Orientasi Dan Perkembangan
Orientasi Dan Perkembangan
Orientasi Dan Perkembangan
: Development and validation of the scale for measuring digital marketing orientation in the hotel industry
Kenan Mahmutović
JEL: M310
University of Bihać
Original scientific article
Faculty of Economics in Bihać
https://doi.org/10.51680/ev.34.1.9
77000 Bihać, Bosnia and Herzegovina
kenan.mahmutovic@efbi.unbi.ba
Received: November 25, 2020
Revision Received: February 11, 2021
Accepted for publishing: February 18, 2021
DEVELOPMENT AND
VALIDATION OF THE SCALE
FOR MEASURING DIGITAL
MARKETING ORIENTATION
IN THE HOTEL INDUSTRY
ABstrACT
Purpose: This paper aims to develop and validate the scale for measuring digital marketing orientation
(DMO) in the hotel industry.
Methodology: The robust exploratory and confirmatory factor analysis procedure is applied to a data set
collected through an online survey of 164 hotels in Bosnia and Herzegovina, Croatia, Serbia, and
Monte- negro.
Results: Digital marketing orientation has been conceptualized, and a scale has been developed to measure
this construct. The scale consists of 15 items in three defined dimensions (subscales): Strategic
emphasis, Digital intelligence generation, and Planning and resource provisioning.
Conclusion: Using the developed digital marketing orientation (DMO) scale, hotel managers can
conduct a DMO audit similar to conducting a market orientation audit to determine in which areas it is
necessary to improve market orientation in the online environment. Academics may use the DMO scale to
investigate its antecedents and the influence of other factors on DMO and/or the influence of DMO on
other factors. This is the first study, to the author’s knowledge, that developed and validated a
measurement scale for digital marketing orientation in the hotel industry.
Keywords: Digital marketing orientation, e-marketing orientation, market orientation, hotel industry,
scale development, tourism
of market orientation
and its enhancement (Jaworski & Kohli, 1996; “market ori- entation” to describe its
Van Egeren & O’Connor, 1998). Digital implementation. Hence, a market-oriented
technology has led to significant business organization is one whose actions are consistent
changes, enabling com- panies to improve their with the marketing concept, in which
business processes and build better relationships
with their target markets. The emergence of
digital marketing has created a need for research
in this area, especially in terms of defining and
measuring digital marketing orienta- tion. In
contrast to market orientation, which has attracted
significant attention from researchers, a
surprisingly small number of studies in the last 20
years have dealt with the conceptualization of
digi- tal marketing orientation and the
development of reliable and valid measurement
instruments. This paper aims to contribute to the
conceptualization and measurement of digital
marketing orientation in the hotel industry, in
particular by filling the gap observed in previous
research cited in this paper. The purpose is to
develop and validate the scale for measuring
digital marketing orientation (DMO) in the hotel
industry. The article begins with a theo- retical
framework, which helps in specifying the domain
of the construct. It is followed by an expla- nation
of the research design, analysis of the sample profile,
and the results of exploratory and confirma- tory
factor analysis. Finally, after the discussion and
conclusions, some of the research limitations and
recommendations for future research are given.
2. Theoretical framework
2.1 Marketing and market orientation
The marketing concept has been described as a “cor-
porate state of mind that insists on the integration
and coordination of all of the marketing functions,
which, in turn, are melded with other corporate
functions, for the primary objective of producing
maximum long-range corporate profits” (Felton,
1959). It means maximizing the focus on
customer satisfaction while making a profit
(McCarthy & Per- reault, 1984) by directing the
most effort to discover the wants of a target
audience and then create the goods and services to
satisfy them (Kotler & Zalt- man, 1971). The
marketing concept rests on four pil- lars: (1) target
marketing; (2) satisfying explicit and latent
customer needs; (3) integrated organizational focus
on the customers; and (4) long-term profitabil- ity
(Bell & Emory, 1971; Kotler, 2000).
While the marketing concept is considered a phi-
losophy that can be a core part of corporate
culture, Kohli and Jaworski (1990) use the term
the pillars of the marketing concept are disseminated. In practice, responsiveness includes
operation- ally manifest. Previous studies report activities like selecting target markets, designing
that “market orientation contributes to firms’ and offering products/services that will fulfill cus-
performance sub- stantially more than alternative tomers’ current and anticipated needs, and produc-
strategic orienta- tions such as innovation and
entrepreneurial ori- entations” (Grinstein, 2008).
It positively impacts organizational performance,
customer loyalty and satisfaction, the firm’s
innovativeness, and em- ployee organizational
commitment (Masa’deh et al., 2018). Most
authors whose studies were dedi- cated to
explaining the construct of market orienta- tion
and its measurement, like Kohli and Jaworski
(1990), Narver and Slater (1990), and Day
(1994), have primarily focused on ongoing
behaviors and activities in an organization, in
contrast to cultural perspective that emphasizes
the market-oriented shared values and beliefs
that provide the cultural infrastructure of an
organization (Gebhardt et al., 2006). From the
cultural perspective, the market orientation is an
organizational culture whose val- ues and norms
emphasize creating and delivering superior value
to customers (Hurley & Hult, 1998).
Kohli and Jaworski (1990) define three elements
of market orientation: (1) intelligence
generation, (2) intelligence dissemination, and
(3) responsiveness, which comply with previously
defined pillars of the marketing concept. To be
customer-focused, or- ganizations need to obtain
information from their customers about their
current and future needs and preferences and
information about exogenous marketing factors
(e.g. competition, regulation) that affect those
needs and preferences. These en- vironmental
scanning activities are subsumed un- der market
intelligence generation. Coordinated marketing
implies that all departments within the
organization operate in a marketing manner,
which means that they need to be cognizant of
customer needs (aware of market intelligence)
and respond to those needs. Intelligence
dissemination is the el- ement of market
orientation which involves com- municating and
disseminating market intelligence to all
departments and individuals in the organiza-
tion. In this context, the term “market
orientation” is preferred over “marketing
orientation”, suggest- ing that the construct is not
exclusively a concern of the marketing function
but a variety of depart- ments who generate
market intelligence, dissemi- nate it and respond
to it. Responsiveness is the third element of
market orientation, and it implies taking actions
in response to intelligence generated and
4 Vol. 34, No. 1 (2021), pp. 115-129
Mahmutović, K.: Development and validation of the scale for measuring digital marketing orientation in the hotel industry
ing, distributing, and promoting the products in a study of 138 Japanese executives.
way that elicits a favorable end-customer Deshpandé and Farley’s (1998) study of 82 manag-
response, which will lead to profit. Hence, ers in 27 European and U.S. companies shows that
profitability can be seen as a consequence of all three scales, as mentioned above, are reliable
market orientation.
Similar to the authors Kohli and Jaworski, Narver
and Slater (1990) state that market orientation
con- sists of three behavioral components -
customer orientation, competitor orientation, and
inter- functional coordination, and two decision
crite- ria - long term focus and profitability. The
Narver and Slater model is consistent with the
findings of Kohli and Jaworski (1990). Customer
orientation and competitor orientation include
activities in- volved in acquiring information
about customers and competitors and
disseminating it throughout the business(es),
while the third component, inter- functional
coordination, is consistent with “respon-
siveness”, as it comprises the business’s coordinated
efforts, typically involving more than the marketing
department, to create superior value for the
buyers.
and valid. Additionally, they combined and factor 1 Google Scholar. https://scholar.google.com/
analyzed all items from the MKTOR, MARKOR, 2 Google Trends. https://trends.google.com/trends/ explore?
and Customer Orientation scales and developed date=today%205-y&geo=US&q=digital%20 marketing,internet
%20marketing,e-marketing,web%20marketing
the MORTN scale that consists of 10 items. This
synthesized 10-item scale is based on a more par-
simonious definition of market orientation, which
defines it as “the set of cross-functional processes
and activities directed at creating and satisfying
customers through continuous needs-assessment”
(Deshpandé & Farley, 1998).
gies could impact activities in firms and which Vlachopoulou (2009) have tried to conceptualize
business orientations may result from such im-
pact. They advocate that information impacts the
marketing activities by enabling the new forms of
marketing implementation and new marketing
management opportunities, resulting in electronic
marketing orientation.
Similar to the marketing concept and market
orien- tation, digital marketing orientation (DMO)
could be defined as “the level of an organization’s
orienta- tion toward the use of the Internet and
other digital technologies in the implementation
of the market- ing concept” (Mahmutović, 2018).
It can be con- ceptualized as a synthesis of the
behaviors toward adopting digital marketing and
the concurrent or- ganizational business philosophy
(Shaltoni & West, 2010; Shaltoni, 2006). Hence,
digital marketing ori- entation is the extent to
which an organization is oriented, i.e.,
strategically committed to using the Internet and
other digital technologies to deter- mine the target
markets’ needs and requirements and deliver
customer satisfaction more effectively and
efficiently than competitors (Mahmutović, 2018).
Shaltoni (2006) has made a pioneering effort in
in- vestigating the organizational orientation
toward digital marketing. His results indicated
that digital marketing orientation is made up of
philosophi- cal and behavioral components. The
philosophi- cal component is identified by the
degree to which decision-makers emphasize
digital marketing, while the behavioral component
is viewed as all the activities that led to high levels
of involvement in digital marketing. If we draw a
parallel with market orientation, we notice that the
philosophical com- ponent is similar to the
attitudinal perspective of market orientation
(Narver & Slater, 1990), while the behavioral
component is similar to market ori- entation
identified by Kohli and Jaworski (1990).
Furthermore, Shaltoni (2006) divides the behav-
ioral component into two phases: initiation and
implementation phase, where the initiation phase
corresponds to the intelligence generation and intel-
ligence dissemination (informing and formal plan-
ning), while the implementation phase
corresponds to the responsiveness (all activities
involved in put- ting digital marketing into
practice).
Based on the grounds that digital marketing ori-
entation combines two aspects, philosophical di-
mension (emphasis on digital marketing) and be-
havioral dimension (activities leading to high levels
of involvement in digital marketing), Tsiotsou and
Vol. 34, No. 1 (2021), pp. 115-129 7
Mahmutović, K.: Development and validation of the scale for measuring digital marketing orientation in the hotel industry
and operationalize digital marketing orientation analysis did not confirm the behavioral com-
through the development of a scale for DMO. ponent of e-marketing orientation as suggested by
They conceptualize DMO as the business Shaltoni (2006), only philosophical, and the
culture, a con- struct that describes an author
organizational philosophi- cal commitment to
digital marketing, as a basis for the development
and maintenance of competitive advantage. A
survey was conducted of 261 com- panies from
the tourism industry. A three-dimen- sional scale
(transaction orientation, promotion orientation,
database orientation) with a total of 8 items for
measuring DMO was constructed. How- ever, the
scale items’ analysis suggests that the scale
measures the firm’s behavior (digital marketing
im- plementation) and not its culture, as the
authors have defined the construct. It is also
evident that the scale does not measure market
intelligence gen- eration and intelligence
dissemination.
Shaltoni’s (2006) exploratory research served
Shal- toni and West (2011) as a theoretical basis
for de- veloping a 12-item scale for measuring e-
marketing orientation in b2b markets. Each of the
three com- ponents of e-marketing orientation
was measured with a four-item subscale.
Similar to Shaltoni and West, Chen and Huang
(2016) conducted a cross-sectional study on a
sam- ple of 157 top-ranked companies in the
manufac- turing (75.4%) and service industries
in Taiwan, intending to develop and validate the
measurement scale of e-marketing orientation.
Through confirm- atory factor analysis, they
developed a scale of 14 items, which measure
three components of e-mar- keting orientation:
(1) cultural philosophy, (2) initi- ation, and (3)
system development and integration. Compared
to the scale developed by Shaltoni and West
(2010), Chen and Huang (2016) have partially
renamed the first and third scale dimensions and
added two new items to the implementation
com- ponent, relating to “the integration and
processing of data obtained from suppliers,
customers and em- ployees” and “continuous
monitoring of order sta- tus and various stages of
the process”.
Mahmutović (2018) has explored how e-
marketing orientation (EMO) in European real
estate agencies affects their marketing
performance. Empirical re- search for this work
was carried out on a sample of 311 real estate
agencies from eight countries. To measure EMO,
the author used the 12-item scale developed by
Shaltoni and West (2010). However, factor
8 Vol. 34, No. 1 (2021), pp. 115-129
Mahmutović, K.: Development and validation of the scale for measuring digital marketing orientation in the hotel industry
named this factor strategic e-marketing orientation If we consider some of the planning models, such as
– SEMO. The path analysis has confirmed that the the SOSTAC (Smith, 2020), we can see that market
level of strategic e-marketing orientation has a
pos- itive and significant impact on the level of e-
mar- keting budget and the level of e-marketing
adoption and implementation in real estate
agencies, and a strong direct impact on enhanced
marketing effi- ciency and effectiveness.
information (intelligence) and dissemination tactical mar- keting decisions in the hotel business.
within the company are needed in all phases of His proposed framework presents a solid base for
digital mar- keting planning, from situational developing a
analysis (scanning the environment, competition,
consumers…), de- fining objectives, selecting
target markets and on- line value proposition,
choosing the best marketing mix, online channels
and tactics, and in the control phase. Hence, the
collection of market information and
performance metrics of individual marketing
activities and their dissemination within the com-
pany are an integral part of the planning process,
which fully corresponds to the market orientation
dimensions. Furthermore, adequate responsive-
ness of the company is possible only through the
implementation of a quality plan. Only with a
stra- tegic and planned approach, the allocation
of digi- tal marketing budgets to planned digital
marketing activities, following the set strategy
and goals, with the provision of the required
resources, leads to the enhancement of marketing
activities, which in turn leads to the enhancement
of marketing (cost) ef- ficiency and
consequently, to the enhancement of marketing
effectiveness (Mahmutović, 2018).
An essential advantage of the digital economy, e-
commerce, and digital marketing is the high
degree of measurability and consumer behavior
analysis (Chaffey & Patron, 2012; Chaffey &
Ellis-Chadwick, 2019; Hartman, 2020).
Companies can collect and process large
amounts of data from the digital en- vironment.
These data may come from own busi- ness
sources (such as the company website or other
online channels that the company uses), from on-
line marketing intelligence sources (websites and
other online channels used by competitors, social
networks, etc.), or through the online marketing
research. “Digital analytics is a set of business
and technical activities that define, create, collect,
verify or transform digital data into reporting,
research, analysis, recommendations,
optimizations, pre- dictions, and automation”
(Phillips, 2013). Digital analytics can provide
useful insights about custom- ers, their behavior,
and about the effectiveness and efficiency of
specific online channels. This kind of continuous
market intelligence generation helps companies
plan better and refine and optimize their
marketing activities. Hence, this leads to a higher
digital marketing orientation of a company.
Mahmutović (2020) suggests a set of KPIs and
met- rics that should facilitate strategic and
10 Vol. 34, No. 1 (2021), pp. 115-129
Mahmutović, K.: Development and validation of the scale for measuring digital marketing orientation in the hotel industry
Table 3 The results of the exploratory factor analysis of digital marketing orientation
Strategic em- Digital intelli- Planning and re- Variance Reliability
Factor Eigenvalue
phasis gence generation source provisioning explained (%) Alpha (α)
The convergent and discriminant validity of the vergent validity. The obtained factor solution shows
scale was confirmed through the EFA, which adequate discriminatory validity since there are no
showed that model acceptance criteria were satis- problematic cross-loads in the pattern matrix. The
fied: all variables load the associated factors with correlation matrix shown in Table 4 does not
more than 0.5, and each other factor with less than show correlations above 0.7, which confirms the
0.35 (Hair et al., 2010). Additionally, all variables model’s discriminant validity. The extracted three
within each factor load their factor by an average factors explain 64.4% of the total variance, with
of more than 0.7, which confirms the scale’s con- all three factors having an eigenvalue greater than
1.
Source: Author
Source: Author
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