The Effect of Brand Equity on Consumers Bank Preference: The Case of Zemen Bank Addis Ababa City Banking Center Customers
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Date
2024-09
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Addis Ababa University
Abstract
Zemen Bank plays a significant role in the economy, making up one of the big financial services provider in Ethiopian economy and introducing the new era of banking. Hence, providing better quality is vital as banks have to compete for customers. The aim of the study was to scrutinize the effect of brand equity on consumer bank preference in Zemen bank Addis Ababa city banking center customers. The sample consisted of 384 customers of the bank. Five brand equity dimensions by different authors have been analyzed in the study. Brand equity dimensions such as Brand image, Brand resonance, Brand association and Brand awareness and Perceived quality were used as independent variable. A questionnaire with a five-point Likert scale was used to collect primary data. The research design used by the researcher was descriptive and explanatory research design. For collecting data convenience sampling technique was applied. SPSS software 26.0 version was used to analyze the collected data by using descriptive and inferential statistics such as frequencies, percentages, means, standard deviations, correlation and multiple linear regression. Results of the study shows that from the five predictor variables such as Brand Awareness, Brand Association and Perceived Quality have positive and significant effect on consumer bank preference. Relatively Brand Awareness has the strongest effect. On the other hand, Brand Resonance and Brand Image doesn’t have any effect on consumer bank preference. The researcher recommends the company to give priorities to the significant factors mainly to Brand Awareness, Brand Association and Perceived Quality. In addition to the significant factors the study have also recommends, even though Brand Resonance and Brand Image weren't statistically significant, it doesn't mean they are unimportant. Investigating them can provide valuable insights for future brand development.
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