THE EFFECT OF PROMOTION MIX STRATEGIES ON DEPOSIT MOBILIZATION OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The purpose of this study is to determine the effect of Promotion mix strategies on deposit mobilization of Commercial Bank of Ethiopia. The target population of the study was Commercial Bank of Ethiopia’s employees and customers who are found in Addis Ababa. A standard 5-point Likert scale questionnaires were distributed to a total of 368 respondents. A convenience sampling technique was used to determine the sample members. The objectives of the research were to assess the promotion practices of Commercial Bank of Ethiopia, to identify the most preferable promotion mix practices in influencing deposit mobilization, to measure the role of promotional mix practices of Commercial Bank of Ethiopia on deposit mobilization, to identify the major challenges of promotional mix practices of Commercial Bank of Ethiopia. A quantitative and qualitative research approach was applied to collect data from employees and customers in Commercial Bank of Ethiopia. To achieve this, a questionnaire survey was conducted by taking the most important promotion mix elements that were identified by various researchers from literature. In order to achieve the objectives of this study, questionnaires were analyzed using descriptive analysis with the help of statistical package for social science version 20 statistical software program. Kendall’s coefficients of Concordance analysis were done to test the level of agreement among the respondents in rating the questionnaires. The findings from the study reveals that all promotion mix elements such as advertising, sales promotion, Personal selling, public relations and publicity, and direct marketing have significant and positive effect on Commercial Bank of Ethiopia’s deposit mobilization. Both the employee and customer respondents have given Advertisement a high rating result from the other promotion mix elements in influencing customers. Therefore, the management of CBE in collaboration with the Business Development Sub-process should give much attention to the promotion mix strategies and practices to achieve the required result.