THE EFFECT OF ADVERTISING PRACTICE ON CUSTOMERS’ BRAND CHOICE: THE CASE OF AWASH BANK S.C.

Abstract

Background: Advertising is a component of promotional mix, which is used to create awareness about products and services for influencing purchase decisions. The general objective of the study was to examine the influence of advertising practice on customers’ brand choice on the banking sector in the case of Awash bank S.C Method and Material: This is a descriptive design with quantitative approach that assesses the effect of advertising media on customer brand choice. A total of 292 customers of the bank were participated in the study. Structured questionnaire were prepared by the researchers using related literature and adopted instrument as data collection instrument. Both descriptive and inferential statistics were used as data analysis method. Results: Most respondents had high or above the average attitude towards the components of advertisement and brand choice. The finding revealed 50.1% of the variance on customer brand choice can be explained by the effect of advertising whereas the remaining 49.9% are explained by other variables. According to the result, all dimensions of advertising media which are media type, message content, frequency of advertisement, and timing of advertisement have statistically significant positive prediction or direct effect on customer brand choice of the bank service. Media type has the highest prediction value on the customer brand choice. Conclusions: Advertising media does have strong effect on the customer brand choice of the bank service and product in the case of Awash Bank. Bank managers and advertising agencies should give attention to dimension of advertisement and continue advertising on their service and products if they require maximum profit.