Chin DBA 40411999 Redacted
Chin DBA 40411999 Redacted
Chin DBA 40411999 Redacted
March 2023
Abstract
This study burrows in-depth into understanding the role of digital marketing as
a strategic tool for industrial supplies SMEs in Singapore. This would allow
SME owners/managers to comprehend the role of digital marketing (DM) tools
in forging a sustainable competitive advantage for these companies. The data
for this study was collected by conducting 10 semi-structured interviews
through purposive sampling. Six owners/managers of the industrial supplies
SMEs in Singapore and four customers with digital marketing capabilities were
selected for the interviews. This dyadic approach was applied to improve the
validity of this study.
The study findings of this thesis would enrich the digital marketing literature. A
novel approach was posited by combining the RBT and RBN as the
underpinning theories to investigate the role of digital marketing in forging
competitive advantages for industrial supplies SMEs in Singapore. This thesis
recommends DM tools that are helpful to improve business performance
despite having limited company resources. An action framework that guides
SME owners/managers in adopting digital marketing innovation in their
businesses was postulated to enable these practitioners to build more RBNs
and increase customer retention.
i
Acknowledgement
I would like to thank all members of my DBA cohort, the programme leader, Dr
Gerri Matthews-Smith, and the Edinburgh Napier University DBA team who
have taught me in the DBAs modules for their patience in making sure all my
questions were answered. They have been a great source of guidance and
encouragement. Completion of this thesis would not have been possible
without the support of my Edinburgh Napier University’s supervisors Prof
Nazam Dzolkarnaini and Dr Marizah Minhat, and my local supervisor, Dr
Melissa Liow. Their patience and guidance have shaped me into a better
researcher today.
I would also like to thank the owners/managers and the customers involved in
the interviews for giving their valuable feedback and sharing their rich
experiences. This thesis would not have been possible without the
understanding and support given by Edinburgh Napier University’s DBA team,
my supervisors and the participants in the research.
ii
Table of Contents
Abstract ........................................................................................................... i
Acknowledgement...........................................................................................ii
Table of Contents........................................................................................... iii
List of Table .................................................................................................. vii
List of Figure ................................................................................................ viii
Declaration .....................................................................................................ix
CHAPTER ONE: INTRODUCTION................................................................ 1
1.1. Overview, background context & motivation ..................................... 1
1.2. Definitions ......................................................................................... 4
1.2.1. Small and Medium Enterprises (SMEs) ......................................... 5
1.2.2. Industrial supplies .......................................................................... 5
1.3. Research aim, objectives and approach ........................................... 6
1.4. Research significance and contribution ............................................ 8
1.5. Thesis organisation ........................................................................... 9
CHAPTER TWO: LITERATURE REVIEW ................................................... 11
2.1. Introduction ..................................................................................... 11
2.2. The Background of Singapore ........................................................ 11
2.3. Theoretical Framework ................................................................... 13
2.4. The resource-based theory ............................................................. 14
2.5. The theory of relationship-based network structure ........................ 17
2.6. The digital marketing....................................................................... 21
2.6.1. Website marketing tools .............................................................. 24
2.6.2. Search Engine Marketing (SEM) tools ......................................... 25
2.6.3. Website directory / social media tools ......................................... 27
2.6.4. Email marketing tools .................................................................. 28
2.6.5. Digital word-of-mouth / blog tools ................................................ 30
2.6.6. Digital marketing tools as an enabler for relationship-based
network structure ...................................................................................... 31
2.7. The competitive advantages ........................................................... 32
2.8. Digital marketing tool as an enabler to build competitive advantages
for SMEs ................................................................................................... 33
2.8.1. Customer acquisition ................................................................... 34
2.8.2. Brand visibility.............................................................................. 35
2.8.3. Going global ................................................................................ 36
iii
2.8.4. Customer satisfaction .................................................................. 37
2.8.5. Sales revenue.............................................................................. 38
2.8.6. Product and services appeal ....................................................... 39
2.8.7. Brand credibility ........................................................................... 40
2.8.8. International appeal ..................................................................... 41
2.8.9. Customer loyalty / retention ......................................................... 42
2.8.10. Value for money ....................................................................... 44
2.9. Research gap ................................................................................. 45
2.10. Chapter summary ........................................................................ 46
CHAPTER THREE: RESEARCH METHODOLOGY .................................... 47
3.1. Introduction ..................................................................................... 47
3.2. Research paradigm and design ...................................................... 47
3.2.1. Post-positivism paradigms. ............................................................. 48
3.2.2. Constructivism paradigms............................................................... 49
3.3. Qualitative research approach ........................................................ 50
3.4. Data collection & Sampling approach ............................................. 51
3.5. Discussion of research ethics ......................................................... 53
3.5.1. Potential ethical problems with interviews and ethical
considerations undertaken to support the participants ............................. 53
3.6. The Interviews ............................................................................. 54
3.6.1. Primary data: Semi-structured interviews .................................... 54
3.6.2. Pilot studies .............................................................................. 55
3.6.3. Data collection: the owners/managers perspectives ................ 56
3.6.4. Data collection: the customer perspectives .............................. 57
3.7. Interview design .............................................................................. 59
3.8. Data analysis .................................................................................. 62
3.8.1. Thematic analysis ........................................................................ 63
3.9. Validity of the research ................................................................... 67
3.10. Methodology Limitation ................................................................ 71
3.11. Chapter summary ........................................................................ 72
CHAPTER FOUR: ANALYSIS AND FINDING ............................................. 73
4.1. Introduction ..................................................................................... 73
4.2. Demographic overview ................................................................... 73
4.3. Owners/Managers perspectives ..................................................... 78
4.3.1. Prominent digital marketing tools used (RO1) ............................. 79
iv
4.3.1.1. Digital marketing tools used for customer acquisition............... 79
4.3.1.2. Digital marketing tools used in customer retention ................... 81
4.3.1.3. Overview of prominent Digital marketing tools used (RO1) ...... 84
4.3.2. Digital Marketing Tools and Strategic Benefits (RO2) ................. 85
4.3.2.1. Digital marketing as enabler in competitive advantages........... 89
4.3.2.2. Overview of Digital marketing and strategic benefits (RO2) .... 92
4.3.3. Effectiveness of digital marketing tools (RO3) ............................. 94
4.3.3.1. Overview of effectiveness of digital marketing tools (RO3) ...... 98
4.4. Customer perspectives ................................................................... 99
4.4.1. Prominent digital marketing tools used (RO1) ............................. 99
4.4.1.1. Digital marketing tools used for new suppliers ......................... 99
4.4.1.2. Digital marketing tools used for existing suppliers .................. 101
4.4.2. Digital marketing tools as strategic benefits (RO2) .................... 103
4.4.2.1. Digital marketing as enabler in competitive advantages ......... 104
4.4.2.2. Overview of Digital marketing and strategic benefits (RO2) .. 107
4.4.3. Effectiveness of digital marketing tools (RO3) ........................... 109
4.5. Chapter summary ......................................................................... 112
CHAPTER FIVE: DISCUSSIONS .............................................................. 114
5.1. Introduction ................................................................................... 114
5.2. Prominent digital marketing tools (RO1) ....................................... 114
5.2.1. Prominent digital marketing tools for customer acquisition ........ 114
5.2.2. Prominent digital marketing tools for customer retention ........... 118
5.3. Digital marketing tools as the enabler for competitive advantage
(RO2) ..................................................................................................... 119
5.4. Effectiveness of digital marketing tools in customer acquisition and
retention (RO3) ....................................................................................... 128
5.5. Chapter summary ......................................................................... 133
CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS................... 134
6. Introduction ...................................................................................... 134
6.1. Achievement of Research Aim ...................................................... 134
6.2. Contribution to Knowledge ............................................................ 137
6.3. Contribution to Practice................................................................. 139
6.4. Limitations of the Study................................................................. 143
6.5. Suggestions for future Research .................................................. 144
6.6. Final Thoughts .............................................................................. 145
v
REFERENCES .......................................................................................... 146
Appendix 1 – Literature Grit .................................................................... 164
Appendix 2 – Qualifying email for SMEs Owners/Managers .................. 165
Appendix 3 –Qualifying email for Customers buying from Singapore SMEs
............................................................................................................... 166
Appendix 4 – interview consent form ...................................................... 167
Appendix 5 – interview questionnaire ..................................................... 168
Appendix 6 – interviewee details ............................................................ 172
Appendix 7 – Thematic analysis process................................................ 174
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List of Tables
vii
Table 22 Combined summary of the findings for RO2: To investigate the
extent that industrial supplies SMEs benefitted by using digital marketing
tools as a strategic tool. ............................................................................. 121
Table 23 Summary of RO3: The effectiveness of digital marketing tools in
customer acquisition and customer retention. ............................................ 128
List of Figures
viii
Declaration
Signed:
ix
CHAPTER ONE: INTRODUCTION
According to Arli et al. (2018), digital platforms can help to reduce salesperson
involvement. However, B2B customers demand complex service and solution
offerings which requires salesperson involvement and RBN. Digital marketing
tools, such as websites, ranked as the second-most-trusted item in the mind-
set of consumers with RBNs as the most-trusted (The Nielsen Company,
2015).
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RBNs (Steinfield et al., 1995; Turunen, 2021; Veronica et al., 2018), although
this is not straightforward to understand.
The digital marketing tools in this thesis refer to the use of web-based media
in a B2B context (Bhayani & Vachhani, 2014; James, 2020) such as websites,
emails, search engines, customer relationship management systems and
social media platforms (Aini & Hapsari, 2019; Durmaz & Efendioglu, 2016).
Bhayani and Vachhani (2014) argued that digital marketing tools do not
change traditional ways of business that are reliant on RBN but also add value
to the relational selling approach enhancing relationships using digital
marketing tools such as helping to integrate customer relationship building (Arli
et al., 2018). James (2020) concluded that digital marketing tools have a
positive and significant impact on SMEs’ relationships and network building.
2
government, there are about 25% of SMEs took up the program to begin
digitalisation (Kenny, 2021b). SMEs in the manufacturing industries were
carefully targeted as part of the digitalisation initiatives (Kenny, 2021a) as
manufacturing companies are relocating out of Singapore due to high land
prices and labour costs (Bloom, 2014; Choo, 2021). To combat the challenges,
digitalisation is encouraged to help the manufacturing sector. The government
envisions the transformation of the sector to stay competitive (Ng, 2021).
There has been an increase in the number of business closures among the
industrial supplies SMEs in Singapore (Accounting and Corporate Regulatory
Authority, 2021) due to the saturated and small market in Singapore. Although
many Singaporean businesses have dealings with neighbouring countries,
such as Malaysia (Tessa, 2021), the resources needed to capture market
share in those countries have been inadequate (Neoh, 2018). Iankova et al.
(2019) have suggested that an in-depth investigation of these topics is needed,
as currently, there is a lack of literature on B2B digital marketing despite
intensive digitalisation in Singapore. Furthermore, SMEs in general lack the
resources within their organisation to implement digital marketing. A resource-
based approach helps to identify opportunities for SMEs to improve their
capabilities and work with the limited resources they have available.
3
SMEs normally have limited resources compared with larger companies and
this is especially the case in the challenging economic environment of
Singapore. Companies with limited market share are facing stiff competition
locally. Digitalisation is encouraged to help the manufacturing sector. The
influence of Industry 4.0 envisions the transformation of the sector to stay
competitive (Ng, 2021). In recent years, with digitalisation, buyers could search
the Internet and find new sources and this has brought challenges to the
traditional sales activity that is heavily reliant on face-to-face interaction (Arli
et al., 2018). In addition, Forkman et al. (2022) also conclude that the
challenges that face-to-face meeting is resource consuming and could expose
risks to the overall sales performance. Therefore, it is important to explore how
digital marketing could help the industrial supplies SMEs in Singapore which
mainly focused on B2B relationships.
The purpose of this thesis is to fill the gap as there is limited digital marketing
literature in the context of the industrial supplies SMEs in Singapore to
promote digitalisation. It also seeks to provide an understanding of managerial
and customer perspectives on digital marketing tools and RBN theory, and
how both are affected. It also adds to the academic literature using RBT as an
underpinning theory and focusing on RBNs and digital marketing in the context
of Singapore.
This chapter emphasises the need to consider the adoption of digital marketing
tools amidst this evolving global digitalisation transformation. It is also
important to understand how RBNs have played a critical role in helping
industrial supplies SMEs in Singapore remain competitive until the present day,
while drawing upon the RBT.
1.2. Definitions
There are many similar terms used in different contexts in this field. For the
sake of clarity, the definitions of terms used throughout this thesis are
explained as follows:
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1.2.1. Small and Medium Enterprises (SMEs)
The definition of SMEs varies across countries. For example, the number of
employees in an SME differs (Kusi et al., 2015). In Singapore, the SkillsFuture
Singapore Agency (2020) defines a local SME as having at least 30% local
shareholding and a group annual sales turnover of not more than $100 million
or a group employment size of not more than 200 employees. Currently, SMEs
make up 99% of the total business entities in Singapore (Ministry of Trade and
Industry, 2020).
In this thesis, industrial supplies constitute companies from the following two
codes classified by the government, as shown in Table 1. This sector is
considered part of the wholesale trade, B2B category in Singapore (Singapore
Department of Statistics, 2019).
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Table 1
The main focus is on the two business activities of industrial supplies, mainly
on ‘Other Machinery & Equipment Nec’ and ‘General Hardware’. The term
industrial supplier is used to represent the businesses that provide industrial
supplies. This research focuses only on highly technical industrial supplies
such as abrasives, an indirect material which is used for grinding and polishing
process in the manufacturing process (Alary, 2021), and cutting tool products,
an indirect material which is used for the manufacturing process such as
milling and turning (Schneider, 2009; Sandvik Coromant, 2018). As the
focused product range in this research is commonly classified under the
General Hardware and Other Machinery & Equipment Nec which covers the
highly technical industrial supplies as well as all other industrial supplies.
This research aims to explore the role of digital marketing as a strategic tool,
and the gap in RBN structure from the underpinning RBT for industrial supplies
SMEs in Singapore to gain sustainable competitive advantages.
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RO2: To investigate the extent to which industrial supplies SMEs in
Singapore benefitted by using digital marketing tools strategically.
The fulfilment of these aims and objectives will make a valuable contribution
to the owners/managers in the business by offering an understanding of how
their adoption of digital marketing tools may assist them to expand, or at least
maintain, their digital marketing capabilities to achieve competitive advantages.
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of the research would be considered as a holistic approach toward how the
industrial supplies SMEs in Singapore would behave.
First, the research deals with the issue of prominent and most effective digital
marketing tools used at present. Owners/managers from the industrial
supplies SMEs in Singapore could adopt similar digital marketing tools to
improve their business. Second, the research explores and develops an
understanding of how digital marketing tools could create competitive
advantages for SMEs. Owners/managers could apply the recommendations
to their business strategy. Third, it also explores the effectiveness of digital
marketing as a tool to enhance the RBN with the ultimate goal of acquiring
more customers through the network and achieving better customer retention
using RBT as the underpinning theory. The owners/managers that have
resource limitations would be able to review the effectiveness of various digital
marketing tools before implementing the recommendations.
The thesis also expands the understanding of the use of digital marketing tools
and RBN theory from the underpinning RBT to fill a gap in the customer
acquisition-retention literature and the digital marketing literature. To improve
the robustness of the thesis, the data triangulation technique applied in this
study provides an additional showcase to the customer acquisition-retention
8
literature in increasing the validity of the results, as the research was
undertaken qualitatively. This research was focused on a specific area of study
which could limit the generalisation in the finding, as the targeted industry in
this study was focused on the environment of the industrial supplies in
Singapore where there is a unique relationship between the RBN, digital
marketing and technical challenges of the manufacturing industry. However,
the methodological process of using a dyadic approach could also contribute
to further research in showcasing both the owners/managers and the
customers’ perspectives, an in-depth discussion would be in Chapter 6.5.
This thesis comprises six chapters. Chapter 1 introduces the thesis and
provides an overview of the background context, aim and objectives. It
summarises the research approach and contributions of the thesis.
Chapter 4 presents the detailed analysis and findings from the semi-structured
interviews for two different groups of participants.
Chapter 5 discusses the research findings from the two different groups of
participants and uses the data triangulation technique to increase the
robustness of the discussion.
9
Chapter 6 summarises the achievement of the research aims, gives
recommendations, explores the limitations, suggests further research, and
concludes this thesis.
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CHAPTER TWO: LITERATURE REVIEW
2.1. Introduction
This chapter serves as a foundation for the thesis through an extended review
of the literature, broken down into three parts, namely: (1) a review of relevant
underpinning theories related to resource-based, relationship-based networks,
digital marketing and competitive advantages, (2) a review of research
evidence and an assessment of the impact of the underpinning theories on
business practice, and (3) a chapter summary.
The increase in land prices and labour costs have resulted in many
manufacturing companies relocating their factories out of Singapore (Bloom,
11
2014; Choo, 2021; Reuters, 2012) to Malaysia (Lim & Danubrata, 2012; Tessa
2021). This has affected the industrial supplies SMEs in Singapore: as more
factories move out of Singapore, they typically look into buying their industrial
supplies from a local source to shorten their supply chain and increase the
efficiency of their business (Handfield, 2019). Despite the manufacturing
sector contributing 20% of Singapore’s GDP (Yong, 2021), there is an increase
in the number of businesses from the industrial supplies SMEs in Singapore
that are shutting down (Accounting and Corporate Regulatory Authority, 2021)
due to the saturated and small size market in Singapore. This has posed great
challenges to the industrial supplies SMEs in Singapore bearing in mind that
99% of the businesses in Singapore are SMEs (Singapore Department of
Statistics, 2021).
12
created new business opportunities in the current tightened labour market and
challenging business environment (Elangovan, 2018). However, it is still the
case that a majority of SMEs have not adopted new technologies in their
businesses, citing a lack of resources and skills to implement them as their
main reason (Tay, 2019). Therefore, to understand the industrial supplies
SMEs in Singapore whose main customers are in Singapore and Malaysia,
there is a need to use RBT to review their internal resources.
Conceptually, the following Figure 1 shows the overall scope of this thesis.
The resource-based theory (RBT) is used to explain differences in firm
performance using internal resources such as digital marketing tools, while the
relationship-based network theory explains the external forces that bind
various variables to achieve sustainable competitive advantage (Zaheer & Bell,
2005) for the owner-managers of the industrial supplies SMEs in Singapore.
Both resource-based and relationship-based network theories build the
foundation of this thesis while digital marketing tools and their performance
help create competitive advantages for the industrial supplies SMEs in
Singapore.
Figure 1
Overview Scope
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2.4. Resource-based theory
RBT has also been applied widely in recent years to marketing-related studies
and business development strategies (Kozlenkova et al., 2014; Porter, 1985),
by focusing on the limited resources that a company has for creating
competitive advantage (Barney, 1991; Grant, 1991; Wernerfelt, 1984).
14
Figure 2
Note. From The resource-based theory of competitive advantage: Implications for strategy formulation
(p.115) by Grant, 1991. California Management Review, 33(3), 114–135.
15
Competitive advantage is the primary source of inter-company profit
differentials (Grant, 1991). Therefore, according to Wernerfelt (1995),
strategies that are not resource-based are unlikely to succeed in a highly
competitive market.
There are studies that have suggested that successful companies with good
financial performance, such as McDonalds and Southwest Airlines, have
focused on other capabilities (Collins & Porras, 1997). Barney and Clark (2012)
suggested that improving non-financial capabilities can lead to sustained
competitive advantage. Therefore, a company should not focus only on current
profitability but should also take their future position and the development of
competitive advantage/s as their goals to optimise long-term company
performance (Hart, 1995). Moreover, Day (1994) argued that internal
resources are not the only resources that a company can utilise: there may
also be external resources available that a company can exploit without having
to own them.
This study aims to explore the role of digital marketing that could become a
strategic tool of the industrial supplies SMEs in Singapore, the discussion
focuses on RBT and how the digital marketing capabilities of industrial
supplies SMEs in Singapore would enable resources, including RBNs, to
improve their strategy and create competitive advantages. Although, there are
there theories such as marketing theory and strategic theory. The RBT would
provide a better underlying framework to look into the industrial supplies SMEs
16
in Singapore as highlighted Teece (2009), Kozlenkova et al. (2014) and Burt
and Soda (2021) and suggesting that RBT would be more appropriate,
especially in the environment which involves resource scarce SMEs. The other
theories could be more effective when the industrial supplies SMEs in
Singapore have resolved the scarcity issue.
There are studies that argued that since technological advancement which
made information easily available, the market is moving towards transactional
selling (Ahearne, 2022). However, Geiger and Finch (2011) emphasise the
need to balance relational and transactional selling strategies. Whereas, Arli
et. al. (2018) argued that technological advancement could help enhance
relationship selling, and companies could leverage technology to enhance
relationship-based network to build successful business network relationships.
In addition, due to the unique Singapore context where relationship-based
networks are greatly valued. It is important to understand how the relationship-
based network is applicable to this study.
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characteristics such as commitment, reciprocity, loyalty, and commitment to
maintaining the relationship for the long term (Chen & Chen, 2004). Although
in “yongo”, one is unable to develop a relationship without a proper connection,
“guanxi” and other RBNs typically keep their network closed and not
accessible to outsiders, although it is possible to be developed between
strangers depending on the changing needs and the situation between the
parties (Barbalet, 2021).
In RBN structures, the network is typically kept closed and most businesses
would normally focus on their network. In addition to the closed network of a
business, individual networks would often be brought into a business for official
dealings, translating into an organisational relationship between two
companies instead of a personal relationship (Kuo et al., 2020). A network
could be set up through a mediator’s guidance. Individual social activities, such
as going out for drinks or having meals, could help to build the relationship
(Zhang et al., 2019), which could be expanded through those social activities
and brought back to the business (Kuo et al., 2020).
The primary aim of the RBN structure in all businesses is to acquire and
maintain customers who are profitable for the business since good and stable
relationships with customers will provide a sense of trust, which in turn,
promotes long-term benefits to both parties (Yang et al., 2008; Zhang et al.,
2019). Relationships in companies occur with every individual. They make an
important contribution at the company level (Akhtar et al., 2018; Rocca, 2020)
and could ultimately improve performance by generating competitive
advantages (Cenamor et al., 2019). RBNs can help companies by promoting
long-term cooperation, as both parties understand each other well
(Varadarajan, 2020), trust each other (Zhang et al., 2021), and are better able
18
to solve any potential conflict or address any miscommunication (Casidya &
Nyadzayo, 2019; Yeh et al., 2020).
This helps companies know their customers’ goals and objectives, thereby
enabling them to better serve their customers. This, in turn, builds customer
loyalty (Suherna, 2021) and competitive advantages for the company
(Ledikwe et al., 2019). Using the competitive advantages that are generated
by relationship-based networks allows companies to increase their market
share (Agostini et al., 2019) as well as retain existing customers, which, in the
long run, benefits companies significantly.
In an RBN where companies tap into the potential benefits from the network,
the relationships can be used to create benefits and competitive advantages.
This helps companies compete in the global market (Liu & Yang, 2020) and
achieve their goals. Relationships are not built overnight: they require time and
opportunity for individual social activities to occur (Forkmann et al., 2022).
Furthermore, an RBN is heavily reliant on links with a person who has a
network to both parties to expand and build a new network (Guan, 2011; Kuo
et al., 2020; Zhang et al., 2019).
The size of the SMEs means that there are a limited number of networks that
they can generate (Agostini & Nosella, 2019; Lu & Beamish, 2001). In addition
to maintaining existing networks, these SMEs also need to develop new
networks if the company is to grow further. That means that the traditional
method of building a network physically by owners and managers is no longer
sustainable: they cannot both retain current networks and build new ones at
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the same time (Setkute & Dibb, 2022). They have reached the maximum
number of networks they can maintain.
Due to the rapid adoption of technology in everyday life, studies that focus
especially on the use of technologies for gaining new customers, building
relationships and ensuring customer loyalty (Hassan et al., 2019; Orenga-
Roglá & Chalmeta, 2016) have emerged in recent years. This has changed
the way SMEs can potentially run their businesses and maintain their
traditional methods of dealing with customers. Many studies show that the use
of digital tools has helped SMEs with their business strategy (Li et al., 2016)
and in building competitive advantages (Parker et al., 2016).
In summary, RBNs have long been in existence and are making a huge impact
on companies around the world. However, existing relationships take time and
effort to maintain. A new relationship would be most effective when there is a
bridge that links to it. In today’s digitalised age, digital marketing tools could
potentially take over some of the time and effort required to maintain existing
relationships and also act as a bridge to form new RBNs. Relationship-based
networks and digital marketing tools can both be used by industrial supplies
SMEs in Singapore to assist them in working towards building competitive
advantages and helping them have a better standing in the current competitive
market.
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2.6. Digital marketing
Digital marketing has been rapidly adopted by companies. It has changed how
people interact with one another (Adhiarso et al., 2018). However, there are
many conflicting views about whether digital marketing plays a part in
enhancing RBNs, suggesting that the issue is not as straightforward as some
belief (Ancillai et al., 2019).
In the current digital age, digital technology is used extensively in our daily
activities. More than one-third of the current population uses digital technology
(Zahoor & Qureshi, 2017) and this affects human behaviour as well. Digital
technology changes the traditional ways that companies interact and
communicate with each other and maintain (Reimann et al., 2021) or
establishes new relationships between individuals and businesses
(Fraccastoro et al., 2021). In the case of companies with business operations
using digital marketing, business performance can be realized optimally if all
work activities run effectively and efficiently so that they generate a competitive
advantage over their competitors.
Digital marketing has become important in the B2B context for companies as
it brings many benefits (Scheers, 2018). However, different digital marketing
tools are suitable for achieving different benefits. Using Search Engine
Marketing (SEM), for example, means that business advertisements are
available throughout the year and are accessible to a large segment of the
market. This makes them an opportunity to create a direct marketing
relationship with potential customers (Scheers, 2018; Todor, 2016).
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traditional marketing (Narsavidze, 2014). According to the Nielsen Company
(2015), people in the Asia Pacific region still prefer recommendations from
people they know when looking for products they need. This is the preferred
way of finding new suppliers for products they need. Looking at websites is
only their second preference. This shows that there are limitations on the role
that digital marketing plays in assisting a supplier company.
Companies dealing B2B will have different marketing tools and strategies from
those engaged in B2C (Iankova et al., 2019). Given that the industrial supplies
sector sells consumable products, customers typically make repeat purchases
over a prolonged period unless there are factors that cause them to switch
suppliers. To keep these customers, companies strive to build relationships
with them so that they can resolve any problems that may arise effectively.
Companies can tap into digital marketing tools to help build new networks.
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Table 2
Industrial Marketing
2021 Krings et al. Management: Digital Media X X X
Optimization for B2B Marketing
Note. Compiled by author from searching for digital marketing tools used for the past 10 years. Refer
to Appendix 1 for more details.
Table 2 shows the digital marketing tools most commonly used by B2B
companies. They are websites, Search Engine Marketing (SEM), email,
participating in online directories or social media and using a blog as a means
23
of creating word of mouth referrals from existing customers through a feedback
comment section. Although those are the commonly used tool that is used by
the B2B companies, the digital marketing tools and how they are being used
might differ in Singapore. A more in-depth analysis will be done in the following
section to understand how the tools are used and how they contribute to
companies.
There are many ways in which a website could help a company build
competitive advantages, such as enhancing the brand, increasing brand
equity (Dumitriu et al., 2019) and leveraging on a global image (Makrides et
24
al., 2020). In the industrial supplies SMEs in Singapore, there are fair number
of companies which have a website presence. However, it is not sufficient
merely to have a website as the main digital marketing tool. B2B sales cycles
are complex and more needs to be done to effectively create competitive
advantages using digital marketing (Veronica et al., 2018). One other method
is using Search Engine Marketing (SEM) to help attract potential customers to
the website.
Search Engine Marketing (SEM) is a very broad topic on its own but the
minimum requirement for SEM work is to have a basic website and a website
marketing strategy. The fundamental goal of SEM is to enhance the visibility
of a website presence, which could be classified into three main sub-
categories, Pay-per-Click (PPC), Content marketing, and search engine
optimisation (SEO).
SEM, according to Leung and Mo (2019), is defined as tactics and skills that
are used for directing internet users from search engines to marketing
websites. Such techniques usually include PPC, which is paying a search
engine to put a website at the top of a list of results when selected keywords
that the company has chosen are searched for. The company pays the search
25
engine every time a potential customer clicks on their link (Aini & Hapsari,
2019).
In addition, SEM could assist in helping the company build brand visibility, as
SEM helps websites to be listed at the top of search results. It assists increase
brand visibility when potential customers search for related items (Makrides et
al., 2020; Nikunen et al., 2017).
26
2.6.3. Website directory / social media tools
Currently, social media are playing a very active role as a digital marketing
tool. In social media, advertisements can be shown only to a certain
demographic, meaning advertising can be targeted to those who are likely to
be interested (Makrides et al., 2020). This is highly effective as it reduces
wastage of time and effort: the company is not paying for poor quality leads,
so it is especially good value for money from the company’s perspective (Ainin
et al., 2015). Social media can also be used to direct customers to the
company website for more information, enhancing the sales conversion
process. It is also feasible for SMEs to build relationships and networks using
social media.
That said, social media can only be used as a bridge to build informal networks
(Ainin et al., 2015). In terms of bridges used for more formal networks, some
SMEs list themselves on website directories such as Greenbook, Yellowpages,
Alibaba and many others. These website directories can help SMEs showcase
their presence online and direct potential customers to the company website
to find out more about their products and services.
Social media and website directories can also help companies build more
RBNs. This follows because using social media for paid advertisements allows
targeted individuals to find out about and connect to the companies when they
have certain enquiries. Social media can also assist as a bridge for the
individual to build informal networks to enhance their relationship-based
networks (Ainin et al., 2015; Kumar et al., 2021). Website directories are used
for more formal network building. Potential customers can find a company in
the website directory and make contact with them concerning their enquiry.
Companies can use their response to the enquiry to build a relationship with
the customer, thus enlarging their relationship-based network.
However, website directories are not standalone digital marketing tools. They
rely on websites and can only act as a bridge to direct potential customers to
the company website. However, from a manager’s perspective, the cost and
maintenance of the website directory might be a challenge as the amount of
27
traffic driven to the company website may not be high enough to warrant the
cost. As for using social media tools, according to Ainin et al. (2015) using
social media tools helps in improving RBNs because the company has more
direct contact with the customers, giving it the capacity to better understand
customers. The challenge of using both website directory and social media are
that these digital marketing tools consume company resources. The company
needs to consider how to most effectively use those tools (Veronica et al.,
2018).
In summary, website directories and social media tools can help companies
by directing potential customers to their websites from these tools. Both
website directory and social media tools can also assist by directing potential
customers to the company’s website, enabling the company to make direct
contact with customers, understand customers better and build an RBN. The
only disadvantages of using those tools are the resources required, including
the know-how to find the most effective channel for the company to use digital
marketing tools. Email marketing tools as an alternative that can reach more
customers while potentially using fewer resources will be reviewed next.
Email marketing can also be used to help direct customers to the company
website (Turunen, 2021), which can then show customers more about the
28
company, build brand credibility and assist with the sales conversion process.
Leung & Mo (2019) also define email marketing as the most successful
channel for delivering highly relevant marketing communications to target
customers. Moreover, it can also play a much larger role in terms of building
RBNs with the customers as it acts as a communication method with the
customers. Frequent communication with existing customers can help to build
relationships, understand them better, as well as potentially increase sales to
them. Targeted marketing email communications can also help a company
acquire new customers and to act as a mediator in building RBNs.
Most companies would be familiar with using email and, as most companies
would check their email almost daily, the cost of sending email is virtually free
(Neill & Richard, 2012; Rosokhata et al., 2020). This helps by outreaching to
customers effectively with the added benefit of being able to engage the
customers (Turunen, 2021).
In summary, email marketing tools could help the company to introduce new
products and services to existing customers. As email is one of the oldest
digital marketing tools used by companies all across the world, the outreach
to existing customers would be huge. However, for email content to be relevant
and valuable to the customer, the customer should always be the focus of
email marketing. Any mistake in using email marketing tools could end up
disadvantaging the company (Merisavo & Raulas, 2004).
The final digital marketing tools that could potentially expand the relationship-
based networks of the company, build branding as well as help retain
customers that will be examined here are digital word-of-mouth and blogs. In
29
the next segment, the advantages and disadvantages of these digital
marketing tools are explored.
This digital marketing tool can serve as a bridge, helping to enhance the speed
and frequency with which the company establishes RBNs. This arises from the
fact that the digital word-of-mouth recommendation might come from someone
with whom the potential customers are familiar. Thus, they automatically
become a bridge despite not setting up a physical/face-to-face meeting or an
event, which have been the traditional means of building new RBNs in the past.
Blogging creates useful information and has the potential to improve the
ranking of the company website in internet searches (Thomas, 2016).
Constant blogging could create additional activity, as customers could leave
their feedback in the blog comment section. Interactive blog content could also
help to attract the attention of customers, thus improving customer interaction
30
and customer loyalty at a minimum cost to the company (Ashwini & Varma,
2020).
The only challenge facing digital word-of-mouth is the need to create blog
content that appeals to potential customers so that they would be sufficiently
interested to read and comment on it (Dean, 2016). From the managerial
perspective, it is not always easy to find someone who can generate
interesting content, especially in smaller companies.
There are various methods for using digital marketing to build competitive
advantages for companies, giving the Singapore business environment that is
heavily reliant on RBN, the focus of this thesis is using digital marketing tools
to build RBN structures to create competitive advantages for SMEs.
31
Most research shows that digital marketing tools affect customer relationships
(Ancillai et al., 2019; Hassan et al., 2019; Nikunen et al., 2017; Orenga-Roglá
& Chalmeta, 2016; Reimann et al., 2021), ranging from assisting in building
RBNs to helping companies retain their customers and attracting potential new
customers. Different digital marketing tools can be used for building RBNs. In
the following section, RBNs and how digital marketing tools can potentially
lead to forging competitive advantages for companies will be discussed.
The theory of competitive advantage has been heavily researched over time.
There are many definitions of competitive advantage, ranging from providing
a differential strategy (Porter, 1985; Wernerfelt, 1984), creating a value
creation strategy (Barney, 1991; Day, 2014; Grant, 1991) and being
responsible to customers (Lestari et al., 2020). According to Porter (1985),
there are two ways that a company can build a competitive advantage: cost
advantage, offering the same products and services at a lower cost than
competitors; and differentiation advantage, providing better products and
services than competitors. This was further reinforced by Barney’s (1991)
Valuable, Rare, Inimitable and Non-Substitutable framework for generating
competitive advantage.
32
Moreover, in the current market, the industrial supplies SMEs in Singapore
face challenges from global market competitiveness. They are likely to be
pushed out of the value chain if they do not have any competitive advantages
to offer their customers, given that their customers are also looking to increase
their competitiveness in their businesses by optimising suppliers.
In Asia, many successful SMEs achieved success through the RBNs of the
owners or managers. Such networks are named differently across Asia,
although the concepts are very similar. In Chinese-dominated societies, such
as China, Taiwan, Hong Kong (Bian, 2019; Burt et al., 2018), the term
commonly used is “guanxi”. “Yongo” is used in Korean society (Horak & Klein,
2016; Zhang et al., 2021) and these studies contribute to the RBN literature,
particularly in Asia, in which Singapore is located. Moreover, digital marketing
has also impacted RBNs in the world where digital technologies have become
part of our everyday life. It has helped SMEs to build different strategies and
variables that could help them obtain a competitive advantage.
While there are signs that the industrial supplies SMEs in Singapore have built
competitive advantages by utilising RBNs and digital marketing, there has
been a little attempt on using digital marketing to help enable RBNs, resource-
based theory and building competitive advantages.
As more than one-third of the world population uses digital marketing tools in
their daily life (Zahoor & Qureshi, 2017), the basic relationship-based network
theory (RBN), which, for decades, has explored how people interact with each
other, remains unchanged (Zhang et al., 2019). In the unique environment of
Singapore, where digitalisation has rapidly taken place in recent years, digital
marketing tools have affected RBNs and assisted the industrial supplies SMEs
in Singapore to gain competitive advantages, as discussed earlier.
33
However, Veronica et al. (2018) argued that just building digital marketing
capability is not enough. More work needs to be done for B2B businesses as
this type of business is more complex and requires much more work than just
building simple digital marketing tools (Pandey et al.,2020). SMEs need to
understand that with their limited resources, building digital marketing tools
might be a challenge. Even with adequate resources to build good digital
marketing tools, the tools can only assist them to build capabilities for their
business and enable them to develop competitive advantage. However,
Herhausen et al. (2020) highlighted that even though digital marketing could
help RBN to build competitive advantages, there are many gaps between the
practice and the ideal situation, but found evidence that digital marketing tools
could create sustainable competitive advantages for the industrial supplies
SMEs in Singapore.
Moreover, even with the availability of digital marketing tools, studies show
that SMEs do not keep up with the pace of digital development and therefore
could not fully utilize digital marketing tools to the fullest potential (Taiminen &
Karjaluoto, 2015). Therefore, for a successful digital marketing tool to build a
competitive advantage, the SMEs would need to understand the nature of the
tools before implementing the digital marketing tools and adopt the tools
appropriately to build sustainable competitive advantages (Järvinen et al.,
2012).
There are various digital marketing tools that can assist in customer acquisition.
One such tool is by searching the internet using a search engine such as
Google. Customers use a search engine to search for a product they need.
They then click on the search result that takes them to the website where the
product specification that matches their requirement is listed (Vieira et al.,
2019). The customer would then initiate communication with the SMEs through
the website to make further enquiries. This would assist SMEs that use digital
marketing tools as using digital marketing tools could help to integrate
34
customer relationship building that would help to acquire customers (Arli et al.,
2018).
Digital marketing tools play a huge role in supporting brand visibility. One such
example is the company website and its content, which is always available at
any time of the year without any limitation on the location of potential
customers (Scheers, 2018). These characteristics of websites enable brand
visibility. However, as previously mentioned, just having a website is
insufficient. SEM should be used to attract more potential customers to the
website through various techniques.
In addition, using a blog, social media, website directories and digital word-of-
mouth could also enhance brand visibility. However, according to Couto and
Ferreira, (2017), SMEs do not see marketing as a way to increase brand
visibility, instead, customer involvement, satisfaction and building RBNs could
35
be the main factors that promote brand visibility of SMEs (Todor, 2016). In the
current digital age, digital marketing tools could enhance brand visibility
(Routray, 2020), which is needed to address the competitive environment
today (Negoit et al., 2018).
In the current digital age, where information is readily available, there is higher
competition as businesses are not only competing locally. This is especially
true in Singapore (Sim et al., 2003). Instead, they are competing against the
rest of the world with the help of digital marketing tools. By going to the global
market, SMEs could create a competitive advantage to benefit the company
long term (Sui & Baum, 2014) In addition, SMEs could also tap into RBNs to
go global (Veilleux et al., 2012), which would facilitate a quick and smooth
process for the SMEs to globalise (Liñán et al., 2020).
36
From the managerial perspective, as SMEs go global, market awareness
globally would increase and this would help with brand visibility, as well as
increase the potential for customer acquisition in the bigger global market (Aini
& Hapsari, 2019). This, in turn, would help to build confidence in terms of
company branding and would benefit the company by giving them the option
of using a global strategy as a competitive advantage.
In summary, the current competitive market has forced SMEs to go into the
global market to remain competitive. By doing so, SMEs can improve their
market share, awareness, brand visibility and brand creditability. In addition to
using RBNs to facilitate a quick and smooth globalisation process, with the
help of digital marketing tools, SMEs will be able to connect globally.
Furthermore, it is much easier to build RBNs with digital marketing tools and
hence achieve the benefits of going global with ease. This could ultimately
build competitive advantages for SMEs.
37
high levels of customer satisfaction can be due to using digital marketing tools,
as they can enhance communication (Aini & Hapsari, 2019) and
understanding (Constantinides, 2006) and provide a better customer
experience (Veronica et al., 2018), which would help the company achieve a
competitive advantage.
Most SMEs in general lack the budget for a range of purposes, from expanding
their business to investing in technologies to improve business processes.
Many SMEs face challenges in gaining access to additional working capital
and struggle to manage their working capital (Goh, 2018). In any scale of
business, a strong and supportive financial system is required for the
development, and strengthening of the supply chain and to counter or survive
any crisis within the company or in the market (Sonwalkar & Soni, 2017).
According to Musa & Pujawan (2018), financial resources can help to create
competitive advantages. Financially savvy businesses can spend resources
to gain a competitive advantage and have superior performance in their
industry (Lee et al., 2015; Nuryakin, 2020; Yang et al., 2018). In the case of
digital marketing tools, there is an indirect relationship between digital
38
marketing tools and sales revenue. As discussed earlier, digital marketing
tools can help SMEs with customer acquisition as well as customer satisfaction,
which would help SMEs to increase and retain customers.
From the customer perspective, the question of how to use digital marketing
tools to assist SMEs to make their products and services more appealing is
not as straightforward. In the context of B2B business, different stakeholders
will have different objectives (Jussila et al., 2014). According to Habibi et al.
(2015), the digital marketing tools that are used should assist customers to
facilitate decision making about whether to purchase the products they need.
This would be assisted by the quality of the product, customer interaction and
brand credibility, which could be enhanced by digital marketing tools and
relationship-based networks.
39
services appeal, businesses should understand the needs of their customers
and present suitable solutions that appeal to customers. Given the complex
technical requirements of the SMEs’ customers, digital marketing tools such
as the company website should have adequate information available so that
potential customers can assess whether the company has a potential solution
for them to consider.
In summary, digital marketing tools can make products and services appealing
to the customer. However, RBNs also influence the appeal of products and
services. This is especially true given the highly technical requirements of the
customers, and when a physical presence might be required to take a certain
technical measurement. By using digital marketing tools effectively, a
company may be able to provide solutions for customers without needing a
physical presence on their site to take technical measurements. Using digital
marketing tools and also building RBNs could increase the appeal of the
company’s products and services to customers, which, in turn, could build
competitive advantages for the SMEs.
40
enhanced communication, which would, in turn, generate a competitive
advantage (Cortez et al., 2020).
Cortez et al. (2020) further argued that positive customer experience could
come from digital word-of-mouth through digital platforms such as social media,
thus improving brand credibility. Hassan et al. (2019) found that B2B
customers preferred sources of information that had been approved and
validated by the market. However, brand credibility does not always depend
on the customer experience and reviews by the customer (digital word-of-
mouth): brand credibility must also be built by offering customers the best
quality of products and services (Shi et al., 2017).
Customers prefer to work with credible brands as they want a stable source of
suppliers and a pleasant experience, so they will normally find a credible brand
if they have new requirements.
There is much literature that discusses going international. In the current digital
age alongside globalisation, consumers are transitioning towards the global
market (Fjellström et al., 2020; Liñán et al., 2020). In addition, Liñán et al.
(2020) stated that SMEs face competition from large local and foreign
companies as, due to their size, SMEs often have difficulty in capturing export
markets and overcoming trade barriers. The global market tends to be
dominated by big multinational corporations. However, SMEs often have an
edge over big corporations due to the speed and flexibility of their decision-
making processes. This could potentially be a competitive advantage in the
41
fast-moving digital world today, where customers want a response as quickly
as possible regardless of the location of the company.
In summary, digital marketing tools can help customers to find the most
suitable products and services for their needs. In addition, customers can also
investigate RBNs. Companies that have international RBNs will enhance their
international appeal. Both digital marketing tools and relationship-based
network theory would help to build a company’s international appeal and,
hence, its competitive advantages.
42
networks through informal gatherings. Having a mediator to assist in
expanding their network could result in SMEs expanding their network and
potentially changing informal relationships into formal customer relationships
by acquiring the customers.
There are many studies that state that digital marketing tools could help to
build customer loyalty and retention (Nuseira& Refae, 2022). Nikunen et al.
(2017) concluded that website marketing and email marketing are the main
factors that contribute to building customer loyalty and retention. Website
marketing engages customer interest and email marketing gathers feedback
and enhances customer engagement. These tools enable the company to
better understand the customer and achieve greater customer satisfaction,
thereby increasing customer loyalty.
Although some studies argue that the quality of products and services, price
and brand image are also significant drivers of customer loyalty (Tu & Hsu,
2013), digital marketing tools could help to achieve good service quality
through a better understanding of customer needs (Cortez et al., 2020;
Fjellström et al., 2020; Routray, 2020), helping to benchmark against prices
and building brand credibility (Hassan et al., 2019), Geiger and Finch (2011)
argued that some buyers do not see any potential in maintaining relationships
with suppliers where their focus is mainly on prices of the item they purchase.
However, due to the nature of the industry, customers not only focus solely on
the price factor, the overall services and quality should also be taken into
consideration.
In summary, although the quality, price and brand image of the products and
services offered must be able to meet customer expectations to maintain
customer loyalty and retention, RBNs also have a very important role in
achieving customer loyalty and retention. Digital marketing tools could further
help by enhancing communication and engaging customers’ interest, and, in
turn, help to build competitive advantages for the SMEs.
43
2.8.10. Value for money
From the customer perspective, the definition of products and services that
offer value for money can be identified as efficiency and effectiveness
(McKevitt, 2015). The efficiency level that customers are looking for would be
subjective. Brand credibility could affect customers’ perception of whether the
products represent value for money (Chekalina et al., 2018; Dwivedia et al.,
2018).
44
2.9. Research gap
The literature review has unveiled the benefits of using RBNs in helping SMEs
acquire new customers using informal relationships, from bridging through
current networks in social activities (Zhang et al., 2019), then converting such
contacts into business relationship. This traditional marketing method is used
by most SMEs in the Singapore environment presently. However, in the B2B
environment, customer relationships tend to be deeper due to the
customisation effort needed (Lilien, 2016). This would suggest that
relationships alone cannot sustain the business, especially given the heavy
digitalisation occurring in Singapore. Although there has been an increase in
studies involving the exploration of relationship-based networks from the
perspective of resource-based theory (Burt & Soda, 2021), there is lack of
studies conducted in Singapore to date despite the focus on industrial sectors
in recent years.
The literature review has also unveiled the benefits of digital marketing tools.
However, it is questionable whether the industrial supplies SMEs in Singapore
would be similar because of the differences in unique business environments
affected by the high cost of operation and limited market-size. The current
studies mainly focused on using digital marketing tools as standalone tools
(see Appendix 1), focusing purely on them as a resource of the company.
Because the traditional marketing practice of using RBNs to conduct business
is widespread in Singapore, there is a gap in the literature on digital marketing
and relationship-based network theory using RBT as the underpinning theory.
45
towards a more transactional nature instead. As the current practices of using
digital marketing tools might also differ from ideal digital marketing capabilities
(Herhausen et al., 2020) and this probes this research to uncover the potential
gap that was unexplored, especially in the RBN heavily reliant practice in
Singapore.
In summary, there is a gap in the current digital marketing literature that has
been reviewed in understanding the link between digital marketing tools and
RBNs as a resource of the company. An in-depth investigation could help
understand how they could create various benefits to the industrial supplies
SMEs in Singapore. In addition, as discussed by Herhausen et al. (2020),
there might potentially be a misalignment between the ideal and practical and
this study would hope to uncover. In the current literature, there are lack of
studies done in Singapore on industrial supplies sector, despite the
government’s efforts to promote manufacturing in Singapore (Yong, 2021), the
failure to look into industrial supplies would mean potential hinder towards the
growth of manufacturing in the downstream of industrial supplies.
This review also uncovered the impact of the current digital age where many
customers are targeted by digital marketing tools. This could affect RBNs and
the challenges of applying digital marketing in the business. Therefore, this
review has given the thesis a direction: to explore the combination of RBT and
RBNs by using digital marketing tools as an enabler to build capabilities that
could create competitive advantages.
46
CHAPTER THREE: RESEARCH METHODOLOGY
3.1. Introduction
Moore (2011) defines learning from observing behaviours. There are many
potential definitions of a philosophical paradigm (Morgan, 2007). Morgan
(2007) further explains that the constitution of paradigm is a series of struggles
between competing interest groups, whereas Masterman (1970) identifies as
many as 22 terms of research paradigm. Burrell and Morgan (1979) describe
an objectivist as one who can view aspects of the world from external reality,
and a subjectivist as one whose view of the world is socially constructed and
can only be comprehended from the perspective of those directly involved
(Bryman & Bell, 2007). This research philosophy is a belief about the way in
which data should be gathered, analysed and used (Dudovskiy, 2018) and it
also makes certain assumptions about the purpose of research (Mackenzie,
2012) as the nature of reality can be arguable from the subjectivist viewpoint
(Stroud, 2000).The research philosophy of the researcher also affects how the
researcher applies different strategies to gather and analyse the data to
achieve the research objective (Robert, 2010).
In this thesis, the aim and objectives are first, to explore the prominent digital
marketing tools; second, to understand how digital marketing affects the SMEs
strategically and also what kind of benefits it provides; and last, to find out how
effective digital marketing tools are for the industrial supplies SMEs in
Singapore from both the owner-managers’ perspectives and the customers’
perspectives.
47
Given that digital marketing tools have been evolving rapidly over the past
years, the trends might change due to new, emerging tools (Monnappa, 2021).
For this reason, cross-sectional methods are used in this study. During the
period of the data collection, the researcher have noted in mind that there
might be new digital marketing tools which might gain popularity within the
SMEs communities in Singapore. Thus, during the interview, the researcher
should verify if the participant are still using the digital or if the digital marketing
tools were adopted only recently.
The research looked into their digital marketing presence using web tools such
as search engines and website directory to determine if the participant was
suitable for the study. This was followed by an interview-qualifying email for
owners and managers of the SMEs (Appendix 2) and an interview-qualifying
email for the customers that were buying industrial supplies (Appendix 3). Sent
before engaging in an interview, these emails ensured that all participants
would be able to provide insightful information on the prominent tools of digital
marketing and how they affect SMEs strategically to create benefits for the
SMEs.
In order to achieve the research aim and objectives in the industrial supplies
SMEs in Singapore in particularly RO1, a post-positivism paradigm is adopted
in this thesis. It requires interpreting the data collected from the participant,
being an objective method of identifying the prominent digital marketing tools
used. However, in order to investigate into in-depth understanding of how the
prominent digital marketing tools were used strategically. According to Bryman
and Bell (2007), personal experience was used to reinforce the method applied
to study social reality and beyond. This would provide an understanding of the
individual (O’Donoghue, 2007) and provide insightful findings regarding the
other research objectives in particularly RO2 & RO3, constructivism paradigm
is linked this research.
49
perspective of both owners/managers of the industrial supplies SMEs in
Singapore and the customers perspective, constructivism is an appropriate
paradigm to explain why individual stakeholder prefers and adopt digital
marketing tools into their business strategy to create sustainable competitive
advantage as well as their perception of effectiveness of the digital marketing
tools used. Moreover, constructivism also frames the data analysis as a
constructed knowledge emerges from the different perspective of
owners/managers perspective and the customers’ perspective.
50
Therefore, the method used was a qualitative approach because the aim of
this thesis is to explore and understand in-depth how digital marketing tools
play a role in the industrial supplies SMEs in Singapore. However, as the
researcher is also a practitioner in the field being researched, there was the
potentiality for bias to be present in the research process. For example,
participants may have felt obliged to provide a positive response as they have
had other business dealings with the researcher and, should this occur, it may
affect the research outcome. This could be avoided by letting the participants
know in advance that the researcher is totally independent; their input will only
be used for research purposes; their responses will be confidential; and the
information provided would not be used to affect them in any way.
51
products they carried. Therefore, there are many other businesses that were
not in the interest of this research in the targeted 2 SICC. In order to remove
the businesses that are not related to the research in the most efficient way,
purposive sampling were applied and based on the research and the
understanding of the researcher, companies were identify and qualifying
questions (see Appendices 2 and 3) were used in order to verify if the potential
participants were appropriate persons and that they could contribute to the
research aim and objectives.
This sampling approach was adopted as the industrial supplies which deals
with abrasive and cutting tools are niche in Singapore and in order to achieve
52
the research objectives, participant has to be using digital marketing tools and
could be able to provide valuable insight and experience.
The data collection was structured into three processes. First, a pilot study
was conducted to validate the semi-structured interview format. This was
followed by actual data collection with the chosen owners or managers to
obtain their perspective. Lastly, interviews were conducted with customers for
their perspective as a means of validating the data collected from the owners
and managers.
There were some ethical issues that needed to be addressed about the
processes involved in the data collection. As the study involved interviewing
participants, it was important that ethical guidelines were established and
followed, as discussed below.
During the purposive sampling, owners or the managers gave their permission
for the research interview to be conducted within the company. This was not
to automatically suggest, however, that the particular employees to be
interviewed would consent to be involved. It would not have been ethical to
conduct the interview without the consent from the participants themselves
(Vinson & Singer, 2004). Each individual must be briefed on the purpose of
the interview and other issues, such as the strict confidentiality of the
information and the commitment that it would not be used for any other
purpose. As the interviews could potentially invoke negative emotions, there
was also a need to develop a strategy to deal with any such incident in a
positive way (Piper & Monin, 2006).
53
According to Allmark (2009), privacy and confidentiality, informed consent,
harm, dual roles, over-involvement, politics and power are the key ethical
issues to be considered when in-depth interviews are conducted. These
issues must be addressed appropriately throughout the whole research
process. In this research, every participant who was to be interviewed was
made aware that their identity would be kept anonymous, and their name
would not be identifiable (Oswaldo, 2021). In addition, they were able to
decline to answer any particular question if they felt uncomfortable. They were
assured that the interview data would be stored in a secure place that would
not be accessible by any third parties. Once the interview had commenced,
the participants were authorised to withdraw if they felt uncomfortable about
continuing. The whole process conformed to the Edinburgh Napier University’s
Code of Ethics and the wellbeing of participants was of the utmost importance.
The interviews were conducted between May 2020 and March 2021, due to
the global epidemic where Singapore has put a temporary halt in the
manufacturing and industrial sectors (Baker, 2020). Six managers and four
customers were interviewed. As the research is explorative and qualitative in
nature, a semi-structured interview was chosen as the main data collection
method. Such interviews allow participants to respond in a flexible way, and
therefore, the data collected is more in-depth. The experiences of the
participants are disclosed, providing a better understanding of the research
topic.
54
preferred. The managerial interviews were with the sales manager who used
digital marketing as part of their job for customer acquisition and customer
retention. That is, interviewees were only those who worked for industrial
supplies SMEs in Singapore and who were currently using digital marketing
tools for their customer acquisition and customer retention activities.
In this research, before the pilot testing stage, there was an additional pre-test
to verify if the interview questions were able to generate the appropriate
responses that would address the research aim and objectives. The pre-test
stage was undertaken initially with the supervisors of this thesis one month
before the pilot testing. This was followed by an interview with a volunteer who
was willing to assist in validating the research question one week before the
pilot testing. This pre-testing also served as a ‘warm up’ for the actual
interviews and established whether the terms that were to be used in the
interview questions were easily understood by the participant or not.
55
After conducting the pre-test, there were some modifications made to some
questions. It was considered that the initial semi-structured interview
questionnaire was not strategically structured, the responses gathered were
not of sufficient depth and, as a consequence, it was thought unlikely that the
research would be able to achieve the intended result. The interview
questionnaire was reorganised to address the three research objectives. More
potential probes were added to the questions (see Appendix 5) to increase the
possibility of more information being gathered from the interviews.
After the pre-test, the pilot studies were conducted successfully: the responses
gathered were considered sufficient to address the research objectives.
However, even after the pilot studies had been completed, additional potential
probes (see Appendix 5) were added as needed.
56
comfortable about speaking freely during the interview. Once the participant
had shown signs of being comfortable and ready to explore more deeply, the
interviewer moved to the next question: to understand how the digital
marketing tools affected their customer acquisition and retention.
The aim of the question was to understand the effectiveness of the particular
digital marketing tools. Ideally the interviewer would probe the participant to
share their experience of using the various tools and how the customers
responded. This was to address research objective RO2 and RO3.
57
There were four responses from the customer perspective. Three participants
were based in Singapore and one participant was based in Malaysia. As
Singapore is a small country, customers in neighbouring countries such as
Malaysia also frequently buy supplies from Singapore. The language used in
these interviews was English as participants from both Singapore and
Malaysia were comfortable sharing their experience in this language. With the
permission of the participants, voice recording was used to capture the
interviews with two participants and note taking was used instead with the
other two participants as they were uncomfortable with voice recording.
As the nature of the interview with the customers of the industrial supplies
SMEs in Singapore were more of a dyadic approach, the length of the
interview were shorter as customers interview were more targeted towards
understanding the different perspectives in the dyadic relationship between
the owners/managers and the customer and customers would be sharing more
58
on their perspectives on how they have use digital marketing tools that has
changed how they worked (Refer to Appendix 6; Section 2).
In order to collect suitable data to answer the research questions, the questionnaire
was designed to investigate the three research objectives, as shown in Table 3.
Table 3
Questions scheduled for interviews with owner-managers of the industrial supplies SMEs in Singapore
Validate that respondent Could you tell me about To confirm that the
is a suitable candidate. your job roles and respondent is an
responsibilities in your appropriate person to
company? participate.
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Table 4 shows the important probes that were used during the interview to direct the
participant to provide their opinion and share their experiences as they related to RO
2. These questions enabled a deeper understanding of the participants’ experiences.
Table 4
Important probes scheduled for interview of owner-managers of the industrial supplies SMEs in
Singapore.
How do you think *DM Tools To understand how the use of digital
Stated* assist you in terms of marketing tools has impacted
getting more customers? customer acquisition activities of the
industrial supplies SME.
How do you think *DM Tools To understand how the use of digital
Stated* assist you in getting your marketing tools has impacted the
brand more visible in the market? brand visibility of the industrial
supplies SME.
How do you think *DM Tools To understand how the use of digital
Stated* assist you to get your brand marketing tools has impacted the
into the global/overseas market? industrial supplies SME’s initiatives
to Go Global.
How do you think *DM Tools To understand how the use of digital
Stated* help you achieve customer marketing tools has impacted the
satisfaction? industrial supplies SME in terms of
customer satisfaction.
How do you think *DM Tools To understand how the use of digital
Stated* assist you in increasing your marketing tools has impacted the
sales revenue? industrial supplier SME in terms of
sales revenue.
Note. Compiled and summarised by Author. Refer to Appendix 5 for more details.
Similarly, for the participants in the customer interviews, the questionnaire was
designed to consistently elicit responses from the participants that were in alignment
with the research objectives and to compare with the owner-managers perspectives,
as shown in Table 5 below.
60
Table 5
Question scheduled for interview of customers of the industrial supplies SMEs in Singapore.
Note. Compiled and summarised by Author. Refer to Appendix 6 for more details.
Table 6 shows the important probes that were used during the interview to direct the
participant to provide their opinion and share their experiences as they related to RO
2. These questions enabled a deeper understanding of the participants’ experiences.
61
Table 6
Important probes scheduled for interviews of customer of the industrial supplies SMEs in Singapore.
Note. Compiled and summarised by Author. Refer to Appendix 6 for more details.
The data collected on both the owner, manager and customer perspectives
were analysed by applying thematic analysis. Although using thematic
analysis software could assist to manage data, identify themes, overall
efficiency of analysis and identify relationships among generated themes
62
(Dollah et al., 2017), by providing thematic classification of data based key
words. However, many researchers prefer to use manual data analysis
because they believe that using technology does not help much in terms of
data interpretation (Dollah et al., 2017). Indeed, using software may cause the
researcher to become disengaged from the data that has been collected.
On the other hand, manual data analysis might be affected by researcher bias.
Software provides a more objective analysis. In order to reduce any researcher
bias in the data analysis and to ensure that the data has been accurately
transcribed from the recording, a copy of the transcript was emailed to the
participants for their review. (A more in-depth discussion of the validity of the
research is included in section 3.9.)
Manual thematic analysis was chosen for this research as the amount of data
collected was manageable and a manual thematic analysis was considered
sufficient. A detailed analysis is discussed in the following sub-section.
The interviews that were voice-recorded were transcribed within the day of the
interview and recording by note-taking were sent over to straight after the
interview. This allowed for timely review by the interviewees, which was
especially important when there were any doubts about what was said in the
63
interview or the recording was unclear at any stage of the interview. The
researcher was able to doubly confirm the data with the participant to ensure
that the data collected were accurate.
Figure 3
Note. Adapted from using thematic analysis in psychology (p.87), by Braun and Clarke, 2006.
Qualitative Research in Psychology, 3(2), 77–101.
It is important for researchers to be familiar with the depth and breadth of the
data (Braun & Clarke, 2006). Following the process shown in Figure 3, the
interviews were all conducted in a compacted timeframe and the recordings
64
were transcribed on the day of the interview. This ensured that the researcher
was familiar with the data. After the recorded interviews were transcribed, the
recordings were played back while the transcripts were read to make sure that
the transcription was accurate. Whereas, records by note-taking were read
repeatedly to ensure notes taken were clear and accurate.
The thematic analysis in this research was strictly guided by the process
illustrated in Figure 3. To assist in the familiarising of the interview data,
transcription of the interview was done manually by the researcher and then
confirmed. Furthermore, reading and understanding of the data were done in
various stages: firstly, reading to understand the content, followed by reading
with the agenda of addressing the various research objectives.
In this phase, the coding generated will be collated and sorted into themes
(Braun & Clarke, 2006) with the research objectives being kept in mind. The
65
data was thematically grouped and coded for ease of analysis (Braun & Clarke,
2021).
Figure 4
Thematic map.
Note. Thematic map created by Author based on the data analysis results.
After the themes had been reviewed, the theme labels were further refined to
make the data easier to understand. The themes needed to be clear, specific
and relate to the overall meaning that the analysis provides. For example, “saw
your website” and “customer coming in” could be renamed “digital network
linkage” instead of “online presence”. This change made the theme clearer
during the data analysis (refer to Appendix 7 for more details). The thematic
66
map shows the full story of the data collected together with the final
classification of the themes. Further organizing of the themes and other
information further enhanced the progress of the thematic data analysis, as
shown in Table 7.
Table 7
Theme Sub-category
DM Tools • Website marketing tools
• Search Engine Marketing (SEM)
tools
• Website Directory / Social Media
tools
• Email marketing tools
• Digital Word of Mouth / Blog Tools
Strategic Benefits • Online presence
• Digital communication tools/
Relationship building tools
• Non-digital benefits (traditional)
Effectiveness of • Increase in customer acquisition
DM Tools • Increase in customer retention
• Not effective
Note. Thematic map created by Author based on the data analysis results.
After the theme and sub-categories had been completed, it was feasible to
develop a clearer understanding of the data gathered from the interviews.
Further analysis and the findings are presented and discussed Chapter 4.
67
the researcher is aware of the different bias that might be present in the
research and in order to reduce bias, steps are taken to mitigate the bias.
Firstly, in order to reduce sampling bias, steps are taken to include both
genders in the interview. As this industry is a male dominant industrial, getting
female respondent is not easy. In this research, there is a good representation
of gender to reduce sampling bias. Secondly, in order to reduce confirmation
bias, the interviewee questions were carefully craft as such it does not present
with any form of “right-answer” and instead probes are crafted to encourage
the interviewee to share their personal experience, and this has reduce
potential confirmation bias. Thirdly, as this purposive sampling, involved
recommendation from the participant, in order to reduce participation bias, the
researcher has asked for customers to be interviewed before the interview with
the owners/managers and to reinforce the confidentially and anonymity of the
research to reduce potential bias. Lastly, to further reduce response bias,
during the interview, the researcher have to be careful not to show any form
of bias that might influence the participant, the interviews that is recorded and
transcribed were also sent back to the respondent for verification.
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findings are accurate and are supported by the data (Pitney & Parker, 2009).
In this study, triangulation was employed to enhance the credibility of the
research. This is one of the methods proposed by Nassaji (2020) to validate
the data against other participants. Triangulation involves using multiple data
sources. It can help to achieve a more accurate and complete understanding
of the issue under investigation (Bryman & Bell, 2007; Serapioni, 2021). The
triangulation involved comparing the perspective of owners and managers
from the industrial supplies SMEs in Singapore with the perspectives of the
customers from Singapore and one overseas customer who currently has
dealings with industrial supplies SMEs in Singapore, and also with the present
literature, as show in Figure 5.
Figure 5
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although a detailed data set may be sufficient to allow readers to make a
judgement about the applicability of the results in a different context
(Wildemuth, 2016). In this thesis, the findings and the research methodology
are described in as much detail as possible so that additional data sets could
facilitate transferability.
Confirmability refers to describing the data and the findings in such a way that
the accuracy of the research can be verified and confirmed by others. One
useful strategy for achieving confirmability is that rational steps are taken in all
the research processes and the decisions made regarding the data coding and
analysis are kept and available for any further evaluation and confirmation
(Bradley, 1993; Nassaji, 2020). This is different from quantitative research,
where the emphasis is on breaking down the research process, so that the
quantitative research can be replicated with similar results (Nassaji, 2020). In
this research, the decisions and the steps taken were all recorded to improve
the confirmability of the data: audiences can review the steps taken in this
research and the decisions made.
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documentation, processes and steps taken were properly recorded to increase
the trustworthiness of this research.
In the process of the research, there were a number of incidents that occurred
in the midst of data gathering. A worldwide pandemic greatly affected how the
data were collected. The preferred data collection method was face-to-face
interviews. However, government orders to minimise human contact impacted
the interview plan and, as a consequence, video conferencing was substituted.
Where the participants did not have a device with which to conduct a video
call, a phone call was substituted instead. All interviews conducted were done
with participants’ consent and ethical guidelines were followed strictly. The
questions that were asked in both video-teleconferencing and face-to-face
interviews were the same to ensure the integrity of the data collected.
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3.11. Chapter summary
This chapter explains the research process and the paradigm underpinning
this thesis. Qualitative research was adopted using purposive sampling to
qualify suitable participants from both the owner-manager perspective and the
customer perspective. Participants were asked to take part in a semi-
structured interview. A pre-test study and pilot studies were undertaken to
ensure that the semi-structured interview was able to elicit data required to
fulfil the research aim and objectives.
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CHAPTER FOUR: ANALYSIS AND FINDING
4.1. Introduction
In this chapter, the data presented is derived from data collected using the
semi-structured interviews with the owners and managers of industrial
supplies SMEs in Singapore as well as customers from both Singapore and
Malaysia that are currently buying industrial supplies. This chapter profiles the
demography of the participants, and then outlines the findings against each of
the research objectives from the owner-managers’ perspectives and then the
customer perspectives. The findings are summarised at the end of the chapter.
Table 8
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The interviewees were the owners and managers that have direct involvement
in using digital marketing tools. At the start of the interview, there were
confirmation question to validate their involvement in using digital marketing
tools to ensure that they were a qualified respondent.
74
of generating ideas about how their digital marketing tools can be used to
create business opportunities and branding for their company.
There are a total of six owners and managers from different SMEs who
participated in the interviews. Four of the six agreed to be recorded. Two were
unwilling to be recorded, so notes were taken and at the end of the interview,
the notes were shown to the participants so that they could verify that the notes
accurately recorded what they wanted to express, transcript of the recording
were also sent to the participants on the same day of the interview to verify the
transcription were accurate.
A total of four customers were interviewed. Two were not willing to be recorded,
so notes were taken and then verified at the end of the interview. As Singapore
is a small country and neighbouring countries such as Malaysia also regularly
buy supplies from Singapore, there was one participant from Malaysia
included in this study. He currently buys supplies from industrial supplies
SMEs in Singapore. His inclusion would provide a better understanding of the
context of how industrial supplies SMEs in Singapore work with neighbouring
countries. Table 9 (below) is the overview summary of the customers that were
interviewed.
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Table 9
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Interviewee 10 is a buyer in the manufacturing industry located in Singapore.
Her company mainly buys cutting tools. Her daily responsibilities include
sourcing new suppliers as well as maintaining existing suppliers, ensuring that
they are able to fulfil their orders.
Table 10
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The first five semi-structured interviews were with the owners and managers
of the industrial supplies SMEs. Then the primary focus moved to interviews
with customers. All 10 participants in the interviews had been working with
their company for at least two years and were directly involved in using digital
marketing tools. On this basis, they were deemed qualified to be respondents
for interview. It was felt that saturation point had been reached as the
participant given their responses that does not give more information towards
the research question (Guest et al., 2020).
The interviews with the owners/managers were stopped after six interviews as
the responses from later participants were similar to those of earlier
participants as no new codes emerge from the interviews (Given, 2016), in
relation to RO1, the mention of using website for customer acquisition were
repeated appearing from interview 4th to 6th and there are no new digital
marketing tools mentioned which were similar to interview conducted earlier.
This is constant throughout the other research objectives, where the interview
stated that digital marketing tools helps them with greater market awareness
which could potential generate into new sales and also helped them in giving
better customer services and improving customer relationship. The
owners/managers responses homogeneity towards the research questions of
the use digital marketing tools they have adopted. The responses in the
customer interviews reached a similar stage after four interviews. A more
detailed analysis of the data collected is included in section 4.3 (the
perspective of the owners/managers) and section 4.4 (the perspective of
customers).
In this section, the data collected from the owners and managers is analysed
in accord with the three research objectives.
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4.3.1. Prominent digital marketing tools used (RO1)
In this sub-section, the prominent digital marketing tools used by the industrial
supplies SMEs in Singapore are divided into two sub-sections covering
customer acquisition and customer retention from the owners/managers’
perspective.
Table 11
Summary of prominent digital marketing tools for customer acquisition used by the industrial supplies
SMEs in Singapore
1 X X
2 X X
3 X X X
4 X X
5 X X X
6 X X X
Total 6 0 6 3 0
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Note. Table created by Author to summarise the prominent digital marketing tools used for customer
acquisition from the owner-managers’ perspective.
The data gathered clearly indicates that both websites and search engine
marketing are normally used hand-in-hand. Interviewees 4 and 6 mentioned
that their website helps them create awareness and allows customers to know
that they existed. They used search engine optimization, which is part of the
search engine marketing tool kit, to help create awareness on the internet.
Most of the time the customers, when they come to us, the social media,
the website actually just leads us to the customer’s enquiry. There are
times they are not looking for the correct things or things like that. But
when we link up with them, then we ask them what they really want, so
from there on we can promote our product or services more efficiently.
But most importantly, the social media, the website is that they are able
to link us to the customers.
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There are other digital marketing tools that were used in customer acquisition.
Website directories are one example. According to interviewees 3 and 6, being
included in such website directories gives them a worldwide presence and
helps them get noticed by potential customers. Interviewee 5 used social
media to post interesting showcase of their products; they capture the attention
of potential customers and direct them to the company website for more
information. These methods are, however, not widely used by industrial
supplies SMEs in Singapore.
There are also digital marketing tools which was not used by any of the
industrial supplies SMEs in Singapore such as email marketing and digital
word-of-mouth marketing. All of the interviewee do not use email marketing
tools as they think that using email marketing is not effective. Firstly, they
believed that their product are highly customised and technical and mass
sending of email would be ineffective as they have received many marketing
email on a daily basis which were not relate to the current situation. Thus, they
would find them disruptive to their daily operations and would not want their
potential customers to face the same frustration they are having. According to
interviewee 4, the bottom-line for customers to be looking for new products are
requirement and sending email does not helps as customers would either
search for new products using search engines (SEM) or would contact their
current suppliers directly. In addition, as for blog and digital word-of-mouth
marketing (WOM), the SMEs feedback that in their opinion, having a blog
might not be suitable for B2B context as the customers would not be interested
in their blog and they are not able to afford the resources that they would need
to create and maintain a blog and to create and maintain capabilities to build
digital WOM.
Further to RO1, the prominent digital marketing tools used for customer
retention are websites and email tools. However, the general response from
the interviewees was that although digital marketing tools were used to assist
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in customer retention, other non-digital means such as pricing and quality of
the industrial supplies which are more important. Most interviewees indicated
that using relationship networks, pricing, quality and better customer service
were the main factors that contributed to customer retention and that digital
marketing tools only act to supplement them, by assisting communication and
enhancing the efficiency of customer retention. Table 12 is the summary of the
responses from all the owners and managers on this topic.
Table 12
Summary of prominent digital marketing tools for customer retention used by the industrial supplies
SMEs in Singapore
Note. Table created by Author to summarise the prominent digital marketing tools used for customer
retention from owner-managers’ perspectives.
The data shows that the most widely used digital marketing tools for customer
retention are websites and email. Interviewee 4 stated that existing customers
would not go to their website or read their email unless they have new
requirements, for which they would need to source new products. In this
context, customers can go onto their website and search for products and
solutions whenever they encounter problems or need additional industrial
supplies for their operations. Interviewee 1 shared that customers are normally
busy and would normally not want to be disturbed, so, when they encounter a
problem they would look on their supplier’s website to find products that are
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suitable for them, followed by sending an email enquiry or making a phone call
to ask for more details.
Some existing customers might only be aware of the particular product that
they are currently buying and not know of other products that they might
potentially need and that their supplier provides such products. Marketing
emails make customers aware of other products that the suppliers carry.
If/when they need such products, they would be able to look for these suppliers
or their website for more information. Thus the emails improve
communications and support customer retention.
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The other interviewees 2, 3, 6 also provided insightful experiences, such as:
“Over the years, we have been working with the customer and have a good
relationship in terms of working together” ; “Customers normally prefer to work
with suppliers they know”; “Customers continue to buy from us because of our
price and service”.
Table 13
Summary of prominent digital marketing tools used by the industrial supplies SMEs in Singapore
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For customer acquisition, website marketing tools are the most prominent and
favoured by industrial supplies SMEs in Singapore as they act as a linkage to
new potential customers. Search engine marketing tools support the website
by increasing traffic. Being able to be found on the internet by more people
means that there are more potential customers visiting the website, which aids
in customer acquisition. Websites and search engine marketing tools are used
together as a combined package by all interviewees. The typical flow is that a
search engine directs potential customers to their website; the potential
customer leaves their details and enquiry by completing a form on the website,
and then SMEs contact the potential customer to follow up on the enquiry.
Whereas for customer retention, websites and email marketing are the most
prominent and favourable digital marketing tools among the industrial supplies
SMEs in Singapore. They act as a tool to enhance communication with their
customers and improve communication, and in this they enhance customer
retention. However, focusing on non-digital marketing tools, such as
relationship networks customer service, pricing and other factors are more
highly favoured by the SMEs. The owners and managers feel that in order to
have good customer retention, digital marketing tools can only play a small
role compared to non-digital marketing activities.
The prominent digital marketing tools used were investigated and identified as
mainly websites and search engine marketing for customer acquisition and
websites and emails for customer retention. This section relates to RO2, to
investigate the extent to which digital marketing tools benefitted SMEs as a
strategic tool.
According to all the six interviewees from the SMEs, website marketing and
search engine marketing worked hand-in-hand for customer acquisition,
whereas websites and emails were widely used for customer retention. The
first step was to create a website with company and product information. This
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is followed by generating additional content such as pictures and write-ups on
the various products. These are the basics of the website marketing.
Interviewee 2 stressed that: “Our website will show up on the front page of the
Google so that’s why emails will come in from all those places”. Interviewee
2’s website has an enquiry form that directly converts the customer’s enquiry
on the website into email format. He could access the email and reply to the
customer’s enquiry directly. This is also consistent with other interviewees,
who provided similar experiences, such as: “I get customer feedback telling
me that they found us on the website”; “On and off people see the website,
people call in, they write you an email. Sometimes, people fill in the form, just
to create awareness”; “Normally customers will send us an email to ask more
about this product because we do have email, contact number, as well as a
fill-in page in our website, so they can actually use either means to contact us”.
Digital marketing is used as a strategic tool, first to create awareness, and then
to showcase the products and services of the company, and last, to convert
customers to the enquiry stage. It is similar to: “It’s just a door is an avenue for
us where we come to the customer”, according to interviewee 1. Other
interviewees had similar views.
This would help the SMEs expand their sales with more enquiries as the
company has greater visibility in the search engines. This is especially so if
86
the company is at the top of a search result. This could help with brand visibility,
according to interviewee 6: “Be on the first page. This is like letting the
customers know that we have a very strong presence. I think this more or less
will let customers have a good impression.”
Search results can direct the customer into their website. The website
showcases the products and services. This would definitely increase sales as
the search engines and website help to generate more leads and enquiries.
This made the interviewee’s job easier as customers that have made enquiry
are more confident about the company’s products and services.
The common challenges that the SMEs faced were the lack of resources to
maintain their websites and the cost of buying advertising from the search
engine operators. Therefore, there are lack of resource to implement the use
of digital word-of-mouth and blog tools, in the owners/managers perspective,
digital word-of-mouth and blog tools are out of their range of the digital
marketing activities. According to interviewee 2, their staff are already very
busy with daily activities and are unable to maintain the website or even
answer some of the website enquiries in a timely manner. And according to
interviewees 1 and 5:
“Digital marketing: I can say you need to spend a lot of time and effort to do a
proper digital marketing. Currently what we have is only one marketing
executive managing this and is a bit overwhelming.”
This shows that SMEs are either lacking resources or the expertise to
implement digital marketing strategies. Feedback from the interviewee is
about the cost and expertise of implementation. In addition, due to the fact that
this industry is very technical in nature, digital marketing has limitations in
assisting the business. According to interviewees 4 and 3:
“We need to follow up with offline activity such as visiting the customer, calling
the customer and meeting them to provide them with a solution, because no
offline, no order.”
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“In the industrial business, there are many technical issues we have to solve
in order to get the customer to order from us.”
However, there was also feedback that digital marketing was not the strategy
that could assist the SMEs in their business. According to interviewees 2, 3, 4,
5 and 6:
“Over the years, we have been working with the customer and have a good
relationship in terms of working together.”
"This is also a problem because of the trust issue as we have not seen each
other before and maybe the customer will not trust us.”
“They will look at their own suppliers to provide them with the solution and
stuff.”
“If we have a certain relationship with our customer that we built over the years,
because of our good relationship with the customer, they would be more likely
to stick to us.”
Those are some of the responses from the interviewees that indicate that the
relationship with the customers is a very important factor. Having a good
relationship-based network strategy assists in customer acquisition and
retention for the SMEs.
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supplier if they have good relationship with their existing supplier. This makes
customer acquisition challenging if the company relies just on having a good
digital marketing strategy.
The main digital marketing tools that were used were websites, search engine
marketing and emails. These tools are mainly used to create awareness and
using digital communication to enhance communication and building
relationship between suppliers and customers. Digital marketing has enabled
customer acquisition for the industrial supplies SMEs in Singapore as the
website and search engine marketing tools have created more opportunity for
their products and services to be found. Interviewee 2 shared:
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“Continue to appear many times in front of our customers more than our
competitors and they would more likely try to enquire from us.”
Interviewee 5 shared that using email marketing with existing customers could
enhance the communication when a customer might not be aware of the full
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range of products and services they offer. Enhanced communication would
help them promote more products and services to the customer:
“Email mass blast to the customers: surprisingly the rates that came back are
actually quite high because a lot of customers like what we mentioned earlier.
They do not know we do rental and equipment sales for industrial.”
This shows that although a customer may actively go to the supplier website
to check for product and services, frequent active communication with the
customer could improve the customer relationship.
That said, the main factors for obtaining customer loyalty according to
interviewees 2, 3, 4, 5 and 6 are non-digital marketing factors such as good
customer service, better pricing, supplying better quality products and having
a good relationship. The relationship is important because customers would
normally have established their own group of suppliers that they have
relationships with and they would not look for new suppliers unless their
existing supplier is unable to fulfil their requirements. Digital marketing could
only assist with better and easier communication to build customer relationship;
the SMEs would need to be physically present to build a relationship with a
potential new customer in order to build a RBN with them and service them to
achieve customer loyalty.
Many people also slowly start using the internet to look for things to buy
and we have to follow up with the trend so we will not be left behind.
This statement stresses the importance of the RBN that could help the SMEs
obtain a competitive advantage. Although digital marketing has changed the
way customers look for products and services, they are still very reliant on
RBNs to finding products and services.
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When asked about the impact of good sales revenues on creating competitive
advantage, none of the participants was very sure if they would have any
impact. All the participants acknowledged that increasing sales revenue would
mean additional resources for them to expand their capabilities. For example,
they would expect to have a higher budget for paid advertising on search
engine marketing tools or the capacity to hire another digital marketing
specialist to help them build their digital marketing tools.
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Table 14
Summary of the findings for RO2: To investigate the extent that industrial supplies SMEs benefitted by
using digital marketing tools as a strategic tool
Key Findings
Variables
Pros Cons
Website: Customer could Website: Need actual person with
enquire about items directly technical knowledge to advice
from our website customers on the correct industrial Customer
supplies. Acquisition
Digital W-O-M / Blog: need extra
resource to generate content.
Website: Online presence Website: Lack of resources to maintain
creates awareness. website.
Brand
SEM: Being top in search Website: Lack of people with expertise.
visibility
engines gives customers’ SEM: High cost of paid advertisement
confidence. to the search engines operators.
Website: Have no Website: No personal contact.
geographic limitations, DM tools: Unable to physically look at
available 24/7. the problem and suggest correct Going
DM tools: Simplify solutions. Global
communicating with
overseas customers.
Website: Available 24/7; Website: Customer wants to see them
allows customer to look for personally face to face to solve the
Customer
solution anytime. technical issue.
Satisfactions
Email: Increase and enhance DM tools: Customers look for better
communication. pricing, quality and customer service.
DM tools: Increase sales
Sales
revenue helps expand
Revenue
capabilities
Note. Table created by Author to summarise the finding for Research Objective 2 from the owner-
managers’ perspective.
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4.3.3. Effectiveness of digital marketing tools (RO3)
Interviewee 2 also shared that digital marketing tools have become part of their
business strategy for customer acquisition. They create an online presence,
which results in a significant increase in new customer enquiries that usually
convert into a sale. He said:
“New customers are repeatedly coming onto our website, sending enquiries to
our email. Most of the customers I could say are a straight sales conversion
because the products we sell are like you need it.”
Because of the nature of industrial supplies, customers only start looking for
products when they need them. Having good brand visibility could help
generate more sales. With regards to customer retention, although digital
marketing tools could enhance communication, interviewee 2 believed that the
best strategy for improving customer retention was using non-digital marketing
methods, such as better pricing, quality, lead times and service. There was
also a concern that customers are unable to cope with digital marketing tools
as some of their employees are not familiar with them. This situation would
result in drop in the standard of service.
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According to interviewee 4, although digital marketing tools are effective in
generating more customer enquiries, there is more to be done. Rather than
being a direct sale, an enquiry only serves as a link between the supplier and
the customer. It must be followed up with other sales activity. He said:
“We need to follow up with offline activity such as visiting the customer, calling
the customer and meeting them to provide them with solutions, because no
offline, no order.”
“They go to our website, they see what they want to buy and then they call me
and I will advise them of our solution and how to use it.”
However, interviewee 4 also shared that digital marketing tools are not very
effective as the customer focus is on the bottom line. Digital marketing is
heavily reliant on the customer knowing their requirements. Some customers
who have requirements would call them directly instead of using a digital
marketing tool to communicate with them.
Overall, interviewee 4 felt that digital marketing was not very important in
customer acquisition and retention, although digital marketing is “good to
have”. He said:
I think that using networks and relationships makes it easier to get more
sales because I think it’s more natural if you have a problem to solve,
you call your friend, your supplier, somebody that you know to help. So,
this point is super important: you must be already there in his contact
list. If not. it will be hard.
This quote from interviewee 4 shows that RBNs are still a very important factor
in the current environment. Digital marketing is just an additional tool to
support them in customer acquisition and retention.
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Interviewee 6 shared that digital marketing helps them other than in generating
leads: it also helps with increasing the probability of customer acquisition.
Communication is easier using digital marketing tools; appearing on the top
page of a search engine search helps their brand to be visible to more
customers, which not only increases their leads, it also helps by building their
reputation within the industry:
I think this more or less will let customer have a good impression. For
example, you walk on the street. You see McDonalds always appearing
in your brain. When you are hungry, you will also think of McDonalds.
Having good brand visibility not only helps in generating leads but also helps
enhance the brand image and the company’s reputation within the industry.
This would allow the supplier to engage with customers more advantageously
due to their reputation and increase customer acquisition. However, for
customer retention, better service, pricing and relationships are more
important factors rather than having good digital marketing tools.
Communication can improve using digital marketing tools, and thereby
contribute to offering better service. The most important factor in customer
retention is having good pricing and having a relationship with the customer:
“If we have a certain relationship with our customer that we built over the years,
because of our good relationship with the customer, they would more likely to
stick to us.”
Interviewee 5 supports the idea of using digital marketing tools for customer
acquisition and retention as digital marketing enables them to generate more
leads. The leads that digital marketing generate have an acquisition success
rate of around 50% greater than their expectations:
So far our digital marketing effort is still insufficient and we still need to
put in more time and effort to actually focus on the digital marketing.
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Currently the success rate of 50% to us is very good as we expected
the conversion rate to be only 20%. Twenty per cent from those leads
is already considered a good number and to get 50% is actually – we
are quite satisfied, because the lead generation from this is still very
low, so we are actually wanting to boost our leads from this portion.
As the SMEs don’t have many resources to allocate to digital market efforts,
they feel that their effort is still insufficient but the results exceed their
expectations. However, they feel that in terms of business-to-business
relationships, digital marketing is more helpful for customer retention (as it
helps them to engage with existing customers) rather than the acquisition of
new customers.
“Mostly they will look at their own suppliers to provide them with the solution
and stuff.”
This shows that having an RBN is very important for both customer acquisition
and customer retention, and that the SMEs shouldn’t rely just on using digital
marketing tools.
This was further reinforced by interviewee 3, who said that he believed that a
human touch is best for building relationship-based network:
We cannot increase our sales because in the internet world, you don’t
know me, I don’t know you.
This indicates that people do not trust the internet if they have not met each
other before. So, although digital marketing is starting to assist SMEs with
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customer acquisition and retention, there are limitations. By using relationship-
based networks, greater trust can be built and this increases customer
acquisition and retention.
Table 15
Summary of RO3: The effectiveness of digital marketing tools in customer acquisition and customer
retention
Customer Acquisition
Effective Ineffective
Enable higher brand visibility, Technical requirement needs to be
increase traffic flow and enquiry solved physically after looking at
rates. the process in the factory.
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Note. Table created by Author to summarise the findings for research objectives 3 from the owner-
managers’ perspective.
In this section, the data collected from customers will be discussed and
analysed in alignment with the three research objectives.
In this section, the prominent digital marketing tools used by the industrial
supplies SMEs in Singapore are considered in two sub-sections covering
customer acquisition and customer retention from the customer perspective.
The prominent digital marketing tools used by customers to find new suppliers
are websites and search engines. However, according to interviewee 8,9,10
as the customers, they prefer to deal with suppliers that they already have
relationships with. Below (Table 16) is the summary of the responses from all
the customers’ perspective.
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Table 16
Summary of prominent digital marketing tool used by customers buying industrial supplies from new
suppliers in Singapore.
8 X X X
9 X X X
10 X X X
Total 4 0 4 1 0 3
Note. Table created by Author to record the digital marketing tools that were used by the customers for
new supplier acquisition.
The data collected from the customers indicated that most customers were
using a search engine (particularly Google) to find products and services when
they need to look for a new supplier. After they found potential suppliers, they
go to the supplier’s website to look at the products and services offered.
Customers also prefer to look to their current suppliers that they have
relationships with and are more likely to engage them directly using a phone
call, email or check their website to look for the products and services they
require.
According to all interviewee, customer’s typical process when they are looking
for new products and services is to first check their current supplier list –
suppliers that they already have a relationship with. If their current list doesn’t
have a suitable supplier, they then continue searching for alternative suppliers
using Google. They would normally check the first few results that Google has
given them and then check for appropriate products on the new supplier’s
website and initiate contact with them.
According to all interviewee the ideal website should have sufficiently detailed
product and service information to enable them to make a decision. It would
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be even better if all other information such as pricing, lead time, technical
specification, and all other information related to the products and services are
available. Customers are usually busy and when looking for a new supplier,
they want the job to be done as quickly as possible.
The prominent digital marketing tool used by the customers is visiting the
supplier’s website. However, the factors affecting customer retention do not
only focus on digital marketing capabilities of the suppliers. Below (Table 17)
is the summary of the responses from the perspective of all the customers.
Table 17
Summary of prominent digital marketing tools used by the customer buying industrial supplies from
existing suppliers in Singapore.
Note. Table created by Author to record the digital marketing tools that were used by the customers for
retention of existing suppliers.
The data collected from the customers’ perspective shows that in regards to
the factors they would consider to continue buying from their existing supplier
are non-digital marketing tools related such as pricing, supply chain and the
lead-time for the industrial supplies. These are the main considerations for the
customer. The website is something that, according to interviewee 8 & 10,
provides a better understanding of the product:
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I would like to think that the marketing for online stuff is for me to make
the connection to have some understanding of the supplier.
“If I’ve got time, I might go to the supplier website to find things.”
According to interviewee 7 & 10, they usually looks at other factors, such as
pricing, quality, and the supplier’s lead times to determine if they want to
continue ordering:
I think the most important part in retaining me is the pricing and also the
lead time and quality of product. No point having a supplier that has
very good marketing but supply product that is of lousy quality.
Interviewee 8 also shared that they have a preference for suppliers that they
have a relationship with as they have known each other for a period of time:
“We have very good relationship along the years. They know us, we know
them. We support each other.”
These responses show that pricing is the main concern of customers, followed
by the level of support that existing suppliers are able to provide. Digital
marketing tools such as websites are widely used to assist with communication
to improve customer support levels. However, RBNs also play a role in
customer retention, as customers are more willing to work with suppliers they
know and have a relationship with already.
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4.4.2. Digital Marketing Tools and Strategic Benefits (RO2)
The data collected shows that the prominent digital marketing tools that were
used by the customers to search for new suppliers are websites and search
engines are used to enhance the online presence of the suppliers. The
prominent digital marketing tool that was used by customers for existing
suppliers is the supplier’s website as the website could help the customers to
understand the supplier better and could also enhance their interaction. When
searching for a new supplier, customers always keep in mind their RBN and
look for a supplier within their network before going to the open market.
However, according to interviewee 7, customers will only continue to buy from
their existing supplier if the non-digital marketing factor such as pricing and the
level of support is good enough.
If I need some low grade item, like sharpening stone, any brand will do.
Even a Chinese brand I can accept. But if you’re talking about precision
drill bits, I cannot anyway accept those lousy brands because if the tool
has a problem, even a small problem, my product goes to scrap. If big
problem, sometimes my worker gets injured and I need to pay for their
hospital bills and they can’t work.
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to the supply chain. Customers require close support on the supply chain.
When suppliers use digital marketing to enhance communication, customers
are able to check the details of the industrial supplies instantly, and at any time
in the day, this would help in building better customer relationship. Digital
marketing tools are able to provide information in the quickest possible way
according to interviewee 9:
I think the main advantage is that it allows one to make the connection
quickly and, of course, to quickly identify if there are any opportunities.
If we were to email you or have to call you, usually there is a delay in
the response. One thing is that with email, a supplier might take time to
reply. If we call, we can’t always reach, or we need to call at a good
time. Then we can’t make a fast decision on whether to proceed further.
The data collected from customers indicate that suppliers need to update their
website and provide accurate information for the customer to refer to. If the
website has adequate information for the customers, it greatly assists
customers to make fast decisions. This, in turn, makes the supplier more
appealing to the customer and is effective customer acquisition for the supplier.
Customers also prefer to purchase from a supplier that they already know and
have a relationship with. As interviewee 10 shared: “It’s easier to buy from an
existing supplier.” Interviewee 10 further explained that there are many
concerns about finding new unknown suppliers because they have not worked
with them before and they don’t have a relationship. Working with a supplier
that the customer knows enhances the synergy: “They know us, we know them.
We support each other.” This shows that when there is a relationship-based
network, both supplier and customer are more willing to go the extra mile to
help each other, ensuring the best outcome for both parties.
Digital marketing tools can also build competitive advantage in the eyes of the
customer, as discussed. When a supplier has a website, the customer is able
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to go to it for more information about the product they need as the website
helps to build online presence. Therefore, a supplier website that has enough
information about the products and services appeals to the customer.
Interviewee 7 said:
I have come across a supplier that has all the information that I need in
their website. Because at times, I would even use it for product
information, my own knowledge, or just extracting information I need
from the website and even before I call this supplier.
All customer interviewees said that they would personally prefer websites that
are able to provide information that would be enough for them to understand
the products. This might include technical specifications and pricing among
other information that they need to make a purchase decision as quickly as
possible. This is appealing to customers as they are generally busy with their
daily tasks and would hope to be able find the product they need as quickly as
possible, this means that website acts as a digital communication tools to
enhance communication. However, according to interviewee 9, although a
great deal of information on the website is appreciated, the website should be
easy to use: the information need to be presented in a neat and tidy manner,
and the user should be able to navigate easily to get what they want.
For supplier wise, if they are in the top if the search engine, it would
show that they are genuine and probably been around for quite some
time.
In the internet, I think if Google can come out in the top, they should be
good. If not, how will they be at the top?
I mean, let’s say for example, 3M. You see 3M all over your life you
know. Use it at home, use it at work, even in the coffee shop, so it’s
everywhere and they have very strong marketing. Online, likewise, a lot
of people would do advertising there. So I guess when you see a brand
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and somehow have a good impression of it because you understand
them better, where they are in your life, both your work life and personal
life. The thing is that it adds maybe a bit of a legitimacy to your product
or your brand that you know. You do have an official presence, wide
presence compared to someone who doesn’t even have a website.
The common response from the customers is that online presence such as the
website of the supplier appearing at the top of the search engine results greatly
improves brand credibility. Customers perceive top ranking in a search engine
search to mean lend legitimacy to the products. And when the branding is
always in front of the customer, according to interviewee 9, the customer will
have a better impression of the brand. They feel that they understand it better
and they perceive the brand as a credible brand.
In the digital world, geographic limitations are no longer a big issue. Because
the customer has many requirements of the industrial supplies due to their
technical specification, some industrial supplies are difficult to find locally,
according to interviewee 7. The customer can take advantage of suppliers
from around the world to help them fulfil their requirements. Interviewee 8, who
is based in Malaysia, said:
“Countries like Singapore, USA, Europe and Japan – I think I can buy more in
peace because I know they have good quality.”
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Apart from helping customers to find suppliers, digital marketing tools also help
to build customer loyal and improve customer retention. They help enhance
the communication between the supplier and the customers. For example,
using a website helps customers to search for their required products and
services faster when their existing supplier’s website has information ready for
the customer. This improves the supplier’s customer support level, which, in
turn, improves customer satisfaction. Interviewees 8 and 10, for example, said
that they do go to the website to check for information for some products and
are happy if they are able to find it quickly.
However, the factors that are more important in affecting customer retention
are non-digital marketing, such as support, pricing, quality and having a
relationship-based network. Digital marketing tools can help to improve
support by enhancing communication between the parties and helping to build
the relationship-based network. The other factors – pricing and the quality of
the product offered – are unable to be assisted by digital marketing tools.
Apart from just focusing on pricing separately, customers consider the holistic
advantage of the product. According to interviewees 8 and 10, they are not
only looking at pricing alone when selecting suppliers; they also look at factors
such as lead time, delivery and support. Although they have to work to a
budget, they generally have no problem finding products that meet their lead
time, delivery, support and pricing requirements that are within their budget.
This shows that customers do not look at pricing alone: they take a holistic
view of the performance of the supplier. In other words, they need to feel the
product they are purchasing is value for money.
In summary, digital marketing tools are able to assist the customer to find
suitable suppliers as summarised below (table 18) and the industrial supplies
SMEs in Singapore could benefit from understanding the customer
perspective to gain strategic benefits.
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Table 18
Summary of the findings for RO2: To investigate the extent that industrial supplies SMEs in Singapore
benefitted by using digital marketing tools – from the customer perspective.
Key Sharing
Variables
Pros Cons
Website: Able to help make Website: Rather work with
connections with the current supplier because of
supplier quickly. relationships and their
Product and Services
Website: Technical solution has proven
appeal
information available on the workable before.
website helps with fast
decision making.
SEM: Appearing in the top
results of the search
engines search shows
better product and
services. Brand Credibility
SEM: Appearing at the top
of search engine search
results means brand is
widely recognised.
Website: Has no
geographically limitations.
DM tools: Able to
International Appeal
benchmark pricing globally
and open up better
sourcing.
Website: Available 24/7 Supplier evaluation:
allows viewing and Pricing, quality, customer
answering some questions support and supplier- Customer Loyalty/
at any time. customer relationship are Retention
Email: Increase and non-digital marketing
enhance communication. related.
DM tools: Able to Products are being
benchmark pricing and evaluated by the pricing,
open up better sourcing for quality and supply chain of
Value for Money
better quality, cheaper the suppliers and are not
pricing or better supply affected by digital
chain. marketing tools.
Note. Table created by Author to summarise the finding for Research Objective 2 from the customer
perspective.
Having a supplier’s website that display much of the information the customers
need and they are able to make a decision faster when they need to, thus
improving product and services appeal. SEM tools also help to enhance
credibility as appearing in the top results of search engine search gives
customers peace of mind to engage with the supplier. In addition, websites
have no geographic limitations and help customers search for a wider range
of suppliers globally. This may enable them to make better choices and
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improve their search for a better supplier. Digital marketing tools also help in
enhancing communication, and thus, in improving customer service and
support. This, in turn, helps to build better relationships that create and
maintain relationship-based networks and ultimately improve customer loyalty.
However, customers’ decisions about purchasing from new suppliers are still
heavily affected by pricing, quality, customer support and relationship-based
networks, which are not directly affected by digital marketing.
The investigation into the effectiveness of the digital marketing tools used by
the customer shows that when finding new suppliers, the most commonly used
digital marketing tool is a search engine. Using the results of a search engine
search, the customer is able to go to the website of the supplier to obtain more
information on the products and services they are looking for. Normally
customers would only go into the search results of their enquiry ranked among
the first few. This also proves that the top few results of a search engine search
would normally have created an impression of good brand credibility.
According to interviewees 7, 8 and 10, being ranked at the top of the search
engine search results would make a supplier look more credible:
“It would show that they are genuine and probably been around for quite some time.”
“In the internet, I think if Google can come out in the top, they should be good.
If not, how will they be at the top?”
“They should be good. If not, why would their brand always appear?”
This shows that from the customer’s perspective, the top results that appear
in a search engine search would normally be considered to be the more
credible suppliers. In addition, appearing in a search engine search and having
a website would make the supplier known to the customers, as customers
have no way to know that the supplier existed unless they could find them.
Interviewee 7 said:
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I think I shared this portion earlier that I think digital presence today is
very very important because right from the start my approach is that
when I have a sourcing request, the first thing I would do is Google.
Suppliers with zero digital presence might have the best pricing, but I
don’t know because they are not on Google or other digital means.
Even if the supplier that has a digital presence actually buys from the
one that doesn’t and sells it to me, I won’t know. And I will still buy from
the supplier that has the digital means as they give me the information
I need.
This statement shared by a customer shows that because most customers are
using digital means to look for suppliers, as this is fastest for them, suppliers
should have some form of digital presence. It would be best to have some
proper digital marketing tools that allow their products and services to be
known to customers.
The other advantage of website marketing tools for both finding new suppliers
and for interacting with existing suppliers is that the website is always available.
Customers are able to find important information whenever they need it.
Interviewee 9 said:
I think the main advantage is that it allows one to make the connection
quickly and, of course, to quickly identify if there are any opportunities.
If we were to email you or have to call you usually there is a delay in
the response. One thing is that with email, a supplier might take time to
reply. If we call, we can’t always reach them, or need to call at a good
time. Then we can’t make a fast decision on whether to proceed further.
When the customer is able to access information any time they need it, they
are able to make decisions in a timely manner. This enhances customer
acquisition for the supplier. It also improves communication between the
customer and existing suppliers, increasing customer satisfaction and, hence,
improving the relationship with the customer, leading to enhanced customer
retention.
All the interviewees disclosed that in order to have effective customer retention,
they hoped that suppliers would be able to provide good pricing, offer good
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support to them and also maintain a good relationship with them. Having a
website helps increase customer support. However, digital marketing tools
would not be able to assist with other factors such as the pricing of their
products and services.
Table 19
Summary of RO3: The effectiveness of digital marketing tools in customer acquisition and customer
retention from the customers’ perspective.
Note. Table created by Author to summarise the finding for Research Objective 3 from the customer
perspective.
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Table 19 shows that although customers would always prefer to approach
existing suppliers that they have a good relationship with, they would use the
internet whenever they needed to find new suppliers. Having a website helps
the supplier to be found by the customer easily. Having adequate information
on the website also assists customers to make quick decision about the appeal
of the products and services. In addition, being at the top of the results of a
search engine search could improve brand credibility and, in turn, improve the
chances of a customer reaching out to the supplier. With regards to retaining
suppliers, digital marketing helps in creating better communication and better
customer service to build customer loyalty and retention, although pricing and
quality are other factors the customer considers when deciding to retain a
supplier. Using digital marketing tools can assist in building better customer
service and communication to achieve a better supplier-customer relationship,
thus creating an RBN.
In summary, this chapter has uncovered that the prominent digital marketing
tools used by owners/managers for customer acquisition are websites and
SEM, and for customer retention, websites and non-digital marketing tools
such as pricing, quality products and services.
The digital marketing practices that affect company strategy and build
competitive advantages include using digital marketing tools to increase
awareness through online presence, improve communication with customers,
and increase brand visibility and credibility. This would help the industrial
supplies SMEs in Singapore to go global and expand internationally,
increasing the appeal of their products and services. This would assist the
industrial supplies SMEs in Singapore in helping to increase customer
acquisition for potential customer as well as increase customer retention
through increasing customer interaction and building customer relationship
and loyalty.
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However, digital marketing can only assist the industrial supplies SMEs in
Singapore to a certain extent. Factors such as pricing and quality of the
products supplied are important factors for customer acquisition and retention.
There was no evidence to indicate that using digital marketing tools influenced
these factors. In addition, industrial supplies SMEs in Singapore lack the
resources to build digital marketing capabilities and preferred physical face-to-
face meetings with customers in order to provide technical solutions and build
a relationship with the customer.
The interviews with customers showed that the prominent digital marketing
tools used for finding new suppliers were websites and search engines.
Visiting a website enables customers to make a connection with a new supplier
quickly. If there is technical information on the website, customers are able to
make decisions quickly. Search engines are used to identify good suppliers,
as they filter the supplier websites and rank them. However, customers still
prefer to work with suppliers that have an RBN with and they also take pricing,
quality and services of the supplier into account in their decision – factors that
are not directly affected by digital marketing tools.
Overall, digital marketing tools are important to both the industrial supplies
SMEs in Singapore and their customers, as they act as a link to connect new
suppliers and potential customers and help improve communication between
existing suppliers and customers.
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CHAPTER FIVE: DISCUSSION
5.1. Introduction
In this chapter, the findings from the data are discussed. The chapter is
structured to discuss the findings for each of the three research objectives
separately. This is followed by a chapter summary that appraises the
discussion holistically.
In this section, the prominent digital marketing tools used by the industrial
supplies SMEs in Singapore are considered with regard to customer
acquisition and then customer retention.
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Table 20
Combination of owners/managers’ perspective and customers’ perspective with regards to the prominent
digital marketing tools used for customer acquisition.
1 X X Owners/
Manager
2 X X Owners/
Manager
3 X X X Owners/
Manager
4 X X Owners/
Manager
5 X X X Owners/
Manager
6 X X X Owners/
Manager
7 X X X Customer
8 X X X Customer
9 X X X Customer
10 X X X Customer
Total 10 10 4 0 0 3
Note. Table created by Author to combine the summary for both the owner-managers’ perspective and
the customers’ perspective for prominent digital marketing tools used for customer acquisition (RO1).
The result from both the owners/manager and customer perspectives is that
the prominent digital marketing tools used by industrial supplies SMEs in
Singapore are website marketing and search engine marketing (SEM). These
two tools work hand-in-hand in helping the industrial supplies SMEs to become
noticed by customers and converting potential customers to customers.
Similarly, from the customer perspective, customers mainly used search
engines to find supplier websites when they have a requirement to purchase
industrial supplies that their current suppliers do not sell.
115
information to help customers obtain the information they need in the shortest
possible time (Rowley, 2008). In addition, search engines are not bound by
geographic limitations, so their use helps to create awareness both locally and
globally, this was supported according to the interview findings.
However, both the owner-managers and the customers said that the
customers would normally approach their current supplier first before
attempting to find new suppliers for the industrial supplies they needed. As
highlighted by Rocca (2020), relationships are important, especially in the
business to business (B2B) environment, so having a good RBN could help a
customer to identify suppliers that would be beneficial to them. Both the owner-
managers and the customers talked about RBNs and acknowledged that such
networks would be what they would use first when they have a new industrial
supplies requirement. However, if the item required is totally new and the
customer’s network does not include any suitable suppliers, the customer
would find suppliers using the search engines. They would normally go to the
website of the top few results by the search engine search. On the website,
they would look for the item they required and then send an enquiry from the
website or contact the supplier using the information found on the website
Although SEM tools are the commonly used to direct traffic into the website,
directory and social media are also used by some industrial supplies SMEs in
Singapore and their customers. Directory acts similar to SEM tools as
customer such as interviewee 7 would rely on directory to look for new
suppliers. The social media similarly could target certain demography
(Makrides et al., 2020) which makes the digital marketing tools much more
efficient with the limited amount of resource that can be used for digital
marketing (Ainin et al., 2015). However, due to the nature of the industrial
supplies, the data collected does not favour the use of social media for
customer acquisition as
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There are also literatures that states email marketing is the most useful of the
digital marketing tools (Charlesworth, 2018) and the cost of using email
marketing tools is low (Rosokhata et al., 2020). However, the data gathered
shows that it is not the case in Singapore. According to Turunen (2021),
customers may be unhappy about email marketing communications they
receive if they perceive that such emails do not add value to them. From the
data collected from the interview with both owners/managers and the
customers stated that they would not look at marketing email sent by an
unknown person and would normally classify the email as a spam mail and
this would end up disadvantaging the company (Merisavo & Raulas, 2004).
Lastly, customers also pointed out that a bulk majority of their decision come
of engaging the suppliers and making a purchase from the suppliers comes
from a non-digital marketing aspect such as the industrial supplies is of the
best pricing they could find in the market, or has the best quality that they could
use, interviewee 8 & 10 also mentioned that the customer services and the
supply chain should also be aligned to their requirement. Similarly, Suherna
(2021) suggested that good customer services could help build customer
relationship to achieve customer loyalty. This could build a RBN structure
where can help to promote long-term cooperation (Varadarajan, 2020; Zhang
et al., 2021).
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5.2.2. Prominent digital marketing tools for customer retention
Table 21
Combination of the owners/managers perspective and the customer perspective with regards to
prominent digital marketing tools used for customer retention.
Directory / Non-digital
W-O-M /
Interviewee # Website SEM Social Email (traditional)
Blog
media
1 X X
2 X X
3 X
4 X X X
5 X X X
6 X X X
7 X X
8 X X
9 X X
10 X X
Total 8 0 0 4 0 10
Note. Table created by Author to combine the summary for both the owner-managers perspective and
the customer perspective for prominent digital marketing tools used for customer retention (RO1).
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Both the owners/managers and the customers see the website marketing tool
as useful in customer retention because it helps to improve the level of
customer service. Similarly, Nikunen et al. (2017) also stated that customer
value being able to go onto a supplier’s website and look for information
directly, enabling them to make fast decisions, enhancing their perception of
the supplier’s customer service. This shows that in the website marketing tool
that have adequate content helps owners/managers to improve customer
satisfaction and ultimately helps in customer retention.
119
services, providing customers with more information. By using a combination
of SEM and website marketing, SEM is able to create a higher awareness level
and direct more traffic to the website (Makrides et al., 2020), where enquiries
from potential customers can be converted into sales for the company. This
occurs because customers commonly use search engines to find new
suppliers in order to improve pricing and quality and access better support
levels. In addition, customers may have new requirements that their current
suppliers cannot help them with. Customers are more comfortable buying from
existing suppliers, especially those with whom they have a relationship, having
worked with them before (Zhang et al., 2021). As they have had a successful
experience with the supplier or be aware of the supplier’s reputation (Yeh et
al., 2020). Thus, they are heavily reliant on their RBN to determine which
supplier they would approach when they have a new requirement or a new
target to achieve. However, according to Forkmann et. al. (2022), relationships
are not built overnight: they require time and opportunity for individual social
activities to occur. This shows that in order to build RBN, it is a long process
and requires many resources which the use of digital marketing tools could
enhance customer relationships (Ancillai et al., 2019).
The findings show how the variables digital marketing capabilities could help
the industrial supplies SMEs in Singapore build sustainable competitive
advantages. The combined summary of the finding showing the pros and cons
of the digital marketing tools that could enable the capabilities (table 22) are
as follows.
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Table 22
Combined summary of the findings for RO2: To investigate the extent that industrial supplies SMEs
benefitted by using digital marketing tools as a strategic tool
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Website: No personal
contact.
Going Global /
DM tools: Unable to
International
physically look at the
Appeal
problem and suggest correct
solutions.
Website: Customer wants to Supplier evaluation: Pricing, quality,
see them personally face to customer support and supplier- Customer
face to solve the technical customer relationship are non- Satisfactions /
issue. digital marketing related. Customer
DM tools: Customers look for Loyalty/
better pricing, quality and Retention
customer service.
Products are being evaluated by the
pricing, quality and supply chain of
Sales Revenue /
the suppliers and are not affected
Value for Money
by digital marketing tools.
Note. Table created by Author to summarise the finding for Research Objective 2 from both the
owners/managers’ and customers perspective.
From the owner-manager perspective, using digital marketing tools helps with
customer acquisition; from the customers’ perspective, it increases the appeal
of products and services. The interviews conducted with the owners/managers
showed that using website marketing and SEM tools allowed the customer to
look at their product and services. Therefore, the customer could enquire
directly about the industrial supplies that they would need, as mentioned by
Fraccastoro et al. (2021), digital marketing tool can help to establish new
relationships between individuals and businesses, helps to improve customer
acquisition.
Similarly, from the customer perspective, customers are able to look at the
technical information provided by the industrial suppliers, which allows them
to make fast decisions about whether to purchase the product or not. If they
want to purchase the product, they are able to connect to the supplier in the
quickest and simplest way by inputting their information on the website.
According to Vieira et al. (2019), using website marketing and good SEM
techniques helps in customer acquisition as compared to using the traditional
method to acquire customers. This is because digital marketing tools help in
facilitating the customer decision-making process (Habibi et al., 2015) when
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the information presented on the digital marketing tools is relevant to the
customer (Nuryakin, 2020), and the customer is able to gather information
quickly (Scheers, 2018). The customer is thus able to make a decision quickly,
and this improves the appeal of the products and services.
Using digital marketing tools acts as an enabler for brand visibility from the
owners/manager’s perspective and increases brand credibility from the
customer’s perspective. The interviews conducted with owners/managers
show that their website will be found by search engines, giving them an online
presence. If the website has the right information and uses SEM tools, it will
appear near the top of the results from a search engine search, which helps
their brand visibility. Similarly, from the customer perspective, a website that
appears at the top of the search engine results normally means that the brand
is widely recognised and this adds to the brand’s credibility. According to
Routray (2020), digital marketing tools can enhance brand visibility and build
brand credibility. Having good brand visibility can affect the customer’s
perception of the brand’s credibility. In one interview with a customer, the
interviewee said that if they see a brand frequently, that has a positive impact
on their perception of the credibility of the brand.
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However, the challenges that the owners/managers face with using digital
marketing tools to enhance brand credibility is that they have difficulty finding
people with digital marketing expertise. Maintaining SEM tools to build brand
visibility can be very expensive and there’s no guarantee that investing
resources in increasing brand visibility would make good business sense.
Overall, the data collected shows that using digital marketing tools can
increase brand visibility and brand credibility, make it more likely that the SMEs
are noticed by customers and improve the customers’ perception of the brand.
Customers, however, say that they would not be too concerned about the lack
of a physical presence as long as the brand is credible enough. They would
perform some checks on the background of the supplier before deciding to
procure anything from them. That said, the customer would actually prefer the
item to be locally available as trans-border transactions usually introduce
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greater complexity into the supply chain and service would usually not be as
fast. There may also be time differences or limitations on the communication
methods available to them.
Owners/managers say that using digital marketing tools has enabled them to
reach a global market using internal resources. However, digital marketing
tools have also enabled foreign competitors to compete in the small Singapore
market. Nevertheless, the owners/managers believe that digital marketing
tools are needed as an internal resource of the company in order to create
competitive advantage and enable them to compete effectively in both local
and global markets.
Customers shared more on how they evaluate their suppliers based on their
pricing, service level and quality. They also value the relationship with the
supplier. With a positive past experience of the supplier’s service level and
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quality, they would normally go to their own preferred supplier rather than
taking a risk by exploring new suppliers. Customers did welcome the digital
marketing tools that make communication easier: sometimes a decision has
to be made quickly and having good digital marketing tools helps the customer
to find the information they need in order to make a decision. This indirectly
improves the service level of that supplier.
In accordance with the study by Hassan et al. (2019), customer retention and
loyalty can be built using digital marketing tools by enhancing communication
with the customer (Aini & Hapsari, 2019), gathering feedback and
understanding the needs of the customer (Routray, 2020; Varadarajan, 2020).
However, the fundamental priority of customer retention and loyalty is
relationships (Hlefana et al., 2020). Relationships can be built by ensuring
customer interaction to provide better services (Bahadur et al., 2018; Jokela &
Söderman, 2017), which can be enhanced using digital marketing tools
(Hassan et al., 2019; Nikunen et al., 2017) and understanding the customers’
needs (Cortez et al., 2020; Fjellström et al., 2020; Routray, 2020). This was
agreed by the customer that they would appreciate to find information that are
related to what they are looking for in the website quickly. In order achieve this,
the website content must also be optimised to make finding information easier.
Overall, using digital marketing tools does not seem to have a direct impact on
customer retention and loyalty. However, using digital marketing tools helps to
enable industrial supplies SMEs in Singapore to improve communication and
improve the customer service experience. This, in turn, enhances the RBNs
of the company. In RBT, RBNs are a very important resource of the company,
so this would help in building competitive advantage for the industrial supplies
SMEs in Singapore (Burt & Soda, 2021).
126
build a solution and develop the relationship with the customer in order to
complete the sales process and increase sales revenue. Using digital
marketing tools has helped them to open up initially to the customer, giving
them a “chance” to interact with the customer and, from there, build a
relationship and ultimately improve sales revenue.
Improving sales revenue could help the industrial supplies SMEs in Singapore
gain competitive advantage (Nuryakin, 2020). In the resource-based approach,
SMEs are generally lacking the resources to create competitive advantages
(Harrigan, et al., 2010; Ziółkowska, 2021). An increase in sales revenue can
help the company build capabilities to create competitive advantages.
From the customer perspective, customers are not looking at pricing alone.
The overall package of the company is much more important for the customer:
they want their suppliers to provide value for money industrial supplies. They
benchmark the market pricing for the particular industrial supplies they need
and follow by comparing them against factors such as pricing, quality products
and services, this rejected the argument that the market is moving towards
transactional selling (Ahearne, 2022). Using the internet, digital marketing
tools have enabled them to look for many different suppliers across the globe
quickly and benchmark pricing and the other factors to determine if the item is
value for money. This shows that, in recent years, digital marketing tools have
slowly replaced other methods that customers use to retain suppliers and look
for new suppliers. From the customer perspective, value for money is also
highly reliant on the supplier’s relationship with the customer and customer
satisfaction (Hlefana et al., 2020). Having a strong relationship with the
supplier allows the customer to view the supplier as providing a better service
level and can help to improve their perception of value for money.
In summary, the use of digital marketing tools has changed the expectations
of customers and how business is conducted. It has created both advantages
and disadvantages for the industrial supplies SMEs in Singapore. Using digital
marketing tools has helped to increase the resources of the companies and
helped to improve their relationship-based networks. It also creates a threat
for those industrial supplies SMEs in Singapore that do not use digital
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marketing tools: they lose out to the competitors that use digital marketing
tools.
In light of how using digital marketing tools enables the industrial supplies
SMEs in Singapore to build different capabilities to obtain competitive
advantages, the findings of this study also reveal a weakness. That is the
absence of digital marketing tools in the current competitive business
environment. An understanding of the effectiveness of digital marketing tools
in terms of customer acquisition and retention would help owner-managers to
make better decisions on how they adopt digital marketing tools to build their
competitive advantages. The table 23 summarised both perspectives showing
the effectiveness of the digital marketing tools used.
Table 23
Summary of RO3: The effectiveness of digital marketing tools in customer acquisition and customer
retention
Effective Ineffective
Customer Acquisition (owners/managers perspective)
Enable higher brand visibility, Technical requirement needs to be
increase traffic flow and enquiry solved physically after looking at
rates. the process in the factory.
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Having a website enables suppliers Decisions about using new
to be found easily and make known suppliers depend on price, quality
to everyone that they exist. and service.
Note. Table created by Author to summarise the findings for research objectives 3 from the
owners/managers’ and customers perspective.
129
the product on their website, they make the sales process easier and enhance
the suppliers’ capacity to serve their customers. Similarly, from the customer
perspective, the internet has made searching for new suppliers easier.
Suppliers that use digital marketing tools appear in the results of internet
searches, which make them easier for customers to find. Having their
company appear in the top results of a search engine search gives the
customer confidence in the quality of their product and services.
The content of the website also makes a big difference in helping the customer
to make decisions. They often need more information to make a decision, and
according to Vieira et al. (2019), customers would normally look into the
product specification on a website before any decision is made.
However, there are challenges that would make using digital marketing tools
ineffective for customer acquisition. The owners/managers commented that
their products are highly technical and they need to be physically present in
the customer’s factory and review the customer’s technical processes if they
are to provide a solution. In addition, being physically present and meeting the
customer face-to-face builds trust and instils the customer with confidence.
Both the owner-managers and the customers agreed that the customer would
normally prefer to look to current suppliers with whom they have a relationship
for any new supplies. This was further reinforced by Kuo et al. (2020). The
customers, however, also said that the factors that would weigh most heavily
in a decision about a new supplier were pricing, quality and the service and
that they didn’t necessarily have a need for the supplier to meet them face-to-
face – which differed from the perception of owners/managers.
130
customers also pointed out that having a supplier with a comprehensive
website could help them to find the information they needed quickly, without
the need to call them or arrange a meeting with them. This helps reduce the
response time and improve the level of customer service holistically.
According to all the interviewee with the customers, the pricing, products and
services plays a very big factor in customer’s decision to retain the existing
suppliers, this is aligned with Geiger and Finch (2011) whom argued that some
buyers do not see any potential in maintaining relationships with suppliers
where their focus is mainly on prices of the item they purchase, this also
reinforce Ahearne (2022) findings that the market is moving towards
transactional selling. Although the pricing, products and services are not
directly affected by digital marketing tools, they could be affected indirectly.
According to Fjellström et al. (2020), improved communication can assist to
create a better customer service experience (Aini & Hapsari, 2019), and thus
provide customer satisfaction. This would help to build a positive supplier-
customer relationship (Palmatier et al., 2006) and in turn, building better
customer satisfaction and also expand the RBN of both the supplier and the
customers.
131
important aspects of customer retention and that service could be enhanced
by using digital marketing tools (Cortez et al., 2020; Fjellström et al., 2020;
Routray, 2020). However, there is sign of weakness according to the
owners/managers that they would need an expert in digital marketing or
additional employees to manage the digital marketing tools correctly as person
who manages the digital marketing tools would need to “know what they are
doing”. This shows that even with the availability of digital marketing tools,
studies shows that SMEs does not keep up with the pace of digital
development and therefore could not fully utilize digital marketing tools to the
fullest potential (Taiminen & Karjaluoto, 2015).
This study shows that using digital marketing tools could effectively assist
industrial supplies SMEs in Singapore as digital marketing tools enable various
internal and external resources of the company and help to build a bridge
between supplier and customer, to create awareness and improve brand
visibility. Herhausen et al. (2020) highlighted although digital marketing could
to building a competitive advantages, there are many gaps between the
practice and the ideal situation. That said, some of the factors that affect
customer acquisition and retention are unable to be improved by using digital
marketing tools. Nevertheless, customer service could be improved and the
quality of the brand could be made known with digital marketing tools.
In summary, using digital marketing tools could effectively assist the industrial
supplies SMEs in Singapore. Digital marketing tools enhance various internal
and external resources and can improve customer acquisition, brand visibility,
going global, customer satisfaction and customer retention. Using digital
marketing tools also helps to create a “bridge” for building an RBN and
connecting the supplier and the customer.
These days, when customers has high reliance on finding suppliers by using
digital means, digital marketing tools offer a solution for the customers. They
allow suppliers to be found easily by customers. This is especially important
when the market is small and competitive, with both local and global
competition. The industrial supplies SMEs in Singapore would benefit from
using effective digital marketing.
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5.5. Chapter summary
The chapter has presented and discussed what the prominent digital
marketing tools are and how they can affect the industrial supplies SMEs in
Singapore. Website marketing and search engine marketing are the prominent
digital marketing tools used. They have helped to create strategic benefits for
suppliers by enhancing brand visibility to create awareness on the internet and
to link with customers, thus improving customer acquisition. However, a
website should contain relevant information so that customers can understand
the products and services the supplier offers.
The overview framework helps the discussion by linking the literature on RBT
and RBN structures using digital marketing to build the internal and external
resources of the company. The discussion also covers the effectiveness of
using digital marketing tools in customer acquisition and retention and how
effective digital marketing tools are for the industrial supplies SMEs in
Singapore. Website marketing and search engines marketing have been used
effectively to increase brand visibility. Increased brand visibility leads to an
increase in customer enquiries and customer acquisition and an improvement
in customer service, which indirectly helps to build a better relationship with
the customer. However, using digital marketing tools for customer acquisition
and customer retention has its limitations: industrial suppliers need to maintain
a certain product quality and their products need to match with the customer’s
technical requirements. Pricing of the industrial supplies also plays a big factor
in both customer acquisition and retention. This chapter has also highlighted
the weaknesses and potential threats of using digital marketing tools in the
company to develop competitive advantages.
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CHAPTER SIX: CONCLUSION AND
RECOMMENDATIONS
6. Introduction
This final chapter will reflect on the achievement of the research aims, followed
by a review of the contribution to the knowledge in this field and the limitations
of the study. Suggestions for future research are also discussed. The chapter
concludes with final thoughts about the subject studied.
134
In addressing RO2, the study found that using digital marketing tools enhances
a company’s customer acquisition capability, brand visibility, access to global
markets and level of service, leading to greater customer satisfaction. These
internal resources also generate better sales revenue. All of these outcomes
can contribute to building sustainable competitive advantages.
In the context of digitalisation taking place in recent years (Ng, 2021; Tan,
2020), customers of the industrial supplies SMEs in Singapore that do not
restrict themselves to local Singapore suppliers have become heavily reliant
on using digital means to search for better suppliers. These methods include
using search engines and using their own relationship-based networks to look
for new suppliers that offer better pricing and product quality. On the other
hand, the industrial supplies SMEs in Singapore that have digital marketing
capabilities have a competitive advantage over those who don’t as using digital
marketing tools can build the company’s external resources. These may
include having greater customer appeal, building brand credibility through
having high brand visibility and having an international.
135
customers still prefer to deal with existing suppliers and look at the commercial
issues, such as pricing and quality. A potential supplier often relies on having
a physical follow-up meeting to gain a potential customer’s trust and
confidence and to build an RBN with them. However, from the customer’s
perspective, they would almost always look for new suppliers using digital
means, which shows the importance of customer acquisition by using digital
marketing tools and having a digital presence, according to Fraccastoro et al.
(2021) digital marketing tools can help to establish new relationships between
individuals and businesses.
In summary, the research aims and objectives of this study were achieved.
The research found that digital marketing tools can be used as a bridge to
create RBNs for the industrial supplies SMEs in Singapore. Digital marketing
tools are an internal resource of the company, enabling the development of
other company resources. Those resources help to enhance RBNs and
effectively help the industrial supplies SMEs in Singapore to achieve
competitive advantages. Not having digital marketing capabilities would place
them at a disadvantage compared with their competitors both locally and
136
globally. However, there is a need to track the performance of the digital
marketing tools and would likely incur additional costs for the
owners/managers of the industrial supplies SMEs in Singapore
The findings of this research with regards to RO1 are that the prominent digital
marketing tools are websites and search engine marketing. Used concurrently,
they can help to create a “bridge” to connect suppliers and customers, as
customers rely heavily on using digital marketing tools to search for new
suppliers. In addition, digital marketing tools also enhance communication and
provide information to any customer at any time and in any location. This adds
to the current digital marketing literature (Appendix 1) by uncovering the most
prominent digital marketing tools for the industrial supplies SMEs in Singapore.
The findings also uncovered other prominent digital marketing tools such as
digital WOM which was mentioned in various literature but were not used in
137
the environment here. This would add value to the current literature as it
highlighted the potential gap between the literature available and the current
situation in the industrial supplies SMEs in Singapore.
With regards to RO2, using digital marketing tools has helped to build brand
visibility for the industrial supplies SMEs in Singapore, which builds the internal
resource of the company. This also affects the external resources of the
company creating competitive advantages according to Järvinen et al. (2012)
the SMEs would need to understand the nature of the tools before
implementing the digital marketing tools and adopt the tools appropriately to
build sustainable competitive advantages. The findings also illustrate the
challenges that digital marketing faces in Singapore, where RBNs play an
important role to maintain and expand their customer base. There is also a
need to maintain a balance between RBNs strategy with other strategies
(Geiger & Finch, 2011).
The findings also contribute to the building of the conceptual framework, which
contributes to resource-based and relationship-based network theory. The
conceptual framework contributes to the allocation of resources to the various
focus of the organisation to meet customer expectations to create efficiency
towards joint success, building sustainable competitive advantages. Such
resource allocation could help SMEs to optimise their resource, as the use of
digital marketing tools could enhance sales. Having a website could also act
as another salesperson who was not bound by working hours and geographic
limitations could enhance brand visibility for customer acquisition and also
provide a quick solution for the current customer that might have problems
with the products which helps customer retention. This would effectively help
SMEs to use their limited resources more efficiently.
With regards to RO3, the effectiveness of digital marketing tools was explored.
The results indicate that even though in Singapore RBNs are used widely,
there are indications that using digital marketing tools is making an impact on
how business is done, the study reveals that although the industrial supplies
SMEs in Singapore have implemented digital marketing tools into their
strategies, they would also need to understand and keep up with the
138
development and the use of digital marketing tool such as hiring additional
talent or to have an objective towards using the digital marketing tools which
were further endorsed by Taiminen and Karjaluoto (2015) findings that SMEs
that could not keep up with the digital marketing development could not fully
utilise the digital marketing tools.
Lastly, the resources of the industrial supplies SMEs in Singapore might not
allow the owners/managers to fully implement digital marketing as they might
need to invest additional resources to build digital marketing capability, the
benefits of digital marketing tools must give a promising result. For the
owners/managers to feel “worth the money” from their investment into building
digital marketing capabilities which most of the SMEs would be benchmarking
against their sales revenue. This would determine if the digital marketing tools
are valued for money for them, the SMEs owners/managers had also
responded positively to digital marketing tools citing that even though they did
not explicitly track the performance of the digital market tools against the sales
revenue that they created, generally they knew that digital marketing tools
have helped them.
Overall, the findings of this thesis provide the reader with a better
understanding of the use of digital marketing tools by industrial supplies SMEs
in Singapore where digital marketing could assist in better resource allocation
and building competitive advantages. The methodology showcased data
triangulation using the dyadic approach, which enhanced the trustworthiness
of the research and contributed to methodological knowledge.
139
marketing tools that owners/managers should adopt are website marketing
and SEM marketing for customer acquisition. Website marketing could also
help in customer retention, as the findings suggest that having a website with
relevant information available to customers could help improve customer
service levels and hence assist in customer retention. Figure 6 shows an
action framework that acts as a guideline for practitioners who does not have
an idea of how to adopt digital marketing capability.
Figure 6
Figure 6 builds on the findings of this research. The cycle starts from #1,
understanding the customers’ needs, the needs of the customer could be
gathered by having feedback from existing customers or external research
done by research companies, having to understand the needs of the customer,
SMEs owners/managers would be able to understand what kind of content
they would need. In #2, create the website with content that could fulfil the
needs of the customers, it should also include information about and technical
specifications of the supplier’s products, this would help to address the gaps
between the customer’s perspective and the information offered in the website.
140
After the website is set up, #3 search engine marketing activities need to be
undertaken to ensure that the website is ranked in the top few of a search
engine search, this is to create brand awareness and help to build brand
credibility from the customer perspective. Once both activities are completed,
#4 active monitoring of the website is needed to ensure that #5 sales enquiries
from potential customers are responded to quickly so that #6 customers can
be acquired and #7 sales revenue can be generated, by having an increase in
sales revenue, a portion of the sales revenue generated by referring to this
action framework could be used to create better digital marketing activities to
further expand digital capabilities such as creating new website content,
maintaining the website content ensures that customers can access the latest
information, thus building sustainable competitive advantages. As Herhausen
et al. (2020) highlighted that even though digital marketing could help RBN to
build a competitive advantage, there are many gaps between the practice and
the ideal situation. Therefore, tracking the performance of digital marketing
tools is important to understand how digital marketing tools could help to bring
in additional sales revenue.
Similarly, using digital marketing tools could also assist companies because it
improves brand credibility, international appeal and brand visibility. However,
digital marketing is a double-edged sword: customers are using DM tools to
explore products and services that represent the best value for money for them,
although DM tools could help the customers to search for other suppliers that
have more value for money proposition, they would also look at the non-digital
marketing aspect such as customer services, pricing and product quality.
141
Therefore, DM tools are essential to creating a sustainable competitive
advantage.
However, this research found that some DM tools are less effective for
industrial supplies SMEs in Singapore. These include business directories and
social media, as customers would normally use search engines to search for
new suppliers. Existing customers do not normally read email marketing
materials sent by suppliers. Instead, they prefer to go to the supplier’s website
directly to check for any products and services they need. In addition, this
research also found that although DM tools could assist to create sustainable
competitive advantages, the DM tools could not replace the traditional way of
doing business in the industrial supplies SMEs in Singapore as
owners/managers and customers are still heavily reliant on building
relationship network, pricing and quality of the products that are still the main
consideration towards the decision making of the customers.
The SMEs that already have digital marketing capabilities could also explore
enhancing their website content and realigning their digital marketing
objectives as finding suggested that having an objective as to what digital
marketing tools could fill in the resource gap would allow better resource
allocation. In light of the perspective of the customers, the owners/managers
should focus on the content and gather more feedback from the customers.
This would help the SMEs to build better interaction and improve customer
relationships which in the long run help to achieve better customer retention
and build more RBNs.
142
6.4. Limitations of the Study
While these limitations meant that it was not possible to produce a large
amount of data for RO1 – to identify the prominent digital marketing tools used
– the semi-structured interview that was used was sufficient to make
identification possible. This approach also provided a focus on the benefits
and effectiveness of using digital marketing tools. It was felt that the qualitative
approach using a semi-structured interview was appropriate to investigate
RO1.
In addition, due to the ongoing global pandemic, there were various restrictions
on conducting face-to-face interviews. This was considered a limitation of the
research as interview participants might feel uncomfortable speaking via
telecommunication and video conferencing and are less likely to fully express
their views with ease.
143
6.5. Suggestions for Future Research
In this study, purposive sampling was chosen, which may have led to a lack of
representativeness. A mixed methodology could be applied to identify the
prominent digital marketing tools using a random sampling approach. A larger
database would provide more reliable findings, this would reinforce the
prominent digital marketing tools that the industrial supplies SMEs are using.
This could be followed by semi-structured interviews to explore in depth the
strategic benefits and the effectiveness of using digital marketing tools. The
digital marketing action framework (Figure 7) could also be used to explore in-
depth the effectiveness of the framework in assisting practitioners to set up
their digital marketing capabilities.
144
advantage. This has significance for the future of this research and the amount
of new knowledge that could be created through further research.
145
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163
Appendix 1 – Literature Grid
Industrial Marketing
2021 Krings et al. Management: Digital Media X X X
Optimization for B2B Marketing
164
Appendix 2 – Qualifying email for SMEs Owners/Managers
• Currently using digital marketing tools for their customer acquisition and/or
retention.
The use of digital marketing tools is referred as using:
Blog
Facebook
E-commerce
E-mail
Search engine marketing (Online advertisement)
Website
content marketing for SEO
Pay-per-click(PPC)
Kindly reply to this email, so that I would be able to potentially invite you for an
interview.
Kindly also note that interview will only be conducted upon acknowledgement of
Interview Consent Form, attached in this email, if you feel uncomfortable during
any part of the process including replying this email, kindly ignore this email.
Your Sincerely,
Kwee Yong, CHIN
Postgraduate Student
Student ID: 40411999
Tel:
165
Appendix 3 –Qualifying email for Customers buying from Singapore SMEs
• Currently buying it from any SMEs in Singapore with the following criteria:
o Company Incorporated in Singapore with:
o At least 30% local shareholding
o Group annual sales turnover of less than $100 million
o Employment size of not more than 200 workers
• Currently using digital marketing tools for sourcing currently or new suppliers.
The use of digital marketing tools is referred as using:
Blog
Facebook
E-commerce
E-mail
Search engine marketing (Online advertisement)
Website
content marketing for SEO
Pay-per-click(PPC)
Kindly reply to this email, so that I would be able to potentially invite you for an
interview.
Kindly also note that interview will only be conducted upon acknowledgement of
Interview Consent Form, attached in this email, if you feel uncomfortable during any
part of the process including replying this email, kindly ignore this email.
Your Sincerely,
Kwee Yong, CHIN
Postgraduate Student
Student ID: 40411999
Tel:
166
Appendix 4 – interview consent form
Research title:
Exploration into how digital marketing tools affects customer retention
and acquisition for SME(s) in the wholesale of industrial product (B2B)
in Singapore
Edinburgh Napier University requires that all persons who participate in research
studies give their written consent to do so. Please read the following and sign it if you
agree with what it says.
1. I freely and voluntarily consent to be a participant in the research project on the
topic of digital marketing to be conducted by Kwee Yong CHIN, Student id: 40411999,
who is a postgraduate student at Edinburgh Napier University.
2. The broad goal of this research study is to understand the role of digital marketing
can be as a strategic tool for SMEs in the wholesales industrial products (B2B) SME
in Singapore to acquire and retain customers. Specifically, I have been asked to be
interviewed to share my experience with regards to the topic mentioned above, which
should take no longer than 1 hour and 30 minutes to complete.
3. I have been told that my responses will be anonymised. My name will not be linked
with the research materials, and I will not be identified or identifiable in any report
subsequently produced by the researcher.
4. I also understand that if at any time during the interview I feel unable or unwilling
to continue, I am free to leave. That is, my participation in this study is completely
voluntary, and I may withdraw from it without negative consequences. However, after
data has been anonymised or after publication of results it will not be possible for my
data to be removed as it would be untraceable at this point.
5. In addition, should I not wish to answer any particular question or questions, I am
free to decline.
6. I have been given the opportunity to ask questions regarding the interview and my
questions have been answered to my satisfaction.
7. I have read and understand the above and consent to participate in this study. My
signature is not a waiver of any legal rights. Furthermore, I understand that I will be
able to keep a copy of the informed consent form for my records.
I have explained and defined in detail the research procedure in which the respondent
has consented to participate. Furthermore, I will retain one copy of the informed
consent form for my records.
167
Appendix 5 – interview questionnaire
a) Could you tell me about your job roles and responsibilities in your company? What
are some of the task you are required to do?
b) Could you tell me what are the some digital marketing tool(s) for example,
promoting or maintaining website, social media, sending of email, e-commerce,
etc… that you are using in your daily job and how are you using them?
Customer Acquisition
a) How do you think *DM Tools Stated* assist you in terms of getting more customers?
i) How effective do you think *DM Tools Stated* has helped you achieve
customer acquisition?
ii) How has the *DM Tools Stated* affect the business competitive edge in
terms of Customer Acquisition?
Brand Visibility
b) How do you think *DM Tools Stated* assist you in terms of getting you brand more
visible in the market?
i) How effective do you think *DM Tools Stated* has helped you achieve
brand visibility?
ii) How has the *DM Tools Stated* affect the business competitive edge in
terms of Brand Visibility?
Going Global
c) How do you think *DM Tools Stated* assist you in terms of getting you brand into
the global/overseas market?
i) How effective do you think *DM Tools Stated* has helped you to go
global/overseas?
ii) How has the *DM Tools Stated* affect the business competitive edge in
terms of Going Global?
Customer Satisfaction
d) How do you think *DM Tools Stated* help you towards customer satisfaction?
i) How effective do you think *DM Tools Stated* has helped you achieve
customer satisfaction?
ii) How has the *DM Tools Stated* affect the business competitive edge in
terms of Customer Satisfaction?
Sales Revenue
e) How do you think *DM Tools Stated* assist you in increasing your sales revenue?
i) How effective do you think *DM Tools Stated* has helped you increase
your sales revenue?
168
ii) How has the *DM Tools Stated* affect the business competitive edge in
terms of Sales Revenue?
Cost Efficiency
f) How do you think using *DM Tools Stated* is cost efficient for you?
i) How cost efficient do you think *DM Tools Stated* is?
ii) How has the *DM Tools Stated* affect the business competitive edge in
terms of Cost Efficiency?
a) Could you give an example of how the customer response to your digital
marketing efforts?
Are there other issue with the use of digital marketing tools you would like to share?
Thank you for your valuable time.
169
Semi-structure Face-to-face /video / phone interview structure (Customers)
a) Could you tell me about your job roles and responsibilities in your company? What
are some of the task you are required to do?
b) Could you tell me what are the some of the way you find new suppliers using
digital means? For example, using google, social media, online directory, etc…
that you are using in your daily job and how are you using them?
170
i) How effective is using *DM Tools Stated* to find products and services
that were value for money?
ii) How has the suppliers’ business competitive edge generated by *DM
Tools Stated* affects the value of product / services they offered against
other suppliers?
Section 3: DM Tools effectiveness (Research Objective 3)
a) Overall, how do you think about supplier who are using *DM Tools Stated* vs
supplier who doesn’t appeal to you?
Are there other issue with the use of digital marketing tools you would like to share?
Thank you for your valuable time.
171
Appendix 6 – interviewee details
172
Section 2: Interviewee group: Customers of the industrial supplies SMEs in
Singapore & Malaysia
173
Appendix 7 – Thematic analysis process
174
175
176
177
178
Customers that saw their showcase can also fill in their enquiry in the contact
form on the website. Interviewee 1 had provided an overview of his perspective
on using a website and search engine marketing tools by stating:
Most of the time the customers, when they come to us, the social media,
the website actually just leads us to the customer’s enquiry. There are
times they are not looking for the correct things or things like that. But
when we link up with them, then we ask them what they really want, so
from there on we can promote our product or services more efficiently.
But most importantly, the social media, the website is that they are able
to link us to the customers.
179