The Effect of Promotion Practices on Consumer’s Purchase Decision: The Case of Some Selected Real Estates in Addis Ababa, Ethiopia

Abstract

This study is intended to measure the effect of the five promotional elements such as sales promotion, personal selling, direct marketing, advertising, and public relation practiced in the real estate industry on the purchase decision of customers. A combination of descriptive and explanatory research design was used with a quantitative research approach. Primary data were collected using survey questionnaire distributed to 322 sampled respondents. Data were subjected to inferential statistical methods supported with SPSS software. The results of the analysis revealed that all the variables (such as sales promotion, personal selling, direct marketing, advertising, and public relation) have direct correlation with the customer’s purchase decision at p<0.05. All the variables jointly explained purchase decision of real estate consumers by 53.2%. The regression’s result showed that, except advertisement practice, the other four promotional elements were statistically significant in affecting purchase decision of consumers.