"Effects of Integrated Marketing Communication and Customer Relationship Management Strategies on Private Commercial Banks' Performance in Addis Ababa Ethiopia: The Mediating Role of Brand Equity" By:

Main Supervisor: Chalchissa Amentie (PhD, Associate Professor) The increasing importance of Integrated Marketing Communication (IMC) and Customer Relationship Management (CRM) in contemporary marketing is largely due to their critical roles in developing and maintaining Brand Equity (BE), which in turn contributes to overall business performance. This study investigates the effects of IMC and CRM strategies on banks’ performance in Ethiopia, focusing on the mediating role of brand equity. The study employed a descriptive explanatory survey design, collecting data from 376 participants and securing 312 valid responses (83% response rate). The sample included marketing, customer service and CRM employees working in six selected private commercial banks operating in Addis Ababa where their head office is located with additional insights from 12 bank directors and banks’ annual reports. The sample was calculated using Morris(2014) simplified formula form579 total population and proportionately distributed to the selected banks. Data collected using a five-point Likert scale questionnaires from the respondent was analyzed using SPSS version 23. Descriptive statistics (frequency, percentage, mean) were used to analyze respondents’ profile. Reliability and validity tests confirmed strong reliability for IMC, CRM, BE, and performance measures, with Cronbach’s alpha from 0.892 to 0.92. Confirmatory factor analysis (CFA) was performed using the AMOS software to investigate the proposed hypotheses in the path model and validate the construct's measurement model. The statistical method used to test the path model was structural equation modeling (SEM). Path analysis showed significant relationships among the main variables of the study. Specifically, the results showed a strong positive effect of IMC on bank performance (β =0.775; p < 0.001) and a strong correlation between IMC and BE (β= 0.716). Additionally, a significant effect of BE on bank performance was identified (β=0.490; p = 0.001). The findings also demonstrated that IMC indirectly influences on banks’ performance through BE (estimate: 0.351; p = 0.000), strengthening the importance of brand equity in this dynamic. The analysis further indicated strong effect of CRM on banks’ performance (path coefficient: 0.724; p < 0.001). The path coefficient for CRM’s impact on BE was substantial (0.706; p < 0.001), with a moderate-to-strong positive effect of BE on bank performance (path coefficient: 0.543). Furthermore, the indirect path estimate for CRM’s effect on performance via BE was moderate (0.384), suggesting significant indirect influence. Based on these findings, the study recommends that banks develop comprehensive IMC and CRM strategies that align and support each other to optimize brand equity and performance outcomes. Regular evaluations of brand equity and the effectiveness of IMC and CRM initiatives are essential for identifying strengths, weaknesses, and opportunities for improvement. Furthermore, banks should invest in training programs to enhance staff capabilities in executing integrated strategies effectively. Additionally, banks must remain agile and responsive to changes in customer behavior and market trends by updating IMC and CRM strategies as necessary. By implementing these actions, banks can leverage both IMC and CRM models to strengthen brand equity and foster customer loyalty in a competitive financial environment which in turn boost overall banks performance. Keywords: Integrated Marketing Communication (IMC), Customer Relationship Management (CRM), Brand Equity (BE), Banks’ Performance.