Effects of digital marketing service components on banks performance with mediating role of customer intention the case of selected Commercial Banks in Moyale and Yabello Town, Ethiopia

Abstract

Despite the increasing competition for digital marketing services in the banking sector, many banks continue to struggle with inefficiencies and a lack of adoption of modern technologies. Research on the impact of integrated digital marketing services on Ethiopian banks' performance is still lacking. Thus, the objective of the study was to gain better knowledge of how the key components of digital marketing services impact bank performance, particularly in Ethiopia's banking sector. Responses were gathered by selecting 400 employees and customers of specific commercial banks in Borena, southern Ethiopia, and asking them to fill out both closed ended and open-ended questionnaires. A pragmatic research philosophy, a mixed-methods technique, a cross-sectional survey conducted at a specific moment in time, and sequential explanatory designs were all employed to achieve the study's objectives. The data was analyzed using structural equation modelling (SEM) with AMOS and SPSS version 26. Demographic variables were analyzed using descriptive statistics. The findings showed that internet banking, mobile banking, point-of-sale machines, and automated teller machines all significantly contribute to operational efficiency and customer engagement, which in turn fosters improved financial outcomes for banks. Moreover, a digital marketing service has a substantial and meaningful impact on both bank performance and customer intention. In order to improve bank performance, this study suggested that digital marketing services be taken into account when providing banking services. Additionally, rather than focusing on banks, it was suggested that future researchers look at how digital marketing affects other service organizations. In the banking sector, this study adds to the body of knowledge by concentrating on the mediating function of client intentions in the relationship between digital marketing and bank performance.