An evaluation of brand perception in Zimbabwe's commercial banking sector : the case of Agricultural Development Bank of Zimbabwe (2009 - 2012)

Abstract

The general conclusion from literature is that positive perception of a brand results in increased organisational performance by enabling the firm to be easily identifiable, differentiable and strategically positioned in the market. However, this literature on brand perception in Zimbabwe’s commercial banks is generally unavailable, with the majority of the literature biased towards other industries like insurance companies. Literature on brand perception has also been confined to other parts of the world like Malaysia and Iran; therefore the aim of this research was to attempt to fill the research gap by analysing brand perception in the Zimbabwean commercial banking sector. The research information and its application were aimed at benefiting the financial sector, the nation and academics. This research was based on a single case study design of the Agricultural Development Bank of Zimbabwe (Agribank). Empirical data was obtained through face-to-face interviews with Agribank’s Executives. Questionnaires were sent to its Middle Managers and its Customers. The respondents were four Executives, two Middle Managers and five Customers. A qualitative research philosophy was used and the data gathered was analysed through Data Displays in the form of content analytic summary tables. The study found that Agribank’s financial performance was negatively affected by the general public’s negative perception of the bank’s brand since becoming a commercial bank from being the government’s lending institution for the agricultural sector in Zimbabwe, under the name Agricultural Finance Corporation. The general public still percieve the bank to be a farmers’ bank. Management failed to select an appropriate brand name, create a conducive brand image, clarify the bank’s proposition and mobilise resources. As a result, it has suffered losses for the past 6 years whilst their deposits and loans market share are one of the least in the sector. It is recommended that Agribank should mobilise financial resources, train and groom its staff, change its brand name, employ aggressive marketing strategy, change the top management, seek a strategic partner, clarify their mandate and proposition.