THE MEDIATING EFFECT OF RELATIONSHIP MARKETING STRATEGY BETWEEN DIGITAL MARKETING STRATEGY AND CONSUMERS’ PURCHASE DECISIONS IN THE AUTOMOTIVE INDUSTRY IN MALAYSIA

Kumaran Kanapathipillai, Sharvena Kumaran

Abstract


The intent of this research is to scrutinise the impact of digital marketing strategies applied by marketers in the automotive industry in Malaysia in aiding consumers to make purchase decisions. In reality, marketers know that digital marketing strategies alone will not lead to consumers’ purchase decisions because not all consumers can be motivated by digitalisation. Another significant factor in influencing consumers’ purchase decisions is relationship marketing strategies. Therefore, the interceding impact of relationship marketing strategy between digital marketing strategy and consumers’ purchase decisions was analysed in this study to support the research hypothesis. A total of 605 marketers employed in the automotive industry furnished the data for this study. Moreover, in-depth literature was reviewed to expose the association between digital marketing strategies, relationship marketing strategies, and consumers’ purchase decisions. The findings of this research indicated a statistically significant relationship between digital marketing strategy and relationship marketing strategy as well as consumers’ purchase decisions. Conclusively, the hypothesis is supported by data and illustrated that relationship marketing strategy statistically mediates the relationship between digital marketing strategy and consumers’ purchase decisions in the automotive industry in Malaysia. Furthermore, this research also proves that marketers who utilise all avenues of digital marketing strategies will be able to communicate and build a robust relationship with consumers, which leads to positive consumers’ purchase decisions. In conclusion, digital marketing strategies with the interceding relationship marketing strategies can influence consumers to make a favourable purchase decision that benefits marketers, consumers, and the automotive industry in Malaysia.

 

JEL: M10; M30; M31; L62

 

Article visualizations:

Hit counter


Keywords


digital marketing strategy, relationship marketing strategy, consumers’ purchase decision, automotive industry

Full Text:

PDF

References


Abbasi, M. (2015). An investigation of the effect of relationship marketing on customer gratitude. (Case study: The branches of Dana Insurance in Tehran). (Unpublished master’s thesis). Faculty of Management and Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran.

Adjei, M. T., Griffith, D. A., & Noble, S. M. (2009). When do relationships pay off for small retailers? Exploring targets and contexts to understand the value of relationship marketing. Journal of Retailing, 85(4), 493-501.

Ali, Nor, Abdul Gafar, Muhammad Hanif & Akbar, Jamaludin (2013). Enhancing promotional strategies within automotive companies in Malaysia. Procedia Economics and Finance. 7. 158–163. Retrieved from: http://10.1016/S2212-5671(13)00230-X.

Anazawa, M. (2021). The automotive industry in Malaysia. In (Schröder, M., Iwasaki, F., & Kobayashi, H. (Eds.) Promotion of electromobility in ASEAN: States, Carmakers, and International Production Networks. ERIA Research Project Report FY2021(3), Jakarta: ERIA, 61-86.

Andzulis, J. M., Panagopoulos, N. G., & Rapp, A. (2012). A review of social media and implications for the sales process. Journal of Personal Selling & Sales Management, 32(2), 305-316. Retrieved from: https://doi.org/10.2753/PSS0885-3134320302

Ang, I. (2011). Community relationship management and social media. Database marketing and customer strategy management. 8(1), 31-38.

Armstrong, G., & Kotler, P. (2009). Marketing: An Introduction 5th ed. Prentice-Hall. N.J.

Atto, S. (2021). How Covid-19 changed the way we shop…again. Department of Marketing, Monash Business School. Monash University. Retrieved from: http://www2.monash.edu/impact/articles

Azjen, I., & Fishbein, M. (1980). Understanding Attitudes and Predicting Social Behavior. Englewood Cliffs, NJ: Prentice- Hall.

Bennett, R., & Rundle-Thiele, S. (2004). Customer satisfaction should not be the only goal. Journal of Services Marketing, (18) 7, 514-523.

Berry, L. L., & Parasuraman, A. (1991). A framework for conducting a service marketing audit. Journal of Academy of Marketing Science, 19(3), 255-265.

Berry, L. L. (1995). Relationship marketing of services – Growing interest, emerging perspectives. Journal of the Academy of Marketing Science, 23(4), 236-45.

Blackwell, R. D., Miniard, P. W., & Engel, J. F. (2001). Consumer Behavior 9th edition. South- Western Thomas Learning, Mason, OH.

Bowen, J. T., & Shoemaker, S. (2003). Loyalty: A strategic commitment. Cornell Hotel and Restaurant Administration Quarterly, 44(5/6), 31-46.

Capella, M., & Kinard, B. R. (2006). Relationship marketing: The influence of consumer involvement on perceived service benefits. Journal of Services Marketing, 20(6), 359–368.

Chaffey, D. (2021). 10 reasons you need a digital marketing strategy in 2022. Retrieved from: https://www.smartinsights.com/digital-marketing-strategy/digital-strategy-development/10-reasons-for-digital-marketing-strategy

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. UK: Pearson.

Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing and integrating online marketing: Taylor & Francis.

Chaipradermsak, T. (2007). The influential factors on consumers’ purchasing decision in Bangkok pet retailing business. MBA Thesis, Shinawatra University.

Cheng, C. F., & Lee, A. H. (2011). The influences of relationship marketing strategy and transaction cost on customer satisfaction, perceived risk, and customer loyalty, African Journal of Business Management, 5(13), 5199-5209.

Chinna, K. & Yuen, C. W. (2015). Statistical Analysis Using SPSS. (2nd ed.). Pearson Malaysia.

Christensen C. M. (1997). The innovator’s dilemma: when new technologies cause great firms to fail. Harvard Business School Press.

Christopher, M., Payne, A., & Ballantyne, D. (1991). Relationship bringing quality, customer service and marketing together. Oxford: Butterworth-Heinemann.

Chukwu, G. C., & Tom, M. C. (2020). Relationship marketing and consumer buying behavior in food and beverage firms in Port Harcourt Metropolis. Middle European Scientific Bulletin. 7, 65-76. http://10.47494/mesb.2020.1.144

Conversion Advantage. (2021). See how Nissan EC used automotive digital marketing to increase new car sales by 30%. Online Case study. Retrieved from: https://www.conversionadvantage.com/case-studies/automotive-digital-marketing

Dahiya, R., & Gayatri (2018). A research paper on digital marketing communication and consumer buying decision process: An empirical study in the Indian passenger car market. Journal of Global Marketing, 31(2), 73-95.

Daqar, M. A. M. A., & Smoudy, A. K. A. (2019). The impact of consumer buying behavior on customer relationship management in the banking sector. International Review of Management and Marketing, 9(4), 39-46.

Dar, T. M., & Tariq, N. (2021). Footprints of digital marketing on customers’ purchase decisions. Electronic Research Journal of Social Sciences and humanities. 3(1), 20-30.

Dastane, O. (2021). Impact of digital marketing on online purchase intention: Mediation effect of customer relationship management. Journal of Asian Business Strategy, 10(1), 142-158.

Digital Marketing Institute. (2018). 5 outstanding examples of automotive marketing campaign. Retrieved from: https://digitalmarketinginstitute.com/blog/

DOSM. (2021). Current population estimates, Malaysia, 2021. Department of Statistics Malaysia. Retrieved from: http://dosm.gov.my

Erabi, M., & Izadi, D. (2005). Management Communication, Tehran's Cultural Research Bureau.

Ganesan, V. (2021). Malaysia e-shopping king of the region, 9 out of 10 online by end-2021. The Edge Markets. Retrieved from: http://www.theedgemarkets.com

García, L. J. J., Lizcano, D., Ramos, C. M., & Matos, N. (2019). Digital marketing actions that achieve a better attraction and loyalty of users: An analytical study. Future Internet, 11(6), 1-16. Retrieved from: https://doi.org/10.3390/fi11060130.

Gaurav, K. (2016). Impact of relationship marketing on customer loyalty: Evidence from Indian automobile industry. Purushartha: A Journal of Management, Ethics and Spirituality, 9(1), 1-17.

Gawas, A., Kulkarni, P., & Mehendale, S. (2018). The role of social media marketing in customer purchase intent-a methodological and thematic review. Asian Journal of Management, 9(1), 761-766.

Gilaninia, S., & Ghashlagh, B. G. (2012). Relationship marketing system and its impact on customer buying behavior. Journal of Basic and Applied Scientific Research, 2(3), 2473-2481.

Gilaninia, S., Mousavian, S. J., Mohammadi, M., Naser, A., Jelodarloo, S., Pournemat, M., Tajalli, M., Gholizadeh D. F., & Zadbagher S.F. (2011). Comparative study of relationship marketing in public and private banks. Interdisciplinary Journal of Contemporary Research in Business, 3(8), 508-514.

Godwin, E. U. (2019). An empirical analysis on effect of digital marketing on consumer buying behaviour. Masters Dissertation, The School of Postgraduate Studies Ahmadu Bello University, Zaria.

Goldsmith R. E and Lafferty B. A (2008). Consumer Response to Web Site and Their Influence on

Advertising Effectiveness, Internet Research: Electronic Networking Applications and Policy. Vol.12 No.4, pp. 318-328.

Goldsmith R. E., & Lafferty B. A. (2008). Consumer response to web site and their influence on advertising effectiveness. Internet Research. Electronic Networking Applications and Policy, (12)4, 318-328.

Gravetter, F. & Wallnau, L. (2014). Essentials of Statistics for the Behavioural Sciences. (8th ed.), Belmont, CA: Wadsworth.

Gronroos, C. (1994). From marketing mix to relationship marketing: Towards a Paradigm Shift in Marketing. Management Decision, 32(2), 4-20.

Gummesson, E. (1994). Broadening and specifying relationship marketing. Australia Marketing Journal, 2(1), 31-43.

Gupta, G. (2019). Inclusive use of digital marketing in tourism industry, In information systems design and intelligent applications. Singapore. Springer, 411-419.

Hasan, A. (2020). Consumer buying behavior in the automobile industry in Bangladesh. A qualitative study of the customers of Pragoti Industries Limited. Bachelor’s thesis. Centria University of Applied Sciences. International Business.

Hayes, A. F., & Rockwood, N. J. (2020). Conditional process analysis: concepts, computation, and advances in modeling the contingencies of mechanisms. American Behavioral Scientist, 64, 19-54.

Hirschmann, R. (2020). Number of people employed in the automobile industry in Malaysia 2010-2017. Statista. Retrieved from: https://www.statista.com/statistics.

Huang, M. H. (2015). The influence of relationship marketing investments on customer gratitude in retailing. Journal of Business Research, 68(6), 1318–1323.

Ibojo B. O., & Asabi, O. M. (2015). Impact of customer satisfaction on customer loyalty. A case study of a reputable bank in Oyo State. Nigeria. International Journal on Managerial Studies and Research, 2(2), 59-69.

Ibojo, B. O. (2014). Impact of customer satisfaction and customer retention on customer loyalty. A case study of Enterprise Bank in Oyo, Oyo State. Nigeria. International Journal of Education and Research, 2(9).

Ibojo, B. O., & Dunmade, E. O. (2016). Impact of relationship marketing on customer satisfaction: A case study of the undergraduate students in a private university, OYO state Nigeria. International Journal of Economics, Commerce and Management, 4(2), 698-708.

Jain, S., & Pandey, A. (2020). Study of influence of digital marketing on consumer behaviour. Journal of Emerging Technologies and Innovative Research, 7(4), 649-655.

Kanapathipillai, K. (2021). The influence of social media technology with reference to Facebook on work performance: Organisational framework as mediator. European Journal of Social Science Studies, 6(5), 74-109.

Kanapathipillai, K., & Mahbob, N. N. (2021). The impact of relationship marketing on customer loyalty in the tour and travel companies in Malaysia during Cov-19 pandemic: Parallel mediation of social media and relationship quality. European Journal of Management and Marketing Studies, 6(4), 1-31. Retrieved from: https://oapub.org/soc/index.php/EJMMS/article/view/1144

Kannan, P. K. (2017). Digital marketing: A framework, review and research agenda. International Journal of Research in Marketing, 34(1), 22-45.

Karjaluoto, H., & Ulkuniemi, P. (2015). Digital communications in industrial marketing. Journal of Business & Industrial Marketing, 30(6). Retrieved from: https://doi.org/10.1108/JBIM-06-2014-0136

Khan, A., & Islam, M. (2017). The impact of digital marketing on increasing customer loyalty: a study on Dhaka city, Bangladesh. International Journal of Economics, Commerce and Management, 5(4), 30-45.

Khatib, F. (2016). The impact of social media characteristics on purchase decision empirical study of Saudi customers in Aseer Region. International Journal of Business and Social Science, 7(4), 41-50.

Kleijnen, M., Herhausen, D., Miocevic, D., & Morgan, R. (2020). The digital marketing capabilities gap. Industrial Marketing Management. 90, 276-290.

Kotler, P., & Keller, K. (2006), Marketing Management, 12nd Edition. India; Pearson Education Inc., 8-25.

Krajnović, A., Sikirić, D., & Bosna, J. (2018). Digital marketing and behavioural economics. CroDiM: International Journal of Marketing Science, 1(1), 33-46.

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational & Psychological Measurement.

Lafleur, G. (2021). How relationship marketing works, its pros, cons and levels. Online Article 2 of 3: Value of relationship marketing for improved customer experience. Retrieved from: https://searchcustomerexperience.techtarget.com/tip/How-relationship-marketing-works-its-pros-cons-and-levels.

Le, D., Nguyen, T.-M., Quach, S., Thaichon, P., & Ratten, V. (2021). The development and current trends of digital marketing and relationship marketing research. Thaichon, P. and Ratten, V. (Ed.) Developing Digital Marketing, Emerald Publishing Limited, Bingley, 1-18. Retrieved from: https://doi.org/10.1108/978-1-80071-348-220211001

Lindgreen, A. (2001). A framework for studying relationship marketing dyads. Qualitative market research. An International Journal, 4(2), 75-88.

Liu, L. (2008). Study of the relationship between customer satisfaction and loyalty in telecom enterprise, 2008 IEEE International Conference on Service Operations and Logistics, and Informatics, 1, 896-901

Madhu, B., & Verma, D. (2018). A critical review of digital marketing. International Journal of Management, IT & Engineering, 8(10), 321-339.

Mahalaxmi, K. R., & Ranjith, P. (2016). A study on impact of digital marketing in customer purchase decision in Trichy. International Journal for Innovative Research in Science & Technology, 2(10), 332-338.

Malaysia Automotive Institute (MAI) (2021). The automotive industry. Retrieved from: https://web.archive.org/web/20170519160932/http://www.mai.org.my

Merisavo, M. (2009). The effects of digital marketing on customer relationships: Helsinki School of Economics. doi:10.4018/978-1-60566-056-1.CH088

Meslat, N. (2018). Impact of social media on customers’ purchase decision: Case: Chocolaterie Thibaut, France.

Moretti, A., & Tuan, A. (2013). Social media marketing and relationship marketing: Revolution or evolution? A first step analysis. Referred Electronic Conference Proceeding. Retrieved from: http://10.7433/SRECP.2013.16.

Ndubisi, O. N. (2007). Relationship marketing and customer loyalty. Marketing intelligence & planning, 25(1), 98-106.

Nippon Express (December 10, 2020). Overview of the Malaysian automotive industry and its future transformation. Retrieved from: https://www.nipponexpress.com/press/report/10-Dec-20.html

Nizam, N. Z., Jaafar, J. A., & Supaat, S. H. (2018). Interactive online advertising: the effectiveness of marketing strategy towards customers purchase decision. MATEC Web of Conferences, 150, 5043-5055.

NST. (2021). Malaysia’s digital retail doubles, 90pc consumers going digital-report. New Straits Times. Retrieved from: https://www.nst.com.my

Pandey, V. (2021). How automotive companies are using digital marketing platforms to drive more sales. Retrieved from: https://www.linkedin.com/pulse.

Payne A., & Frow P. (2005), A strategic framework for customer relationship management. Journal of Marketing, 69(4), 167-176.

Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.

Prasad, S., Garg, A., & Prasad, S. (2019). Purchase decision of generation Y in an online environment. Marketing Intelligence & Planning, 12(4):24-36.

Ranjbariyan, B., & Barari, M. (2009). Relationship marketing, an approach for improving customer satisfaction. Iranian Journal of Management Executive, 2(36).

Reddy, G. (2017). Digital marketing impact on the consumer decision making process in Nike’s customer retail operations in South Africa. PhD diss., University of Pretoria

Saebnia, S., Feizi, M., & Hasanzadeh, M. (2017). An investigation of the effect of relationship marketing on customer gratitude and consumer behavior (case study: the dealerships of Saipa Corporation in Ardabil Province). Marketing and Branding Research, 4(2017), 360-370.

Sashi, C. M. (2012). Customer engagement, buyer‐seller relationships, and social media. Management decision, 1(3), 14-23.

Sawicki, A. (2016). Digital marketing. World Scientific News, 48, 82-88.

Schiffman, L.G., & Kanuk, L.L. (2007). Consumer Behavior. Upper Saddle River, NJ: Pearson Prentice Hall.

Siano, A., Vollero, A., & Confetto, M. G. (2005). CRM e scelte di comunicazione d’impresa. Esperienze d’impresa, Serie Speciale S3, 53-88.

Tandon, N., Kaur, S., & Verma, R. (2020). Analysis of relationship between digital marketing and customer relationship management. International Journal of Advanced Science and Technology, 29(8s), 412 - 418. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/10523

The Jamovi Project (2021). Jamovi. (Version 2.0) [Computer Software]. Retrieved from https://www.jamovi.org.

Toor, A., & Husnain, M. (2017). The impact of social network marketing on consumer purchase intention in Pakistan: Consumer engagement as a mediator. Asian Journal of Business and Accounting, 10(1), 167-199.

Vasudevan, P., & Arokiasamy, L. (2021). Online shopping among young generation in Malaysia. Electronic Journal of Business and Management, 6(1), 31-38.

Velnampy, T., & Sivesan, S. (2012). Customer relationship marketing and customer satisfaction. Global Journal of Management and Business Research, 12(18). 1-7.

Vinerean, S. (2017). Importance of strategic social media marketing. Expert Journal of Marketing, 5(1). 28-35.

Wang F., Head, M., & Archer, N. (2002). E-tailing: An analysis of web impacts on the retail market. Journal of Business Strategies: Special Issue on E-Commerce and E-Marketing Strategies, 19(1), 73-93.

Wang, F., & Head, M. (2005). Consumer relationship marketing on the internet: An overview and clarification of concepts. Innovative Marketing, 1(1), 55-68.

Webster, F.E. (1992). The changing role of marketing in the corporation. Journal of Marketing 56, 1-17.

Wharton, G. F., Foth, M., & Choi, J. (2014). Identifying factors that promote consumer behaviours causing expired domestic food waste. Journal of Consumer Behaviour, 13(1), 393-402.

Zeithaml, V. A., & Bitner, M. J. (2003). Service marketing: integrating customer focus across the firm. 3rd Edition. New York: Irwin McGraw-Hill.

Zhang, X., & Feng, Y. (2009). The impact of customer relationship marketing tactics on customer loyalty — Within Swedish mobile telecommunication industry. Master’s Dissertation in International Marketing. Halmstad University, School of Business and Engineering.

Zineldin M. (2002). Electronic relationship: A technologicalship strategy for international/global competitive e-alliances. Paper presented at the 3rd World Congress on the Management of Electronic Commerce, Hamilton, Ontario, Canada, January, 16-18.




DOI: http://dx.doi.org/10.46827/ejmms.v7i2.1205

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Kumaran Kanapathipillai, Sharvena Kumaran

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2017-2023. European Journal of Management and Marketing Studies (ISSN 2501 - 9988) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.