Social media, brand loyalty and the banking industry in Colombia
-
Author(s)Heidy RicoLink to ORCID Index: https://orcid.org/0000-0003-4509-6117
,
Mario de la PuenteLink to ORCID Index: https://orcid.org/0000-0002-0783-1267
,
Juan Diego Rios MahechaLink to ORCID Index: https://orcid.org/0000-0003-3288-4499
,
Helen Perez
-
DOIhttp://dx.doi.org/10.21511/im.20(1).2024.03
-
Article InfoVolume 20 2024, Issue #1, pp. 31-39
- 254 Views
-
70 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study analyzed the relationship between retail bank customers’ loyalty and trust, and focused social media marketing in Barranquilla, Colombia. The survey was conducted in-person among customers (528 participants) at various Colombian banks over a period of seven months, from May 2021 to November 2021. The responses on the survey were rated on a 5-point Likert scale, ranging from “Strongly disagree” to “Strongly agree”. The study also incorporated a focus group with 25 participants aged between 34 and 51. Moreover, the research employs factorial analysis to elucidate the underlying correlations between the variables. The discussion was structured around seven pre-determined variables: Personalization, Entertainment, Engagement, Marketing, Word of Mouth, Trust, and Loyalty. The load factors range between 0.583 and 0.914, implying a high correlation between the survey questions and the constructs. The Cronbach’s Alpha values (from 0.753 to 0.996) and the Composite Reliability values (from 0.739 to 0.875) suggest a high level of internal consistency within the constructs. In the realm of social media marketing, the research underscores the pivotal role of trust as an intermediary in cultivating brand loyalty. The study abstains from concentrating on hypothesis testing, instead it illuminates the criticality of understanding the role trust plays in social media marketing. The research results provide valuable insights for future investigations as well as for enhancing service marketing strategies in the banking sector.
Acknowledgments
This study was funded by Education For All Online EU. We thank our participants for their generous contribution to this work.
- Keywords
-
JEL Classification (Paper profile tab)G21, M31, D12
-
References25
-
Tables3
-
Figures0
-
- Table 1. General data on the observed population
- Table 2. Cronbach’s alpha, composite reliability and mean variance
- Table 3. Validation of the hypothesis
-
- Ahmad, N., Naveed, R. T., Scholz, M., Irfan, M., Usman, M., & Ahmad, I. (2021). CSR communication through social media: A litmus test for banking consumers’ loyalty. Sustainability, 13(4), 2319.
- Ajina, A. S. (2019). The role of social media engagement in influencing customer loyalty in Saudi banking industry. International Review of Management and Marketing, 9(3), 87.
- Alberto de la Puente Pacheco, M., de Oro Aguado, C. M., Lugo Arias, E., Rico, H., Cifuentes, D., & Tafur, M. (2022). Effectiveness of model ASEAN meeting in enhancing critical thinking: a Colombia case study. Interactive Learning Environments, 1-23.
- Al-Ghamdi, S. A. A., & Badawi, N. S. (2019). Do corporate social responsibility activities enhance customer satisfaction and customer loyalty? Evidence from the Saudi banking sector. Cogent Business & Management, 6(1), 1662932.
- Althuwaini, S. (2022). The Effect of Social Media Activities on Brand Loyalty for Banks: The Role of Brand Trust. Administrative Sciences, 12(4), 148.
- Angelini, A., Ferretti, P., Ferrante, G., & Graziani, P. (2017). Social media development paths in banks. Journal of Promotion Management, 23(3), 345-358.
- Boateng, S. L. (2019). Online relationship marketing and customer loyalty: a signaling theory perspective. International journal of bank marketing, 37(1), 226-240.
- Cheng, G., Cherian, J., Sial, M. S., Mentel, G., Wan, P., Álvarez-Otero, S., & Saleem, U. (2021). The relationship between csr communication on social media, purchase intention, and e-wom in the banking sector of an emerging economy. Journal of Theoretical and Applied Electronic Commerce Research, 16(4), 1025-1041.
- de la Puente Pacheco, M. A., Guerra Florez, D., de Oro Aguado, C. M., & Llinas Solano, H. (2021). Does Project-Based Learning work in different local contexts? A Colombian Caribbean case study. Educational Review, 73(6), 733-752.
- Elareshi, M., Habes, M., Safori, A., Attar, R. W., Noor Al adwan, M., & Al-Rahmi, W. M. (2023). Understanding the Effects of Social Media Marketing on Customers’ Bank Loyalty: A SEM Approach. Electronics, 12(8), 1822.
- Ferm, L. E. C., & Thaichon, P. (2021). Customer pre-participatory social media drivers and their influence on attitudinal loyalty within the retail banking industry: A multi-group analysis utilizing social exchange theory. Journal of Retailing and Consumer Services, 61, 102584.
- Goyal, P., & Chanda, U. (2017). A Bayesian Network Model on the association between CSR, perceived service quality and customer loyalty in Indian Banking Industry. Sustainable Production and Consumption, 10, 50-65.
- Gupta, S., Nawaz, N., Tripathi, A., Muneer, S., & Ahmad, N. (2021). Using Social Media as a Medium for CSR Communication, to Induce Consumer–Brand Relationship in the Banking Sector of a Developing Economy. Sustainability, 13(7), 3700.
- Hafez, M. (2021). The impact of social media marketing activities on brand equity in the banking sector in Bangladesh: the mediating role of brand love and brand trust. International Journal of Bank Marketing, 39(7), 1353-1376.
- Ibrahim, B., & Aljarah, A. (2023). The era of Instagram expansion: matching social media marketing activities and brand loyalty through customer relationship quality. Journal of Marketing Communications, 29(1), 1-25.
- Landazury, L., Lugo Arias, E., Rico, H., de la Puente, M., & Cifuentes, D. (2022). Diagnosis and Proposal of a Management and Innovation Model in Palm Oil Exporting Companies: The Case of Colombia. The International Trade Journal, 36(6), 560-571.
- Lugo Arias, E. R., de la Puente Pacheco, M. A., & Lugo Arias, J. (2020). An examination of palm oil export competitiveness through price-nominal exchange rate. The International Trade Journal, 34(5), 495-509.
- Monferrer, D., Moliner, M. A., & Estrada, M. (2019). Increasing customer loyalty through customer engagement in the retail banking industry. Spanish Journal of Marketing-ESIC, 23(3), 461-484.
- Muflih, M. (2021). The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry. Journal of Retailing and Consumer Services, 61, 102558.
- Raza, A., Rather, R. A., Iqbal, M. K., & Bhutta, U. S. (2020). An assessment of corporate social responsibility on customer company identification and loyalty in banking industry: a PLS-SEM analysis. Management Research Review, 43(11), 1337-1370.
- Rico, H., Rico, F., de la Puente, M., De Oro, C., & Lugo, E. (2022). SBL Effectiveness in Teaching Entrepreneurship Skills to Young Immigrant Mothers Head of Household in Colombia: An Experimental Study. Social Sciences, 11(4), 148.
- Tarabieh, S. M. (2017). The synergistic impact of social media and traditional media on purchase decisions: The mediating role of brand loyalty. International Review of Management and Marketing, 7(5), 51.
- Wongsansukcharoen, J. (2022). Effect of community relationship management, relationship marketing orientation, customer engagement, and brand trust on brand loyalty: The case of a commercial bank in Thailand. Journal of Retailing and Consumer Services, 64, 102826.
- Zephaniah, C. O., Ogba, I. E., & Izogo, E. E. (2020). Examining the effect of customers’ perception of bank marketing communication on customer loyalty. Scientific African, 8, e00383.
- Zhang, D., Mahmood, A., Ariza-Montes, A., Vega-Muñoz, A., Ahmad, N., Han, H., & Sial, M. S. (2021). Exploring the impact of corporate social responsibility communication through social media on banking customer e-wom and loyalty in times of crisis. International Journal of Environmental Research and Public Health, 18(9), 4739.
-
Social media marketing, functional branding strategy and intentional branding
Mohammad Fahmi Al-Zyoud
doi: http://dx.doi.org/10.21511/ppm.16(3).2018.09
Problems and Perspectives in Management Volume 16, 2018 Issue #3 pp. 102-116 Views: 4342 Downloads: 1997 TO CITE АНОТАЦІЯIt has been suggested that social media marketing may be inclined more towards functional branding than intentional branding. The present study empirically examined the relationship between social media marketing strategies, intentional branding and functional branding with a view to determining where social media marketing strategies are more strongly inclined towards intentional than functional branding. Quantitative data were collected from 133 participants from Jordan marketing departments using questionnaires and analyzed using SPSS. The results of the study confirmed the relationship between social media marketing strategies. However, results showed that social media marketing strategies are more strongly inclined towards intentional branding than functional branding suggesting that social media marketing strategies are oriented towards intentional branding. The study recommends examining the idea of intentional branding and its role in controlling the image of the brand among customers.
-
Factors that affect customer loyalty in small enterprises
Zeleke Worku
doi: http://dx.doi.org/10.21511/im.15(4).2019.07
The study was conducted by collecting the data from 608 customers of migrant retailers working in the retail industry of Pretoria West in South Africa in order to identify socioeconomic factors that affect customer loyalty. Data was collected from eligible respondents by using a pre-tested, validated and standardised questionnaire of study that was self-administered by respondents. The study found that about 69% of customers were loyal to their retailers. About 68% of customers had a favorable attitude towards their retailers. About 68% of retailers used appropriate promotional measures for marketing their goods to potential customers. About 69% of retailers provided their customers with satisfactory quality of services. About 67% of customers were loyal to their retailers’ brands. Factor analysis was used for extracting 3 influential predictors of customer loyalty. These factors were entrepreneurial skills, marketing skills, and selling price. The percentage of variance explained by the 3 extracted factors was equal to 92.58%.
-
A study on the effect of service quality on customer loyalty and corporate performance in financial industry
Problems and Perspectives in Management Volume 15, 2017 Issue #2 (cont. 2) pp. 355-363 Views: 2001 Downloads: 683 TO CITE АНОТАЦІЯSince the government opened to the establishment of new private banks in 1990s, the competition in banking industry has become fierce in Taiwan. Especially, the establishment of financial holding companies after 2000s has resulted in the merge among financial institutions. The competition in banking industry becomes even fiercer. The price war of interest rate among banks gradually shortens the deposit and lending rate difference in banking industry that banks could no longer survive with the traditional business of deposit and lending rate differences. Banks have to attract customers with different service quality, satisfy customer needs, and create new profits for banking industry. Generally speaking, service quality is related to customer satisfaction after receiving service, and satisfaction becomes the internal assessment indicator of financial industry for customers. A lot of excellent foreign businesses or national financial institutions present brilliant competitiveness in the field of finance by the specialty and service quality. Taking Land Bank of Taiwan as the research subject, this study aims to discuss the effect of service quality on customer loyalty and corporate performance in financial industry.
It is discovered in this study that an enterprise enhancing the service quality through the mediation effect of customer loyalty could effectively promote the corporate performance. For this reason, the relationship between customer loyalty and service quality, corporate performance are established in this study, and the results of the analysis could be the reference for banking industry in Taiwan.
