The importance of corporate social performance in place branding of retail banks in Egypt

Abstract

PurposeBranding issues and corporate social performance (CSP) are growing in importance for both companies and customers. In place marketing, places could be branded as each place should define and communicate its competitive advantages effectively and adapt to fit the needs of place customers. On the other hand, in Egypt, a major challenge for marketers is retail banking which is experiencing significant changes and entails the marketing of intangible services rather than tangible products. The purpose of this paper is to provide a useful starting point to consider retail banks as place brands, and advise place brand managers about how to integrate their values with CSP and branding issues.Design/methodology/approachThe study is quantitative in nature, focusing on the relationship between CSP measures and place branding through enhancing brand equity. A total of 220 self‐administered surveys were distributed among bankers and investors of two Egyptian‐based retail banks listed in the CASE (Cairo and Alexandria Stock Exchange).FindingsResults indicated that there is a lack of association between CSP measures and brand equity measures of retail banks in Egypt. Findings yield useful insights for both academics, and corporate and brand practitioners about the importance of synthesizing brand equity of a place with CSP in the banking sector.Research limitations/implicationsA longitudinal and qualitative research is required to investigate how customers perceive retail banks' brands in Egypt and whether or not they value banks applying CSP. A quantitative study should be conducted on a larger sample to generalize findings within the banking sector.Practical implicationsCSP is mainly driven by external pressures such as pressure of international financial institutions. This will only encourage passive compliance without any effective change on the ground in terms of greater corporate accountability and transparency. Banks should emphasize their CSP to develop or enhance their brand equity.Social implicationsResults depicted that if the individuals themselves can conduct their businesses in an ethical and sustainable manner, then companies will inevitably conform to any external CSP standard that will be utilized in the development of place brands image and the welfare of the society.Originality/valueLimited research has addressed the relationship between CSP and place branding. This study draws a model that investigates the relationship between applying corporate social responsibility (CSR) and place branding through improving brand equity of retail banks in a developing country, namely Egypt. Results of this research might be of interest to companies, practitioners, and society concerning the role of CSR in developing a place brand.