The Relationship among Advertising Effectiveness, Customer Perceived Value and Customer Loyalty: A Case Study on Berhan International Bank S.C, in Addis Ababa
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Date
2015-05
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Addis Ababa University
Abstract
The purpose of this study was to understand the relationship among advertising effectiveness, customer perceived value and customer loyalty in the Ethiopian banking sector and particularly to the Berhan International Bank S.C. The study was conducted at the eight branches of the Bank located in Addis Ababa. Quantitative research method approach was implemented and the study is explanatory research. The primary data was collected using questionnaires distributed to 380 customers of the Bank where the sample size is selected based on the standard sample size determination table. Secondary data was collected from the Bank’s Marketing and Business Development Department. The questionnaires were distributed randomly i.e. to those customers who came to get service at the selected branches. The total response rate was 86% which was acceptable to make the necessary statistical test. The data gathered was analyzed using frequency tables, correlation, regression, t-test and one way ANOVA through Statistical Package for Social Science (SPSS). The result revealed that a positive and significant relationship between advertising effectiveness and customer loyalty. Customer perceived value was not found to partially mediate the relationship between advertising effectiveness and customer loyalty. On the other hand, gender was found to be insignificant in determining the effectiveness of the Bank’s products/services advertising in contrary to age difference and educational background of customers. In general, the findings indicated that effective advertising contributed to develop loyal customers at least in the context of Berhan International Bank S.C. Therefore, to increase the number of loyal customers, the Bank should work on marketing strategies, predominantly effective advertising, so that in addition to attracting new customers, the Bank could gain the loyalty from its existing customers
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Advertising effectiveness, customer perceived value, customer loyalty