The Impact of Service Differentiation on Brand Image: the case of Commercial Bank of Ethiopia in Addis Ababa city

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Date

2020-06

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Addis Ababa University

Abstract

The Banking industry is the significant stimulator of the economic development of a country through increasing operating revenues, deposit mobilization, credit facilities, financial investment portfolio, and expand the national reserve. Following the increasing number of private banks in Ethiopia, the intense competition claims the importance of bank service differentiation in order to survive and profitable. This research has considered critical literature reviews of studies which were done in relation to brand image with the objective of examining selected service marketing mix variables as premium price, employee’s behavior, physical evidence and distribution channel and their impact on brand image. And this study used a quantitative research approach with purposive sampling technique to select only a few customers from 763 branches of the population of Addis Ababa area for the study purposes. Primary data source (questionnaire) was used with a total sample size of 384 respondents. For this study the dependent variable is brand image whereas the independent variables are; premium price, employees’ behavior, physical evidence and distribution channel. And the questionnaire data which was collected by using likert five scale was analyzed using explanatory and inferential statistcs with the help of Statistical Package for Social Science (SPSS) version 20. The data collected from the questionnaire were analyzed using Statistical tools such as (Descripitve statistics, Reliability analysis, correlation and multiple linear regression models). The results of this study indicate that, all the selected service marketing mix elements (Price, Employee’s behavior, physical evidence and distribution channel) have positive relationship with brand image. The finding of this study also indicates that price, physical evidence and distribution channel have a strong positive relation and significant effect on brand image. And Employees’ behavior has a positive and significant effect on brand image with a lessor level than the other variables

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Keywords

Primium price, Employees, behavior

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