Investigating the impact of social marketing on customer loyalty - a case study of Qarz Alhasna Mehr Bank in Ardabil province

Dissertation for Master's Degree in Executive Management

Marketing Orientation

Abstract

The purpose of this research is to investigate the effect of social marketing on the loyalty of customers of Qarz Al-Hasneh Mehr Iran Bank branches in Ardabil province. The current research is survey in terms of method and practical in terms of purpose. The statistical population of this research includes the customers of Qarz Al Hasaneh Mehr Bank of Iran in the branches of Ardabil province. A simple random sampling method was used for sampling. Using Cochran's formula, the sample size is equal to 384. Descriptive and inferential statistical methods have been used to analyze the data collected through the questionnaire. And in order to test the research hypotheses, simple and simple multiple regression models have been used. The findings of the research show that the dimensions of social marketing have a significant correlation with the loyalty of customers of Qarz Al-Hasneh Mehr Bank of Iran in the branches of Ardabil province. The results of the simultaneous regression analysis show that the favorable social behavior of employees, customer orientation, the nature of services and the social marketing mix have been able to explain a total of 0.15% of the variance of customer loyalty, and according to each of the regression coefficients, the constant value and the significance level of each of the independent variables, the results show that the significance level of the regression coefficients of the favorable social behavior of employees and the social marketing mix is ??less than 5%. Therefore, these variables are significant at the 95% confidence level. To compare the two variables of social behavior of employees and social marketing mix, considering that the standard coefficient of marketing mix (0.28) is higher than the standard coefficients of social behavior of employees (0.15), so social marketing mix has a greater effect on changes in the dependent variable (customer loyalty).                                                                                                       

Key words: social marketing, customer loyalty, customer orientation, loan.

Chapter 1

Generalities of the research

Introduction:

Today, the main focus of modern marketing thought and practice, instead of looking for customers for manufactured products, is to provide satisfaction and create value for the customer in order to be attracted to the manufactured product or the service that can be provided. Social marketing[1] is a field and realm of new science that tries to achieve social goals and objectives by using commercial marketing techniques[2]. Based on the concept of social marketing, the marketing managers of organizations must consider important factors such as the demands of consumers and the interests of society in the short and long term in determining their marketing strategies and policies. The philosophical dimension of the concept of social marketing emphasizes that the main goal of organizations' decisions is to satisfy customers and meet their needs and wants. But banks have a different interpretation of this issue. Their goal is to meet the needs of customers the way they want, not the way customers prefer, and they base their marketing strategies on this misinterpretation. Banks can create a suitable image of the bank in the minds of customers in various ways, such as following the Green Bank strategy [3], commitment to social and human moral principles, active participation in charitable and humanitarian activities. This can be considered as a principle in advertising and marketing mechanisms of banks. The time has come for banks to understand the true concept of marketing principles and emphasize the necessity of marketing, including social marketing, as the most important means in achieving goals. Creating loyalty in customers, especially banking customers, is a concept that has received more and more attention in today's businesses, considering that loyal customers have become the main component of banks' success. Considering that the centrality of social marketing is to pay attention to the customer, banks can be aware of the needs and demands of customers by using social marketing correctly and provide services in line with the needs and demands of their customers. If the customers clearly feel that the goal of bank managers is not only the interests and increase of shareholders' profits, and on the other hand, bank managers show their customers in practice that in addition to the interests of the bank and shareholders, they also pay attention to the long-term and short-term interests of the society.In addition to maintaining customers and gaining their loyalty, they will be able to attract more customers, but if banks are not able to show their adherence to social responsibilities, they will lose an important part of their work and the benefits of social marketing and its effect on strengthening their brand. By knowing this issue and its importance, banks will be able to achieve a strong brand name and a superior position among their competitors along with being customer-oriented and increasing the satisfaction and loyalty of their customers through social marketing, and gain more profit and more credibility.

Statement of the basic research problem:

Today, the main focus of modern marketing thought and practice, instead of looking for customers for manufactured products, is to provide satisfaction and create value for the customer rather than towards the manufactured product or The service that can be provided is attracted. (Cutler and Armstrong, 1379) [4]. Kotler (1971) defines social marketing as the design, intervention and control of programs to increase the acceptability of a social idea or practice in an audience group (Khila, 2007). The goal in social marketing is to pay attention to the needs and demands of the audience group with the help of the principles and techniques of commercial marketing, and by reducing the obstacles and encouraging them to perform a social behavior, the desired behavior will become common among them. In simpler words, social marketing is the application of marketing techniques in social issues to motivate people to perform actions or behaviors that are ultimately beneficial for them (Shams and Rashidian, 2015). In the approach of social marketing, the marketing strategy should be adjusted in such a way that it provides or improves the happiness of the consumer and the society. And it establishes a balance between three main issues: the benefit of the company, the customer's wishes and the interest of the society (Kotler and Armstrong, 2009). Considering that the focus of social marketing is to pay attention to the customer, banks can be aware of the customers' wants and needs with the correct use of social marketing, and provide services in line with the needs and Show customer requests. If the customers clearly feel that the goal of the bank managers is not only the interests and increase of shareholders' profits, and on the other hand, the bank managers show their customers in practice that in addition to the interests of the bank and shareholders, they also pay attention to the long-term and short-term interests of the society. In addition to maintaining customers and gaining their loyalty, they will be able to attract more customers, but if banks are not able to show their adherence to social responsibilities, they will lose an important part of their work and the benefits of social marketing and its effect on strengthening the brand (Soleimani Beshli, 2018).     

       Today, with the increasing competition in the field of banking and the expansion of banks' attention to the issue of customer loyalty in this turbulent field, it is important to study and examine the factors that can influence this, and considering the prominent role of Islamic banking in increasing the level of social welfare and developing social justice, it is safe to say that Iran's Qarz Al-Hasneh Mehr Bank uses new marketing methods such as social marketing, which is the main priority for obtaining personal or organizational profits and benefits. It is emphasized as the most important means to achieve goals. Although it may not be as expected due to some limitations. But it seems that in the future, if Karz Al-Hasneh Mehr Bank of Iran understands the demands and needs of its customers through social marketing and pays attention to the long-term and short-term interests of the society in addition to the interests of the bank and shareholders, it can achieve a superior position and gain more credit among its competitors. Use commercial marketing techniques to achieve social goals and objectives. Based on the concept of social marketing, marketing managers of organizations must consider important factors such as consumer demands and the interests of society in the short and long term in determining their marketing strategies and policies. Despite the fact that this field is very new compared to commercial marketing, but its role and importance in social development has caused it to be highly appreciated and favored by the public (Niyazi and Montazeri, 2011).