The Role of Marketing Communication Tools in Shaping Customer Perceptions and Behaviors in Ethiopian Private Banks

Abstract

This study addresses the need to examine the role of marketing communication tools in shaping customer perceptions and behaviors in Ethiopian private banks Given the evolving landscape of banking and marketing, it is crucial to analyze the effectiveness of various communication strategies in shaping customer attitudes and behaviors. Additionally, the study explores the moderating role of socioeconomic factors in this relationship. This research employs a mixed-method approach with a quantitative focus. Data was collected through structured surveys administered to 385 bank customers, utilizing Likert scale items to measure perceptions and responses. The analysis was conducted using Smart PLS 3 software for Partial Least Squares Structural Equation Modeling (PLS-SEM). The study integrates descriptive and explanatory research designs, including qualitative interviews to provide deeper insights into customer motivations. The findings show that the influence of consumer behavior on marketing communication tools strongly impacts customer perceptions and responses (path coefficient = 0.785). The research suggests that banks should align their marketing strategies with consumer behavior insights to improve customer engagement and satisfaction. Additionally, incorporating socio-economic factors into marketing strategies can enhance the effectiveness of communication tools.