The Influence of Digital Technology on Marketing Strategy

Authors

  • Elisa Purnawati Sekolah Tinggi agama islam minhaajurrosyidiin Author

DOI:

https://doi.org/10.62207/f4s8px08

Keywords:

Artificial Intelligence (AI), marketing, market segmentation, marketing strategy, data availability, organizational readiness, company culture, legal considerations, ethical implications

Abstract

The alignment of Artificial Intelligence (AI) Technology in marketing has revolutionized market segmentation and marketing strategies. This paper examines the factors that influence the relationship between the use of AI in market segmentation and marketing strategy, including data and resource availability, organizational readiness and corporate culture, and legal and ethical considerations. Through a comprehensive literature review and analysis, this study identifies key hypotheses and discusses their implications for future research and practice. Despite challenges such as privacy concerns and ethical dilemmas, the integration of AI in marketing provides significant opportunities for enhanced customer experiences and better business performance.

References

Abrardi, L., Cambini, C., & Rondi, L. (2021). Artificial intelligence, firms and consumer behavior: a survey. Journal of Economic Surveys, 36(4), 969-991. https://doi.org/10.1111/joes.12455

Alami, H., Lehoux, P., Denis, J., Motulsky, A., Petitgand, C., Savoldelli, M., … & Fortin, J. (2020). Organizational readiness for artificial intelligence in health care: insights for decision-making and practice. Journal of Health Organization and Management, 35(1), 106-114. https://doi.org/10.1108/jhom-03-2020-0074

Ameen, N., Tarhini, A., Reppel, A., & Anand, A. (2021). Customer experiences in the age of artificial intelligence. Computers in Human Behavior, 114, 106548. https://doi.org/10.1016/j.chb.2020.106548

Baidhowi, M., Hotman, H., & Darussalam, H. (2022). Factors to increase sales turnover of ornamental fish through digital marketing. Scientia Jurnal Hasil Penelitian, 7(1), 1-9. https://doi.org/10.32923/sci.v7i1.2267

Bass, F., Tigert, D., & Lonsdale, R. (1968). Market segmentation: group versus individual behavior. Journal of Marketing Research, 5(3), 264. https://doi.org/10.2307/3150342

Behl, A., Chavan, M., Jain, K., Sharma, I., Pereira, V., & Zhang, Z. (2021). The role of organizational culture and voluntariness in the adoption of artificial intelligence for disaster relief operations. International Journal of Manpower, 43(2), 569-586. https://doi.org/10.1108/ijm-03-2021-0178

Bhavani, J. and Thuraisingam, A. (2022). Artificial intelligence and its impact on the legal fraternity. Uum Journal of Legal Studies, 13. https://doi.org/10.32890/uumjls2022.13.2.6

Blösser, M. (2023). A consumer perspective of ai certification – the current certification landscape, consumer approval and directions for future research. European Journal of Marketing, 58(2), 441-470. https://doi.org/10.1108/ejm-01-2023-0009

Bourassa, S., Hoesli, M., & Peng, V. (2003). Do housing submarkets really matter?. Journal of Housing Economics, 12(1), 12-28. https://doi.org/10.1016/s1051-1377(03)00003-2

Bruwer, J. and Li, E. (2017). Domain-specific market segmentation using a latent class mixture modelling approach and wine-related lifestyle (wrl) algorithm. European Journal of Marketing, 51(9/10), 1552-1576. https://doi.org/10.1108/ejm-10-2016-0593

Bruyn, A., Viswanathan, V., Beh, Y., Brock, J., & Wangenheim, F. (2020). Artificial intelligence and marketing: pitfalls and opportunities. Journal of Interactive Marketing, 51, 91-105. https://doi.org/10.1016/j.intmar.2020.04.007

Carins, J. and Rundle‐Thiele, S. (2013). Eating for the better: a social marketing review (2000–2012). Public Health Nutrition, 17(7), 1628-1639. https://doi.org/10.1017/s1368980013001365

CHAMBOKO-MPOTARINGA, M. and Tichaawa, T. (2023). Domestic tourists’ perceptions of the intention to use digital marketing tools and platforms. Geojournal of Tourism and Geosites, 46(1), 9-18. https://doi.org/10.30892/gtg.46101-995

Chen, L., Jiang, M., Jia, F., & Liu, G. (2021). Artificial intelligence adoption in business-to-business marketing: toward a conceptual framework. Journal of Business and Industrial Marketing, 37(5), 1025-1044. https://doi.org/10.1108/jbim-09-2020-0448

Costa, L., Cunha, C., Silva, W., & Abreu, N. (2022). Customer satisfaction in service delivery with artificial intelligence: a meta-analytic study. Ram Mackenzie Administration Magazine, 23(6). https://doi.org/10.1590/1678-6971/eramd220003.en

Cox, T. and Hurtubia, R. (2020). Subdividing the sprawl: endogenous segmentation of housing submarkets in expansion areas of santiago, chile. Environment and Planning B Urban Analytics and City Science, 48(7), 1770-1786. https://doi.org/10.1177/2399808320947728

Dabbous, A., Barakat, K., & Sayegh, M. (2021). Enabling organizational use of artificial intelligence: an employee perspective. Journal of Asia Business Studies, 16(2), 245-266. https://doi.org/10.1108/jabs-09-2020-0372

Davenport, T., Guha, A., Grewal, D., & Breßgott, T. (2019). How artificial intelligence will change the future of marketing. Journal of the Academy of Marketing Science, 48(1), 24-42. https://doi.org/10.1007/s11747-019-00696-0

Davenport, T., Guha, A., Grewal, D., & Breßgott, T. (2019). How artificial intelligence will change the future of marketing. Journal of the Academy of Marketing Science, 48(1), 24-42. https://doi.org/10.1007/s11747-019-00696-0

Dekker, R., Grip, A., & Heijke, H. (2002). The effects of training and overeducation on career mobility in a segmented labour market. International Journal of Manpower, 23(2), 106-125. https://doi.org/10.1108/01437720210428379

Gao, Y. and Liu, H. (2022). Artificial intelligence-enabled personalization in interactive marketing: a customer journey perspective. Journal of Research in Interactive Marketing, 17(5), 663-680. https://doi.org/10.1108/jrim-01-2022-0023

Ghani, E., Ariffin, N., & Sukmadilaga, C. (2022). Factors influencing artificial intelligence adoption in publicly listed manufacturing companies: a technology, organisation, and environment approach. International Journal of Applied Economics Finance and Accounting, 14(2), 108-117. https://doi.org/10.33094/ijaefa.v14i2.667

Giebelhausen, M. (2023). Permissibility vs. feasibility: ai in service from a cx perspective. Journal of Services Marketing, 38(1), 87-102. https://doi.org/10.1108/jsm-06-2023-0210

Gonçalves, A., Pinto, D., Rita, P., & Pires, T. (2023). Artificial intelligence and its ethical implications for marketing. Emerging Science Journal, 7(2), 313-327. https://doi.org/10.28991/esj-2023-07-02-01

Hajibaba, H., Grün, B., & Dolničar, S. (2019). Improving the stability of market segmentation analysis. International Journal of Contemporary Hospitality Management, 32(4), 1393-1411. https://doi.org/10.1108/ijchm-02-2019-0137

Hikmahwati, H. and Sahla, W. (2022). Technological capital mediation on the effect of digital marketing in increasing msme sales in batola regency. Ilomata International Journal of Social Science, 3(3), 337-349. https://doi.org/10.52728/ijss.v3i3.497

Ho, S. and Chow, M. (2023). The role of artificial intelligence in consumers’ brand preference for retail banks in hong kong. Journal of Financial Services Marketing. https://doi.org/10.1057/s41264-022-00207-3

Huang, M. and Rust, R. (2018). Artificial intelligence in service. Journal of Service Research, 21(2), 155-172. https://doi.org/10.1177/1094670517752459

Huang, M. and Rust, R. (2020). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49(1), 30-50. https://doi.org/10.1007/s11747-020-00749-9

Huang, M. and Rust, R. (2020). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49(1), 30-50. https://doi.org/10.1007/s11747-020-00749-9

Huang, M. and Rust, R. (2020). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49(1), 30-50. https://doi.org/10.1007/s11747-020-00749-9

Huang, M. and Rust, R. (2020). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49(1), 30-50. https://doi.org/10.1007/s11747-020-00749-9

Hunt, S. (2010). The theory of monopolistic competition, marketing’s intellectual history, and the product differentiation versus market segmentation controversy. Journal of Macromarketing, 31(1), 73-84. https://doi.org/10.1177/0276146710382119

Islam, M. (2023). Artificial intelligence adoption among human resource professionals: does market turbulence play a role?. Global Business and Organizational Excellence, 42(6), 59-74. https://doi.org/10.1002/joe.22226

Jarek, K. and Mazurek, G. (2019). Marketing and artificial intelligence. Central European Business Review, 8(2), 46-55. https://doi.org/10.18267/j.cebr.213

Jordan, M. and Mitchell, T. (2015). Machine learning: trends, perspectives, and prospects. Science, 349(6245), 255-260. https://doi.org/10.1126/science.aaa8415

Kanapathipillai, K. and Kumaran, S. (2022). The mediating effect of relationship marketing strategy between digital marketing strategy and consumers’ purchase decisions in the automotive industry in malaysia. European Journal of Management and Marketing Studies, 7(2). https://doi.org/10.46827/ejmms.v7i2.1205

Kareem, H., Dauwed, M., Meri, A., & Aldujaili, A. (2022). Technology readiness in smes: accounting information systems, knowledge management capabilities, and innovation. Synthesis of Α-Fe2o3 Nanoparticles by Photolysis Method for Novel Dye-Sensitized Solar Cell, 1(3), 65-72. https://doi.org/10.55945/joasnt.2022.1.3.65-72

Karen, K. and Zai, I. (2022). Analyzing the effects of digital marketing on brand awareness among internet users. MBR (Management and Business Review), 6(2). https://doi.org/10.21067/mbr.v6i2.7298

Katsikeas, C., Leonidou, L., & Zeriti, A. (2019). Revisiting international marketing strategy in a digital era. International Marketing Review, 37(3), 405-424. https://doi.org/10.1108/imr-02-2019-0080

Keegan, B., Dennehy, D., & Naudé, P. (2022). Implementing artificial intelligence in traditional b2b marketing practices: an activity theory perspective. Information Systems Frontiers. https://doi.org/10.1007/s10796-022-10294-1

Keegan, B., Dennehy, D., & Naudé, P. (2022). Implementing artificial intelligence in traditional b2b marketing practices: an activity theory perspective. Information Systems Frontiers. https://doi.org/10.1007/s10796-022-10294-1

Khalilov, A., Shestov, S., & Shinkarenko, V. (2021). Marketing communications in the digital economy.. https://doi.org/10.2991/assehr.k.210322.134

Kim, J., Giroux, M., & Lee, J. (2021). When do you trust ai? the effect of number presentation detail on consumer trust and acceptance of ai recommendations. Psychology and Marketing, 38(7), 1140-1155. https://doi.org/10.1002/mar.21498

Kiran, K. (2021). The transformation of marketing by ai. Journal of University of Shanghai for Science and Technology, 23(08), 391-410. https://doi.org/10.51201/jusst/21/08419

Kumar, D. (2024). Ethical and legal challenges of ai in marketing: an exploration of solutions. Journal of Information Communication and Ethics in Society, 22(1), 124-144. https://doi.org/10.1108/jices-05-2023-0068

Lee, J., Suh, T., Roy, D., & Baucus, M. (2019). Emerging technology and business model innovation: the case of artificial intelligence. Journal of Open Innovation Technology Market and Complexity, 5(3), 44. https://doi.org/10.3390/joitmc5030044

Liu, Y. and Chen, W. (2021). Optimization of brand marketing strategy of intelligent technology under the background of artificial intelligence. Mobile Information Systems, 2021, 1-8. https://doi.org/10.1155/2021/9507917

Lu, Y. and Gao, X. (2022). The impact of artificial intelligence technology on market public administration in a complex market environment. Wireless Communications and Mobile Computing, 2022, 1-13. https://doi.org/10.1155/2022/5646234

Lubis, A. F. (2020). THE STATE DETERMINES LEGAL SYSTEM WITH INTERNATIONAL HUMAN RIGHTS INSTRUMENTS. INTERNATIONAL JOURNAL OF MULTI SCIENCE, 1(04), 87-94.

Lubis, A. F. (2020). The Competence of the Judiciary in Cases of Document Forgery Conducted by a TNI Soldier Before Joining TNI. Tabsyir: Jurnal Dakwah dan Sosial Humaniora, 1(3), 01-09.

Marez, L., Vyncke, P., Berte, K., Schuurman, D., & Moor, K. (2007). Adopter segments, adoption determinants and mobile marketing. Journal of Targeting Measurement and Analysis for Marketing, 16(1), 78-95. https://doi.org/10.1057/palgrave.jt.5750057

Mogaji, E., Soetan, T., & Kieu, T. (2020). The implications of artificial intelligence on the digital marketing of financial services to vulnerable customers. Australasian Marketing Journal (Amj), 29(3), 235-242. https://doi.org/10.1016/j.ausmj.2020.05.003

Mogaji, E., Soetan, T., & Kieu, T. (2020). The implications of artificial intelligence on the digital marketing of financial services to vulnerable customers. Australasian Marketing Journal (Amj), 29(3), 235-242. https://doi.org/10.1016/j.ausmj.2020.05.003

Mogaji, E., Soetan, T., & Kieu, T. (2020). The implications of artificial intelligence on the digital marketing of financial services to vulnerable customers. Australasian Marketing Journal (Amj), 29(3), 235-242. https://doi.org/10.1016/j.ausmj.2020.05.003

Mouchabac, S., Adrien, V., Falala-Séchet, C., Bonnot, O., Maatoug, R., Millet, B., … & Ferreri, F. (2021). Psychiatric advance directives and artificial intelligence: a conceptual framework for theoretical and ethical principles. Frontiers in Psychiatry, 11. https://doi.org/10.3389/fpsyt.2020.622506

Nesterenko, V. and Олефіренко, О. (2023). The impact of ai development on the development of marketing communications. Marketing and Management of Innovations, 14(1), 169-181. https://doi.org/10.21272/mmi.2023.1-15

Overgoor, G., Chica, M., Rand, W., & Weishampel, A. (2019). Letting the computers take over: using ai to solve marketing problems. California Management Review, 61(4), 156-185. https://doi.org/10.1177/0008125619859318

Overgoor, G., Chica, M., Rand, W., & Weishampel, A. (2019). Letting the computers take over: using ai to solve marketing problems. California Management Review, 61(4), 156-185. https://doi.org/10.1177/0008125619859318

O’Connor, S., Yan, Y., Thilo, F., Felzmann, H., Dowding, D., & Lee, J. (2022). Artificial intelligence in nursing and midwifery: a systematic review. Journal of Clinical Nursing, 32(13-14), 2951-2968. https://doi.org/10.1111/jocn.16478

Paulich, B., Khodakarami, F., Spyropoulou, S., & Kumar, V. (2022). Customer-based execution strategy in a global digital economy. International Journal of Research in Marketing, 39(2), 566-582. https://doi.org/10.1016/j.ijresmar.2021.09.010

Peltier, J., Dahl, A., & Schibrowsky, J. (2023). Artificial intelligence in interactive marketing: a conceptual framework and research agenda. Journal of Research in Interactive Marketing, 18(1), 54-90. https://doi.org/10.1108/jrim-01-2023-0030

Peng, M., Kathuria, N., Viana, F., & Lima, A. (2021). Conglomeration, (de)globalization, and covid-19. Management and Organization Review, 17(2), 394-400. https://doi.org/10.1017/mor.2021.12

Pesonen, J., Laukkanen, T., & Komppula, R. (2011). Benefit segmentation of potential well-being tourists. Journal of Vacation Marketing, 17(4), 303-314. https://doi.org/10.1177/1356766711423322

Peyravi, B., Nekrošienė, J., & Lobanova, L. (2020). Revolutionized technologies for marketing: theoretical review with focus on artificial intelligence. Business Theory and Practice, 21(2), 827-834. https://doi.org/10.3846/btp.2020.12313

Qurtubi, N., Febrianti, M., Sugarindra, M., Hidayat, A., & Suyanto, M. (2022). The impact of digital marketing: a systematic literature review. International Journal of Interactive Mobile Technologies (Ijim), 16(13), 15-29. https://doi.org/10.3991/ijim.v16i13.30609

Rahayu, R. and Day, J. (2015). Determinant factors of e-commerce adoption by smes in developing country: evidence from indonesia. Procedia - Social and Behavioral Sciences, 195, 142-150. https://doi.org/10.1016/j.sbspro.2015.06.423

Shaik, M. (2023). Impact of artificial intelligence on marketing. East Asian Journal of Multidisciplinary Research, 2(3), 993-1004. https://doi.org/10.55927/eajmr.v2i3.3112

Srivastava, G. and Bag, S. (2023). Modern-day marketing concepts based on face recognition and neuro-marketing: a review and future research directions. Benchmarking an International Journal, 31(2), 410-438. https://doi.org/10.1108/bij-09-2022-0588

Stone, M., Aravopoulou, E., Ekinci, Y., Evans, G., Hobbs, M., Labib, A., … & Machtynger, L. (2020). Artificial intelligence (ai) in strategic marketing decision-making: a research agenda. The Bottom Line Managing Library Finances, 33(2), 183-200. https://doi.org/10.1108/bl-03-2020-0022

Varma, M. (2022). Use of big data in the process of customer segmentation in the retail sector. Technoarete Transactions on Advances in Data Science and Analytics, 1(2). https://doi.org/10.36647/ttadsa/01.02.a002

Wang, H. (2022). Market segmentation of online reviews: a network analysis approach. International Journal of Market Research, 64(5), 652-671. https://doi.org/10.1177/14707853211059076

Widyatmoko, W. (2022). DEVELOPMENT OF MARKETING STRATEGY THROUGH SOCIAL MEDIA IMPACT ON CONSUMER BEHAVIOR IN THE DIGITAL ERA. Proceeding of The International Conference on Economics and Business.

Wolfe, R. and Putler, D. (2002). How tight are the ties that bind stakeholder groups?. Organization Science, 13(1), 64-80. https://doi.org/10.1287/orsc.13.1.64.544

Wu, C. and Monfort, A. (2022). Role of artificial intelligence in marketing strategies and performance. Psychology and Marketing, 40(3), 484-496. https://doi.org/10.1002/mar.21737

Xu, X.L. (2021). Analysis on the Changes of Internet Marketing and Its Influence Under the Guidance of Integrated Marketing Communication: Taking Genki Forest as an Example. Proceedings of the 2nd International Conference on Management, Economy and Law (ICMEL 2021).

Xu, Y., Shieh, C., Esch, P., & Ling, I. (2020). Ai customer service: task complexity, problem-solving ability, and usage intention. Australasian Marketing Journal (Amj), 28(4), 189-199. https://doi.org/10.1016/j.ausmj.2020.03.005

Yang, X., Li, H., Ni, L., & Li, T. (2021). Application of artificial intelligence in precision marketing. Journal of Organizational and End User Computing, 33(4), 209-219. https://doi.org/10.4018/joeuc.20210701.oa10

Yu, Y. (2022). The role and influence of artificial intelligence on advertising industry.. https://doi.org/10.2991/assehr.k.220105.037

Zaman, K. (2022). Transformation of marketing decisions through artificial intelligence and digital marketing. Journal of Marketing Strategies, 4(2), 353-364. https://doi.org/10.52633/jms.v4i2.210

Zhang, J. and Zhang, Z. (2023). Ethics and governance of trustworthy medical artificial intelligence. BMC Medical Informatics and Decision Making, 23(1). https://doi.org/10.1186/s12911-023-02103-9

Zhang, L., Sun, J., Jiang, B., Wang, L., Zhang, Y., & Xie, X. (2021). Development of artificial intelligence in epicardial and pericoronary adipose tissue imaging: a systematic review. European Journal of Hybrid Imaging, 5(1). https://doi.org/10.1186/s41824-021-00107-0

Zhu, C. (2022). Construction and risk analysis of marketing system based on ai. Scientific Programming, 2022, 1-9. https://doi.org/10.1155/2022/2839834

Zhu, C. (2022). Construction and risk analysis of marketing system based on ai. Scientific Programming, 2022, 1-9. https://doi.org/10.1155/2022/2839834

Downloads

Published

2024-03-27

How to Cite

The Influence of Digital Technology on Marketing Strategy. (2024). Management Studies and Business Journal (PRODUCTIVITY), 1(3), 432-446. https://doi.org/10.62207/f4s8px08