Effect Of Prize-Linked Saving Promotion On Customers’ Intention To Save In Commercial Bank Of Ethiopia

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Date

2018-12-20

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Publisher

Addis Ababa University

Abstract

This study was intended to examine the effect of prize-linked saving (PLS) promotion on customers’ intention to save in Commercial Bank of Ethiopia. Particularly, it was focused on assessing the role of PLS promotion in creating customers’ intention to save in terms of five dimensions: namely awareness, credibility, emotional affect, social compliance and utilitarian value. Both descriptive and explanatory designs with quantitative approach were employed. Data were collected using five point scale selfadministered questionnaire from 379 customers that were sampled across 25 branches of CBE supervised under four districts in Addis Ababa and surrounding. After all appropriate statistical assumptions were checked and confirmed data were analyzed through descriptive and inferential statistical tools by the help of SPSS version 20. According to the data, about 53% of the variation in customers’ intention to save can be explained by the dimensions of PLS promotion (namely awareness, credibility, emotional affect, social compliance and utilitarian value). Result also shows that all proposed dimensions of PLS promotion, except emotional affect, have significant positive effect on intention to save. Among dimensions, social compliance was found to have the largest positive effect on intention to save in the context of PLS promotion whereas emotional affect was found to have negative effect on intention to save. The study also found that PLS promotion appeals more to women, young people, less educated and low income individuals. Finally, it is recommended that the bank’s promotion managers should focus on enhancing and ensuring social compliance of PLS. Enhancing transparency of prize lottery drawing process will be additional fuel that can accelerate the scheme’s credibility. Lastly, it is better and economical for promotional efforts on PLS program to focus primarily on women, low income people,less educated and the young population, for they are highly responsive segment to PLS promotion

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Keywords

intention to save, Prize-Linked saving promotion, awareness

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