Impact of Brand Community in Social Networks on Customer Loyalty to Brand (Case Study: Customers of the Tejarat Bank)

Author Name(s): Fatemeh Goli, *Naser Yazdani
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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environments where businesses and firms are increasingly competing with each other, they cannot compete with outdated marketing philosophy in this environment.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)


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