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Data Analysis on effects of advertising on credit demand
Name
DDBA 8110 - Business Operations
Walden
2022
Effects of advertising on credit demand.
Descriptive SA A
U
D D SD
TOTA
L
Intensive advertising leads to high
credit demand.
FREQUENCY
58 11 9 2 1
)81
PERCENTAGE
71 13 11 3 2
)100
Clear information during advertising
ensures high credit demand.
FREQUENCY
47 8 15 9 2
)81
PERCENTAGE
58 9 19 11 3
)100
Regular advertising leads to high
credit demand.
FREQUENCY
39 12 16 10 4
)81
PERCENTAGE
48 14 19 13 6
)100
Proper channel of advertisement
affects credit demand.
FREQUENCY
52 14 8 5 2
)81
PERCENTAGE
64 17 10 6 3
)100
From the above analysis, 71% strongly agreed, 13% agreed, 11% were undecided, 3% disagreed
while 2% strongly disagreed with the idea that intensive advertising leads to high credit demand.
However, 58% strongly agreed, 9% agreed, 19% were undecided, 11% disagreed while 3%
strongly disagreed with the idea that clear information during advertising ensures high credit
demand. Nevertheless, 48% strongly agreed, 14% agreed, 19% were undecided, 13% disagreed
while 6% strongly disagreed with the idea that regular advertising leads to high credit demand.
In addition, 64% strongly agreed, 17% agreed, 10% were undecided, 6% disagreed while 3%
strongly disagreed with the idea that proper channel of advertisement affects credit demand.
From the above study, majority of the respondents were for the idea that intensive advertising
leads to high credit demand as indicated by 84% of the respondents who were for this idea. This
might be attributed to the idea that intensive advertising carried by financial institutions on their
services and products widens the number of clients for these products. Many of the farmers come
from the interior parts of this particular county and hence lack information on existing of
financial institutions. Intensive advertisement carried in these remote areas increases the
knowledge of existence of this institutions and thus increasing the number of clients in dire need
of credit facilities.
When clear and well interpreted information is given during advertisement it leads to high credit
demand as indicated by 67% of the respondents who were for this idea. This might be attributed
to the idea that clients get clear information on what’s generally required as far as the policies,
repayment period and other necessary requirement of the credit facilities are concerned and
hence go for the credit facilities with full information and knowing what is exactly required by
the financial institutions.
Regular advertising on credit facilities too results to higher credit demand as indicated by 52% of
the respondents who were for this idea. This might be attributed to the idea that regular
advertising carried by financial institution informs clients what policies have been introduced in
by the financial institution and if the policies are favorable, the probability of increasing the level
of credit demand is so high.
However, when proper channel of advertising is used credit demand too increases as indicated by
84% of the respondents who were for this idea. This might be attributed to the idea that when
proper advertising channel is adopted for instance using mass media like radio, television and
daily news papers reaches a lot of people and the chances of influencing them to go for the credit
facilities is so high. This adverts are usually accompanied by the financial institutions’ credit
policies thus if the policies are admirable and favorable, it will definitely attract a lot of credit
demand.
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