THE EFFECT OF ADVERTISING ON ADOPTION OF NEW BANKING TECHNOLOGY: THE CASE OF CBE

Abstract

The study seeks to examine the effects of CBE’s advertising on customer’s adoption of new banking technology. To achieve such objective, both primary and secondary data sources were used. In this study, advertisement was treated as an independent variable and customer’s adoption was considered as dependent variable. Advertisement was further expressed using specific variables such as source credibility, source attractiveness, message relevance, message originality/creativity, and message impact and media choice. Descriptive as well as inferential statistics were used to analyze the data and interpret results. The findings indicate that CBE’s advertising has positive and significant effects on customer’s adoption of new banking technology. Specifically, media choice, message impact, message originality/creativity and source attractiveness have a positive and significant effect on customers new banking technology adoption. Thus, it is important for the bank to continue advertising by improving current media usage, message and source attractiveness of CBE advertisement and also give attention on message impact that have an influence on customer’s new banking technology adoptions. In addition, it is advisable for the bank to conduct a survey on source attractiveness like the existing source which has a strong public acceptance like television and radio advertiser (Alemayehu Tadese) for other media channel to improve advertising influence.