ABSTRACT
The continuous reliance on advertising by financial institutions, suggests an appreciable level of trust as a communication tool. Advertising media which uses electronic energy to transmit information to the end user is called electronic media advertising. (Radio and Television). Advertising media in form of printed articles is referred to as print media (Newspaper and Magazines). The broad objective of this is to examine the Effect of Advertising Media on Customers’ Patronage for Banking Service in Abia State, Nigeria (A Study of First City Monument Bank PLC). The specific objectives include describing the socio - economic characteristics of the respondents; to examine the impact of electronic advertisement on customers’ patronage; to ascertain the impact of print media advertisement on customers’ patronage and to evaluate the effect of advertisement in promoting banking services. The data was analysed based on the objectives of the study. Questionnaires were administered to 139 FCMB customers including branch managers and customer care personnel. Statistical Package for Social Sciences (SPSS) was used to analyse the data. Results from the analysis shows that majority of the respondents 39.56% strongly agree that print media (newspaper and magazines) have positive impact on advertisement of FCMB banking services in Abia state. The study also revealed that electronic media ads were carried out as a competitive strategy to promote the bank and increase its market share and exposure against competitors. It is therefore recommended that FCMB should also increase media for advertising from television and radio (electronic media) to bill board, posters and pamphlets so that advertising message will reach many people.
TABLE OF CONTENT
Tittle Page i
Research Evaluation ii
Declaration iii
Certification iv
Dedication v
Acknowledgement vi
Table of content vii
Lists of table viii
Abstract xii
CHAPTER
ONE: INTRODUCTION
1.1
Background to the Study 1
1.2
Statement of the problem 3
1.3
Objective of the Study 4
1.4
Research Question 5
1.5
Research Hypotheses 5
1.6
Scope of the Study 6
1.7
Significance of the Study 6
1.8
Definition of the Study 6
CHAPTER
TWO: REVIEW OF RELATED LITERATURE
2.0 Conceptual
framework 8
2.1 Advertising
media 8
2.1.1 Television
advertising and customer patronage for banking services 9
2.1.2 Radio
advertising and customer patronage for banking service 10
2.1.3 Newspaper
advertising and customer patronage for banking services 11
2.1.4 Magazine
advertising and customer patronage for banking services 12
2.2 Objectives
of advertising media 14
2.3
Role of Advertising media 15
2.4 Theoretical
framework 16
2.5 Empirical
framework 18
2.6 Marketing
Efficiency Model/Data Envelopment Analysis (DEA) 21
CHAPTER
THREE: RESEARCH METHODOLOGY 23
3.1 Research
Design 23
3.2 Area
of Study 23
3.3 Source
of Data/Method 24
3.4 Population
of the Study 24
3.5 Sampling
Techniques and Sample Size 25
3.6 Validity
of Instrument 25
3.7 Method
of Data Analysis 26
3.8 Reliability
of Instrument 26
3.9 Model
of Specification 26
CHAPTER
FOUR: RESULT AND DISCUSSION 28
4.1 Socio
Economic Characteristics of
Respondent
28
4.2 Impact of Electronic media (Television
and Radio) advertisement on
customers’ patronage. 31
4.3 Impact of Print Media (Newspaper and
Magazines) Advertisement on customers’ patronage
35
4.4 Effect of Advertisement in Promoting
Banking Services 37
CHAPTER
FIVE: SUMMARY CONCLUSION AND POLICY
RECOMMENDATION 42
5.1 Summary 42
5.2 Conclusion 43
5.3 Policy
Recommendation
REFERENCES APPENDIX 50
LIST OF TABLE
Table 4.1 Sex Distribution of
Respondent
28
Table 4.2 Age Distribution of
Respondent
29
Table 4.3 Educational
classification of Respondent
30
Table 4.4 Customer Account
Classification
30
Table 4.5 Do you
agree that Television is best medium to advertise banking 31 services?
Table 4.6 Do you agree that Radio is the
best medium to advertise banking 32
services?
Table 4.7 Television and Radio (Electronic
Media) has positive impact on 32
customers’ patronage
Table 4.8 Regularity of Electronic media
advertisement
34
Table 4.9 Do agree that Newspaper is the
best medium to advertise banking 35
services?
Table 4.10 Do you agree that Magazines is
the best medium to advertise 35
banking services?
Table 4.11 Newspaper and Magazine (print
media) has positive customers’ 36 patronage
Table 4.12 Coefficients of effects of
advertisement on banking services
38
CHAPTER
ONE
1.0 INTRODUCTION
1.1 Background to the study
Advertising is a promotional tool that has
deep seated roots in the formative period of recorded history. Advertising just
like many concepts does not lend itself to single definition. Advertising is
any paid massage presented through various media such as television, radio,
Magazines, Newspaper, or Billboard by an identified source (Bennet, 2006).
Advertising is seen as any form of communication intended to persuade an
audience (viewers, readers, or listeners) to purchase or take some action upon
product, services or ideas (Kotler 2006).
Rusel and Lane 2006 also described Advertising as a paid service from an
identified sponsor and delivered through some medium of mass communication.
Advertising is the most important tool
that facilitates marketing of product and service. Companies all over the world
have universally accepted this fact. The expenses on advertising are considered
to be a profitable investment that reaps profit both in the short run and long
run. Businesses that keep on advertising regardless its costs get a competitive
advantage over their counterparts that minimize advertising costs/budgets.
The final consumers’ gets relevant
information about the product; this enable him take a purchase decision.
Advertisement makes consumers to be aware of the existence of different brands
of commodities and gives the price to make choice among the various brands. These
further enable the consumers’ from being exploited unnecessary by middlemen.
Advertising is above all, a practical affair (Perner, 2007). A specific
advertising massage is targeted at a specific audience; giving them the opportunity
to read, hear, and view the massage. The
link between the advertiser and intended audience is the media. Advertising is usually aimed at reaching large audiences; hence,
their communicating vehicles are called the mass media. Television has the
greatest impact especially for those products or services where a demonstration
is essential. It combines the virtues of both the storyteller and the
demonstrators. To be effective, these massages must be simple and able to
overcome household distraction. Radio advertising has increased greatly in
recent years, with the granting of many more licenses. It reaches specific
audience at different times of the day. Advertising in the newspaper offers
many advantages; though, inherent limitation in reaching out to uneducated
audience.
For the effective data generation
regarding this study, (FCMB) has been carefully chosen. First City Monument
Bank (FCMB) is a financial institution that renders banking services in
Nigeria. The entity from which the bank is funded is City Securities Limited which
was established in 1978. FCMB was founded in Apirl 1982, by Mr Michael Subomi
Balogun. FCMB was incorporated as a
private limited liability company on 20th April 1983, granted a banking license
on 11th of August 1983. It was the first bank to be established in Nigeria without
government and foreign support. On 15th July 2004, FCMB changes its status from
a private limited liability company to a public limited liability company and
was listed on the Nigerian Stock Exchange (NSC) on 12th of December, 2004. The
FCMB headquarters is in Lagos Island; Lagos State, Nigeria, The Company has six
segments: Retail banking, business banking, corporate banking, treasury and
financial markets, institutional banking and investment banking. Retail banking
provides private banking services, private customer, current account, savings,
deposits, investment saving product, custody, credit and debit cards, consumer
loans and mortgages. FCMB Plc shares were listed on the Nigerian stock exchange
in the year 2004; and after wards successfully raised additional capital in
excess of N20 billion through private
and public offers. FCMB with a nationwide network of 150 branches and several
subsidiaries has emerged as one of the leading and most respected financial
service institution in Nigeria. The FCMB revenue is roughly (US$72 million NGN,
11.9 billion) and numbers of employees are now over 2,000 staff (FCMB Annual Report,
2013).
1.2 Statement of Research Problem
Advertisement has become an integral part
in today’s marketing scenario.
Advertising presents and uphold the ideas, commodities and services of a
recognized advertiser, which provides as a communication link between the
producer and the potential buyers who are interested in seeking information
about a product or services. Advertising is the most efficient means of
reaching people with product information.
Despite the bold step taken by FCMB in its
continual retention of advertisement as a viable means of reaching out to all
its targeted customers, there are some obstacles that hinder the supposed
benefit inherent in achieving its set goals and objectives. For instance,
television lacks the ability to deliver advertisement to highly targeted
customers compared to other media outlet, and also it is somehow deceitful in
nature. The lack of visual element in radio advertisement limits the overall
significant impact of the massage. In newspaper, there is the problem of poor
production and it is not suitable for illiterate people. The problem of
magazines is that it is very expensive; and also not suitable for illiterate
people.
1.3 Objectives of the Study
The broad objective of the study is to analyze
the effect of advertising media on customers’ patronage for banking services in
Abia state Nigeria. The specific objectives of this study include to:
i. describe the socio - economic
characteristics of the respondents;
ii. examine the impact of electronic
advertisement on customers’ patronage;
iii. examine the impact of print media
advertisement on customers’ patronage;
iv. evaluate the effect of advertisement in
promoting banking services
1.4 Research Questions
i.
What
is the impact of electronic advertisement
on customers’ patronage for
banking service?
ii.
What
is the socio- economic characteristics of the respondent banking
iii.
What is
the effect of advertisement in promoting banking services
on customers’ patronage for banking services?
iv.
What
is the impact of print advertisement
on customers’ patronage for
banking service?
1.5 Research Hypotheses
HO1: There
is no significant relationship between print advertisement and customer
patronage for banking services.
HO2: There
is no significant relationship between electronic advertisement and customer patronage for banking services.
HO3: There
is no significant relationship between advertisement and
promoting banking services.
HO4: There
is no significant relationship between socio economic characteristics of respondent and customer patronage for
banking services.
1.6 Significance of the Study
This study will be of great importance to
marketers, bankers, entrepreneurs, researchers and policy makers; as it will be
a source of information about the influence of advertising media to be adopted
by firms or organizations. This study will serve as a reference to students,
agencies, government bodies, and policy makers in general; about the effect of
Advertising Media on Customers’ Patronage for Banking Service in Abia State,
Nigeria.
1.7 The Scope of the Study
This study will focus on the effect of
advertising media on customers’ patronage for banking services. Respondents for
this study will be statistically selected from staff and customers of FCMB for
the purpose of data generation. The study will be carried out in Umuahia, the
state capital of Abia state.
1.8 Definition of Terms
i.
ADVERTISING: Is any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor.
ii.
ADVERTISING MEDIA: Is a channel by which advertisers convey
their message to target group of clientele, thereby informing, persuading or
motivating the group about the significance of the product/service.
iii.
MEDIA: Is the collective communication outlet or tools that
are used to store and deliver information;
iv.
BANK CUSTOMERS’: Is a person who is utilizing one or more of the services
provided by a bank;
v.
BANKING SERVICES:
Is the various ways in which banks render services to their client. These include; legal advice, operating
accounts, making transfers, paying standing orders, selling foreign currency;
etc.
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