Impact of Advertising Effectiveness on Behavioral Brand Loyalty with Mediating Effect of Self-Brand Connection: Evidence from the Islamic Banking Sector in Pakistan

Abstract

This study is aimed at building the relationship between advertisement effectiveness and behavioral brand loyalty by investigating the mediating impact of self-brand connection. The Islamic banking sector has been selected for this study in which, top 3 full-fledged Islamic banks and top 3 banks with Islamic banking branches in Pakistan have been selected through convenient sampling,. It is a time-lagged study and data were collected through reliable and valid questionnaires for T1, T2, and T3, respectively across Pakistan from Islamic Banking Branches (IBBs). The respondents were the costumers using the services of IBBs. The results show that advertisement effectiveness and self-brand connection have a strong positive relationship with the behavioral brand loyalty. Results also indicate that the self-brand connection mediates the relationship between advertisement effectiveness and behavioral brand loyalty. Thus, it indicates that self-brand connection is an important factor that can enable the consumers to evaluate the corporation's products or services by the expression of behavioral brand loyalty and distinguish them from those offered by the competitors. In addition, a number of implications with regard to theory and managerial practice have been suggested.

Consumer shift behavior from conventional to Islamic banking: decision-making analysis through AHP

“…The respondents of this study are approached through convenient sampling technique, a method of non-probability sampling. This technique is used in similar studied by (Ahmed and Barikzai, 2016;Akhtar et al, 2016;Ezeh and Nkamnebe, 2019a;Nemati et al, 2018). The data was collected through self-administered questionnaire based on AHP scale; this technique is widely used in previous studies to collect data of respondents (Abduh, 2020;Ahmed and Barikzai, 2016;al Dugaishem and Khawaja, 2018;Ali et al, 2018;Amin and Hamid, 2018;Dusuki and Abdullah, 2007;Echchabi and Olaniyi, 2012;Ezeh and Nkamnebe, 2019b;Ireland, 2018;Ltifi et al, 2016;Maulana et al, 2018;Nemati et al, 2018;Saiti et al, 2019;Warsame and Ireri, 2018).…”

“…The other factors that the prior studies have evident the influence on customer selection include friendliness of bank staff (Ahmad and Haron, 2002; Shafie et al , 2004; Abdul Rehman and Masood, 2012), marketing and advertisement (Amin, 2008; Ahmad et al , 2011; Amin, 2012; Ismail et al , 2014; Lujja et al , 2018; Nemati et al , 2018; Metawa and Almossawi, 1998; Erol and Erdener Kaynak, 1990), pricing (Gerrard and Barton Cunningham, 1997; Metawa and Almossawi, 1998; Ahmad and Haron, 2002; Amin, 2008; Hamid and Masood, 2011; Dusuki and Abdullah, 2007; Al-Ajmi et al , 2009; Amin et al , 2009). Moreover, reputation of bank image of financial institution creates greatest impact on attitude of a customer to adopt Islamic banking (Ahmad and Haron, 2002; Al-Ajmi et al , 2009; Haque et al , 2009; Hamid and Masood, 2011; Abdul Rehman and Masood, 2012; Ismail et al , 2014; Kaakeh et al , 2019; Mansour et al , 2010; Ahmad et al , 2011; Iqbal et al , 2018).…”

“…The focus of previous studies on patronage factor for Islamic banking is either on its adoption aspect (Abduh et al, 2018;Akhtar et al, 2016;Amin 2017aAmin , 2017bAmin and Hamid, 2018;Ezeh and Nkamnebe, 2019a;Hanif, 2019;Iqbal et al, 2018;Lujja et al, 2018;Maulana et al, 2018;Nemati et al, 2018;Riaz et al, 2017;Soma et al, 2017;State Bank of Pakistan, 2014;Warsame and Ireri, 2018;Zabri and Mohammed, 2018;Zinser, 2019) or on consumer behavior (Akhtar et al, 2016;Amin, 2019;Amin and Hamid, 2018;Hanif, 2019;Saiti et al, 2019;Zinser, 2019) toward Islamic banking. Few studies are conducted on a similar dimension with more emphasis on comparison of conventional banking with Islamic banking but still lacking the shift behavior toward Islamic banking (Bizri et al, 2018;Ireland, 2018;Kaakeh et al, 2019;Muneer et al, 2017;Rivera-Egea, 2017).…”

Marketing communications’ dimensions and brand loyalty in the banking sector

“…Within the banking sector, brand loyalty has been used to connote the continuous repurchase of a preferred bank's services, regardless of the presence of other banks and/or marketing efforts engineered by other competing banks to induce customer switching (Zephaniah et al, 2020;Izogo, 2016). Nemati, Khan, and Khan (2018) note that brand loyalty towards banks' offerings covers an intensely detained commitment of the customer towards using or purchasing the offering again in the future, despite other situational influences having the potential to cause a switch in the purchase intention of the customer. Lewis and Soureli (2006) posited that loyalty in financial services is perceived as the length of time a customer stays with a provider, frequency of service usage and the number of services used.…”

“…, 2020; Izogo, 2016). Nemati, Khan, and Khan (2018) note that brand loyalty towards banks’ offerings covers an intensely detained commitment of the customer towards using or purchasing the offering again in the future, despite other situational influences having the potential to cause a switch in the purchase intention of the customer. Lewis and Soureli (2006) posited that loyalty in financial services is perceived as the length of time a customer stays with a provider, frequency of service usage and the number of services used.…”