The Effect of Bank’s Promotional Strategy on Operational Performance In Case of CBE

Abstract

One of the mechanisms to compete each other in Ethiopian banking industry is by promoting their product through different promotional strategies. The main purpose of this study was to determine the effect of promotional strategies on operational performance in case of CBE. It describes how the promotional mix elements affect the operational performance of CBE. 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 was used for the purpose of data collection. The target population of the study was CBE employees who are found in head office, south west region and all branches controlled under Ambo district. The researcher selected all 76 employees their job directly related to promotion from head office, south west region and Ambo district office by using purposive sampling technique. In addition from a total of 462 employees (branch managers and senior staffs) in branches under Ambo district 214 samples were selected using simple random sampling method. Overall, the total of 290 samples was selected for this study. For the sake of achieving the objectives of this study, questionnaires were analyzed using descriptive and inferential analyses with the help of SPSS version 26 statistical software program. Pearson correlation was used to test the relationship between promotion strategies and operational performance whereas multiple regression analysis used to determine the effect of predictors on operational performance. Results of the study revealed that among the six promotional strategies (advertising, sales promotion, personal selling, public relations, sponsorship and direct marketing), sales promotion has the highest positive effect on operational performance of CBE followed by advertising, public relation and personal selling whereas sponsorship has relatively less but positive and significance effect on operation performance of CBE. As a result, the researcher concludes that promotional strategy has positive and significant effect on operational performance of CBE. Finally, the researcher recommended the Commercial Bank of Ethiopia to focus on the significant promotion strategies in their efforts to improve their operational performance.