition is snowballing at snowballing rate, businessesare able to providetheir offer and services that are personalized for every customer. Surely, these organizations can complete competitive advantage in sale and service marketing through modifying their mass services. At the moment, profitable businessesexertion to relocation their mass services to the individual customer. Market recital refers to the improvement of theorganizational upended in the market, upgrading of the customers’ perception of organization and its products, and upsurge in their loyalty toward organization (Martin, 2005). Company Performance Comprises of the Following Components:126.96.36.199.1 Sales GrowthAccording to Buttle, (2009), purifying profitability at the customer level is adisplay of exertion within the marketing discipline towards a less inclusive view of markets. On the other way, the single customer rather than segments of customers is progressivelyhassled as the unit of scrutiny. This survival has given birth to stickers such as ”one-to-one marketing” and ”micro marketing”. Understood from this perception, customer profitability is increasing as amomentous measurement in which each client can be defined. Astress on customer-level profitability can also be painstaking as a mirror image of marketing’s altering role within the firm. Animportantfeature of the new role is that ”marketing is toosignificant to be left to the marketing department”. For that purpose, in any case in marketingliterature, other departments are invigorated to deal with marketing matters. This can beimplicitprimarily in terms of monitoring cost, in the logic that marketingrecital measures are being announced in cost accounting literature and practice.However, Reichheld and Sasser (1990) specified that, declining customer defections by 5 percentcan upsurge profits by 25 percent to 85 percent. Lately, although the exact numbers mayfluctuate, experimental findings reliablydisplay anextensivehurdle in income and profits with asmall gain in customer retention (Oliver, 1999; Pfeifer and Farris 2004).188.8.131.52.2 Customer RetentionAccording to Ghavami (2006), customer retention has a substantial relation on firmprofitability and they conclude that “1% enhancement in retention can upsurge firm worth by5%”. In this case businesses are attentive in maximizing their lifetime worth in order toappreciate that customer retention is a key to snowballing long run firm profitability. Asympathetic of powers for customer’s defection can help companies in scheming customerrelationship management tactics and interferencesintended toward snowballing customerretention and elongating the lifetime of customers to upsurge market performance better thanbefore. Customer retention is the preservation of incessanttransaction relationships with customers over the long term.According to Buttle, (2009) optimistic retention tactics are tactics that lock the customer in by satisfying a customer for lasting in a relationship. These optimistic retention tactics include the following:•Customer delights, when customer anticipation exceeding, this is going further than what would frequentlygratify the customer. It means being reactive of what it usually takes to gratify the customer and what it might take to enjoy or enjoyablyamaze the customer.•Adding customer apparentworth: – companies can discover ways to generate additional worth without producing additional costs. If cost is agonized accordingly the value-added may be anticipated to recuperate those costs. Worth can be added through programs such as, loyalty systems, customer clubs and sales advertisings.184.108.40.206.3 Customer SatisfactionAccording to Hansemark and Albinsson, (2004), the mainobjective of business organizations is customer satisfaction, since customer satisfaction affects customer retaining and companies’ market share, profitability, sales volume. However, customer satisfaction is amultifacetedconcept which has been defined in numerous ways (Hair, et al 2003: Fournier et al, 1999: Sheth and Sisodia, 2001).According to Hair, et al (2003), customer satisfaction is defined as” customer’s reply to aproduct or service in terms of the degree to which ingesting meets expectations”. Definitely, customer satisfaction is critical for fruitful application of the marketing perception. Numerous organizations mission statements and marketing tactics are intended around the aim of snowballing customer satisfaction (Fournier et al, 1999). In employing customer relationship management, a firm trails to launch and preserve a long-term relationship with customers based on snowballing full customer satisfaction as contrasting to transaction-specific customer satisfaction.AccordingtoSheth and Sisodia (2001) fruitful customer relationship managementemploymententails a dedicated organizational wide in order to emphasis on importantcustomers in personalized marketing exertions to fully apprehend and achieve their needs and wants onapersistent basis. The seller’s whole organizational structure should be placed oncustomers, often with customer-focused teams intended to generate fully satisfying customerpractices. According to Stefanouet al, (2003), fruitful customer relationshipmanagement actions must improve customer satisfaction by unceasinglyacclimatizing to thegrowing needs and wants of customers.According to Kotler and Armstrong (2004), the greater customer relationship capability will be achieved when the four dimensions of CRM work in coordination.INDEPENDENT VARIBLE DEPENDANT VARIBLECRM Practices in terms of + + ++Figure 1. Conceptual frameworks to assess customer relationship management practices and its effect on company performance. Source Sayed H, (2011).CHAPTER THREE3. METHODOLOGY OF THE STUDY3.1. Research DesignThe studyused both descriptive and explanatory research design by mixing quantitative and qualitative approaches using structured questionnaires and generating statistics through standard statistical analysis techniques of SPSS-20.The purpose of quantitative research is to make explanations and predictions that can be generalized to other persons. On the other hand qualitative research is used for better understanding of complex situations which is sometimes explanatory in nature.3.1.1. Quantitative Research ApproachesQuantitative research is grounded in the post-positivism knowledge claim that primarily reflects the scientific method of the natural sciences. The researcher gathers data from the real world setting and then analyses the data statistically to support or reject the hypotheses (Robert K.Yin, 1994). Researchers who adopt a more deductive approach use theory to guide the design of the study and the interpretation of the results. In line with this, the overall objective of quantitative research is to test or verify a theory, rather than to develop one. Therefore, the theory offers a conceptual framework for the entire study, and it also serves as an organizing model for the entire data collection procedure. Quantitative techniques as an attempt to test a hypothesis by incorporating it into the research design and responding to it by measuring its strength and weaknesses that give numerical measurements to the data collected. They are also capable of being accurately described by a set of rules or formulae which then make their definition (if not always their interpretation) unambiguous and independent of individual judgments. Quantitative researchers put their emphasis on procedures, methodologies and statistics. As a result, it relies on statistical techniques aided by computational algorithms and software packages for analysis the problem under study.Quantitative research is one in which the investigator primarily uses positivist claims for developing knowledge and its strategies of inquiries are associated with experimental and survey research methods. (Robert K.Yin, 1994) mentioned that experimental research seeks to determine if a specific treatment influence an outcome. This impact is assessed by providing a specific treatment to one group and withholding it from another and then determining how both groups scored on an outcome. Therefore, pure experiment enables the researcher to manipulate an independent variable in order to see the effect on the dependent variable with the random assignment of subjects to treatment conditions. Whereas, survey research provides quantitative or numeric description of research trends attitudes or opinions of a population by studying a sample of population. It includes cross sectional (data will be collected in one point in time) and longitudinal studies (data will be collected through time with different interval) using questionnaires, structured interviews and documentary reviews for data collection, with the intent of generalizing from the sample to the population.3.2. Data Type and SourceFor the appropriate achievement of the objectives of the study; the researcher usedprimary data source. Primary data was collected through structured closed-ended questionnaire from employees of the bank, and through structured interview with branch managers’ of the bank. The questionnaires aredesigned in such a way that is understandable to respondents, reduce bias and offer data that can be statistically scrutinized. The variables areattitudinal and measured using five point Likert scale with response options ranging from to strongly disagree, disagree, neutral, agree and strongly agree. The Likert scale method waspreferred to make questions interesting to respondents and there by enhance their cooperation, ultimately ensuremaximum response rate (Robson Colin, 2002).3.3. Data CollectionInstrumentIn order to collect the data from respondents, the questionnaire with an introduction which explain the purposes of the study were distributed in person. Additional follow up and clarification wereprovided to some respondents, as require, to ascertainappropriate understanding wasachieved.Methods of data collection relatively dependence on structured questionnaires prepared bySwaminath (2004) which was prepared in the form of Likert five scales. However, tomeasure CRM dimensions on company performance,itwas attemptedtomodify in relation to thestudy for that matter andatest hasbeen made for the reliability of the instrument by using Cronbach’s alpha and to insure the validity of the instrument the researcher made pre pilot, pilot tests and was consult with two local academicians and three CRM practitionersand also check the dependability. For thepurpose of data collection, closed-ended structured questionnaires and structured interviewswas used. Closed-ended questionnaires have beenprepared on thebasis of customer relationship management dimensions and banks company performance. Thus closed endedquestionnaires helps to avoid pressure upon the respondents in any direction and better be able to obtain the required data in the study area.The questionnaire is divided into two sections. The first sectioncontains thedemographic characteristics of the respondents to provide information about their gender, age, year of service or experience and education level.The second section of the questionnaire hasdesigned to enable to gather information about effectiveness of CRM practices on company performance in selectedCBE branches and also this questionnairewerecontainstotal 35 questions. From these questions , 6 questions were considered to evaluate key customer focus,7 questions wereconsidered to evaluate CRM organization,10 questions were considered to evaluate customer knowledge management,8 questions were considered to evaluate CRM based technology and 4 questions were considered to evaluate company performance. For all questionnaire included in section 2, the respondents was requested to indicate their feeling on a five point Likert scale type to measure weight as follows: 1= strongly disagree, i.e., very much dissatisfied with the case described, 2=disagree, i.e., not satisfied with the case described, 3=neutral, i.e., uncertain with the case, 4=agree, i.e., feeling alright with the case described, and 5= strongly agree, i.e., very much supporting the case described.3.3.2 Sampling FrameFor this study the sampling frames were the list of 365 target populations of CBEbranches (Abaymado, Bahir dar, Bezawit, Donaber, Gishabay, Shimbet& Tana) employees from which the required number of sample size were drawn, which was available in the commercial bank of Ethiopia branches in Bahir Dar city administration.3.3.3. Sampling UnitThe sampling units for this study were the individual bank employees comprises in CBE branches of Bahir Dar City administration depending on their responsibility and experience in their bank.3.4. Sampling TechniquesAfter identifying the number of respondents by using stratified sampling technique in each seven branches. The researcher dispatched the questionnaires using one of the probabilistic samplingtechniques called simple random sampling technique. Finally supplementary data’s were gathered from branch managers of CBE through an interview.Therefore, from the selected commercial banks of Ethiopia branches, for interview branch managers and for questionnaire branch employees areassumed to be selected to conduct the research.3.5. Target Population and Sample sizeThe population of this study includes all employees of seven branches of CBE inbahirdarcity administration. In the determinations of sample size the three criteriaare veryimportant to gather the required data from sample respondents. Thesewereincluded the level ofprecision, the level of confidence or risk and the degree of variability in the attributes beingmeasured that enable to determineappropriate sample size (Miauous;Michener, 1976). Therefore, the total numbers of employees in commercial bank ofEthiopia in Abaymado branch (39 employees), Bahir dar branch (97 employees), Bezawit branch (43 employees), Donaber branch (35 employees), Gishabay branch (44 employees), Shimbet branch (40 employees) and Tanabranch (67employees),therefore, the total population for this study were365CBE employees. To ensure the validity of the findings, the study intended to use adequate sample size. In order to determine the sample size of the population, the researcher used the following sample size determination formula developed by Taro Yamane (1967) It is calculated as follows.n =N/(1+N(e)2)Where n is sample size, Nis the population size, and e is the level of error term. The researcher determined to accept a 5% sampling error and wanted to be 95% confidential with the findings of this study.The sample size has been attainedas follows:-n=365/(1+365(0.05)2)n=191Proportional sample size from each stratum is calculated by using the following formula:ni= (n * Ni)/NWhere ni= number of sample size for each branches, Ni= the total number of employees in each branches, N=thetotal number of employees in the selected branches (7branches), n= the total number of sample size forselected branches.Accordingly, the table below shows the proportionate sampling for each branches based on the above given formula.Table 1: Proportionate sample distribution for each branches.No. List of the selected sevenCBE branches in Bahir dar city administration. Total number of employees in each CBE branch Total number of sample size were taken in each CBE branch1 Abaymado branch 39 202 Bahir dar branch 97 513 Bezawit branch 43 234 Donaber branch 35 185 Gishabaybranch 44 236 Shimbetbranch 40 217 Tana branch 67 35 Total 365 191By taking the above table into consideration, only 191 respondents have been selected from the total members of these seven selected CBE branches employees using proportionately. Having selected such number of respondents, questionnaires wasdistributed by using simple random sampling to get each respondent from each CBE branch. This sampling technique was chosen as it gives eachmember of population fair or equal chance of being selected.3.6. Methods of Data AnalysisIn this research, raw data was changed into a data structure that enabled to generate meaningful and useful bits of information.All hypotheses was tested with the aid of the statistical package for social science (spss-20) software. In order to analyze the data the two sets of statistics: descriptive and inferential statistics wereused. Descriptive statistics summarized and explained quantitative information in the form of frequency distribution and measures of central tendency, whereas inferential statistics was used to make conclusions.During the data analysis frequency,table, percentage,histogram, normality ; reliability were used to test for significance between the observed and expected distribution of data. While Pearson correlationwas used to measure the direction and strength of the relationship between the research variables.Multiple Regression AnalysisMultiple regression analysis was used to investigate the effect of customer relationship management practices (key customer focus, customer relationship managementorganizations, customer knowledge management, and CRM based technology) on company performance.Regression FunctionsThe equation of multiple regressions on this study was generally built around two sets of variable, namely dependent variables (company performance) and independent variables (key customer focus, customer relationship managementorganizations, customer knowledge management, and CRM based technology). The basic objective of using regression equation on this study was to make the researcher more effective at describing, understanding, predicting, and controlling the stated variables.Descriptive statistics in the form of frequencies, arithmetic means and standard deviationswere computed for the various dimensions of demographic profile of respondents and their perception on CRM practices.The analysis of the data were presented using the following data presentation tools: such as percentages, tables, figure, frequencies, arithmetic means, standard deviations, histogram, normality ; reliability, correlation and inferential statistics along with sufficient interpretationsIndependent variables Dependent variablesKey Customer Focus Company PerformanceCRM Organizations Customer Knowledge ManagementCRM Based Technology Regress Company Performance on the Customer Relationship Management Dimensions.Y = ?0 + ?1X1 + ?2X2 + ?3X3 + ?4X4 + ?Where Y is the dependent variable- company performanceX1, X2, X3, and X4are the explanatory variables.?0is the intercept term- it gives the mean or average effect on Y of all the variables excluded from the equation, although its mechanical interpretation is the average value of Y when the stated independent variables are set equal to zero.?1, ?2, ?3, and ?4refer to the coefficient of their respective independent variable which measures the change in the mean value of Y, per unit change in their respective independent variables.? is the error tem.3.7. Reliability and Validity Test3.7.1. Reliability TestReliability is defined as be fundamentally concerned with issues of consistency of measures (Bryman and Bell, 2003). According to Hair, et al., (2006), if ? is greater than or equal to 0.6, it means that it has high reliability and if ? is smaller than 0.6, then it implies that there is low reliability.To test the reliability of the instrument Cronbach’s alpha was used and the result found were greater than 0.6 for each independent variables namely key customer focus, customer relationship management organizations, customer knowledge management, and CRMbased technology respectively and also dependent variablesnamely company performance. 3.7.2.Validity TestAccording to Leedy et al., (2010), validity of a measurement instrument is defined as the extent to which the instrument measures what it is actually intended to measure. Moreover, to insure the validity and reliability of the instrument the researcher made pre pilot, pilot tests and had consulted with two local academicians and three CRM practitioners and adjustments were made accordingly. Pilot test was done for ten respondents of 191 bank employees and the instruments (questions) internal consistency was checked according to their related groups.Therefore, the researcher believed that the adapted instruments have high level of validity and reliability. 3.8. Limitation of the StudyEvery research exertion has its own delimitation that limits the solicitation of conclusions to be draw from analysis. There was external or uncontrollable variables that hadan influence on the qualities of the study output in addition to the limitations of the research design it had its own impact. Moreover, lack of adequate variables was limited in the study output, shortage of latest reference books and literature on the area in Ethiopian content was narrowed the study output and also some respondents were not pay more attention to complete filling the questionnaires and to conduct an interviews. Some respondents were not punctual in returning the questionnaireson time. Lastly, in general the most important factor that limited the study output was shortage of time.CHAPTER FOUR4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION4.1. IntroductionThis chapter presentsanalysis & interpretation of the final results and the process through which the results were obtained. First, background information of respondents are presented. Finally, the statistical methods of analysis are discussed, which included a descriptive analysis, multiple regression analysis and correlation analysis through SPSS version 20. 4.2. Descriptive Statistics and Respondents ProfileDescriptive statistics in the form of frequencies, arithmetic means and standard deviations are computed for the various dimensions of demographic profile of respondents and their perception on CRM practices. In this study both descriptive statistic and regression analysis wereused to analyze the data. The descriptive statistics utilized in this research used to analyze the demographic data included frequency, percentages,arithmetic means and standard deviations. Inferential analysis is concerned with the various test of significance for testing ofhypothesis, normality, autocorrelation, multicollinearity in order to determine with what validity data can be said to indicate some conclusion(s). The data collection process took about one months,with numerous reminders sent to each of respondents. In order to obtain a larger response rate. One hundred ninety one (191) questionnaires distributed to respondents, all ninety one (191) questionnaires were returned within one month. The data collected from all the returned questionnaire wereentered into SPSS (Statistical package for social science software) version 20 for analysis. The data was sorted to group questions according to applicable constructs under test. Finally correlation and regression analysis were performed. In this study, a multiple regression analysis was performed by using all the discrete variables (dependent and independent)variables available in the dataset. The location of the study was commercial bank of Ethiopia branches (Abaymado, Bahir dar, Bezawit, Donaber, Gishabay, Shimbet& Tana) inbahirdarcity administration. 4.2.1. Descriptive Statistics Result for Respondents220.127.116.11.Demographic Profile of RespondentsOne hundred ninety one (191)questionnaires were distributed to the respondents and allquestionnaires were collected with a response rate of 100%. The demographic characteristics include: sex, age, marital status, level of education and experience. This aspect of the analysis deals with the personal data of respondents to the questionnaires given to them. The demographic profile of the respondents which is considered crucial for this study is presented as follows.Table 2: Sex Profile of Respondents. Sex Frequency Percent Valid Percent Cumulative PercentValid Male 139 72.8 72.8 72.8Female 52 27.2 27.2 100 Total 191 100 100 Source: Own survey datacomputation andoutcomewith SPSS, 2018.Out of the 191 respondents 139(72.8%) of them are males and 52(27.2%) are females. The data describes that the number of female workers in commercial bank of Ethiopia in seven branches of bahirdar city administration is very few.Table 3:Frequency of Age of Respondents Sex Frequency Percent Valid Percent Cumulative PercentValid Less than 25 36 18.8 18.8 18.8Between 26-30 108 56.5 56.5 75.4Between 31-40 39 20.4 20.4 95.8Between 41-50 7 3.7 3.7 99.551 and above 1 0.5 0.5 100.0Total 191 100.0 100.0 Source: Own survey datacomputation andoutcomewith SPSS, 2018.When we see the age proportion of workers in CBE in seven branches inbahirdar city administration 56.5% of them are between the ages of 26 to 30, 20.4% of them are between the ages of 31 to 40, 18.8 % of them are less than the ages of 25,3.7% of them are between the ages of 41 to 50 and 0.5 % of them are above the ages of 50 from the data we can conclude that the majority of CBE workersin sevenbranches in bahirdar city administration are at their young stage which has a great contribution for companies productivity.Table 4:Marital Status Profile of Respondents through Frequency Table. Marital Status Frequency Percent Valid Percent Cumulative PercentValid Married 84 44.0 44.0 44.0 Single 100 52.4 52.4 96.3Divorced 7 3.7 3.7 100.0Total 191 100.0 100.0 Source: Own survey datacomputation andoutcomewith SPSS, 2018.As illustrated from the above table the marital status level of respondents shows that 44.0% of them are married, 52.4% of them are single, 3.7% of them are divorced. From these we can conclude that since most of respondents are single, the bank is changing the employee’s work place in easily way. On another hand as most of the respondents are married it implies that they can understand their responsibility.Table 5:Level of Education Profile of Respondents through Frequency Table.Education level Frequency Percent Valid Percent Cumulative PercentValidDiploma 10 5.2 5.2 5.2 Degree 140 73.3 73.3 78.5Masters and above 41 21.5 21.5 100.0Total 191 100.0 100.0 Source: Own survey datacomputation andoutcomewith SPSS, 2018.As illustrated from the above table the educational level of respondents shows that 5.2% of them are completed diploma, 73.3% of them are degree graduates, 21.5% of them are master’s degree holders and above. From these we can conclude that since most of respondents are college and university graduates who are 73.3% and21.5% respectively, the bank is creating employment opportunity for new graduates. On another hand as most of the respondents are educated it implies that they can understand the questions forwarded.Table 6:Level of Experience Profile of Respondents through Frequency Table.Experience Frequency Percent Valid Percent Cumulative PercentValidFive Years or Less 137 71.7 71.7 71.7From 6-10 years 49 25.7 25.7 97.4From 11-15 years 2 1.0 1.0 98.416 and Above years 3 1.6 1.6 100.0Total 191 100.0 100.0 Source: Own survey datacomputation andoutcomewith SPSS, 2018. As illustrated from the above table the experience level of respondents shows that 71.7% of them are five years or less, 25.7% of them are from 6-10 years’ experience, 1.0% of them are from 11-15 years’ experience, 1.6% of them are from 16 and above years’ experience. From these we can conclude that since most of respondents are not more experienced employees who is 71.7%, 25.7% most of respondents are more experienced employees. On another hand as less number of the respondents are more experienced it implies that they can understand the questions forwarded and profitable employees.4.2.2. Questionnaire Result for Likert Scale.The purpose of this section is to understand the agreement and disagreement of practical implementation of CRM practices in seven CBE branches in bahirdar city administration. Therefore, data related to each of the CRM practices: key customer focus (KCF), customer relationship management organizations (CRMO), customer knowledge management (CKM), and customer relationship management – based technology (CRMBT), company performance (CP) are summarized and the results are presented in the same format as in the questionnaire. A total of 191 copies of questionnaires were sent to bank respondents. From these respondents, 191 usable questionnaires were obtained (100 percent response rate). Table 7:Descriptive Measures of Respondents are presented in Descriptive Statistics N Minimum Maximum Mean Std. DeviationKCF 191 1.50 5 3.9555 0.73642CRMO 191 2.00 5 3.8983 0.74758CKM 191 2.00 5 3.8942 0.74863CRMBT 191 1.50 5 3.8534 0.73355CP 191 1.75 5 3.9607 0.73298Valid N (listwise) 191 Source: Own survey datacomputation andoutcomewith SPSS, 2018.4.2.2.1. Key Customer FocusEmployeesmean responses for all Question1-6 (7 items) were 3.9555 and the standard deviations were 0.73642. The standard deviations (73.64%) for bank employee suggest that there existed variability in ratings of the respondents. The employees’ mean responses were greater than 2.5 (average) in six of the questions indicating that bank employee of respondents viewed the customer focus as high level of support or contribution for bank employee and there is a good relationship between customer and bank employees. 18.104.22.168. Customer Relationship Management OrganizationsQ7 – Q13 (7 items) in the questionnaires distributed to bank employee relate to the customer relationship management organization parameter. Employee’s mean responses for all Questions were 3.8983 and thestandard deviations were 0.74758.The mean responses of the employee to the seven questions under customer relationship management organization were generally agree, the seven questions obtained mean responses of greater than 2.00(average) for employee. The standard deviations of the responses were 74.76%, which indicates that the respondents’ perceptions were differing to one another. The mean result implies that there is the customer relationship management organization between the bank employee and they have a sufficient skill for them as well as attractive customer relationship management plan preparation. 22.214.171.124. Customer Knowledge ManagementA Q14 – Q23 (10 items) in the questionnaires distributed to bank employees relate to the customer knowledge management parameter. Employees mean responses for all questions were 3.8942 and thestandard deviations were 0.74863.The mean responses of the employees to the ten questions under customer knowledge management were generally agree, the ten questions obtained mean responses are greater than 2.00(average) for bank employees. The standard deviations of the responses were 74.86%, it means that value of the customer knowledge management can deviate from its mean to both sides by 74.86 percent .The majority of respondents mean indicated their agree to the questions provided on the overall customer knowledge management in the CBE. The mean responses of the employees to the questions implying high customer knowledge management and to those questions which referred to as the bank employees are free from other gap of skill. 126.96.36.199. Customer Relationship Management – Based TechnologyA Q24 – Q31 (8 items) in the questionnaires distributed to bank employees relate to the customer relationship management – based technology parameter. Employees mean responses for all Questions were 3.8534 and the standard deviations were 0.73355.The mean responses of the employees to the eight questions under customer relationship management – based technology were generally agree, the eight questions obtained mean responses of greater than 2.00(average) for bank employees. The standard deviations of the responses were 73.36%, it means that value of the customer relationship management – based technology can deviate from its mean to both sides by 73.36 percent .The majority of respondents mean indicated their agree to the questions provided on the overall customer relationship management – based technology in the CBE in sevenbranches in bahirdar city administration. The mean responses of the employees to the questions implying high based technology and to those questions which referred to as the employees are free from other traditional system. 188.8.131.52. Company PerformanceQ32 – Q35 (4 items) in the questionnaires distributed to bank employees relate to the company performance parameter. Employees mean responses for all Question was 3.9607 and thestandard deviations were 0.73298.The mean responses to those questions in employees groups were greater than 3.00 (average) and the standard deviations (73.3%)were indicated for bank employees suggest that there existed variability in ratings of the respondents. The questionnaire mean responses revealed that the company performance is medium as might be desired to attain a company performance so which indicates that still there is a gap between company performances.4.3. Reliability Tests of the InstrumentPilot study (preliminary test) was carried out using convenient sampling method in the CBE in seven branches of bahirdar city administration having the same characteristics with the participants of the main study. The advantage of doing a pilot study include; it helps to detect potential defects in the measurement procedures, it assists in identifying ambiguous items, and it allows the researcher to become aware of nonverbal behavior that may occur due to the wording question. Therefore, the researcher tried to insures the reliability and validity of the questionnaire. To measure the reliability of the questionnaire, the researcher applied a preliminary reliability test of ten respondents from 191 bank employees. According to different statistic book a reliability coefficient exceeding 0.6 for any test or scale was acceptable reliability coefficient. Therefore, as we can see the (Cronbach’s alpha) indicates that the questionnaire administered in this study, four items are reliable and the remaining items are highly reliable.Table 8:Reliability AnalysisVariables No. Of Items Cronbach’s AlphaKey Customer Focus 6 0.929Customer Relationship Management Organization 7 0.924Customer Knowledge Management 10 0.934Customer Relationship Management – Based Technology 8 0.890Company Performance 4 0.788Source:Own survey datacomputation andoutcomewith SPSS, 2018.From the above table 8, it is seen that the reliability value was estimated to be ? = 0.788 – 0.934 between the scale. If the above calculated reliability values are compared with the standard value alpha of 0.6 advocated by Cronbach’s, then it can be safely assumed that the scales used by the research are reliable for data analysis. 4.4. Normality TestDistribution of the data is another issue in this research, whether it is normal/or not. To check the distribution of score is normal, we need to look at the values of skewness in the SPSS output. Positive value of skewness indicates too many low scores in the distribution, whereas negative values indicate a build-up of high scores (Field, 2009). Skewness measures the degree to which cases are clustered towards one end of an asymmetry distribution. In general, the further the value of skewness is from zero, the more likely it is that the data are not normally distributed (Field, 2009). In a normal distribution, the values of skewness are 0. If a distribution has values of skew above or below 0 then this indicates a deviation from normal (Field, 2009).As we have seen from the following table 9, the skewness approaches or around to Zero and it is almost normal. All variables were found to be normal.Table 9:Tests of NormalityCompany Performance KCF CRMO CKM CRMBTSkewness -.795 -.521 -.493 -.693Std. Error of Skewness .176 .176 .176 .176Source: Own survey datacomputation andoutcomewith SPSS, 2018.Frequency distributions come in many different shapes and sizes. It is quite important, therefore, to have some general descriptions for common types of distributions. In an ideal world our data would be distributed symmetrically around the center of all scores. As such, if we drew a vertical line through the center of the distribution then it should look the same on both sides. This is known as a normal distribution and is characterized by the bell-shaped curve. This shape basically implies that the majority of scores lie around the center of the distribution (so the largest bars on the histogram are all around the central value). Figure 2. Normal distribution of the data4.5. CorrelationTable 10:Correlation between the independent variables (key customer focus (KCF), customer relationship management organizations (CRMO), customer knowledge management (CKM), and customer relationship management – based technology (CRMBT)) with dependent variable (company performance).Correlations 1 2 3 4 5CPPearson Correlation 1 Sig. (2-tailed) N 191 KCFPearson Correlation .822** 1 Sig. (2-tailed) .000 N 191 191 CRMOPearson Correlation .740** .777** 1 Sig. (2-tailed) .000 .000 N 191 191 191 CKM Pearson Correlation .770** .783** .781** 1 Sig. (2-tailed) .000 .000 .000 N 191 191 191 191 CRMBT Pearson Correlation .797** .709** .817** .783** 1Sig. (2-tailed) .000 .000 .000 .000 N 191 191 191 191 191**. Correlation is significant at the 0.01 level (2-tailed).Source: Own survey datacomputation andoutcome with SPSS, 2018.4.5.1. Correlation between Key Customer Focus ; Company PerformanceAs indicated in table 10 the statistical result which equals 0.000 is well below the significance value of 0.05.Therefore, there is no evidence to reject the hypothesis1 “there is a positive relationship between key customer focus and company performance in commercial bank of Ethiopia in seven branches ofbahirdar city administration” in favor of the hypothesis1 was supported. Accordingly, it is evident that there is statistically significant relationship between the independent variable (key customer focus) and the dependent variable (company performance).The calculated correlation coefficient 0.822 shows that there was a very strong positive relationship between the key customer focus and company performance in commercial bank of Ethiopia in seven branches of bahirdar city administration, as correlation coefficientsbetween .00 and .40 are considered weak (Diamantopoulos et al., 2000). However, the correlation coefficients are more than .40 which is considered as strong correlations.4.5.2. Correlation between CRM Organization and Company PerformanceFrom table 10 the statistical result which equals 0.000 was less than the critical value of 5% Significance: as a result, the hypothesis2 “there is a positive relationship between customer relationship management organization and company performance in commercial bank of Ethiopia in seven branches ofbahirdar city administration” was accepted. This implies that there was a significant relationship between customer relationship management organization and company performance. The calculated correlation coefficient 0.740 shows that there was a very strong positive relationship between the customer relationship management organization and company performance in commercial bank of Ethiopia, as correlation coefficients are more than 0.40 are considered strong (Diamantopoulos et al., 2000).4.5.3. Correlation between CKM and Company PerformanceFrom table 10 the statistical result which equals 0.000 was less than the critical value of 5% significance: as a result, the hypothesis3 “there is significant relationship between customer knowledge management and company performance in commercial bank of Ethiopia in seven branches of bahirdar city administration” was supported. This implies that there was a positive relationship between customer knowledge management and company performance. The calculated correlation coefficient 0.770 shows that there was a very strong positive relationship between the customer knowledge management and company performance in commercial bank of Ethiopia in seven branches of bahirdar city administration, as correlation coefficients are more than 0.40 are considered strong (Diamantopoulos et al., 2000).4.5.4. Correlation between CRM – Based Technology and Company PerformanceFrom table 10 the statistical result which equals 0.000 was less than the critical value of 5% significance: as a result, the hypothesis4 “there is significant relationship between customer relationship management – based technology and company performance in commercial bank of Ethiopia in seven branches of bahirdar city administration” was supported. This implies that there was a positive relationship between customer relationship management – based technology and company performance. The calculated correlation coefficient 0.797 shows that there was a very strong positive relationship between the customer relationship management – based technology and company performance in commercial bank of Ethiopia in seven branches of bahirdar city administration, as correlation coefficients are more than 0.40 are considered strong (Diamantopoulos et al., 2000).4.6.Multicollinearity TestMulticollinearity exists when there is a strong correlation between two or more predictors in a regression model. Multicollinearity poses a problem only for multiple regressions because it involves more than two predictors. Perfect Collinearity exists when at least one predictor is a Perfect linear combination of the others. According to different statistical books, one way of identifying multicollinearity is to scan the correlation matrix of all of the predictor variables and see if any correlate very highly (correlation of above 0.80 or 0.90).Another method is to produce a collinearity diagnostics with the use of SPSS, and one of which is the variance inflating factor (VIF). The VIF indicates whether a predictor has strong linear relationship with the other predictor(s). Although there are no hard and fast rules about what value of the VIF should be a cause for concern, Field (2000) suggests that value of 10 is good value at which to worry. Field (2000), and suggest that if the average VIF is greater than 1, then multicollinearity may be biasing the regression model. Related to the VIF is the tolerance statistics, which is a reciprocal of VIF (1/VIF). Such values below 0.2 are worthy of concern. Considering the regression model for this study correlation matrix of all of the predictor variables less than or equal to 0.80 or 0.90 and the tolerance statistics values are all below 1 (see tables 10 and 11) as such no multicollinearity is observed in this model. 4.7. AutocorrelationsAutocorrelation is adjacent residuals of any two observations not being independent of each other or correlated. For any two observations the residual terms should be uncorrelated (or independent). This eventually is sometimes described as a lack of autocorrelation. This assumption can be tested with the Durbin-Watson test, which tests for social correlation between errors. Specifically, it tests whether adjacent residuals are uncorrelated. The test statistics for this can vary between 0 and 4 with a value of 2 meaning that the residuals are uncorrelated (Field, 2009). In our model the value of the test is closer to 2 (1.575). So it can be safely assumed that there is no problem of autocorrelation (see tables 12).4.8. Multiple Regression AnalysisIn this study, multiple regression analysis was carried out to get the predictive value of the constructs considered. Since the model is developed in such a way that each construct is being affected by other constructs, it is necessary to carry out a separate regression analysis against each variable which are considered to be affected by other variables. This was basically made to determine the linear combination of the constructs. The following subsections present the results of multiple regression analysis.Table 11:CoefficientsCoefficientsaModel Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tolerance VIF1 (Constant) .255 .151 1.687 .093 KCF .491 .062 .493 7.943 .000 .317 3.153 CRMO -.072 .069 -.074 -1.041 .299 .245 4.077 CKM .110 .066 .113 1.680 .005 .273 3.664 CRMBT .419 .066 .419 6.334 .000 .279 3.581 Dependent Variable: CPSource: Own survey datacomputation andoutcome with SPSS, 2018Table 11 shows the Beta Coefficients that present the contributions or positive or negative relationship of each variable to the model. The t and p values showed the influence of the independent variables on the dependent variable. From this, it is clear that the key customer focus and customer relationship management based technology had the highest affecting on company performance comparingwithcustomer relationship management organization, and customer knowledge management constructs. According to coefficient results, all predictors, except customer relationship management organizationare positively and significantly related to dependent variables. Thus, the model for predicting perceived company performance becomes: The result of model is CP = 0.255+ 0.491 kcf – 0.072crmo +0.110 ckm + 0.419 crmbt + ?Where: CP= Company Performance, KCF= Key Customer Focus, CRMO= Customer Relationship Management Organization, CKM= Customer Knowledge Management,CRMBT= Customer Relationship Management Based Technology.The b-values (beta coefficient) tell us about the relationship between the outcome and each predictor. If the value is positive we can tell that there is a positive relationship between the predictor and the outcome, whereas a negative coefficient represents a negative relationship. For these data all predictors, except customer relationship management organization have positive b-values indicating positive relationships. So, there is a positive relationship between the predictors (key customer focus, customer knowledge management and customer relationship management based technology) and an outcome (company performance) since the value of beta coefficient is positive. As key customer focus, customer knowledge management and customer relationship management based technology are good, company performance is also improved; whereas, customer relationship management organizationhas a negative b-values indicating negative relationships to the outcome. As customer relationship management organizationis good, company performance is not improved.Table 12: Model SummaryModel SummarybModel R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson1 .879a .772 .767 .35353 1.575a. Predictors: (Constant), CRMBT, KCF , CKM , CRMO b. Dependent Variable: CPSource: Own survey datacomputation andoutcomewith SPSS, 2018.From Table 12, It can be seen that themultiple R (correlation) value of 0.879 (87.9%) indicates a highly positive relationship between the dependent and independent variables andR Square value for the model showed that 77.2% of the dependent variable in the model can be predicted by the independent variables. The remaining 22.8 % of the dependent variable is explained by other variables which are not depicted in the model. Moreover, adjusted R square value for the model shows that 76.7% of goodness of fit of the model is moderate.Table 13:ANOVAANOVAModel Sum of Squares df Mean Square F Sig.1 Regression 78.834 4 19.708 157.690 .000b Residual 23.247 186 .125 Total 102.080 190 a. Dependent Variable: CP b. Predictors: (Constant), CRMBT, KCF , CKM , CRMO Source: Own survey datacomputation andoutcomewith SPSS, 2018Table 13, Presents the ANOVA report on the general significance of the model. As p is less than 0.05, the model is significant. Thus, the combination of the independent variables (key customer focus (KCF), customer relationship management organizations (CRMO), customer knowledge management (CKM), and customer relationship management – based technology (CRMBT)) significantly predicts the dependent variable (company performance) (F=157.69; p ; 0.05.4.9.Hypothesis TestH1: Key customer focus has a positive and significant effect on company performance.Based on the regression analysis of the above modelin table 11, revealed that key customer focushas a positive and significant effect on company performance with a beta value (beta = .491), at 95% confidence level (p 0.05). Thereby rejecting hypothesis 2. The regression result does not support that hypothesis. It indicates that customer relationship management organization has a negative and insignificant effect on company performance.H3: Customer knowledge management has a positive and significant effect on company performance.Based on the regression analysis of the above modelin table 11, revealed that customer knowledge managementhas a positive and significant effect on company performance with a beta value (beta = .110), at 95% confidence level (p ; 0.05). Hence, hypothesis 3was supported. It implies thatcustomer knowledge management has a positive and significant effect on company performance.H4: Customer relationship management – based technology has a positive and significant effect on company performance.Based on the regression analysis of the above modelin table 11, revealed thatcustomer relationship management – based technology has a positive and significant effect on company performance with a beta value (beta = 0.419), at 95% confidence level (p