EFFECT OF MARKETING STRATEGY ON BANK PERFORMANCE: THE CASE OF ABYSSINIA BANK, ETHIOPIA

Abstract

This study is conducted to assess the effect of marketing strategy on bank performance in the case of Abyssinia bank, Hawassa, Ethiopia. The study employed an explanatory research design with a quantitative research approach. The required data were collected from 76 bankers. The data collected through questionnaires were analyzed using the help of SPSS software version 21. A Multiple linear regression analysis was used to examine the given data. The study’s findings showed that the performance of the Abyssinia bank branch was influenced by product, price, promotion, and place. Delivering quality services, using technology properly, applying product differentiation methods properly, diversifying products, and delivering products that meet customers’ needs significantly affect bank performance. Likewise, it has a reasonable service charge, a better interest rate on saving deposit, provides interest-earning in a relatively short period, gives low-interest rate on loan, and opens a book free of charge have a significant effect on bank performance.  Similarly, promotingbank services using appropriate promotional tools, properly publishing products/services for customers, and having an available budget to use appropriate promotional tools significantly affect bank performance. Equally, found near to home/workplace, located at a convenient place, convenient opening and closing hours of the bank, and having many branches in different places significantly affect bank performance.