THE EFFECT OF PROMOTIONAL STRATEGY ON BANKS OPERATIONAL PERFORMANCE: THE CASE OF BANK OF ABYSSINIA S.C

Abstract

The main purpose of this study was to examine the effect of promotional strategy on banks operational performance in case of bank. It describe how the promotional mix elements affect the banks operational performance. To achieve the objective of this study descriptive survey research design was used. Both primary and secondary data collection instrument were used to collect data. Closed ended questionnaire survey along with interview was used for the purpose of data collection. The selection of the respondent were carried out by using purposive sampling technique From a total of 648 population 247 samples are selected using simple random sampling method taken for this study and the Sample size was taken respectively from branch business managers, managers and employees at marketing department. The data was analyzed by undertaking the descriptive statistics, Pearson correlation and regression analysis. Results of the study revealed that among the five promotional strategy dimension (advertising, personal selling, direct marketing, sales promotion and public relation), Advertising has the highest positive effect on banks operational performance followed by sales promotion and public relation whereas direct marketing and personal selling have relatively less but positive and significance effect on banks operation performance. As a result, the researcher concludes that promotional strategy has positive and significant effect on banks operational performance. In addition, the researcher suggests some recommendations for future studies.