The Effect of Promotion Practices on Consumer’s Purchase Decision: The Case of Some Selected Real Estates in Addis Ababa, Ethiopia

Abstract

This study is intended to measure the effect of the five promotional
elements such as sales promotion, personal selling, direct marketing,
advertising, and public relation practiced in the real estate industry on
the purchase decision of customers. A combination of descriptive and
explanatory research design was used with a quantitative research
approach. Primary data were collected using survey questionnaire
distributed to 322 sampled respondents. Data were subjected to
inferential statistical methods supported with SPSS software. The
results of the analysis revealed that all the variables (such as sales
promotion, personal selling, direct marketing, advertising, and public
relation) have direct correlation with the customer’s purchase decision
at p<0.05. All the variables jointly explained purchase decision of real
estate consumers by 53.2%. The regression’s result showed that, except
advertisement practice, the other four promotional elements were
statistically significant in affecting purchase decision of consumers.