The Effect of Digital Marketing Strategy on Customer and Organizational Outcomes

Abstract

This study aims to test the impact of digital marketing strategy as an antecedent on customer outcomes (customer satisfaction, customer engagement, and customer loyalty) and the impact of these three outcomes on organizational outcomes. Twenty-five items are used to measure research variables. These items are developed referring to previous related works: digital marketing strategy, customer satisfaction, customer engagement, customer loyalty, and organizational outcomes. According to the research budget and time constraints, a convenience sampling method was implemented in the data collection process. This study applied structural equation modeling (SEM) to test the research hypotheses through AMOS software.The authors conducted a questionnaire to collect data from a sample of marketing practitioners selected from 10 organizations with a total number of 200 respondents. The total number of returned questionnaires is 187 responses. Eleven questionnaires are excluded due to invalid responses. Thus, 176 questionnaires are used to carry out data analysis. The results underline the significant effects of customer satisfaction, engagement, and loyalty on organizational outcomes. The authors noted that customer satisfaction is the most affected outcome by digital marketing strategy, followed by customer engagement and customer loyalty. Additionally, customer loyalty has the greatest effect on organizational outcomes, followed by customer satisfaction and customer loyalty. The findings showed that enhancing organizational outcomes requires marketing managers consider customer outcomes such as customer satisfaction, customer engagement, and customer loyalty, which are affected by marketing strategies. Marketing managers are requested to pay great attention to their marketing strategy, considering its effects on customer satisfaction and other customer outcomes, like customer engagement and loyalty. Likewise, scholars are required to re-test the current model to identify the mediating role of the outcomes mentioned above in the effect of marketing strategy on organizational outcomes.