ABSTRACT
The competitive landscape in the Microfinance Banking Industry has accentuated the need for effective marketing communication strategy in the marketing of bank services. The objective of this study was to examine the effect of marketing communication tools on the savings mobilization drive of microfinance banks in Akwa Ibom State. To achieve this objective, data were collected using a survey of 400 respondents drawn from the bank branch/cash centres marketing managers, selected staff and customers. 400 copies of the questionnaire were retrieved in useable form representing 100 percent and data analyzed using the simple Regression Model (SRM). Data generated from the study were processed, using descriptive and inference statistics and hypotheses tested with linear regression at 0.05 level of significance. Findings revealed that sales promotion, advertising, publicity and personal selling had significant influenced on savings mobilization drive of microfinance banks in Akwa Ibom State. Based on the findings of this study, the following conclusions were established. Marketing communication tools had significance influence on the savings mobilization drive of Microfinance Banks. This means that increasing efforts in marketing communication potentials of microfinance banks will also yield a corresponding increase in savings mobilization. Thus, we recommended that managers of microfinance banks should enhance effective use of marketing communication tools strategies to increase savings mobilization drive of microfinance banks.
TABLE OF CONTENTS
Title page i
Certification ii
Declaration iii
Acknowledgements iv
Table of contents v
List of tables viii
Abstract ix
CHAPTER 1: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Objective of the Study 3
1.4 Research Questions 4
1.5 Hypotheses 4
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Assumptions 6
1.9 Limitations of the study 7
1.10 Operational Definition of Terms 8
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 9
2.1.1 Concept of marketing communication 9
2.1.2 The concept of savings mobilization 12
2.1.3 Relationship between marketing communication variables advertising,
personal selling, sales promotion and publicity and savings mobilization 13
2.1.4 Relationship between marketing communication variables and
savings mobilization 14
2.1.5 Advertising and saving mobilization drive 15
2.1.6 Sales promotion and saving mobilization drive 16
2.1.7 Public relations and saving mobilization drive 17
2.1.8 Personal selling and saving mobilization drive 18
2.2 Theoretical frameworks 22
2.3 Review of empirical studies 35
2.3.2 Acha Ikechukwu A. (2012) microfinance in banking in Nigeria 36
2.3.3 Oke, M. O. (2012) marketing strategies and bank performance
in Nigeria 37
2.3.4 Ibok, N. I. and Etuk, Samuel G. (2013 ) assessing the marketing orientation
Of microfinance banks in Akwa Ibom State 38
2.3.5 Ekankumo, B. Henry, K. (2011) sales promotion strategies
of financial institutions 38
2.4 Summary of and gap in literature review 38
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Design 41
3.2 Population of the Study 41
3.3 Sampling Technique and the Sample Size 41
3.3 Research Instrument - - - - - - - 43
3.4 Validity of the Instrument 43
3.5 Reliability Test of the Instrument 44
3.6 Measurement of Variables 44
3.7 Sources of Data Collection 50
3.8 Method of Data Analysis 50
3.9 Model Specification 51
3.10 Test of Hypotheses 53
CHAPTER 4: DATA PRESENTATION, ANALYSIS AND
DISCUSSION OF FINDINGS
4.1. Questionnaire Administration 55
4.2 Testing of Hypotheses 60
4.3 Discussion of Findings 66
4.3.1 Sales promotion and savings mobilization drive of
microfinance banks 67
4.3.2 Advertising and savings mobilization drive of
microfinance banks 67
4.3.3 Publicity and savings mobilization drive of microfinance banks 68
4.3.4 Personal selling and savings mobilization drive of
microfinance banks 68
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Major Findings 69
5.2 Conclusion 70
5.3 Recommendations 70
5.4 Suggestion for Further Studies 71
REFERENCES
LIST OF TABLES
4.1: Outcome of Questionnaire Administration 55
4.2: Gender Distribution of Respondents 56
4.3: Age Distribution of Respondents 57
4.4 Marital Status of Respondents 58
4.5 Educational Level 59
4.6 Model Summary of the Effect of Advertising on the Savings
Mobilization Drive of Microfinance Banks 60
4.7: Model Summary of the Effect of Personal Selling on the Savings
Mobilization Drive of Microfinance Banks 62
4.8: Model Summary Linear Repression Model on the Influence of
Sales Promotion on Savings Mobilization of Microfinance Banks 63
4.9: Model Summary of the Effect of Publicity on Savings
Mobilization Drive of Microfinance Banks 65
LIST OF FIGURES
2.1: Schematic Model of the Relationship Between Marketing
Communication Tools and Savings Mobilization drive 22
2.7: Researcher’s Awaca Model 34
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
One of Nigerian's monetary idiosyncrasies is financial dualism. There is a formal budgetary segment made up of the Ministry of Finance, the Central Bank of Nigeria (CBN), Commercial Banks, other monetary organizations and the Nigerian Stock Exchange (NSE). Other than this proper segment there exists and informal money related division with individuals loaning and getting legitimately from one another through techniques like esusu, day by day commitments and cooperatives (Okpara, 1990). The presences of a huge casual financial segment in Nigeria had been accused on a few factors, some of which are the populace fixation in rustic zones a large portion of which are unbanked, low proficiency level, loss of trust in the financial framework because of misery, elitist banking practices and absence of other financial institutions in the rural areas (Acha, 2007).
A portion of the projects custom fitted to tending to the issues of monetary dualism, destitution and joblessness by progressive Nigerian government are; Operation Feed the Nation (OPN), Green Revolution, Nigerian Bank of Commerce and Industry (NBCI), Nigerian Agricultural and Cooperative Bank, Nigerian Economic Reconstruction Fund (NERFUND), National Directorate of Employment (NDE), Community Banking and Microfinance Banking, a considerable lot of these projects neglected to accomplish the destinations for which they were built up and were rejected (Acha, 2012).
One of the last projects to suffer this fate was community banking and in its place the microfinance banking plan was founded. The disappointment of these administration projects can be credited to the issue and difficulties which they confronted. The present plan microfinance banking isn't without its very own difficulties (Acha, 2012).
Thus, there is need to persuasively communicate customer value and build customer relationships in order to enhance effective saving mobilization drive of microfinance banks. Marketing communications is a company’s total promotion mix which consists of the specific blend of advertising, public relations, personal selling, sales promotions and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships (Kotler and Armstrong, 2013). By mobilizing savings, they ensure continued service to meet customers’ needs and build financial strength. It is in the light of the above that we seek to examine the effect of the various marketing communication tools on the saving mobilization drive of microfinance banks in Akwa Ibom State.
1.2 STATEMENT OF THE PROBLEM
Research shows that increase liquidation among microfinance banks (a situation where microfinance is established today and in few years-time the banks ceases to operate), poor reputation of some microfinance banks, absence of customer satisfaction with microfinance services, excessive charges on customers account, poor crises management and a lot more have eroded the public confidence in microfinance banks thus affecting their savings mobilization (Acha, 2012; Akpan and Nneji, 2015).
Unfortunately, there have been several studies (see for example, Benerjee and Jackson, 2016; Breza and Kinnan, 2017; Armendariz and Morduch, 2010; Cai, Park and Wang, 2016) on the activities of Microfinance Banks but little efforts have been done in the area of marketing communications and savings mobilization of microfinance banks in developing economies like Nigeria. Moreso, many studies on financial institutions have been focusing on deposit money banks (commercial banks) with very little or no effort on microfinance banks particularly in Nigeria (Odejimi and Nosa, 2019). It is against this background that we attempt to investigate the influence of marketing communication tools on the savings mobilization drive of microfinance banks with particular reference to microfinance banks in Akwa Ibom State.
1.3 OBJECTIVE OF THE STUDY
The main purpose of this study was to examine the effect of marketing communication tools on the savings mobilization drive of selected microfinance banks. The specific objectives therefore include to:
1. determine the influence of advertising on savings mobilization drive of microfinance banks in Akwa Ibom State.
2. examine the effect of personal selling on the savings mobilization drive of microfinance banks in Akwa Ibom State.
3. examine the effect of sales promotion on the savings mobilization drive of microfinance banks.
4. ascertain how publicity affects savings mobilization drive of microfinance banks in Akwa Ibom State.
1.4 RESEARCH QUESTIONS
This study attempts to provide answers to the following research questions.
1. What is the effect of advertising on savings mobilization drive of microfinance banks?
2. To what extent does personal selling influence savings mobilization drive of microfinance banks?
3. What is the effect of sales promotion on the savings mobilization drive of microfinance banks?
4. What is the effect of publicity on the savings mobilization drive of microfinance banks?
1.5 HYPOTHESES
The following hypotheses were postulated to guide the study:
1. Advertising does not significantly affect savings mobilization drive of microfinance banks.
2. Personal selling does not significantly influence savings mobilization drive of microfinance banks.
3. Sales promotion does not significantly influence savings mobilization drive of microfinance banks.
4. There is no significant effect of publicity on the savings mobilization drive of microfinance banks.
1.6 SIGNIFICANCE OF THE STUDY
This study is of immense value to government, bank regulators, investors, academics and other stakeholders. It will go a long way in contributing to the growth of businesses in many aspects like increase in the volume of sales, return on investment and maintenance of goodwill. By identifying the strength of some microfinance banks, it will aid in restoring public confidence in the microfinance banks leading to a positive social change in our society. This study will enable the government to know the problems affecting microfinance banks and realize how difficult the porches are, and device a means of solving the problems. It will aid the government to know how to uplift the image of Micro Finance Banks in Nigeria. Above all, by addressing sustainability challenges of Micro Finance Banks it will help to generate employment as there may be stronger and viable Micro Finance Banks in the state.
1.7 SCOPE OF THE STUDY
The scope of the study covered the following three central aspects:
Content Scope: The content scope of this study covers the marketing communication tools used by microfinance banks in Akwa Ibom State such as advertising, sales promotion, personal selling, publicity and the banks savings mobilization drive. It also covers concepts on marketing communication, marketing communication and savings mobilization drive, marketing communication tools as related to saving mobilization drive. This study was domicile in strategic marketing.
Geographical scope: The geographic scope of the study will be Akwa Ibom State located at the South South region of Nigeria.
Unit of Analysis: The unit of analysis of this study will involve the managers, workers and customers of the selected microfinance banks in the three senatorial districts of Akwa Ibom State.
1.8 ASSUMPTIONS:
All the constructs used in this study were tested for multi-colinearity and it was established that the assumptions were not violated. Errors in variables refer to the case in which the variables in the regression model include measurement errors, hence one of the assumptions of the classical linear regression model with particular reference to the disturbance term, U is that U absorbs the influence of omitted variables and also takes care of errors that may arise in the measurements of the Ys (dependent variables). Thus, measurement errors in the dependents variables were incorporated into the disturbance term, U and do not create any special problem. We face the problem of error in variables when errors in the explanatory variables lead to biased and inconsistent parameter estimates. The data were collected from respondents using the structured questionnaire (primary source) and analyzed using the simple regression model. Hence, we assume that all the data used in the study do not violate any statistical rule.
We also assume that the relationship between the dependent and independent variables are linear. This assumption stated that in the marketing communication tools and savings mobilization drive model, the dependent variable SM is related to independent variable A,S,PU,PE, and the error (or disturbance) term e as
SM = B0+ A+e
SM = B0+B1+ A+S+e
SM = B0+ B1 Pu+e
SM = B0+ B1 PE +e
Where B0 and B1 are the population intercept and the slope parameters, respectively and e is the unobserved error term. The right-hand part of the model which is the regression function and the Bo, the regression coefficients. B1 in the function represents the marginal effect of the regressor, B1 represent the change in SM when each of the (CA,S,PU, PE) increases by one unit while other marketing communication constructs are held constant. Furthermore, it is assumed that there shall be no construct overlap, when testing this model, while all the models or variables are assumed to be constant throughout the course of this work.
1.9 LIMITATIONS OF THE STUDY
The scope of this study becomes one main limitation of this study. The study is concerned with the effect of marketing communication tools on the savings mobilization drive of microfinance banks in Akwa Ibom State. The study is limited by its inherent weaknesses such as the research design, scope, population and sample size.
1.10 OPERATIONAL DEFINITION OF TERMS
Microfinance Banks: These are a self-sustaining financial institution owned and managed by a community or group of communities for the purpose of providing credit deposits, banking and other financial services to its members, largely on the basis of their self-recognition and credit worthiness.
Banks: This includes all the banks in the banking industry including microfinance banks.
Savings Drive: Refers to the ability of Micro finance bank to generate savings from its actual and potential customers.
Marketing Communications: This is a coordinated promotional messages delivered through one or more channels such a prints, radio, television, direct mail and personal selling.
Microfinance: Microfinance refers to giving poor and low income people with no access to financial services through the ordinary formal financial sector the provision of different types of small-scale financial services.
Marketing Communication Tools: These are tools used in promoting the banks products and services such as advertising, sales promotion, public relations and publicity.
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