THE EFFECTS OF PROMOTON STRATEGIES ON BANKS PERFORMANCETHE CASE OF DASHEN BANK S.C. (FROM EMPLOYEES PERSPECTIVE)

Abstract

The main purpose of this study was to investigate the Effects of promotion strategies on banks performance in Dashen bank S.C by selecting five branches and the head office. To conduct this study the researcherused mixed research approach. The researcher used both descriptive and explanatory research design. The main data collection instruments were both primary (questionnaires and interviews) and secondary sources. Questionnaires were analyzed through both quantitative (descriptive statistics, Pearson correlation analysis mainly to determine the relationship between independent variables and dependent variable. Multiple regression analysis was conducted to determine the impacts of independent variables on the dependent variable. Reliability test was conducted to measure the degree of consistencies among the measurement variables before the main research is conducted using pilot test from 20 participants, which were not participated, in the main research. Face-to-face interviews were conducted with marketing manager and marketing vice-manager of the bank. The findings of the study show that the mean score for advertisement strategy, sales Promotion, personal selling, Public Relation and direct marketing were used by the bank moderately. This resulted in moderate organizational/ banking performance. Advertisement, sales Promotion, Public Relation and direct marketing have significant and positive relationship with organizational/ banking performance respectively. The findings of the study revealed that the R-squared is estimated to be 0.783. This implies that 78.3%% of the variation in organizational performance is determined jointly by the five promotional strategies (advertisement, salespromotion, personal selling, public relation and direct marketing) is used in this study. The remaining (1-0.78.3=0.217) or 21.7% of the variation in organizational performance is explained by variations in other variables that are not included in the model. The findings of the study imply that all independent variables namely, advertisement, sales promotion, personal selling, public relation, and direct marketing are statistically significant different from zero. Therefore, advertisement, sales promotion, personal selling, public relation, and direct marketing have significant effect on organizational/banking performance.