The Impact of Advertising on Organizational Performance: the Case of Hibret Bank S.C
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Date
2023-07-11
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A.A.U
Abstract
This study aimed to assess the impact of different advertising channels on the organizational
performance of Hibret Bank S.C. The research design employed was descriptive and
explanatory, using a quantitative research approach. Primary data was collected through
questionnaires distributed among the employees of five branches of Hibret Bank, and a random
sample of 206 questionnaires was collected. A pilot study was conducted to test the reliability
and validity of the questionnaires, and Cronbach's alpha was used to measure reliability. The
analysis involved descriptive statistics for each type variables. To assess the relationship
between independent and dependent variables, Pearson's product-moment correlation coefficient
was used. The findings indicated a positive correlation between all four types of advertising and
organizational performance, with broadcast advertising showing the strongest correlation. The
model fit demonstrated a high level of accuracy in predicting organizational performance, with
the independent variables explaining 65.3% of the variability. Based on the regression output,
three out of four independent variables (social media, outdoor, and broadcast advertising) had a
positive and significant relationship with organizational performance, while print advertising
was not significant. The hypothesis test concluded that advertising has a positive and significant
effect on the organizational performance of Hibret Bank. This finding underscores the
importance of advertising in achieving business success, emphasizing the need for Hibret Bank
to allocate a substantial budget to advertising in order to remain competitive. It is recommended
that the bank actively utilize social media platforms to attract customers, particularly targeting
the younger demographic. Considering that print advertising did not show a significant impact
on bank’s organizational performance, it is advised that banks assess and reallocate their
advertising budgets towards other forms of advertising.
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Keywords
Advertising, Organizational Performance