Alemayehu Teressa

Addis Ababa University School of Graduate Studies
Department of Marketing Management
AN ASSESSMENT OF KEY ACCOUNT MANAGEMENT ORIENTATION

PRACTICES BY TRAVEL AGENCIES IN ETHIOPIA
By: Alemayehu Teressa Edessa
May, 2014
Addis Ababa, Ethiopia

AN ASSESSMENT OF KEY ACCOUNT MANAGEMENT
ORIENTATION PRACTICES BY TRAVEL AGENCIES IN
ETHIOPIA
( A thesis submitted to the school of Graduate Studies of Addis Ababa

University in Partial Fulfillment of the Requirements Degree of Master
of Arts in Marketing Management)
By: Alemayehu Teressa Edessa

GSE/0775/04
Advisor:
Teklegiorgis Assefa (Asst. Prof.)
Addis Ababa, Ethiopia
May, 2014
Declaration
I declare that the research entitles “Key Account Management Orientation in

Travel Agencies in Ethiopia” is my original work and has not been presented in
Addis Ababa University or any other University, and that all source of material
used for the research have been duly acknowledged.
Alemayehu Teressa Signature ________________
(The Researcher) Date: ________________

Letter of Certification
This is to certify that Alemayehu Teressa has carried out this thesis on the topic
entitled “An Assessment of Key Account Management Orientation Practices
by Travel Agencies in Ethiopia.” This work is original in nature and is suited
for submission for the award of Master of Marketing Management.
____________________
Teklegiorgis Assefa (Asst. Prof.)
(Thesis Advisor)
Addis Ababa University
School of Graduate Studies
Department of Marketing Management
AN ASSESSMENT OF KEY ACCOUNT MANAGEMENT ORIENTATION

PRACTICES BY TRAVEL AGENCIES IN ETHIOPIA
By:
Alemayehu Teressa
Approved By Board of Examiners:
_____________________________ _____________________________
Thesis Advisor Signature
_____________________________ _____________________________
Internal Examiner Signature
_____________________________ ______________________________
External Examiner Signature

TABLE OF CONTENT
Pages
Acknowledgment ………………………………………………………………………. iii

List of Tables……………………………………………………………………………. iv
List of Figures…………………………………………………………………………… v
Acronyms ………………………………………………………………………………. vi
Abstract……………………………………………………………………………… …. vii
1. CHAPTER ONE: INTRODUCTION…………………………………………………. 1
1.1 Background of the Study…………………………………………………………….. 1

1.2 Highlights on Travel Agents in Ethiopia…………………………………………….. 3
1.2.1 IATA Accredited Agencies ………………………………………………… 3
1.2.2 Non-IATA Travel Agencies……………………………………………..…. 3
1.3 Statement of the problem ……………………………………………………………. 3
1.4 Research Questions………………………………………………………………….. 6
1.5 Research objectives………………………………………………………………….. 6
1.5.1General Objective……………………………………………………………. 6
1.5.2 Specific Objectives …………………………………………………………. 6
1.6 Significance of the Study……………………………………………………………… 7
1.7 Scope and Limitation of the research…………………………………………………. 7
1.8 Hypothesis…………………………………………………………………………… 9
1.9 Organization of the Paper……………………………………………………………. 10
2. CHAPTER TWO, LITRATURE REVIEW………………………………………… 12
2.1 Introduction to Key Account Management and its Elements……………………….. 12

2.2 Origin of KAM……………………………………………………………………… 16
2.3 Key Account Management Orientation (KAMO)…………………………………… 16
2.4 Components of KAMO…………………………………………………………….. 17
2.4.1 Attitudinal Components…………………………………………………….. 17
2.4.2 Behavioral Components……………………………………………………. 19
2.5 Relationship Quality and Capability…………………………………………………. 22
2.6 Outputs of KAMO………………………………………………………………….. 23
2.6.1 Financial Performance………………………………………………………. 23
2.6.2 Nonfinancial Performance…………………………………………………… 24
2.7 KAMO vs. Market Orientation……………………………………………………… 24
2.8 Increasing Complexity of Key Account Relationship…………………………………. 25
2.9 Limitations of KAMO………………………………………..………………………. 25
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2.9.1 Additional Resource Allocation Related…………………………………….. 25
2.9.2 Other Implications of KAM……………………..…………………………… 26
2.10 Conceptual Model……………………………………………………………………. 27
3. CHAPTER THREE, RESEARCH DESIGN AND METHODOLOGY………….…. 28

3.1 Introduction………………………………………………………….……………..….. 28
3.2 Research Design………………………………………………..…………………..….. 28
3.3 Population and Sampling Techniques…………………………..………………..……. 28
3.4 Data Source and Collection Instrument………………………………..………………. 29
3.5 Procedure of Data Analysis…………………………………………………………….. 29
3.6 Analysis Techniques……….………………………………………………………….. 30
3.7 Reliability and Validity ……………………………………………………………….. 30
3.7.1 Reliability……………………………….…………………………………….. 30
3.7.2 Validity…………………………………………..…………………………… 30
3.8 Ethical Consideration…………………………………………………..……………… 30
4. CHAPTER FOUR, RESULTS AND DISCUSSION………………………………. 31

4.1 Introduction…..…………………………………………………………….………….. 31
4.2 Demographic Analysis of the Respondents…………………………………………… 31
4.3 Reliability Test……………………………………………………………………..….. 32
4.3.1 Overall Reliability Test……………………………………………………… 33
4.3.2 Reliability Test of Variables…………………………………………………. 33
4.4 Analysis of the Mean Score of the Variables ………………………………………… 34
4.5 Correlation Analysis…………………………………………………………………... 35
4.6 One-Way ANOVA…………………………………………………………………. 37
4.6.1 ANOVA of Designation of the Respondent to overall KAMO………………. 37
4.7 Regression Analysis………………………………………………………………….. 38
4.7.1 Key Account Management and Its Dimensions………………………………. 38
4.7.2 Multiple Regression…………………………………………………………. 39
5. CHAPTER FIVE, SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATION…………………………………………………………………… 44
5.1 Summary of Findings………………………………………………………………… 44
5.2 Conclusion…………………………………………………………………………… 46
5.3 Recommendations…………………………………………………………………… 47
6. REFERENCE………………………………………………………………………… 49
APPENDIX …………………………………………………………………………….. 52
Appendix-I: Sample Questionnaire ……………………………….…………………….. 53
Appendix-II: SPSS Analysis Results……………………………………………………. 57
ii
ACKNOWLEDGMENT
First of all I praise God for his timeless love and endless mercy on my life.
I would like to express my special appreciation and thanks to my thesis advisor Mr.
Teklegiorgis Assefa (Asst. Prof.) for his initial blessing on the research topic, and for his
understanding, patience, and encouragement throughout my research.
Special thanks go to my friends and family. Words cannot express how grateful I am for
all of the guidance, encouragement and support that I have been receiving throughout my
study. A special thanks also goes to Temima Nassir, Manager Ethiopia at Emirates; this
wouldn’t have been possible without your push, encouragement and support all the way
through.
I would also like to thank my colleagues at Emirates for giving me the confidence to seek
their support any time any place.
iii
List of Tables
Pages
Table 4.1 Demographic Distribution of Respondents………………….………………31
Table 4.2 Overall Reliability Statistics….…………………………………….………..33
Table 4.3 Reliability Statistics of the Variables ....………………….………………….33
Table 4.4 Mean Score of the Dimensions and Overall KAMO………………………...34
Table 4.5 Correlations…………………………………………………………………..36
Table 4.6 One-Way ANOVA…………………………………………………………..37
Table 4.7 KAMO as explained by its Dimensions, model Summary…………………..38
Table 4.7 Multiple Regression Result…………………………………………………..39
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List of Figures
Pages
Figure1, Model of Key Account Management (KAMO) and Its Impact on
Performance……………………………………………………………………..4
Figure 2, Key Account Management orientation (KAMO) and its dimension…………5
Figure 3, Elements of KAM…………………………………………………………...15
Figure 4, Conceptual Model……………………………………………………………27
v
ACRONYMS
AC: Ability to Customization
B2B: Business to Business
IATA: International Air Transport Association
IC: Inter-functional Coordination
IS: Inter-functional Support
KAM: Key Account Management
KAMO: Key Account Management Orientation
KM: Overall KAMO
MO: Market Orientation
TC: Top Management Commitment
TI: Top Management Involvement
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ABSTRACT
This research was conducted to investigate the extent of Key Account Management
Orientation (KAMO) of travel agents in Ethiopia that can be explained by the key
account management orientation model that was conceptualized and empirically tested
in Greece by Gounaris & Tzepelikos in the year 2012. Key account management being a
relatively new phenomenon in Marketing, and due to the environmental circumstances
that led to its existence, it has become an important concept in B2B marketing. This is a
descriptive and inferential paper which tries to find out if the travel agencies key
accounts management orientation could be explained in terms of the KAMO model of
Gounaris and Tzempelikos developed in 2012. The attitudinal and behavioral
dimensions of the model were found to be important and it is also found to be applicable
to all managerial levels of the travel agencies. To be able to do this, different statistical
tools were used in the research which include, descriptive statistics, mean score, one-
way ANOVA, correlation and finally regression. With an overall model fit of 95%, the
model will have an important managerial and academic implications in preparation and
implementation of key account management orientation by travel agencies in Ethiopia.
KEYWORDS Key Account Management, Key Account Management Orientation, B2B

marketing, Relationship Marketing
vii
viii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The origin of the concept of Key Accounts Management (KAM) can be traced back to the
late 80’s and beginning of the 90’s (Woodburn, 2011). Some even push it a little bit back
to the 70’s (Cheverton, 1999). The driving forces in the development of the concept are
mainly market maturity, globalization, consolidation, and the increased power and
sophistication of important customer (Woodburn, 2011).
The increase in power of the customer is especially a major factor for marketers to
completely rethink their way of doing business. The apocryphal story below, about the
buying director of General Motors was never denied: (Malcolm M. & Diana Woodburn,
2007)
He called his suppliers together in Detroit and announced that they were all to drop their
prices by 20 per cent and asked for questions. One brave chief executive officer of a
supplying company told the GM buying director that his technology was years ahead of
any competitor, was already 20 per cent cheaper than his competitors and that he could
not reduce his prices by 20 per cent. The GM buying director asked his commissionaires
to escort this supplier out and announced GM would never deal with GM ever again. He
then asked for further questions.
It was clear for the supplying companies that this issue of the power shift was a double-
sided sword- it has become hard to attract new buyers and it has become even harder to
keep the existing customer base. Therefore, they were required to react and adapt or face
the ultimate fate of being wiped out of the market. This heralded the coming of Key
Account Management in to the picture.
1
In explaining the precedents and pushing factors of KAM, Cheverton, (2002) states that,
products or technology gets harder, customers grow larger, and become more genuinely
global, become more complex, and more demanding, the purchasing role become
sophisticated. Hence the change in the supplier side becomes inevitable.
What are Key Accounts
Key accounts are the most valuable customers for a company, due to size, turnover
volume, strategic fit, reference potential, etc. In times of exchangeable products and
services it is more than ever crucial to build up excellent relations with these important
customers (Dirk Zupancic, 2008).
Value, if not carefully taken, it always wrongly associated with revenue only. Large
accounts may not necessarily be considered Key Accounts. Key account is a customer in
which we are prepared to invest a significant share of our company’s resources (time,
people, money) in the belief that that customer represents the best route to achieving our
long-term business ambitions (Cheverton, 2002). He further stated that if your
marketplace is so dynamic, or for that matter, to take the other extreme, so homogeneous,
that you can’t safely distinguish one customer from another in terms of their importance
in the future, then devoting an unequal share of resources to any selected group will be a
very risky activity. What you gain with the chosen few you may lose with the others, and
learning that you did indeed back the wrong horses always comes too late to change your
mind.
Therefore, the focus point is not only revenue or size of transaction. Their current
importance or their potential importance for achieving our long term business objective is
the key determinant of Key Accounts (Cheverton, 2002).
2
1.2 Highlights on Travel Agents in Ethiopia
As this research is conducted on the travel agents in Ethiopia, some general introduction
about who they are will put the picture in to perspective. There are basically two
categories of travel agencies in the Ethiopian market;
1.2.1 IATA Accredited Agents: These are agents that have qualified to the
requirements of the International Air Transport Association (IATA) which
is the biggest regulatory body in the industry that among other things
evaluates and gives accreditations to travel agent on behalf of its member
airlines. The evaluation is both at the entry level, and an ongoing one. To
become IATA accredited, an agency needs to provide equivalent of USD
50,000 in Birr as a bank guarantee ticket sales. Its one year audited
financial statement is also evaluated, and its location, equipment, and staff
are scrutinized to ensure they fit IATA standards for safety, security and
performance. These type of agencies are authorized to hold airline ticket
stocks, which makes their operation easier and their income better.
1.2.2 Non-IATA Travel Agents: These are travel agents yet to qualify for the
IATA accreditations as stated above, and work through accredited agents
by sharing their earnings. They more often than not are, new agencies and
they need to work for at least one year before applying for IATA
accreditation.
1.3 Statement of the problem
Previous researches conducted on KAM and the books written about it support that
proper planning, adoption and implementation of KAM will lead to both financial and
nonfinancial performance improvement (Gounaris & Tzempelikos, 2012).
3
Gounaris & Tzempelikos (2012) also came up with the diagram below depicting how key
account management orientation affects the performances of the selling organization. It
also depicts the impacts of relationship quality and relationship capability variables that
put their mark on the output by playing a mediating role in the process.
Figure1, Model of Key Account Management (KAMO) and Its Impact on

Performance
Source: Gounaris & Tzempelikos (2012)
Hence, the importance of KAM for the travel agencies seem imminent mainly due to the
change in the market that are very similar to the market forces that eventually led to the
original conception of KAM as discussed in the first part of this chapter.
The increase in the number of travel agencies is a result of the gradual increase in
passenger traffic out of Ethiopia, which makes the travel industry which has relatively
lower entry barrier and relatively lower initial investment, very lucrative for new entrants.
For example, a major shift in recent years in the air travel industry is the change from
commission based earning to a service fee system. All major airlines operating out of
Ethiopia have shifted moved to a zero commission, which means travel agencies that
used to earn a commission of minimum of 7% previously on the basic fare they sold, are
now getting fixed amount the ticket they sold, are now getting fixed service fee per ticket,
irrespective of the value of the ticket with slight variation on the service fee amount for
4
travels made in different class of travel (Economy, Business, and First). This factor has
changed the sales orientations of the travel agencies from seeking a high value ticket, for
the sake of higher commission, to a volume approach of issuing as many tickets as
possible to increase their earning.
This and other factors have contributed to the shift towards getting as many new
customers as possible while retaining existing customer.
Among the proven ways of retaining and growing a customer base, one is through
strategic relationship management. Even though the importance of KAM in today’s
market scenario is so much obvious from most publications in the field, little is being
noticed from the travel agencies side in Ethiopia to properly strategize and deploy KAM
elements, for a better long-term result. This is however, without forgetting the flicker of
KAM initiatives seen in some proactive Travel Agents. Hence, this research will try to
unearth the key account management orientation (KAMO) level of the travel agents
towards KAM by using KAMO dimension model of Gounaris & Tzempelikos, (2012) as
depicted in the figure below
Figure 2, Key Account Management orientation (KAMO) and its dimension
Source: Gounaris & Tzempelikos (2012)
5
1.4 Research Question
The exposure to the above mentioned background led the following research question
1. Is there a marked difference between the management group of a travel agency

with that of the non-management group?
2. Is top management commitment as well as involvement an integral part of travel
agencies’ key account management endeavors?
3. Are customer orientation and ability to customization an important ingredient of
travel agencies key account management orientation
4. Do they feel the importance of inter-functional coordination as well as inter-
functional support as a vital element of their KAMO scheme?
1.5 Research objectives
1.5.1 General Objective
General objective of the research is to find out that if the KAMO model along with its
dimensions that was conceptualized and develop by Gounaris & Tzempelikos, in the year
2012 can be used to explain the KAMO of Travel agencies in Ethiopia.
1.5.2 Specific Objective
The specific objectives of the research are;
• To find out if there are a marked differences in understanding and

applying the KAMO dimensions by the managerial and non-
managerial employees of the travel agencies in Ethiopia,
• To find out the importance of top-managements’ commitment as
well as involvement in the KAMO of travel agencies in Ethiopia,
6
• To find out the importance of customer orientation as well as ability
to customization in the KAMO of travel agencies in Ethiopia, and
• To find out the importance of inter-functional coordination as well
as support on the KAMO of the travel agencies in Ethiopia
1.6 Significance of the Study
As discussed in the introduction, the level of competition in the Travel market is

intensifying and the buyer’s power is continuously increasing, and major changes
are happening now than before. Hence, if appropriate strategic approach is not
applied in good time, there is a greater chance that these change-inducing factors
will force the travel agencies to downsize and eventually wipe them out of the
market completely. KAM is believed to be among the top strategic alternatives
that the travel agents should consider seriously and make use of it in order to
survive and grow of change and grow in these dynamic market conditions.
Through proper planning and implementation of KAM strategies and by properly
administering KAMO elements, the researcher believes the above stated goal can
be realized.
1.7 Scope and Limitation of the research
In spite of, its potential contribution to the proper alignment of travel agencies’
key account management practices, and to the local body of knowledge in terms of
systematic application of KAM practice in the travel agencies in Ethiopia, this
research has its own limitations. The major ones are;
• It is conducted from the supplier’s side of the market only. However the
buyer side is also equally important and future research in the area will
7
make the entire picture complete.
• It doesn’t take the intensity of the competition in to consideration.

Competition is believed to be a potential factor in determining the output
of the research.
• Due to their newness to the market and due to the nature and type of
customer they handle, the Non-IATA agents are excluded from the
research, which more or less realizes the conclusion to IATA agencies
only.
• As travel agents are representatives of the commercial airlines operating in

the market, the services they sell are provided to them by the airlines. It is
these airlines that have given them the authority to issue tickets and other
travel related document. Even if their potential impact in the outcome of
the research is believed to be considerable, this research does not cover
them.
• The actual outcome in terms of financial and nonfinancial performance of

the selling organization is believed to be an interesting topic for upcoming
researches that are interested in KAM. The conceptual model on page 4,
figure 1 depicts the importance of KAMO on financial and nonfinancial
performance. This is moderated by intensity of competition and mediated
by relationship quality and relationship capability. Based on initial
observation and personal expertise in the market, it has been decided to
remove it from the scope of the research. The main reasons are availability
of financial data and even if it is available its credibility is questionable.
Time and cost are also other factor to exclude this model.
8
1.8 Hypotheses
Based on the KAMO dimensional element the objectives of the research discussed
earlier in this chapter, the following seven hypotheses are developed to be tested
Hypothesis 1:
Ho: There is no statistically significant difference on KAMO practice , based on
the designations of the respondents
Ha: There is statistically no significant difference on KAMO practice when the
designation changes
Hypothesis 2:
Ho: Top management commitment is not at the core of KAMO practice of travel
agencies in Ethiopia
Ha: Top management commitment is at the core of KAMO practice of travel
Hypothesis 3:
Ho: Ability to customization is not at the core of KAMO practice of travel
Ha: Ability to customization is at the core of KAMO practice of travel agencies
in Ethiopia
Hypothesis 4:
Ho: Inter-functional coordination is not at the core of KAMO practice of travel
Ha: Inter-functional coordination is at the core of KAMO practice of travel
9
Hypothesis 5:
Hypothesis 6:
Ho: Top management involvement is not at the core of KAMO practice of travel
Ha: Top management involvement is at the core of KAMO practice of travel
Hypothesis 7:
Ho: customer orientation is not at the core of KAMO practice of travel agencies
in Ethiopia
Ha: customer orientation is at the core of KAMO practice of travel agencies in
Ethiopia
1.9 Organization of the paper
The research report is organized under five chapters.
Introduction is the first chapter where the general background of the concept
along with a birds-eye view of the target group of the research is discussed.
The scope of research along with its limitations is also stated in this part of the
proposal. The problem of the research and the objective at which the research
has aiming at are of presented along with the planning of the research to be
conducted. The second chapter of the research is literature review. In this
chapter related concepts and theories from different books, previous
researches are presented and discussed. The third chapter of the research is
methodology. This chapter deals with reporting the population of the study
10
along with how the data is collected, and how they are analyzed to arrive at
the objective. This is to be followed by the Results and Discussion, where the
data collected through the questionnaire are presented, analyzed and
discussed. The final chapter of the research is for summary of major findings,
conclusion and recommendations. In this chapter summary of the output of the
analysis are presented from, conclusions are drawn and recommendations will
be put forth.
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CHAPTER TWO
LITRATURE REVIEW
2.1. Introduction to Key Account Management and its elements
Key Account Management is a supplier initiated approach to sales (Noor & Ahmmed,
2013). It is targeting the most important customer that holds a strategic importance to the
selling company. They are those customers in a business-to-business-market, identified
by the selling company as the most important customers, and serviced with dedicated
resources as such (Workman, Homburg & Jensen 2003). They also continue to discuss
the basic requirements for KAM saying it always require the willingness as well as the
ability to commit significant amount of resource for it proper implementation.
The needs of the Key Accounts are much bigger and more complicated than that of the
other customers whose importance is not a strategic one. Managing these customers with
a great emphasis on operational, organizational and relational factors is pivotal to ensure
mutual interests. As organizations are adopting key account management (KAM)
approach more and more, it is imperative for them to clearly understand which
operational, organizational and relational factors are important for key account
management performance and how they influence the KAM approach (Noor & Ahmmed,
2013).
Aiming at the most important customers to solve their complex requirements with special
treatment that eventually ensures both parties’ financial and nonfinancial objectives,
KAM has been regarded as a pressing concern of many companies’ sales efforts, (Noor &
Ahmmed, 2013). The importance of building long term relationship in a way that drives
strategic benefit for the key account and the selling company is the ultimate objective of
the KAM. Hence KAM can also be considered as marketing approach aimed at building
12
relationships with a loyal customer base in business markets (McDonald, Millman, &
Rogers 1997).
Account management can be seen as a practical implementation of long-term buyer/seller

relationships (Gosselin & Heene, 2005), where perennial interaction takes place between
seller and key account. Zupancic (2008) calls it as systematic selection, analysis and
management of the most important present and future customers of the company with the
set up and maintenance of needed infrastructure to meet their requirement in a mutually
beneficial way in the long-run. For Brehmer & Rehme (2009), KAM is a marketing
action that the organization caters for the management and the development of the
relationship in a more or less formal structure. Here in this definition it is important to
note that key account management is a relationship management that needs to be done in
a more of systematic and structured way that will be advantageous to make the
relationship robust.
Traditionally, many firms have been interpreting the “strategic importance” of a customer
by emulating following the Pareto effect paradigm (i.e., 20% of customers account for
80% of revenues) suggesting that the importance of a customer is mainly determined by
the sales volume or profits that it generates (Stevenson, 1980), a pattern that still exists
and accepted by many to be valid (Wengler, Ehret, and Saab 2006). But this approach
does not necessarily guarantee the key element of KAM which is strategic alliance. It
emphasizes on the volume of the transaction rather than the quality and capability of the
relationship that is being forged by the two which eventually drive strategic bond and
benefit for both. A number of previous works in marketing have been confirming that the
size of a customer is just one criterion for classification as key account (Pardo, 1999).
The importance of a customer is actually determined by various criteria besides purely
economic, such as status, know-how, and location (Boles, Johnston, & Gardner 1999;
Millman & Wilson 1999) and more, suggesting that a relationship with a key account is
more than a relationship with a large customer, it is a strategic alliance between the two
firms (Lambe & Spekman 1997), (Gounaris & Tzempelikos, 2013). According to which
13
the scope of KAM is to develop long-term relationships of mutual benefit. As such,
implementing KAM
represents a driver of corporate performance for suppliers because successful KAM

programs affect performance at organizational and account level, Homburg, Workman, &
Jensen (2003); Workman, Homburg & Jensen (2003). And the performance that will be
affected through KAM includes both financial and nonfinancial performance (Gounaris
& Tzempelikos, 2013).
According to Ojasalo, (2001) KAM development consists of four basic elements:

(1) Identifying the key accounts- This is the preliminary step in the ladder.
Suppliers should review current and potential customer profiles and shortlist those
that seem to have the capacity to grow in to a key account
(2) Analyzing the key accounts- After listing them down, we set on to analyzing
the information that we gathered about them including their business perspective
and strategy if possible.
(3) Selecting suitable strategies for the key accounts- The analysis is to be
followed by our own strategy formulation in a way that goes in tandem with the
key customer.
(4) Developing operational level capabilities to build, grow, and maintain

profitable and long-lasting relationships with them
14
Figure 3, Elements of KAM
Source: Ojasalo(2001)
Each of the above elements requires a set of activities and analysis from the supplier that
are well planned and communicated in the organization to be well prepared at all level,
for a better execution of the plan to the desired effect.
KAM is B2B in Nature. KAM can be understood as a relationship-oriented marketing

management approach focusing on dealing with major customers in the business-to-
business market (Ojasalo, 2001). Accordingly KAM approach tends to focus on long-
term relationships and it has both managerial and theoretical orientation. KAM’s primary
goal is typically to increase profitability and shareholder value. It has got both strategic
and operational aspects that belong to it. And both goods and services are important in
overall offering management (Ojasalo, 2001).
Mere relationship is not the type of relationship that is referred to when dealing with key
account relationship. In marketing, relational intimacy brings buyers and sellers together
15
in a common cause or emotion and sustains the key account relationship. Relational
intimacy can be defined as the investment of time and energy that produce positive
interpersonal relationships between the partners (Perry, Cavaye, & Coote (2002).
In terms of direction of orientation, KAM is more of future oriented strategic relationship

management. It is a means of managing the future, that requires a balance of objectives,
resources and opportunity (Cheverton, 1999)
2.2 . Origin of KAM
A lot of references are used to refer to the key account managers today ``Key account
manager'' or ``client manager'' is one of the most popular job titles in the area of
marketing management in companies operating in the business-to-business market.
Among academics, the term has been used by several researchers from as early as the
1970s (Ojasalo, 2001). The concept has been developing through a lot of changes that
have made up the relationship marketing order of the day.
The gradual shift that came to the market was primarily induced through a shift in the
balance of power of the market towards the customer. Due to this new order of the day,
suppliers were forced to change their approach in order to remain competitive in the eye
of the customer. Little was known about Key account management as a higher construct
even in the first half of the 90’s (McDonald & Woodburn, 2007). The change was so
rapid that it required swiftness from the suppliers’ side to adopt and live by it. McDonald
and Woodburn (2007) put this as a precedent for the ascendance of the concept of key
account management as a separate and significant discipline.
2.3. Key Account Management Orientation (KAMO)
Key account management orientation (KAMO) is the system of value set forth by the
organization to effectively apply key account management techniques and earn from the
benefits thereof, ( financial benefits and nonfinancial benefits). Gounaris & Tzempelikos
16
(2013) explain KAMO as a framework (ref. Figure 1, page 5) for depicting the system of
values that reflect the supplier’s willingness and ability to adapt and meet the unique
needs of key accounts and called this framework key account management orientation
(KAMO). Here it is made clear that the willingness only is not enough, it requires the
ability to commit the required resources as such. The Framework requires the supplier to
be willing to adopt KAM concepts and techniques to be prepared for implementation.
And the ability to implement the framework should also be there as implementing key
account management entails a commitment of additional resources to better handle the
unique and complex requirements of the key accounts.
2.4. Components of KAMO
Gounaris and Tzempelikos (2013) conceptualized a framework for KAMO that was
tested empirically. According to them KAMO has two components, attitudinal and
behavioral component. Each has got its own subcomponent called top management
commitment, market orientation, and inter-functional coordination under the attitudinal
side. The behavioral side also has three subcomponents namely, top management
involvement, ability to customization, and inter-functional coordination (Gounaris &
Tzempelikos, 2013)
2.4.1 Attitudinal Components.
Attitudinal component is the first of the two components, comprising top management
commitment, customer orientation, and inter-functional coordination as its dimensional
elements.
A) Top Management Commitment
Many companies have developed an executive sponsorship program, which formally

assigns one senior executive to key customers. These programs constitute a long-term
commitment to creating valuable relationships, but can require training for the sponsors
to fully understand the solutions that they were giving to customers, as well as metrics to
17
assess the benefits that the program brings to customers and the company (Guesalaga &
Johnston 2008)
Securing top-management commitment is critically important and it highly correlates

with customer orientation development (Kohli and Jaworski 1990). Top-management
commitment involves the demonstration of top management’s belief about the
importance of KAM (Millman and Wilson 1999). Top-management has the responsibility
to initiate and monitor the implementation of programs tailored to the needs of specific
key accounts (Millman and Wilson 1999). They are also supposed to affirm the
importance of the KAM program as a major strategic orientation for the company (Pardo,
1999).
B) Market Orientation
In comparison with the research on KAM effectiveness, significantly more conceptual

and empirical research has been done on the outcomes of market orientation. Research
conducted by Homburg & Pflesser (2000); Jaworski & Kohli (1993); Narver & Slater
(1990) are among the prominent ones. In a relativley recent attempt at integrating varying
perspectives of market orientation (behaviors vs. underlying culture), (aradarajan &
Jayachandran, 1999) characterized market orientation as a set of tangible actions that a
firm initiates as well as the underlying culture that enables a firm to keep track of demand
and supply variations in the marketplace and orchestrate appropriate responses to such
changes.
C) Inter-functional Coordination
Inter-functional coordination is the third dimension under attitudinal elements. Even

though there is an ongoing reasonable debate whether to consider inter-functional
coordination as exclusively showing market orientation (Henderson 1998), it is
particularly crucial for KAM relationships because efficient customization of the
supplier’s output (products and features, service and processes). It is fundamental in
ensuring the key account’s satisfaction (Ivens and Pardo 2007; Workman, Homburg &
18
Jensen 2003). According to Cheverton, (1999), inter-functional coordination
encompasses a well designed and defined communication system that is capable of
sharing important data and information to all concerned functional units effectively.
Inter-functional coordination also requires knowledge management (Cheverton, 1999).
This comes as result of the need for capturing information, storing it, sharing it and
putting it to use. What many organizations are calling knowledge management is
becoming a vital source of competitive advantage in the market. Those companies that
can not only ‘discover’ valuable information, but also disseminate it to those that need to
know, and put it to positive use, have a significant advantage (Cheverton, 1999).
Key account managers have to work across boundaries, but they normally have to fall
back on goodwill and good corporate citizenship to achieve their objectives. At times,
that is not enough (Cheverton, 1999). Key account managers may encounter internal
functional boundaries, and global account managers have to tackle extra barriers from
national boundaries in order to coordinate the collection of information and commitment
to business deals they are trying to negotiate across numerous countries. If each occasion
has to be approached as a new occurrence, key account manager talent will wear out very
quickly (McDonald & Woodburn, 2007)
2.4.2. Behavioral Components
Behavioral components are the second component comprising top management

involvement, ability to customization, and interfunctional support as its building
dimensional elements
A) Top Management Involvement
Thoma (2007) argues for the top management involvement by listing activities that are
necessary if taken by top management. Accordingly, top managers should engage in
customer strategy meetings, business plans development, and also support the key
19
account manager by helping him or her access the customer’s top executives as it is
relatively easier to do these things at the top.
Harro, (2006) has raised a reservation in the top management involvement in the overall
key account management initiative. He has written a series of article under the title “the
executive dilemma,” which is based on the experience of several companies
implementing the executive sponsorship program, has found out that senior executive
involvement can also be detrimental. However, Borntraeger (2006) contends that the
main benefit of having an executive sponsorship program is to build a solid relationship
and increase customer satisfaction, and that it is critical to have a good match between the
sponsor and the customer, based on the sponsor’s expertise.
Top management needed to be more involved with its key accounts in order to open
doors in the customers and to gain support internally, (McDonald & Woodburn, 2007).
As Capon (2001) said ‘Because key accounts are so important for the firm’s future, the
overall manner in which they are addressed is a serious matter worthy of top management
concern, good KAM requires consideration of several complex elements in an overall
management process.’ The delivery of commitments and innovations to key customers
will involve a much wider range of functions in the supplier organization, but that is not
the only reason why top management has to be involved. KAM carries with it
implications for potential dependency and the future of the whole business (Piercy &
Lane, 2006), and there may be no other options. In such circumstances, top management
needs to engage with KAM unequivocally, and it is curious to observe that it often fails
to do so.
Hence with a cautious approach to avoid the risk of micro-managing, top management
can certainly contribute to the KAMO practice to a better effect. Top-management
involvement is helpful in both the external relationship as well as the internal
relationship.
B) Ability to customization
20
When buyer’s investment takes place in the relational arena then the performance of key
account programs is fostered (Sharma, 2006) and develops credible commitment between
the parties and eventually supports continuing exchange with the supplier. Strategic
relationship requires meeting the complex requirements of the key account which more
often than not require the ability to customize the product, service or process to meet
them. It is very difficult to get the perception of the buyers that they are being treated as a
strategic partner in the relationship with the supplier. Meeting the complex demands of
the key account is the basic requirement for key account management to exist.
C) Inter-functional Support
Inter-functional support in key account management context refers to the extent other
departments provide the required help and support to the people responsible for managing
key accounts, (Gounaris & Tzempelikos, 2012). This is an end result or output on the
application of the inter-functional coordination of the attitudinal element set. What it can
bring about is a synergetic output of satisfying the key account, who otherwise has gotten
a complex need that can hardly be met through sales and marketing department effort
alone.
Salespeople may have very clear ideas. But what about the views of other functions, the
functions that will be called up on to support the key account process? As Cheverton
(2008) puts it, ‘perhaps you are in sales and perhaps you already think you know your
key accounts, maybe you are certain; but what if the rest of your business doesn’t seem to
see it your way?’ this is where the real need of the interfunctional support lies. If the
strategy is not owned by all concerned units, the entire effort exerted will eventually
become a futile exercise. Christopher, Payne & Ballantyne (1991), argues that
relationships outside the organization depend on the quality of relationships within it,
making the important point that strategic intent and shared internal values become part of
the product/services offered.
If the internal relationship is so important, it should be seriously considered while at the
planning stage of KAM. According to Dibb (2002), indeed, internal relationships play a
21
vital role in the planning process and participation of all the concerned units in planning
is a key indicator of its effectiveness (Phillips, Davies & Moutinho, 2001). Even if
obtaining the buy-in is difficult (Lane & Clewes, 2000), gaining internal acceptance is
critical in key account planning. It is common to hear key account managers say they do
more selling internally than in front of the customer.
According to Cheverton (1999), several factors contribute to this. A very common

obstacle to KAM is the existence of performance measures that work against a customer
orientation. These measures often reside in the functions that support the KAM effort.
For example consider production measure that is based on ensuring the maximum
utilization of machinery and other capital investment items, or a logistics and distribution
system that naturally crave regularity and order with longer lead times. However this
hardly applies to the new type of customers that we call key accounts as just-in-time
production system is becoming the order of the day.
2.5. Relationship Quality and Capability
In marketing, relational intimacy brings buyers and sellers together in a common cause or
emotion and sustains the key account relationship. Relational intimacy can be defined as
the investments of time and energy that produce positive interpersonal relationships
between the partners (Perry, Cavaye, & Coote (2002). It is a relational tool that includes
familiarity, friendship and personal confidence and this bond built through the exchange
process (Rodriguez & Wilson, 2002). Thus, relational intimacy or bonding has been
considered as an important component of relationship marketing orientation (Sin et al.,
2005; Eisingerich & Bell, 2006) which helps the long-term survival of key account
relationship (Sharma, 2006).
In the key account relationship greater commitment is required to ensure the greater
performance of key account management approach and relational intimacy leads to a
greater commitment to maintain the relationship between buyer and seller ( Yim et al.,
2008).In this regard, Sharma (2006) states that strong personal relationship generates the
22
relationship-sustaining factors like trust and commitment. Furthermore Sharma (2006)
explains that a large number of key account relationships are sustained through strong
social and personal bond that means through relational intimacy between buyer and seller
personnel.
Relationship capability is also equally important in relationship management. According

to Ivens & Pardo (2007) the supplier companies have gotten a power that can be
translated in to key in terms of their competiveness in the eye of their Key Accounts.
This would make the supplier company an important asset to the buying company and
eventually leads both to a win-win relationship. This concept is also supported by
Newbert, (2007) as he believed that the resource allocated to the buyer to make them to
be competitive in their market, will eventually make the supplier company an important.
This will create an important key competency ingredient to the supplying company. The
is exactly what nourishes the relationship and keeps it alive while making it difficult for
other competitors that have a n interest in the account.
2.6. Outputs of KAMO
All the efforts that have been put in place should be somehow justified with something
that the supplier gets in return. KAM is proven to be rewarding to the organization that
opted to apply it both in terms of financial returns and nonfinancial benefits, Gounaris
and Tzempelikos (2013).
2.6.1. Financial Performance
The first thing that a relationship based selling could do is repeat order. Repeat order
refers to the continuation of purchasing goods and services from an organization
(Molinari, Abratt, & Dion, (2008) by key account customer. Through the performance of
key account management approach suppliers can be more aware about the customer’s
requirements and able to meet those requirements with more customized attention that
eventually ensuring the repeat purchase.
23
Homburg, Giering & Menon (2003) argue that, in general, if a customer’s expectations
for the required attributes are met by the seller, the customer will be less likely to search
for a replacement alternative, thus ensure repeat purchase.
2.6.2. Nonfinancial performance
The benefits to KAM planning goes beyond the financial benefits it actually enriches the
relationship in a synergetic fashion and create an environment which is more conducive
for increased performance. According to Lynette Ryals and Beth Rogers, (2007), the
nonfinancial benefits included: Better customer understanding, New thinking, Customer
involvement and buy-in, Sharing of information, Formulation of strategy, Guidance for
implementation, Learning, Better management overview, and customer portfolio
management
2.7. KAMO vs. Market Orientation
These tow concepts are often taken as synonymous with each other and often KAMO is
taken as an extension of the endeavors of market orientation. Hence the need to give
some groundwork in clarifying the two becomes important. The concept of Key account
management and market orientation seem somehow similar at face value. However when
we critically look in to their attributes and what they really refer to, we come to know that
they are not as such identical. Customer-oriented culture, traditionally, captures the
supplier’s focus on the overall customer basis without differentiating between key
accounts and other, average, customers (Homburg et al. 2002). Differentiating the
customer base in to key, average and transactional is the key to differentiating between
the two. We can adapt market orientation to all the customers that the company could
possibly have, whereas, only those customers with strategic importance could be
considered to be key accounts. In the conceptual model developed by Gounaris and
Tzempelikos (2013) market orientation is put just as one attitudinal component (figure 1).
24
Accordingly it is easy to see that Key account management goes way beyond from being
just market oriented.
2.8. Increasing complexity of key account relationships
Building and running a sound key account management plan is not as easy as it seem at
first. A lot of factors make the process ever complicated hence apart from the planning
phase; it requires a real-time and rigorous monitoring of the strategy. McDonald and
Woodburn (2007) have come up with the list below as a summary of the factors that
make the key account management relationship more of a complex one.
• The consolidation of customers into large, multidivisional companies
• The consolidation of customers leading to the adoption of dual roles: the customer
may be ’competitor’ as well as ‘client’
• The development of global businesses that demand global supply
• The accelerating pace of change, particularly as new IT reshapes markets
• The emphasis on strategic alliances as a fast and flexible, but less clear-cut,
approach to growth
2.9. Considerations and Implication of KAMO implementation.
As much as it has numerous benefits, KAM also has got some important aspects to be
carefully considered for its proper adoption and implementation. We should also find out
its implication before and after implementation.
2.9.1. Need for Additional Resource Allocation related
Adopting customer orientation for a supplier practicing KAM means paying more
attention in satisfying key account’s needs even if this is translated in dedicating fewer
resources and attention to the other average customers (Piercy & Lane 2006). This
additional requirement in terms of resource deployment due to the adaption of key
account management comes at significant increase in terms of cost and time. Hence the
long term benefit should justify the additional resources deployed (Gounaris and
Tzempelikos (2012). If the strategic return over time cannot justify the allocation of
additional resources, it will be very difficult to practice key account management.
25
2.9.2. Other Implications Of KAM
Some issues are worth pondering while assessing KAM. According to Cheverton (1999)
however far you intend to take KAM in your business, the following three implications
will almost certainly have occurred to you by now:
1. How many key accounts can you have?

Everything we have said so far would tend to suggest that key accounts are relatively
small number. How would you go about the following?
– If you are to prioritize your resource on these customers,
– If you are to behave differently,
– If you are to allow their needs to drive your business processes, etc.
2. How should you use your team?

This is really the heart of KAM in practice. Asking who is in your team, how should they
be used and what help will they require? How are you to solve any potential conflict in
the team, conflict with their specific objectives etc are crucial.
3. How will KAM impact on the running of the business?

Depending on how far you wish to take it, KAM might be anything from a sales initiative
(rarely successful!) through to a revolution in how you run your business. Just how far do
you wish KAM to change the way you operate?
26
2.10 Conceptual Model
Attitudinal Components
Top Management
Commitment
(Preparation)
Customer Orientation
Key Account Management

Inter-functional
Orientation (KAMO)
Coordination
Attitudinal Components
Top Management
Involvement
(Preparation)
Ability to
Customization
Inter-functional
Support
Figure 4, Conceptual Model
Adopted from Gounaris and Tzempelikos (2012)
27
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter deals with the research design and methodology deployed in conducting the
research. The research population will be presented along with the method of selection of
the sample. The collection instrument and the method of analysis and techniques of
analysis are all discussed in this chapter.
3.2 Research Design

A descriptive research design and quantitative research approach with descriptive and
inferential statistics were used in conducting this study. The study measures the key
account management orientation (KAMO) dimensions (customer orientation, top
management commitment, inter-functional coordination, ability to customization, top
management involvement, and inter-functional support) of the IATA travel agencies in
Ethiopia, and tries to find out the usability o the model in their market.
3.3 Population and Sampling Techniques

The sampling techniques applied in this research are judgment sampling that was
followed by quota sampling as explained below.
The populations of the research are IATA travel agencies that are operational in Ethiopia.
Non-IATA travel agencies are excluded due to their relative newness and lack of the
necessary input for relationship based account management. Out of the total of 92 IATA
accredited agencies in the period of May2013 up to April 2014, six of them had defaulted
at some time during this period for payment settlement and other reasons, and they were
no longer IATA member. Hence they were also excluded from the research. Based on the
researchers own personal expert knowledge in the market, and from the informal
28
discussions conducted with top travel agency owners, managers, and senior airline staffs
of Emirates, Lufthansa, Turkish Airlines, Ethiopian airlines, Galileo (sole provider of
computerized reservation system in Ethiopia) agencies with at least ‘zero’ sales in the
period stated above were also excluded, leaving us with 64 agencies to be available for
the research.
Two predesigned research questionnaires were distributed to the 64 agencies to be

responded to by one management group and one non-management group. This is done
for two possible reasons. One is minimizing the risk of personal bias of the respondents
while responding to the questions regarding their specific tasks in the agency. For
example, a manager may take a biased stand towards his/her commitment level and
involvement level, whereas the supervisor or senior agents may take the same stand while
responding to the ability to customization or inter-functional support part of the
questionnaire. The other reason is to help the research in getting fair representation of the
two groups in order to check hypothesis 1
3.4 Data Source and Collection Instrument

Primary data that was collected through a structure questionnaire survey from a sample
size of 107 respondents was used in this research. Of the total expected sample size based
of the design 107 were collected, which is 84% response rate.
A structured questionnaire adapted from the work of Gounaris and Tzempelikos (2012)
was used after modification based on discussions held with stakeholders. The
questionnaire has two parts. The first part was designed for collection of demographic
data of the respondent and it consists of three questions, and the second part of the
questionnaire comprises 33 key account management orientation items in a 5 point Likert
scale starting from 1= “strongly disagree” to 5=”strongly agree”
3.5 Procedure of Data Analysis

Two questionnaires were distributed to each travel agency that is included in the survey,
one to be filled out by the management group and the other one by the non-management
29
group of the travel agency. By the 12th of May 107 questionnaires were collected back
which is a response rate of 84%.
3.6 Analysis techniques

Data was analyzed by using statistical software called SPSS version 21. Descriptive and
inferential statistics instruments like mean, frequency, correlation, One-Way ANOVA,
and multiple linear regressions were deployed at different levels to achieve the research
objective by testing the hypotheses in the first chapter.
3.7 Reliability and Validity
3.7.1 Reliability
The scale was tested using SPSS’s reliability and internal consistency testing tool called
Cronbach’s Alpha. The result of this test for all dimensions and the KAMO practice
practice by the travel agencies turned out to be above the cutoff point of 0.7, with the
least them being 0.710. The KAMO practice reliability was 0.920. Output levels of 0.7
and above are considered to be internally consistent and hence, reliable.
3.7.2 Validity
The research uses key account management orientation (KAMO) model that was
developed and empirically tested in Greece in 2012. According to the original researchers
Gounaris and Tzempelikos (2013) the research is the first of its kind in terms of
determining and empirically testing the KAMO model.
The same model is used in the research with no modification to find out if it fits to the
relationship marketing practiced by the travel agencies in Ethiopia.
3.8 Ethical Considerations

In order to have unbiased and representative response, the respondents were clearly
assured in the questionnaire that their response will be kept confidential and will only be
30
used for the attaining the research objectives. The respondents were clearly indicated in
the covering letter of the questionnaire that they have the option of keeping their
anonymity.
CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 Introduction
In this chapter results of the statistical analysis are presented and based on the outcome of
the analysis, discussion will be made. It begins by explaining the demographic
characteristics of the study, the reliability test, and mean scores of the construct. This will
be followed by a correlation analysis of the KAMO dimension and KAMO practice
result. Finally, the hypothesis will be tested using multiple regressions.
4.2 Demographic Analysis of the Respondents
31
Source: Own survey (2014)
Table 4.1Demographic Distribution of Respondents
Gender of Respondents Frequency Percent

Female 68 63.6
Male 39 36.4
Total 107 100.0
Education Frequency Percent
Completed High School 3 2.8
College Diploma 25 23.4
B.A and Above 79 73.8
Total 107 100.0
Designation Frequency Percent
Manager 51 47.7
Supervisor/Sr. Agent 56 52.3
Total 107 100.0
32
A total of 128 questionnaires were distributed to 64 travel agents (two questionnaires per
agency) that were selected based on no zero sales reported from May 2013 up to April
2014, a total of 107 was collected and used to make the analysis. This represents a
response rate of 84%.
The demographic profile of the respondents’ shown above in table 4.1 indicates that, out
of the 107 total respondents, 68 were female and 39 of them were male, representing 64%
and 36% of the total respondents respectively. Significant majority of the respondents are
holders of at least a diploma and only 3% of the respondents have completed high school.
Those respondents with at least a collage diploma account for 79%.
The respondents were broadly classified into two groups; owner/managers and
supervisor/senior agents. This is done to check the spread of their response if there is a
marked difference between them in their KAM orientation. Of all the questionnaires
collected from respondents, 48% of them were responded to by managers/owners and the
remaining 52% were responded to by senior agents/Supervisors.
4.3 Reliability Test
Reliability test was conducted to check the internal consistency between the constructs
and the variables used in the questionnaire. Cronbach’s Alpha takes the average of all
possible split-half measures that result from different ways of splitting the scale items.
The coefficient value can range from 0 to 1, and, in most cases, a value of less than 0.6
would typically indicate marginal to low (or unsatisfactory) internal consistency (Joseph
F. Hair, Jr., Robert P. Bush, David J. Ortinau, 2003). However a Cronbach’s alpha of 0.7
and above is mostly used as an indicator of the existence of internal consistency
(Nunnaly, 1978).
33
4.3.1 Overall Reliability Test
Ta b le 4.2 Overa ll Re lia bility Sta tis tic s
Cronbach's
Alpha N of Items
.920 33
As shown in the table 4.2 above, the overall reliability test for all the 33 KAMO attributes
under the six dimensions (customer orientation (5 items), top management commitment
(5 items), inter-functional coordination (4 items), ability to customization (5 items), top
management involvement (5 items), inter-functional support (3 items)) and the KAMO
practice Practice dimension (6 items), showed a Cronbach’s Alpha coefficient of 0.920
(higher than the acceptable cutoff point of 0.7). This implies that the dimensions of
various items/attributes show a true measure of KAMO with a high degree of internal
consistency of the attributes. Therefore the KAMO dimensional model is a reliable tool in
measuring KAMO of the travel agents under this study.
4.3.2 Reliability Test of Variables
A reliability test was carried out on all the variables involved, independent and dependent
alike using Cronbach’s alpha. The table below is the result of the analysis
Table 4.3 Reliability Statistics of the Variables
Variables Cronbach's Alpha N of Items

CO .710 5
TC .824 5
IC .732 4
AC .761 5
TI .778 5
IS .727 3
KM .745 6
Source: Own Survey (2014)
34
From table 4.3 we can see all the independent variables, customer orientation (CO), top
management commitment (TC), inter-functional coordination (IC), ability to
customization (AC), top management involvement(TI), and inter-functional support (IS),
have resulted in a Cronbach’s alpha that is greater than 0.70; hence they are internally
consistent and reliable. The dependent variable, KAMO practice also has resulted in a
Cronbach’s alpha of 0.745; hence it is also internally consistent and reliable.
Tom management commitment scored the highest reliability output with a Cronbach’s
alpha of 0.824, and customer orientation has resulted in the lowest score of 0.710.
Therefore all the reliability tests conducted overall, and on individual variable basis
found out to be internally consistent and reliable.
4.4 Analysis of the Mean Score of the Variables
The mean score, which is the actual calculated arithmetic average value based on interval
or ratio data of the drawn sampling units (Joseph F. Hair, Jr., Robert P. Bush, David J.
Ortinau, 2003) of the dimension on the KAMO model dimensions and KAMO practice
is presented in the table 4.10 below.
Ta b le 4.4 Me a n Sc o re o f th e Dim e n s io n s a n d KAMO pra ctic e

Std.
Mean Deviation N
KM 4.24 .392 107
CO 4.47 .454 107
TC 4.21 .642 107
IC 4.14 .599 107
AC 4.25 .526 107
TI 4.16 .477 107
IS 4.45 .516 107
The mean score table 4.10 above shows the mean score of the respondents observation of
the KAMO dimensions and the KAMO practice . Customer orientation has gotten the
35
highest mean score of 4.47, and inter-functional coordination scored the lowest mean
score of all dimensions. All the other variables lie somehow in between these two
extreme means. All the mean values are at the highest side for a Likert Scale of 5. An
implication of these mean score affirms that all the dimensions of KAMO are important,
and are viewed as such by the travel agencies.
4.5 Correlation Analysis
Among the statistical tools employed in this study is correlation analysis. Correlation
analysis investigates the strength and direction of relationship of the variables under the
spotlight. Pearson correlation was used to provide evidence of convergent validity. The
Pearson correlation coefficient measures the degree of linear association between two
variables. It varies between –1.00 and +1.00, with 0 representing absolutely no
association between two variables, and –1.00 or +1.00 representing a perfect link
between two variables. The higher the correlation coefficient, the stronger the level of
association. Joseph F. Hair, Jr., Robert P. Bush, & David J. Ortinau, (2003). According
to Marczyk, Dematteo & Festinger, (2005) , general guideline for correlation, correlation
coefficient of .01 to .30 are considered small, correlation coefficient of .30 to .70 are
considered moderate, correlation coefficient of .70 to .90 are considered strong, and
correlation coefficient of .90 to 1.0 are considered very strong. Based on this assumption,
all dimensions of KAMO were correlated to the independent variable which is KAMO
practice . The table below shows the outcome of the correlation.
36
Ta b le 4.6Co rre lation s
CO TC IC AC TI IS KM
Pearson
Correlation 1 .290** .265** .417** .307** .258** .544**
CO Sig. (2-tailed) .002 .006 .000 .001 .007 .000
N 107 107 107 107 107 107
Pearson ** ** ** **
Correlation 1 .560 .505 .485 .295 .791**
TC Sig. (2-tailed) .000 .000 .000 .002 .000
N 107 107 107 107 107
Pearson
Correlation 1 .503** .330** .101 .715**
IC Sig. (2-tailed) .000 .001 .302 .000
N 107 107 107 107
Pearson ** ** **
Correlation 1 .498 .304 .791
AC Sig. (2-tailed) .000 .001 .000
N 107 107 107
Pearson
Correlation 1 .129 .635**
TI Sig. (2-tailed) .185 .000
N 107 107
Pearson
Correlation 1 .453**
IS Sig. (2-tailed) .000
N 107
Pearson
Correlation 1
KM Sig. (2-tailed)
N
**. Correlation is significant at the 0.01 level (2-tailed).
From the Pearson correlation result we can observe that all the 6 dimension of KAMO
are positive and significant at p <0.01. Among the independent variables, customer
orientation and top management involvement, have got a moderate correlation and the
remaining independent variables, top management commitment, inter-functional
coordination, and ability to customization resulted in a strong positive correlation. All
the correlation between the explanatory variables are also found to be all positive. Except
for correlation between inter-functional coordination and inter-functional support, and
37
between top management involvement inter-functional support, all correlations are
significant at p<0.01.
4.6 One-Way ANOVA
Analysis of variance (ANOVA) is used to determine the statistical difference between

three or more means (Joseph F. Hair, Jr., Robert P. Bush, David J. Ortinau, 2003). In
order to investigate if there is marked difference in terms of the KAMO practice between
the two broad demographic groups based on their designation, namely management
group which includes, owners, managers, and the non-management group which
includes, supervisors and senior agents, of the travel agencies, one-way ANOVA was
employed in the research.
4.6.1 ANOVA of Demographic group with KAMO practice
Ta b le 4.6 On e-Wa y ANOVA
Sum of Mean
Squares df Square F Sig.
Between
Groups .085 2 .042 .272 .762
Within
Groups 16.174 104 .156
Total 16.259 106
Based on the result of the Own-Way ANOVA above, there is no statistically significant
difference in the KAMO practice for the two demographic groups.
Hypothesis 1:
HO: There is no statistically significant difference on KAMO practice , based on
the designations of the respondents
HA: There is statistically significant difference on KAMO practice when the
designation changes
38
Decision: F=0.272, and P= 0.762 (p>0.05), Ho Accepted
4.7 Regression Analysis
Regression analysis is a statistical technique that uses information about the relationship
between an independent or predictor variable and a dependent or criterion variable, and
combines it with the algebraic formula for a straight line to make predictions. Particular
values of the independent variable are selected, and the behavior of the dependent
variable is observed (Joseph F. Hair, Jr., Robert P. Bush, David J. Ortinau, 2003).
An important factor to note and check before conducting a multiple regression is whether
there is a problem of multicollinearity among the predictors. According to Hair, Bush, &
Ortinau (2003), muticollinearity is a situation in which several independent variables are
highly correlated with each other. What this means is if mulitcollinearty is a problem it
means that it is difficult to find out the independent coefficient while holding the other
predictors constant.
To assess multicollinearity we look at the sizes of the Tolerance and VIF. For the
tolerance small values indicate the absence of collinearity. The VIF is the inverse of
tolerance, so we look for large values. If the tolerance value is smaller than .10, we
conclude that multicollinearity is a problem. Similarly, if the VIF is 10 or larger, then
multicollinearity is a problem. This being the case, there are no problem of
multicollinearity amongst the independent variables of this research. Result of the
multicollinearity test is attached in Appendix II.
4.7.1 Key Account Management Orientation and its Dimensions
Table 4.7 KAMO as explained by its Dimensions, model Summary

Mo d el S umm a ry
Adjusted R Std. Error of

Model R R Square Square the Estimate
1 .975
a
.950 .947 .090
a. Predictors: (Constant), IS, IC, TI, CO, AC, TC
b. Dependent Variable: KM
39
As can be seen from table 4.13 above, 95% of the variability in KAMO is explained by
the six KAMO dimension (customer orientation, top management commitment, inter-
functional coordination, and ability to customization, top management involvement, and
inter-functional support). This is highly suggestive of the adaptability of the model in
developing and implementing KAM in travel agencies in Ethiopia.
4.7.2 Multiple Regression
Multiple regression analysis is a statistical technique which analyzes the linear

relationships between a dependent variable and multiple independent variables by
estimating coefficients for the equation for a straight line. (Joseph F. Hair, Jr., Robert P.
Bush, David J. Ortinau, 2003).
Accordingly this research deploys this technique by making the KAMO practice as
dependent variable and the six KAMO dimensions as independent variables. The table
below shows for the result of the multiple regression analysis.
Table 4.7 Multiple Regression Result
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta T Sig.

(Constant) -.059 .117 -.506 .614
CO .138 .022 .160 6.367 .000
TC .183 .019 .299 9.809 .000
IC .185 .019 .283 9.859 .000
AC .211 .023 .284 9.342 .000
TI .150 .022 .183 6.676 .000
IS .140 .019 .185 7.570 .000
Dependent Variable: KM
40
As depicted on table 4.7 the independent variables (customer orientation, top
management commitment, inter-functional coordination, ability to customization, top
management involvement, and inter-functional support) have gotten a significant positive
relationship with the KAMO practice at 99% confidence level (p<0.01) .
Top management commitment accounts for the highest beta coefficient of (B=0.299),
with a statistically significant level of p value of (p<0.01).
Hypothesis 2:
Ho: Top management commitment is not at the core of KAMO practice of travel
Ha: Top management commitment is at the core of KAMO practice of travel
Decision: at B=0.299 at (p<0.01), Ha Accepted
Top management commitment should be in place to make the overall effectiveness of

KAMO of the travel agency. Hence top management should play a leading role and set an
example in affirming the importance of KAM, and should demonstrate a higher level
commitment in terms of allocating the necessary resources. Top managements also have
to make sure that all units are on the same page in understanding the importance of the
key accounts.
Ability to customization is the second highest independent variable in terms of statistical

significance at (p<0.01)
Hypothesis 3:
Ho: Ability to customization is not at the core of KAMO practice of travel
Ha: Ability to customization is at the core of KAMO practice of travel agencies
in Ethiopia
Decision: at B=0.284 at (p<0.01) Ha Accepted
41
The result shows that for a successful KAMO, travel agencies should possess an ability to
quickly adjust the product in accordance with the needs of their customer. This may
require the adaptation of new or improved processes and a higher level of information
sharing with key accounts.
Inter-functional coordination scored very close to ability to customization in terms its

beta coefficient of B=0.284 at statistical significance at (p<0.01)
Hypothesis 4:
This outcome attests the importance of the inter-functional coordination in the KAMO
practice s of the travel agencies in Ethiopia. All units of the travel agency, that in one
way or another get involved in the management of the key accounts should integrate and
synchronize to meet and exceed the needs of key accounts. They need to realize that their
inputs, no matter big or small, are important in the eye of the customer, and their absence
will be felt by the customer and adversely affect the overall outcome.
Inter-functional support also comes out to be statistically significant at (p<0.01) with a

beta coefficient of B=0.18
Hypothesis 5:
This result affirms the importance of the inter-functional support amongst different units
of the travel agency as an important part of their KAMO endeavors. The support is the
42
result of a system of coordination set forth during the planning phase of the KAMO. The
support could be transactional and/or strategic. It may require the functional units that are
involved in the KAMO to see the bigger picture than focusing on achieving their unit’s
objectives only.
Top management involvement in the KAMO dimension has resulted very close to inter-
functional support with statistically significant at (p<0.01) with a beta coefficient of
B=0.183
Hypothesis 6:
Ho: Top management involvement is not at the core of KAMO practice of travel
Ha: Top management involvement is at the core of KAMO practice of travel

Based on this result, top management is expected not only show commitment to the
KAMO practice s, but also involve in the implementation as it is found to a factor in
determining success. In order to make the KAMO practice successful, top management
should allocate the necessary resources, monitor the level on KAMO in the different units
of the agency, should involve initial designing, implementation, and properly reward for
the employees as applicable.
Finally, the effect customer orientation of the travel agency was found to be statistically
significant at (p<0.01) level with a beta coefficient of B=0.160
Hypothesis 7:
Ho: customer orientation is not at the core of KAMO practice of travel agencies
in Ethiopia
Ha: customer orientation is at the core of KAMO practice of travel agencies in
Ethiopia
43
Customer orientation is also seen to be an important dimension of KAMO of travel
agencies in Ethiopia. Hence a successful KAMO practice should integrate need
assessment of the customers, come up with a product that meets and exceeds the needs
and continuously monitor the satisfaction level of the customers.
44
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS
5.1 Summary of Findings
It is an observed fact that travel agencies in Ethiopia are deploying an element of KAM in
their marketing and sales endeavors. The research was aimed at finding out how far the
dimensions as developed in the KAMO model are put in to use. All the findings of the
SPSS statistics tool that were used in the research came out with larger suggestion that
the model developed by Gounaris & Tzepelikos (2012) is adaptable by the travel
agencies. The major findings of the research are summarized below.
• The reliability and internal consistency of all variables used in the questionnaire
that were used to collect the data for their respective construct were found to be
reliable, using a statistical tool called Cronbach’s Alpha.
• All the six dimension of KAMO, which are customer orientation, top
management commitment, inter-functional coordination, ability to customization,
top management involvement, and inter-functional support are found to be highly
practiced in the key account management orientation of the travel agents surveyed
in this research, all with a mean score of above 4 in a 1-5 Likert scale.
• The Pearson correlation analysis done to measure the strength and direction of the
relationship of the independent variables namely, customer orientation, top
management commitment, inter-functional coordination, ability to customization,
top management involvement, and inter-functional support with the dependent
variable, KAMO practice , came out to be all positively correlated with significant
level at p <0.01. Of the six independent variables, top management commitment,
inter-functional coordination, and ability to customization were strongly
correlated the independent variable, KAMO practice , with a correlation
45
coefficient of above 0.7. The remaining three dimensions, customer orientation,
top management involvement, and inter-functional support resulted in a moderate
positive relationship.
• The One Way ANOVA result shows that there is no statistically significant
difference between the management groups in the travel agencies with that of the
non-management groups.
• The output of the multiple regression analysis can be summarized into two broad
groups. The first one is the test of model summary that turns out to be 95% of the
changes in KAMO can be explained by the six dimensions of the KAMO model.
The second major finding is that, based on their beta coefficient level and their t
values which are higher than the cutoff point with a statistical significance at (p<
0.01), all dimensions are found to be very important for KAMO of the travel
agents in Ethiopia.
46
1.2 Conclusion
This study primarily focused on finding out if the KAMO dimensions that were
conceptualized and developed into KAMO model in Greece by Gounaris & Tzepelikos
(2012) are applicable in the key account management endeavors of travel agencies in
Ethiopia. Key Account Management is a relatively recent concept in the business to
business marketing arena. Traditionally KAM has been viewed as the responsibility of
the sales managers or account managers of large accounts. But KAM goes beyond
technique of selling. Recent developments in the area suggest that KAM is actually an
application of relationship marketing in a business market. The basic concept behind
relationship marketing in business marketing goes well beyond mere transaction. It is
actually coming up with and maintaining strategic relationship with the account. This
approach eventually will create a mutually benefiting, robust relationship between the
buyer and seller.
All the analysis done in this research indicate that for travel agencies in Ethiopia, KAMO
model is well explained by the six dimensions of customer orientation, top management
commitment, inter-functional coordination, ability to customization, top management
involvement, and inter-functional support, implying travel agencies in Ethiopia can adopt
the model.
The model is also found to be applicable to all the managerial and non-managerial
designations which will make it even more attractive to adopt and make proper use of, for
better financial and non-financial results.
47
1.3 Recommendations
Based on the findings of the research and the conclusions drawn from it, the following
recommendations are suggested to travel agencies in Ethiopia that have already
implemented, or are planning to implement key account management as a marketing tool.
• In order to have an effective key account management, all the concerned

functional units of the travel agency should be integrated in a set of system that
avoids conflict of interest and they should take part from the inception as they
ought to own the plan. This is to mean that all units in managerial and non-
managerial positions alike should clearly understand what is expected of them
for the overall effectiveness of the KAMO scheme, which is the bigger picture
here.
• An excellent key account management plan includes both aspects of the KAMO
dimension, namely the attitudinal dimension, which explains the desire and
preparation part of the plan, and the behavioral dimension of KAMO, which
deals with the implementation aspects, for its success. As explained in the
literature review section of this research, the attitudinal part of the dimension
shows the readiness, and the behavioral part of the dimension is the
implementation part of the model. The behavioral part is unique in the sense that
it is actually what is perceived by the key customer. This is however not to
imply that the attitudinal part is not as such important. It is the attitudinal part
that eventually results in the behavioral dimension. Therefore for the overall
effectiveness of KAMO, travel agencies should have both the attitudinal and the
behavioral dimensions of KAMO, as one is nothing without the other one.
• Management should be ready to accept additional costs that are associated with
the implementation of the model. This is mainly due to the fact that in trying to
48
meet the unique needs of the key account as explained in the literature and the
dimension of KAMO, customization of products, process and resource may be
required, and that doesn’t come without cost. As a strategic marketing
technique, the benefits may not be realized in the short run. Therefore travel
agencies should expect a cost increase in the short run to avoid a premature
withdrawal from the scheme.
49
REFERENCES
Caceres, R. and Paparoidamis, N. 2007. Service quality, relationship satisfaction, trust,

commitment and business-to-business loyalty. 41 (7/8), pp. 836--867.
Cheverton, P. 2008. Key account management. London: Kogan Page.
Cheverton, P. 2006. Global account management. London: Kogan Page Ltd..
Cheverton, P. 2004. Key account management in financial services. Sterling, VA: Kogan
Page.
Cheverton, P. 2002. How come you can't identify your key customers?. London: Kogan
Page.
Cheverton, P. 1999. Key account management. London: Kogan Page Limited.
Dibb, S. 2002 Marketing Planning Best Practice. Marketing Review, 2 (4), Summer
2002, 1-20.
Gil-Saura, I., Frasquet-Deltoro, M. and Cervera-Taulet, A. 2009. The value of B2B

relationships. 109 (5), pp. 593--609.
Gosselin, D. and Bauwen, G. 2006. Strategic account management: customer value

creation through customer alignment. 21 (6), pp. 376--385.
Gosselin, D. and Bauwen, G. 2006. Strategic account management: customer value

creation through customer alignment. 21 (6), pp. 376--385.
Gounaris, S. and Tzempelikos, N. 2013. Key Account Management Orientation and Its
Implications: A Conceptual and Empirical Examination. 20 (1), pp. 33--50.
Guesalaga, R. and Johnston, W. 2010. What's next in key account management research?
Building the bridge between the academic literature and the practitioners' priorities.
50
39 (7), pp. 1063--1068.
Hair, J., Bush, R. and Ortinau, D. (2003). Marketing research. 1st ed. Boston:
Graw-Hill.
Homburg, C., Workman Jr, J. and Jensen, O. 2002. A configurational perspective on key
account management. 66 (2), pp. 38--60.
Liu, B., Petruzzi, N. and Sudharshan, D. 2007. A service effort allocation model for
assessing customer lifetime value in service marketing. 21 (1), pp. 24--35.
Liu, B., Petruzzi, N. and Sudharshan, D. 2007. A service effort allocation model for
assessing customer lifetime value in service marketing. 21 (1), pp. 24--35.
Mcdonald, M., Millman, T. and Rogers, B. 1997. Key account management: theory,
practice and challenges. 13 (8), pp. 737--757.
Mcdonald, M., Rogers, B. and Woodburn, D. 2000. Key customers. Oxford: Butterworth-
Heinemann.
Ojasalo, J. 2001. Key account management at company and individual levels in business-
to-business relationships. 16 (3), pp. 199--220.
Perry, C., Cavaye, A. and Coote, L. 2002. Technical and social bonds within business-to-
business relationships. 17 (1), pp. 75--88.
Piercy, N. and Lane, N. 2006. The underlying vulnerabilities in key account management
strategies. 24 (2), pp. 151--162.
Ryals, L. and Davies, I. 2013. Where's the strategic intent in key account relationships?.
28 (2), pp. 111--124.
Ryals, L. and Rogers, B. 2007. Key account planning: benefits, barriers and best practice.
15 (2-3), pp. 209--222.
Storbacka, K. 2012. Strategic account management programs: alignment of design
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elements and management practices. 27 (4), pp. 259--274.
Ward, T. and Dagger, T. 2007. The complexity of relationship marketing for service
customers. 21 (4), pp. 281--290.
Woodburn, D. and Mcdonald, M. 2011. Key account management. Chichester, West

Sussex, U.K.: Wiley.
Workman, J., Homburg, C. and Jensen, O. 2003. Intraorganizational determinants of key

account management effectiveness. 31 (1), pp. 3--21.
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services. 45 (6), pp. 741--756.
52
APPENDIX
53
Appendix-I
Addis Ababa University School of Graduate Studies, School of Commerce
Questionnaire (English Version)
Dear Respondent,
My name is Alemayehu Teressa. I am conducting a research for fulfillment of my Master of Arts

Degree in Marketing Management at the School of Commerce, Addis Ababa University.
I kindly request you to fill all questions in this questionnaire in order to help me collect the most
important pieces of information regarding Key Account Management Orientation, KAMO in
Travel Agencies in Ethiopia.
I am grateful for you for taking your valuable time to respond to the questionnaire. I would like
to assure you that all your responses will be kept confidential and will only be used for research
purpose. You can contact me through my cell phone +251-911-505404 or email me at
foralext@gmail.com
Part I: General Information

In answering this part of the questionnaire, please use tick () mark in the boxes provided.
1. Gender
Female Male
2. Educational Background
Completed High School College Diploma B.A. Degree & Above
3. Designation:
Owner/Manager Supervisor/Sr. Agent
Part II: Specific Information

54
Customer Orientation Strongly Strongly
Agree Neutral Disagree
Agree Disagree
This part of the questionnaire is intended to collect information related to the topical area of
the research which is Key Account Management Orientation, KAMO in Travel Agencies in
Ethiopia.
55
1 Satisfying the needs of our accounts is a major objective for
5 4 3 2 1
us
2 We always monitor the extent that we satisfy our accounts’

5 4 3 2 1
need
3 We try to deliver superior value to our accounts through our

5 4 3 2 1
products/services
4 We frequently measure the level of satisfaction of our

5 4 3 2 1
accounts
5 We pay a lot of attention on the after-sale service of our

5 4 3 2 1
accounts
Top Management Commitment Strongly Strongly

Agree Disagree
1 Top management affirms the importance of key account

management as a major strategic orientation for the 5 4 3 2 1
company
2 Top management sets an example on key account

5 4 3 2 1
management for the rest of the organization
3 Top management closely overviews all the activities

5 4 3 2 1
concerning the management of our accounts
4 Top management has no hesitation to spend a lot of

time/cost in order to contribute in the management of our 5 4 3 2 1
accounts
5 Top management always stresses the importance that all

5 4 3 2 1
units can contribute in developing value to our accounts
Strongly Strongly
Interdepartmental Coordination Agree Agree Neutral Disagree Disagree
1 All units in the travel agency share information with regard

5 4 3 2 1
to accounts
2 All units in the travel agency realize that can contribute in the
5 4 3 2 1
delivering of superior value to accounts
3 All units in the travel agency are willing to contribute when a

5 4 3 2 1
problem of an account occurs
56
4 There is integration among the different units of the travel
5 4 3 2 1
agency in order to satisfy the accounts’ needs
Strongly Strongly
Ability to customization Agree Agree Neutral Disagree Disagree
1 We adapt our products/ services according to our accounts’

5 4 3 2 1
needs
2 We respond immediately to our accounts’ problems 5 4 3 2 1
3 We adapt the level of our service quality according to our

5 4 3 2 1
accounts’ needs
4 We adapt our internal processes in order to meet our

5 4 3 2 1
accounts’ needs
5 We frequent and informally communicate with our accounts

5 4 3 2 1
Strongly Strongly
Top-management involvement Agree Agree Neutral Disagree Disagree
1 Top management allocates the required resources (money,

5 4 3 2 1
time, personnel) for the key account management function
2 Top management systematically monitors the key account

5 4 3 2 1
management function within the company
3 Top management interprets, when necessary, in order to find

5 4 3 2 1
solutions to problems that our accounts face
4 Top management actively participates in the designing of

5 4 3 2 1
activities regarding our accounts
5 Top management compensates/ rewards the actions and

initiatives that lead to the development of the relationships 5 4 3 2 1
with our accounts
Inter-functional support Strongly Strongly

Agree Disagree
1 The other units contribute when needed for improving the

5 4 3 2 1
management of our accounts
57
2 The managers who are responsible for managing our
accounts shouldn’t have to try hard in order to obtain help 5 4 3 2 1
from other units regarding our accounts
3 The key account is viewed as ‘competitor’ by other functional

5 4 3 2 1
units
Strongly Strongly
Overall, how do you rate KAMO in your travel agency Agree Neutral Disagree
Agree Disagree
1 It is correct to overall conclude that your agency is market

5 4 3 2 1
oriented
2 Overall, top management shows commitment to key account

5 4 3 2 1
management
3 In general there exists inter-functional Coordination in our

5 4 3 2 1
travel agency
4 Overall there exists ability to customize our offerings in our

5 4 3 2 1
travel agency
5 Overall top managements of our agency get involved in key

5 4 3 2 1
account activities
6 All in all, there exists an inter-functional support in our travel

5 4 3 2 1
agency
THANK YOU!!!
58
Appendix-II
SPSS Analysis Results
Va ria ble s En te re d/Rem o ve d
Variables Variables
Model Entered Removed Method
1 IS, IC, TI,
b Enter
CO, AC, TC
a. Dependent Variable: KM
b. All requested variables entered.
Co e fficie n ts a
Standardi
Unstandardiz zed
ed Coefficie 95.0% Confidence
Coefficients nts Interval for B Correlations Collinearity Statistics
Std. Lower Upper Zero- Toleranc
Model B Error Beta t Sig. Bound Bound order Partial Part e VIF
(Const
-.059 .117 -.506 .614 -.292 .173
ant)
CO .138 .022 .160 6.367 .000 .095 .181 .544 .537 .142 .789 1.267
TC .183 .019 .299 9.809 .000 .146 .220 .791 .700 .219 .534 1.871
IC
.185 .019 .283 9.859 .000 .148 .222 .715 .702 .220 .604 1.655
AC .211 .023 .284 9.342 .000 .167 .256 .791 .683 .208 .539 1.855
TI .150 .022 .183 6.676 .000 .105 .195 .635 .555 .149 .664 1.506
IS .140 .019 .185 7.570 .000 .104 .177 .453 .604 .169 .833 1.200
Co llin e arity Dia g n o s tic s a

Variance Proportions
Condition
Model Eigenvalue Index (Constant) CO TC IC AC TI IS
1 1 6.943 1.000 .00 .00 .00 .00 .00 .00 .00
2 .018 19.458 .03 .04 .15 .21 .00 .00 .16
3 .011 25.221 .01 .07 .44 .07 .03 .05 .31
4 .010 26.241 .00 .00 .09 .43 .01 .39 .10
5 .007 31.026 .09 .08 .06 .02 .81 .01 .04
6 .006 32.826 .05 .63 .16 .12 .03 .26 .11
7 .004 42.993 .82 .18 .10 .14 .12 .29 .28
59

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Addis Ababa University School of Graduate Studies

Department of Marketing Management

AN ASSESSMENT OF KEY ACCOUNT MANAGEMENT ORIENTATION

By: Alemayehu Teressa Edessa

Addis Ababa, Ethiopia

( A thesis submitted to the school of Graduate Studies of Addis Ababa

By: Alemayehu Teressa Edessa

Addis Ababa, Ethiopia

I declare that the research entitles “Key Account Management Orientation in

Alemayehu Teressa Signature ________________

(The Researcher) Date: ________________

Teklegiorgis Assefa (Asst. Prof.)

School of Graduate Studies

Department of Marketing Management

AN ASSESSMENT OF KEY ACCOUNT MANAGEMENT ORIENTATION

Approved By Board of Examiners:

Thesis Advisor Signature

Internal Examiner Signature

External Examiner Signature

Acknowledgment ………………………………………………………………………. iii

1. CHAPTER ONE: INTRODUCTION…………………………………………………. 1

1.1 Background of the Study…………………………………………………………….. 1

2. CHAPTER TWO, LITRATURE REVIEW………………………………………… 12

2.1 Introduction to Key Account Management and its Elements……………………….. 12

3. CHAPTER THREE, RESEARCH DESIGN AND METHODOLOGY………….…. 28

4. CHAPTER FOUR, RESULTS AND DISCUSSION………………………………. 31

5. CHAPTER FIVE, SUMMARY OF FINDINGS, CONCLUSION AND

Table 4.1 Demographic Distribution of Respondents………………….………………31

Table 4.2 Overall Reliability Statistics….…………………………………….………..33

Table 4.3 Reliability Statistics of the Variables ....………………….………………….33

Table 4.4 Mean Score of the Dimensions and Overall KAMO………………………...34

Table 4.5 Correlations…………………………………………………………………..36

Table 4.6 One-Way ANOVA…………………………………………………………..37

Table 4.7 KAMO as explained by its Dimensions, model Summary…………………..38

Table 4.7 Multiple Regression Result…………………………………………………..39

Figure1, Model of Key Account Management (KAMO) and Its Impact on

Figure 2, Key Account Management orientation (KAMO) and its dimension…………5

Figure 3, Elements of KAM…………………………………………………………...15

Figure 4, Conceptual Model……………………………………………………………27

AC: Ability to Customization

B2B: Business to Business

IATA: International Air Transport Association

IC: Inter-functional Coordination

IS: Inter-functional Support

KAM: Key Account Management

KAMO: Key Account Management Orientation

KM: Overall KAMO

MO: Market Orientation

TC: Top Management Commitment

TI: Top Management Involvement

KEYWORDS Key Account Management, Key Account Management Orientation, B2B

1.1 Background of the Study

What are Key Accounts

1.3 Statement of the problem

Figure1, Model of Key Account Management (KAMO) and Its Impact on

Source: Gounaris & Tzempelikos (2012)

Figure 2, Key Account Management orientation (KAMO) and its dimension

Source: Gounaris & Tzempelikos (2012)

1. Is there a marked difference between the management group of a travel agency

1.5 Research objectives