Abstract:
Purpose – The purpose of this paper is to investigate the mediating role of brand preference on the
relationship between bank advertising and customer loyalty in Ghana’s banking industry.
Design/methodology/approach – A total number of 600 respondents participated in the study. Convenient
sampling technique was employed to select a cross-section of customers from the universal banks currently
operating in Ghana. Structural equation modeling technique of PLS was used to test the nature of
relationships in the research hypotheses.
Findings – The study found a significant positive relationship between advertising effectiveness and brand
preference. Also, there is a significant positive relationship between advertising and customer loyalty. Again,
there is a significant positive relationship between brand preference and customer loyalty. Finally, brand
preference positive mediates the relationships between advertising and customer loyalty.
Practical implications – The study provides a useful guide to strategy and policy formulation in
marketing communication by establishing the potential viability of advertising strategy in bank marketing
and its potential to generate brand preference and customer loyalty.
Originality/value – The study has practical implication for, and relevance not only to the banking industry
communication strategy but also the entire financial services industry
