Marketing and its Social Implications - Concerns and Initiatives

Companies adopt marketing practices to delight their customers, develop customer relationships, and generate revenues and profits. However, sometimes, companies focus solely on their selfish motives of growth and prosperity forgetting about customer welfare and welfare of the society. Marketers are criticized for such practices and the negative impact created on the society. The practices include high prices of products, high distribution costs, high advertising and promotion costs, excessive mark-ups, deceptive practices, high-pressure selling, questionable products, planned obsolescence, and poor service to disadvantaged customers. Marketers are criticized for creating false wants and materialism, scarcity of social goods, and cultural pollution. They are accused of harming and reducing competition. In this age of social marketing, companies should consider societal concerns of various stakeholders and maintain a balance between their own objectives of generating revenues and profits and long-term societal requirements. This will help in sustaining the society.

Examining the Development of Banking Sector Regulations and Supervision Practices across BRICS and G7 Countries

The study examines the development in the banking regulatory practices across BRICS nations over the period 2000–2019. The convergence and sustainability of the regulatory framework in BRICS nations to G7 norms have also been assessed. The analysis is based on five key regulatory measures, which include activity restrictions, entry requirements for a new bank, foreign bank entry restrictions, capital stringency, and deposit insurer powers. The study constructs the regulatory indexes based on the central bank responses to the Bank Regulation and Supervision Survey (BRSS) conducted by the World Bank. To estimate the indexes, the study follows Barth, Caprio, and Levine guidelines. The result reveals that the regulators of BRICS countries impose higher restrictions on bank activities than in the G7 nations. Furthermore, the United Kingdom and Brazilian bank regulators are more liberal and imposed fewer restrictions on insurance activity only. In addition, getting a bank license is tough in both regions. Regulators allow only fit and proper applicants into the banking domain. Furthermore, the authors find that the requirements for capital are becoming more restricted in BRICS nations between 2003 and 2019 to align with Basel capital accords, relative to G7 nations. The study documents a convergence in the banking licensing requirements, and limitations on foreign bank entry and official supervisory powers in the BRICS countries with the G7 nations. The study suggests that the regulators must offer freedom to banks’ activities with increasing supervision, and it boosts the competition in the banking sector and enhances customer welfare. Furthermore, the policymakers need to redesign the deposit insurance mechanism and equip deposit insurers with more powers to enhance the safety of depositors’ interests and minimize the moral hazards in the banking sector in both regions.

Analisis peran pembiayaan BMT Syariah Al-Azhaar terhadap peningkatan kesejahteraan anggota perspektif Maqashid Syariah

This study aimed to analyze the role of financing products at BMT Syariah Al-Azhaar Lubuklinggau city, which was rolled out to members and customers of BMT Syariah in improving customer welfare. This study uses a descriptive qualitative method with a case study approach at BMT Syariah Al-Azhaar, Lubuklinggau City, as a research object. The sample used in this study is the customers/members of BMT Syariah Al-Azhaar who get financing products. The data collection of this research used an in-depth interview method. The data obtained were then analyzed using descriptive analysis. The results of this study are BMT Syariah Al-Azhaar, through financing, plays a significant role in improving the welfare of its members. Interest is measured using five indicators of the maintenance of basic needs based on the objectives of maqashid sharia, namely the care of religion, the maintenance of the soul, the maintenance of the mind, the maintenance of offspring, and the maintenance of a property. The increase in welfare experienced by members varies. In general, there is an increase in welfare as measured by the five indicators.

Strategic priority-purchasing and joining rules in a retrial queue

This paper considers a retrial queueing system with a pay-for-priority option. A queueing-game-theoretic model that captures the interaction among the customers, the service provider (SP) and the social planner is developed. We obtain the equilibrium strategy of customers for any fixed priority premium and identify the unique Pareto-dominant strategy. The optimal pricing strategies for the SP and the social planner are derived and compared extensively. Interestingly, we find that the equilibrium outcome of customers is non-monotone in the service reward and the profit of the SP is bimodal in the priority premium. We reveal the fact that the SP’s optimization makes the system more congested than what is socially desirable. Finally, numerical examples indicate that the customer welfare can be improved by providing priorities when the market size is large.

PERAN PEMBERDAYAAN BANK SAMPAH DALAM ISLAM (STUDI KASUS PADA BANK SAMPAH INDUK SURABAYA)

This research aims to describe the role of Bank sampah induk Surabaya in empowering the customer's economy from an Islamic perspective. Viewed from an increase in customer empowerment by maddi (material) and ma'nawi (non material). This research uses a descriptive qualitative approach with a case study method. The results of this study were that the four informants experienced increased fulfillment of basic needs, increased income, increased strength, and increased charity, as well as increased environmental hygiene security after joining as customers of Bank sampah induk Surabaya. Maddi (material), managing and sorting its own waste into an economically valuable item and can be saved, it is clear that the empowerment carried out by the Bank Sampah Induk Surabaya is able to improve the economy of its customers in groups and individuals. and ma'nawi (non material), the maintenance of environmental security is the most obvious impact felt by the reduction in the amount of waste because people are beginning to realize the importance of protecting the environment. In addition, by saving in a waste bank, customer charity will also increase along with the increase in people's income.Keywords: Role of Waste Bank, Empowerment in Islamic Perspective, Economy of Natural Resources and Environment, Customer Welfare

Digital Disruption in Banking

This review surveys technological disruption in banking, examining its impact on competition and its potential to increase efficiency and customer welfare. It analyzes the possible strategies of the players involved—incumbents and FinTech and BigTech firms—and the role of regulation. The industry is facing radical transformation and restructuring, as well as a move toward a customer-centric platform-based model. Competition will increase as new players enter the industry, but the long-term impact is more open. Regulation will decisively influence to what extent BigTech will enter the industry and who the dominant players will be. The challenge for regulators will be to keep a level playing field that strikes the right balance between fostering innovation and preserving financial stability. Consumer protection concerns rise to the forefront.

Pengaruh Penerapan Nilai-Nilai Islam Pada Asuransi Mandiri Bank Syariah Mandiri Terhadap Tingkat Kesejahteraan Nasabah (Studi Pada Bank Syariah Mandiri Watampone)

This study discusses the Effect of Islamic Values in Bank Syariah Mandiri Mandiri Insurance on Customer Welfare Levels (Study at Bank Syariah Mandiri Watampone). This study aims to determine how the effect of Islamic Values Implementation on Bank Syariah Mandiri Mandiri Insurance on Customer Welfare Levels. The results of the analysis show that the application of Islamic values to Mandiri Insurance simultaneously has a significant effect (0.054 0.1) and the level of welfare of customers (0.393). Six other variables can encourage Mandiri Insurance to improve customer welfare. The six variables are Al-Hurriyah / Freedom (t = 1,713), Al-Musawah / Equation (t = 0,304), Al-'Adalah / Justice (t = 0,839), As-Sidqh / Honesty (t = 1,083), Al -Ridha / Willingness (t = 0.345), and Al-Kitabah / Written (t = 1.244) with the level of welfare of the customer. The result can be used as a reference to improve the welfare of Bank Mandiri Syariah customers in the Bone branch.

Analysis of the Effectiveness and Prospects of Micro Credit of Baitul Qiradh in Banda Aceh City

This study aims to analyze the effectiveness and prospects of the microcredit of Baitul Qiradh in Banda Aceh City. Data gathering was carried out by distributing questionnaires to 140 customers from seven Baitul Qiradh. Furthermore, the data were analyzed descriptively using the average method. The study found that in general customers had a good assessment of microcredit channeled by the non-bank financial institutions. Unless useful to encourage the growth of their businesses, microcredit also has an impact on improving their standard of living and well-being. So that they are satisfied with the credit services they receive. Thus it can be concluded that microcredit at Baitul Qiradh in Banda Aceh not only effective for business improvement and customer welfare but also has good prospects in the future.Keywords: Baitul Qiradh, Microcredit, Efectiveness and Prospects.

The Real Cost of Credit Constraints: Evidence from Micro-finance

The paper studies the effect of a law that banned micro-credit lending in the state of Andhra Pradesh in India. Regions in Andhra Pradesh are matched to regions that did not face the ban. A difference-in-difference estimation of changes in matched regions is used to establish a causal impact on average household consumption in the region. The results show that the average household consumption in the ban-affected regions dropped by 15% immediately after the ban compared to the matched regions, and persisted for four quarters. The result is robust to cross-sectional variations in regional exposure to micro-finance prior to the ban, variation in rural and urban locations and variations in matching strategy. The analysis points to a ban as a sub-optimal intervention to improve customer welfare.