CHAPTER ONE

INTRODUCTION

In the introductory chapter, background of the study, problem statement, and research questions of the
study, operational definitions, significance, scope, limitation and organization of the study will discussed.

1.1 Background of the study

It is the desire of every business organization to achieve its stated objectives. These objectives may
incorporate profit maximization, increase in sales, expansion, growth, product accessibility,product
awareness, customer satisfaction etc. However, profit maximization serves as the backbone of business
objectives. In a similar view, the degree of maximization of profit depends onthe level of customer
satisfaction. The Customer Relationship Management System (CRM) is a strategy but a day-to-day
philosophy of working. CRM for bank executives is the key to their success in the market, the total of all
the tools, technology and processes that manage, improve and facilitate sales, but also support
customer relationships. Banks, in addition to maximizing profit, they aim to create a stable relationship
with their clients, by identifying their preferences and competing in real time. Almost all of the banks
under review used the same CRM process but understood with different development strategies.
( GAZMEND NURE,2020). One of the sectors in which competition is experienced intensively is that of
banking industry.

Banks are the finance institutions that meet the economic needs of the individuals and businesses and
that perform such economic activities as collecting bank deposits, giving credits, providing capital ,and
etc. In recent years there have appeared important developments in the understanding of modern
banking. With the transition to automation, customer satisfaction ,profit maximization and
management of customer relationships have taken place among the subjects spoken of in the banking
sector. The role of CRM is reflected in the effective implementation of the company's business
strategy and objectives through the prism of the needs and demands of clients. Since the survival
and further development of banks depend on providing of added values, their orientation is directed
to deeper business cooperation with the customers. Introduction of the CRM in the banks imposes
itself as a need, since the researches are showing that the bank customers are increasingly more
dynamic, and increasingly less loyal inorder to successfully apply the CRM strategy in the banks, the trust
factor is of crucial importance. In the sense, this represents the ability to create long-term loyal
customers, where the sense of closeness and affiliation will develop. Most frequent "reason which lies
at the base of the dissatisfaction and abandoning by the customers is that the customers were not
satisfied with the value they have been receiving“ (Arsovski S, 2002). This trust results from
common goals, respecting of the same
system of values, as well as ability to predict the reaction of the other sideStevanović, Gavrilović /
Economic Themes, 56(3): 283-29

Writers diverged in formulating a specific definition for CRM. This divergence owed to a difference in the
scientific background of these writers. To begin with, (APA, 2000, p.p. 12-13) defined CRM as a method
of understanding the customer behaviour through intense communication with him/her to improve the
performance, which represents in attracting the customer, keeping him/her and increasing his/her
loyalty and profitability. It can be notice that this definition regards CRM as mere communication on the
part of the organization to understand the customer's behaviour. (Stone & Findlay, 2001) defined CRM
as the organization carrying out a lot of information about the customer from various resources and
keeping it in order to divide the territories, analyze and reuse. This definition regards CRM as only
collecting and recording information about the customer. (Fross & Stone, 2001) defined CRM as the
company use of its abilities in the field of research methodology, technology and e-commerce in order
to manage customer relationships. This definition for CRM regards it as the ability to use technology in
the domain of dealing with customers.(Parvatiyar & Sheth , 2002) mentioned that CRM is a
comprehensive strategy that includes the process of acquiring certain customers, keeping them and
cooperating with them to create a distinguished value for both the company and the customer. This
strategy requires integrating the functions of marketing, sales, customer service and exposition chain to
achieve the highest competence and efficiency in delivering value to the customer. As it shows, this
definition regards CRM as a strategy with a main goal of delivering a distinguished value to the customer
through improving the marketing productivity.

In an attempt to summarize the most important concepts of CRM, (Zablah&et.al., 2004) demonstrated
that there are five points of view for defining CRM. The points of view are the process, the strategy, the
philosophy, the ability and the technology

Despite the above theoretical and empirical facts as to the development of the CRM in the financial
sector, until recently, the banking sector in Ethiopia has remained dormant to the shift in business
paradigm from product-centric to customer-centric. Various factors contributed for this fact; among
others the dominance of public banks till the liberalization and deregulation of the economy in the
1990`s is the major one.

Commercial bank of Ethiopia using customer relation management as a strategy that can help to build
strong relationships with their customers and increase its profits through the right management system
and the application of customer focused profit-generating institutions
It is apparent from literatures that those banks that are able to implement all dimensions of the CRM
are more beneficial than those are that implemented it in a fragmented manner (Das et. al, 2009). Thus,
as it is three years since CBE adopted CRM, determining to what extent CBE has implemented the
dimensions of the CRM contributes a lot in projecting the expected gain from the system and point out
the dimensions to leverage in the future. Hence, assessing the Effect of Customer Relationship
Management (CRM) on the Profitability of Commercial Bank of Ethiopia a Case Study of selected
branches across four dimensions; key customer focus, knowledge management. CRM organization, and
technology- based CRM become imperative and it is the way to appraise the why of positive outcomes
and/or negative repercussion, if any, in adopting the system.

1.2 Statement of the problem

Companies those think that the customer relationship management was only sale force or technological
driven software leadsfail to implement customer relationship management, Because they were not fully
understand customer relationshipmanagement (Shafique et al., 2015), as a result of the limited studies
at the field. In this study, researcher recognized this as“a knowledge gap‟; not in the basic knowledge of
CRM, but in the methods by which can evaluate and implement CRM.

Complexity experienced in banking industry today makes bank managers to be desperate such that
‘Bank A’manager does not only see ‘Bank B’ manager as competitor but a branch manager of the same
Bank sees eachother as a competitor. This level of competition has made bank managers to focus on
how to be in a close contact with their customers in order not to lose their active customer to their
presumed competitors. Bank services are increasing in Ethiopia, yet the level of failure in their services
indicate that ineffectiverelationship with customers seems to be pronounced. Such a gap indicates that
there is much to learn about howto develop close contact with customer using the appropriate
relationship strategies.

Banks generally today has become a chameleon in nature thereby changing from one service provision
to the other, most time combining many services together relocating or establishing another branch so
as to meet the needs of their customers and to show to the generality of public that their services are
unique and better than the others. However, these services or branches established have not translated
to customer satisfaction as customers’ experienced human traffic while trying to access these services.
This has destabilized customersthereby forcing them to open more than one account across the banking
industry in order to satisfy their financialneed.

This movement of customers from one bank to the other has created serious apprehension among the
banks executives thereby leading to the provision of customers’ service point in most bank branches
across the country for the purpose of having a relationship that can lead to a consistent patronage by
their customers.It is on the basis of the inability of Nigerian bank managers to take cognizance of the
impact of customer relationship marketing on bank performance that this study is being carried out.

Most of the CRM literatures written in the context of the developed countries Ethiopian Banks have fall
short of the expectations of their customers in recent time. It must be noted that, the lifeblood of any
business is its customers. Profit comes from sales minus cost. Sales must be realized first before cost
becomes relevant (Xu,Y. et al. 2002). Customers decide sales based on their perception of product and
service quality. In short, quality determines profits, and customers alone define and determine what
that quality is and should be in every business organization an effective implementation of a widespread
CRM ensures positive returns on investment with minimal wastage of valuable resources and cost
reduction.

The unprecedented growth in the number of Banks in Ethiopia is a laudable attempt in the development
of the financial sector in particular and the service industry as a whole.

Most bankers would like to believe that banks are in the finance industry, and not in the service
industry. As such, they compete in terms of financial prowess rather than service quality. People,
resources, time, and systems are devoted more too managing assets and cash rather than managing
customers and service.

Therefore, it is important for banks to focus on retention of customers, because it is more Profitable to
retain a customer than to obtain a new customer Payne A.and Frow P (2005)

Even though many theories were discussing how clients are satisfied, CRM and marketing performance
CRM impact but they have not yet investigated customer relationship management and its relationship
with the profitability of banks. Besides, they have not yet assessed the association between customer
relationship management and its effect on the profitability.

Therefore, there was the need to conduct a thorough study to assess the effectiveness of CRM in the
related with profitability in order to ascertain a way of effectively implementing of customer relationship
management within the Commercial Bank of Ethiopia.

1.3 Research Questions

What are the effects of Customer Relationship Management (CRM) on the Profitability of Commercial
Bank of Ethiopia?

1.3.1 Sub Research Questions

1. Does key customer focus affect CBE profitability?

2. Does knowledge management will affect CBE relation with customers?

3. How does technology affect CBE profitability?

4. How does CRM organization affect CBE profitability?

5 How are customer relationship management dimensions perceived by employees

of the bank?

1.4 Objectives of the study

To identify factors that influence customer relation management in profitability of CBE

1.4.1 General Objectives of the study

The general objective of this study is to examine the effect of customer relationship management

on profit performance of the CBE

1.4.2 Specific objectives of the study

The specific objectives of the study will be to-

• Examine the relationship between key customer focused and profitability in Commercial Bank of
Ethiopia

• Investigate the main areas of knowledge management.

• Evaluate customer relationship management with the view of how technology affect CBE
profitability

• Explore CRM organization affect CBE profitability

• To examine the perceptions of employees towards CRM practice in the case bank

1.6 Scope of the study

The study will assess branches of CBE that are found only in Addis Ababa on merkato district having the
grade (Grade II, III & IV) per the Bank`s branch rating scheme. This limits the realm of the study by
discriminating those branches of CBE found in outlying areas and those in Addis Ababa but with lower
grades. In addition, the study assess CRM`s purposes in the Commercial Bank of Ethiopia only from four
dimensions that are derived from the reviewed CRM related literatures.

1.5 Significance of the study

Implementation of CRM in the banks would be the stage for building a good partnership with customers
which consequently leads to services development and improvement. Therefore, conducting this study
on commercial bank like the case bank is important, because the finding of this study will be significant
to the bank in supporting decisions on using its resources to maintain the existing customers and attract
the new ones by adopting effective customer relationship management in light of its competitors. The
result of this study will offer valuable inputs and directions for the bank to consolidate its organizational
productivity and customer knowledge management in order to increase its profitability.

The result of this study will also assist the responsible bodies by providing knowledge on how to identify
the needs of their customers in delivering advanced technologies to improve the quality of their services
and increase their profit. Furthermore, the study is believed to benefit both academicians and other
practitioners as a documented study in this area. stability in the country and this is an important
prerequisite towards economic growth.

1.7 Limitation of the Study

The outcome of the study is solely dependent on the individual responses of the respondents that
participate in the study. Moreover, as the sample is small and selected using purposeful sampling
technique, the results might not be generalize beyond the specific population from which the sample
will be drawn, considering the vast number of branches CBE has all over the country almost over 1723
Sep,2022.

1.9 Definition of key terms

Customer Relationship Management (CRM) – is a cross-functional, customer-driven and technology-

integrated management strategy that maximizes relationships (Chen and Popovich, 2003). It involves the
integration of marketing, sales, customer service, IT and the supply-chain functions of the organization
to achieve greater efficiencies and effectiveness in delivering customer value.
Key customer focus; - A customer-focused structure, culture, policy, and reward system should
permeate any organization that strives to implement CRM successfully

CRM organization: - CRM means essential changes in the way that firms are organized and business
processes conducted

Knowledge management: - According to the knowledge-based view of the organization, the creation,
the transfer, and the purposes of knowledge is the primary rationale for a firm‟s existence

Technology-based CRM: - Accurate customer data is necessary to successful CRM performance

consequently; the technology has an important role in CRM in adding to firm intelligence

Profitability: - Profitability in the case of CRM is determined in the light of the lifetime value of the
customer to the organization, taking account the income and expenses associated with each customer
and their respective transactions over time

1.8 Organization of the Study

The study will comprise of five chapters. The first chapter presents introduction of the study whereby
background of the study, problem statement, objectives of the study, research questions, significance of
the study, definition of terms, scope and limitations of the study are include. The second chapter is
devoted to reviewing related literatures followed by the third chapter that discusses the methodology
used to undertake the study.
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1. Introduction

This section reviews the literature written by different authors and researches conducted by

different scholars in relation to the study and present a summary of CRM literature such as

definitions, assumptions, major concepts regarding CRM and profit performance and review of

empirical works. Finally, conceptual framework of the study is included by summarizing

literature results.

2.2. Theoretical Review

2.2.1. Definitions of Customer Relationship Management

Customer Relationship Management concerns the relationship between the organisation and its
customers. Customers are the lifeblood of any organisation be it a global corporation with thousands of
employees and a multi-billion turnover, or a sole trader with a handful of regular customers.( Ellen
Gifford). The ultimate purpose of CRM, like any organisational initiative, is to increase profit. In the case
of CRM this is achieved mainly by providing a better service to your customers than your competitors.
CRM not only improves the service to customers though; a good CRM capability will also reduce costs,
wastage, and complaintsEffective CRM also reduces staff stress, because attrition - a major cause of
stress - reduces as services and relationships improve.

Newer definitions understand CRM as a broader term, e.g. Peelen (2005, p. 6) states: “CRM is to be
regarded as a business strategy that is aimed towards developing long-term, mutually profitable,
individual customer-supplier relationships and is placed on an IT infrastructure to be developed, one
that enables well-defined and controlled processes, and places capable personnel in a position to
function optimally.” Many authors agree to CRM being an important business strategy, e.g. Buttle (2009,
p. 22) wrote: “CRM is the core business strategy that integrates internal processes and functions, and
external networks, to create and deliver value to targeted customers at a profit. It is grounded on high
quality customer-related data and enabled by information technology.” Some authors disagree with
CRM being a new way of marketing, e.g. Tomek and Vávrová (2012, p. 157) conclude that for successful
CRM a company does not need anything else than every employee having customer as their primary
target. Other researchers conclude as well that CRM should be mainly perceived as a philosophy of a
company and not just a computer programme. According to Starzyczná and Pellešová (2007), the bases
for CRM are two things: customers, who are unique to eachcompany, and company culture.

Various definitions have been provided for customer relationship management (CRM) by scholars. It is
defined as a management approach which consists of methodologies, processes and software which
help in establishment of an organized relationship with customers Bohling et al (2006). CRM means to
create and maintain a specified relationship with profitable customers through using appropriate
information and communication technology(Payne & Frow, 2005). Furthermore, in a narrow sense,
customer relationship management could be defined as "managing detailed information about
individual customers and carefully managing customer

touch points maximize customer loyalty and if it is seen in a browed sense, it is also defined as

the overall process of building and maintaining profitable customer relationship by delivering

superior customer value and satisfaction"(Kotler & Armstrong, 2010).

To make the above definitions conceptual , CRM continuum which is developed by Payne &

Frow ( 2005) ,explain CRM adopted from different sources ranges from narrowing IT enabling

solutions to a broadly and strategically approach to managing customer relationship.

2.3. Empirical Reviews on Customer Relationship Management

A considerable quantity of prescriptive literature is available to explain the importance of

customer relationship management in different organization particularly in financial institution

like banks.

Swaminathan (2004) conducted a research in Hong Kong China. The sample included a number

of different organizations such as banks, investment companies, insurance companies and other

institutions characterized by good relationships with customers. Data was collected from senior
managers in these organizations by means of questionnaire. Accordingly, the study concluded

that there are four dimensions of CRM. Three of these four dimensions, (Key customers focus,

organizing around CRM, and managing knowledge) directly and indirectly affected the

performance (customer's satisfaction- customer retention- the growth of sales). However, the

fourth dimension (technology) did not lead to increasing the customer's satisfaction and loyalty

in the long run

In the developing countries case, Boateng (2014) examined the effect of customer relationship

management (CRM) dimensions on some selected banks‟ performance in Accra, Ghana. Factors

used were based on the dimensions of CRM and how each of them affects the performance and

retention of customers to the selected banks. Through a random sampling technique, a sample of

nine banks (private, public and international banks) was considered for data collection and as a

quantitative study; close and opened questions in the form of questionnaires were used as the

main instrument for gathering data. From the finding of the research a positive relationship was

established among most of the dimensions with some having effect on the performance of the

selected banks. In the same scenario, among the four dimensions considered, (Customer

orientation, Knowledge management, Technology Based CRM and CRM organization),

customer orientation was identified as the dimension with the highest association with banks‟

performance and customer loyalty.

Ramezanpour et al. (2013), also conducted a research to assess the impact of customer

relationship management (CRM) dimensions on the financial performance of banks (Case Study:

Mellat Bank, City of Rasht, Iran.) In the research, customers‟ relationship management

dimensions, their impacts on the financial performance of banking services were studied. To

achieve the research objectives, information technology, knowledge management, customer

response and customer interaction management as the customer relationship management

dimensions were identified and four hypotheses were established to test the impact of these
dimensions on Mellat bank's financial performance in Rasht. In order to collect data, a standard

questionnaire containing 18 questions was used. The questionnaires were distributed among 203

bank employees as the statistical samples. To test the hypotheses, the Pearson Correlation

Coefficient Method, Simple Linear Regression and Multiple Regression Analysis were used.

Test results showed that there is a positive significant relationship between the dimensions of

customer relationship management and the financial performance. The impact coefficient of all

the hypotheses through regression tests was positive in which information technology has had

the greatest effect.

2.3 Dimensions of CRM

Yim et al (2005) defined CRM dimensions as a collection of different activities (1) focusing on key
customers, (2)

organizing around CRM, (3) managing knowledge, and (4) incorporating CRM-based technology. CRM
was also defined by

Nguyen et al (2007) as information system that allows organizations to track customers’ interactions
with their firms and

allows employees to instantly pull up information about the customers such as past sales, service
records, outstanding

records and unresolved problem calls. CRM is said to offer a long term changes and benefits to
businesses that chose to

adopt it (McNally, 2007). On the other hand, many scholars still debate over what should exactly
constitute CRM; some say

CRM are nothing more than mere software, while others say it is a modern means of satisfying
customers’ requirement at

profit (Yueh et al., 2010).

2.1 Customer Orientation

A customer-focused structure, culture, policy, and reward system should permeate any organization
that strives to implement

CRM successfully (Ryals and Knox, 2001). All interactions with key customers, who are often identified
by “lifetime value
computations,” must fully reflect this company-wide CRM focus (Jain and Singh, 2002 and Schmid and
Weber, 1998). The

ultimate goal is to achieve deep customer relationships through which the seller organization becomes
indispensable to its

most profitable customers (Vandermerwe, 2004). Equipped with company-wide understanding and
internal support for key

customer relationships, the sales force generally is better enabled and motivated to cultivate long-term
customer relationships

by offering more personalized products and services (Armstrong and Kotler, 2003).

2.2 CRM Organization

With a strong focus on key customers deeply embedded throughout its CRM system, the entire
company should be organized

around cultivating these valuable relationships. The organizational structure needs to be flexible and, if
necessary,

reconstructed to generate customer-centric values (Homburg et al., 2000) and improve coordination of
customer-focused,

cross-functional teams (Brown : 2000; Homburg et al., 2000 and Sheth, 2002). For CRM success, there
also must be an

organization wide commitment of resources. With concerted efforts by all organizational functions to
continuously provide a

stream of value-rich actions and customer outcomes (Ahmed and Rafiq., 2003), the company and its
sales force are assured

that they can satisfy customers’ needs and enhance customer relationships.

2.3 Knowledge Management

Strongly related to knowledge management, successful CRM is predicated on effectively transforming

customer information

to customer knowledge (Freeland , 2003 and Peppard , 2000). Specifically, to enhance customer
profitability, information

about customers should be gathered through interactions or touch points across all functions or areas of
the firm (Brohman et
al., 2003), so that a 360-degree customer view is established, maintained, and continually updated (Fox
and Stead, 2001).

Customer knowledge thereby generated needs to be shared and disseminated throughout the
organization (Peppard : 2000;

Ryals and Knox, 2001) “to address customers’ current and anticipated needs. Salespeople are then
equipped with a wealth of

valuable customer knowledge to meticulously adjust marketing offers to fit the idiosyncratic needs of
each customer”

(Armstrong and Kotler, 2003).

2. 4 Technology Based CRM

Many CRM-oriented activities, such as knowledge management, cannot be optimized without leveraging
the latest

technology. Indeed, most CRM applications take great advantage of technology innovations with their
ability to collect and

analyze data on customer patterns, develop prediction models, respond with timely and effective
customized

communications, and efficiently deliver personalized value offerings to individual customers (Peppard,
2000 and

Vrechopoulos, 2004). With the development of sophisticated information management tools, such as
database marketing,

data warehousing, data mining, and push technology, companies are striving to seamlessly incorporate
the latest technology

into their CRM systems. In particular, salespeople frequently depend on continually updated software
programs to better

respond to their customers and build enduring customer relationships (Kotler, 2003). CRM technology
helps companies and

their sales people collect, analyze, and distribute information for enhanced prospecting, improved
communication and sales presentations, and tailored product configurations. It also facilitates cross-
referencing of customers within divisions of a

company for greater sales opportunities (Widmier et al., 2002).

2.7 Conceptual Framework

The following conceptual framework was developing for this study. It shows the overall effect of
independent variables, which are the CRM dimensions (These four dimensions are key customer focus,
knowledge management, CRM organization and technology-based CRM) on the independent one, which
is profitability.
CHAPTER THREE

RESEARCH METHDOLOGY

3.1 Introduction

The methodology refers to the procedural framework within which the research will be conducted.

This chapter will present how the current study will be designed and provide a clear description of

the specific steps that will be taken to address the research problem and test each of the four

hypotheses.

3.2 RESEARCH APPROACH

Both quantitative and qualitative approach will be used for the study which involved collecting and
analyzing the data gathered in succession. The quantitative data will be collect first to find out
management and staff commitment to CRM and the effect it would have on profitability in Commercial
Bank of Ethiopia.

The quantitative data was

collected to find out the practice of CRM and the effect it would have on profit performance of

the bank. The qualitative data was collected and analyzed in order to elaborate the quantitative

results obtained in the analysis. The qualitative data are those collected through interview

whereas quantitative data are the objective items which were collected through questionnaires.

3.1 RESEARCH DESIGN

The study is descriptive in nature in that it collects data from one or more target groups, and analyzes it
in order to describe the present condition. More specifically, a survey data on the four dimensions of the
CRM collected both from the customers and from employees of CBE (Branch managers, Customer
relationship managers, customer relationship officers and customer service managers) to determine the
extent of CRM application in the Bank.
3.4 STUDY POPULATION

The target population of this study will includes staff and customers of Commercial Bank of Ethiopia,
especially, (ADDISUMichael, Ehilberenda, Pastersquare and Sefereselam branches) and commercial
bank branch Managers, customer relationship managers.also included

The staff population used for the study was 60 whilst the customers‟ population was and this
represented the average number of customers the bank serves within a day in the two branches.

3.3 DATA TYPES (SOURCES OF DATA)

In order to answer the objectives and research questions of this study there will be the need to get
adequate information from various sources to help achieve the study objectives as well as research
questions. Data therefore obtained from two sources namely, primary and secondary.

3.3.1 PRIMARY DATA

The main source that used for the collection of the primary data will be the questionnaire
Questionnaires administered to staff and customers of the bank personally by the researcher.

3.3.2 SECONDARY SOURCES

Secondary data obtained from relevant published and unpublished literature on CRM its application and
other relevant materials.

3.5 SAMPLING AND SAMPLING PROCEDURES

The sample size will be selected for the staff of Commercial Bank of Ethiopia from four branches 63 for
those of who are directly communicating the customers who are the users of our credit service these
employees are in the management position which are , branch manager‟s ,business manager,&
customer service managers,customer relation managers and customer service officers.

purposeful random sampling method will be used to select customers and this will done by putting the
entire population into two main subgroups (stratum) retail and wholesale customers.

3.7. Data Collection Procedure

After getting formally request permission from the bank for the study Data collected mainly from survey
through questionnaires. Then questioner will be distributed for employees for selected branches. Since
the Customer Relationship Managers/Officers are the one with which customers are frequently
engaged, the „customer questionnaires‟ were given to them who further distribute it to the customers
and receive the responses thereby.
3.8 Data analysis

In the study both qualitative and quantitative methods of data analysis techniques were

employed. Analysis of data in this research was done by using statistical tools like frequency,

mean, standard deviation, correlation and multiple regressions. A descriptive analysis was also

used for demographic factors such as gender, age, educational level, and for how

long has been the employees served in the bank.

CHAPTER THREE

RESEARCH METHDOLOGY

3.0 INTRODUCTION

This chapter deals with the methodology of the study whereby the research design, sampling and
sampling techniques, data collection instruments, data collection procedures and the method of data
analysis are discussed

3.2 RESEARCH APPROACH

The study will employe both qualitative and quantitative data. The quantitative data will collected to
find out the practice of CRM and the effect it would have on profit performance of the bank. The
qualitative data was collected and analyzed in order to elaborate the quantitative results obtained in the
analysis. The qualitative data are those that will be collected through interview whereas quantitative
data are the objective items which would be collected through questionnaires.

3.3 RESEARCH DESIGN

The study is descriptive in nature in that it will collect data from one or more target groups, and analyzes
it in order to describe the present condition. More specifically, a survey data on the four dimensions of
the CRM collected both from the customers and from employees of CBE (Branch managers,Business
managers, customer service officers, customer relation managers and customer service managers) to
determine the extent of CRM application in the Bank.

3.4 POPULATION AND SAMPLE

Population of a study defined as the elements or people studied and from whom data obtained (Keller
and Warrack, 2003).

The target population of this study are staff and customers of Commercial Bank of Ethiopia, especially,
(AddisuMichael,EhilBerenda,Paster square andSefereSelam branches)
The staff population used for the study will be 60whilst the customers‟ population was 300 and this
represented the average number of customers the bank serves within a day in the two branches

The sample size will be selected from the staff of Commercial Bank of Ethiopia from four branches 63 for
those of who are directly communicating the customers who are the users of our service these
employees are in the management position which are Business managers ‟s, branch manager‟s &
customer service managers.

The population of the study will encompasses all employees and customers of the Commercial Bank of
Ethiopia found at the vicinity of Addis Ababa. As it is impractical to asses all branches of CBE found in
Addis Ababa, a purposeful sampling is found to be the most appropriate for this case study approach,
because „information- rich‟ cases can be selected so as to learn much about the issues that are
important to the study( Patton, M. Q, 1990).