Author Email: email@example.com
In today’s challenging environments where businesses and firms are increasingly competing with each other, they cannot compete with outdated marketing philosophy in this environment. The emergence and expansion of communication technologies has made social networks one of the most important tools for effective participation in the field of competition. This advancement forces firms to apply their efforts to improve their position in the minds of the customer by eliminating location and time problems. The present paper aims to investigate the impact of brand community in social networks on customer loyalty in the Tejarat Bank. This paper examines the impact of brand community in social networks on customer loyalty to the brand in the Tejarat Bank. The data were collected using a survey method of questionnaire distribution among 301 customers of Tejarat Bank in 20 branches of Tehran city and it has been analyzed using partial least squares method. The results of the findings show that community in social networks has a positive and significant effect on customer loyalty to brand in Tejarat Bank, but the effect of satisfaction on behavioral loyalty has not been confirmed. The purpose of the present research is to help banks in providing better and high quality services by using new marketing methods and increasing customer loyalty by supplying their consent and keep absorbed customers at a low cost.
The banking system has a very heavy responsibility in a market-driven economy and is one of the most important components of the country’s economy. The growth and flourishing of the economic structure of the countries is closely linked to the working practices of the banking institutions. Optimum banking activities and the effective use of marketing tools to realize their goals; including exploiting capital and equipping it with various economic activities and the general state of the economy are very effective. Since the 1960s, many Iranian banks have sought to implement marketing principles to a limited extent. However, considering the relatively small profits of the banking system in Iran and the inefficiency and effectiveness of the banks’ branches in the field of marketing and relations with customers, Iranian banks are heavily in need of marketing, and the banking system in Iran requires a change in this regard. Now social networks are not just a place to connect with friends, but an online space for fans of brands that interact with each other and also become familiar with brands. Given this potential, social networks are a place to build their own brand pages to attract and retain customers and increase their brand loyalty(1). Brand loyalty is synonymous with concepts and terms such as “repurchase “, “preference,” “commitment,” and “following(2). According to Divot and others (2003), loyalty has a sense of affection and customer dependency on the organization (quoted by(3)). Brand loyalty means the repetition of shopping which the reason is psychological behavior, in other words, repurchasing is not an optional reaction but a result of psychological, emotional and normative factors (4)
- Kamboj S, Rahman Z. The influence of user participation in social media-based brand communities on brand loyalty: age and gender as moderators. Journal of Brand Management. 2016;23(6):679-700.
- Zehir C, Şahin A, Kitapçı H, Özşahin M. The effects of brand communication and service quality in building brand loyalty through brand trust; the empirical research on global brands. Procedia-Social and Behavioral Sciences. 2011;24:1218-31.
- Shirin A, Puth G. Customer satisfaction, brand trust and variety seeking as determinants of brand loyalty. African Journal of Business Management. 2011;5(30):11899.
- Møller Jensen J, Hansen T. An empirical examination of brand loyalty. Journal of Product & Brand Management. 2006;15(7):442-9.
- Geçti F, Zengin H. The relationship between brand trust, brand affect, attitudinal loyalty and behavioral loyalty: A field study towards sports shoe consumers in Turkey. International Journal of Marketing Studies. 2013;5(2):111.
- Chaudhuri A, Holbrook MB. The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of marketing. 2001;65(2):81-93.
- Kabadayi ET, Alan AK. Brand trust and brand affect: Their strategic importance on brand loyalty. Journal of Global Strategic Management. 2012;11(6):81-8.
- Handayani PW, editor Analysis on effects of brand community on brand loyalty in the social media: A case study of an online transportation (UBER). Advanced Computer Science and Information Systems (ICACSIS), 2016 International Conference on; 2016: IEEE.
- Maurya UK, Mishra P. What is a brand? A Perspective on Brand Meaning. European Journal of Business and Management. 2012;4(3):122-33.
- Wang J. The relationship between brand association and brand equity in the brand relationship management. International Research Journal of Arts and social Science. 2015;1(4):1-6.
- Murtiasih S, Siringoringo H. How word of mouth influence brand equity for automotive products in Indonesia. Procedia-Social and Behavioral Sciences. 2013;81:40-4.
- Işık F. Comparison of the use of social network in education between North and South Cyprus. Procedia-Social and Behavioral Sciences. 2013;103:210-9.
- Othman MS, Suhaimi SM, Yusuf LM, Yusof N, Mohamad N. An analysis of social network categories: social learning and social friendship. Procedia-Social and Behavioral Sciences. 2012;56:441-7.
- Tadeu P, Lucas J. Social network in education: a mathematical pilot test. Procedia-Social and Behavioral Sciences. 2013;106:2409-18.
- Bicen H. Determination of University Students’ Reasons Ofusing Social Networking Sites in their Daily Life. Procedia-Social and Behavioral Sciences. 2015;190:519-22.
- Cao J, Knotts T, Xu J, Chau M. Word of mouth marketing through online social networks. AMCIS 2009 Proceedings. 2009:291.
- Laud G, Mulye R, Rahman K, editors. Use of embedded brand community networks for brand co-creation. ANZMAC 2011; 2011: Australian and New Zealand Marketing Academy.
- Jha B. . Social Media, Brand Community, User generated comments and Brand Loyalty: Study of Indian Youth. Journal of Business and Management. 2014;16(10):122-31.
- Hossain S, Sakib MN. The Impact of Social Media Marketing on University Students’ Brand Loyalty. International Journal of Marketing & Business Communication. 2016;5(3).
- Hameed F. The effect of advertising spending on brand loyalty mediated by store image, perceived quality and customer satisfaction: A case of hypermarkets. Asian Journal of Business Management. 2013;5(1):181-92.
- Davcik NS, da Silva RV, HAIR J. Towards a unified theory of brand equity: Conceptualizations, typologies and avenues for future research. Business Research Unit Instituto Universitário de Lisboa, Working Paper 14. 2014;2:14-02.
- Munnukka J, Karjaluoto H, Tikkanen A. Are Facebook brand community members truly loyal to the brand? Computers in Human Behavior. 2015;51:429-39.
- Resnick M. Increasing brand equity with interactive, on-line communities. Journal of E-Business. 2001;1(2):1-6.
- McAlexander JH, Schouten JW, Koenig HF. Building brand community. Journal of marketing. 2002;66(1):38-54.
- Muniz AM, O’guinn TC. Brand community. Journal of consumer research. 2001;27(4):412-32.
- Nambisan S, Baron RA. Virtual customer environments: testing a model of voluntary participation in value co‐creation activities. Journal of product innovation management. 2009;26(4):388-406.
- Zhou Z, Zhang Q, Su C, Zhou N. How do brand communities generate brand relationships? Intermediate mechanisms. Journal of Business Research. 2012;65(7):890-5.
- Füller J, von Hippel EA. Costless creation of strong brands by user communities: Implications for producer-owned brands. 2008.
- Wu J, Fan S, Wu M, Zhao JL, editors. Formation and effect of Social Interactions in Online Brand Community: an Empirical Investigation. PACIS; 2014.
- Agustin C, Singh J. Curvilinear effects of consumer loyalty determinants in relational exchanges. Journal of marketing research. 2005;42(1):96-108.
- Laroche M, Habibi MR, Richard M-O, Sankaranarayanan R. The effects of social media based brand communities on brand community markers, value creation practices, brand trust and brand loyalty. Computers in Human Behavior. 2012;28(5):1755-67.
- Cheung CM, Thadani DR. The impact of electronic word-of-mouth communication: A literature analysis and integrative model. Decision support systems. 2012;54(1):461-70.
- Deng Z, Lu Y, Wei KK, Zhang J. Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International journal of information management. 2010;30(4):289-300.
- Brogi S, Calabrese A, Campisi D, Capece G, Costa R, Di Pillo F. The effects of online brand communities on brand equity in the luxury fashion industry. International Journal of Engineering Business Management. 2013;5:32.
- Matzler K, Bidmon S, Grabner-Kräuter S. Individual determinants of brand affect: the role of the personality traits of extraversion and openness to experience. Journal of Product & Brand Management. 2006;15(7):427-34.
- Taylor SA, Celuch K, Goodwin S. The importance of brand equity to customer loyalty. Journal of product & brand management. 2004;13(4):217-27.
- Jahangir N, Parvez, N., Bhattacharjee, D., & Ahamed, K. K. . The relationship between brand affect. 2009.
- Singh J, Sirdeshmukh D. Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of marketing Science. 2000;28(1):150-67.
- Choi YG, Ok C, Hyun SS. Evaluating relationships among brand experience, brand personality, brand prestige, brand relationship quality, and brand loyalty: an empirical study of coffeehouse brands. 2011.
- Bolton RN. A dynamic model of the duration of the customer’s relationship with a continuous service provider: The role of satisfaction. Marketing science. 1998;17(1):45-65.
- Wilson A, Persson N. The Interplay Between Brand Loyalty and Brand Satisfaction: A qualitative study of consumers in the clothing industry. 2017.
- Bennur S, Jin B. The mediating role of brand trust and affect in clothing brand loyalty formation: a cross-cultural examination of US and India. The Journal of The Textile Institute. 2017;108(1):1-9.
- Anderson RE, Srinivasan SS. E‐satisfaction and e‐loyalty: A contingency framework. Psychology & marketing. 2003;20(2):123-38.
- Jin N, Line ND, Merkebu J. The impact of brand prestige on trust, perceived risk, satisfaction, and loyalty in upscale restaurants. Journal of Hospitality Marketing & Management. 2016;25(5):523-46.
- Pérez A, Rodriguez del Bosque I. Corporate social responsibility and customer loyalty: exploring the role of identification, satisfaction and type of company. Journal of Services Marketing. 2015;29(1):15-25.
273 total views, 1 views today