THE EFFECTS OF PROMOTIONAL MIX ELEMENT ON CONSUMER BUYING BEHAVIOR IN CASE OF SELECTED MICROFINANCE INSTITUTION IN BUTAJIRA TOWN

Abstract

In the contemporary competitive marketing landscape, promotional mix methods are essential for attracting and retaining consumers, with a focus on brand recognition, product loyalty, and corporate image within firms. The study aims to analyze the impact of advertising, sales promotion, personal selling, and public relations on consumer buying behavior in the studied region. The study used both descriptive, explanatory, and a cross-sectional research designs. The study employed both qualitative and quantitative approaches. Primary data was collected from sample respondents, while secondary data was collected from published and unpublished sources. The target population was customers of microfinance institutions. The study used a non-probability sampling technique. The study used a self administered questionnaire to collect data on consumer buying behavior. The questionnaire was designed with close-ended questions and a five-point Likert scale. The data was analyzed using descriptive and inferential analysis. The Cronbach alpha coefficient was computed to check the reliability of the questionnaire. The study adhered to ethical considerations, including the right to participate, confidentiality of responses, and an open-minded approach. The study found that advertising is the most decisive promotional mix element affecting consumer buying behavior in the micro-finance sector. Other factors like personal selling, sales promotion, and public relations also had positive effects. The research indicates that positive consumer attitudes towards various promotion tools, such as advertising, sales promotion, personal selling, and public relations, significantly influence consumer buying behavior. This understanding can help marketers develop effective promotional strategies and services. The study suggests that micro-finance institutions should enhance their advertising efforts and promote promotion to motivate consumers effectively