Effect Of Prize-linked Saving Promotion On Customers Intention To Save In Commercial Bank Of Ethiopia

This study was intended to examine the effect of prize-linked saving (PLS) promotion onrncustomers’ intention to save in Commercial Bank of Ethiopia. Particularly, it wasrnfocused on assessing the role of PLS promotion in creating customers’ intention to savernin terms of five dimensions: namely awareness, credibility, emotional affect, socialrncompliance and utilitarian value. Both descriptive and explanatory designs withrnquantitative approach were employed. Data were collected using five point scale selfadministeredrnquestionnaire from 379 customers that were sampled across 25 branchesrnof CBE supervised under four districts in Addis Ababa and surrounding. After allrnappropriate statistical assumptions were checked and confirmed data were analyzedrnthrough descriptive and inferential statistical tools by the help of SPSS version 20.rnAccording to the data, about 53% of the variation in customers’ intention to save can bernexplained by the dimensions of PLS promotion (namely awareness, credibility,rnemotional affect, social compliance and utilitarian value). Result also shows that allrnproposed dimensions of PLS promotion, except emotional affect, have significantrnpositive effect on intention to save. Among dimensions, social compliance was found tornhave the largest positive effect on intention to save in the context of PLS promotionrnwhereas emotional affect was found to have negative effect on intention to save. Thernstudy also found that PLS promotion appeals more to women, young people, lessrneducated and low income individuals. Finally, it is recommended that the bank’srnpromotion managers should focus on enhancing and ensuring social compliance of PLS.rnEnhancing transparency of prize lottery drawing process will be additional fuel that canrnaccelerate the scheme’s credibility. Lastly, it is better and economical for promotionalrnefforts on PLS program to focus primarily on women, low income people,less educatedrnand the young population, for they are highly responsive segment to PLS promotion

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