Abstract
Customer loyalty is important for profitability of any business including banking industry. This study aims to investigate the effect of social network marketing on customer profitability in banks and to design a customer profitability model in the field of marketing. A deductive approach is used to develop the hypotheses based on existing theory. This study is a descriptive research and uses the survey method. The sample is collected from 200 potential customers from Melli banks in Hamadan Province, Iran. The simple random sampling technique is selected for this study. The data have been analyzed, using the structural equation modeling. The conclusion is that electronic word-of-mouth marketing, online brand community, online advertising, and customer brand loyalty are influencing factors on the bank customers’ profitability.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Azizi, S. M., Soroush, A., & Khatony, A. (2019). The relationship between social networking addiction and academic performance in Iranian students of medical sciences: A cross-sectional study. BMC Psychology, 7, 1–8. Article number: 28. https://bmcpsychology.biomedcentral.com/articles/10.1186/s40359-019-0305-0
Balakrishnan, B. K., Dahnil, M. I., & Yi, W. J. (2014). The impact of social media marketing medium toward purchase intention and brand loyalty among generation Y. Procedia-Social and Behavioral Sciences, 148, 177–185.
Barkhuus, L., & Tashiro, J. (2010). Student socialization in the age of Facebook. In Proceedings of the 28th International Conference on Human Factors in Computing Systems (pp. 133–142).
Becker, K., Nobre, H., & Vijay, K. (2013). Monitoring and protecting company and brand reputation on social networks: When sites are not enough. Global Business and Economics Review, 15(2/3), 293–230.
Berman, S. J., Abraham, S., Battino, B., Shipnuck, L., & Neus, A. (2007). Navigating the media divide: Innovating and enabling new business models (No. G510-6579-03). IBM Global Business Services - IBM Institute for Business Value.
Brodie, R. J., Ilic, A., Juric, B., & Hollebeek, L. (2013). Consumer engagement in a virtual brand community: An exploratory analysis. Journal of Business Research, 66(8), 105–114.
Cadima, R., Ojeda, J., & Monguet, J. M. (2012). Social networks and performance in distributed learning communities. Educational Technology and Society, 15(4), 296–304.
Cakim, I. M. (2010). Implementing word of mouth marketing. Wiley.
Chen, F. Y., Chang, Y. H., & Lin, Y. H. (2012). Customer perceptions of airline social responsibility and its effect on loyalty. Journal of Air Transport Management, 20, 49–51.
Cooper, R., & Kaplanc, R. S. (1991). Profit priorities from activity-based costing. Harvard Business Review, 69, 130–135.
Duhan, D. F., Johnson, S. D., Wilcox, J. B., & Harrell, G. D. (1997). Influence on consumer use of word-of-mouth recommendation sources. Journal of the Academy of Marketing Science, 25(4), 283–295.
Esmaeilpour, M., Bahraini, M., & Gharihi, M. (2013). Provide a hierarchical model to examine the role of online advertising in the shopping process of customers. In Second National Conference of Modern Management Sciences, Golestan Province, Gorgan.
Fensen, F. M., & Hansen, T. (2006). An empirical examination of brand loyalty. Journal of Product & Brand Management, 15(7), 442–449.
Garland, R. (2002). What influences customer profitability? Service–Profit Chain. Non-financial drivers of customer profitability in personal retail Banking. Journal of Targeting, Measurement and Analysis for Marketing, 10, 233–248.
Heitger, L. E., & Heitger, D. (2008). Jamestown electric supply company: Assessing customer profitability. Issues in Accounting Education, 23, 261–280.
Hollebeek, L. (2011). Exploring customer brand engagement: Definition and themes. Journal of Strategic Marketing, 19(7), 555–573.
Huang, C.-Y., Chiou, C.-C., Wu, T.-H., & Yang, S.-C. (2015). An integrated DEA-MODM methodology for portfolio optimization. Operational Research, 15(1), 115–136. [5].
Jafari, H. (2017). Social media usage in iran has tripled. https://techrasa.com/2017/05/23/social-media-usage-iran-tripled/.2018
Khraim, H. S., & Alkrableih, A. A. (2015). The effect of using pay per click advertisement on online advertisement effectiveness and attracting customers in E-marketing companies in Jordan. International Journal of Marketing Studies, 7(1), 180–199.
Kircova, I., & Cinar, D. (2015). Digital advertising practices and its impacts on students: An application in the public. In Handbook of Research on Effective Advertising Strategies in the Social Media Age (pp. 388–407).
Madaiah, M., Seshaiyengar, C. T., Suresh, P., Munipapanna, S., & Sonnappa, S. D. (2017). Study to assess the effects of social networking sites on medical college students. International Journal Of Community Medicine and Public Health, 3(5), 1204–1208.
McAlexander, J. H., Schouten, W. J., & Koening, F. H. (2002). Building brand community. Journal of Marketing, 66(1), 38–54.
Mitussis, D., O'Malley, L., & Patterson, M. (2006). Mapping the reengagement of CRM with relationship marketing. European Journal of Marketing, 40, 572–589.
Mulhern, F. J. (2010). Customer profitability analysis: Measurement. Concentration, and Research Directions, Journal of Interactive Marketing, 13, 25–40.
Nam, J., Ekinci, Y., & Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction. Annals of Tourism Research, 38(3), 1009–1030.
Nielsen. (2011). State of the media: the social media report. Nielsen Company. http://blog.nielsen.com/nielsenwire/social/
Niraj, R., Foster, G., Gupta, M. R., & Narasimhan, C. (2008). Understanding customer level profitability: implications of satisfaction programs. Journal of Business & Industrial Marketing, 23/7, 454–463.
Osanlou, B., & Khoddami, S. (2016). The survey of the effect of brand image on customer profitability for organization based on service quality and perceived value of customer. Journal of Executive Management, 14(7), 14–32.
Pan, Y., Sheng, S., & Xie, F. T. (2012). Antecedents of customer loyalty: An empirical synthesis and reexamination. Journal of Retailing and Consumer Services, 19, 150–158.
Relling, M., Schnittka, O., Sattler, H., & Johnen, M. (2015). Each can help or hurt: negative and positive word of mouth in social network brand communities. International Journal of Research in Marketing, 33(1), 42–58.
Reichheld, F., & Sasser, J. R. (1990). Zero defections, quality comes to services. Harvard Business Review, 65(5), 105–111.
Ritter, T., & Walter, A. (2012). More is not always better: The impact of relationship functions on customer-perceived relationship value. Industrial Marketing Management, 41, 136–144.
Silverman, G. (2001). The secrets of word-of-mouth marketing. AMACOM.
Smith, M., & Dikolli, S. (1995). Customer profitability analysis: An activity-based costing approach. Managerial Auditing Journal, 10, 3–7.
Stephen, W. L., & Ronald, E. G. B. (2008). Electronic word-of-mouth in hospitality and tourism management. Journal of Tourism Management, 29, 458–468.
Wang, Q., Chen, W., & Liang, Y. (2011). The effects of social media on college students. MBA Student Scholarship, 5(13), 1548–1379.
Weeden, S., Cooke, B., & McVey, M. (2013). Underage children and social networking. Journal of Research on Technology in Education, 45(3), 249262.
Word of Mouth Marketing Association. (2017). Wommapedia – everything to know about word of mouth marketing, http://www.wommapedia.org
Xiang, Z., & Gretzel, U. (2010). Role of social media in online travel information search. Tourism Management, 31, 179–188.
Yeh, Y. H., & Choi, S. M. (2011). MINI-lovers, maxi-mouths: An investigation of antecedents to eWOM intention among brand community members. Journal of Marketing Communications, 17(3), 145–162.
Zhang, Q., Zhou, Z., Chenting, S., & Zhou, N. (2011). How do brand communities generate brand relationships? Intermediate mechanisms. Journal of Business Research, 19(7), 117–131.
Zeithaml, V. A. (2000). Service quality, profitability, and the economic worth of customers: What we know and what we need to learn. Journal of the Academy of Marketing Science, 28(1), 67–85.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Yarahmadi, F., Yarahmadi, F., Nader, B.S. (2022). Investigating the Impact of Social Network Marketing on the Bank Customers’ Profitability. In: Faghih, N., Forouharfar, A. (eds) Contextual Strategic Entrepreneurship . Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-86028-8_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-86028-8_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-86027-1
Online ISBN: 978-3-030-86028-8
eBook Packages: Business and ManagementBusiness and Management (R0)