Understanding the Effects of Social Media Marketing on Customers’ Bank Loyalty: A SEM Approach

Abstract

This study used customers’ experiences to assess the role of social media marketing (SMM) efforts in increasing online customer-based loyalty in the banking sector in Jordan, and using the two main components of the TAM model, perceived the ease of use and perceived usefulness, to understand the relationship. Data were gathered through an online survey with 329 respondents through online banking services in Jordan. A test of the structural equation model (SEM) indicated that perceived usefulness strongly affects electronic word of mouth (EWM), informativeness (INF), and social media features (SMF); and perceived ease of use is indirectly linked to these factors. Behavioral intention is strongly affected by both the perceived usefulness and the ease of use of online banking services. Based on the self-proposed model, e-marketing has impacted customers’ bank loyalty regarding its online services, and the role of social media marketing has remained very important to enhancing customer-based loyalty. This study contributes to the literature by integrating SMF, EWM, and INF in a single framework. It also provides managerial implications and guides for scholars, managers, and practitioners in e-marketing to use customers’ experience to increase customer loyalty. Further research and suggestions are offered.