Marketing of Banking Service and Its Impact on the Profitability of Ethiopian Private Commercial Banks

Abstract

Marketing and advertising is a fundamental concept in the banking industry and profit also the key point which helps them to be surviving in the market. Therefore, this study aims to investigate the marketing of banking service and its impact on the profitability of Ethiopian private commercial banks. The sample of the study included only private commercial banks operating in the country during the study period. To achieve the purposes of the study, and to analyze the data extracted from the annual reports during 2011 to 2017, the researcher used multiple linear regression method. For this purpose the collected data were analyzed using the STATA14 software. The result showed that positive and significant effect of commission income and number of branches on the profitability of the banks. Whereas there is no significant effect of deposit ratio and advertising expense on the profitability of the bank.

Keywords: Marketing mix, profitability, advertising expense, banking service

DOI: 10.7176/EJBM/11-1-03