ASSESSING THE EFFECT OF MEDIA ADVERTISING ON CONSUMERS’ BUYING BEHAVIOR IN THE BANKING SERVICE; THE CASE OF COMMERCIAL BANK OF ETHIOPIA WEST ADDIS ABABA CITY BRANCHES

Abstract

In today’s globalized world, financial institutions are in a tough competition which requires effective promotional tools to increase awareness and persuasion of customers, where media advertising is among the important communications medium that has powerful effect on consumers’ behavior. The CBE know how is its media ads influence its customers’ buying behavior. The objectives of this study were to Assess the effect of media advertising on consumers’ buying behavior in the banking service; the case of Commercial Bank of Ethiopia west Addis Ababa city branches. (CBE) and to examine the factors that motivate consumers to respond to media advertising. The target populations of the study were the five branches of Commercial Bank of Ethiopia in Addis Ababa City west district randomly selected by using simple random sampling. Quantitative research approach and probability sampling method (simple random sampling) had been adopted in selecting a sample size of 384 by applying published tables. Data were collected using structured questionnaire and analyzed using SPSS 20 and descriptive research design was used. The results of the study revealed that media ads were the most important sources of information; and the types of media ads (broadcast & print media ads) and the objectives of media ad messages have significant effect on consumers’ buying behavior. The findings showed that TV has the most powerful influence on consumers’ buying behavior due to the combinations of audio-visual presentations. The informative ads, perception about the bank, the color of the logo and the brand name were the imperative factors that motivated consumers to respond to CBE’s media ads. Most of the respondents were searching for alternative banks rather than CBE due to its narrower geographical coverage and the presence of computing alternative banks.