Matinol Final Research

ODA BULTUM UNIVERSITY
COLLAGE OF BUSINESS AND MANAGEMENT

DEPARTMENT OF MARKETING MANAGEMENT
THE IMPACT OF OUTDOOR ADVERTISING ON COMPANY IMAGE AND ITS CUSTOMER

RETENTION IN THE CASE OF FEDERAL LEATHER INDUSTRY DEVELOPMENT
INSTITUTION
PREPARED BY: MATINOL TADELE
ID NO: 0327/13
ADVISOR: YONAS M. (MSc)
A RESEARCH SUBMITTED TO THE DEPARTMENT OF MARKETING MANAGEMENT IN

PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF ARTS
IN MARKETING MANAGEMENT
MAR, 2024
CHIRO, ETHIOPIA
DECLARATION
I hereby declare that the presented report of the internship Submitted to Oda Bultum
University, Collage of Business and Management Department of Marketing
Management is original and independent work carried out by us after the completion of
one months at Ethiopian leather industry development institute and supervision of Ins.
Yonas M. I also confirm that the report is only prepared for our academic requirement
and does not breach any existing copyright.
Student name Signature Date

Matinol Tadele
This final report internship program has been submitted to the department of Marketing
Management of Oda Bultum University.
Advisor name Signature Date

Ins. Yonas M. ---------------------- ---------------------
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ACKNOWLEDGEMENT
First of all I would like to thanks the almighty God who gave me strength and
Encouragement and lead me through all the rough and difficult times to complete this
practice.
Secondly, I would like to express my gratitude to Oda Bultum University, Collage of
Business and Management for providing such kind of opportunity for students to
broaden their perception of how the real world looks like as well as for organizing the
whole internship program. Next, I would like to thanks my advisor Mr. Yonas M.
(MSc) for his inviolability, encouragement and necessary guidance and support
throughout the study.
My acknowledgement also to department of marketing management for their valuable
comment during topic selection and for providing me such chance to conduct is search.
Last but not least I would like to express my great respect my family for both financial
and moral support which is the most significance and influential respect which lead to
success.
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ABSTRACT
Outdoor Advertising is any kind of advertisement that is displayed outside, usually in

public areas such as roadside billboards, bus stops, train stations, and other public
spaces. It can also include banners and signs hung in public areas, such as on
buildings, parks, and beaches. Therefore, the main purpose of the study is to assess the
impact of outdoor advertising on company image and customer retention in the case of
Ethiopian leather industry development institute. The outdoor advertising as
independent variables such as media used for advertising, source factors and message
factors and company image and customer retention as dependent variables. In
the study both primary and secondary sources of data was used, and this data
were analyzed through descriptive data analysis method. According to the result
of the study, regarding to perceived advertising spending, consumers’ perceptions
towards perceived outdoor advertising spending has a positive effect on brand
awareness, brand associations and brand perceived quality; indicating outdoor
advertising has more effect on the creation of consumer-based brand equity.
Key words : Outdoor Advertising, Company Image, Customer Retention
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TABLE CONTENTS
Content page
DECLARATION ............................................................................................................................. i
ACKNOWLEDGEMENT .............................................................................................................. ii
ABSTRACT ..................................................................................................................................iii
LIST OF TABLES......................................................................................................................... vi
LIST OF ACRONYM .................................................................................................................. vii
CHAPTER ONE ............................................................................................................................. 1
1 INTRODUCTION ....................................................................................................................... 1
1.1 Background of the Study....................................................................................................... 1
1.2 Statement of the Problem ...................................................................................................... 3
1.3. Objectives of the Study ........................................................................................................ 4
1.3.1. General Objective .......................................................................................................... 4
1.3.2 Specific Objective ....................................................................................................... 4
1.4 Research Question................................................................................................................. 5
1.5 Significance of the study ....................................................................................................... 5
1.6. Limitations of the Study ....................................................................................................... 5
1.7. Scope of the study ................................................................................................................ 6
1.8. Organization of the Study .................................................................................................... 6
1.9 Definition of Terms............................................................................................................... 7
CHAPTER TWO ............................................................................................................................ 8
2. REVIEW OF RELATED LITERATURE ................................................................................. 8
2.1 Introduction ........................................................................................................................... 8
2.2 Concept of Outdoor Advertising ........................................................................................... 8
2.3 Types of Outdoor advertising ............................................................................................... 9
2.3.1 Billboard advertising ...................................................................................................... 9
2.3.2 Point of sale advertising ............................................................................................... 10
2.3.3 Retail Advertising......................................................................................................... 10
2.3.4 Vehicle Advertising...................................................................................................... 11
2.3.5 Construction Advertising ............................................................................................. 11
2.4 Company Image .................................................................................................................. 11
2.5 Customer Retention............................................................................................................. 12
2.6 Measurement of Outdoor Advertising ................................................................................ 12
2.7 Review of Empirical Studies............................................................................................... 13
2.8 Conceptual Framework of the Study................................................................................... 14
CHAPTER THREE ...................................................................................................................... 16
3 RESEARCH METHODOLOGY .............................................................................................. 16
3.1 Introduction ......................................................................................................................... 16
3.2 Research Design.................................................................................................................. 16
3.3 Research Approach ............................................................................................................. 16
3.4 Sources of Data ................................................................................................................... 17
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3.4.1 Primary Sources of Data............................................................................................... 17
3.4.2 Secondary Source of Data ............................................................................................ 17
3.5 Sample Design .................................................................................................................... 17
3.5.1 Target Population ......................................................................................................... 17
3.5.2 Sampling Technique ..................................................................................................... 17
3.5.3 Sample Size .................................................................................................................. 17
3.6 Method of Data Collection.................................................................................................. 18
3.7 Method of Data Analysis .................................................................................................... 18
3.8 Ethical Consideration .......................................................................................................... 18
CHAPTER FOUR ........................................................................................................................ 20
4 DATA ANALSIS AND INTERPRETATION .......................................................................... 20
4.1 Introduction ............................................................................................................................ 20
4.2 Socio-demographic Characteristics of Respondents ........................................................... 20
4.3 Information's related to the working environment of the respondents ................................ 22
4.4 Outdoor Advertising Factors ............................................................................................... 23
4.5 Company Image and its Customer Retention...................................................................... 29
CHAPTER FIVE .......................................................................................................................... 33
5 CONCLUSIONS AND RECOMMENDATIONS .................................................................... 33
5.1 Conclusions ......................................................................................................................... 33
5.2.Recommendations ............................................................................................................... 34
REFERENCE ............................................................................................................................... 35
Appendix A: Questionnaire .......................................................................................................... 38
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LIST OF TABLES
Table 4.1 Socio-demographics of respondents …………………………………… 20
Table 4.2 Frequency distribution towards the status and working environments of the
respondents ………………………………………………………………………… 21
Table 4.3 Frequency distribution on usage of advertising media ………………… 23
Table 4.4 Frequency distribution on source factors ……………………………… 24
Table 4.5 Frequency distribution towards message factors ……………………… 25
Table 4.6 Frequency distribution towards the responses of employees on company’s

image ……………………………………………………………………………… 28
Table 4.7 Frequency distribution towards the responses of employees on customers

retention …………………………………………………………………………… 30
Table A.1 Questions relates to the usage of advertising media …………………… 40
Table A.2 Questions relates to the source factors ………………………………… 41
Table A.3 Questions relates to the message factors ………………………………. 41
Table A.4 Question relates to the company image ………………………………… 42
Table A.5 Questions relates to the customer retention …………………………… 42
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LIST OF ACRONYM
CI--------------------------COMPANY IMAGE
CR – ----------------------CUSTOMER RETANTION
EFLDI ------------------- ETHIOPIA FEDERAL LEATHER INDUSTRY INSTITUTE
IBM ----------------------INTERNATIONAL BUSINESS MACHINES
ODA –-------------------- OUTDOOR ADVERTIC
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CHAPTER ONE
1 INTRODUCTION
1.1 Background of the Study
Advertising is a form of persuasion in which a firm or an organization
motivates people to buy or use its products. In most cases, it is done through a mass
medium or the use of sales people. It aims at attracting more buyers in comparison to
other competitors. The main aim of advertising is to create awareness of the advantages
of a product and inform people of the availability of the product in the
market. Advertisements, therefore, play a significant role in the marketing and overall
sales of a product because they influence consumers’ attitudes, behaviour,
preferences, and decisions related to the product (Gulmez, Karaca, & Kitapci,
2010).
In marketing, outdoor advertising plays an integral role in creating awareness of

a product and the sales of such goods. In a study conducted by Kotler, Wong, Saunders
and Armstrong (2005), the scholars note that outdoor advertising achieves this
objective by influencing the decisions, behavior, preferences and attitudes towards the
product through explicit visual expression of the goods. The nature and design of the
outdoor advertisement could increase or reduce their appeal to the potential customers,
hence the reasons explaining the use of bright colours in painting the products
(Carson, Gilmore, Perry & Gronhaug 2001). Moreover, the advertisements of a
product using the outdoor method are erected outside using billboards or large posters,
flyers and brochures.
According to Kotler and Armstrong (2008), advertising media is the vehicle through
which advertising messages are delivered to their intended audiences. As advertising
becomes more important for businesses, larger companies are able to spend more and
more on sophisticated ways to make us buy their products.
Mahaputra and Saputra, (2021) stated that Modern marketing calls for more than
developing a good product, pricing it attractively, and making it accessible.
Companies must also communicate with their present and potential stakeholders andthe
general public. For most marketers, therefore, the question is not whether to
communicate but rather what to say, how and when to say it, to whom, and how often.
Consumers can turn to hundreds of cable and satellite TV channels, thousands
of magazines and newspapers, and millions of Internet pages. They are taking a
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more active role in deciding what communications they want to receive as well as how
they want to communicate to others about the products and services they use.
In order to grow and develop successful brands, marketers have over the years used
advertising to enhance brand equity. Since brand equity has become the number one
priority for most if not all organizations, (Keller & Lehmann, 2006) it has been
realized that advertising significantly aids in developing brand equity. Indeed research
studies both through laboratory (Wright, 2002) and field experiments (Moorthy &
Zhao, 2000) have empirically demonstrated that advertising has a positive bearing on
brand perceived quality, brand awareness, associations and loyalty.
Customer retention is a strategy that aims to build a good relationship between

the company and its customers focusing on creating loyal customers by
influencing consumers to be wasing to buy products on an ongoing basis (Santoso et al.,
2018).
According to Kokkonen, (2017) Investigating brand awareness through outdoor

advertisement is one possible way of engaging customers with the brand. This form of
advertisement is physical and located outdoors; in public transportation, walls of
properties and promotional stands . One of the channels to build brand awareness with
advertising is that brand with strong awareness is advertised broadly
(Honkaniemi,
2014). Outdoor advertising reach multiple consumers outside the home and connect
advertisers with consumers (Outdoor Advertising Association of America 2015,).
The aim of the study to the impact of outdoor advertising on company image and its
customer retention in case of Ethiopian leather industry institute, as the one of
governmental organization in Ethiopia that needs to create a strong outdoor
advertising for improving on company image and its customer retention
Ethiopian leather industry institute. The current status of the study that illustrate
computing framework the impact of outdoor advertising on company image and
its customer retention in case of Ethiopian leather industry institute.
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1.2 Statement of the Problem
Outdoor advertising consists of not only media such as billboards, posters, kiosks but
also transit media in the form of messages on automobiles. Outdoor advertising has the
advantage of reaching a lot of people. As a consequence, it has an effective reach and
very high frequency. Its message lifetime is durable and can be seen repeatedly
(Kovačič, 2012). The most common types of outdoor advertising are billboards,
kiosks, and also events and trade-shows that are planned by the sponsoring company.
Outdoor advertising is very common and popularly used in town periphery
which makes it effective By virtue of their reach and frequency; universities
can take advantage of these attributes to enhance highly esteemed brands for their
institutions.
Various previous studies focused on different factors that affect consumers brand
preference. For instance, Waheed and Yang (2017) used one factor which is
social reference group and some others used two factors such as Singh et al.(2014) used
that celebrity endorsement and type of advertising media, Adeole et al.(2005)
used that types of advertising media and Age of consumers, as the two factors
for the study purpose. Furthermore Lema (2016) used those three factors such as
information, communication, and comprehension. Whereas, Buil, Chernatony, and
Martínez, (2013) used that four factors such as source of awareness (advertising&
sales promotion), Age, Gender, and Education. Gezachew (2019) also used that
four factors such as features of advertisement, contents of advertising message, types
of advertising media and reference group influence. As the above literatures written by
different scholars indicates, studies which were conducted on the impact of
advertisement on consumers brand preference by taking two factors; however,
some studies were conducted by taking three and four factors or variables. Each
study used that only specific factors; they may not comprise all factors that exactly
indicate the impact of advertisement on consumers brand preference.
According to Wendmu (2014), Marketers in Ethiopia are presently confronted

with the challenge of developing relevant content and then later finding a medium that
was effectively deliver the message to their target audience. This company
(Fonterra’s joint venture with local partner Faffa) are spending millions birr on
advertising their product. If an advertising strategy fails to achieve the objective, the
million birr spent are not worth it.
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There are insufficient studies and no significant research for the knowledge of student researchers
that informs about the effect of advertisement on Anchor milk brand preference in Addis
Ababa context. As we know these days companies are advertising their product so much on
televisions, radio etc and are spending so much money on the Advertisements of their products.
The final aim of every advertisement is to instigate the actual behavior of the targeted
audience, whether purchase intention or actual Consumption. For increasing the sale of their
product they are taking film stars or other celebrities in their advertisements of their products
which are again very costly. And was pave a way for other researchers to conduct further
survey on this area and serve as a reference material for students and marketing practitioners. Also
the result of advertising effect on Anchor milk brand preference was help the company to
develop effective media ads strategies ( Gezachew, 2012).
In that regard, this paper was in a way answers what key the impact of outdoor
advertising on company image and its customer retention dimensions are important in case of
Ethiopian leather industry institute in particular. Do these outdoor advertising on company image
and its customer retention determine Ethiopian federal leather industry development
institute employee’s company image and its customer retentions or not. It also seeks to
determine if these variables really are applicable and significant in Ethiopian leather industry
institute context and how each one of them affects and determines Ethiopian leather industry
institute success. Considering such gap this study was contribute to the literatures on the impact of
outdoor advertising on company image and its customer retention in case of Ethiopian
federal leather industry development institute.
1.3. Objectives of the Study

1.3.1. General Objective
The general objective of this study was to assess the impact of outdoor advertising on company
image and its customer retention in case of Ethiopian leather industry institute.
1.3.2 Specific Objective

The specific objective of the study was be:-
1. To identify the impact of outdoor advertising on company image in the case of Ethiopian
leather industry institute.
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2. To identify the impact of outdoor advertising on its customer retention
in case of Ethiopian leather industry institute.
3. To determine the relationship between company image and
customer retention in case of Ethiopian leather industry institute.
1.4 Research Question
In order to attain the specific objectives of the study, the researcher was employ the
following research questions:
1. What is the impact of outdoor advertising on company image in the case of

Ethiopian leather industry institute?
2. What is the impact of outdoor advertising on its customer retention in case of
Ethiopian leather industry institute?
3. What is the relationship between company image and customer retention
in case of Ethiopian leather industry institute?
1.5 Significance of the study

The significant of these studies was have an important value to the organization and to
the society in the organization because it tries to indicate the area of strength
and weakness with regard to the impact of outdoor advertising on company image and
its customer retention.This study was be tried to make recommendations
for the identified challenges concerning the impact of outdoor advertising on
company image and its customer retention in case of Ethiopian leather industry
institute in their attempts to strengthen their role in terms of serving the
organization and helps for reallocate resources in areas that have greater
influence on outdoor advertising on company image and its customer retention.
On the other hand the result of this research was serving as starting point for any
other researcher who wants to study in the area of outdoor advertising on company
image and its customer retention.
1.6. Limitations of the Study

The major constraints the researcher was be faced while conducting this study was:
lack of empirical research on the related study area especially in our country, and also
the non-availability of adequately published and documented data on the topic.
Lack of previous studies on the topic area of this study globally as well as in Ethiopia
and lack of secondary data which measures on the impact of outdoor advertising on
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company image and its customer retention enforced the researcher to depend on only
primary data which was collected through structured questionnaire.
To conduct the research within the given time frame and to reduce cost of conducting
the study, the researcher was limit the sample to the selected Ethiopian leather
industry institute. An in-depth study in all Water and sewage Authority could not be
conducted Addis Ababa located in Ethiopian leather industry institute due to resource
and time limitations. . Therefore, it is difficult to generalize the findings and results to
the whole key account employees in Ethiopian leather industry institute. However,
the recommendations provide was helps for all Ethiopian leather industry institutes to
insight on the impact of outdoor advertising on company image and its
customer retention in case of Ethiopian leather industry institute.
1.7. Scope of the study

The major constraints the researcher faced while conducting of the study was
be taking in Federal Leather industry Development Institution is a relatively
older industry with more than 90 years of involvement in processing leather and
producing leather products. This is entitled on the impact of outdoor advertising
on company image and its customer retention in the case of in Federal
Leather industry Development Institution. The study was examine the impact of
outdoor advertising on company image and its customer retention Evidence from
Federal Leather industry Development Institution by using main factors that
influence parameter, the study was more emphasize on factors that affect
implementation of outdoor advertising. It was be conducted in Federal Leather
industry Development Institution.
1.8. Organization of the Study

This study was be organized into five chapters. The five chapters was comprise of the
Introduction, Review of Related Literature, Research Design & Methodology, Result
& Discussion and Summary, Conclusions & Recommendations.
The first chapter was provide a general introduction of the study

including background of the study, statement of the problem, basic research
questions, objectives of the study, hypothesis of the study, and significance of
the study and scope of the study.
Chapter two was cover the literature relevant to the study. It was include concepts and
theoretical framework as well as the conceptual framework.
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Chapter three was elaborate the type and design of the study. It was include research
method, sampling technique, data collection method and method of data analysis that
was be used in the study.
Chapter four was summarize the findings of the study and discuss the findings.
Finally chapter five was comprise of four sections which include summary findings,
conclusions, recommendations and limitations & suggestion for further study.
1.9 Definition of Terms
A. Outdoor Advertising
Is any kind of advertisement that is displayed outside, usually in public areas such as
roadside billboards, bus stops, train stations, and other public spaces. It can
also include banners and signs hung in public areas, such as on buildings,
parks, and beaches.
B. Company Image
The perception people have of your business when they hear your company name. A
business's image is composed of an infinite variety of facts, events, personal histories,
advertising and goals that work together to make an impression on the public.
C. Customer retention:
A company's ability to turn customers into repeat buyers and prevent them
from switching to a competitor. Customer retention indicates whether your product
and the quality of your service please your existing customers.
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CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
2.1 Introduction
Literature review described and examined the supporting theories that are related to
this research discusses the definition and the concepts of outdoor advertising on
company image and its customer retention, and summarizes the relationship between
the impact of outdoor advertising on company image and its customer retention,
empirical review, and conceptual framework.
2.2 Concept of Outdoor Advertising

Advertising is the use of paid-for space in a publication, for instance, or time
on television, radio or cinema, usually as a means of persuading people to take
a particular course of action, or to reach a point of view. It may also be taken to
include posters and other outdoor advertising (Wilmshurst, & Mackay, 1999).
According to Keller, and Lehmann, (2006), Advertising is any paid form of
non-personal presentation and promotion of ideas, goods, or services by an identified
sponsor via print media (newspapers and magazines), broadcast media (radio and
television), network media (telephone, cable, satellite, wireless), electronic media
(audiotape, videotape, videodisk, CD-ROM, Web page), and display media
(billboards, signs, posters).
Outdoor advertising is defined as the various forms of advertising which occur within
the wider urban environment. Outdoor advertising, also known as out-of-home
advertising, is advertising that reaches the consumer while they are outside of their
home. Examples of outdoor advertising include billboards, bus shelters, kiosks, and
transit advertising (Koeck & Warnaby, 2014). Fill (2009) presents three main types of
outdoor advertising, “street furniture”, “transit” and “billboards”. As noted
above, outdoor advertising is one of the media which has emerged in a recent
decade. Researchers have described an advantage of using outdoor
advertising is that compared to other media, economic efficiency in terms of low
production costs and low cost per thousand exposures (Tsuji, 2017).
In addition, the strength of outdoor advertising includes geographic flexibility

for segmentation by location. Koeck & Warnaby, (2014) also found that
outdoor advertising was rated higher in terms of ability to attract new customers. Thus,
prior research has identified a number of advantages for outdoor advertising.
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Outdoor advertising consists of not only media such as billboards, posters, kiosks but
also transit media in the form of messages on automobiles. Outdoor advertising has the
advantage of reaching a lot of people. As a consequence, it has an effective reach and
very high frequency. Its message lifetime is durable and can be seen repeatedly
(Mutsikiwa, Dhliwayo & Basera, 2013). The most common types of
outdoor advertising are billboards, kiosks, and also events and trade-shows that are
planned by the sponsoring company. Billboard advertising is very common and
popularly used in town periphery which makes it effective By virtue of their
reach and frequency; universities can take advantage of these attributes to enhance
highly esteemed brands for their institutions.
Outdoor advertising is one of the major advertising media used in the present day. It
also happens to be one of the first forms of display advertisement in the history of
advertising. Today it has evolved into several types depending on the creativity of the
artist designing it. Outdoor media include billboards, bus benches, interiors and
exteriors of buses, taxis and business vehicles, and sign age posted on the exterior of
one’s own brick-and-mortar location, banners, posters, and much more. Even though
other media like print, radio and television generate high revenue with advertising, out
of home advertisings like banners and bill boards can be much more effective than
advertisings in print and electronic media (Osborne, & Coleman, 2008).
2.3 Types of Outdoor advertising

2.3.1 Billboard advertising
Billboard advertising is one of, if not the most recognizable mediums
synonymous with OOHM. These large posters came into common usage all the way
back in the early 19th century, and have remained one of the most popular
forms of outdoor advertising ever since. While the materials used to construct and
print these adverts have changed and evolved, the basic concept of a large
printed advertisement – positioned prominently in the public eye – is a cornerstone of
the OOHM marketplace. Billboards offer marketers and advertisers a wide degree
of flexibility in their campaign, and are available in all kinds of sizes, and in all kinds
of places. Billboards are often situated along roadsides (on bridges or independent
stands) and in proximity to areas of high footfall, such as shopping centers,
stadiums, and city centers (Mutsikiwa, Dhliwayo & Basera, 2013)
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2.3.2 Point of sale advertising
According to Osborne and Coleman (2008) stated that While some types of outdoor
advertising are intended to attract the attention of a wide range of consumers, point of
sale advertising (also known as ‘POS’ or ‘POP’ – point of purchase) is a little more
specific.
This type of advertising involves an advert or display positioned in proximity

to a‘point of sale’ such as the checkout section of a supermarket, or near the queue in
a clothes store, with the intention of promoting a product to a consumer right as
they’re about to make a purchase.
The psychological theory behind point of sale advertising is fairly straightforward: as
the target audience is about to make a purchase anyway, they’re likely to be
more open to the suggestion of adding another product to their basket, particularly if
that product is on offer, or is unique to the store they’re in. The products,
brands, and promoted items are carefully chosen to be of interest to the specific
buyer – for instance, shoe polish and laces at the checkout of a boot maker.
The use of point of sale campaigns is also particularly beneficial to brands or

marketers promoting a product that is currently discounted, or that is a limited
or special edition. The implied pressure of only being able to take advantage of the
offer‘there and then’ can persuade a consumer that the immediate purchase of the item
is in their best interest
2.3.3 Retail Advertising

According to Koeck & Warnaby, (2014) Another immensely popular and successful
form of OOHM, retail advertising takes place specifically in or around retail
environments, such as stores and shopping centers. In recent years, improvements in
printing technology have expanded the options that are available to marketers
and advertisers, from simple printed adverts to more memorable displays that
leave a lasting impression.
Retail advertising often promotes businesses in proximity to the environment in which

the adverts are situated (such as a store with an outlet in a shopping center),
and entices customers to visit their premises. Retail environments such as malls
also provide ample space for large-scale displays by prominent brands, with
more elaborate advertisements now a common sight.
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2.3.4 Vehicle Advertising
According to Keller, and Lehmann, (2006) While static adverts such as billboards can
be an effective way to capitalize on an area of high traffic, the number of
people reached is limited to that specific location. Vehicle advertising avoids this, and
instead presents an on-the-go advertisement in the form of a printed graphic either
placed on the side of the vehicle in question, or as a vinyl wrap covering its body.
This is an effective and popular type of outdoor advertising due to the

increased exposure it offers. The vehicle in question (often a taxi, bus, or van) is
constantly on the move, and so the advert is able to reach people in a much wider
catchment area.
This increases brand awareness on a much larger scale, and can provide a valuable
source of exposure to national businesses, or those with multiple locations. Vehicle
advertising can also be an effective means of reinforcing the presence of a business in
a given area, if a fleet of vehicles with the same branding is seen regularly.
2.3.5 Construction Advertising

Tsuji, (2017) at any given moment there was be multiple construction sites in
operation in both urban and rural areas. The necessity for protective barriers – such as
hoardings and scaffold covers – offers more than just a way of keeping the public and
workmen safe, and presents a unique opportunity for outdoor advertising.
Construction adverts can feature a preview of the project that’s under way, or
a promotion for the company or companies involved with the work. Alternatively, they
can promote other local businesses who rent the available spaces.
There is something of a balancing act to strike with construction advertising, as local

councils and authorities was often dictate the kinds of adverts that can and cannot be
used. For instance, here are a number of rules and regulations for construction
hoarding graphics that determine whether the designs was be accepted.
2.4 Company Image

Image is associated with the name or design or a combination of both that is intended
to identify products from manufacturers that was distinguish them from
their competitors (Dowling, 1993). Company image is the consumer’s assessment
of the brand. The creation of a brand image is based on personal experience or the
reputation of the product told by other people or the media (Aaker and Biel, 1993).
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Company image an assessment of consumers of the brand in a market. The creation of
a brand image is obtained from personal experience or the reputation of the product
told by other people or the media (Dowling, 1993). Imaging a brand in such a way was
affect the desire of consumers to come or buy the products offered. The
company’s brand image is a company promise given to consumers that affects
customer satisfaction (Faircloth, Capella, & Alford, 2001).
2.5 Customer Retention

A customer retention strategy focuses on building loyal customers by
persuading customers to continue purchasing items in order to foster a positive
relationship between the business and its clients (Santoso et al., 2018).
Aspinall, Nancarrow, and Stone (2001) stated that client retention offers businesses
the chance to increase revenues because it eliminates the cost of product introduction.
To determine the effects created in a tourist destination, such as an adventure tourism
destination, it is necessary to analyze the influence of brand image and social media on
customer satisfaction and customer retention. Customer retention is increasingly
being seen as an important managerial issue, especially in the context of
saturated market or lower growth of the number of new customers. It has
also been acknowledged as a key objective of relationship marketing, primarily
because of its potential in delivering superior relationship economics, i.e. it costs less
to retain than to acquire new customers.
Customer satisfaction is an important thing that must be maintained by the company. It

represents the expected performances of a product felt by the buyers. The
combination of customer satisfaction obtained to the service excellence provided was
trigger customer retention (Aaker and Biel, 1993). Customer retention is a tendency of
customers to continue to insist on using products or services in the future (Dowling,
1993).
2.6 Measurement of Outdoor Advertising

One of the biggest challenges facing outdoor advertising as a viable medium stems
from the difficulty of measuring of audience reach /frequency (especially as it pertains
to specific customer segments / profile) in verifiable, quantitative terms. This
fact, acknowledged by the industry, is a major factor preventing widespread use of
outdoor advertising as a significant medium (Gulmez, Karaca, & Kitapci, 2010). the
lack of
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specific data pertaining to audience profile is also a major hindrance. This is
especially true when it comes to business-to-business advertising since the target
segments are typically much smaller and more geographically concentrated, and
therefore more “tightly” defined than in consumer products. Before businesses decide
on a location for their billboard or outdoor ad, we recommend using government data,
census, road traffic counts, and manual travel data to measure foot and
vehicular traffic.
2.7 Review of Empirical Studies

Advertising serves as more than just a means of promoting goods and services.
Positioning a brand in the prospective perception or perceptual space in relation
to competitors is its primary objective in order to foster distinctiveness and preference
(singh, 2012).
Amsalu, (2022) evaluated the "Effect of advertising on the brand preference of tea."
The study's independent variables include age, gender, and education, as well as
advertising, sales promotion, and sources of awareness and revenue. According to the
study, 72.4% of respondents believe that advertising is the primary source of
their brand recognition for tea, whereas 2.2% of respondents believe that sales
promotion programs are responsible. In the side of parameters for the parameters of
tea brand, 63.8% of respondents considered quality of the product (tea) as the
most important parameter and only 12.9% of respondents considered
advertising as the most important reason for the preference of tea.
According to Biswas, Hussain, and O'Donnell (2009), celebrity endorsements have a

moderately beneficial effect on consumer visibility and attention. The discussion
includes implications for marketers as well as ideas for additional research. The
author of the essay believes that, despite the significant risks involved,
businesses should study the numerous variables that can lower these risks and,
as a result, improve the likelihood of a successful transfer of brand leverage from the
celebrity to the products and services.
Michael and Nedunchezhian (2012) did a study titled "A Study on Carbonated
Beverage Market with Reference to Coca-Cola: The Influence of Media
on Consumers' Brand Preference." The research demonstrates that brand
preference exists in the market for carbonated beverages and that consumer
preferences and
13
brand selection are influenced by media activities. The study used information,
communication, and comprehension as its three key variables. This study showed that
customer brand choice is significantly influenced by the variable information in
advertisements. Attractiveness, attention, and awareness are the three dimensions used
in this context to measure the variable information. About 56% of respondents who are
heavily impacted by information in advertisements fall into these three categories
(Vivekananthan, 2010).
According to Wendmu (2014) conducted his study on ‘The effect of outdoor

advertising on public’ most of the people spend his time out of home and the
company misses them because the company focuses on other advertising
methods than outdoor advertising. Although some studies have described
characteristics of outdoor advertising, there have been few studies have
identified what factors make outdoor advertising more effective (Achieng, J. A.
(2009). In general, studies on efficiency of advertising media have found what
factors affect an efficiency of advertising from either “whether consumers
recognize, to work of the short term memory. Advertising itself or not” or
“whether attitude or purchase intention toward the advertised products is increased
or not (Tsuji, 2017). More than a quarter of respondents went further in
suggesting that billboards increased customer retention (28.2 percent) and loyalty
(27.0 percent), which indicates belief in the reinforcement roles of billboards among a
proportion of marketing executives.
2.8 Conceptual Framework of the Study
The conceptual framework (Figure 2.1) had been created after a thorough assessment
of the literature review. The conceptual framework proposes those outdoor
advertising as independent variables such as Media used for advertising, Source
factors and Message factors and Company image and Customer retention
as dependent variables which is measured in terms of modifying factors;
communication, informative, comprehension, hedonic/pleasure, and credibility of
advertisement and inters dependency between the organization and the outdoor
advertising constructs a framework from the review of literatures.
The conceptual framework proposes that the impact of outdoor advertising on
company image and its customer retention in case of Ethiopian leather industry
institute.
14
Fig. 2.1 Conceptual Framework
— 15 —
CHAPTER THREE
3 RESEARCH METHODOLOGY
3.1 Introduction
This chapter of the study is all about the methodological techniques that the
researcher was undertakes throughout the investigation or conduct of the study.
Moreover, it discusses the research design and methodology in detail so as to have a
clear picture on the processes and techniques that was be used in conducting the study.
The research design shows the general plan how to answer the research questions. It
also gives information on how sample respondents drawn from the population
and gave description on the number of respondents and how they was be
selected. Reliability and validity test of the research instrument, model
specification of the study is discussed and finally ethical consideration of the study.
3.2 Research Design

The research design refers to the overall strategy that you choose to integrate
the different components of the study in a coherent and logical way, thereby,
ensuring you was effectively address the research problem; it constitutes the blueprint
for the collection, measurement, and analysis of data. In case, the researcher was
employ descriptive research design to assess the impact of outdoor advertising on
company image and its customer retention in case of Ethiopian Leather Industry
Development Institution. Therefore, descriptive research design is a type of
research design that aims to systematically obtain information to describe a
phenomenon, situation, or population. As result, this design was enable the
researcher to provide enough description about the characteristics of the target
population.
3.3 Research Approach

Research approaches are plans and the procedures for research that span the
steps from broad assumptions to detailed methods of data collection,
analysis, and interpretation. There are three research approaches such as
qualitative approach, quantitative approach and mixed approach. Therefore, the
researcher was employ qualitative research approach in the study, in order to
assess the impact of outdoor advertising on company image and its customer
retention in case of Ethiopian Leather Industry Development Institution. The process
of research involves emerging
— 16 —
questions and procedures, data typically collected in the participant’s setting,
data analysis inductively building from particulars to general themes, and the
researcher making interpretations of the meaning of the data.
3.4 Sources of Data

This study was mainly depend on primary source of data and to some extent
secondary sources.
3.4.1 Primary Sources of Data

Primary sources of data is that which had not been previously generated. It is a first-
hand sources of data. It's collected at the time of research by the researcher
themselves through like survey, questionnaires, interview, etc. So, the researcher was
use the primary sources of data.
3.4.2 Secondary Source of Data

As opposed to primary data, secondary data is that which already exists at the time of
research. The researcher does not have to generate it themselves, but rather, can
simply collate or analyse data which has already been collected. Therefore, the
researcher also use the secondary sources of data.
3.5 Sample Design

3.5.1 Target Population
This study was be conducted in Federal Leather Industry Development Institution.
Therefore, target population of this study was the employees of Federal Leather
Industry Development Institution totally there are 350 employees.
3.5.2 Sampling Technique

The researcher in this study was employ purposive sampling technique in order
to select sample for the study; the procedure in which a researcher was select the sample
based on some appropriate characteristic was also chose to take a sample of
participants. Therefore, through purposive sampling methods, 187 employees was be
selected from the target population of the study i.e. 350 employees of Federal Leather
Industry Development Institution.
3.5.3 Sample Size
The sample size of this study was be 187 respondents was draw from target
population of 350 employees of Federal Leather Industry Development Institution.
— 17 —
The total sample size would determine by using the following sample size
determination formula developed by Taro Yamane (1967).
𝑁
𝑛=
1 + 𝑁𝑒 2
Where:
n: The sample size N: The population size
e: The sampling error (0.05) which is 95% of level of confidence
According to the above formula, the total sample size from the total number of target
population would calculate as follow.
350
𝑛=
1 + 350(0.05)2
𝑛 = 187
3.6 Method of Data Collection
In order to gather the primary sources of data, the researcher was use a close-ended
questionnaires. Because, a close ended questions are a question types that ask
respondents to choose from a distinct set of pre-defined responses, such as “yes/no” or
among set multiple choice questions. While the researcher gathers the secondary
sources of data through different international publications, newspapers, journals,
official statics, etc.
3.7 Method of Data Analysis
The researcher was employ descriptive data analysis method in order to assess
the impact of outdoor advertising on company image and its customer retention in case
of Ethiopian Leather Industry Development Institution. Because, descriptive
data analysis methods are used to summarize and describe the characteristics of a set
of data through frequency, percentage, tabulation, and average or mean.
3.8 Ethical Consideration

The main purpose of this study is to assess the impact of outdoor advertising
on company image and its customer retention would be secured before data
collection is launched. The intention of the data to be collected was made clear to
participants and the information obtained from them would not be disclosed to any
party and solely was be used for academic purposes. To ensure that privacy of the
respondent, name and other identifying information was not be used in the study.
Participants was be asked to take part wasingly and responded on their own
accordance.
— 18 —
CHAPTER FOUR
4 DATA ANALSIS AND INTERPRETATION
4.1 Introduction
This portion of the study is concerned with data analysis and interpretation in order to
assess the impacts of outdoor advertising on company’s image and consumers
retention in the case of Ethiopian Leather Industry Development Institution. The
primary sources of data were gathered through close-ended questionnaires for
187 respondents or employees that work in the organization i.e. Ethiopian
Leather Industry Development Institution.
Out of the total number of (187) target population of the study, about 128 respondents
were respond the survey questionnaires completely, while the remaining 59
respondent doesn’t fill and/or return the questionnaires fully and/or partly, this
is because of their unwasingness to give responses, shortage of time,
and misunderstandings, therefore, the study were analyzed based on 128
respondents primary sources of data. While, the secondary sources of data were
gathered from different sources such as internet websites, magazine of the institution,
publications of the institution for different years, etc. After the collection of
required data from different sources, it were analyzed through descriptive method of
analysis, in order to describe and/or assess the impacts of outdoor advertising on the
company’s image and customers retention, and also their relationships. The
analyzed data were presented using via tabulation.
4.2 Socio-demographic Characteristics of Respondents
Socio-demographics are nothing more than characteristics of a population. Generally,

characteristics such as age, gender, ethnicity, education level, income, type of client,
years of experience, location, etc. are being considered as socio-demographics and are
being asked in all kinds of surveys.
Therefore, the following table reveal us the socio-demographics of the total number
of128 respondents or employees in Ethiopian Leather Industry Development
Institution that were collected through questionnaires.
— 20 —
Table 4.1 : Socio-demographics of respondents
Variables Category Frequency Percentage (%)
Gender Male 86 67.2%
Female 42 32.8%
Total 128 100%
Age 20 - 30 years 67 52.4%
31 - 40 years 28 21.8%
41 - 50 years 19 14.8%
Above 50 years 14 11%
Total 128 100%
Marital Status Single 74
57.8% Married 47 36.7%
Divorced 7 5.5%
Widowed - -
Total 128 100%
Number of children None 79 61.7%
1-3 34 26.6%
3-6 15 11.7%
Above 6 - -
Total 128 100%
Monthly Income level Below 2,500 24 18.8%
(in Birr) 2,500 - 5,000 56 43.8%
5,000 - 10,000 35 27.3%
Above 10,000 13 10.1%
Total 128 100%
The above table 4.1 shows us the socio-demographics of the respondents, in

which from the total number of (128) respondents, about 86 (67.2%) are male
and the remains 42 (32.8%) are female. Most of respondents 67 (52.4%) are
under the age group between 20 - 30 years, and 14 (11%) respondents are
under the age group above 50 years. The martial status of 76 (57.8%) respondents
are single or unmarried and 47 (36.7%) respondents are in marriage, and the remaining
7 (5.5%) respondents are divorced. Beside, 76 (61.7%) respondents doesn’t
have children, and the remaining respondents have children that ranges from 1 - 6
child. The income level of
— 21 —
the total number of (128) the respondents differs from the range of less than
2,500
Birr up to greater than 10,000 Birr monthly. So, out of the total respondents, most of
56 (43.8%) respondents are under the income level of 2,500 - 10,000 Birr, and
24 (18.8%) respondents earn below 2,500 Birr monthly income. Only 13 (10.1%)
respondents earn above 10,000 Birr monthly income.
4.3 Information's related to the working environment of the

respondents
This section of the chapter is all about the information that relates to the respondents
or employees educational level, year of experience in the institution, and
assigned department and/or responsibilities. Therefore, the following table
show us the information related to the working environment of the respondents.
Table 4.2: Frequency distribution towards the status and working environments
of the respondents
Variables Category Frequency Percentage (%)
Educational Diploma 24 18.8%
Level BA/BSc 51 39.8%
MA/MSc 39 30.5%
PhD 3 2.4%
Other 11 8.6%
Total 128 100%
Year of Less than 2 years 24 18.8%
Experience 2 - 6 years 68 53.1%
6 - 10 years 26 20.3%
Above 10 years 10 7.8%
Total 128 100%
Department Finance and Procurement 18 14.1%
Audit and Inspection 9 7%
Human Resource 14 11%
ICT 7 5.5%
Engineering Service 11 8.6%
Knowledge Marketing 42 32.8%
Project Analysis and Testing 27 21%
Total 128 100%
— 22 —
The above table 4.2 reveals that informations that relates to the respondents or
employees educational level, year of experiences, and their department or
responsibilities that intended to accomplish. Thus, the educational level of
respondents shows that most 51 (39.8%) of the employees or respondents have
BA/BSc, and 24 (18.8%) respondents have diploma certificates, only 3 (2.4%)
respondents have PhD. The remains 11 respondents doesn’t specified or it is under the
category of other. Next, the year of experience of the respondents reveals that most 68
(53.1%) respondents have experience ranges from 2 - 6 years, and only 10
(7.8%) respondents have experience above 10 years.
The last variable, department, describes that the respondents different responsibilities
or tasks they accomplish in which the institution has 7 departments, therefore,
42 respondents are under the department of knowledge marketing, 27 respondents
under project analysis ans testing, 18 respondents under finance and
procurement department, 14 respondents under human resource, 11 engineering
service, 9 audit and inspection, and 7 respondents are under ICT department.
Generally, the total respondents information relates to the educational level

shows most the employees (or respondents) of the institute have BA/BSc, and on the
other the experience level of most respondents ranges between 2 years up to 6 years.
Beside, most of respondents or employees are under the department of knowledge
marketing, in which marketing is all about knowledge. You need to know every detail
about the market in general and the audience you want to get attention from.
Customer data creates profiles leading strictly to the people who can benefit
from your business. Further, research helps to understand buyer's intentions and
demands. Therefore, I was focused on this department employees responses or
data in order to attain the objective of the study.
4.4 Outdoor Advertising Factors
Outdoor advertising is any kind of advertisement that is displayed outside, usually in

public areas such as roadside billboards, bus stops, train stations, and other
public spaces. It can also include banners and signs hung in public areas, such
as on buildings, parks, and beaches. Therefore, there are three main outdoor
advertising factors in this study, thus, the following tables shows these factors in
which they can affect the customers retention and company’s image.
— 23 —
Table 4.3: Frequency distribution on usage of advertising media
No Variable Indicators Frequency Percentage (%)
1 Advertising using Strongly Agree 78 60.9%
television as a Agree 36 28.1%
media influence my brand Neutral 14 11%
choice of which Disagree - -
university to enroll. Strongly Disagree - -
Total 128 100%
Audio Channels like radio Strongly Agree 43 33.6%
2
are strong enough to Agree 65 50.8%
address your product. Neutral 15 11.7%
Disagree 5 3.9%
Strongly Disagree - -
Total 128 100%
Newspapers like magazine Strongly Agree 36 28.1%
3
are well trained to give Agree 81 63.3%
appropriate on addressing Neutral - -
your product. Disagree 11 8.6%
Total 128 100%
Consumers rely on Strongly Agree 31 24.2%
4
advertisement to make Agree 54 42.2%
purchase decision. Neutral 26 20.3%
Disagree 17 13.3%
Total 128 100%
5 Outdoor (Banner & Strongly Agree 49 38.3%

Billboard) advertising is
Agree 51 39.8%
my choice to decide which
Neutral 23 18%
university to enroll.
Disagree 5 3.9%
Total 128 100%
— 24 —
The above table 4.3 reveals that the frequency distribution of usage of
advertising medias, which is one of the outdoor advertising factor, thus, the
advertising medias are such as TV, radio, news paper, advertisement and outdoor
advertises. Therefore, the first variable, advertising using television as a media
influence my brand choice of which university to enroll, about 78 (60.9%)
respondents were strongly agreed, 36 (28.1%) respondents were agreed, and the
remaining 14 (11%) respondents say neutral. The second variable, audio channels
like radio are strong enough to address your product, about 43 (33.6%) respondents
were agreed, 15 (11.7%) respondents say neutral, and the other 5 (3.9%)
respondents were disagreed. The third variable, newspapers like magazine are
well trained to give appropriate on addressing your product, about 36 (28.1%)
respondents say strongly agreed, 81 (63.3%) respondents were agreed, and the
remaining 11 (8.6%) respondents were disagreed. The fifth variable, consumers
rely on advertisement to make purchase decision, about 31 (24.2%) respondents
were strongly agreed, 54 (42.2%) respondents were agreed, 26 (20.3%) respondents
say neutral, and the other 17 (13.3%) respondents were disagreed. Finally,
the last variable, consumers rely on advertisement to make purchase decision,
about 49 (38.3%) respondents were strongly agreed, 51 (39.8%) respondents
were agreed, 23 (18%) respondents say neutral, and the other 5 (3.9%) respondents
were disagreed.
Table 4.4: Frequency distribution on source factors

No Variable Indicators Frequency
Percentage
(%)
1 The objective of Strongly Agree 32 25%
organization is to reach Agree 96 75%
out to potential buyers. Neutral - -
Disagree - -
Total 128 100%
The customer get Strongly Agree 23 18%
2
interested about your Agree 65 50.7%
products delivered by Neutral 14 11%
your organization. Disagree 26 20.3%
— 25 —
Total 128 100%
The organization Strongly Agree 67 52.3%
3
promote company image Agree 45 35.2%
Neutral 16 12.5%
Disagree - -
Total 128 100%
Advertising campaign Strongly Agree 23 18%
4
endorsed by likeable Agree 34 26.5%
Celebrity influence Neutral 55 43%
my brand choice of Disagree 16 12.5%
which university to Strongly Disagree - -
enroll. Total 128 100%
Table 4.4 shows us the second outdoor advertising factor, source factors, which the
question relates to the objective of organization is to reach out to potential buyers, out
of the total number of (128) respondents, 32 (25%) respondents strongly agreed and
96 (75%) respondents say agreed. The other question relates to the customers interest
on the delivery of the products were strongly agreed by 23 (18%) respondents,
65 (50.7%) respondent agreed, and the other 26 (20.3) respondents were disagreed. On
the other hand, company image promotion by the organization responded
strongly agree by most of the 67 (52.3) respondents, 45 (32.5%) respondents were
agreed, and the remaining 16 (12.5%) respondents say neutral. Finally, the advertising
campaign endorsed by likeable celebrity influence my brand choice of which university
to enroll, the responses of most 55 (43%) respondents was medium or neutral, and the
other 23 (18%) respondents were strongly agreed, 34 (26.5%) respondents were
agreed, and the remaining 16 (12.5%) respondents were disagreed.
Table 4.5: Frequency distribution towards message factors

No Variable Indicators Frequency Percentage
(%)
1 Advertising message Strongly Agree 56 43.8%
which use humor as a
Agree 55 43%
focal point significantly
Neutral 17 13.3%
influence my brand
Disagree - -
— 26 —
choice of which Strongly Disagree - -
university to enroll.
Total 128 100%
2 The key objective or Strongly Agree 103 80.5%

purpose of the
Agree 25 19.5%
organization clearly
Neutral - -
addressed to the
customer Disagree - -
Total 128 100%
3 The organization Strongly Agree 38 29.7%

advertising message that
Agree 71 55.5%
demonstrate service
Neutral 19 14.8%
features and benefits
Disagree - -
Total 128 100%
4 The organization develop Strongly Agree 50 39.1%

stories and
Agree 67 52.3%
documentaries are
Neutral 11 8.6%
available
Disagree - -
Total 128 100%
5 The organization Strongly Agree 58 45.3%

advertising with quality
Agree 70 54.7%
of the product
Neutral - -
Disagree - -
— 27 —
Total 128 100%
Strongly Agree 59 46%
6 The organization
Agree 66 51.7%
fulfilling both the
Neutral 3 2.3%
company and the
consumers interest Disagree - -
Total 128 100%
The above table 4.5 shows the last outdoor advertising factor, message factors.
Advertising message which use humor as a focal point significantly influence
my brand choice of which university to enroll, in which 56 (43.8%) of the
respondents strongly agreed and 55 (43%) respondents agreed, and the remaining
17 (13.3%) respondents say neutral. The other variable under message factors is, the
key objective or purpose of the organization clearly addressed to the customer, in
which most of
103 (80.5%) respondents strongly agreed, and 25 (19.5%) respondents say
agreed. The third variable, the organization advertising message that demonstrate
service features and benefits, about 38 (29.7%) respondents strongly agreed and most
of 71 (55.5%) respondents say agreed, and the remaining 19 (14.8%)
respondents say neutral. The fourth variable of message factor, the organization
develop stories and documentaries are available, which is about 50 (39.1)
respondent were strongly agreed, 67 (52.3%) respondents say agreed, and the other
11 (8.6%) respondents say neutral. The fifth variable, the organization advertising
with quality of the product, out of the total respondents about 58 (45.3%)
respodents strongly agreed and 70 (54.7%) respondents say agreed. The last
variable of message factor, the organization fulfilling both the company and the
consumers interest, from the total number of the respondents about 59 (46%)
respondents strongly agreed and 66 (51.7%) respondents agreed, and the
remaining 3 (2.3%) respondents say neutral. Generally, according to the response
of respondents the message factor, in which almost all respondent was agreed
on the message factor, in which it was one of the outdoor advertising factor,
that can influence the company image and customer retention.
— 28 —
4.5 Company Image and its Customer Retention
Company image is the perception people have of your business when they hear your
company name. A business's image is composed of an infinite variety of facts, events,
personal histories, advertising and goals that work together to make an impression on
the public. On the other hand, customer retention is a company's ability to turn
customers into repeat buyers and prevent them from switching to a competitor.
Customer retention indicates whether your product and the quality of your
service please your existing customers. Therefore, the following tables
shows us the responses of the employees on the company’s image and customer
retention.
Table 4.6: Frequency distribution towards the responses of employees on

company’s image
(%)
1 The company image is Strongly Agree 53 41.4%
outstanding and gives me
Agree 55 43%
a good impression
Neutral 20 15.6%
Disagree
Strongly Disagree
Total 128 100%

The company service is Strongly Agree 63 49.2%
2
really dependable
Agree 65 50.8%
Neutral -
- Disagree - -
Total 128 100%

The company provides
3 Strongly Agree 33 25.8%
adequate support at all
Agree 55 43%
time
Neutral 30 23.4%
Disagree 10 7.8%
— 29 —
Total 128 100%
Strongly Agree 42 32.8%

The image of the
4
company provides good Agree 51 39.8%
service quality with Neutral 31 24.2%
affordable price
Disagree 4 3.2%
Total 128 100%

5 The image helps me to
Agree 37 28.9%
better fit in to my social
Neutral 45 35.2%
group
Disagree 12 9.3%
Total 128 100%
The above table 4.6 shows us the the responses of employees on the company image,
in which the first variable, the company image is outstanding and gives me a good
impression, about 53 (41.4%) respondeents strongly agreed, 55 (43%)
respondents say agree, and the other 20 (15.6%) respondents say neutral. The second
variable, the company service is really dependable, strongly agreed by 63
(49.2%) respondents, and the remaining 65 (50.8%) respondents say agree. The third
variable, the company provides adequate support at all time, was strongly agreed by
33 (25.8%) respondents, and 55 (43%) respondents say agree. The other 30 (23.4%)
respondents say neutral and 10 (7.8%) respondents say disagree. The fourth
variable, the image of the company provides good service quality with affordable
price, 42 (32.8%) respondents was strongly agreed, 51 (39.8%) respondents say agree,
31 (24.2%) respondents say neutral, and the other 4 (3.2%) respondents say disagree.
The last variable, the image helps me to better fit in to my social group, about
34 (26.6%) respondents were strongly agreed, 37 (28.9%) respondents were
agreed, 45 (35.2%) respondents say
— 30 —
neutral, and the other 12 (9.3%) respondent were disagreed. The last variable,
the image helps me to better fit in to my social group, in which about 34
(26.6%) respondents were strongly agreed, 37 (28.9%) respondents were agreed, 45
(35.2%) respondents say neutral, and the other 12 (9.3%) respondents were disagreed.
Table 4.7: Frequency distribution towards the responses of employees

on customer’s retention
(%)
1 The organization offer a Strongly Agree 46 36%
discount for returning
Agree 56 43.7%
customers
Neutral 26 20.3%
Disagree - -
Total 128 100%
2 The organization run Strongly Agree 31 24.2%

retention email
Agree 45 35.2%
marketing campaigns
Neutral 52 40.6%
Disagree - -
Total 128 100%

The organization
3 Strongly Agree 17 13.3%
encourage customers to
Agree 26 20.3%
join a subscription
program Neutral 50 39.1%
Disagree 35 27.3%
Total 128 100%
4 The organization create a Strongly Agree 22 17.2%

loyalty program
Agree 23 18%
— 30 —
Neutral 55 43%
Disagree 28 21.8%
Total 128 100%

The brand makes a
5
positive contribution to Agree 52 40.6%
my business/myself Neutral 25 19.5%
Disagree 7 5.5%
Strongly Disagree %
Total 128 100%

The image perfectly fits
6
the expectation of the Agree 35 27.3%
customer Neutral 28 21.9%
Disagree - -
Total 128 100%
7 The organization staff is Strongly Agree 41 32%

knowledgeable to
Agree 69 54%
introduce and explain all
Neutral 18 14%
services that the
customer want. Disagree - -
Total 128 100%
The above table 4.7 show the responses of the employees on the customer retention, in
which is the first variable, the organization offer a discount for returning customers,
46 (36%) respondents were strongly agreed, 56 (43.7%) respondents were agreed, and
— 31 —
the other 26 (20.3%) respondents say neutral. The second variable, the organization
run retention email marketing campaigns, in which about 31 (24.2%)
respondents were strongly agreed, 45 (35.2%) respondents were agreed, and the other
50 (40.6%) respondents say neutral. The third variable, the organization encourage
customers to join a subscription program, that about 17 (13.3%) respondents were
strongly agreed,
26 (20.3%) respondents were agreed, 50 (39.1%) respondents say neutral, and
the remaining 35 (27.3%) respondents were disagreed. The fourth variable,
the organization create a loyalty program, about 22 (17.2%) respondents were
strongly agreed, 23 (18%) respondents were agreed, 55 (43%) respondents say neutral,
and the remaining 28 (21.8%) respondents were disagreed. The fifth variable, the
brand makes a positive contribution to my business/myself, about 44 (34.4%)
respondents were strongly agreed, 52 (40.6%) respondents were agreed, 25 (19.5%)
respondents say neutral, and the remaining 7 (5.5%) respondents were disagreed.
The sixth variable, the image perfectly fits the expectation of the customer, most of 65
(50.8%) respondents were strongly agreed, 35 (27.3%) respondents were agreed, and
the other
28 (21.9%) respondents say neutral. Finally, the last variable, the organization staff is
knowledgeable to introduce and explain all services that the customer want, in about
41 (32%) respondents were strongly agreed, 69 (54%) respondents were agreed, and
the remaining 18 (14%) respondents say neutral.
— 32 —
CHAPTER FIVE
5 CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions
Advertising serves as a powerful tool for building brand awareness and attracting
potential customers across various industries. While its primary focus is often on
attracting new customers, effective advertising strategies can also contribute to the
development and retention of loyal customer relationships. The Federal Leather
Industry Development Institution has recognized the importance of reaching potential
customers and cultivating a strong brand image through strategic advertising efforts.
Despite not always resulting in immediate purchase decisions, advertising leaves a
lasting impression on consumers, influencing their perceptions of the brand.
Particularly, outdoor advertising has been found to significantly impact brand
awareness, associations, and perceived quality, thereby contributing to the creation of
consumer-based brand equity The study findings underscore the pivotal role of outdoor
advertising in enhancing brand preference and maintaining customer retention.
Through effective outdoor advertising campaigns, the organization has successfully
built a strong company image, influencing consumers' future purchase decisions. In the
context of the textile and ready-wear industry, the capacity of a brand emerges as a
critical factor in fostering customer loyalty and trust. Brands that consistently deliver
on their promises tend to earn the trust and loyalty of customers, thereby increasing
retention rates and frequency of purchases. Thus, the study concludes that there exists
a significant correlation between brand image and customer retention, with brand
image positively influencing customer loyalty and commitment.
By arranging the concluding paragraphs in this manner, we address each objective
sequentially, presenting key findings and insights regarding the effectiveness of
advertising, particularly outdoors advertising, in building brand image and fostering
customer engagement within the Federal Leather Industry Development Institution.
— 33 —
5.2. Recommendations
Based on the findings of the study, it is imperative for the Federal Leather Industry
Development Institution to prioritize relationship marketing strategies aimed at
customer retention. By demonstrating value and fostering interpersonal relationships
with customers, the organization can build trust and loyalty among its customer base.
The responsibility lies with the marketing team to implement these strategies
effectively.
 Moreover, the organization should focus on enhancing the brand image and
strengthening customer relationships to create a lasting impact on customers
and unlock new opportunities for growth. This recommendation directly
addresses the need for proactive measures to elevate the organization's standing
in the market. In line with these recommendations, the company should employ
a comprehensive promotion strategy that utilizes all relevant media channels to
reach its target audience effectively. It is essential for marketers to carefully
assess the potential impact of each media platform on building brand preference
and engaging customers.
 To realize these recommendations, the responsibility falls on the marketing

department of the Federal Leather Industry Development Institution. With
proper planning and execution, these strategies are feasible and can
significantly contribute to the organization's success in the competitive market
landscape. In conclusion, the development of the leather industry hinges on
giving higher emphasis to promotional activities and leveraging new
promotional channels. By promptly adapting to the rapidly evolving global
conditions of competition and commerce, the organization can position itself
for sustained growth and success. The responsible body for implementing these
recommendations is the marketing department of the Federal
LeatherIndustryDevelopmentInstitution
— 34 —
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— 37 —
Appendix A: Questionnaire
ODA BULTUM UNIVERSITY UNDERGRADUATE PROGRAMDEPARTMENT
OF MARKETING MANAGEMENT
A Questionnaire to be filled by Employee of Federal Leather Industry Development

Institution:
Dear Respondents,
I am Matinol Tadele the Award of the Degree of Bachelor of Arts in Marketing

Management at Oda Bultum University. This research is conducted as partial
fulfilment of the requirements for the Award of the Degree of Bachelor of Arts
in Marketing Management and focuses on the impact of outdoor advertising on
company image and its customer retention in case of Ethiopian federal leather
industry development institute. The findings of the study was help Ethiopian
federal leather industry development institute to identify the most important impact
of outdoor advertising on company image and its customer retention that have the
greatest on Assessing the impact of outdoor advertising on company image and its
customer retention in case of Ethiopian federal leather industry development institute
and assess its effort on those variables. The information that you was provide in this
questionnaire was be used for academic purposes only and was be kept strictly
confidential. The reliability and the strength of the findings are exceedingly
dependent on your trustworthy and honest responses.
I thank you in advance for your valuable time and collaboration!
Instructions:- The success of this study greatly depends on the researcher's usage of
this questionnaire to get accurate data. Therefore,
Not need of writing your name.
Put the (√) mark in the box for your response.
Make an effort to respond to the entire question given below.

Thank you in advance for your
cooperation!!
— 38 —
Direction: Please tick in the empty box for your right choices
Part One: General Information
1. Gender:
Female
2. Age
19 - 23 year’s 23 -
27 - 31 year’s above 31 years
3. Marital status:
Married
Divorced
4. Number of children?
1-3
3- above 6
5. Monthly Income in Birr

500 -1000
1000- Above 1500
6. Educational Level
Diploma BA/BSC MA/MSC
PhD Others
7. Name of the department in Ethiopian federal leather industry
development institute
Finance and Procurement
Audit and Inspection
Human Resource
ICT
Engineering Service
Knowledge Marketing
Project Analysis and Testing
— 39 —
8. How long you have worked in Ethiopian federal leather industry development
institute
Less than 2 years 2 - 5 years
6 - 10 years Above 10 years
Part Two : Outdoor Advertising
This part of the questionnaire consist items taken from the impact of outdoor
advertising on company image and its customer retention. The main purpose of the
instrument is to the impact of outdoor advertising on company image and its customer
retention in case of Ethiopian federal leather industry development institute i.e.
outdoor advertising (Media used for advertising, Source factors and Message factors).
To what extent do you agree with the following statements about the impact of
outdoor advertising on company image and its customer retention in your
organization, ranging from strongly disagree to strongly agree? And put “√” mark for
each rating.
Strongly Disagree =1, Disagree =2, Neutral =3, Agree= 4 and Strongly Agree
=5
Table A.1 : Questions relates to the usage of advertising media
Item Rate
No
Media used for Advertising 1 2 3 4 5
Advertising using television as a media influence
1
my brand choice of which university to enroll.
Audio Channels like radio are strong enough to
2
address your product
Newspapers like magazine are well trained to give
3
appropriate on addressing your product
consumers rely on advertisement to make
4
purchase decision
Outdoor (Banner & Billboard) advertising is my
5
choice to decide which university to enroll
— 40 —
Table A.2 : Questions relates to the source factors
Item Rate
No
Source factors 1 2 3 4 5
The objective of organization is to reach out to
1
potential buyers
The customer get interested about your products
2
delivered by your organization
3 The organization promote company image

Advertising campaign endorsed by likeable
4 celebrity influence my brand choice of
which university to enroll.
Table A.3 : Questions relates to the message factors
Item Rate
No
Message factors 1 2 3 4 5
Advertising message which use humor as a focal
1 point significantly influence my brand choice of
which university to enroll
The key objective or purpose of the organization
2
clearly addressed to the customer
The organization advertising message that
3
demonstrate service features and benefits
The organization develop stories and
4
documentaries are available
The organization advertising with quality of the
5
product
The organization fulfilling both the company and
6
the consumers interest
— 41 —
Part Three : Company Image and its Customer Retention
Table A.4 : Question relates to the company image
Item
No
Company Image 1 2 3 4 5
The company image is outstanding and gives me

1
a good impression
2 the company service is really dependable
The company provides adequate support at all

3
time
The image of the company provides good service

4
quality with affordable price
The image helps me to better fit in to my social

5
group
Table A.5 : Questions relates to the customer retention
Item
No
Customer Retention 1 2 3 4 5
The organization Offer a discount for returning

1
customers
The organization Run retention email marketing

2
campaigns
The organization Encourage customers to join a

3
subscription program
4 The organization Create a loyalty program
The brand makes a positive contribution to my

5
business/myself
6 The image perfectly fits the expectation of the
— 42 —
customer
The organization staff is knowledgeable to

7 introduce and explain all services that the
customer want
— 43 —

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ODA BULTUM UNIVERSITY

COLLAGE OF BUSINESS AND MANAGEMENT

THE IMPACT OF OUTDOOR ADVERTISING ON COMPANY IMAGE AND ITS CUSTOMER

PREPARED BY: MATINOL TADELE

ADVISOR: YONAS M. (MSc)

A RESEARCH SUBMITTED TO THE DEPARTMENT OF MARKETING MANAGEMENT IN

Student name Signature Date

Advisor name Signature Date

Outdoor Advertising is any kind of advertisement that is displayed outside, usually in

Key words : Outdoor Advertising, Company Image, Customer Retention

Table 4.3 Frequency distribution on usage of advertising media ………………… 23

Table 4.4 Frequency distribution on source factors ……………………………… 24

Table 4.5 Frequency distribution towards message factors ……………………… 25

Table 4.6 Frequency distribution towards the responses of employees on company’s

Table 4.7 Frequency distribution towards the responses of employees on customers

Table A.1 Questions relates to the usage of advertising media …………………… 40

Table A.2 Questions relates to the source factors ………………………………… 41

Table A.3 Questions relates to the message factors ………………………………. 41

Table A.4 Question relates to the company image ………………………………… 42

Table A.5 Questions relates to the customer retention …………………………… 42

EFLDI ------------------- ETHIOPIA FEDERAL LEATHER INDUSTRY INSTITUTE

IBM ----------------------INTERNATIONAL BUSINESS MACHINES

ODA –-------------------- OUTDOOR ADVERTIC

In marketing, outdoor advertising plays an integral role in creating awareness of

Customer retention is a strategy that aims to build a good relationship between

According to Kokkonen, (2017) Investigating brand awareness through outdoor

According to Wendmu (2014), Marketers in Ethiopia are presently confronted

1.3. Objectives of the Study

1.3.2 Specific Objective

1.4 Research Question

1. What is the impact of outdoor advertising on company image in the case of

1.5 Significance of the study

1.6. Limitations of the Study

1.7. Scope of the study

1.8. Organization of the Study

The first chapter was provide a general introduction of the study

1.9 Definition of Terms

2.2 Concept of Outdoor Advertising

In addition, the strength of outdoor advertising includes geographic flexibility

2.3 Types of Outdoor advertising

This type of advertising involves an advert or display positioned in proximity

The use of point of sale campaigns is also particularly beneficial to brands or

2.3.3 Retail Advertising

Retail advertising often promotes businesses in proximity to the environment in which

This is an effective and popular type of outdoor advertising due to the

2.3.5 Construction Advertising

There is something of a balancing act to strike with construction advertising, as local

2.4 Company Image

2.5 Customer Retention

Customer satisfaction is an important thing that must be maintained by the company. It

2.6 Measurement of Outdoor Advertising

2.7 Review of Empirical Studies

According to Biswas, Hussain, and O'Donnell (2009), celebrity endorsements have a

According to Wendmu (2014) conducted his study on ‘The effect of outdoor

3.2 Research Design

3.3 Research Approach

3.4 Sources of Data

3.4.1 Primary Sources of Data

3.4.2 Secondary Source of Data

3.5 Sample Design

3.5.2 Sampling Technique

3.8 Ethical Consideration

4.2 Socio-demographic Characteristics of Respondents

Socio-demographics are nothing more than characteristics of a population. Generally,