The Effect of Social Media Interactive Messaging on Customer Loyalty of Commercial Banks in Nairobi City County, Kenya
DOI:
https://doi.org/10.53819/81018102t2105Abstract
Social media interactive messaging is rapidly becoming a major marketing practice in the corporate world. Modern organizations are recognizing the interactive nature of social media platforms as breaker of barriers that initially limited customer-company interactions. Commercial banks have not been left behind in the intensified journey of using social media platforms to interact with customers in real-time and use it a s tool to inspire customer loyalty. However, existing literature has not empirically established if adopting the social media interactive messaging can significantly customer loyalty of commercial banks in Kenya. Moreover, some banking organizations have not fully optimized interactive messaging feature of the social networking sites to inspire customer loyalty. The current study investigated the effect of social media interactive messaging on customer loyalty of commercial banks in Nairobi City County, Kenya. The study was underpinned by the honeycomb model and the technology acceptance model. A primary research methodology was applied. A closed-ended questionnaire was administered to random sample of 384 commercial bank customers. Data collected was coded and entered into the Statistical Package for Social Sciences (SPSS). The study results revealed that social media interactive messaging has a significant positive effect on customer loyalty of commercial banks in Nairobi City County, Kenya. The study recommends that commercial banks in Kenya improve the ease of use of their social media pages to inspire customer usage for communications.
Keywords: Social media, interactive messaging, commercial banks, Nairobi City County.
References
Al-Kandari, A. A., Gaither, T. K., Alfahad, M. M., Dashti, A. A., & Alsaber, A. R. (2019). An Arab perspective on social media: How banks in Kuwait use instagram for public relations. Public Relations Review, 45(3), 101774. https://doi.org/10.1016/j.pubrev.2019.04.007
Al-Maroof, R. S., Salloum, S. A., AlHamadand, A. Q. M., & Shaalan, K. (2019). A unified model for the use and acceptance of stickers in social media messaging. In International conference on advanced intelligent systems and informatics (pp. 370-381). Springer, Cham. https://doi.org/10.1007/978-3-030-31129-2_34
Bilgin, Y. (2018). The effect of social media marketing activities on brand awareness, brand image and brand loyalty. Business & management studies: an international journal, 6(1), 128-148. https://doi.org/10.15295/bmij.v6i1.229
Bryman, A. & Bell, E. (2007). Business Research Methods. 4th edition. Oxford: Oxford University Press.
Cai, Y., Zhang, S., Xia, H., Fan, Y., & Zhang, H. (2020). A privacy-preserving scheme for interactive messaging over online social networks. IEEE Internet of things journal, 7(8), 6817-6827. https://doi.org/10.1109/JIOT.2020.2986341
Central Bank of Kenya (2021). Bank Supervision & Banking Sector Reports. Available from https://www.centralbank.go.ke/reports/bank-supervision-and-banking-sector-reports/
Chuttur, M. Y. (2009). Overview of the technology acceptance model: Origins, developments and future directions. Working Papers on Information Systems, 9(37), 9-37.
Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods approaches. London: Sage.
Dahl, S. (2018). Social media marketing: Theories and applications. Sage.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.
Dean, D., Suhartanto, D., & Pujianti, F. N. (2021). Millennial behavioural intention in Islamic banks: the role of social media influencers. Journal of Islamic Marketing. Available from https://doi.org/10.1108/JIMA-02-2021-0042.
Fowler, F. J. (2014). Survey research methods (Vol. 1) London: Sage publications.
Funk, T. (2013). Advanced social media marketing: How to lead, launch, and manage a successful social media program. New York: Apress. https://doi.org/10.1007/978-1-4302-4408-0
Gitau, J. N., & Mang’ana, R. (2021). The effect of cost leadership strategy on performance of commercial banks in Nairobi County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(10), 167-179.
Githuku, W. A., & Kinyuru, R. N. (2018). Digital banking and customer relationship in banking industry in Kenya. International Academic Journal of Human Resource and Business Administration, 3(2), 14-32.
Glendah, S. T., Alala, O. B., & Dishon, M. W. (2019). Social Media Marketing and Brand Loyalty at Safaricom Company, Kenya. European Journal of Business and Strategic Management, 4(5), 49-64.
Granić, A., & Marangunić, N. (2019). Technology acceptance model in educational context: A systematic literature review. British Journal of Educational Technology, 50(5), 2572-2593. https://doi.org/10.1111/bjet.12864
Jayasuriya, N. A., Azam, S. F., & Ferdous, M. (2017). The impact of social media marketing on brand equity: A study of fashion-wear retail in Sri Lanka. International Review of Management and Marketing, 7(5), 178-183.
Khan, M. F., & Jan, A. (2015). Social media and social media marketing: A Literature Review. IOSR Journal of Business and Management, 17(11), 12-15.
Mang’unyi, E. E., Khabala, O. T., & Govender, K. K. (2017). The relationship between e-CRM and customer loyalty: a Kenyan Commercial Bank case study. Banks & bank systems, 12(2), 106-115.
Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the promotion mix. Business Horizons, 52(1), 357-365. https://doi.org/10.1016/j.bushor.2009.03.002
Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative and. Qualitative. Approaches. Nairobi; African Centre for Technology Studies.
Mwangi, D. (2014). Influence of Social Media Marketing on Brand Equity at Safaricom Limited in Kenya. Nairobi, KE: Thesis submitted to University of Nairobi.
Neil, S. (2010). Encyclopedia of Research Design, Volume 1. Sage Publications: California.
Owino, J., Cherotich, M., Gitonga, V., Kimuya, L. and Kambulu, K. (2016). The Influence of Social Media on Brand Equity in Kenyan Banking Industry. Pyrex Journal of Business and Finance Management Research, 2(1), 1-5.
Rawal, P. (2013), AIDA Marketing communication model: Stimulating a purchase decision in the minds of the consumers through a linear progression of steps. International Journal of Multidisciplinary Research in Social & Management Sciences, 1(1), 37-44.
Smith, G. (2007). Form-We Help our Clients Create Great Websites, Apps, and Intranets for Their Customers. http://www. nform.com/ideas/social-software-building-blocks
Tatar, Ş. B., & Eren-Erdoğmuş, İ. (2016). The effect of social media marketing on brand trust and brand loyalty for hotels. Information Technology & Tourism, 16(3), 249-263. https://doi.org/10.1007/s40558-015-0048-6
Trattner, C. &Kappe,F. (2013). International Journal of Social and Humanistic Computing "Social Stream Marketing on Facebook: A Case Study.
Tuten, T. L., & Solomon, M. R. (2013). Social media marketing. Boston: Pearson.
Venkatraman, S. (2017). Social Media Marketing. Global Journal of Business Disciplines, 1(2), 89-102.
Wakazi, A., & Ogada, M. (2019). Influence of corporate branding on client satisfaction in commercial banks in Voi Town, Kenya. International Journal of Development and Management Review, 14(1), 66-75.
Yang, C. C., & Lee, Y. (2020). Interactants and activities on Facebook, Instagram, and Twitter: Associations between social media use and social adjustment to college. Applied Developmental Science, 24(1), 62-78. https://doi.org/10.1080/10888691.2018.1440233
