UWU Conference Proceedings - UWUCP

Permanent URI for this community

https://erepo.lib.uwu.ac.lk/handle/123456789/18

Browse

Browsing UWU Conference Proceedings - UWUCP by Subject "Accounts"

Now showing 1 - 2 of 2
  • No Thumbnail Available
    Item
    Effectiveness of Promotional Methods for Recently Introduced Savings Accounts with Special Reference to Commercial Banks in Badulla Urban Area
    (Uva Wellassa University of Sri Lanka, 2010) Abeygunawardene, S.H.D.K.; Fernando, P.I.N.
    Modern business environment is highly dynamic and competitive. Service sector organizations are considered as one of the highly competitive sectors within the economy. To face this competition, commercial banks introduce savings accounts ceaselessly. Even though banks spend millions on promotional/advertising activities, the number of customers attracted to these accounts is in comparatively at a lower level. This research focused on identifying the most effective promotional method for recently introduced savings accounts in commercial banks which operated their branches in Badulla urban area. Both primary and secondary data were used for data collection. One hundred respondents were selected as the sample using stratified sampling method from seven commercial banks to measure the effectiveness of eight promotional methods used by banks. The study reveals that there is a positive relationship between promotional/advertising cost and attractiveness of customers for recently introduced savings accounts (0.507). The P-Value of 0.245 shows that banks are unable to attract considerable number of customers according to the cost of promotional/advertising activities for recently introduced savings accounts. According to the study, the most effective promotional methods are word of mouth marketing and personal selling. The other six promotional methods have less effectiveness and radio advertisements have no effectiveness in attracting customers for recently introduced savings accounts. The study recommends that the banks in Badulla urban area must spend heavily on the most effective promotional methods, word of mouth marketing and personal selling to attract more potential customers. To practice most effective promotional methods, banks must consider on enhancing the service given by bank officers to delight the customers. The banks can use training and development programs regarding customer relationship management and other motivational methods such as salary increments and job security to bank officers in order to make them satisfied. Key words: Savings accounts, Promotional cost, Promotional methods
  • No Thumbnail Available
    Item
    Factors affecting to neglect formal financing sources by the SMEs; with special reference to Badulla district
    (Uva Wellassa University of Sri Lanka, 2015) Karunarathna, T.A.O.S.; Fernando, P.I.N.
    In terms of need for finance, the International Finance Corporation IFC defines an SME as ‘Small Enterprises’ with loan size of $10,000 to $100,000 and ‘Medium Enterprise’ with loan sizes of $100,000 to $1 million (UNEP, 2007). According to the Central Bank of Sri Lanka (1998), the cottage and Small Scale Industries (CSSI) sector plays an important role in economic development through creation of employment opportunities, the mobilization of domestic savings, poverty alleviation, income distribution, regional development, training of workers and entrepreneurs, creating an economic environment in which large firms flourish and contribute to export earnings. According to Kihimbo et al.,(2012), SMEs financing constraints are attributed by high transaction costs, high collateral requirements and lack of guarantee credit instruments, deficiencies in legal systems, regulatory and policy problems and asymmetric information. In order to operate efficiently, SMEs require easy access to short and long term capital. In general terms, it appears that lending to SMEs is seen as a high risk business since most of these enterprises lack collateral. Since, that is a major obstacle faced by SMEs, may be badly affected on the country’s economy as well. In accordance with Wahab and Hassan (2012), despite the importance of (SMEs) in the national economy in general, they face many obstacles that hinder their development; one of which is evident in the aspect of financial access. The primary objective is to identify the relationship of the formal financing dimensions that influence to the SME owners’ formal financing decision. Secondary objectives are to determine the impact of the formal financing dimensions on formal financing decision of SME owners and to determine the most and least important formal financing dimension factor that influence to the SME owners’ formal financing decision. Methodology All the SME owners in Badulla district were considered as the population of the study who are registered in Badulla District under the Chamber of Commerce and Industry of Uva Province. Therefore, the sample of 60 SME owners is selected from metropolitan and rural areas, who are doing their businesses in Badulla district. The sample has been selected using stratified sampling method. Data was collected by using a structured questionnaire. In addition, Cronbach Alpha reliability test was employed to assess the validity of the questionnaire and 0.822 of Conbrach’s alpha value indicated that the internal reliability and validity of questionnaire was acceptable since that these levels are exceeding the general acceptable level. Hence, it was suitable for the further processing. Data were analyzed using descriptive statistics, correlation analysis and multiple linear regressions.