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Investigating the effect of media advertising (through TV) on attracting banks clients based on AIDA model: case study of Bank Mellat.

INTRODUCTION

One of the main goals of a business organization is introducing the product or service with the aim of informing the audience, communicating with them, convincing them that the product meets their basic needs and also convincing the potential clients to purchase or use the services in order to survive and reach profitability. Among the most important business organizations in today's world that have influence on other economic sectors are banks. For banks, raising the number of clients and consequently the capital is crucial. In today's competitive world and especially in recent years that a number of banks, credit institutions and financial institutions have worked in parallel with banks, a close match has begun to reach more clients and increase capital and each bank is trying to surpass the other competitors by relying on its strengths. On the other hand, the advertising means that has influenced in society more than ever and has an unmatched power in the media, namely television, can play a role in this arena. However, many factors could affect the success or failure of advertising through television. The need for advertising and surpassing the on the one hand and advertising costs on the other hand have made the businesses and banks in particular to consider the goal in the allocation of advertising expenditures and assess the effectiveness of their advertisements. The issue for banks, financial institutions and private credit that do not receive aid from government makes the importance of Cost Management more clear. Bank Mellat that has worked as a non-state bank since 1387 is not an exception and according to what was mentioned briefly, this study examines the impact of television advertising of Bank Mellat in a given time period with one of the best models of advertising effectiveness measurement namely AIDA model.

Literature Review:

The importance and role of advertising that means business advertising and fame [1] has been proven in marketing for all business and financial institutions, so that it has become a profitable industry. Advertising occurs with varied forms via various media in the worlds and today's world is drowning in a sea of commercials and business advertisings [2]. Among the media that do the advertising, television has still an important role as one of the most informative bases [3]. In Iran, television is still the most popular mass medium [4] and most viewers of television watch the advertising broadcast by the media, thus it is expected that the impact of advertising via television is more important than the other media. On the other hand, despite having serious competitors in the market, banks as financial institutions have realized the importance of advertising more than ever. Thus, they seek for the ways of attracting clients through advertising in the most appropriate manner and high efficiency and lower costs. This research tries to use the four-parameter AIDA model that has been proved its effectiveness in numerous studies and examine the impact of television advertising on attracting bank clients and assist banks in achieving this objective.

Today, the main effect of advertising on the performance of organizations and businesses is known to everybody. One of the most effective methods of advertising is using the mass media, especially television that can in the case of preparing and broadcasting advertising teasers based on correct principles and a good structure, good content, frequency, and creativity.

Banks as one of the main economic units that the new economic cycle is virtually impossible without their strong presence are seeking for appropriate and effective methods of advertising and the study of the effect of advertising on the orientation of advertising budgets and making good decisions in the area to affect the acquisition of bank performance is important. In this regard, one of the most popular and most successful models for assessing the impact of advertising is AIDA model that will be used in this research.

Abdolreza Ghanizadeh in his thesis entitled "the effects of commercial advertisements on attracting the depositors of loan savings account in Bank Melli Iran " that was done with the aim of evaluating and ranking the effect of Media advertising on attracting the depositors of loan savings account in Bank Melli Iran using AIDA model concluded that television as a comprehensive mass media with animated attractions has a major effect on attracting depositors. Other influential media in order of preference are: newspapers, magazines, radio, posters and declaration [5].

Leila Kurd in her thesis entitled "Evaluation of insurance companies advertising based on AIDA model" evaluated the advertisings of public insurance companies (Iran, Asia, Alborz, Dana) based on AIDA model. This study tries to determine whether the advertising of public insurance companies based on AIDA model could lead to paying attention in the first phase, drawing interest in the second phase, persuading in the third phase and finally purchasing the insurance services by clients. Finally, she concluded that According to the collected data, the advertising of public insurance companies (Iran, Asia, Alborz, Dana) based on AIDA model are not effective. In fact, these companies could not draw attention, interest and desire and ultimately persuade the clients to buy insurance services [6].

Hussein Safarzadeh in an article entitled "The effect of advertising of Saman insurance company on buying life and savings insurance based on AIDA model" examined the advertising of life and savings insurance of Saman insurance company based on AIDA model. Finally, with regard to the information collected he has concluded that the advertising of life and savings insurance of Saman insurance company based on AIDA model was effective and the advertising of Saman insurance company could draw attention, interest and desire and ultimately persuade the clients to buy life and savings insurance [7].

Ali Rabiee et al in an article entitled "Evaluating the effectiveness of Parsian Bank and identifying the most important factor in increasing the effectiveness of Parsian Bank in Tehran." examined the effectiveness of Parsian Bank in attracting clients in Tehran, according to the AIDA model and determine the most important factors affecting its increase. They point out that the comparative study of the effectiveness of advertising indicates that television is the most effective medium to attract clients and then there is newspaper. Moreover, they know the integrity of the messages as the most important factor affecting the Bank's increased advertising effectiveness. Also, the most effective factor in attracting clients is the good behavior of employees and respecting them, and they consider television and then newspaper as the media which have the most access to advertising and devote most of their time to it. They suggest television and then radio as the highest quality media and for next advertising of banks offer television and newspaper. In general, the findings of this study suggest that television and newspaper advertising of banks in addition to the successful implementation of AIDA model, has had effectiveness [8].

Xiang et al in an article entitled "A Elementary Thinking About Company's Online Ads Strategy With AIDA Model" examined the elementary thinking about company's online ads strategy with AIDA Model. The study showed that the companies' online ads increase the willingness of clients to use the company's products and services [9].

Sanayei et al in an article entitled "Evaluating the effectiveness of TV advertisement and analyzing its influence on attraction of saving deposit accounts of Ansar Bank in the city of Isfahan" referred to a variety of advertising and advertising effectiveness in the market. They pointed out that banks endure a lot of costs to attract clients through advertising and in this regard seek for effective ways and techniques of advertising. They concluded that television advertising of this bank has been successful in attracting clients [10].

Li and Yu in a study entitled "An Innovative Marketing Model Based on AIDA:--A Case from E-bank Campus-marketing by China Construction Bank" in 2013 showed that creative teaching skills can be used to accelerate the realization of a model-based advertisements [11].

Garibi et al in an article entitled "EXPLAIN THE EFFECTIVENESS OF ADVERTISING USING THE AIDA MODEL" examined the impact of using AIDA model in advertising of private insurance companies. Their findings suggest that there is a significant relationship Between AIDA model and the effectiveness of advertising [12].

Rawal in an article entitled "AIDA Marketing Communication Model: Stimulating a purchase decision in the minds of the consumers through a linear progression of steps" insists that the success of advertising depends on its acceptance by the audience and if an advertisement attracts the client, this advertisement will be successful. He considers television as the most important mass medium and emphasizes the impact of AIDA model on the design of successful television advertising [13].

The conceptual model:

In the present study, AIDA model is used in order to evaluate the impact of television advertising of Bank Mellat on attracting the clients. This model was proposed by Elmo Lewis and has four dimensions that include attention and awareness, drawing interest, creating desire, and buying action [14].

Methodology:

The main objective of this research is Determining the effect of media advertising (TV) on the attraction of clients on Bank Mellat and also the Secondary objectives as follow:

1. Determining the effect of the good structure of media advertising (TV) on the attraction of clients on Bank Mellat.

2. Determining the effect of the good content of media advertising (TV) on the attraction of clients on Bank Mellat.

3. Determining the effect of the repeat of media advertising (TV) on the attraction of clients on Bank Mellat.

4. Determining the effect of the creativity and innovation of media advertising (TV) on the attraction of clients on Bank Mellat.

The main question of this research is does the media advertising (TV) affect the attraction of clients on Bank Mellat? and the Secondary questions as follow:

1. Does the structure of media advertising (TV) affect the attraction of clients on Bank Mellat?

2. Does the content of media advertising (TV) affect the attraction of clients on Bank Mellat?

3. Does the repeat of media advertising (TV) affect the attraction of clients on Bank Mellat?

4. Does the creativity and innovation of media advertising (TV) affect the attraction of clients on Bank Mellat?

The main hypothesis of this research define as follow: media advertising (TV) affects the attraction of clients on Bank Mellat.

And the Secondary hypotheses:

1. The structure of media advertising (TV) affects the attraction of clients on Bank Mellat.

2. The content of media advertising (TV) affects the attraction of clients on Bank Mellat.

3. The repeat of media advertising (TV) affects the attraction of clients on Bank Mellat.

4. The creativity and innovation of media advertising (TV) affects the attraction of clients on Bank Mellat.

Research Variables:

Independent variable: media advertising (TV)

That includes the following four main factors:

A. Good structure

B. Good content

C. Repeat

D. Creativity and innovation

Dependent variable: attracting the bank clients

That includes the following factors:

1. Awareness and attention of clients to open an account

2. Interest of clients to open an account

3. Desire of clients to open an account

4. Action of clients to open an account

The statistical population is a collection of individuals or units under the consideration that have at least one common characteristic to which the results and findings of study are generalized [15].

The statistical population of this study consists of all clients of Bank Mellat who opened an account at this bank from the September 2013 to the end of October of the same year. It should be noted that there are 26 branches of Bank Mellat in Zanjan province and 15 branches in Zanjan city that are under the supervision of the branches affairs of Zanjan province. The clients of this bank can open an account from the six types of account depending on their interest and goal. There were 238 accounts in the central branch and 1242 ones in the total branches of Zanjan Province at September 1392 and since some people opened several accounts, the total number of people who opened an account in that month was 858 people. Thus, 931 people opened accounts in October, thus our statistical population is 1,789 people, of which 928 people have seen the advertisements, then these are the statistical population.

To avoid wasting time and financial savings in the study, sampling is usually done. In this study, due to the nature of work the random sampling is used. This method is used in descriptive background finder or surveys [16].

Accordingly, based on Morgan table the sample of 274 people was randomly selected.

To gather the necessary information from the sample and generalize the results to the population, the researcher needs tools on which base the type and nature of the research and the research hypotheses of this tool are selected. Then, after data collection, analysis, processing and transforming them into analyzable information, testing hypotheses will begin [16] Information about the theoretical and theoretical studies of the research has been obtained through note taking, and reviewing documents, books and Internet websites. Since in the survey method, the most common data collection tool is using questionnaire and the researcher will be informed of his population's comments, in this research, a questionnaire was used to collect field data.

In this research, in order to achieve the objectives, a researcher-made questionnaire was used. Likert scale was used to rank the answers. This scale is an interval scale and the options considered at this scale usually indicate the agreement or disagreement of respondent to a topic or concept. This 5-option scale is from very low to very high [16].

Statistical methods are mainly done by descriptive and inferential methods. When the researcher collected, extracted and classified data and drew frequency distribution tables, a new phase of research process begins which is called data analysis that consists of two parts: qualitative analysis and quantitative analysis of data [16].

Descriptive statistics consists of concepts such as frequency distribution table, distribution ratio, distribution graph, size of the central tendency, measures of dispersion and etc. Descriptive statistics were used to illustrate the subject under discussion or in fact the features of the studied subject are described and illustrated in statistics [16].

In inferential analysis of the study, the researcher claims that the results of the study on small groups or statistical samples extend the statistical population and thus he can test hypotheses using the obtained data.

The researcher then collected questionnaires, extracted answers and classified them, sorted data using Word, Excel and drew frequency tables using SPSS software and then drew bar charts and graphs using Word software. Then, to test the hypotheses and measure the influence of independent variables of structure, content, repeat, innovation and creativity on attracting clients based on AIDA model, Multivariate linear regression test was used to confirm the significant level of the results.

Finding:

Null hypothesis: media advertising (TV) does not affect the attraction of clients on Bank Mellat.

Alternative hypothesis: media advertising (TV) affects the attraction of clients on Bank Mellat.

According to the above table that used multiple regression analysis, the coefficient of determination is 0/71 which is a very good value and shows that 71% of changes in dependent variable (the attraction of bank clients) originates from independent variable (television advertising). On the other hand, the significance level is 0.000 and less than 0.05 that means the media advertising has a significant relationship with the attraction of clients, thus the null hypothesis is rejected. It can be concluded that the media advertising affects the attraction of clients on Bank Mellat.

Null hypothesis: The structure of media advertising (TV) does not affect the attraction of clients on Bank Mellat.

Alternative hypothesis: The structure of media advertising (TV) affects the attraction of clients on Bank Mellat.

According to the above table that used linear regression analysis, the coefficient of determination is 0/69 which is a very good value and shows that 69% of changes in dependent variable (the attraction of bank clients) originates from independent variable (television advertising). On the other hand, the significance level is 0.000 and less than 0.05 that means the advertising structure has a significant relationship with the attraction of clients, thus the null hypothesis is rejected. It can be concluded that the advertising structure affects the attraction of clients on Bank Mellat.

Null hypothesis: The content of media advertising (TV) does not affect the attraction of clients on Bank Mellat.

Alternative hypothesis: The content of media advertising (TV) affects the attraction of clients on Bank Mellat.

According to the above table that used linear regression analysis, the coefficient of determination is 0/60 which is a very good value and shows that 60% of changes in dependent variable (the attraction of bank clients) originates from independent variable (television advertising). On the other hand, the significance level is 0.000 and less than 0.05 that means the advertising content has a significant relationship with the attraction of clients, thus the null hypothesis is rejected. It can be concluded that the advertising content affects highly the attraction of clients on Bank Mellat.

Null hypothesis: The repeat of media advertising (TV) does not affect the attraction of clients on Bank Mellat.

Alternative hypothesis: The repeat of media advertising (TV) affects the attraction of clients on Bank Mellat.

According to the above table that used linear regression analysis, the coefficient of determination is 0/27 which is a very good value and shows that 27% of changes in dependent variable (the attraction of bank clients) originates from independent variable (television advertising). On the other hand, the significance level is 0.000 and less than 0.05 that means the advertising repeat has a significant relationship with the attraction of clients, thus the null hypothesis is rejected. It can be concluded that the advertising repeat affects slightly the attraction of clients on Bank Mellat.

Null hypothesis: The innovation and creativity of media advertising (TV) does not affect the attraction of clients on Bank Mellat.

Alternative hypothesis: The innovation and creativity of media advertising (TV) affects the attraction of clients on Bank Mellat.

According to the above table that used linear regression analysis, the coefficient of determination is 0/76 which is a very good value and shows that 76% of changes in dependent variable (the attraction of bank clients) originates from independent variable (television advertising). On the other hand, the significance level is 0.000 and less than 0.05 that means the advertising innovation and creativity has a significant relationship with the attraction of clients, thus the null hypothesis is rejected. It can be concluded that the advertising innovation and creativity affects highly the attraction of clients on Bank Mellat.

Discussion and Conclusion:

The purpose of this study was to evaluate the impact of television advertising on attracting the clients of business firms as the case study of Mellat Bank's branches in Zanjan Province. In this regard, the effect of television advertising aspects namely the structure, content, repeat and creativity and innovation were evaluated using AIDA model. In this approach, the different aspects of independent variable were tested and finally after the data collection and descriptive and inferential analysis, it was found that media advertising is effective on attracting the bank clients and this effect has a positive direction considering the data analysis. In other words, all advertising elements that include structure, content, repeat and creativity and innovation have a positive impact on attracting the clients of banks. Among these elements, creativity and innovation, structure, content, and repeat have the highest coefficients of determination in order that shows creativity and innovation are better explanations for the increase in banks' clients and the variable of repeat has the minimum impact on banks' clients.

Abdolreza Ghanizadeh's study with the subject of examining the effect of commercials on attracting the clients of Bank Melli concluded that television as a common medium has the most effect on attracting the banks' clients and is consistent with the results of this study that media advertising is effective on attracting the banks' clients. Also the study of Ali Rabiee et al and Ledila Kurd on the effectiveness of media advertising especially television as the most important factor in attracting banks' clients is consistent with the results of this study. The results show that the findings of this study are consistent with the results of Sanayei et al (2012), Xang (2005), Safarzadeh (2010) that examined the effectiveness of television on attracting the banks' clients [5,8,6,10,7].

Suggestions:

Advertising is an appropriate way to inform people and encourage them to purchase goods or services that satisfy their needs and desires. Business organizations especially banks use advertising more than the other organizations in order to announce their presence and attract more clients. Advertising is the strongest tool in identifying banks, services and their facilities. Advertising is effective when it is bound to the target market. So the first step in advertising is the close review and identification of target audience in terms cultural, economic, and demographic aspects and etc. The researcher of this study suggests bank managers to collect t information about clients, competitors and environment before any attempt to create marketing messages and media selection in order to avoid inappropriate expenses.

An effective message has some features. Each medium has different strengths and weaknesses fit to the designated budget and audience. Selecting the appropriate media should be done by estimating the costs and benefits and ultimately the value they create. Thus, the bank managers are suggested to select the media and make advertising messages with marketing and advertising expects and also evaluate the advertising with the pretest in the target market prior to broadcast. After running, its efficacy should also be tested by post-test method.

Making commercials is done for banks to increase the number of clients and deposits. The designers of teasers are mostly the experienced film and television directors that are familiar with the processes of making a promotional video and apply its principles. The results of this study suggest the makers of commercials as well as the bank managers to consider more the features of innovation and creativity and coherence and rich content in the production of advertisements in order to increase the audience interest and rise the number of depositors.

REFERENCES

[1] Shah Muhammadi Abdolreza, 2006. Persuasion and Propaganda: Sociology and Techniques., Tehran, Zarbaf.

[2] Bahonar Naser, Homayun Muhammad Hadi, 2009. Passages of commercials since the beginning of Islam, Tehran, Press Institute of Culture, Art and Communication.

[3] Fahimifar, Asqar, 2011. A study of the commercials on TV commercials compared with values--cultural, ethical, Tehran, Publications Office of Propaganda Ministry of Culture and Islamic Guidance.

[4] Madandar Abbas, 2009. Learning and Development, Tehran, Ney.

[5] GHanizadeh Abdolreza, 2005. "Effect of commercial advertisements to attract depositors, credit unions, savings accounts, Bank Melli Iran", Tehran, Tehran, 1: 1.

[6] Kurd Leila, 2008. "Evaluation of insurance companies based advertising model AIDA", Dissertation for the degree of Master of Science, Tehran University, 2: 6.

[7] Safarzadeh Hossein, Vahabpour Nayyereh, 2010. "The effect of advertising regulates insurance companies buying life insurance and savings based on AIDA", marketing articles banks.

[8] Rabiee, Ali, 2011. "Evaluation of advertising effectiveness and to identify the most important factor in increasing the effectiveness of Parsian Bank in Tehran" Modern Marketing Research, 1: 2.

[9] Xiang, L.I. and H.U. Huan-lu and YUAN. Hao, 2005. A Elementary Thinking About Company's Online Ads Strategy With AIDA Model, Advertising Panorama., p: 10.

[10] Sanayei, Ali and Shahin, Arash and Amirosadt, Seyede Nasim, 2012. Evaluating the effectiveness of TV advertisement and analyzing its influence on attraction of saving deposit accounts of Ansar Bank in the city of Isfahan.iran. p: 15.

[11] Li, J. and H. Yu, 2013. An Innovative Marketing Model Based on AIDA:--A Case from E-bank Campus-marketing by China Construction Bank.iBusiness, 5: 47-51.

[12] Garibi, Shahab and Syed danesh, Seyed Yahya and Shahrodi, Kambiz, 2012. Explain the effective ness of advertising using the AIDA model. Interdisciplinary journal of contemporary research in business 4: 2.

[13] Rawal, Priyanka, 2013. AIDA Marketing Communication Model: Stimulating a purchase decision in the minds of the consumers through a linear progression of steps, IRC's international of multidisciplinary journal of research in social and management sciences.

[14] Birch, Ray, 2010. Growth strategies. credit Journal. New York. 14(3): 1.

[15] Azar Adel, Momeni Mansour, 2010. Statistics and its application in management, Tehran, Samt.

[16] Hafeznia Muhammad Reza, 1999. Introduction to Research Methods in Human Sciences, Tehran, Samt.

(1) Dariush Penhani, (2) Mohsen Ghadami, (3) Majid Jahangir Fard

(1) faculty member, master of executive management, Islamic Azad University of Qazvin, Qazvin, Iran.

(2) PhD., faculty member, assistant professor, Islamic Azad University of Qazvin, Qazvin, Iran.

(3) PhD., faculty member, assistant professor, Islamic Azad University of Qazvin, Qazvin, Iran.

ARTICLE INFO

Article history:

Received 26 December 2014

Received in revised form 26 January 2015

Accepted 20 February 2015

Available online 10 March 2015

Corresponding Author: Dariush Penhani, faculty member, master of executive management, Islamic Azad University of Qazvin, Qazvin, Iran.

Table 1: Results of multiple regression analysis of media
advertising

Independent   Dependent    The correlation   (R2) coefficient
variable      variable     coefficient (R)   of determination

TV            the          0/85              0/71
advertising   attraction
              of clients

Independent   (F) statistic   Significance level
variable

TV            232/27          0/000
advertising

Table 2: Results of linear regression analysis of
media advertising structure

Independent   Dependent    The           (R2)
variable      variable     correlation   coefficient
                           coefficient   of
                           (R)           determination

TV            the          0/81          0/69
advertising   attraction
structure     of clients

Independent   (F) statistic   Significance
variable                      level

TV            201/52          0/000
advertising
structure

Table 3: Results of linear regression analysis of media
advertising content

Independent      Dependent        The correlation   (R2) coefficient
variable         variable         coefficient (R)   of determination

TV advertising   the attraction   0/79              0/60
  content          of clients

Independent      (F) statistic   Significance
variable                         level

TV advertising   163/45          0/000
  content

Table 4: Results of linear regression analysis of media
advertising repeat

Independent      Dependent        The correlation   (R2) coefficient
variable         variable         coefficient (R)   of determination

TV advertising   the attraction   0/52              0/27
  repeat           of clients

Independent      (F) statistic   Significance
variable                         level

TV advertising   93/36           0/000
  repeat

Table 5: Results of linear regression analysis of media
advertising innovation and creativity

Independent      Dependent        The correlation
variable         variable         coefficient (R)

TV advertising   the attraction   0/88
innovation and   of clients
creativity

(R2) coefficient (F)              Significance
of determination statistic        level

0/76             266/30           0/000
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Author:Penhani, Dariush; Ghadami, Mohsen; Fard, Majid Jahangir
Publication:Advances in Environmental Biology
Article Type:Case study
Date:Mar 1, 2015
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