The Effect of Adverting on Customer Saving Behavior: The Case of Commercial Bank of Ethiopia
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Date
2018-12-20
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Addis Ababa University
Abstract
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
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Keywords
customer saving behavior, dimension of advertising