Keywords

Customer Dependent Factors, Firm Originated Factors, Digital Marketing Success

Introduction

Organizations continuously face new forms of transformation. The latest one, i.e., digital transformation, is acknowledged with advent of digital technologies that changed the way in which operations are performed (Morakanyane, Grace & O'Reilly, 2017). One of the most important veins of digital transformation wave is digital marketing (Peter & Dalla-Vecchia, 2021). In contrast to traditional marketing, the aim of digital marketing is to serve customers quickly based on customer feedback (Durmaz & Efendioglu, 2016). Numerous benefits of digital marketing were reported in the literature like customer quick access to product and service, increased brand awareness, decreased communication costs, improved customer satisfaction, enhanced customer loyalty and more engaged customers (Khan & Islam, 2017; Durmaz & Efendioglu, 2016; Al-Hawary, 2013; Al-Hawary & Aldaihani, 2016; Afrina, Sadia & Kaniz, 2015) as well as expanded market segments (Shah, 2018).

Accordingly, what organizations should do to attain such benefits? In other words, what factors affect digital marketing success? An instant review of the literature emphasized different related factors such as firm’s logistics (Kiang, Raghu & Shang, 2000), perceived ease of use, perceived usefulness, perceived encouragement, perceived integrity of digital marketing and Internet shopping (Lee & Turban, 2001; Yang, 2005; Kwon & Wen, 2010; Al-Hawary et al., 2011; Al-Hawary et al., 2013; Al-Hawary & Mohammad, 2010; Al-Hawary & Al-Smeran, 2017; Al-Hawary & Harahsheh, 2014; Al-Hawary & Hussien, 2017; Hasan et al., 2021). Other factors comprise customer attitudes toward technology, customer innovativeness and word of mouth (Jahanmir & Cavadas, 2018), customer privacy and security and government legislations (Al-Hawary & Obiadat, 2021; Al-Hawary & Alhajri, 2020; Al-Hawary & Al-Khazaleh, 2020; Altarifi et al., 2015; Nasri & Charfeddine, 2012), digital marketing skills (Royle & Laing, 2014), customer intrinsic motivation and digital marketing performance (Fard et al., 2016). In addition to relative advantages of digital marketing (Nuseira & Aljumahb, 2020), financial, product, and delivery risks (Khan, Liang & Shahzad, 2015). These are some examples of factors related to digital marketing success. An important contribution to the literature is to provide empirical evidence on casual relationships between these factors and digital marketing success. Since no room to investigate the effects of all these factors, the current study is concerned with some factors distributed on firm-originated and customer-dependent factors. Specifically, this study aims at testing the effects of customer word-of-mouth, perceived ease of use, perceived usefulness, customer innovativeness, top management support, organizational culture, firm’s logistics and firm’s technical skills on digital marketing success. Achieving the objectives of the study enriches the literature through highlighting the extent to which these factors take part in improving digital marketing success, so that, firms informed on factors play significant role in digitization journey.

Literature Review and Hypotheses Development

Digital Marketing Success

Digital marketing is defined as promoting products or services using Internet or non-Internet-based digital channels and technologies such as social media networks, websites, texts on mobile phones, emails, software applications, display advertising, and search engine marketing (Tiago & Veríssimo, 2014; Afrina, Sadia & Kaniz, 2015; Makrides, Vrontis & Christofi, 2020). In order to ensure digital marketing success, such technologies should be used effectively and efficiently to achieve marketing goals and to certify customer satisfaction and loyalty (Tehci & Ersoy, 2020).

Digital marketing success can be measured based on digital marketing performance (Todor, 2016). Academics and practitioners are interested in measuring marketing performance. Based on a review of the literature, Gao (2010) developed a model to measure marketing performance consisted of the following metrics: brand equity, innovation, market share, customer satisfaction, and customer loyalty. Grønholdt & Martensen (2006) categorized marketing performance measures into four types:

1. Market measures (sales volume, number of current customers, number of new customers, price premium and elasticity, number of new prospects as well as conversion).

2. Financial measures (customer profitability, cash flow, and customer lifetime value).

3. Customer behavior measures (customer loyalty, customer retention, and number of customer transactions), and customer mental measures (brand awareness, perceived quality, customer satisfaction and customer loyalty).

In the context of digital marketing, (Saura, Palos-Sánchez & Cerdá Suárez, 2017) indicated that performance indicators are classified into two types: quantitative indicators (e.g., website traffic) and qualitative indicators (e.g., user experience). The authors identified a number of key performance indicators of digital marketing including type of visitors (new visitors or returning visitors), and traffic of non-branding keywords.

Consequently, digital marketing success is defined for the purpose of this study as effective and efficient achievement of digital marketing goals as measured by increased sales due to digital marketing activities, improved brand awareness, and increased customer satisfaction. Afrina, Sadia & Kaniz (2015) indicated that digital marketing is positively related to increased sales. The most important metrics used to measure digital marketing effectiveness as found by Tiago & Veríssimo (2014) contain brand awareness, customer satisfaction, customer-generated content, as well as Web analytics. Factors affecting digital marketing success in the literature are discussed in the following paragraphs.

Factors Affecting Digital Marketing Success

Reviewing the literature on digital marketing and related topics such as internet marketing, electronic marketing, online marketing, and web-based marketing results in numerous factors affecting digital marketing success. It should be noted that digital marketing is a boarder term refers to both internet-based and non-internet channels, therefore, all factors related to internet marketing, online marketing, online shopping, social media marketing, electronic marketing, web-based marketing and mobile marketing are included in the list of factors affecting digital marketing shown in Table 1. These factors are classified into two categories: customer-dependent factors and firm-originated factors.

Customer-Dependent Factors

Customer demographic characteristics such as gender and age had been reported as factors with significant effects on digital marketing adoption and success. Researchers (e.g., (Fard et al., 2016; Yang, 2005) indicated a significant effect of gender and age on digital marketing. Zaveri (2004) added that female customers use the internet marketing in the first place to purchase clothes, travel ticket, and banking services. Moreover, it was observed that customer intention to use digital channels is one of the most important factors influencing digital marketing success (Hasan et al., 2021; Dahiya & Gayatri, 2017; Zaveri, 2004). A study on factors affecting the adoption of internet banking using a sample of bank customer by Nasri & Charfeddine (2012) found that customer privacy and security and government legislations are critical factors in this regard. Lee & Turban (2001) underlined the importance of customer perceived integrity. Ritz, Wolf & McQuitty (2019) stated that the technology acceptance model is used to explore individuals’ intention to use digital marketing based on determinants such as ease of use and perceived usefulness. Kwon & Wen (2010) indicated that perceived ease of use, perceived usefulness, and perceived encouragement have significant effects on the actual use of social networks. According to Yang (2005), user perceived usefulness, attitudes toward mobile commerce, past adoption behavior and demographics; including age and gender are the most important factors encourage customers to adopt mobile commerce. Hasan, et al., (2021) recognized perceived usefulness, perceived ease of use, perceived monetary value, perceived enjoyment, and Word-Of-Mouth (WOM) as vital factors for digital marketing success. The results of Dahiya & Gayatri (2017) revealed that customer attitudes, customer intention, and perceived behavioral control in addition to subjective norms (family and friends) are factors exert significant effects on the adoption of digital marketing communication. Park and Kim (2003) specified information quality and security affect customer purchase behavior in online shopping. Jahanmir & Cavadas (2018) pointed to customer innovativeness as key driver of digital marketing success. Oliveira et al. (2016) found that social influence, customer innovativeness, performance expectations, compatibility, and perceived security are major determinants of customer adoption and recommendation of mobile payment. In order to investigate the impact of customer-dependent factors on digital marketing success.

H1: Customer word-of-mouth is significantly and positively affects digital marketing success

H2: Perceived ease of use is significantly and positively affects digital marketing success

H3: Perceived usefulness is significantly and positively affects digital marketing success

H4: Customer innovativeness is significantly and positively affects digital marketing success

Firm-Originated Factors

In 2000, Kiang, Raghu and Shang pointed out that the most important functions of digital channels are logistics, product customization, transaction complexity, and product availability. Website features (e.g., online transactions, information availability, and search functions), website promotional strategy (e.g., TV commercials, participation in newsgroups, and keywords for search engines), and Customer Relationship Management (CRM) program (e.g., customer loyalty programs and special offers) were three key factors identified by Wang & Fesenmaier (2006) as success factors of Web-based marketing strategy. Eid, Trueman & Ahmed (2006) classified the factors that exert an effect on the successful implementation of B2B Internet marketing into marketing strategy factors (e.g., top management support), Website factors (website marketing), internal factors (organizational culture, and training), external factors (trust, and security), and global factors (e.g., knowledge of foreign markets, languages, and cultural considerations). According to Eid & El-Gohary (2013), marketing success in electronic marketing context depend on the tools (Internet marketing, e-mail marketing, mobile marketing) used by enterprises for pre-sales and after-sales activities. Royle & Laing (2014) developed a digital marketer model of digital marketing skills comprises both management (e.g., strategic integration of digital marketing skills, and corporate communications) and technical skills (e.g., knowledge of mobile application and search engine optimization). Furthermore, Jahanmir &Cavadas (2018) found that customer negative word-of-mouth is the most influential factor in moving organizations from late to early adopters of digital innovation. The authors suggested that enhancing customer attitudes toward technology through reducing their skepticism leads to increasing digital innovations adoption. Shrestha (2019) found that internal factors (organizational culture, company size, and perceived ease of use) as well as external factors (market dynamics, public infrastructure, competitive pressure, and public attitudes to e-marketing) have significant effects on digital marketing acceptance. For Sanitlou (2019), there is a statistical effect of organizational support on digital marketing adoption. Khan, Liang & Shahzad (2015) reported product information, financial risk, product risk, delivery risk as factors exert significant influences on digital marketing. The following hypotheses were suggested to explore the impact of firm-originated factors on digital marketing success:

H5: Top management support is significantly and positively affects digital marketing success

H6: Organizational culture is significantly and positively affects digital marketing success

H7: Firm’s logistics is significantly and positively affect digital marketing success

H8: Firm’s technical skill is significantly and positively affects digital marketing success

Method

Sample and Data Collection

A sample consisted of 200 managers of medium and small enterprisesin food retailing sector was randomly selected to perform the current study. Therefore, a questionnaire was developed and distributed to collect the required data. Twenty-hundred questionnaires were distributed and 178 questionnaires were used due to incomplete responses. Since the current sample size is greater than 100, Covariance-Based Structural Equation Modeling (CB-SEM) method (Hair et al., 2017) using IBM SPSS Amos, V.22.0 was used for data analysis.

Research Model

Figure 1 show the conceptual model of the study, in which eight variables were understood to show significant effects on digital marketing success. These variables are Electronic Word-of-Mouth (EWOM), perceived Ease of Use (EASE), Perceived Usefulness (PUSE), Customer Innovativeness (INVO), Top Management Support (TMGS), Organizational Culture (ORGC), Firm’s Logistics (LOGIS), and Technical Skills (TECS). Henceforth, eight hypotheses were suggested (H1-H8) by which such variables were knitted to Digital Marketing Success (DMS).

Figure 1: Research Conceptual Model

Measurements

The questionnaire used in this study to collect data, as shown in Table 2, consisted of 24 items used to measure customer-dependent factors, i.e., customer word-of-mouth, perceived ease of use, perceived usefulness, customer innovativeness in addition to firm-originated factors, i.e., top management support, organizational culture, firm’s logistics, and firm’s technical skills. In addition, three items were used to measure digital marketing success. Items were measured using Likert five-point scale, which ranged from 1 “strongly disagree” to 5 “strongly agree”.

Reliability and Validity

Cronbach’s alpha coefficient (α) and Composite Reliability (CR) are two indices of research instrument. According to Yurdugül (2008), the minimum sample size required foralpha coefficientdepends on the largest Eigenvalue resulted from the principal component analysis. That is, ensuring unbiased estimator of alpha required a sample size higher than 100 if the largest Eigenvalue is greater than 3.0. Values of Cronbach’s alpha and composite reliability should be greater than 0.70 (Al-Gharaibah, 2020). Validity was assessed based on convergent validity using the average variance extracted (AVE) with a minimum threshold of 0.50 (Wuryani et al., 2021). As shown in Table 3, the measures used to collect the current data are reliable and valid. Factor loadings are greater than 0.50, alpha and composite reliabilities are greater than 0.70, as well, AVE values are higher than 0.50.

Goodness-of-Fit of Measurement and Structural Models

Following Peterson, Kim and Choi (2020), four fit indices were used in this study: Chi-square to degrees of freedom ratio (CMIN), the goodness-of-fit index (GFI), comparative fit index (CFI), and root mean square error of approximation (RMSEA) are four fit indices used in this study. Good values of CMIN range from 2.0 to 5.0, while good values of GFI and CFI are greater than 0.90. Values of RMSEA should be lower than 0.08 for satisfactory fit and lower than 0.06 for a good fit Cheung, Eggers & de Varies (2021). Based on the results in Table 4, both measurement and structural models showed fit acceptable values.

Empirical Results and Discussion

Research hypotheses are tested using the structural model shown in Figure 2. Eight independent variables with 24 items were linked to digital marketing success as a dependent variable.

Figure 2: Research Structural Model

Detailed results of hypotheses testing are displayed in Table 5. It is clear that electronic WOM (β=0.241, t=3.75, P=0.000), perceived ease of use (β=0.142, t=2.11, P=0.000), perceived usefulness (β=0.201, t=2.67, P=0.000) and customer innovativeness (β=0.173, t=2.56, P=0.000) are significantly and positively affect digital marketing success. These results point out that H1, H2, H3, and H4 were accepted. In other words, customer-dependent factors have significant and positive effects on digital marketing success. On the other hand, the results disclosed significant and positive effects of top management support (β=0.301, t=4.18, P=0.000), organizational culture (β=0.153, t=2.69, P=0.000), firm’s logistics (β=0.272, t=3.89, P=0.000), and firm’s technical skills (β=0.164, t=2.46, P=0.000) have significant and positive effects on digital marketing success. Such results confirmed that H5, H6, H7, and H8 were supported, which means that firm-originated factors have significant effects on digital marketing success.

In line with these results, earlier studies on digital marketing identified numerous factors that exhibit significant effects on digital marketing success such as customer’s electronic word-of-mouth (Jahanmir & Cavadas, 2018; Hasan et al., 2021) and digital marketing ease of use (Ritz, Wolf & McQuitty, 2019; Shrestha, 2019). Other studies signposted that perceived usefulness (Yang, 2005; Ritz, Wolf & McQuitty, 2019; Kwon & Wen, 2010), and customer innovativeness (Jahanmir & Cavadas, 2018; Oliveira et al., 2016) are pivotal factors for digital marketing success. In terms of firm-originated factors, the results of the current study are consistent with previous studies that underscored the importance of some factors for digital marketing success such as top management support, and organizational culture (Eid, Trueman & Ahmed, 2006). Moreover, previous studies reported other factors affecting digital marketing success such as firm’s logistics (Kiang, Raghu & Shang, 2000), firm’s technical skills (Royle & Laing, 2014; Royle & Laing, 2014).

Conclusion

Searching for factors affecting the success of digital marketing, eight factors related to customer and firms were identified on the basis of a literature review and tested using eight hypotheses. It was assumed that customer-dependent factors (e-WOM, perceived ease of use, perceived usefulness, and customer innovativeness) in addition to firm-originated factors (top management support, organizational culture, firm’s logistics, and firm’s technical skills) have significant and positive effects on digital marketing success. The results accepted the hypotheses that customer-dependent factors and firm-originated factors have significant effects on digital marketing success. It is concluded based on these results that frim seek to enhance their digital marketing initiative should consider numerous factors. i.e., factors related to the first itself and their customers. Since customer related factors are out of their control, firms are required to enhance customers’ perceptions through flexible interactivity.

Implications

The current results induced a number of academic and managerial implications. First, the study establish a theoretical and empirical base for researchers who seek to investigate factors affecting digital marketing success. Second, the factors examined in this research was chosen based on a literature review of a number of studies carried out between 2000 and 2021. Hence, scholars may use the same constructs to identify the extent to which such constructs affect digital marketing success. On the other hand, the study revealed two managerial implications. First, firms that are currently implement digital marketing should investigate their digital marketing activities in line with customer related factors such as eWOM, innovativeness, and perceived ease of use as well as perceived usefulness in order to provide customers with rich experience in digital marketing domain. Firms incline to adapt digital marketing are required to consider not only their technology competencies and technical skills in this respect, but also other critical factors such as top management support and commitment along with their organizational culture. Likewise, firms should be aware of customer-dependent factors that have significant effects on digital marketing success.

Limitations and Future Research Suggestions

The current study is limited to its sample, theoretical conceptualization and design. In terms of its sample, the study recruited a sample of marketing managers to evaluate both customer dependent factors and firm related factors. Furthermore, the study is limited to eight factors affecting digital marketing success identified based on a literature review of twenty papers. More studies should be reviewed to ensure a larger list of factors affecting digital marketing. What is more, data were harvested using a cross-sectional design. Therefore, future studies should use two samples, i.e., customers to assess their related factors and managers to evaluate firm-related factors. Finally, it is recommended to collect data using a longitudinal design in order to gain more insight of customers and firms’ attitudes and behaviors toward digital marketing initiatives.

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