The Impact of Digital Marketing on Pakistan's Telecom Industry Profitability

Abstract

This research sought to investigate the influence of digital marketing on profitability of telecom industry in Pakistan as its general objective. The research applied a descriptive research design. Data collection was done through convenience sampling of the companies Telenor, jazz, zong and ufone by answering of questionnaire. The questionnaire was self-administered for majority of the data collection while some responses were submitted online as well. The sample frame included the employees involved in daily operations of the organization. The sample size was obtained to be of 83 comprising mostly of front-line workers. The results were examined using both descriptive and inferential statistics. This was done by using special package for social sciences version 23. It is evident that there exists a strong positive relationship between independent variables and dependent variable as shown by R value (0.521). The coefficient of determination (R2) tells the degree to which change in dependent variable can be elaborated by the change in independent variables. For the given study, the three independent variables explained the variation in dependent variable (profitability) to be 44.1% as showed by R2. The results displayed that social media marketing the strongest positive (correlation coefficient =.365, p-value = .001<.05) effect on profitability. In addition, SMS marketing and email marketing is positively correlated to profitability with Pearson-correlation value of .196 (p-value=0.004<.05) and 0.302(p- value=0.000<0.05). In the light of the results and conclusion, the proposition of following recommendation is put forth: attempts must be made for the implementation of digital marketing practices which are excluded from the current study as to help improve the performance pf telecom industry.

Keywords: digital marketing, social media marketing, SMS marketing, email marketing, internet users.