The Effects of Marketing Mix On Consumer Satisfaction: A Literature Review From Islamic Perspectives
The Effects of Marketing Mix On Consumer Satisfaction: A Literature Review From Islamic Perspectives
The Effects of Marketing Mix On Consumer Satisfaction: A Literature Review From Islamic Perspectives
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Turkish Journal of Islamic Economics, Vol. 2, No. 1, February 2015, pp. 17-30
Abstract
Customer satisfaction is one of the essential factors for the success of a company. To
achieve the high customer satisfaction, companies must know when and how their
customers are satisfied about the products and services. Nowadays, different companies
follow different types of marketing strategies based on the target market demand. The
majority of companies follow a conventional marketing strategy, but some companies
choose to follow a religious or spiritual marketing strategy such as the Islamic
marketing strategy. Conventional marketing strategies satisfy the customers based on
the current needs of the customer, whereas, Islamic marketing strategies satisfy the
customers based on the human values, marketing cultures, and Islamic rules and
regulations (shariah laws). Apart from conventional marketing strategies, the Islamic
marketing strategies more focus on religious rules and ethics which do not exist in
conventional marketing. Thus, this study discusses how marketing mix (product, price,
place and promotion) influences customer satisfaction from Islamic perspectives and
why it is necessary for the consumers.
1. Introduction
The concept of marketing from an Islamic perspective is different from the conventional
one. The conventional marketing concept, as many authors have attempted to define,
can be explained in many different ways. It was first defined in 1948 by the American
Marketing Association (AMA), United States of America, as “the performance of
business activities directed toward, and incident to, the flow of goods and services from
producer to consumer or user” (Kotler and Armstrong, 2004). In 1985, AMA changed
this definition and defined the marketing concept as “the process of planning and
executing the conception, pricing, promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual and organisational objectives”
1
Corresponding Author, Department of Business Administration, International Islamic
University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia; e-mail:
selim.research@gmail.com
2
Department of Fiqh and Usul al Fiqh, International Islamic University Malaysia, Jalan
Gombak, 53100 Kuala Lumpur, Malaysia.
E-ISSN: 2148-3809
http://www.tujise.org , http://dergipark.ulakbim.gov.tr/beuntujise
DOI: http://dx.doi.org/10.15238/tujise.2015.2.1.17-30
(Kotler and Armstrong, 2004). In 2004, Philip Kotler defined modern marketing as “a
social and managerial process whereby individuals and groups obtain what they need
and want through creating and exchanging products and value with others” (Alom and
Haque, 2011).
Unlike conventional marketing, the Islamic marketing concept was established based on
the basic motives of the creation of mankind and purpose. In Islam, every human life
must follow Islamic shariah rules and regulations which are commanded by Allah the
Almighty. So in Islam, marketing is not confined to just buying and selling or getting
profit from goods and services under any business.
According to Alom and Haque (2011), Islamic marketing is a process and strategy
(Hikmah) of fulfilling needs through Halal (Tayyibat) products and services, with the
mutual consent and welfare (Falah) of both parties (i.e. buyers and sellers) for the
purpose of achieving material and spiritual wellbeing in this world and the hereafter.
They also mention that Islamic marketing must never compromise with unethical
practices such as charging high prices, deceptive practices, misleading information
about the products and services, hoarding, poor services to the disadvantaged
customers/consumers, and selling unsafe products to the customers without informing
them. Islamic marketing strategy always motivates the businessmen or business
organisations to avoid these unethical practices to ensure the highest level of morality
with satisfaction. If the Islamic marketing concept can be established in business
organisations, then all stakeholders will benefit by getting pure products and services
with good conduct on the part of the marketers or businessmen. The forthcoming part of
this paper is a comprehensive discussion about the impact of customer satisfaction
through Islamic marketing mix (product, price, place, and promotion).
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example of Islamic marketing, through consumer choices and decisions. The link
between religion and personal consumption (perishable and non-perishable goods) is
not difficult to find. Ethics deal with the moral issues that embody the values of a
society and address the rightness or wrongness of behaviour. Islam, on the other hand,
gives directions for a Muslim on how he/she should conduct his/her life. Thus, Islam
influences the ethics of Muslim employees and managers (Koku & Jusoh, 2014). In the
next section, we discussed the effects of marketing mix on customer satisfaction
according to the Islamic marketing ethics.
3.1 Product
A product is what the company has to offer, whether it is something tangible, like a
mobile phone, or a service, like health treatment. It is anything that can be offered to
satisfy a market’s want or need. Successful companies consider the product’s form,
functionality, features, and benefits from the consumers’ point of view. Moreover, each
and every product must meet the needs of a particular target market (consumers’
expectation). For example, a luxury product should create just the right image for
“customers which have everything” (Goi, 2009). Many researchers suggest that the
basic product must be positioned for better quality and price-conscious consumers.
Other important aspects of product may include: an appropriate product range, design,
warranties, or a brand name. Everyone buys products for their own personal benefit, and
they buy a product with some expectations. For example, consumers buy books with the
expectation of enjoyment and knowledge. There are four types of products. These are as
follows:
1. Formal product: This product refers to the physical item which is bought by
the consumers for their own benefit; for example, mobile, computer, and etc.
2. Core product: The core benefit is associated with using the formal product;
what the customer is actually buying from the companies; for example,
knowledge or status.
3. Augmented product: The totality of benefits that the customer receives from
the formal product; for example, time saved or quick access to information.
4. System product: This product refers to the expansion of the augmented product
– the attendant add-on and extras that come with the formal product; for
example, manuals, training support (Kotler et al., 2009).
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must have high quality features, therefore satisfying the customers’ expectations. The
third principle, the deliverability of the product, encompasses whether or not the
product is deliverable. This can include promising the notion of birds in the sky, fish in
the sea, etc. that the seller cannot produce, then seller must not attempt to sell it to the
customer. The fourth principle, precise determination, encompasses the exact quantity
and quality of the product. The seller must be able to inform the buyer about the actual
portion of the product. The fifth and final principle is in regards to the product’s
cleanliness. Unclean products (i.e., items that include dog, pig, unclean garments etc.)
must not be sold to customers. Clean products motivate customers to be loyal and
satisfied of a particular product, and therefore with the company. In addition, the
production process should be permissible (Halal) and pure (twayyib), in that it should
ensure that the ingredients have been taken/extracted/obtained from lawful sources, to
the extent that it is free from any harmful consequences (Saeed et al., 2001).
In Islamic marketing, customer satisfaction can be increased through product
differentiation. If the firms produce a variety of products based on customer needs, then
customers can get the privilege of choosing from the many options. Moreover, if the
company can improve the product quality but sell at the same price and conduct
business following Islamic shariah laws (free from harmful and unethical practices),
then the customer would be satisfied, and therefore motivated, to buy the same product
or brand again and again from the one seller.
3.2. Price
Pricing is one of the important decisions that need to be made by a firm which would
affect its revenue and profitability. In determining the price of a product, a company or
marketing manager needs to consider not only the costs it takes to produce the item, but
also the customer’s perception on the value of the product (Hanna and Dodge, 1995).
Moreover, companies strive to get the maximum margin by looking at a whole range of
possibilities to set the right price to certain types of customer.
In economics, Adam Smith gives the notion of price as “value in exchange”. Moreover,
price is determined by the intersection of supply and demand in the market, or the so-
called market mechanism (Stiglitz & Walsh, 2006). While from a marketing
perspective, price is defined as “The amount of money charged for a product or service,
or the sum of the values that consumers exchange for the benefits of having or using the
product or service” (Kotler and Armstrong, 2004).
With respect to the types of market, companies face different conditions in order to set
the price for its products. In a perfect competition market, companies become only a
price taker, which means that it could not (freely) set its own price(s). Instead it has to
follow the market price. Given many sellers and no information asymmetry, a perfect
competition market would mean that there would be no room for each seller to earn
abnormal amounts of profit, and instead it entitles each company to get a normal or
equal profit only. Whether they like it or not, companies have to set their price equal to
market price. If it is more than market price, the consumers would not buy from them
and find other sellers instead. Meanwhile, if it is less than market price, the company
would receive many demands and would not be able to meet this expectation as their
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stocks would be limited. The other feature of perfect competition market is that there
would be no product differentiation, as all sellers would supply the generic, or perfect
substitutions of, goods.
According to Kotler and Armstrong (2004), price is one important element of marketing
mix. In determining price, firms should consider other marketing mix elements, due to
any decision made pertaining to those elements would affect the price too. Thus, firms
have to think comprehensively with regards to the marketing mix strategy, especially
when considering the price. In the product development stage, instead of analysing the
product features first, firms can set the ideal selling price first for particular customers,
then develop the product to suit that price. This technique is called ‘target costing’
(Kotler and Armstrong, 2004).
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O you who believe! Eat not up your property among yourselves unjustly except
it be a trade amongst you, by mutual consent. And do not kill yourselves (nor
kill one another). Surely, Allah is Most Merciful to you.
To assure that just dealings and fair play exist in a trade contract, the features of the
goods (subject matter) must be precisely defined by both contracting parties (seller and
buyer). Prophet Muhammad SAW encourages the parties to a contract to mention all
aspects of the agreement to avoid misunderstanding which can lead to legal dispute as
mentioned in the hadith narrated by Ibn Abbas below:
“Allah’s Apostle came to Medina and the people used to pay in advance
the price of fruits to be delivered within one or two years. (The sub-narrator is
in doubt whether it was one to two years or two to three years.) The Prophet
said, "Whoever pays money in advance for dates (to be delivered later) should
pay it for known specified weight and measure (of the dates).” (Book #35,
Hadith #441, Sahih Bukhari)
Islam does not view pricing solely from the business perspective but also from the
interest of society. According to Abdullah and Ahmad (2010), all parties’ (buyers,
sellers, society, etc.) interests are protected in Islam. The idea here is that any self-
interest should not sacrifice the other higher objectives. In other words, business
organisations have to move beyond the narrow-minded objective of profit-
maximisation. Saeed et al. (2001) argued that too much reliance on profit-maximisation
would create problems of moral hazard. Consequently, companies would create ways to
maximize profits that sometimes may harm the society.
The case of the sub-prime mortgage crisis in US in 2008, for instance, was mainly
driven by speculative actions of financial institutions for more profits by creating
complicated financial products. They engaged in trickery to improve the products
features. In financial markets, to attract more demand for securities, they should obtain
a triple A rating. The conflict of interests persisted as the issuer of securities paid rating
agencies huge funds for high ratings. When the crisis started, many securities buyers,
mortgage borrowers and people on the street did not now what was going on. The sub-
prime crisis was escalated by the financial and economic crisis with the middle and low
income earners badly affected. Many of them become homeless, lost savings, jobs, and
futures. The crisis spilled over to other countries and almost all the world experienced
recession on different levels.
The lesson learnt from the above crisis is when greediness is blended with competition
to maximize profits, it is likely to lead to adverse outcomes. The financial institutions
involved sought their own benefit without considering the impact to the society,
economy, and environment. Saeed et al. (2001, p. 130) clearly mention the impact of
this pursuit of money;
Pursuit of money alone will lead a business person towards the path of
treason, lying, fabrication, false testimony, standing in the way of duty and
assiduous search, and the pursuit of valueless earnings. In this struggle of
amassing wealth, he/she will be ready to sacrifice his/her honour and forsake
the higher moral value.
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their office. Let’s say, the average price of a meal is $6 and they visit the restaurant
three times a week, given those conditions, the restaurant can earn $2,700 annual
revenue. If the restaurant has another one hundreds loyal customer with similar buying
behaviour, the restaurant would have an annual revenue of $90,000. With that in mind,
loyal customers are the main source of revenue of a company. Hence the company
needs to retain them to ensure its sustainability.
With regard to pricing a product, a company or marketing manager needs to consider
not only costs of production, but also the customer’s perception on value of the product
(Hanna and Dodge, 1995). Before deciding to buy a product or service, customers have
the expectation in mind regarding the specifications, quality, value and price of the
product or service. If their expectations meet the reality of the product or service
encountered, they would be satisfied. Moreover, if the trend of satisfaction among
customers keeps improving, then the company would be expecting customer loyalty.
Loyal customers would benefit the company in the long run. According to Anderson et
al. (1994), customer satisfaction positively affects the profitability (return on
investment) of company in future periods. Moreover, given the long run nature of
customer satisfaction and quality, any funds allocated to improve them should be treated
as investments instead of expenses.
Finally, customer satisfaction should be regarded as one of the main objectives of a
company. Meeting this condition would provide a basis for customer loyalty which
would benefit the company in the long run. With respect to pricing decisions, the
customers do not solely want cheaper prices, what they want is value of the products or
services equal to their expectations.
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All of these practices are against Islamic marketing ethics for distribution channels. The
ethical behaviour of an Islamic marketer should be of a fair and just person without
exploiting customers or deceiving them in any manner.
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does not uplift the moral standard, and as such, it should not be distributed to customers.
Islamic marketers are obliged to understand and project themselves in a fair and upright
manner as well as Islamic distributors.
3.4. Promotion
According to the definition of the Chartered Institute of Marketing (2004), ‘promotional
mix’ is “a term used to describe the set of tools that a business can use to communicate
effectively the benefits of its products or services to its customers”. Thus, promotional
mix is said to include tools such as advertising, public relations, sales promotion, direct
marketing, and personal selling. Businesses need to inform customers of the products
and services they provide in order to facilitate the firm’s survival in the very
competitive business environment. In addition, “effective communication with your
customers is vital to ensure that your business generates sales and profits”. This latter
part of the explanation given by the Chartered Institute of Marketing (CIM) is where
promotion in Islamic marketing would beg to differ, since generating sales and profits is
not the main objective or goal of businesses implementing Islamic marketing.
Promotional mix activities can be beneficial in terms of social and economic
progression by encouraging “healthy competition”, however from the lens of an Islamic
marketer, these activities should not encourage wasting or overspending of resources
(Abdullah & Ahmad, 2010). Furthermore, the concept of promotion in Islamic
marketing focuses more on providing customer satisfaction, rather than satisfying one’s
(the firm’s) own goals alone.
Abdullah and Ahmad (2010) outlined six categories of ethical principles (Islamic
perspective) which are applicable to marketing activities i.e. truthfulness, sincerity,
trust, justice, brotherhood and science and technology. On similar grounds, Ibn al-
Ukhuwwah mentioned that over-praising or exaggerating of qualities and attributes that
the product or service does not have, is in fact unethical, particularly under Islamic
marketing ethics (Hassan et al., 2008). Thus, when dealing with such marketing activity
as ‘promotion’, “all aspects of communication to the consumers, whether through
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advertising or personal selling, must be done in a truthful manner without any intentions
of misleading them or cheating them.” (Abdullah and Ahmad, 2010).
In Islamic ethics, promotional techniques must not use sexual appeal, emotional appeal,
fear appeal, false testimonies, and pseudo research appeal, or contribute to the dullness
of the mind or encourage extravagance. Within the Islamic framework, these
promotional techniques are unethical since these methods can be utilised purely to
exploit the basic instinct of consumers worldwide with a view to gain profits and greater
market share (Hassan et al., 2008).
In addition, Hassan et al. (2008), further mentioned that “Prophet Muhammad (SWS)
expressly condemned all manipulative promotional behaviour stating that, “One who
cheats us is not one of us” (al-Nawawi 2: 770)”.
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4. Conclusions
It is indeed very true that Islam provides a complete way of life. It parcels all features
and safeguards human kind for unnecessary ‘evils’ of society. A lot of the issues and
problems faced in society nowadays are a result from the lack of ethics in our daily
lives. People tend to be overridden by greed and self-satisfaction, i.e. competition and
profit maximisation rather than looking at cooperation and moderation, which the latter
pair are what forms the basis of Islamic worldview. When talking from an Islamic
marketing perspective and comparing ‘competition and profit maximisation’ versus
‘cooperation and moderation’, the latter pair provides a “win-win” situation in that it
facilitates ‘satisfaction’ to both the consumers (customers) and the sellers (promoters),
as opposed to the former pair which serves to only satisfy the sellers. Thus, in order to
avoid promoting ‘toxins’ towards society, businesses should implement Islamic
marketing through all their marketing mix strategies to gain not only better ‘rewards’ in
this world, but also for the hereafter.
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