Achievement of loyalty in the online environment through brand acceptability: A case study of the customers of Tejarat Bank

Document Type : Research Paper

Authors

1 student of Shahed University

2 Assistant Professor, Department of Business Administration, Faculty of Humanities, Shahed University, Tehran, Iran

Abstract

In the challenging world today, with companies increasingly competing together, competition is not possible using old marketing philosophies. With the emergence and development of communication technologies, social networks serve as an important type of tools for effective participation in the field of competition. There is an ongoing debate over the activities of brands and companies in social media. Researchers believe that social media offer a unique opportunity for brands. Our goal in this study is to show how brand acceptability is based on social media and how it influences the elements of a customer-centered model (i.e., the relationships among focal customer and brand, product, company, and other customers) and brand loyalty. The statistical population of this research consisted of the customers of Tejarat Bank in Tehran using social networks. A survey-based empirical study was conducted with 386 respondents sampled through Cochran formula and cluster random sampling method. Cronbach's alpha coefficient for each of the variables was over 0.7. The results of structural equation modeling showed that brand acceptability established on social media has positive effects on customer/product, customer/brand, customer/company and customer/other customers relationships, which, in turn, have positive effects on brand trust, and trust and commitment have positive effects on brand loyalty. The purpose of this study is to help banks to provide better-quality services using new marketing methods and increase customer loyalty by attracting them and providing their satisfaction at a low cost.

Keywords

References

  1. Aaker, D. A. (1996). Measuring brand equity across products and markets. California management review, 38(3), 102.
  2. Agustin, C., & Singh, J. (2005). Curvilinear effects of consumer loyalty determinants in relational exchanges. Journal of marketing research, 42(1), 96-108.
  3. Anderson, R. E., & Srinivasan, S. S. (2003). E‐satisfaction and e‐loyalty: A contingency framework. Psychology & marketing, 20(2), 123-138.
  4. Barra, C., Pressgrove, G., & Torres, E. (2018). Trust and commitment in the formation of donor loyalty. The Service Industries Journal, 38(5-6), 360-377.
  5. Bennur, S., & Jin, B. (2017). 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, 108(1), 1-9.  
  6. Brogi, S., Calabrese, A., Campisi, D., Capece, G., Costa, R., & Di Pillo, F. (2013). The effects of online brand communities on brand equity in the luxury fashion industry. International Journal of Engineering Business Management, 5(Godište 2013), 5-32.
  7. Cater, B., Zabkar, V., & Cater, T. (2011). Commitment in marketing research services: two alternative models. Journal of Business Economics and Management, 12 (4), 603-628.
  8. Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty. Journal of Marketing, 65(2), 81-93.
  9. Chaudhuri, A., & Holbrook, M. B. (2002). Product-class effects on brand commitment and brand outcomes: The role of brand trust and brand affect. Journal of Brand Management, 10(1), 33-58.
  10. Cheung, C. M., & Thadani, D. R. (2010). The Effectiveness of Electronic Word-of-Mouth Communication: A Literature Analysis. Paper presented at the Bled eConference.
  11. Choi, Y. G., Ok, C., & Hyun, S. S. (2011). Evaluating relationships among brand experience, brand personality, brand prestige, brand relationship quality, and brand loyalty: an empirical study of coffeehouse brands. Available at: scholarworks. umass, edu (accessed 6/9/2013).
  12. Coelho, P. S., Rita, P., & Santos, Z. R. (2018). On the relationship between consumer-brand identification, brand community, and brand loyalty. Journal of Retailing and Consumer Services, 43, 101-110.             
  13. Davcik, N. S., da Silva, R. V., & Hair, J. F. (2014). Towards a unified theory of brand equity: Conceptualizations, typologies and avenues for future research. Business Research Unit Instituto Universitário de Lisboa, Working Paper 14, 2, 14-02.
  14. De Ruyter, K., Moorman, L., & Lemmink, J. (2001). Antecedents of commitment and trust in customer–supplier relationships in high technology markets. Industrial Marketing Management, 30(3), 271-286.
  15. Dehdashti Shahrokh, Zohreh; Taghavi Fard, Mohammad Taghi; Rostami, Nasrin (2010) A Model for Assessing the Impact of Bank Brand Trust on Customer Commitment and Loyalty. Journal of Olome Modiriat Iran, 88-102. 
  16. Erciş, A., Ünal, S., Candan, F. B., & Yıldırım, H. (2012). The effect of brand satisfaction, trust and brand commitment on loyalty and repurchase intentions. Procedia-Social and Behavioral Sciences, 58, 1395-1404.
  17. Evanschitzky, H., Iyer, G. R., Plassmann, H., Niessing, J., & Meffert, H. (2006). The relative strength of affective commitment in securing loyalty in service relationships. Journal of Business Research, 59(12), 1207-1213.
  18. Fazal-e-Hasan, S. M., Lings, I. N., Mortimer, G., & Neale, L. (2017). How gratitude influences customer word-of-mouth intentions and involvement: the mediating role of affective commitment. Journal of Marketing Theory and Practice, 25(2), 200-211.
  19. Frasat, Farshid; Hasan Gholipour Yasuri, Tahmored; (2015); Modeling the trust of shoppers to online stores through cognitive fuzzy maps; 1; Two scientific research journals; Kavoshhaie Modiriat Bazargani seventh year; No. 13, 73-91.
  20. Fullerton, G. (2003). When does commitment lead to loyalty? Journal of service research, 5(4), 333-344.
  21. Fullerton, G. (2005). The impact of brand commitment on loyalty to retail service brands. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 22(2), 97-110.
  22. Gecti, F., & Zengin, H. (2013). 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, 5(2), 111.
  23. Hajli, N., Shanmugam, M., Papagiannidis, S., Zahay, D., & Richard, M. O. (2017). Branding co-creation with members of online brand communities. Journal of Business Research, 70, 136-144.
  24. Hameed, F. (2013). 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, 5(1), 181-192.
  25. Handayani, P. W. (2016). Analysis on effects of brand community on brand loyalty in the social media: A case study of an online transportation (UBER). Paper presented at the Advanced Computer Science and Information Systems (ICACSIS), 2016 International Conference on.
  26. Hossain, S., & Sakib, M. N. (2016). The Impact of Social Media Marketing on University Students Brand Loyalty. International Journal of Marketing & Business Communication, 5(3).
  27. Hsiao, C.-H., Shen, G. C., & Chao, P.-J. (2015). How does brand misconduct affect the brand–customer relationship? Journal of Business Research, 68(4), 862-866.
  28. Huang, T. K., Liao, C.-Y., Wang, Y.-T., & Lin, K.-Y. (2018). How Does Social Media Interactivity Affect Brand Loyalty? Paper presented at the Proceedings of the 51st Hawaii International Conference on System Sciences.
  29. Jalali, Seyyed Mehdi, Khayri, Bahram; Khadem, Mojgan (2011). Investigating Factors Affecting Brand Loyalty and Intention to Re-purchase in Iranian Consumers; Kavoshhaie Modiriat Bazargani, 69-59.
  30. Jalali, Seyyed Mehdi; Khoshchehera, Zeynab; (2018). Designing and presenting a consumer brand communication model in the mobile Internet market (Case study: Irancell Communications Services Co.); Modiriat Kasbokar; Year 10, Number Twenty; 309-328.
  31. Jin, N., Line, N. D., & Merkebu, J. (2016). The impact of brand prestige on trust, perceived risk, satisfaction, and loyalty in upscale restaurants. Journal of Hospitality Marketing & Management, 25(5), 523-546.
  32. John, L. K., Emrich, O., Gupta, S., & Norton, M. I. (2017). Does “liking” lead to loving? The impact of joining a brand’s social network on marketing outcomes. Journal of marketing research, 54(1), 144-155.
  33. Kabadayi, E. T., & Alan, A. K. (2012). Brand trust and brand affect: Their strategic importance on brand loyalty. Journal of Global Strategic Management, 11(6), 81-88.
  34. Kamboj, S., & Rahman, Z. (2016). The influence of user participation in social media-based brand communities on brand loyalty: age and gender as moderators. Journal of Brand Management, 23(6), 679-700.
  35. Kelly, L., Kerr, G., & Drennan, J. (2010). Avoidance of advertising in social networking sites: The teenage perspective. Journal of interactive advertising, 10(2), 16-27.
  36. Khadim, R. A., Hanan, M. A., Arshad, A., Saleem, N., & Khadim, N. A. (2018). Revisiting Antecedents of Brand Loyalty: Impact of Perceived Social Media Communication with Brand Trust and Brand Equity as Mediators. Academy of Strategic Management Journal, 17(1), 1-13.
  37. Khanlari, Amir; Zamani, Sahra; (2014); The Study of the Relationship between Brand Loyalty and Advertising of Electronic Recommendations in Social Networking; Kavoshhaie Modiriat Bazargani; 6th Year; No. 12 pp. 75-99.
  38. Kim, J., Kwon, E. S., & Kim, B. (2018). Personality structure of brands on social networking sites and its effects on brand affect and trust: evidence of brand anthropomorphization. Asian Journal of Communication, 28(1), 93-113.
  39. Laroche, M., Habibi, M. R., Richard, M.-O., & Sankaranarayanan, R. (2012). The effects of social media based brand communities on brand community markers, value creation practices, brand trust and brand loyalty. Computers in Human Behavior, 28(5), 1755-1767.
  40. Liu, S. Q., & Mattila, A. S. (2015). “I want to help” versus “I am just mad” how affective commitment influences customer feedback decisions. Cornell hospitality quarterly, 56(2), 213-222.
  41. Maurya, U. K., & Mishra, P. (2012). What is a brand? A Perspective on Brand Meaning. European Journal of Business and Management, 4(3), 122-133.
  42. McAlexander, J. H., Schouten, J. W., & Koenig, H. F. (2002). Building brand community. Journal of Marketing, 66(1), 38-54.
  43. Minooei, Qasem; Morad Rezaei Dizkah and Alireza Dadashi Jokandan, (2017). Explain the role of emotional commitment and cognitive trust in the relationship between satisfaction and intention to share knowledge. Case study: Ansar Bank, Guilan Province, Journal of Applied Studies in Management and Development Sciences (2), 24-37.
  44. Møller Jensen, J., & Hansen, T. (2006). An empirical examination of brand loyalty. Journal of Product & Brand Management, 15(7), 442-449.
  45. Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. The journal of marketing 1994 Jul 1:20-38.
  46. Mozafari Vanani, Hamid (2014). The impact of brand community on social networks on brand credibility and loyalty. Master's Thesis, Allameh Tabataba'i University.
  47. Muniz, A. M., & O'guinn, T. C. (2001). Brand community. Journal of consumer research, 27(4), 412-432.
  48. Munnukka, J., Karjaluoto, H., & Tikkanen, A. (2015). Are Facebook brand community members truly loyal to the brand? Computers in Human Behavior, 51, 429-439.
  49. Nambisan, S., & Baron, R. A. (2009). Virtual customer environments: testing a model of voluntary participation in value co‐creation activities. Journal of product innovation management, 26(4), 388-406.
  50. Park, E., Rishika, R., Janakiraman, R., Houston, M. B., & Yoo, B. (2018). Social Dollars in Online Communities: The Effect of Product, User, and Network Characteristics. Journal of Marketing, 82(1), 93-114.
  51. Pérez, A., & Rodriguez del Bosque, I. (2015). Corporate social responsibility and customer loyalty: exploring the role of identification, satisfaction and type of company. Journal of Services Marketing, 29(1), 15-25.
  52. Raineri, A. (2017). Linking human resources practices with performance: the simultaneous mediation of collective affective commitment and human capital. The International Journal of Human Resource Management, 28(22), 3149-3178.
  53. Rather, R., & Sharma, J. (2018). Brand loyalty with hospitality brands: The role of customer brand identification, brand satisfaction and brand commitment.
  54. Resnick, M. (2001). Increasing brand equity with interactive, on-line communities,. Journal of e-Business, 1(2), 1-6.
  55. Saeednia, Hamidreza; Ghahremani, Ameneh; Iran Nejad Parizi, Mehdi; (2016); Impact of Social Media Based Brand on Brand Trust and Brand; Journal of Modiriat brand, Year 4, No. 6, 56-83.
  56. Shafiei Hossein Abadi, Pouya (2013). The study of the effect of social network based on social trust on brand trust and brand loyalty. Master's Degree in Marketing, Islamic Azad University, Central Tehran Branch.
  57. Shergill, G. S., & Li, B. (2005). Internet Banking–An empirical investigation of a trust and loyalty model for New Zealand banks. Journal of Internet commerce, 4(4), 101-118.
  58. Shirin, A., & Puth, G. (2011). Customer satisfaction, brand trust and variety seeking as determinants of brand loyalty. African Journal of Business Management, 5(30), 11899.
  59. Shirkhodayy, Meytham; Shahi, Mahboobeh; Nejat, Soheil; Mahmoudinebasab, Sahar (2017);The Effect of Social Media on Brand Trust and Brand Loyalty in Brand (Case Study: Social Network of Instagram); Journal of Tahghighat Novin Bazaryabi, seventh year, No. 3, 106-224.
  60. Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of marketing Science, 28(1), 150-167.
  61. Sumra, S. H., Manzoor, M. K., Sumra, H. H., & Abbas, M. (2011). The impact of e-banking on the profitability of banks: A study of Pakistani banks. Journal of Public Administration and Governance, 1(1), 31-38.
  62. Tong, X., Su, J., & Xu, Y. (2018). Brand personality and its impact on brand trust and brand commitment: an empirical study of luxury fashion brands. International Journal of Fashion Design, Technology and Education, 11(2), 196-209.
  63. Verhoef, P. C., Franses, P. H., & Hoekstra, J. C. (2002). The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: does age of relationship matter? Journal of the Academy of marketing Science, 30(3), 202-216.
  64. Wang, J. (2015). The relationship between brand association and brand equity in the brand relationship management. International Research Journal of Arts and Social Sciences, 4(1), 1-6.
  65. Wu, J., Fan, S., Wu, M., & Zhao, J. L. (2014). Formation and effect of Social Interactions in Online Brand Community: an Empirical Investigation. Paper presented at the PACIS.
  66. Wu, L. (2017). Relationship building in nation branding: The central role of nation brand commitment. Place Branding and Public Diplomacy, 13(1), 65-80.
  67. Yang, S., Li, Z., Ma, Y., & Chen, X. (2018). Does Electronic Banking Really Improve Bank Performance? Evidence in China. International Journal of Economics and Finance, 10(2), 82.
  68. Zehir, C., Şahin, A., Kitapçı, H., & Özşahin, M. (2011). 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. 24, 1218-1231. 
  69. Zhou, Z., Zhang, Q., Su, C., & Zhou, N. (2012). How do brand communities generate brand relationships? Intermediate mechanisms. Journal of Business Research, 65(7), 890-895.
Journal of Business Administration Researches
Volume 11, Issue 22
February 2020
Pages 305-331

Files

Share

How to cite

Statistics