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European Journal of Scientific Research
ISSN 1450-216X / 1450-202X Vol. 128 No 1 January, 2015, pp. 35-44
http://www.europeanjournalofscientificresearch.com
The Relationship between Marketing Information System and
Gaining Competitive Advantage in the Banking
Sector in Jordan
Anas Y. Alhadid
Assistant Professor, Department of Marketing
Applied Science Private University, Amman, Jordan
P.O.Box 166 Amman, 11931 Jordan
E-mail: [email protected]
Hasan Ali Al-Zu’bi
Professor, Department of Business Administration
Applied Science Private University, Amman, Jordan
P.O.Box 922717Amman, 11192 Jordan
E-mail: [email protected]
Samer Barakat
Associate Professor, Department of Management Information Systems
Applied Science University, Amman, Jordan
P.O.Box 166 Amman, 11931 Jordan
E-mail: [email protected]
Abstract
This study investigates the relationship between marketing information system and
gaining competitive advantage in the banking sector in Jordan. It explores the usefulness of
the use of information technology in achieving competitive advantage. It also aims to relate
the components of marketing information systems with the competitive advantage in the
banking sector. The researchers obtained secondary data from documented sources and
primary data from the use of a questionnaire. The results of the analysis showed that there
is a relationship between the Internal Records, Marketing Research, and Marketing
Intelligence and achieving competitive advantage in the Jordan Baking Sector. The results
also indicated that only two traits; age and educational Level, had a relationship with
marketing information system. However there was no significant relationship between
gender, Experience Years and of respondents and their perceptions of marketing
information system.
Keywords: marketing intelligence, marketing research, internal records
1. Introduction
Marketing information system supports managers in their day-to-day activities. It helps them in
conducting marketing activities in the most successful way. It can be defined as an optimal
combination of human resources, technology and procedures to gather, analyze and distribute
meaningful information to be used to make marketing decisions (Al-ajamar, Tayseer and Tai, 2002).
The Relationship between Marketing Information System and Gaining
Competitive Advantage in the Banking Sector in Jordan
36
Marketing managers at the Banking sector faces many challenges as they carry out marketing
activities. The general public tends to underrate their marketing efforts through suspicion and lack of
trust in the banking sector (Raymond and John, 2001). This therefore, calls for creativity and
innovativeness in the way marketing is conducted in the banking sector. Every successful business is
attributed by successful marketing efforts. Therefore, managers can improve their decision making by
integrating the information systems in their marketing procedures. Marketing information system is
increasingly becoming an integral part of every business. In the banking sector services are being
digitized where information technology is taking the centre stage. In marketing, the information
transfer is taking place at a terrific speed. To avoid being overtaken by events, any company must
embrace the information system in order to evaluate market forces that will ensure the business
success. Information on competitors, opportunities and prices, are valuable for marketing success.
Marketing information system is helpful in carrying out marketing research, analyzing internal records
and conducting market intelligence. This research seeks to explain and single out the role of marketing
information system for gaining sustainable competitive advantage in the banking sector (Mark, 2000).
2. Literature Review
2.1. Information System and Marketing Strategy
Any organization must have marketing strategies, which are aimed at achieving a market niche. They
are also aimed at gaining competitive advantages over the competitors. Market information systems
will be effective in attaining these goals which are key ingredients for its success (Huda and Yonsei,
2009) As a result of fluctuations in the market trend there is a need to incorporate information
technology in the marketing activities in order to predict future uncertainties. Therefore, in the banking
sector which is characterized by the competitiveness of the marketing information system will be very
effective. It helps in obtaining the necessary information which is vital for managing marketing
activities (Huda and Yonsei, 2009).
2.2. Role of Marketing Information System
In any business, marketing information system has an influential role in attaining a competitive
advantage. This can either be in terms of cost advantage or differentiation. It will help companies to
forecast and react to change in a competitive way (Broadbent and Weil, 1993).
Broadbent and Weil stated that, marketing information system will be useful in;
• It offers a new way to combat competition
• It helps revolutionize the entire business in terms of how it conducts marketing
activities.
• It helps to structure the organization towards better competitive position.
• It is also useful in identifying market opportunities through forecasting and analyzing
marketing needs.
Marketing information system is a combination of people with different competencies,
procedures and means through which management makes decisions concerning the markets (Talvinen,
1995). This in turn, facilitates marketing planning and coming up with viable strategies to seize market
opportunities. According to Talvinen (1995), marketing information system is the optimal combination
of human resources, machines and procedures which relay the needed information from the
environment for decision making. Marketing information system is made up of:
2.2.1. Internal Records
This is data collected and stored in a database which pertains to daily marketing activities. It helps in
planning so as to minimize the risk of uncertainty about the future.
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Anas Y. Alhadid, Hasan Ali Al-Zu’bi and Samer Barakat
2.2.2. Marketing Intelligence
This is the strategy of getting information about the market in terms of prospective and existing
customer base with a view to determine the market needs. This information is analysed so as to come
up with viable decisions to exploit any market opportunity. Market intelligence helps an organization
to monitor competitors’ moves so as to come up with counter measures (Callingham, 2004).
2.2.3. Market Research
This is the process of collecting both qualitative and quantitative data that relate to market processes.
The data collected thereof is analyzed so as to interpret and solve the marketing issues concerning the
company’s products and services. It is a scientific orientation which ensures the marketing problems
are confronted with efficiently. In line with this, marketing information system helps to eliminate
information asymmetry, by availing the right information, at the right time and about the right place to
the organization. It also supports managers in the decision making process of articulating the market
information to the internal environment. Therefore, organizations can make quick response to market
fluctuations. This information can also be stored for future uses in the organization’s databases
(Raymond and Rogers, 2001).
Marketing information system will be effective in developing new and innovative product and
service which meet the customers’ expectations. Through continuous analysis of market information,
organizations will be able to improve their market response and coming up with supportive decisions
that will guarantee organization success (Alexandra, 2005). A market poses many dynamic variables
which call for managers to come up with better decisions to outshine their competitors. Through
technology, managers can apply the information system to generate viable decisions. Decision support
systems (DSS) are one of such technique. It assists in coming up with accurate decisions that ease the
decision making process. System information can be integrated into marketing processes in many
ways. It is applied in such a way that, market information will be manageable and utilized in the best
way possible. A decision support system is being used today in making complex decision concerning
the market. Therefore, marketing information system is the determining factor towards incorporating
full market forces in the organization’s decision making process ((Alexandra, 2005). In line with this,
information technology presents a golden opportunity to any company that craves for attaining a
competitive advantage (Barney, 1991).
2.3. Why Marketing Information System?
Marketing information system has far reaching benefits to any business organization. The reasons for
marketing information system therefore include:
• Competition; due to stiff competition in the market, organizations has no other option but to
embrace information systems in their marketing processes.
• Need for support to decision making; as managers are faced with many variables in the market,
the decision making process grows more complex. Management information system has tailor
made system techniques in support of decision making.
• Measure performance; it assists in evaluating the performance of a particular service or a
product by assessing the customer satisfaction about the product.
• Monitor environment; external environment is very dynamic. This calls for regular and close
monitoring of the market forces so as to keep up-to-date with the current issues.
• Need for market intelligence; there is the need to gather competitive intelligence about the
market to identify the existing and potential customers for the business.
• Improving efficiency; as a result of growing customer needs it calls for efficient methods of
data collection concerning the customer needs. Marketing information systems help to obtain
the needed information to develop new products that meet consumer needs.
The Relationship between Marketing Information System and Gaining
Competitive Advantage in the Banking Sector in Jordan
•
•
38
Need to reduce market risks; market information systems help to reduce the risks associated
with the market such as product failure, changing customer preferences that results from poor
marketing strategies.
Information overload; as information sources increases every day on organization may be spoilt
for choice and end up using wrong information. Management information system helps
organizations to apply and manage useful information for effective decision making (Gosh,
1998).
2.4. Creating Competitive Advantage through Information Technology
Figure 1
Figure1 illustrates the way activities are intertwined to achieve competitive advantage. It shows
two distinctive types of business activities, which are primary activities and supportive activities.
According to Porter (1985), Primary activities refer to those activities which enable
organizations to execute their roles in the most fulfilling way. The customers on the other hand, are
able to perceive the benefits through the organized and coordinated activities of the businesses. To
make sure that the final customer is satisfied with their services, these activities have to be well
performed and well coordinated throughout the business processes
Support activities on the other hand, have a long term business effect. They are used to come up
with strategies that are aimed at long term development of the business. These activities are aimed at
adding value to the business indirectly. The value obtained in these activities is determined by the
success of primary activities.
The value chain helps to understand the impact of information technology in the marketing
decision making. It represents the combination of activities that facilitate the production process and
the subsequent delivery of the product or service to the end consumer. Value chain also helps to
identify the needed actions and analysis of their effects in terms of the costs and the value derived from
the ultimate customers. The use of information technology has added value to the activities, and the
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Anas Y. Alhadid, Hasan Ali Al-Zu’bi and Samer Barakat
way they are linked together to facilitate the entire production process (Porter, 2001). These activities
incorporate information technology through online services, which greatly reduces the cost of
transactions (Bakos, 1986). According to Bakos, information technology also helps in the way
companies respond to the forces of supply and demand in the market. This was facilitated by the
availability of the market information which facilitates faster decision making.
Porter believes that, the industry competitiveness is largely contributed by the way it is
structured economically. This will determine the degree to which an organization can combat
competition in the market. In his approach, he seeks to exemplify the competition in the market and its
dynamism. He adds that, there are five forces, which affect the competitive attractiveness in an
industry. These forces include the threat posed by the substitute products or services, the competitors’
rivalry, entry barriers, bargaining and purchasing power of both buyers and suppliers (Porter, 2001).
3. The Problem Statement
The study problem is concerned about the role of marketing information system for gaining sustainable
competitive advantage in the banking sector. This problem can be generalized through the following
questions:
1. Is there any statistical significance between marketing information system and competitive
advantage in the banking sector?
2. Is there any statistical significance between the internal records in the marketing information
system as a whole and attaining competitive advantage in the banking sector?
3. Is there any statistical significance between the marketing research and competitive advantage
in the banking sector?
4. Is there any statistical significance between the marketing intelligence and competitive
advantage in the banking sector?
4. Benefits' and Justification for Conducting the Study
The importance of this study is to identify the role played by the marketing information system in the
banking sector in terms of:
It provides marketing information to aid in decision making. Availability of accurate and
reliable information about the market helps in decision making where marketing activities can be
planned, implemented and monitored to ensure marketing success. It also helps to achieve
effectiveness in the way an organization conducts the marketing activities by enhancing accurate and
timely decisions concerning the market. Management information system also enhances efficiency in
how organizations formulate marketing policies in order to serve customers better. Information is part
and parcel of the successful marketing process (Badr al- Din). Information on customers and
competitors as the organization embraces globalization allows organizations to carry out business
globally.
5. Objectives' of the Study
This study aimed at:
1. To determine the relationship between the major components of marketing information system,
and competitive advantage in the banking sector.
2. Introduce the concept, elements, and components of marketing information system to the
banking sector.
3. Make recommendations concerning the marketing information system obtain thereof from the
research findings.
The Relationship between Marketing Information System and Gaining
Competitive Advantage in the Banking Sector in Jordan
40
6. Suggested Model
A model consists of two types of variables, the independent variable (Marketing Information System)
and the dependent variable (Competitive Advantage) as shown in figure (1).
Figure 2: Research Model
Marketing Information System
Internal records
Marketing research
Competitive
advantages
Marketing intelligence
7. The Hypotheses of the Study
The study tested the specific hypothesis and a general hypothesis as outlined below;
The specific hypothesis:
H01: There is no statistically significant relationship between marketing information system
and competitive advantage in the banking sector.
Sub hypothesis:
H01-a: Internal records, one of the marketing information system components, are not
statistically related to the competitive advantage in the banking sector.
H01-b: Marketing research, the next component of the marketing information system, is not
statistically related to the competitive advantage in the banking sector.
H01-c: Marketing intelligence as a component of the marketing information system is not
statistically related to the competitive advantage in the banking sector.
H02: There is no significant relationship between Sample study perception of marketing
information system and their personal traits such as gender, age, level education, Experience Years.
8. Methodology of the Study
8.1. Population and Sample
The study obtained a population of ten banks from the banking sector in the country. The sample
survey method is used to obtain the population. The researchers used a sampling frame of sixty four
managers and staff in these banks to obtain required data for the study. The population composed of
marketing managers, information system analysts and staffs of marketing information system
departments of the banks in the study. All these represent the unit of analysis.
194 questionnaires were distributed to a sample study. Of the (189) questionnaires returned, (3)
were rejected due to incomplete responses and (186) responses (95.8 percent response rate) were used
for data analyses.
41
Anas Y. Alhadid, Hasan Ali Al-Zu’bi and Samer Barakat
It should be noted that every questionnaire was personally handed and instructions were given to each
employee before completing the questionnaire. In terms of demographic findings, (67%) of
respondents were males, and the remaining (33%) were females. In terms of the age group of
respondents, it is interested to note that (8%) of them are less than (25) years, whereas (26%) fell into
the (25-34) age group, whereas (37%) fell into the (35-44) age group, only (29%) are above this group.
Also, from educational levels point of view the sample who have a majority (80%) were university
certificate holders, and some those (14%) of these, have Higher Education degree. In addition, for the
experience years of respondents, (12%) of them have (5) years or less, whereas (20%) have (6 - 10)
Experience years, whereas (45%) have (11 - 15) years of experience, only (23%) have more. See table
(1).
Table 1:
Demographic Characteristics of respondents (n=186)
Characteristics
Gender:
Male
Female
Age:
Less than 25 years
25 –34
35 – 44
45 years and more
Educational Level:
Diploma or less
Bachelors
Higher Education
Experience Years:
1–5
6 – 10
11 – 15
16 years and more
Frequency
Percentage
125
61
67%
33%
15
48
69
54
8%
26%
37%
29%
11
149
26
6%
80%
14%
22
37
83
44
12%
20%
45%
23%
8.2. Data Collection Tools
The researcher used a questionnaire to collect data of the study and its variables from the units of the
study. The questionnaire comprised of two parts;
1. The first part contained the general characteristics of the banks and the sample presented in the
population or the units of the study
2. The second part determined the extent to which the competitive advantage in the banking sector
relates to the components of the marketing information system which are; internal records,
marketing research and marketing intelligence.
8.3. Data Sources
In this study, there are two sources of data which are employed by the researcher. These are;
1. Secondary Sources
This was obtained from the relevant documented sources in order to supplement the findings already
obtained from the primary sources. The documented sources concerning the marketing information
system and its application in the banking sector were consulted. These sources included periodicals,
references and literature which supported the findings.
2. Primary Sources
Primary data were collected through questionnaires which were designed for obtaining data from the
units of the study. The data were used to obtain the first hand information. It was collected on the
The Relationship between Marketing Information System and Gaining
Competitive Advantage in the Banking Sector in Jordan
42
general bank characteristics as well as the extent to which competitive advantage in the banking sector
relates to the components of the marketing information system.
8.4. Methods of Data Analysis
The data collected was descriptive and analytical. The researcher had to analyse the variables and test
hypothesis of the study through the following data analysis methods;
1. Descriptive statistics- this was used to describe the characteristics of the individual member in
the population of the study. It included the use of frequency tables, standard deviations, means
and percentages.
2. Correlation – data were analyzed through correlation coefficient where the researcher used it to
correlate the relationship between the dependent and independent variables and the strength of
their relationship (Verbeek, 2008).
8.5. Validity and Reliability
1. Validity represents the ability of the instrument to measure the intended variable of the study
with accuracy. To comply with the requirement the questionnaire has been presented to the
panel of experts in matters of marketing, who approved and ascertained its validity (Verbeek,
2008).
2. Reliability is the extent to which the tool is able to obtain consistent results even if the
measurements are obtained in second time in the similar circumstances. The degree of
reliability is denoted by the use of Cronbach’s Alpha (Verbeek, 2008).
9. Results
9.1. Relationship between Marketing Information System and Competitive Advantages
To test the significant level of the first hypothesis proposed by the researcher, and at the same time achieve
our final objective that been soughed by this study, table (2) presents the means and standard deviations,
and Zero-order correlations among marketing information system and Competitive advantages.
H01-a: Internal records, one of the marketing information system components, are not
statistically related to the competitive advantage in the banking sector.
The results of the statistical analysis and described in Table (2) the existence of a relationship
between the independent variable (Internal records) and the dependent variable (competitive
advantages). Where there is a positive relationship statistically significant at a level significantly less
than (0.05) as shown by Pearson correlation analysis, we notice that the value of the correlation was (r
=0.633**) at a level of significance (0.01), a result lead to the rejection of the null hypothesis and
acceptance of the alternative hypothesis that: There is a relationship between the Internal records and
competitive advantages.
H01-b: Marketing research, the next component of the marketing information system, is not
statistically related to the competitive advantage in the banking sector.
Results indicate statistical analysis to the existence of a relationship between the independent
variable (Marketing research) and the dependent variable (competitive advantages). Where there is a
positive relationship statistically significant at a level significantly less than (0.05) as shown by Pearson
correlation analysis, we notice that the value of the correlation was (r =0.743**) at a level of significance
(0.01), a result lead to the rejection of the null hypothesis and acceptance of the alternative hypothesis
that There is a relationship between the Marketing research and competitive advantages, see table (2).
H01-c: Marketing intelligence as a component of the marketing information system is not
statistically related to the competitive advantage in the banking sector.
43
Anas Y. Alhadid, Hasan Ali Al-Zu’bi and Samer Barakat
Results of the statistical analysis to the existence of a relationship between the independent
variable (Marketing intelligence) and the dependent variable (competitive advantages). Where there is
a positive relationship statistically significant at a level significantly less than (0.05) as shown by
Pearson correlation analysis, we notice that the value of the correlation was (r =0.743**) at a level of
significance (0.01), a result lead to the rejection of the null hypothesis and acceptance of the alternative
hypothesis that There is a relationship between the Marketing intelligence and competitive advantages,
see table (2).
Table 2:
Means, Standard Deviations and Pearson Correlation among the research variables
variables
M
Internal records
3.439
Marketing research
3.387
Marketing intelligence
3.416
Competitive advantages
3.581
**
Correlation is significant at the 0.01 level.
*
Correlation is significant at the 0.05 level.
S.D
0.900
0.781
0.879
0.860
1
1
0.722**
0.743**
0.743**
2
0.722**
1
0.622**
0.623**
3
0.743**
0.622**
1
0.633**
4
0.743**
0.623**
0.633**
1
9.2. Relationship between Employees' Perception of Marketing Information System and their
Personal Traits
To achieve the second objective of this study and at the same time test the hypothesis, data about
employees' background traits were collected.
Traits such as age, gender, educational level, and Experience Years were investigated to see if
there were significant relationship between them and the perception of marketing information system.
Using one-way ANOVA between marketing information system and employees personal traits,
the results showed that there was only two significant relationship exists between age, educational
Level and of respondents and their perceptions of marketing information system. But there is no
significant relationship between gender, Experience Years and of respondents and their perceptions of
marketing information system, As well as for educational level.
Figures in table (3) showed that the significant level between these two variables was (0.00)
which is significant at (0.05).
Table 3:
One-way ANOVA between Marketing Information System and Employees' Personal Traits
Marketing Information System
Age
Sex
Educational Level
Experience Years
*
Correlation is significant at the 0.05 level.
F
6.946
2.119
8.288
1.660
Sig.
0.000
0.096
0.000
0.174
10. Conclusions
This study aimed at identifying the role of the marketing information system in the banking sector in
order to achieve competitive advantage. The results of the analysis showed that there is a relationship
between the Internal Records, Marketing Research, and Marketing Intelligence and achieving
competitive advantage in the Jordan Baking Sector. The results also indicated that only two traits; age
and educational Level, had a relationship with marketing information system. However there was no
significant relationship between gender, Experience Years and of respondents and their perceptions of
marketing information system. The results implies that bank managers at Jordanian Banks must
consider utilizing Marketing Information Systems in order to achieve competitive advantage.
The Relationship between Marketing Information System and Gaining
Competitive Advantage in the Banking Sector in Jordan
44
Acknowledgement
The authors are grateful to the Applied Science Private University, Amman, Jordan, for the full
financial support granted to this research project (Grant No. DRGS-2014-2015-48).
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