An Analysis of the Adoption of Digital Marketing for Malaysia’s Retail Industry

Abstract

During this advanced technology as well as digital era, the digital economy contributes definitively to an expansion in competitiveness, particularly digital change includes moving to new technological models where digital marketing is the key part for the growth and customer loyalty strategies. The purpose of this research is to have a better insight on the usage of digital marketing especially to those retail industries in Malaysia who required digital marketing for their business. Nowadays, digital marketing is essential for all business because it helps to create brand awareness and generate sales to the business. This research enable retailer in Malaysia to have a clear view and understanding on the digital marketing concept to its full potential. This research aim to identify the influential factor affecting the adoption of digital marketing channels in the retail industry in Malaysia.

After the findings of the research, factor analysis used to investigate the correlation between independent variables and dependent variables. From the factor analysis, Kaiser-Meyer-Olkin Measure of Sampling Adequacy is 0.849 falls under middling category according to MSA. In correlation analysis, it showed significant relationship between independent variables and dependent variables. These significant variables are cost saving, readiness, perceived benefits, ease of use and the adoption of digital marketing in retail industry in Malaysia. For multiple regression analysis and ANOVA analysis, it can be concluded that cost saving and readiness have negative significant influence on the adoption of digital marketing in retail industry in Malaysia while the perceived benefits and ease of use have positive significant influence on the adoption of digital marketing within Malaysia’s retail industry. Based on the multiple regression analysis, there are 48.2% of the retailer’s decision on adopting digital marketing strategy in their business can be interpreted by cost saving, readiness, perceived benefits and ease of use in the model. A clear recommendation on digital marketing study is provide and done in this research study.