The Effect of Adverting on Customer Saving Behavior: The Case of Commercial Bank of Ethiopia

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Addis Ababa University


Measuring the effect of advertisement on customer saving behavior is very important. If Advertisement does not create any positive change on customers’ saving behavior, all resources such as money, time, and effort spent on advertisement will go in vain. The study aims to explore the effect of advertisement on customer saving behavior in the case of Commercial Bank of Ethiopia. The study categorized advertising in to five dimensions. These are understandability, impressiveness, attention grabbing, honesty and advertising by influential communicator. It followed a deductive form of research approach and the research design was explanatory. Questionnaires were used to collect primary data by using a self-administered data collection system from 384 respondents, out of which 362 valid questionnaires were collected and analyzed. These respondents were selected by using a non probability sampling technique, which is Judgment Sampling method. The data were analyzed using descriptive statistics (frequency, percentage) and inferential statistics like correlation and multiple regressions. The finding revealed that there are positive and significant relationships between impressive advertising, attention grabbing advertising and advertising by influential communicator and customer saving behavior in commercial bank of Ethiopia. But understandable and honesty advertising have relatively weak relationship with saving customer saving behavior. Eventually, this study recommends appropriate actions for the bank in refining its advertising strategies as a means of overcoming the intense competition that exist in the industry, therefore, they can increase its profitability and market share



customer saving behavior, dimension of advertising