St.

MARRY UNIVERSITY

School of Graduate Students

Department of Marketing Management

Marketing Research Proposal

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

ABYSSINIA)

BY: ZEKARIAS SAID

ID:_SGS/0588/2014A__

Advisor: Dr. Mesfin W.

A Thesis Submitted to St. Mary’s University in Partial Fulfillment of the Requirements for
the Award of Master’s Degree in Marketing Management

June, 2023

Addis Ababa, Ethiopia

 St. Mary’s University
School of Graduate Studies
MBA in Accounting and Finance

THE EFFECT OF ADVERTISMENT ON BRAND IMAGE (THE CASE OF BANK OF

ABYSSINIA)

By
BY: ZEKARIAS SAID

APPROVED BY BOARD OF EXAMINERS

_____________________ _________________________

Dean, Graduate Studies Signature

__________________________ ____________________________

Advisor Signature

___________________________ ___________________________

External Examiner Signature

_____________________________ ____________________________

Internal Examiner S ignature

 STATEMENT OF DECLARATION

I, ZEKARIAS SAID, have carried out a research project on the Effect of Advertisement on
Brand Image (The Case Of Bank of Abyssinia) independently in partial fulfillment of the
requirement for the award of master degree in marketing management with the guidance and
support of the research advisor. I, also declare that this research project is my original work and
that all sources of materials used for the research project have been duly acknowledged.

Declared By Confirmed By

Student’s Name: Zekarias Said Advisor’s Name:

Signature :___________________________ Signature :________________________

Date:________________________________ Date:_____________________________
 ACKNOWLEDGMENT

I would like to express my deep gratitude and appreciation to my advisor, who made this work
come true, especially for his outstanding professional guidance, advice and patience.

I would also like to thank the respondents involved in the validation survey for this research
project: without their participation and input, the validation survey could not have been
successfully completed.

.
Contents
Abstract ...................................................................................................................................... i
ACRONYMS ............................................................................................................................. ii
LIST OF TABLES .................................................................................................................... iii
LIST OF FIGURES .................................................................................................................. iv
CHAPTER ONE .......................................................................................................................1
INTRODUCTION .....................................................................................................................1
1.1 Background of the Study ...................................................................................................1
1.2 Statement of the Problem ...................................................................................................2
1.3 Objectives of the study ......................................................................................................3
1.3.1 General Objective .......................................................................................................3
1.3.2 Specific objectives ......................................................................................................3
1.4 Research Questions........................................................................................................4
1.5. Significance of the Study ..................................................................................................4
1.6. Scope of the Study ............................................................................................................4
1.7. Organization of the Paper .................................................................................................4
CHAPTER TWO ......................................................................................................................5
LITERATURE REVIEW .........................................................................................................5
2.1. Theoretical Review ...........................................................................................................5
2.1.1 Definition and Concepts of Advertisement ..................................................................5
2.1.2 Functions of Advertising ........................................................................................... 10
2.1.3 Components of Effective Advertising ....................................................................... 11
2.1.4 Brand Image ............................................................................................................. 15
2.2 Empirical Review ............................................................................................................ 18
2.3 Conceptual Framework .................................................................................................... 21
2.3.1 Advertising and Brand Image.................................................................................... 21
CHAPTER THREE ................................................................................................................ 24
RESEARCH METHODOLOGY ........................................................................................... 24
3.1. Research Design ............................................................................................................. 24
3.2. Research Approach ......................................................................................................... 24
 3.3 Target population ............................................................................................................ 25
3.4. Sample Procedure and Sampling Size ............................................................................. 25
3.5 Data Source and Data Collection Instruments .................................................................. 26
3.6 Method of Data Analysis ................................................................................................. 27
3.7. Model Description .......................................................................................................... 27
3.8 Reliability........................................................................................................................ 27
3.9 Validity of Instruments .................................................................................................... 28
3.10 Ethical Consideration .................................................................................................... 29
CHAPTER FOUR ................................................................................................................... 30
RESULTS AND DISCUSSIONS ............................................................................................ 30
4.1 Demographic Characteristics of the Respondents ............................................................. 30
4.2. Descriptive Statistics ...................................................................................................... 31
4.2.1 Message Content....................................................................................................... 32
4.2.2 Source Factor............................................................................................................ 33
4.2.3 Media Factor............................................................................................................. 35
4.2.4 Brand Image ............................................................................................................. 36
4.3 Correlation Analysis ........................................................................................................ 37
4.4 Regression Analysis ........................................................................................................ 39
4.4.1 Diagnostic Tests ....................................................................................................... 39
4.4.2. Regression Results ............................................................................................. 42
4.4.2.3 Determination of Coefficients .............................................................................. 43
. 4.5 Hypothesis Testing and Discussions .............................................................................. 44
4.5.1 Advertisement Message Content and Brand Image ................................................... 44
4.5.1 Advertisement Source Factor and Brand Image ......................................................... 45
4.5.1 Advertisement Media Factor and Brand Image ......................................................... 45
CHAPTER FIVE..................................................................................................................... 47
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ................... 47
5.1 Summary of Major Findings ............................................................................................ 47
5.2 Conclusions ..................................................................................................................... 47
5.3 Recommendations ........................................................................................................... 48
References................................................................................................................................ 50
 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.

Key words: Advertisement, advertisement message content, advertisement source factor,

advertisement media factor, brand image

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ACRONYMS

Ad - Advertising
AIDA- Awareness, interest, desire and Action
BoA – Bank of Abyssinia
DAGMAR- Defining Advertising Goals for Measuring Advertising Goals
SPSS- Statistical Package for Social Science

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 LIST OF TABLES

Table 3.1 Sample Branches.. ………………………………………………………...25

Table 3.2 Reliability Test Statics …….…………………………………………...…..27

Table 4.1 Respondents opinion about Message Content.…….…………………….….31

Table 4.2 Respondents opinion about Message Factor………………………………….32

Table 4.3 Respondents opinion about Source Factor...…..…… ………………….……..33

Table 4.4 Respondents opinion about Brand Image ……………………………………...35

Table 4.5 Pearson’s rho correlation coefficient………………………………………….37

Table 4.6 Multicollinearity Test ………...………………………………………………40

Table 4.7 Model Summary …….………………………………………………………..43

Table 4.8 ANOVA….…………………………………………………………………..45

Table 4.9 Coefficients…….………………………………….........................................47

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 LIST OF FIGURES

Figure 2.1 Conceptual framework ………………………………………………………….22

Figure 4.1 Demographic Characteristics ……………………………………………………30

Figure 4.2 Linearity Test …………………………………………………………………39

Figure 4.3 Normality Test…………..……….………………................................….......45

Figure 4.4: Hetroscedasity Test………..……….………………........…...............................46

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Organizations spend millions of monetary resources each year on advertising in a variety of
media, including magazines, radio, television, and more, in an effort to portray their goods as
superior to those of their competitors in the minds of consumers and to shape their behavior.
Advertising is crucial in convincing, educating, and reminding both current and potential
customers to make a purchase. It is essential for developing, launching, and maintaining brands.
It is essential in forming dreams and goals and assisting consumers in making thoughtful
selections about brands and products (Ingavale, 2013).

Advertising is a vital instrument and a strong force for communication. By educating and
convincing people, it helps marketers sell products, concepts, and images. Most organizations
now rely heavily on advertising. Everyone is exposed to commercial messages every day as they
open newspapers, browse through magazines, listen to the radio, watch television, go online, or
stroll down a busy street. Therefore, it is almost impossible to avoid coming into exposure to
advertising in one way or another (Abiodum, 2011).

According to Robbs (2009) advertising success is significantly influenced by its effectiveness.

Only if advertising focuses on being effective can it continue to exist and expand. The
effectiveness of the communication aspect and the resulting behavioral change in audiences
determine if an advertisement is successful. For any marketer, understanding how advertisements
affect consumers' purchasing decisions is crucial. All of the resources i.e. money, time, and effort
devoted to advertising will be useless if it has no positive influence on consumers' purchase
decisions.

One of the goals or objectives of advertisement is to create a positive brand image among
customers. Brand image can be considered as a kind of association that arises in the minds of
consumers when considering a particular brand. Advertisement by conveying the right message,
utilizing effective sources and employing the correct medium can create a strong association and
positive feeling among customers about ones brand (Yelbert, 2010). In this regard, the purpose

1
of this study focused on examining the effect of advertisement on brand image in the case of
Bank of Abyssinia (BoA).

1.2 Statement of the Problem

Businesses can use a variety of tools to inform consumers about the benefits of their goods and
services, increase brand awareness among people, and boost levels of sales, according to Vasiliu
(2013) advertisement is one of the most crucial aspects of businesses since buyers can't purchase
items unless they know what they are and where to get them.

Several factors have been identified as vital points to increase and maintain efficient
advertisement strategy and create a positive brand image. The first one is message factor; in this
regard Kotler and Armstrong (2008) suggested that the advertisement message should grab
attention, hold interest, pique desire, and elicit action. It is stated that the advertising entity must
select both the content of the message and its structure and format before putting the message
together.

Another point stated in this regard is the source factor. It speaks to the apparent knowledge,
objectivity, or reliability of a source. This trait refers to consumers' perceptions of a
communicator's competence and willingness to offer the details required to properly assess rival
products. It is stated that the degree to which the recipient views the source as possessing
pertinent knowledge, talent, or experience and trusts the source to provide unbiased, objective
information can have an effect on the success or failure of the advertisement scheme (Belch and
Belch, 2013).

Furthermore, the medium in which the advertisement is channeled is also an area of concern in
devising a successful advertisement regime. The selected channel should be the one that can
reach the target audience, so that it can inform about the brand and offers that are available at the
enterprise (Kotler and Armstrong, 2008).

There are several studies that showed a relationship between advertisement and brand image and
product sales increase. According to a 2015 study by Awan and Nawaz on Pakistan's expanding
fast food market, advertising in media is extremely important for luring in new and high-quality
food products. Their research showed that consumers were motivated by the media to purchase
fast food in order to save time rather than spend that time cooking.

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Similar research by Anjum et al. (2015) demonstrated a favorable correlation between consumer
purchasing behavior and television advertising. Clark et al. (2009) came to the conclusion that
advertisements have the ability to persuade listeners, readers, and viewers to make a purchase of
goods or services.

In Ethiopia, as the economy is growing and new businesses are arising, competition among
business enterprises is becoming crucial to recruit new customers and retain the existing ones.
Several studies carried out in the countries context have found advertisement to be essential
creating awareness and informing potential customers. For instance, one such study by Lema
(2016) revealed that among advertising media, TV advertising, because of its visual, sound, and
motion effect, has high degree of influence. Another study by Amtataw (2017) revealed that
consumers are interested to be informed about the quality of the product and its benefit through
advertising. The result indicates that among advertising media, TV advertising has high degree
of influence than other media do, because of its sight, sound, and motion effect.

However, there is a lack of research in investigating the effect of message, source and media
factors in advertisement and their effect in Ethiopian context. Most of the studies carried out in
Ethiopian context focused on comparing the effects of different types of advertisement media.
Most of the studies carried out in Ethiopia’s case compared and investigated which among the
different media types were more effective in enhancing a company’s brand and image.This study
attempted to fill this gap by investigating the effect of message, source and media factors in
advertisement and their effect on brand image in the case of Bank of Abyssinia (BoA).

1.3 Objectives of the study

1.3.1 General Objective

The general objective of the study was to examine the effect of advertisement on brand image in
the case of Bank of Abyssinia.

1.3.2 Specific objectives

The study had the following specific objectives.
1. To assess the effect of message factor of advertisement on brand image.
2. To examine the effect of source factor of advertisement on brand image.
3. To look into the effect of media factor of advertisement on brand image.

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1.4 Research Questions
1 What is the effect of advertisement message factor on brand image?
2 What is the effect of advertisement source factor on brand image?
3 What is the effect of advertisement media factor on brand image?

1.5. Significance of the Study

This study was conducted in order to investigate effect of advertisement on brand image in the
case of Bank of Abyssinia. The study provides important contribution to the understudy
organization in particular and to business enterprises in Ethiopia which are and aim to engage in
advertisement scheme in general. The study will provide insights for different stakeholders like
advertisement agencies and personals to look into the factors that affect effectiveness and make
adjustments to increase the effectiveness of advertisement. This study will also helps for further
research as reference.

1.6. Scope of the Study

Many factors can be considered to analyze effect of advertisement on brand image, but in this
study, the researcher will observe only the three factors which are advertisement message factor,
advertisement source factor and advertisement media type. Geographically, the study was scoped
to Addis Ababa by studying Bank of Abyssinia at selected branches. Methodologically, the study
utilized descriptive and explanatory research design and collected primary data using
questionnaires from randomly sampled customers at purposively selected branches of the bank.

1.7. Organization of the Paper

This paper consists three chapters. Chapter one is introduction. The second chapter focuses on
literature review. The third chapter deals with research design and methodology. Chapter four is
data presentation and analysis. The final chapter which is chapter five presents the conclusions
and recommendations of the study.

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 CHAPTER TWO

LITERATURE REVIEW

2.1. Theoretical Review

2.1.1 Definition and Concepts of Advertisement

Advertising is the process of influencing people's behavior or point of view by purchasing space
in a publication, such as time on television, radio, or in the movies. Posters and other outdoor
advertising mediums may also fall under this interpretation (Wilmshurst, 1985).

Advertising as a salesmanship in print, as the father of advertising Albert Lasker put it. But he
offered this definition at a period when advertising's nature and reach were extremely
constrained, long before the development and widespread usage of the radio, television, and
internet. Wijaya (2012) proposed a contemporary definition of advertising that took crucial
elements like media, audience, and aims into account. In his journal, the term "advertising" was
used to describe a form of sponsored persuasion that involved using mass and interactive media
to reach large audiences in order to connect a known sponsor with potential customers (the
"target audience") and disseminate details about a product (goods, services, and ideas).

Arens (2005) defines advertising as a method of communication that attempts to influence a

target audience to purchase or take action about goods, information, or services. Additionally,
advertising is described by Bulla and Scott (1994) as a sort of marketing communication that
promotes the selling of goods and services. Usually, it conveys a message that mentions the
brand of the good or service being advertised as well as how the consumer could profit from it.

Advertising has historically been one of the most effective marketing communication techniques
used by businesses to interact with their various target audiences. Due to declining levels of
brand differentiation, proliferation, and consumer understanding, the use of advertising to
perhaps promote positive brand association may be receiving more attention (Kotler & Keller,
2006).

Consumers in market-based economies have come to rely on advertising and other forms of
promotion for information that will help them make judgments about what to buy (Belch and
Belch, 2013). Advertising frequently gives consumers a cause to purchase (Keller, 2004).

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Aynawale, Alimi, and Ayanbimipe (2005) claim that advertising aids in conveying to customers
the worth and quality of a product. As a result, it significantly affects customers' brand
preferences.

Advertising has the ability to transform markets, impact consumer behavior, and increase profit
margins (Jerry, 2007). Additionally, a number of studies revealed that advertising has the ability
to spread new information, raise awareness, and develop a reputation and image in the minds of
potential and even current clients. One of the most obvious marketing strategies is advertising.
Academicians contend that advertising generally succeeds in establishing consumer-based brand
equity, having a sustaining and cumulative impact on this asset (Wang et al., 2009).

Kotler and Armstrong (2012) added to the literature on advertising by categorizing advertising
goals according to whether they are intended to inform, convince, recall, or reinforce.
Organizations in both the public and private sectors have discovered how crucial it is to their
success to be able to effectively and efficiently connect with their target audiences (Vithya,
2010). When done properly, advertising can serve a number of purposes for any kind of business
and have a significant impact.

According on what the organization wants it to do, the role of advertising fluctuates. It aids in the
identification of items, their sources, and the differentiation of them from rivals. It also conveys
information about the products, their attributes, and the store where they are sold. It aids in the
attempt to encourage the production of new products and makes suggestions for reuse. It can
encourage the local or international distribution of goods or services. In other words, advertising
is only a form of economic activity with the single goal of boosting both customer demand for
the product and sales (Arens, Schaefer & Weigol, 2009).

The need for advertising is highlighted by Latif et al., (2011) as primary tool to reach prospective
customers and by so doing, influence their attitudes, awareness and buying behavior. Advertising
helps shift demand away from peak periods, increase utilization during slow periods, or it can
help companies develop consumers' awareness to an unmet need or introduce a product that
consumers may see as valuable. This influence is often present when new products enter the
market. Customer awareness is often low for these items until companies promote them and
attempt to drive customer demand through advertising (Dinu&Dinu, 2012).

6
Advertising is also used to create images and symbolic appeals for products and services. This is
quite useful for companies that are selling products and services that are very difficult to
differentiate. Even when other elements of the marketing program have not been successful,
advertisement has the ability to strike a responsive chord with consumers (Belch & Belch, 2013).

The basic role of advertising can also be seen from the side of customers, as it provides the right
amount of information regarding the product or services that is of interest to the customer, hence
delivering consumer satisfaction. In this view, the level of advertising affects the consumer who
is the focus of the organization (Park, 1996) while aiding the consumer to choices and
preferences from amongst the variety of products and services offered for his selection and
option.

Advertisements tend to be highly informative and present the customer with a number of
important product attributes or features that will lead to favorable attitudes and can be used as the
basis for a rational brand preference. People get information from the advertisement through the
attractiveness it holds, the attention it creates and the awareness it gives (Arens, 1996).

Advertising allows communicating important message to a large audience at once than any other
form of communication (Sharma, 2012). It can also create favorable, strong and unique brand
associations (Cobb-Walgren et al., 1995; Keller, 2007). Like brand awareness, brand associations
arise from consumer-brand contact. As such, advertising can contribute to brand associations
through its ability to create, modify or reinforce associations with each new contact (Bravo et al.,
2007).

In today’s world, there are a myriad of media outlets in order to achieve the functional goals of
advertising. These media outlets are competing for consumers’ attention.

Print Media Advertising – Newspaper, Magazine, Brochures, and Fliers. The print media have
always been a popular advertising medium. Advertising products via newspapers or magazines is
a common practice. The print media must be able to attract large numbers of readers or a very
specialized audience to be of interest to advertisers. Magazines and newspapers have been
advertising media for more than two centuries; for many years, they were the only major media
available to advertisers. With the growth of the broadcast media, particularly television, reading
habits declined. More consumers turned to TV viewing not only as their primary source of

7
entertainment but also for news and information. But despite the competition from the broadcast
media, newspapers and magazines have remained important media vehicles to both consumers
and advertisers (Sharma, 2012).

Outdoor advertising: It has probably existed since the days of cave dwellers. Both the Egyptians
and the Greeks used it as early as 5,000 years ago. Outdoor is certainly one of the more pervasive
communication forms, particularly if you live in an urban or suburban area (Belch & Belch,
2003). Outdoor advertising is also a very popular form of advertising, which makes use of
several tools and techniques to attract the customers outdoors. The most common examples of
outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by
the company. The billboard advertising is very popular; it however has to be really terse and
catchy in order to grab the attention of the passersby (Omcreddy, 2010).

Broadcast Advertising generally speaking includes radio, television, and Internet advertising.
Broadcast advertising is a very popular advertising medium that constitutes of several branches
like television, radio or the Internet. Television advertisements have been very popular ever since
they have been introduced. The cost of television and radio advertising often depends on the
duration of the advertisement, the time of broadcast (prime time/peak time), and of course the
popularity of the channel on which the advertisement is going to be broadcasted. Whatever the
mode of advertising broadcast advertising is an inherent part of any advertising campaign these
days (Tailor, 2013). A radio ad must be aired several times before it actually sinks in the minds
of the consumers. Thus the frequency of the ad is important. The type of your target audience is
also important. Therefore, one must do a research on which type of audience listens to which
channels if they want the ads to be successful. The voice talent in the commercial should be
taken keeping in mind the type of audience and the type of commercial (Management Study
Guide, 2013). The radio might have lost its charm owing to the new age media; however the
radio remains the choice of small-scale advertisers (Merugu, 2009).

As it is costly compared to other media advertisements, the television advertising is usually

considered the advertising for the corporate giant, though even the small businesses can benefit
from it. It has often been said that television is the ideal advertising medium where the consumer
spends the most "attentive" time. A strong audio and video combination is a must for the success

8
of the commercial. But it is also important that the audio and video should function well without
each other (Nartey, 2008).

Internet or online advertising uses the Internet or the World Wide Web for the purpose of
attracting consumers to buy their product and services. Examples of such advertising include ads
on search engine result pages, rich media ads, banner ads, social network advertising, and email
marketing and so on. Online advertising has its benefits, one of them being immediate publishing
of the commercial and the availability of the commercial to a global audience. But along with the
benefits come the disadvantages too. These days, advertisers put distracting flashing banners or
send across email spam messages to the people on a mass scale. This can annoy the consumers
and even the real ads might get ignored in the process. Therefore, ethics in advertising is very
important for it to be successful (Tailor, 2013).

Covert Advertising – Advertising in movies. Covert advertising is a unique kind of advertising in

which a product or a particular brand is incorporated in some entertainment and media channels
like movies, television shows or even sports. There is no commercial in the entertainment but the
brand or the product is subtly (or sometimes evidently) showcased in the entertainment show
(Management Study Guide, 2013).

Surrogate Advertising – Advertising indirectly. Surrogate advertising is prominently seen in

cases where advertising a particular product is banned by law. Advertisement for products like
cigarettes or alcohol which are injurious to health are prohibited by law in several countries and
hence these companies have to come up with several other products that might have the same
brand name and indirectly remind people of the cigarettes or beer bottles of the same brand.
Common examples include Fosters and Kingfisher beer brands, which are often seen to promote
their brand with the help of surrogate advertising (Manohar, 2013).

Public Service Advertising –Advertising for social causes. Public service advertising is a
technique that makes use of advertising as an effective communication medium to convey
socially relevant messages about important matters and social welfare causes like AIDS, energy
conservation, political integrity, deforestation, illiteracy, poverty and so on (Alina, 2010).

Celebrity Advertising - Although the audience is getting smarter and smarter and the modern-day
consumer is getting immune to the exaggerated claims made in a majority of advertisements,

9
there exists a section of advertisers that still bank upon celebrities and their popularity for
advertising their products. Using celebrities for advertising involves signing up celebrities for
advertising campaigns, which consist of all sorts of advertising including, television ads or even
print advertisements (Manohar, 2011).

2.1.2 Functions of Advertising

Informing

Brand promotion is one of advertising's most crucial roles. In other words, advertising introduces
customers to new brands, informs them of the unique qualities and advantages of a brand, and
aids in the development of favorable brand perceptions. Advertising helps introduce new brands
and boosts demand for current brands because it is an effective form of communication that can
reach large audiences at a low cost per contact. This is primarily accomplished by raising
consumers' top-of-mind awareness (TOMA) for established brands in mature product categories.
By demonstrating new uses for established goods, advertising serves as a valuable information
source for both the advertised company and the consumer (Kotler & Armstrong, 2008).

Influencing

Potential clients are persuaded to try the offered goods and services through effective
advertising. Advertising can sometimes affect primary demand, which is the process of
generating demand for an entire product category. Advertising frequently aims to increase
demand for a company's brand, or secondary demand. Both B2C and B2B organizations use
advertising to persuade consumers and customers to try one brand over another using rational
justifications and emotive appeals (Kotler & Keller, 2006).

Adding Value

Advertising enhances brands by changing consumers' views. Effective marketing makes brands
appear more upscale, fashionable, prestigious, of greater quality, etc. In fact, studies including
over 100 brands from five non-durable (such as paper towels and shampoo) and five durable
(such as televisions and cameras) categories have shown that higher ad spending causes
consumers to view marketed brands as having a better level of quality. Therefore, effective

10
advertising can increase market share and profitability attributes by influencing perceived quality
and other perceptions (Tsai & Tsai, 2006).

Advertising may increase sales volume, revenue, and profit for brands while lowering the risk of
erratic future cash flows. The term discounted cash flow (DCF) is used in finance to describe all
of this. Advertising creates incremental DCF through raising a brand's value. One advertising
professional succinctly summarizes the value-adding function of advertising with the following
statement: "Advertising builds brands. Businesses are built on brands. Let the discounted cash
flow!, and it is very important for advertising to produce profitable results in a world of
accountability (Shimp, 2008).

2.1.3 Components of Effective Advertising

2.1.3.1 Message Content

It is common knowledge that there is no one approach to persuade individuals to adopt positive
brand attitudes or to behave in ways that marketing communicators find desirable. Instead, the
most effective influence strategy depends on both brand strengths and consumer characteristics,
such as their motivation, opportunity, and capacity to process marketing communication
messages. It is evident what persuasion strategy to use when customers are curious about a
product and a company's brand has distinct benefits over rival brands: create a message that
explains why your brand is better. The outcome should be equally obvious: Customers are likely
to be persuaded by your arguments, which will result in a comparatively lasting attitude change
and a high likelihood that they will choose your brand over competing products(Tsai & Tsai,
2006).

Nevertheless, the truth is that most product categories have similar brands, and as a result,
consumers are typically not eager to expend mental energy processing messages that offer little
novel information. Therefore, the marketing communicator must find ways to sufficiently
enthuse consumers so that they will listen to or read the communicator's message when faced
with this double whammy (only marginally involved consumers and a me-too brand). Therefore,
any actions marketing communicators take to improve the MOA factors (motivation,
opportunity, and ability) will probably lead to increased communication effectiveness (Shimp,
2008).

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Appeals to Consumer Fears

Advertisers try to persuade consumers to comprehend information and take action by appealing
to their concerns after discovering that people have anxieties, both logical and irrational. The
negative effects of either not using the advertised brand or engaging in risky conduct (such as
drinking and driving, smoking, using drugs, consuming unhealthy foods, operating a vehicle
without a seat belt, or having unprotected sex) are identified through appeals to anxieties in
advertising (Shimp, 2008).

The fundamental assumption is that appealing to audience members' concerns would increase
their engagement with a communication and help them embrace its ideas. The threat of physical
harm or social rejection may be used to appeal to customer concerns. For instance, mouthwashes,
deodorants, toothpastes, and other items play on our concerns by highlighting the social rejection
we can experience if our breath isn't fresh, our underarms aren't dry, or we have cavities in our
teeth. Advertisers have employed a variety of products and topics to evoke feelings of physical
danger or impending issues, including smoke alarms, car tires, dangerous sex, impaired driving,
and driving without insurance (Tsai and Tsai, 2006).

Appeals to Consumer Guilt

Like appeals to fear, appeals to guilt attempt to trigger negative emotions. People feel guilty
when they break rules, violate their own standards or beliefs, or behave irresponsibly. Appeals to
guilt are powerful because they motivate emotionally mature individuals to undertake
responsible action leading to a reduction in the level of guilt. Advertisers and other marketing
communicators appeal to guilt and attempt to persuade prospective customers by asserting or
implying that feelings of guilt can be relieved by using the promoted product (Shimp, 2008).

Evidence, albeit limited, suggests that appeals to guilt are ineffective if advertisements
containing guilt appeals lack credibility or advertisers are perceived as having manipulative
intentions. When ads are perceived as lacking credibility or attempting to manipulate the
receiver, feelings of guilt are mitigated rather than increased. Thus, appeals to guilt when the
advertising is perceived as lacking in credibility or being manipulative have little opportunity to
positively influence beliefs, attitudes, or message-relevant behaviors (Tsai and Tsai, 2006).

12
Symbolism in Advertising

There is mounting evidence in the area of advertising ethics that a large portion of human action
is not under conscious control but rather happens almost automatically (without cognitive
intervention). People's subconscious thoughts can be primed or activated by communicators
utilizing delicate methods and subliminal messaging, for instance. The primed topic needs to be
appropriate for the individual's present need levels in order for subconscious priming to be
effective. In other words, unless a person has a need to act in that way, they cannot be subtly
influenced to do so. Furthermore, a primed need has a finite span of influence and ceases to be a
long-term active influencer of judgments and behavior (Kotler & Armstrong, 2008).

Therefore, even if a brand-related thought or emotion were subtly activated by an advertisement,

a consumer who is not actively looking to buy a related product would not act on that thought or
emotion. Given that exposure to ads and decision-making are typically separated by time, it
would generally be expected that mass-media advertising would be ineffective in this regard.
However, point-of-purchase advertising, such as in-store radio programming, may offer a useful
(though unethical) medium for persuading customers to buy particular goods and brands (Kotler
& Armstrong, 2008).

2.1.3.2 Source Factor

The likelihood that a communication will be accepted can, in most cases, be greatly influenced
by its source. The selection of a source to promote attitude adjustment might draw on a variety of
factors. The source may be picked because they are qualified, appealing, well-known, or even
just "typical" consumers who are likable and reliable. Credibility and appeal are two aspects of
sources that are very crucial (Solomon et al., 2006).

Source Credibility

The degree to which the recipient views the source as possessing pertinent knowledge, talent, or
experience and trusts the source to provide unbiased, objective information is described as source
credibility. It speaks to the apparent knowledge, objectivity, or reliability of a source. This trait
refers to consumers' perceptions of a communicator's competence and willingness to offer the
details required to properly assess rival products. When a consumer hasn't yet learned much

13
about a product or formed an opinion about it, a reliable source can be especially compelling
(Solomon et al., 2006).

According to research, a message's acceptability depends greatly on the credibility of the source.
Expertise, dependability, and likeability are the three qualities most frequently cited as sources of
credibility. Expertise, trustworthiness, and likeability are the three criteria that determine a
source's credibility. As a result, some advertisers use celebrities as spokesmen. Attractive or
well-liked sources can deliver messages that garner greater attention and memory (Kotler and
Keller, 2006).

Source Expertise

According to Kotler and Keller (2008), expertise is the specialized knowledge the communicator
has to support the assertion. According to Hoyer and Maclnnis (2010), we are more inclined to
believe a message coming from someone who is seen as an authority on the subject than from
someone who is unfamiliar with it.

Source Trustworthiness

Source trustworthiness is the attribute of dignity, believability and honesty possessed by the
endorser and observed by the customers. Trustworthiness was found to be an important
forecaster of source credibility. The trust paradigm in communication is the listener’s degree of
confidence in, and level of acceptance of, the speaker and the message. While expertise is
important, the target audience must also find the source believable. Someone perceived as
trustworthy is more likely to be believed than someone who is not (Hoyer and Macinnis, 2010).

2.1.3.3 Advertising Media Factor

The media is the vehicle for conveying the message of the marketer to the target audience. The
message gets to the intended person through a medium which could be visual, audio or text or a
combination. Newspaper, magazines, radio, television, and outdoor, transports are among the
commonly used media used by marketers to convey their message to the target audience (Owusu
and Nyarku, 2015).

The interaction between media and communications is like a hand in a glove; they need to work
well together. Advertising creative are reportedly unable to move unless they speak with a media

14
strategist. Media experts and creative must work together to create advertising that successfully
and efficiently convey the proper brand concept to the targeted target audience. The most crucial
factor to take into account when choosing an advertising medium is, in fact, efficiently
addressing a specific audience (Shimp, 2008).

Media planning is receiving more attention from advertisers than ever, and its status has never
been higher. This is due to the fact that an advertising message can only be effective when it is
used in the media and on the vehicles that can most effectively reach the intended audience. Due
to the diversity of choices that must be made, the selection of media and vehicles is, in many
ways, the most difficult of all marketing communications selections. The media planner must
choose specific vehicles within each medium in addition to deciding which general media
categories to use (television, radio, magazines, newspapers, outdoor, the Internet, or alternative
media), as well as how to divide the available budget among the various media and vehicle
options. Additional decisions involve choosing geographical advertising locations and
determining how to distribute the budget over time (Kotler & Armstrong, 2008).

Target audience, cost, and creative considerations are the most crucial elements when choosing
media types. By determining which media vehicles will reach the specified target demographic,
satisfy financial restrictions, and be compatible with and enhance the creative message of the
advertiser, media planners make their selections. Although there are many different ways to
schedule media insertions, media planners typically use some kind of pulsed or lighted schedule
where advertising is occasionally on and occasionally off but never continuously. The principle
of recentness, also referred to as the shelf-space model of advertising, challenges the use of
pulsed advertising schedules and purports that weekly efficient reach should be the decision
criterion of choice because this approach ensures that advertising will be run at the time when
consumers are making brand selection decisions (Shimp, 2008).

2.1.4 Brand Image

The maintenance of the brand on a product is necessary because actions to present and offer a
product or service are inextricably linked to the brand imprinted on products. This shows that the
brand distinguishes one product from another. Managing a brand involves establishing
associations with these marks in order to imbue a good impression of a product or brand in the
minds of consumers. A strong brand image is one of the company's assets since it affects how

15
consumers perceive products, resulting in a favorable perception of the brand in general (Keller,
2007).

Brand image is an association active in memory when one thinks of a certain brand (Shimp,
2010). Brand image can be interpreted as the perception of the brand as reflected by the brand
associations held in consumer memory. Brand image consists of the knowledge and confidence
of consumers on the brand. Consumers who have a positive perception of a brand, meaning that
the brand has a strong message as compared to a competitor’s brand message. Another
understanding of the brand image is a set of beliefs about certain brands (Meenaghan, 1995).
While understanding the brand image according to (Rangkuti, 2009) is a set of brand
associations formed in the minds of consumers. Consumers who are accustomed to using certain
brands tend to have consistency with the brand.

Brand image can be thought of as a type of association that people make while thinking about a
specific brand. The relationship may simply manifest as a specific idea or image that is
connected to a brand, much like how we see other people. The concepts of type, support,
strength, and originality can be used to this association. A brand's image is how consumers
perceive it and reflects their associations with it. The public's opinion of a company's corporate
identity is referred to as its image. Based on what individuals know or believe about the
company in question, this perception has been formed. Consequently, the same company may
not always project the same image to others (Yi Zhang, 2015).

Brand image conveyed the general opinion of a brand and was created through knowledge and
prior experiences. The brand's reputation is linked to behaviors that reflect the values and
preferences of a common brand. Customers that use a certain brand have a propensity to
consistently embody the brand identity. From an understanding of the aforementioned, it is clear
that the brand image is a collection of associations that consumers hold against particular brands.

The first stage in creating a brand product is raising brand awareness. The first type of
information that is stored in the memory is the most crucial component of brand awareness.
Before a brand association may establish, brand awareness is necessary. The ability of the
consumer to connect a brand with a product category is how brand awareness is defined. Brand
awareness is a process that starts with a consumer feeling familiar with the brand and ends with

16
them being certain that the brand is the only one offering the class of particular goods or
services. In this situation, it will be tough for a brand to maintain its position if it has managed to
capture a place that customers remember it (Keller, 2007).

Another component of brand image is brand association, which can be \ defined as anything
linked in memory to a brand and brand image as a set of associations, usually in some
meaningful way (Pitta & Katsanis, 1995).

Brand association involves attributes, benefits, and attitudes can be stored in consumers ‘minds
after brand awareness is in their memory (Keller, 2007). Brand associations are one of the most
significant constituent parts of brand equity. A brand association conceptualized to denote
anything that has memory links to the brand. These links grow and develop as a consumer
repeatedly exposed to the brand.

Keller (2007) expresses that brands endowed with several positive brand associations have
positive customer based brand equity. Brand associations are fundamentally essential in
positioning and differentiating brands. They rekindle the interest of consumers to purchase a
brand and create a positive attitude towards a brand. Brand associations are central to brand
equity. In conceptualizing brand equity, Keller (2007) depicts attitudes as the most abstract and
highest level of brand association. Everything you do in terms of marketing and actions creates
brand associations (Pitta & Katsanis, 1995).

A brand association is the most accepted aspect of brand equity. Associations represent the basis
for purchase decision and for brand loyalty (Aaker, 1991). Brand associations consist of all
brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes and are
anything linked in memory to a brand (Kotler & Keller, 2006; Keller, 2007).

Chen (2001) identify different types of association that contribute to the brand equity. He
categorized two types of brand associations - product associations and organizational
associations.

Product associations include functional attribute associations and non-functional associations

(Chen, 2001). Functional attributes are the tangible features of a product (Keller, 2007). While

17
evaluating a brand, consumers link the performance of the functional attributes to the brand
(Pitta & Katsanis, 1995; Lassar, 1995).

If a brand does not perform the functions for which designed, the brand will has low level of
brand equity. Performance defined as a consumer’s judgment about a brand’s fault-free and long-
lasting physical operation and flawlessness in the product’s physical construction (Lassar, 1995).
Non-functional attributes include symbolic attributes which are the intangible attributes that meet
customer’ needs for social approval, personal expression or self-esteem (Aaker, 1991; Keller,
2007).

Customers linked social image of a brand, trustworthiness, perceived value, differentiation and
country of origin to a brand. Organizational associations include corporate ability associations,
which are those associations related to the company’s expertise in producing and delivering its
outputs and corporate social responsibility associations, which include organization’s activities
with respect to its perceived societal obligations (Chen, 2001).

According to Aaker (1996), consumers consider the organization is the people, values, and
programs that lies behind the brand. Brand-as-organization can be particularly helpful when
brands are similar with respect to attributes, when the organization is visible (as in a durable
goods or service business), or when a corporate brand is involved.

2.2 Empirical Review

Rai (2013), has conducted a study titled “impact of advertising on consumer behavior and

attitude with reference to consumer durables” In his research, it was concluded that consumer

behavior and attitude formation are influenced by advertisements not only in India but also
globally. The study argued that adverts serve as a source of motivation for consumers of durable
goods and the promotion of adverts encourages such purchases. It was further pointed out that
when the focus is on quality and price, adverts have a tremendous impact on customers. Ads that
include brand awareness and product evaluation can have an impact on your purchasing attitude
and behavior.

Yelbert (2010) studied how advertisements for hair products affected students' purchasing
behaviors. According to this study, some people have a bad opinion of advertising. They defined

18
advertising as a strategy for marketing subpar goods in order to boost sales. Additionally,
advertisers did not provide comprehensive product information. The study's conclusions showed
that many students are persuaded to copy hairstyles from advertisements. They purchase a
specific product as a result of the advertisement's portrayal of the product's quality. Accordingly,
Yelbert comes to the conclusion that there are both good and bad effects of advertising on
consumers.

A study on effective advertising and its impact on customer purchasing behavior were
undertaken by Niazi et al. (2012). This study proved that advertising is a powerful technique for
luring customers and changing their perception of a product for the better. According to the
study, there is a moderate association between environmental elements, emotional components,
and customer buying attention. The consumer is more likely to purchase a product if they have
an emotional connection to it.

Abiodum (2011) carried out a study on the subject of effect of advertising on the amount of sales
of a product. According to this research, advertising plays a significant effect in a product's sales
volume since people are compelled to purchase products based on what they have seen, heard
about, or really utilized. Advertising is beneficial because it spreads the messages to a dispersed
target population that the marketer or producer could not have easily reached all at once.
According to the study, the company is unwavering in its efforts to provide an efficient
advertising program for their range of services and goods, based on the responses of respondents
who answered his questionnaire. Customers perceived the business as employing advertising
tactics that were appropriate for both the business and the markets it served. Moreover, the
research reveals that a product or service's advertising position is strong in the consumer's mind
in order to promote repeat purchases of the product and prevent competitors from having an
advantage over them. Additionally, it promotes product differentiation and brand loyalty.

A study by Kotwal et.al, (2008) showed that teenage girls were influenced by TV advertisements
and tended to purchase the products they saw in commercials. The information an advertisement
gave about sales, freebies, brands, and product quality was the key factor in people like it. The
non-informative elements, in descending order of importance, that contributed to appreciating an
advertising included celebrities, catchy slogans, humorous visual effects, good music, and action.
The majority of respondents thought that watching TV advertisements helped them to make

19
better shopping decisions. After seeing an advertisement, the majority of the respondents wanted
to purchase the new brand that had just been introduced to the market.

Sonkusare (2013) on the study exploring the force of TV advertising on purchasing manners of
women consumers’ revealed that TV advertising has great impact on buying behavior of women
customers. The study stipulated before buying any merchandise customers/ consumers collect
information for their proper purchasing decision making activities’ hence advertising is mostly
adopted to get information about products.

Ansari and Joloudar (2011) conducted a study and discovered that while media and advertising
did play a substantial effect in purchase decisions, satisfaction is crucial for repurchasing. They
initially anticipated a favorable effect of TV advertisements on consumers' attention to
advertisements, interest in making purchases, desire to make purchases, action to make
purchases, and happiness with their purchases. Their research also showed that there are
additional factors that affect consumer attention to advertisements, interest in making purchases,
desire to make purchases, action to make purchases, and customer happiness.

Till and Baack (2005) observed the influence of advertisement content creativity on audience
attitude towards brand and their purchase intention. The study concluded that creativity used in
advertisements had an effect on audience attitudes and their intention to purchase the advertised
product. This study showed that creative ad content has a positive effect on audience purchase
intention and can be employed as a method of reaching desired level persuasiveness, which is
why it should be considered when measuring the effectiveness of advertisements.

Yoo et al. (2000) found that there is a strong and positive correlation between advertisement
message and brand equity over time in their studied panel data, providing empirical support for
the relationship between advertisement message content and brand awareness. Their research
confirms that while the content of advertising messages may not directly influence purchases,
they do help to build brand equity.

Source Dynamic Logic carried out a survey in 2009. The emphasis was on how consumers
responded to different kinds of television, web, and magazine advertisements. The survey found
that despite awareness of advertising in all forms of media, consumers' behavior has been altered
by marketing to the point where they exclusively favor certain brands.

20
Clave (2014) linked many active buying decisions made by newspaper readers with their
satisfaction levels with regard to the print news content and print advertising. A discriminate
analysis of the data obtained enables the conclusion that people who were motivated to make a
purchase after reading local newspapers and paying attention to print advertisements were driven
primarily by the impressiveness and attractiveness of the deal offered in the advertisement, the
level of influence exercised by the newspaper where the advertisement is run, and the level of the
quality of information provided by the news outlet. As a result, this study will present substantial
evidence of the strong correlation between powerful and alluring advertising and its commercial
significance in influencing customers' purchasing decisions.

2.3 Conceptual Framework

2.3.1 Advertising and Brand Image

Advertising in various media outlets essentially aims to catch the audience's attention by
outlining the benefits of each of its constituent parts. The fact that each ad element will be
utilized as a weapon to grab consumers' attention and hence is anticipated to create a positive
perception of their brand must be taken into account by the advertisers. In order to create a
favorable perception in the eyes of consumers and to influence consumers in the purchase
decision process, which can ultimately lead to loyalty to a brand-specific product, image is one
effective way to attract consumers.

2.3.1.1 Advertising Message content and Brand Image

Any type of advertisement's content, strategy, and creativity are thought to be essential
components of any advertisement campaign, especially when gauging how effective it is.
According to Keller (2007) explanation of brand image, is presented as types of knowledge
resultantly generated from advertisement message. Clark et al. (2009) empirically reported that
the imagery content of advertisement functionally yield a positive attitude of the audience
towards the advertised brand. Ang and Low (2000) and Stone et al, (2000) also argued that
creativity used in advertisement have an impact on audience attitude and intention to buy the
advertised product. Their study affirms that advertisement message’s content contribute towards
the development of brand image. Hence, the first hypothesis states:

H1: Advertisement Message Content has a positive and significant effect on brand equity.

21
2.3.1.2 Advertising Source Factor and Brand Image
The importance of using expert, credible and trustworthy sources was shown in studies by
(Ohanian, 1990; Hoyer and Maclnnis, 2010 and Kotler and Keller, 2008), who showed that the
perceived expertise of celebrity endorser was significant in explaining purchase intentions. It was
suggested that spokespeople that partake in advertisement of a product are most effective when
they are credible, well-informed, and qualified to talk about the product they are endorsing.

H2: Advertisement Source Factor has a positive and significant effect on brand equity.

2.3.1.3 Advertising Media Type and Brand Image

Attempts to capture effects of media vehicles on the messages transmitted have been pursued
both from media scholars and advertising researchers. It was early acknowledged that a transfer
effect exists between the media vehicle image and the advertised brand that this was known
among media buyers, and that it would have implications for the execution of advertising
campaigns depending on communication goals (Yoo et. al., 2002).

Target audience, cost, and creative considerations are the most crucial elements when choosing
media types. By determining which media vehicles will reach the specified target demographic,
satisfy financial restrictions, and be compatible with and enhance the creative message of the
advertiser one can obtain the maximum benefits of advertisement and amass a bulky audience
that have the awareness about the company and its product (Shimp, 2008 and Kotler &
Armstrong, 2008).

H3: Advertisement Media Factor has a positive and significant effect on brand equity.

Based on the related literature review and the above points with regard to each element the
conceptual framework is developed. The framework shows the variables of the study which
include Advertisement message content, Advertisement source factor and advertisement media
factor as the independent variable that affect the brand image (dependent variable) of the case
company.

22
Figure 2.1: Conceptual framework

Message Content Brand Image

Advertisement  Brand Awareness

Source Factor  Brand Association
 Brand Loyalty
Media Type

Source: (Hoyer and Maclnnis, 2010: Tsi and tsi, 2006 and Yoo et. al., 2002)

23
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1. Research Design

A research design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the research problem. This research used descriptive and
explanatory research design. Explanatory which is sometimes referred to as analytical research is
a type of cross- sectional research used to identify any causal links between the factors or
variables that pertain to the research problem. Explanatory research was employed in this study
to examine the effect of advertisement on brand image. As described by Suryabrata (2003)
explanatory method is a method that describes the study systematically, factually and accurately
utilizing facts, behaviors and relationship between the phenomenons’s being studied.

This study explained the effects of advertisement on brand image. The study utilized correlation
and regression analysis for the hypotheses testing. As it is typical of case based correlation study,
the research administered questionnaire and the results was analyzed.

3.2. Research Approach

There are three basic approaches to research, quantitative approach, qualitative and mixed
approach. In order to investigate the problem, a quantitative approach was used in this study.
Quantitative approach involves the generation of data in quantitative form which can be
subjected to rigorous quantitative analysis in a formal and rigid fashion. This usually means
survey research where a sample of population is studied (questioned or observed) to determine
its characteristics, and it is then inferred that the population has the same characteristics (Kothari,
2004).

Consequently, the study required analyzing the relationship between variables and testing using
statistical procedures. Due to this nature of the study the quantitative research approach was
adopted.

The strengths of the quantitative methodology are- it follow scientific approach; bias from the
researcher‘s influence is less; it can employee large sample size; it can test the validity and

24
reliability of the instrument. So, the results can be believed and generalized for larger population.
This study will employ a quantitative approach to analyze quantitative data that will be gathered
from systematic questionnaires that will be used to perform the analysis.

3.3 Target population

The study basically targeted customers of Bank of Abyssinia. Customers of the bank were
contacted at selected branches found in Addis Ababa town.

3.4. Sample Procedure and Sampling Size

According to the company’s 2023 report Boa has more than 800 branches in the country of
which 256 are located in Addis Ababa. As it is difficult to contact customers in all of the
branches in Addis Ababa the researcher conveniently selects eight branches.

Table 3.1: Branches Selected for the Study

Name of Branch
1 Aware Branch
2 Balderas condominium branch
3 Bambis branch
4 Churchil road branch
5 Cinema ras branch
6 Derartu tulu branch
7 Fiwuha branch
8 Kidist Mariam branch

To administer the questionnaires as the number of consumers is infinite and is difficult to prepare
source list, the researcher used survey from the sample population. In this case, the researcher
generated samples from the sample population using sample size formula, which is presented in
(Bill Godden, 2004.)

Sample Size – for Infinite Population (where the population is greater than 50,000)

𝑆𝑆 = 𝑍2 ∗ (𝑝) ∗ (1 − 𝑝)
𝐶2

25
Whereas,

SS = Sample Size

Z = Z-value(e.g., 1.96 for a 95 percent confidence level)

P = Percentage of population picking a choice, expressed as decimal (0.5 standard deviation)

C = Confidence interval, expressed as decimal (e.g., .05 = +/- 5 percentage points)

A Z-value (Cumulative Normal Probability Table) represents the probability that a sample will
fall within a certain distribution.

The Z-values for confidence levels is 1.96 = 95 percent confidence level

(1.96)2 ∗ 0.5 ∗ 0.5

𝑆𝑠 =
0.52

Sample size = 384.16 ≅ 384

As a result, based on the formula this study used a sample of 384 customers of the bank.
Consequently, the researcher distributed questionnaire for three hundred eighty four (384)
sampled respondents i.e. 48 questionnaires at each selected branch.

3.5 Data Source and Data Collection Instruments

In order to gather the data from the sources, the study used primary data collection instruments.
The primary data was conducted in the form structured questionnaires that are distributed to
customers at the branch offices.

The items of the questionnaire were adopted from the prior literature ((Hoyer and Maclnnis,
2010: Tsi and Tsi, 2006 and Yoo et. al., 2002)). The adopted items were slightly modified
according to the context of the study. The questionnaire that was used in this study has two parts.
The first part was designed to collect the demographic information from each respondent. The
second part contains information to assess variables and is prepared on five-point Likert scale
ranged from "1=Strongly Disagree" to "5=Strongly Agree".

26
3.6 Method of Data Analysis
The study analyzed the data from respondents through questionnaire by using SPSS version 20.0
software tool. The study first presented collected data from primary sources by using tables
which are expressed in the form of mean and standard deviation. To examine the relationship
between brand image and each of the advertising factors, the study used Pearson’s Correlation
coefficient. Moreover, the study conducted multiple regressions to analyze the data after
conducting reliability test, descriptive statistics and Pearson correlation.

3.7. Model Description

According to the conceptual framework presented in Chapter 2, the regression equation on the
variables can be stated as follow;

Y= β0 + β1X1 + β2 X2 + β3 X3 + Ei

Where:

Y is the response or dependent variable- brand image

X1 = Advertising Message Content,

X2 = Advertising Source Factor,

X3 = Advertising Media Factor,

Ei = Error term set up to demonstrate the unexplained portion of the dependent variable through
the above exogenous variables.

Besides β0 indicates constant which shows the magnitude or the value of satisfaction when the
coefficient for the above four explanatory variables become zero.

3.8 Reliability
The reliability of tools tests the accuracy of tools. The reliability of the tools is viewed by
Creswell (2003) as the degree of accuracy demonstrated by the tools or method. A standardized
test's reliability is typically expressed as a coefficient of correlation, which calculates the
intensity of the association between variables

27
Before progressing to the main analysis, the researchers performed a reliability test. The
importance of the reliability test was to assess the possible limitations of the testing instrument
so that it could influence steps to mitigate the errors found.

The Cronbach’s alpha was used to assess the reliability of the scales used for this research.

Table 3.2; Reliability Test Statistics

Variables No of Items Cornbach’s Alpha result

Message Content 6 0.741

Source Factor 6 0.758

Media Factor 5 0.861

Brand Image 6 0.786

Source; own survey & SPSS output (2023)

In order to achieve internal reliability, various authors accept different values from this test, but
the most widely accepted value is 0.70, as it should be equal to or greater than internal reliability
(Hair et al., 2003). The Cronbach Alpha values for each area in the questionnaire are shown in
Table 3.3 above. As can be seen from the table, Cronbach's Alpha is in the range of 0.741-0.861
for each field value. This range is considered high; the result ensures that each area of the
questionnaire is accurate.

3.9 Validity of Instruments

Validity is defined as the degree to which an instrument accurately measures what is supposed to
measure. It is concerned with how well the concepts are defined by the measures (Hair et al.,
2007). In this study, structured questionnaire was developed based on the conceptual framework
of the study designed to address the intended assessment questions and objectives. To establish
the validity of the data collection instrument, the researcher examined previous research works
and developed the questionnaires based on the reviewed literatures.

28
3.10 Ethical Consideration
According to Collin F, 2007, when conducting research, treating people unfairly and using or
encouraging others to use the knowledge gathered during the research work to hurt people is
unethical. Reasonable research ethics are taken into account in this report.. The respondents are
told that they are required to provide accurate information and that they have the right to privacy,
not to be misled, and to be informed about all aspects of the study. According to Creswell (2003)
a researcher has a duty to respect the informants' privileges, needs, values, and wishes, so the
rights, needs, values, and interests of respondents are respected. Throughout the study method,
the researcher followed legal and morally correct procedures. The data was obtained with the
participants' full consent, and the researcher explicitly explained the intent of the study,
maintained objectivity, and protected the subject's rights and confidentiality.

29
 CHAPTER FOUR

RESULTS AND DISCUSSIONS

The general objective of the study was to examine the effect of advertisement on brand image in
the case of Bank of Abyssinia. To attain the objective of the study, data from primary source was
collected through questionnaires distributed to sampled customers at eight selected Bank of
Abyssinia (BoA) branches.

In this chapter data presentation, interpretation and discussion are presented. As stated in the
previous chapter the study took a sample size of 384 customers of the bank as a primary data
source to conduct the study. Thus, 384 questionnaires were given to customers at the selected
branch offices. Of which 345 questionnaires were correctly filled in and returned which makes a
response rate of 90%. This response rate was good enough to make conclusions for the study.
The data of the respondents is analyzed by using appropriate statistical tools. The first part of this
chapter discusses about the demographic characteristics of respondents, while the rest deals with
the analysis and interpretation of findings of the study.

4.1 Demographic Characteristics of the Respondents

Figure 4.1 below was designed to display the respondent’s general characteristics. When we look
at the gender of respondents 76.8% and 23.2% were male and female respectively. This result
reveals the majority of customers are male. As it is shown on figure 4.1 below respondents were
also requested to indicate their age category, the findings revealed that 22% of the respondents
indicate their age to be less than 25 years, 15.6% were aged between 26 to 35 years, 49.6% of the
of the respondent indicated they were aged between 36 to 45 years, whereas the remaining
12.8% of the of the respondent indicated they were aged between 46 to 55 years. This is an
indication that majority of the customers (62.4%) are middle age men above 36 years of age.

Figure 4.1; Demographic characteristics of the target respondent

30
 Gender Age
12.8 Below 25
22.2
Male 22 25-35
76.8 Female 49.6 15.6 36-45
46-55

Years as Customers of the Bank

0.3

22.6 below 5yrs

35.1
5-10yrs
11-15yrs
16-20yrs
42

Source; Own Survey (2023)

As presented on Figure 4.1 above, the study also requested the respondents to indicate how long
they have been the customers of the bank. Their responses’ revealed that 22.6% of the
respondents have been a customer of the bank for less than five years, 42.0% of the respondents
had been a customer ranging 5 to 10 years, 35.1% of the respondent indicated that they had been
a customer for a period ranging between 11 to 15 years, 0.3% of the respondents had a customer
experience with the bank ranging between 16 to 20 years. This implies that most of the
customers (77.4%) have at least 5years of experiences as customers of the bank. This result adds
recognized value for this study, as most of the respondents have enough customer experience
that can enable them to give valuable responses to the issues raised in the questionnaires
distributed.

4.2. Descriptive Statistics

This study has appraised the effect of advertisement on brand image in the case of Bank of
Abyssinia. The data collected was analyzed by using descriptive statistics, inferential statistics

31
and multiple regressions. In this part of chapter four descriptive analysis of the variables is
presented.

The respondents were asked to rate their response on a five point Likert scale ranging from one
(strongly disagree) to five (strongly agree). Based on this, each independent variable is first
analyzed descriptively using percentile, mean and standard deviation (SD).

The resulting Mean score values were interpreted using the scale proposed by Best (1977). That
is, mean score values between 1 to1.8 represent high level of disagreement; mean score value
between 1.81 to 2.6 represent disagreement; mean values between 2.61 to 3.40 represent neutral
level towards the proposed statement; mean values between 3.41 to 4.20 show disagreement; and
mean score value greater than 4.21 show high level of agreement with the proposed statement.

4.2.1 Message Content

The study sought to establish the view of the respondents regarding the advertising message
content. To do so the study asked respondents questions related with the message content of the
advertising carried out by Bank of Abyssinia. The responses are presented in table 4.1 below.

As presented in table 4.1 below, the first statement sought to establish the degree to which
respondents agreed to existence of creative wordings in Bank of Abyssinia advertisements.
About 14.5% of the respondents strongly disagreed or disagreed, 35.9% of the respondents felt
neutral and 49.6% of the respondents agreed or strongly agreed. This shows that most
respondents agreed that BoA uses creative wordings in its advertisements.

According to table 4.1 below, more than half of the respondents (51.6%) either agreed or
strongly agreed that Bank of Abyssinia advertisements gives necessary information about the
company. In addition, customers were asked to show their opinion whether Bank of Abyssinia
advertisements are easy to understand. Majority of the respondent customers (47.2%) agreed or
strongly agreed with this regard. In contrast, with regard to advertisements presenting consistent
information about the image of the company, majority of the respondents (45.5%) felt neutral.

32
Table 4.1; Respondents opinion about message content

Percent (%)
S.D Disagree Neutral Agree S.A
The wordings of Bank of Abyssinia advertisements 1.2 13.3 35.9 45.8 3.8
are creative.
Bank of Abyssinia advertisements gives necessary .6 13.6 34.2 48.1 3.5
information about the company/brand
Pictures and images make Bank of Abyssinia .9 14.8 35.9 47.2 1.2
advertisements interesting
Bank of Abyssinia advertisements are easy to .9 13.9 38.0 45.5 1.7
understand
Bank of Abyssinia advertisements presented 1.2 16.5 45.5 34.8 2.0
consistent information about the image of the
brand/company
After seeing Bank of Abyssinia advertisements, I 1.2 16.2 35.9 44.6 2.0
am well informed about the brand/company

Item Mean 3.48

Item S.D 0.782

Source: Own Survey and SPSS output (2023)

In general, as could be observed in table 4.1 above, the overall mean of the set of items was 3.48.
This implies that customers agreed the advertisement regime of BoA is creative, well informing
and easy to understand. The overall standard deviation for the items presented above was less
than 1.00, suggesting that the respondent’s perception were relatively similar.

4.2.2 Source Factor

According to Solomon et.al (2006), the likelihood that a communication could be accepted can,
in most cases, be greatly influenced by its source. With this in mind the next set of items in the
questionnaire inquired respondents’ opinion about the advertisement source factor. Results are
presented in table 4.2 below.

33
Table 4.2; Respondents opinion about source factor

Percent (%)
S.D Disagree Neutral Agree S.A
Bank of Abyssinia uses a well known celebrity to 1.7 15.4 31.6 46.7 4.6
advertise its company and services
The persons and characters that appear in Bank of 1.2 15.4 31.9 43.2 8.4
Abyssinia advertisements are well informed about
the company and its services
The persons and characters used by Bank of 1.2 13.6 29.9 50.4 4.9
Abyssinia For advertisement are credible
The persons and characters used by Bank of 2.9 23.2 27.8 41.2 4.9
Abyssinia For advertisement looks qualified to
endorse the company
The persons and characters used by Bank of 2.3 19.1 33.0 41.2 4.3
Abyssinia For advertisement looks sincere
The persons and characters used by Bank of 1.2 15.9 36.2 42.0 4.6
Abyssinia For advertisement are appealing.

Item Mean 3.42

Item S.D 0.852

Source: Own survey & SPSS output (2023)

As it can be observed from Table 4.2 above, 51.3% of the respondents either agreed or strongly
agreed that Bank of Abyssinia uses a well known celebrity to advertise its company and services.
Similarly, 51.6% and 55.3% of the respondents agreed or strongly agreed with the statements;
persons and characters that appear in Bank of Abyssinia advertisements are well informed about
the company and productivity and persons and characters used by Bank of Abyssinia For
advertisement are credible. In addition, majority of the respondents also agreed (in cumulative
term) about the remaining statements presented in table 4.2 above.

34
In general, as could be observed in table 4.2 above, the overall mean of the set of items was 3.42.
These results show respondent customers believe that the advertisement sources used by the
bank are reliable, appealing and are informed about the company and its services. The overall
standard deviation for the set of statements presented above was less than 1.00, suggesting that
the respondent’s perception were similar.

4.2.3 Media Factor

Advertising message gets to the intended person through a medium which could be visual, audio
or text or a combination. According to Owusu and Nyarku (2015), the advertisement medium
used by an organization should be easily available, well known and trustworthy in order to meet
its intended goal. In this regard, responses regarding media factor are presented below.

Table 4.3; Respondents opinion about media factor

Percent (%)
S.D Disagree Neutral Agree S.A
Bank of Abyssinia uses most available medias to 1.2 20.3 27.5 45.2 5.8
present its advertisement consumers
Bank of Abyssinia uses a well-known medium to 1.4 14.8 36.2 41.2 6.4
present its advertisement
Bank of Abyssinia advertisement Medias effectively 2.3 19.4 47.0 29.0 2.3
convey advertising messages to Bank of Abyssinia
customers
Bank of Abyssinia uses advertisement medias that 3.5 15.4 29.6 44.6 7.0
are trustworthy and legitimate
The advertising media used by Bank of Abyssinia 2.0 19.4 39.7 33.6 5.2
has significantly contributes to my choice

Item Mean 3.32

Item S.D 0.812

Source: Own survey & SPSS output (2023)

35
As presented in table 4.3 above, the majority of the respondents agreed(in cumulative term) for
the statement that Bank of Abyssinia uses most available Medias to present its advertisement
consumers (51%). Similarly, 47.6% and 51.6% of the respondents agreed (in cumulative term)
with the statements; Bank of Abyssinia uses a well-known medium to present its advertisement
and Bank of Abyssinia uses advertisement Medias that are trustworthy respectively. In contrast,
most of the respondents felt neutral with the statements; Bank of Abyssinia advertisement
Medias effectively convey advertising messages (47%) and advertising media used by Bank of
Abyssinia has significantly contributes to my choice (39.7%).

In general, as could be observed in table 4.3 above, the overall mean of the set of items was 3.28.
This implies that respondents’ opinion about the media factor is close to neutral. The overall
standard deviation for the set of statements was less than 1.00, suggesting that the respondent’s
perception were alike.

4.2.4 Brand Image

Table 4.4; Respondents opinion brand image

Percent (%)
S.D Disagree Neutral Agree S.A
Bank of Abyssinia provide good value services .3 9.3 38.8 46.1 5.5
Bank of Abyssinia creates a favorable image in my mind. 7.2 40.3 46.7 5.8
In my opinion bank of Abyssinia is one of the leading 7.2 37.1 47.2 8.4
brands in the market.
Bank of Abyssinia has a better service quality when 9.0 36.2 48.4 6.4
compared to other banks
Bank of Abyssinia has credibility 1.7 14.8 42.3 38.6 2.6
Among several banks Bank of Abyssinia would be my first .6 13.0 52.5 32.5 1.4
choice

Item Mean 3.54

Item S.D 0.721

Source: Own survey & SPSS output (2023)

36
Table 4.4 above presents opinions’ of respondents about the brand image of the bank. As it is
presented in the table, in all the items except the last two in the above table most respondents
agreed (in cumulative term), with the proposed statement concerning the issue. Moreover, the
mean score value for the statements was 3.54. This implies respondent customers have a positive
image concerning the bank.

4.3 Correlation Analysis

Correlations measure the direction and association between two variables. The correlation
coefficient, which ranges from +1 to -1;a correlation coefficient of +1 describes a perfect
positive relationship in which every change of +1 in one variable is associated with a change of
+1 in the other variable. A correlation of -1 describes a perfect negative relationship in which
every change of -1 in one variable is associated with a change of -1 in the other variable. A
correlation of 0 describes a situation in which a change in one variable is not associated with any
particular change in the other variable (Field, 2005). Accordingly, Person’s rho correlation
coefficient was employed to find out the relationship between the independent variables and the
dependent variable.

To interpret the strengths of relationships between variables, the guidelines suggested by Field
(2005) is followed. His classification of the correlation coefficient (r ho) is as follows: if
correlation coefficient (rho) is between 0.1 and 0.29 there is a weak correlation, if correlation
coefficient (rho) is between 0.3 and 0.49 there is a moderate correlation and if correlation
coefficient (rho) is greater than 0.5 there is a strong correlation. Table 4.6 exhibits the results of
the correlation analysis made using correlation data analysis technique.

As per table 4.5 below, Pearson Correlation Coefficient was used to assess the relationship
among variables (independent and dependent variables). The result of the correlation coefficient
show that all independent variables are positively related with dependent variable (Brand image)
within the range of 0.584-0.737 and all are significant at p<0.01 level.

As can be seen from the table below, Media factor formed the highest Pearson Correlation value
of r = 0 .737, indicating that media factor of advertisement has positive, strong and significant
correlation with brand image. It was followed by Source factor (rho = 0.598) also interpreted to
have positive and strong correlation with brand image. Message content of advertisement has a

37
correlation value of r = 0.584, depicting that positive, strong and significant correlation with
brand image.

Table 4.5; Pearson’s rho correlation coefficient

Message content Source factor Media factor

Message content Pearson

1
Correlation

Sig. (2-tailed)

Source factor Pearson

.420** 1
Correlation

Sig. (2-tailed) .000

Media factor Pearson

.344** .520** 1
Correlation

Sig. (2-tailed) .000 .000

Brand Image Pearson

.584** .598** .737**
Correlation

Sig. (2-tailed) .000 .000 .000

**. Correlation is significant at the 0.01 level (2-tailed)
Source: Own Survey & SPSS output (2023)

The above correlation result implies that the three independent variables have positive and strong
association with brand image. This implies there is significant association between the
independent variables and brand image (Message content, Source factor and media factor of
advertisement), indicating that they have an effect on brand image.

Table 4.5 also shows the correlation of the independent variables within themselves. It can be
noted that all variables are positively correlated with each other and all correlation among the
independent variables were significant at p<0.01 level. The highest positive correlation goes
between Source and Media factor at rho= 0.520, followed by Message content and source factor at
rho= 0.420. As it can be seen in table 4.5 above, the three independent variables exhibited a
positive correlation among each other.

38
4.4 Regression Analysis

4.4.1 Diagnostic Tests

Before to test the regression model and discussion of its result, diagnostic tests were carried out
to make sure that the data fit the basic assumption or not. Test of normality, Hetroscedasity and
multi-co-linearity are conducted before regression was carried out.

4.4.1.1 Test of Linearity

Linearity refers to the degree to which the change within the dependent variable is related to the
change in the independent variables. To see whether the link between the dependent variable,
behavioral intension of drivers and the independent variables is linear; plots of the regression
residuals through SPSS software had been used.

Figure 4.2: Test of linearity

Source: SPSS output (2023)

The plot of residuals shows no large difference in the spread of the residuals as you look from
left to right on figure 4.2. This result suggests the relationship we are trying to predict is linear.

4.1.1.2 Test of Normality

Another important diagnostic test conducted in this paper is the normality assumption (i.e.
normally distributed errors). According to (Park, 2006), Statistical methods are based on various
underlying assumptions. One common assumption is that a random variable is normally
distributed. In many statistical analyses, normality is often conveniently assumed without any
empirical evidence or test. But normality is critical in many statistical methods.

39
Figure 4.3: Test of normality

Source: SPSS output (2023)

If the residual is normally distributed, the histogram should be bell shaped. And the figure above
points has a bell shape which confirms that the model is free from normality problem.

4.1.1.3 Test of Heteroskedasticity

This assumption can be used to check whether the variance of error is constant or not. If the
assumption of constant variance is violated, the standard error could be wrong and any inference
made from them became misleading. In other word, if the errors do not have a constant variance,
they are said Heteroskedastic (Brook, 2014).

To check Heteroskedasticity there are a number of methods are used, this study employed the
visual inspection of residual scatter plot graph. The residual scatter plot is a figure that depicts
one axis for the standardized residuals and the other axis for the predicted values. If the
Heteroskedasticity assumption is met, the standardized residuals will scatter randomly around a
horizontal line which represents the standardized residuals equaling zero (Stevens, 2009).

Based on the Scatter plot output in figure 4.3 below, it appears that the spots are diffused and do
not form a clear specific pattern. So it can be concluded that the regression model does not occur
Heteroskedasticity problem.

40
Figure 4.2; Heteroskedasticity Test

Source: SPSS output (2023)

4.1.1.4 Test of Multicollinearity

Multicollinearity means that there is a linear relationship between explanatory variables which
may cause the regression model biased. It is used to check whether there is a linear relationship
between explanatory variables included in the model. If such relationship is there, the regression
model could be biased. The primary concern for this test is that as the degree of Multicollinearity
increases, the regression model estimates of the coefficients become unstable and the standard
errors for the coefficients can get wildly inflated (Gujarati, 2003).

To test multicollinearity, this study used VIF values. Variance Inflation Factors (VIFs) is a
method of measuring the level of co linearity between the repressors in an equation. VIFs show
how much of the variance of a coefficient estimate of a repressor has been inflated due to
collinearity with the other repressors. O’Brien (2007) recommended that well-known VIF rules
of thumb (e.g., VIFs greater than 10) should be treated with caution when making decisions to
reduce collinearity (like eliminating one or more predictors). Therefore it can be concluded that
there is no evidence of multicollinearity in the data set, since all VIFs are less than the 10.

41
Table 4.6: Co-linearity Statistics

Tolerance VIF

Message content .802 1.247

Source factor .664 1.507

Media factor .711 1.407

Source: SPSS output (2023)

4.4.2. Regression Results

4.4.2.1 Determination of the Model goodness of fitness

Table 4.7; Model summary

Adjusted R
Model R R Square Square Std. Error of the Estimate

1 .831a .691 .688 .28934

a. Predictors: (Constant), Media Factor, Message Content, Source Factor

b. Dependent Variable: Brand Image

Source; SPSS output (2023)

From the above table 4.8, It can be observed that the coefficient of determination i.e. the adjusted
R-square (R2) value is 0.691, representing 69.1% variation of the dependent variable (:Brand
Image) is due to the independent variables; ), Media Factor, Message Content and Source Factor
while, the remaining 20.9% could be due to the effect other of extraneous variables that were not
considered in this study. Furthermore, the R- Value suggested that there is a strong effect of
these independent variables on brand image.

42
4.4.2.2 Analysis of Variance (ANOVA)
Table 4.8; ANOVA

Sum of
Model Squares df Mean Square F Sig.

1 Regression 63.777 3 21.259 253.933 .000a

Residual 28.548 341 .084

Total 92.326 344

a. Predictors: (Constant), MediaFactor, MessageContent,

SourceFactor
b. Dependent Variable: BrandImage

The F-ratio in the ANOVA (Table 4.8) tests whether the overall regression model is a good fit
for the data. The table shows that the independent variables can significantly predict the
dependent variable, F (3,341) = 253.933, p (.000) < .05 (i.e., the regression model is a good fit of
the data).

4.4.2.3 Determination of Coefficients

Table 4.9; Coefficient

Un-standardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .532 .115 4.627 .000

Message Content .323 .034 .323 9.601 .000

Source Factor .165 .032 .188 5.081 .000

Media Factor .387 .026 .529 14.809 .000

a. Dependent Variable: Brand Image

Source: SPSS output (2023)
43
In order to establish the impact that each independent variable has on the dependent variable, the
study checked the Un-Standardized Coefficients. As indicated in the above table 4.10, all of the
independent variables were significant at P-values less than 0.05 indicating that the three
independent variables considered are statistically significant.

From the above model summary table 4.10, the regression equation is:-

Y= + 0.532+ 0.323X1 + 0.165 X2 + 0.387 X3 + Ei

Where:

X1 = Message content

X2= Source factor

X3= Media Factor and

Ei = Error term

Furthermore, the standardized coefficients are useful to know which of the different independent
variables is more important. They are used in comparison of impact of any independent variable
on the dependent variable. As indicated in the regression coefficients table 4.10, Media Factor
had the highest standardized coefficient (0.529) followed by Message Content (0.323) Source
Factor (188). This explains that Media Factor has higher relative effect on brand image.

. 4.5 Hypothesis Testing and Discussions

The above section of this chapter presents the overall results of the study. In this section of the
study, the researcher presents a further detail discussion on each of the signs and significant
relationship between the dependent variable and explanatory variables.

4.5.1 Advertisement Message Content and Brand Image

The coefficient of advertisement message content was equal to 0.323 and a p – value of 0.000.
The study hypothesized a significant positive relationship between advertisement message
content and brand image. The findings suggest that there is a significant (p<0.01) relationship
between advertisement message content and brand image. Therefore the study hypothesis that

44
there is a significant positive relationship between advertisement message content and brand
image is accepted.

As mentioned in the literature part of this study explanation of brand image, is presented as types
of knowledge resultantly generated from advertisement message. The result of the study is
consistent with the consensus among researches in the area that stipulated the content of
advertisement functionally yield a positive attitude of the audience towards the advertised brand.
It is also argued that creativity used in advertisement have an impact on audience attitude and
intention to buy the advertised product ( Clark et al. 2009: Ang and Low, 2000 and Stone et al,
2000).

Moreover, as Tsai & Tsai (2006) showed in their study advertisement that possesses the right
strategy, creativity and that conveys the needed information will result in a comparatively lasting
attitude change and a high likelihood that customers will choose one’s brand over competing
products. The results in the study and the above discussions shows that advertisement content
that considers creativity and that conveys the needed information will create a positive attitude
among customers and can positively affect brand image.

4.5.1 Advertisement Source Factor and Brand Image

The regression result of this study points that Advertisement source factor is positively (Beta =
.165) associated with brand image and it is statistically significant (P <.001). So, employing the
right advertisement sources has positive and significant effect on brand image.

This result does support the consensus among researchers, who stated the importance of using
expert, credible and trustworthy sources. It is argued in a number of studies (Ohanian, 1990;
Hoyer and Maclnnis, 2010 and Kotler and Keller, 2008) that spokespeople that partake in
advertisement of a product are most effective when they are credible, well-informed, and
qualified to talk about the product they are endorsing. Based on this result, the hypothesis
formulated at the start of the study is accepted.

4.5.1 Advertisement Media Factor and Brand Image

The results obtained from the study indicated, a positive (Beta=0.387) and significant (P <0.001)
relationship between advertisement media factor and brand image.

45
The result is consistent with the studies of Belfield and Shimp (2008), Kotler & Armstrong
(2008) and Maclnnis, (2010), who all concluded that by determining the media vehicles that
reach the target demographic, and be compatible with and enhance the creative message of the
advertiser one can obtain the maximum benefits of advertisement and amass a bulky audience
that have the awareness about the company and its product. Therefore the study hypothesis that
there is a significant positive relationship between advertisement media factor and brand image
is accepted.

Table 4.10 Summary of the hypothesis result

Hypothesis Relationship Result Decision

H1 Advertisement Message Content Positive & Accepted
& Brand Image significant
H2 Advertisement Source Factor & Positive & Accepted
Brand Image significant
H3 Advertisement Source Factor & Positive & Accepted
Brand Image significant

46
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

This study was intended to examine the effect of advertisement on brand image in the case of
Bank of Abyssinia. In this chapter is intended to draw the summary of major findings,
conclusions and recommendations are presented.

5.1 Summary of Major Findings

To meet the objectives of the study the study collected primary data from sampled customers at
selected branch offices of Bank of Abyssinia. The data collected was analyzed by using
descriptive statistics, inferential statistics and multiple regressions. Based on the results of the
study the summary of major findings are as follows.

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. The results in the study also showed a satisfaction among
customers with regard to the credibility and qualification of advertisement sources used by the
bank. 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.

Furthermore, a multiple regression was run to predict the effects of advertisement Message
content, Source factor and Media factor on Brand image. The model statistically significantly
predicted tax brand image. The three independent variables added statistically significance to the
model. The highest contributing predictor was advertisement Media factor (Beta=0.387)
followed by Message content (Beta=0.323) and Source factor (Beta=0.165).

5.2 Conclusions

The study’s objective was to determine the effects of advertisement message content; source
factor and media factor have on brand image. The findings of the regression analysis showed

47
advertisement message content to be one of the major reasons behind attaining expected level of
brand image. It showed a positive and significant association between advertisement message
content and brand image. This result would imply the need to follow advertisement that
possesses the right strategy, creativity and that conveys the needed information. The result
obtained from this study about the effect of advertisement message content on brand image is
consistent with the consensus among researches in the area that stipulated an advertisement that
is easy to understand, interesting and well informing will result a comparatively lasting attitude
change and a high likelihood that customers will choose one’s brand over competing products.
From the result and the literature reviewed in the study it can be said that advertisement content
that considers creativity and that conveys the needed information will create a positive attitude
among customers and can positively affect brand image.

As shown in the regression results, advertisement source factor has a positive and significant
effect on brand image. This is consistent with the result of several studies which found out
advertisement schemes with credible, well-informed, and qualified sources would prevail in
achieving a positive image among the audience. So, it is imperative for organizations to properly
evaluate and select the appropriate advertisement sources.

Moreover, results showed that advertisement source factor has a significant positive effect on
brand image. Thus, it can be concluded that a positive change in the quality of the medium
employed for advertisement can bring positive improvement on brand image. This result is in
line with the concept that determining the correct media vehicles that reach the target
demographic, and be compatible with and enhance the creative message of the advertiser one can
obtain the maximum benefits of advertisement and amass a bulky audience that have the
awareness about the company and its product. In general, the results in the study and related
literature shows that conveying the right message, examining the right sources and medium in
advertisement can result a positive change in brand image, thus benefiting the organization to
achieve its marketing goals.

5.3 Recommendations

The study recommends the following points based on the findings;

48
This study has demonstrated that the content of an advertisement message has a positive effect
on brand image. It is noted that creativity in advertisement and an advertisement that conveys the
needed information will help an organization to achieve the expected results. Hence, it is
important to consider creative methods that are easy to understand and are well informing to the
audience.

Results in the study showed that brand image is significantly impacted by the selection of the
relevant and adequate advertising medium for promoting the brand. The majority of businesses
squander money on advertising because of poor media choices, which also kills the advertised
product. Therefore, when choosing the advertisement medium, organizations should consider the
reliability, accessibility, coverage, quality, and technology of the media.

49
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 Annex 1

St. Mary University

School of Postgraduate Studies

(Questionnaire filled by customers of Bank of Abyssinia)

Dear Respondent,

I am Zekarias Said, a post graduate student at St. Mary University. This questionnaire is prepared

in order to conduct a study for the partial fulfillment of the requirements for the Award of a

Master’s Degree in Marketing Management at the University. The title of the research work is,

“The Effects Of Advertisement On Brand Image (The Case Of Bank Of Abyssinia.’’ Hence, to

gather information, I kindly request your assistance in responding to the questions listed below.

Any information you present will be kept absolutely confidential and will only be used for

academic purpose. Your cooperation and prompt response will be highly appreciated.

NB

 Writing your name is not necessary

 Please put “X” for your choice in the box

Part I. General background of the employee

1. Sex/Gender/: Male (_____) Female (______)

2. Age (in year): below 25 (_________), 25 to 35 (____), 36 to 45 (____), 46 to 55 (___), above

55 (____)

3. How long have you been the customer of the bank; Below 5 yrs (_______),5-10 yrs (______),

11-15yrs (_______), 16-20 (_____) above 20 (_____)

Part 2 Questions related to the study

Answer the following questions and put “X” in the box that is given in each of the cell below

The values of scales are

5= strongly agree, 4= Agree, 3= Neutral, 2= Disagree, 1= strongly disagree

No Question 1 2 3 4 5

Questions related to Message Content (MC)

1 The wordings of Bank of Abyssinia advertisements

are creative.

2 Bank of Abyssinia advertisements gives necessary

information about the company/brand

3 Pictures and images make Bank of Abyssinia

advertisements interesting

4 Bank of Abyssinia advertisements are easy to

understand

5 Bank of Abyssinia advertisements presented

consistent information about the image of the

brand/company

6 After seeing Bank of Abyssinia advertisements, I

am well informed about the brand/company

Questions related to Source Factor (SF)

1 Bank of Abyssinia uses a well known celebrity to

 advertise its company and services

2 The persons and characters that appear in Bank of

Abyssinia advertisements are well informed about

the company and its services

3 The persons and characters used by Bank of

Abyssinia For advertisement are credible

4 The persons and characters used by Bank of

Abyssinia For advertisement looks qualified to

endorse the company

5 The persons and characters used by Bank of

Abyssinia For advertisement looks sincere

6 The persons and characters used by Bank of

Abyssinia For advertisement are appealing.

Questions related to Advertising Media Factor (MF)

1 Bank of Abyssinia uses most available medias to

present its advertisement consumers

2 Bank of Abyssinia uses a well-known medium to

present its advertisement

3 Bank of Abyssinia advertisement Medias

effectively convey advertising messages to Bank of

Abyssinia customers

4 Bank of Abyssinia uses advertisement medias that .

are trustworthy and legitimate

5 The advertising media used by Bank of Abyssinia

has significantly contributes to my choice

Questions related to Brand Image (BI)

1 Bank of Abyssinia provide good value services

2 Bank of Abyssinia creates a favorable image in my

mind.

3 In my opinion bank of Abyssinia is one of the

leading brands in the market.

4 Bank of Abyssinia has a better service quality

when compared to other banks

5 Bank of Abyssinia has credibility

6 Among several banks Bank of Abyssinia would be

my first choice