The Effectiveness of Promotional Elements on Adoption of Interest-Free Banking: A Case Study on Zamzam Bank S.C,
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Date
2023-07
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Addis Ababa University
Abstract
Interest-free Banking is a rapidly growing industry in Ethiopia, and as competition increases, the importance of effective promotion techniques becomes paramount. This research examines the effectiveness of promotional elements on the adoption of Interest-free banking services at the first fully-fledged IFB, Zamzam Bank. The objective was to understand the impact of advertising, public relations, direct marketing, and personal selling, on customer's adoption of Interest-Free banking. Using an explanatory research design, a total of 280 customers in 9 different districts of Zamzam participated in this study. Stratified probability sampling was used to select the distinct and convenient non-probability sampling was used for in the selection of the targets to collect primary data through self-administered questionnaires. The data were coded and analyzed with the help of SPSS 21.0. The findings showed that the overall promotional elements accounted for 58.7% variation in the overall adoption of Interest free banking. It is evidenced that all the elements of promotional elements activities had positive and statistically significant effects on the adoption of IFB. Specifically, public relation had relatively the highest effect on the adoption of IFB. However, direct marketing and personal selling had less effect on the adoption of IFB at Zamzam Bank. The study indicates that when these promotional elements are combined and complemented with each other, they can substantially enhance the adoption of IFB. The study further provides practical recommendations for the bank to enhance its promotional techniques to improve adoption rates
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Advertising