EuroJ ournals Publishing, Inc. 2012 http://www.eurojournals.com/ajsr.htm
Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective
Hussin Hejase Faculty of Business and Economics American University of Science and Technology, Beirut, Lebanon E-mail: hhejase@aust.edu.lb Tel: +961-1-218716; Fax: +961-1-339302
Bassam Hamdar Faculty of Business and Economics American University of Science and Technology, Beirut, Lebanon
Mohammed Orfali Faculty of Business and Economics American University of Science and Technology, Beirut, Lebanon
Ale Hejase School of Business, Lebanese American University, Beirut, Lebanon
Abstract
Marketing strategy is considered as one of the most effective tools to reach the target market. Marketing strategy is affected by several elements, the most prominent is the culture element. Culture has eight major categories, one of which is religion. In the Middle East, religion is considered an influential factor in all endeavors carried out by both marketers and consumers. That is, religion, as an element of culture, has a great effect on shaping the society and it contributes to individuals various decisions, including the buying decisions. This study is exploratory in nature and assesses the relation between the customers level of religious commitment and the corresponding buying behavior in the Syrian market. The study also defines the strength of the aforementioned relation and shows whether the marketers need to alter their strategy as a result.
1. Introduction Marketing is one of the most important tools available for an organization to contact its target market. Armstrong and Kotler (2011) contend that todays marketing is understood as a tool to satisfy customers needs (p. 33). Accordingly, organizations utilize the functions and the available marketing tools in order to solidify their position and improve their brand name and brand image in the markets they operate in. Consequently, the success of the organization depends much on the success of the implementation of the set marketing strategy (ibid, p. 89). Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 34 The marketing strategy of any organization has to cover each and every aspect related to the market. There are many elements that have to be taken into consideration while setting the marketing strategy; those include the marketing mix or the 4 P's, in addition to many other external elements such as the competitors, political situation, and economic situation in addition to the cultural elements of the market. The cultural elements have a direct effect on the marketing strategy, and the organization that fails to consider them carefully will face failure in the market. Organizations have to study carefully the culture of the markets they are operating in and define the elements that might affect their performance in these markets. According to Terpstra and Sarathy (2000), there are eight categories within the cultural framework, namely, Language, Religion, Values and Attitudes, Education, Social Organizations, Technology and Material Culture, Law and Politics and Aesthetics. Organizations are consumer-oriented; as such, they give high consideration to the needs and wants of their target consumers before introducing any new product. Although these products are standardized and are sold throughout the world, yet the markets they are served in are not. Each market has a predefined culture which binds the actions of the selling firms and forces them to tailor their marketing mix according to the limits that these cultures have predefined. One of the important cultural elements that have to be taken into consideration is religion. Religion has a great effect on shaping the society; religion contributes strongly to the individuals various decisions, among which is the buying decision. That is why marketers should clearly take into consideration such an element when deciding on the marketing strategy for any product. Moreover, nowadays religion is observed to be highly related to the political conflicts in the world, and that organizational performances amid these conflicts have been affected, reaching in the worst scenario to boycotts. For the marketers job to be successful, they should be able to satisfy the consumers needs, and to find out the elements that affect these needs. According to Daun (as cited in Roth, 1995, p. 163) cultural, social and economic dimensions of the international markets shape consumers needs; thus, any misjudgment of one of these elements would be a killer for the product, and would affect the total image of the brand. Marketing strategies are important and their corresponding elements are vital for the success of products in the market; they include the planning and the tactics that will be used for different products in the market. The strategy begins at generating ideas and ends after the implementation of the tactics. Therefore, it is important for every marketer to define the effect of the said strategys elements that might affect the organizations strategy, and the extent of this effect. This will allow the marketer to alter the set strategy in order to abide by the requirements of the required elements.
2. Literature Review According to the American Marketing Association (AMA) in its new definition of marketing released on J anuary 14, 2008, Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (Marketingpower.com, 2012). A marketing oriented organization takes its marching orders from its customers; it produces products and services based on its customers needs, wants and levels of satisfaction. This kind of thinking allows an organization to adapt and respond to an ever-changing environment. Making and using a marketing strategy has a strong positive impact on profitability. This is because firms that employ a marketing strategy tend to focus on their customers and markets, integrate their marketing responses and work out in advance where their profits will come from. Marketing strategy defines objectives and describes the way one is going to satisfy customers in his/her chosen markets (Is4profit.com, 2012). Strategic marketing is a market-driven process of strategy development that takes into account a constantly changing business environment and the need to deliver superior customer value. The focus 35 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase of strategic marketing is on organizational performance rather than on a primary concern of increasing sales. Marketing strategy seeks to deliver superior customer value by combining the customer- influencing strategies of the business with a coordinated set of market-driven actions. Strategic marketing links the organization with the environment and views marketing as a responsibility of the entire business rather than a specialized function (Mbaknol.com, 2012).
2.1. Marketing Mix The marketing mix, from a marketing perspective, refers to variables that a marketer can control to influence a brands sales or market share. There are four variables summarized as the four Ps of marketing: product, price, promotion, and place. Exhibit 1 provides a summary.
Exhibit 1: The Traditional 4 Ps
Product refers to aspects such as the firms portfolio of products, the newness of these products, their differentiation from competitors, or their superiority to rivals products in terms of quality. Promotion refers to advertising, detailing, or informative sales promotions such as features and displays. Price refers to the products list price or any incentive sales promotion such as quantity discounts, temporary price cuts, or deals. Place refers to delivery of the product measured by variables such as distribution, availability, and shelf space. Source: Tellis, 2011.
The term marketing mix or the classical four Ps have been used to describe these various elements. Marketing strategy development may therefore be viewed as developing a marketing mix aimed at satisfying the needs of selected markets and accomplishing specific marketing objectives. The four Ps product, price, place, and promotion, should work together in the marketing mix. Often, decisions on one element will influence the choices available in the others. Selecting an effective mix for the market will take time and effort, but these will pay off as one satisfies customers and creates a profitable business. Moreover, once the marketer has a good marketing mix, the right product at the right price, offered in the right place and promoted in the right way, he/she will need to continue to stay on top of market changes and adopt the marketing mix as seen necessary. Marketing is a part of a companys venture that will never end.
2.2. Expansion of the Marketing Mix Marketers, today, talk about additional four Ps, namely, People: This answers questions like how ones staff are different from those in a competitors organization, and how ones clients are different from that of the competitors clients. Physical presence: It is how ones shop or website looks like. Process: It is how ones product is manufactured and delivered, or how ones service is sold, delivered and accessed. Physical evidence: It is how ones service becomes tangible (Kar, 2011).
2.3. Kotler's Two Ps According to Afridi (2009), quoting Kotler (1984), when organizations attempt to enter new markets abroad, they need to master the art of satisfying parties other than only the target clients. The aforementioned parties include governments, trade unions and other interested groups who act as gate keepers to their own market. Upon recognizing the political nature of this new marketing environment, Kotler introduced two further Ps, Public Relations and Political Power, which in marketing terms are known as "mega marketing". Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 36 Kotler (1984; cited in Afridi, 2009, p. 142) also advocated the importance of power to win the influential support of industrial officials, legislators, and governments so as to enter and operate in the targeted market. To attain these objectives, Kotler added that marketers should possess good negotiating skills to negotiate with the relevant authorities. This means that some of the factors in the external environment which were previously classified under "uncontrollable environment", particularly the political environment, has to be managed as well as the traditional marketing mix.
2.4. Magrath's Three Ps Hger and Waller (2008) contended that Magrath (1986) believed that the traditional four Ps for the marketing of products as suggested by McCarthy are not enough for marketing in a service-based industry. Instead three more Ps, which he considered to be "vital marketing elements" that would occupy management's attention, must be added to the marketing mix; these are Personnel, Physical Facilities and Process Management (p. 15). Moreover, Hger & Waller (2008) quoted Magrath (1986) as arguing that when service businesses try to develop marketing and tactical programs around the four Ps, one fundamental difficulty they encounter is making the four Ps fit the nature of their operations. The four Ps ignore important service marketing realities: namely personnel, physical facilities, and process management which are interconnected and represented vital marketing elements in the management of service business (p.15).
2.5. Culture It has been noticed that one of the major causes of many businesses failure has been attributed to the failure to take into account the cultural differences between countries. In addition, many of the marketing theories are limited in the sense that they have been developed and confirmed only in western countries, specifically in the United States. According to Yaprak (2003), the further development of marketing as an academic discipline necessitates that there must be a thorough examination of the soundness of the theories as well as the models in other cultural settings whose level of generalization is to be identified, and to discover some boundary limitations and conditions (p. 175). Hger & Waller (2008) report that an increasing number of international marketers make use of cultural models to understand the cultural values of the target market that influence the negotiation behavior in order to adapt selling styles and create a better personal selling level. However, it isnt appropriate to adapt to all cultural norms of the target market; for example, being Christian isnt appropriate to adapt to the religion of a Muslim target market participating in a Muslim prayer. The marketer must find out which norms to follow and which not to follow; this could be achieved when the marketer acquire good knowledge of the target market (p. 19). To understand the aforementioned argument, one needs to know what culture encompasses. Guisepi (n.d.) states that the word culture was derived from the Latin word colere, meaning to build on, to foster, and to cultivate. There have been numerous reflections on the meaning of culture in all sorts of versions of its use, practices, and communication styles. Awosola (2010) agrees with Guisepis definition of culture, and adds that culture is a set of accepted behavior patterns, values, assumptions, shared common experiences, social structure, decision making (p. 17). Culture is definitely not an easy phenomenon to measure. It has over a hundred definitions, including shared system of perceptions and values or a group sharing a certain system of perceptions and values. According to LeVine (2007), culture is an organized body of rules concerning the ways in which individuals in a population should communicate with one another, think about themselves and their environments, and behave toward one another and toward objects in their environments. The rules are not universally or constantly obeyed, but they are recognized by all and they ordinarily operate to limit the range of variation in patterns of communication, belief, value, and social behavior in that population (p. 4). On the cultural setting of the market behavior, Douglas and Dubois (1977), as cited by Englis (1994), claimed that culture is a common set of values, forms of social organization that influence 37 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase roles and status positions as well as the conventions, rituals, and practices that guide behavior, and a communication system that includes not only language but nonverbal components as well (p. 119).Therefore, one may conclude that almost all definitions of the term culture points to one main thing: a shared communication system and common way of thinking and behaving. As noted, culture is shared by a group of people and thereby defines the boundaries of that group.
2.5.1. Elements of Culture According to FAO (1997), the major elements of culture are material culture, language, aesthetics, education, religion, attitudes and values and social organization. A summary is presented in Exhibit 2.
Exhibit 2: Major Elements of Culture
1: Material culture Material culture refers to tools, artifacts and technology. Before marketing in a foreign culture, it is important to assess the material culture like transportation, power, and communications and so on. All aspects of marketing are affected by material culture like sources of power for products, media availability and distribution. Material cultures introductions into a country may bring about cultural changes which may or may not be desirable. 2: Language Language reflects the nature and values of society. There may be many sub-cultural languages like dialects which may have to be accounted for. Some countries have two or three languages. Language can cause communication problems - especially in the use of media or written material. It is best to learn the language of the target market or engage someone who understands it well. 3: Aesthetics Aesthetics refer to the ideas in a culture concerning beauty and good taste as expressed in the arts: music, art, drama and dancing, and the particular appreciation of color and form. Aesthetic differences affect design, colors, packaging, brand names and media messages. 4: Education Education refers to the transmission of skills, ideas and attitudes as well as training in particular disciplines. Education can transmit cultural ideas or be used for change; for example, the local university can build up an economy's performance. 5: Religion Religion provides the best insight into a society's behavior and helps answer the question of why people behave rather than how they behave. Religion can affect marketing in a number of ways: Religious holidays During the working hours within the month of Ramadan marketers cannot get full access to consumers as shops are closed, consumption patterns - fish for Catholics on Friday, economic role of women Islam, caste systems - difficulty in getting to different costs for segmentation/niche marketing, and joint and extended families 6: Attitudes and values Values often have a religious foundation, and attitudes that relate to economic activities. It is essential to ascertain attitudes towards marketing activities which lead to wealth or material gain. Attitudes are always precursors of human behavior and so it is essential that research is done carefully on the attitudes in question. 7: Social organization This refers to the way people relate to each other, for example, extended families, units, kinship. In some countries kinship may be a tribe and so segmentation may have to be based on this. Other forms of groups may be religious or political, age, caste and so on. All these groups may affect the marketer in his planning. There are other aspects of culture, but the above cover the main ingredients; they are the ones to be taken account of when marketing internationally. Source: Fao, 1997. Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 38 2.6. Islam and Marketing Muslims need to live in a style that is prescribed by God and his messenger. In one of the Quran verses, God said the following: O you who believe! Enter perfectly in Islam (by obeying all the rules and regulations of the Islamic religion) and follow not the footsteps of Shaitan (Satan). Verily, He is to you a plain enemy (Al-Quran 2:208). The above verse suggests that all styles should be according to the Islamic jurisprudence. Therefore, all styles could be made Islamic. The only challenge is the How element. Realizing that, the authors of the current project argued that marketing could be made Islamic as well.
2.6.1. Fundamental Philosophy of Islamic Marketing The highest and most important concept in Islam is the Tawhid or Oneness (Alhabshi, 1987; Haneef, 1997). This is the most important concept that a Muslim must know in order to live and survive in this world and the hereafter. Rice (2001), cited in Arham (2010) stated that the concept of Tawhid is the most crucial ingredient in commerce. Furthermore, according to Abusulayman (1998), the concept of Tawhid is both vertical and horizontal. The vertical relationship pictures the connection between a human and his Creator, while the horizontal relationship portrays the inter-human relationship based on Gods law. The Tawhid principle shows that Muslims believe that God (Allah) is the only architect of the universe and therefore the human being is Allahs representative to manage this world and its resources in a just way (Abusulayman, 1998; Badawi, 2002). In terms of marketing, Allah Pitchay (2012) argues that justice could be implemented to smooth the flow of goods, among others; accordingly, companies can facilitate the process of meeting customers needs. Furthermore, smoothing the flow of goods could prevent the practice of hoarding which is condemned by the Islamic teaching. Consequently, one would successfully show ones act of brotherhood through good inter-human relationship with other people, and would establish justice to society. Since everybody is essentially equal, all customers have equal rights to get the products that they want in order to satisfy their needs. Hoarding will inflate the price and create injustice to those who cannot afford to buy the particular product that they need (p. 3).
2.6.2. Characteristics of Islamic Marketing Sula and Kartajaya (2006) contend that, in general, there are four characteristics to the Islamic marketing concept. These are spiritualistic, ethical, realistic, and humanistic. If one gives these four characteristics some thought, one will find a good relationship between the five pillars of Islam and its implementation. These concepts will be explored as follows: Spiritualistic: This characteristic encompasses all teachings in Islamic marketing. It means that all business conducts must be in accordance with the teaching of Al-Quran and Sunnah (Islamic Hadith). Moreover, Islamic marketers must fully believe that Islamic law is the ultimate law that must be used as a guide; that it is just, perfect, and the source for all goodness (Arham, 2010). The first pillar of Islam, the Shahadah (the belief in uniqueness of Allah and the message of His prophet Mohammad), becomes the heart of this concept. Shahadah is the ultimate confession of a human to his/her creator. So, a Muslim is to abide by any Terms and Conditions set by the Almighty to live in this world, and any forbidden action will be accounted for in the divine court. In terms of Islamic marketing, the total submission to the Creator means that all aspects of marketing must fit with the teachings of Islam. Of course, in some ways, its implementation varies. Islamic marketers must be able to include the spirit of Islam in all aspects of marketing activities, from the planning to after sales service. In other words, any marketing activities must be done within the ethical boundaries set by Islamic teaching. Ethical: The spiritual enhancement within Islamic marketing forms the Islamic ethics within the business transaction. Sula and Kartajaya (2006) stated that one of the characteristics of Islamic marketers is ethical consideration which follows Islamic teachings. Therefore, it is necessary to refer to this kind of ethics as Islamic Ethics. Islamic ethics is the practice of Islamic daily prayers, the second pillar of Islam. Before Muslims pray, they must perform ablution (cleansing with water) before meeting with their creator. In marketing sense, Islamic marketers must make themselves ready. They 39 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase must be purified before commencing their marketing activities. The term purified refers to any attempt of self-cleansing before serving the markets. For instance, companies must train their marketers so that all marketing activities could be done in ethical standards set by Islamic teaching. Last but not least, companies must clearly inform their staff that they must accept any results that appear in front of them as long as they have worked hard and done everything they could. Sula and Kartajaya (2006) referred to this concept as being Realistic. Realistic: Shariah marketers should not be so rigid in practicing Islamic marketing, as long as it does not violate Islamic law. The content is more important than the appearance. However, it must be noted that being realistic does not mean that in the case of emergency, Muslim marketers can compromise and violate the principles of the Islamic law. Sula and Kartajaya (2006) stated that Muslim marketers must be brave to differentiate themselves from any other marketers who partially use or do not use Islamic principles in conducting business. Moreover, the realistic mentality could be seen in people who perform fasting in the month of Ramadan. Fasting, the third pillar of Islam, teaches people to become realistic. When Muslims perform fasting, they abstain from eating whenever there is sun light and continue to perform their work duties even if they are in the state of hunger and thirst. The feeling of hunger and thirst is a symbol of struggle which will end when the sun sets. This shows that nothing lasts forever. For every challenge, there lies hope and prosperity. Being realistic is not just sitting down and losing hope. In marketing point of view, being realistic means an opportunity for creativity and the ability to create breakthroughs. For instance, companies know that their responsibility is to boost customers willingness to buy. Offering customers special business opportunities reflects the concept that being realistic creates hope, which in turn creates an inner power to make a breakthrough. It is important for Islamic marketers to understand this concept since it will boost the spirit of marketing their products. Finally, companies should view the market humanely. That is, companies should realize that they are dealing with human beings, not just a set of sales figures. Therefore, Islamic marketing tries to be humanistic. Humanistic: Humanistic in Islam, like in any other religion, teaches people the values that differentiate people from any other creatures inhabiting this world (Sula and Kartajaya, 2006). Consequently, one should be able to distant oneself from inhumane desires such as greed. Moreover, being humanistic fits the fourth and the fifth pillars of Islam, namely, Zakah (paying charity) and Hajj (pilgrimage). The two pillars are closely related to being humane. Paying Zakah will increase social sensitivity towards the poor, while going to Hajj increases social acceptance of people from different races and most importantly skin colors. As for the effect of being humanistic on the discipline of marketing, modern marketing refers to the notion of being sensitive to ones surrounding as Sustainable Marketing (Armstrong and Kotler, 2011). Basically, it is a concept of marketing which tries to balance between market demand and environmental preservation (p. 39). All in all, it is the trend of todays companies to pay more attention to their society and more importantly to their environment.
2.6.3. Islam and the Marketing Mix Islam is generally conceived as a comprehensive way of life; a worldview that unifies the metaphysical and material and gives structure and coherence to personal existence (Izetbegovic, 1993, p. 7). The compartmentalization of life into a public sphere, which is secular, and a private sphere, which is religious, is alien to Islam; Islam provides Muslims with a comprehensive life plan. According to J ohnstone (1975; cited in Kum-Lung and Teck-Chai, 2010, May), religion is a system of beliefs and practices by which a group of people interprets and responds to what they feel is supernatural and sacred (p. 226). Most religions prescribe or prohibit certain behavior, including consumption behavior. Marketing textbooks and international marketing address the phenomenon that purchasing decisions are influenced by the buyers religion identity. For example, Essoo and Dibb (2004) found in their research on how Religious Influence on Shopping Behaviors, the following: The practical value of this research is that marketing strategists may find it useful to view religious affiliation and religiosity as predictors of consumer behavior. Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 40 An enhanced understanding of religious differences in consumption could be usefully applied in the development of marketing strategies and tactics. At the strategic level, there may be value in using religion as a segmentation basis. Marketing tactics may then be designed which reflect and are better suited to the characteristics of consumer behavior in different religious groups. (p. 706). As the Muslim consumers become more knowledgeable of their religion, it is inevitable that they will be more particular in the type of products and services they consume or use. Shafie and Othman (2006) assert that as consumers become increasingly more sophisticated in dietary and health-related issues, the relevance of informative labeling and the belief in the right to be adequately informed will strengthen (p. 3). Abul Hassan and Abdul Latiff (2008) found in their research about Islamic Marketing Ethics and Its Impact on Customer Satisfaction in the Islamic Banking Industry that Islamic marketing ethics based on the principles of justice and equity in Islam differs from secular ethics in many ways. They discussed the three characteristics of market ethics from the Islamic perspective. Exhibit 3 shows a summary of the three perspectives.
Exhibit 3: Islamic Market Ethics
First, Islamic ethics are based on the Quran commandments and leave no room for ambiguous interpretation by marketing executives to suit their individual whims and desires. Second, the main difference is their transcendental aspect of absoluteness and non-malleable nature. Third, the Islamic approach emphasizes value-maximization in view of the greater good of the society rather than the selfish pursuit of profit maximization. Such properties grant Islamic ethics a tremendous capacity to penetrate human conscience and are capable of influencing the behavior of marketing executives from within.
Abul Hassan, AbdelkaderChachi and Abdul Latiff, Salma (2008).Islamic Economics Research Centre, King Abdulaziz University, p. 30 In short, the concept of worship in Islam is comprehensive; it extends beyond the five compulsory prayers. All activities and transactionsproduction consumption, and exchangeare considered worship as long as they are performed in the way God decreed. Human beings were created to implement Gods vision on this earth through their behavior and transactions supported by the economic, social, and political institutions or organizations. Therefore, a socio-economic institution or organization, such as the market that ensures or increases the welfare of mankind is not an alien concept in Islam (Samad, n.d., p. 56).
2.7. The Market from an Islamic Perspective The market from an Islamic perspective is an institution or a channel of delivering objectives that are maximizing financial goals (maximization of the profits and utilities of the parties concerned) as well as ensuring a reward in the world hereafter (by providing greater well-being for mankind in this world). The objectives are not simply an exchange of goods between the two parties as implied in conventional wisdom; market is considered a sacred institution that combines worldly transactions with a reward hereafter (Samad, n.d., pp. 57-58). The market shows several characteristics as shown in Exhibit 4.
41 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase Exhibit 4: Characteristics of a Market According to Islam
Production and consumption in an Islamic market are not unrestricted sets of goods and services. A participant buyer or selleris a submissive slave of God. The participants are duty bound to implement Gods order on the earth as Gods representatives. Participants in the market are not free to choose transactions of any goods and services. The pursuit of productions and exchange of goods are guided by the Islamic code of conduct. Market participants will not demand, buy and exchange goods and services that are forbidden to consume, such as alcohol, gambling, magic, etc Transaction of these types of activities is undesirable from a moral stand of social welfare. In the Islamic market, each participant should and must observe due measure in the delivering of goods. The violation of due measure is punishable by legal, as well as divine law. It is a sin in Islam if the participants do not observe due measure and/or weight You shall establish justice; do not violate the law. (Al Quran: 55:9). A seller in the Islamic market is not entitled to cheat his counterpart by showing one kind of goods and then delivering another kind (inferior) of goods. Market participants are prohibited from telling a lie while selling and buying goods and services. A seller is not entitled to engage in the adulteration of food. Adulteration of food is an act of abomination and is a sin. A market participant in Islam is prohibited from engaging in an act of bribery in any mode of production and transaction You shall not take each others' money illicitly, nor shall you bribe the officials to deprive others of some of their rights illicitly, while you know (Quran: 2:188). Each participant in a market is guided by his/her self-interest. Islam recognizes the spirit of self-interest in its own domain. When the self-interest of a person or persons becomes impediment to his/her well-being in society or in the world hereafter, then the notion of self- interest is replaced by a notion of greater self-interest. Each participant in the market is guided by two motivational forcesone material and the other spiritual and or moral. Islam provides a balance between material and spiritual wellbeing. This balance is because Islam recognizes the welfare of individuals in this world and the world hereafter. The real attainment of happiness lies in the success of achieving eternal happiness in the world hereafter. Source: Samad (n.d., pp. 58-59)
2.7.1. The Five Ps of the Marketing-Mix from the Islamic Perspective Abul Hassan and Abdul Latiff (2008), made an attempt to analyze the five Ps of marketing ethics within the context of marketing as determined by Islamic ethics. The five Ps are: product, price, promotion, place and people (p. 30).
Product/ Production Process The Islamic perspective incorporates moral and transcendental elements within the production decision-making process in product development and is guided by the principles of Islamic business ethics. These principles dictate that The product should be lawful and not cause dullness of mind in any form. The product should be asset backed. The product must be deliverable since the sale of a product is not valid if it cannot be delivered. There is a need to identify extra cost-added features that might materially change the product or impact the buyers purchase decisions. Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 42 Buyers and sellers are to discharge their obligations, financial and otherwise, in good faith, and should be based on principle of the justice, fairness and equity (Abul Hassan and Abdul Latiff, 2008, pp. 30-31). Under the Islamic approach, the production process has to be guided by the criteria of the value and the impact of the product upon the whole society. Miller (1996), as cited by Abul Hassan and Abdul Latiff (2008) suggests that the main thrust behind unethical decision-making on the part of business persons to produce sub-optimal products is usually some form of cost conscious strategy. The Islamic perspective, on the other hand, encourages a societal and welfare approach decisions rather than decisions based on the profit maximization.
Product Pricing Pricing policies are formulated to exploit and manipulate human psychology as witnessed by observed common practice in the market place, whereby the recommended retail price printed on a product is often substantially higher than what retailers actually charge. The aim of such pricing policies is to give customers a false impression that they are in fact getting a bargain (Shaw, 1996 as cited by Abul Hassan and Abdul Latiff, 2008, p. 31). This type of practice is banned under Islamic law. Islam prohibits getting something too easily without hard labor, or receiving a profit without working for it. Furthermore, the following acts mentioned in Exhibit 5 are not allowed.
Exhibit 5: Illicit Activities in Product Pricing
1. It is prohibited to change a price without altering the quality or quantity of the product because this is cheating the easy-going customer for illicit gain. 2. Islam also prohibits false propaganda or publicity on the part of marketers regarding the position of demand and supply. Source: Abul Hassan and Abdul Latiff, 2008, p. 31.
It should be pointed out that Islam does not prohibit price controls and manipulations to meet the needs of the market. It means that the Islamic ethics allows some time in which to charge higher prices as a result of natural scarcity of supply of a given commodity or setting price ceilings to curb opportunistic tendencies among merchants (Niazi, 1996 cited in Abul Hassan and Abdul Latiff, 2008, p. 32). Islamic, self-operating mechanism of price adjustments and healthy competition are to be encouraged. However, the essential conditions for the successful operation of such a mechanism dictate that there should be no corner market, no hoarding, no unjustified price manipulation, and no restriction on trade.
Price in Islam Mortazavi (2004, August 8-13), in his paper Islamic Economics: A Solution for Environmental Protection, manifests that Islamic social justice demands regulation of the market to guarantee that prices remain fair in the marketplace. Therefore, the invisible hand of the capitalist market is supplanted by the visible hand of market regulators in Islamic economics. Capitalism strives for competitive outcomes: competitive markets and competitive market prices. Such outcomes are considered desirable and hence are not subject to government control. In contrast, Islamic economics does not rely on market prices, but strives for fairness in the marketplace. Consequently, to guarantee the fairness in prices, Islam prohibits hoarding, black markets, and the concentration of market power in any form and fashion. That is, there is no room for monopolies, oligopolies, and cartels in Islamic economics. Islam encourages individual exchanges and trade, in general, and that this exchange must be legal, fair, and based on honesty and mutual consent. Therefore, the exertion of force and economic power in business transactions are totally banned (Para: Islam and Markets).
43 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase Product Promotion Rules Abul Hassan and Abdul Latiff (2008, p. 33) stress, in their research, that there is no room in Islam that justifies any cover up of deceptive promotional behavior. The holy Quran condemns all forms and shapes of false assertion, unfounded accusation, concoction and false testimony. In terms of Islamic marketing ethics, it is unethical for the sales person or customer relation advisor (CRA) to over-praise his/her products and attribute to said products qualities which they do not possess. Furthermore, giving a false impression of any kind to promote or sell a product is strictly prohibited within the Islamic ethical framework of international marketing practices. Samad (n.d.) asserts that the advertisement that provides the information of genuine product differentiation and helps increase moral values is welcome (p. 63). Therefore, in the area of product promotions, Islamic marketing ethics follows the three rules shown in Exhibit 6.
Exhibit 6: Three Rules for Product Promotion in Islamic Market Ethics
(i) Avoidance of false and misleading advertising; (ii) Rejection of high pressure manipulations, or misleading sales tactics; and, (iii) Avoidance of sales promotions that use deception or manipulation. Source: Abul Hassan and Abdul Latiff (2008, p. 33).
Abul Hassan and Abdul Latiff (2008) contend that according to Islamic principles, marketers are required to disclose all faults in their goods, whether obvious or hidden; to do otherwise is to act fraudulently. It is obligatory for the seller to reveal all known defects which cannot be seen on the surface and cannot be found out by the cursory glance to the purchaser (p. 33). Adding to the aforementioned conditions, 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 methods are unethical since they are utilized purely to exploit the basic instinct of consumers worldwide with a view to gain profits and greater market share. Furthermore, Islamic ethics strictly prohibits stereotyping of women in advertising, and excessive use of fantasy. The use of suggestive language and behavior, and the use of women as objects to lure and attract customers are also not allowed (ibid, p. 34).
Place: Distribution Channels The ethical dimensions of decision-making pertaining to distribution are of great significance in the area of marketing. Physical distribution can be viewed as an integrated collection of information, people, equipment, and organization. With respect to distribution of product, Islamic institutions adopt the following principles: (i) Not to manipulate the availability of a product for purpose of exploitation; (ii) Not to use coercion in the marketing channel; (iii) Not to exert undue influence over the re-sellers choice to handle a product; (iv) Use of packaging designs with adequate security and protection for the product; (v) Appropriate packaging; (vi) Not to transport dangerous and toxic products on public highways; and, (vii) Not to create a burden for the final customer in terms of higher prices and delays. Within the Islamic ethical framework, the main aim of distribution channels should be to create value and uplift the standard of living by providing ethically satisfactory services (Abul Hassan and Abdul Latiff, 2008, pp. 34-35).
People Islam emphasizes the importance of free and independent judgment on the part of the customer. Abul Hassan and Abdul Latiff (2008) affirm that the society at large should not be deprived of honest, Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 44 free from coercion marketing information. A customers right to acquire such information is his/her right and is indicative of the status given to him/her by Islam, as well as of the ingrained rights of his/her wealth which he/she spends in purchasing products and services. It is the responsibility of the marketers not to resort to any form of coercion and they must, under all circumstances, have a regard for the intellectual integrity and a higher degree of consciousness of the consumers to ensure that the hard earned money of customers is not wasted (p. 35). Coercion or Ikrah is to compel a person to do a thing without his/her consent. It follows therefore that whenever some coercive force is applied for the purposes of concluding a global marketing deal, the fundamental and vital condition of mutual consent remains unfulfilled and the resultant transaction is unethical and unlawful.
3. Research Methodology Islam is the dominant religion in Syria, and people are committed to the religion on different levels. Some perform all of their religious rites while others choose to perform some. It is important to understand that Islam is more than a religion; it is a way of living; that is why it might have a huge effect on the individuals daily life activities. The buying decision is simply one of the daily activities practiced by Muslims; consequently, marketers tend to define the level of effect religious beliefs have on the target market. Moreover, they tend to uncover the relation between religious commitment and how it would influence or even change the decision to buy certain products. This research is exploratory in nature and uses a questionnaire as a tool to collect primary data from a conveniently selected sample of Syrian consumers. The questionnaire, designed for this project, has the main objective of studying the effect of religion on consumers behavior and to see to what extent should the marketers consider this cultural item while deciding on the marketing strategy for any product.
3.1. Questionnaire Design The survey tool used in the current research project is a systematic and structured questionnaire that is divided into three sections 1. Section one is designed to assess respondents demographics. In this research survey, questions one to six are demographic dimensions. 2. Section two is designed to assess the respondents attitudes and behavior covering parameters like the degree of likeness, hate, acceptanceetc. In this survey, questions seven to eighteen are attitude and behavior questions. 3. Section three is designed to assess implementation issues and aims to collect suggestions or actions that should be taken into consideration in a certain situation. In this survey, questions nineteen to twenty four are implementation questions. 4. Question twenty five has the purpose of allowing respondents to comment, if they desire so, about the subject matter of the research.
3.2. Sample Selection The questionnaire was distributed to 150 Syrian individuals selected conveniently based on their willingness to fill in the survey. The respondents work in the services as well as in the manufacturing sectors. However, only 112 questionnaires were useful for the purpose of the current research. 38 questionnaires were either incomplete, or erroneously filled, or simply ignored due to the sensitivity of the topic in the Syrian market. The response rate was around 74.67%. Filled questionnaire were sorted and coded. Data entry was performed using SPSS Statistical Package for Social Science tool. 45 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase 4. Results and Findings 4.1. Demographics Findings showed that respondents are 68.80% males and 31.20% females. Two age categories are salient, namely, the respondents age in the brackets 26 & 30 years and 31 & 35 years. These two categories consist of 93.8% of the overall sample. Respondents who are between 26 and 30 years old form 62.5% of the sample, while respondents who are 31 to 35 years old form 31.2% of the sample. The average age is 28 years, indicating that the representative sample of respondents for this research is mature enough to give personal opinions and feelings about their religion and its role in their decision making. Results also show that 62.5% of the respondents are single, 31.2% of them are married, and 6.2% of them are either divorced, widowed or separated. Moreover, 31.2% of the respondents have 1 or more years of college, and 62.5 % hold a bachelor degree, while 6.2% of them have a masters degree. This distribution indicates that the respondents sample has an adequate level of education to provide their opinions. Furthermore, 75 % of the respondents are employed, while 6.2% are self- employed and the same percentage are either out of work, or looking for a job, or are house wives or other. While 25% of the respondents have a monthly income level below $1,000, 56.2% of them earn between $1,001 and $2,000, and only 18.8% of the respondents earn above $3,000.
4.2. Attitude and Behavior Table 1 shows that when respondents were asked if they are fulfilling their religious duties, 87.5% answered in the affirmative. Only a small minority of 12.5% of the respondents responded as being undecided. Also all respondents (100%) agreed that religion is an important part of their lives. This result is very encouraging due to its importance to the current research. While, when respondents were asked if religion affects their personal actions, 87.5% of them agreed. An equal percentage of the remaining respondents, 6.2%, were either undecided, or disagreed. Moreover, 93.8% of the respondents take the purchase decision themselves and only 6.2% of them were undecided. Findings in Table1 also show that 81.20% of the respondents agreed that they would like to know about the product's country of origin, 12.5% of them were undecided, and only a small minority of the respondents, or 6.2%, was not interested to know. 50% of the respondents agreed that they prefer to purchase products originating in the Islamic countries, 18.8% of them were undecided, and 31.2% of them disagreed.
Table 1: Respondents Attitude and Behavior towards Religion (1)
Statement Frequency Percentage, % I Fulfill my Religious Duties Agree 35 31.2 Uncertain 63 56.2 Disagree 14 12.5 I believe that religion is an important part of my daily life Agree 112 100.0 Uncertain 0 0.0 Disagree 0 0.0 Religion governs personal actions Agree 98 87.6 Uncertain 7 6.2 Disagree 7 6.2 I take the purchasing decisions Agree 105 93.8 Uncertain 7 6.2 Disagree 0 0
Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 46 Table 1: Respondents Attitude and Behavior towards Religion (1) - continued
I prefer to know the origin of the product bought Agree 91 81.3 Uncertain 14 12.5 Disagree 7 6.2 I prefer to buy products that originate from Islamic countries Agree Uncertain 56 50.0 Disagree 21 18.8 35 31.2
Table 2: Respondents Attitude and Behavior towards Religion (2)
Statement Frequency Percentage, % Religion can affect my purchasing decision Agree 70 62.5 Uncertain 42 37.5 Disagree 0 0 I seek "Halal" sign when buying food items made in western countries Agree 105 93.8 Uncertain 7 6.2 Disagree 0 0 Prefer to purchase food items from Islamic countries Agree 91 81.3 Uncertain 14 12.5 Disagree 7 6.2 I will not buy a western brand Agree 0 0 Uncertain 42 37.5 Disagree 70 62.5 I will participate in boycotting campaigns for products made in countries that offend Islam Agree 77 68.8 Uncertain 21 18.7 Disagree 14 12.5 Religion can affect some of my buying decisions Agree 98 87.5 Uncertain 14 12.5 Disagree 0 0
Table 2 shows that 62.5% of the respondents agreed that their religion affects their purchase decision; however, 37.5% were undecided. The undecided respondents seem not to offer their opinion due to the governing situation in Syria. Also, 93.8% or the grand majority of the respondents seek the Halal sign or symbol marked on the products they buy. Only 6.2% of the respondents were undecided. Moreover, 81.2% of the respondents agreed that they prefer food items originated from Islamic countries, 12.5% of the respondents were undecided, and 6.2% of them disagreed. The majority of the respondents, or 62.4% of the sample, stated that they would t buy western brands. The remaining 37.5% were undecided about the issue in question. The results of this question show that even if the respondents are strongly attached to their religious values, it has nothing to do with their buying western brands. The finding makes sense since the majority of the citizens in the Arab region seek western brands as part of their daily life habits. Furthermore, when the respondents were asked if they would participate in boycotting the products made in countries that offended Islam, 68.7% agreed, while 18.8% of them were undecided and 12.5% of them disagreed. Finally, when the respondents were asked if religion might affect their purchase decision, 87.5% of the respondents agreed, while 12.5% of them were undecided. 47 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase 4.3. Implementation 4.3.1. Religious Duties 93.8% of the respondents practice their religious duties by visiting the house of God periodically or celebrating religious events. Only 6.2% do not visit the house of God; however, they may be practicing their religion at home.
4.3.2. Contradictions between Purchase Decisions and Religion 81.2% of the respondents believe that sometimes there exists a contradiction between their religious views and the purchase decision, while 18.8% consider that these contradictions never existed.
4.3.3. Consideration of Religious Views
Table 3: Consideration of Religious Views
Frequency Percent Food items 21 18.8 Services 14 12.5 In every product 70 62.5 Never 7 6.2 Total 112 100.0
Table 3 shows that when the respondents were asked which product purchase is affected by religion, 18.8% considered food items, 12.5% considered services, 82.5% considered that it is in every product they purchase, and 6.2% of them considered that religion never affects their purchase decision.
4.3.4. Priorities in the Buying Decision 12.5% of the respondents thought about their own benefits as first priority while 87.5% of the respondents considered that their religious values come in the first place.
4.3.5. Priorities During Purchasing
Table 4: During the Purchase Decision
Frequency Percent Religion comes first 35 31.2 Personal values come first 7 6.2 I try to balance between them 70 62.5 Total 112 100.0
Table 4 shows that 31.2% of the respondents considered that religion comes first during a purchase decision, 6.2% of them considered that their personal values comes first, while 62.5% considered that they would try to balance between both values.
4.3.6. Religion and Personal Preference Results show that an equal percentage of 12.5% of the respondents considered that religion does and does not affect their preference. However, 75% of the respondents considered that religious beliefs do sometimes affect their preferences.
4.4. Survey Cross Tabs Cross tab Products of Islamic Countries versus Importance of Religion
Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 48 Table 5: Products of Islamic Countries versus Importance of Religion
Products of Islamic countries versus Importance of religion Cross tabulation Importance of religion Total Strongly Agree Agree Products of Islamic countries Agree Count 42 14 56 % within Importance.Of.religion 60.0% 33.3% 50.0% Undecided Count 14 7 21 % within Importance.Of.religion 20.0% 16.7% 18.8% Disagree Count 14 21 35 % within Importance.Of.religion 20.0% 50.0% 31.2% Total Count 70 42 112 %within Importance.Of.religion 100.0% 100.0% 100.0%
Table 5 shows that 50% of the respondents who consider religion to be important in their life agree to the fact that they search for products manufactured in Islamic countries, while 31.2% of the respondents who consider religion as important in their life disagreed that they would only seek products made up in Islamic countries. Such a finding shows that religion is moderately controlling the respondents decision of purchasing products.
4.4.1. Other Cross-Tab Results Religion affects Purchase versus Importance of Religion Results show that 62.5% of the respondents who consider religion to be important in their life agree to the fact that religion affects their purchases, while 37.5% of the respondents who consider religion as important in their life were undecided about religion affecting their purchases decisions. Seeking Halal Sign/Symbol on Products versus Importance of Religion Results show that 93.8% of the respondents who consider religion to be important in their life agree to the fact that they seek the Halal trademark on the products they purchase, while 6.2% of the respondents who consider religion as important in their life were undecided about the fact that they seek Halal trademarks on their products. Readiness to participate in a Boycott versus Importance of Religion Results show that 68.7% of the respondents who consider religion to be important in their life agree to the fact that they will participate in boycotting campaigns on products made in countries that offend Islam, while 18.8% of the respondents who consider religion as important in their life were undecided, and 12.5% disagreed about the aforementioned issue.
5. Conclusion Many important findings of the current research deserve to be reviewed. The outcomes are directly related to the purpose of the project which is first to study the effect of religion on consumers behavior, and second, to assess to what extent marketers should consider the observed cultural traits while deciding about the marketing strategy for any product. Results show that all the respondents considered that religion to be important in their life. Such a fact also shows that religious views can play an important role in affecting the respondents purchasing decision or choice of products. For example, 93.8% of the respondents seek in their choice of food products with the Halal trademark sign or symbol. Seeking the Halal symbol leads Syrian consumers to be selective in their buying behavior. The lack of the aforementioned symbol will influence many consumers into not buying food products at all. As for other products, not related to food, consumers will base their choices on personal tastes and preferences, although 75% of the respondents believe that their religious views would sometimes affect their taste and preference. 49 Hussin Hejase, Bassam Hamdar, Mohammed Orfali, and Ale Hejase In addition to the above results, 68.7% of the respondents, and no matter what their religious views are, are going to participate in boycotting the products emanating from countries that offend Islam. However, some respondents showed different attitude because they consider that some products are indispensable. The aforementioned results are but a sample of facts that show the importance of religion as one of the cultural elements that have to be taken carefully into consideration while setting the strategy for any product to be introduced into an Islamic market. Islamic markets are characterized by the important role religion plays in the life of the individuals as a whole, and in how that religion would affect their buying behavior and their purchase decisions. If the marketer doesnt set a plan to match the religious views of the customer, his/her products will fail and the companys image and financial position will be harmed. The researchers would like to emphasize, at this point, that Muslims view religion as a way of living, and that marketers have to consider the overall wellbeing of the society as opposed their self- interests in order to succeed in the markets of the Arab region. The current study helped define the relation between the customers level of religious commitment and the corresponding buying behavior in the Syrian market. It also helped define the strength of the aforementioned relation and whether the marketers need to alter their strategy accordingly. The interrelationship between the four Ps of the marketing mix, the extended Ps, and Islam has been extensively researched. It has been shown, in the current research, that the marketing mix and Islam has strong relationship in countries that have the same ethical and religious background, for example, Syria (Mainly in the Arab world). Although marketing mix principles emphasize creating new ways to get the most of the market and to achieve the best interests of companies, Islamic marketing, in its turn, emphasizes creating ways of life that benefit the society as a whole. As the Muslim consumers become more knowledgeable of their religion, it is inevitable that they will be more particular in the type of products and services that they consume or use. In addition, as consumers become increasingly more sophisticated in dietary and health-related issues, the relevance of informative labeling and the belief in the right to be adequately informed will strengthen. The current research has found that by implementing the major principles of Islamic Shariah, whether to encourage good business intentions and good deeds or to avoid interest, black market, or monopoly from being introduced into the marketing science, marketers can better understand the culture and the driving force of the markets. Moreover, marketers are able to better design suitable strategies that affect the target markets, in addition to play a major part in the wellbeing of the society. Although this research is considered the first step, within the Middle East region, toward further research in the field of marketing and religion, it provides a solid corner stone for more in-depth research in the field of Marketing and Religion. Furthermore, one important research implication is that results of the current study are available for comparison with other research outcomes emanating from either Pakistan or Malaysia where similar researches have been conducted.
6. Recommendations This research has shown that people who base their decisions on religious beliefs tend to allow these beliefs influence their buying behaviors; such a behavior is convenient to marketers and businesses using marketing campaigns governed by religious principles. However, it is important to note that organizations have their own set of values emanating from their corporate social responsibility, and that most of the time, take into consideration the values of the surrounding community. Therefore, employees are trained and educated to follow organizational regulations which are aligned with their own moral principles and professional training. Based on the aforementioned reasoning the following is recommended: Marketing Mix: An Exploratory Research in Syria from an Islamic Perspective 50 1. Design induction sessions for all employees during which the organization introduces its marketing campaign so as to build a value system that is sensitive to the surrounding community. 2. Provide modified Islamic marketing training to all employees on a continuous basis. It is a must to use case studies and vignettes to align employees beliefs with organizational values. Such an alignment ensures harmony, loyalty and better judgment when dealing with customers who are influenced by religious values. 3. Encourage universities to prepare their students on the topics of general marketing, Islamic marketing, and organizational corporate responsibility. Graduates of such universities are more easily aligned with organizational cultures seeking to deal with the community based on good intentions and sound selling campaigns. 4. Encourage organizations to design a clear and fair organizational policy to safeguard itself from unethical behavior and its consequences. 5. Encourage organizations to design an adequate and rewarding Islamic marketing campaign that is aligned with human resources policies to enrich employees performance based on good conduct and ethical behavior. It is worth mentioning that the researchers have encountered several limitations, including 1. Difficulty in distributing more survey questionnaires due to the current conditions of the country and the sensitive nature of the topic. 2. Results can not be generalized because of its exploratory nature. 3. Limitations in time because of the assigned deadline to deliver the research. It is advisable to conduct a similar research across selected Middle Eastern countries in order to assess a cross country comparison on the topic. Moreover, it is recommended to relate Islamic marketing principles to corporate governance and its impact on employees performance. The implications of the current study toward academic research are noted in adding a new contribution to the field of Islamic marketing and in serving as a seed towards more investigative and exploratory research necessary in the Middle East since the existing rich body of knowledge is mostly applied to either Pakistan, India, Malaysia or to Egypt, Saudi Arabia, and to Turkey. The authors would like to acknowledge the constructive criticism and editing performed by Mrs. Henriette Skaff, senior editor at AUSTs Publications Department.
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