The Impact of Relationship Marketing on Brand Equity in the Banking Sector in Iran

During the last few decades, business philosophy has shifted from marketing orientation to Relationship Marketing Orientation (RMO). Service oriented organizations, such as banks, increasingly apply RMO to enhance their brand management practices, such as brand loyalty and brand image. The main purpose of this study is to investigate the influence of relationship marketing orientation and its dimensions (trust, bonding, communication, shared values, empathy and reciprocity) on the Brand Equity in Saderat Bank. Data were collected from 339 customers across various branches of Saderat Bank in Ardabil, Iran. Confirmatory factor analysis and structural equation modeling were used to analyze the measurements and relationships among the variables. The findings of this study demonstrate that RMO has a positive effect on the brand equity of Saderat Bank. Specifically, dimensions including trust, bonding, empathy, and reciprocity have direct and significant effects on brand equity, with the effect of trust being significantly higher. However, communication and shared values showed no significant effects on brand equity. The findings of this study offer practical applications for enhancing the brand equity of banks and other financial institutions, particularly Islamic banks, by exploring the cultural variation of relationship marketing.