THE EFFECT OF ADVERTISEMENT ON BRAND IMAGE (THE CASE OF BANK OF ABYSSINIA)

Abstract

Advertisement is crucial in convincing, educating, and reminding both current and potential customers about a company’s brand and services. The objective of this study was to examine the effect of advertisement on brand image in the case of Bank of Abyssinia. In this study a quantitative research method was employed and primary data sources were collected through questionnaire. The study purposively selected eight branches of the bank and sampled 384 customers using random sampling method from the selected branches. The findings from the descriptive analysis in the study revealed that the majority of the customers agreed that the advertisement practice of the bank conveys the right information, is interesting and is easy to understand. In contrast, results showed respondents’ opinion about the media factor is close to neutral. Furthermore, Pearson Correlation Coefficient was used to assess the relationship among variables (independent and dependent variables). The correlation results showed all three independent variables (Message content, Source factor and Media factor) have a positive, strong and significant relationship with brand image. The collected data was then analyzed using multiple linear regressions so as to predict the effects of advertisement message content, advertisement source factor and advertisement media factor on brand image. The findings showed that advertisement message content, advertisement source factor and advertisement media factor have positive and statistically significant effect on brand image. The study recommended organizations to consider creative advertising methods that are easy to understand and are well informing to the audience.