Dissertation 1

MSc.
DISSERTATION
the impact of digital marketing on business profitability: a case study of McDonald’s
SUBMITTED BY: RIMSHA KHALID
BANNER ID: B01063355
PROGRAMME: MSC. INTERNATIONAL MANAGEMENT
SCHOOL OF BUSINESS AND CREATIVE INDUSTRIES
SUBMITTED IN: AUGUST 2023

School of Business and Creative Industries
MSc International Management
DISSERTATION DECLARATION
Title: The Impact of Digital Marketing on Business Profitability - The Case Study of
McDonald’s
Student’s Name: Rimsha Khalid
Banner ID: B01063355
Supervisor: Ephias Ruhode
Declaration
I hereby declare that:
✓ I have read and understood Regulations 3.49—3.55 of Chapter 3 of the Regulatory

Framework of the University of the West of Scotland regarding cheating and plagiarism.
✓ This assessment is the result of my work, except for those parts that are
explicitly referenced, and the contribution of others is indicated.
✓ No material presented in this assessment has been written, wholly or in parts, by any
other person(s);
✓ This assessment has not been submitted — partially or in full — to support the
completion of assessment(s) on any other module, regardless of the previous or current
academic year (self-plagiarism).
Date: August 2023
The work reported here did require ethics approval.
The work reported here was approved by the School of Business and Enterprise Ethics
Committee (Application no. 21534)

Student’s Signature: Rimsha Khalid
Acknowledgment
With immense gratitude, I acknowledge the support and help of my supervisor
Ephias Ruhode for the valuable direction and guidelines. Without his timely
counsel and ongoing source of inspiration throughout this process, I could not
have embarked on this path.
In addition, I would also like to thank my friends and family members who
supported me during this journey. I never would have finished my adventure
without their support and inspiration.
Finally, I would like to express my gratitude to all the study participants. Their
willingness to share their experiences and thoughts was so helpful to my
research. I appreciate their time and contribution.

ABSTRACT
In the digital age, the efficacy of marketing strategies in enhancing business profitability
is a critical pursuit. This comprehensive dissertation investigates the profound impact of
digital marketing strategies on business profitability through the lens of McDonald’s, a
global leader. Employing an inductive approach, encompassing surveys and theoretical
frameworks, the study explores the interplay between digital strategies and financial
outcomes. It establishes a robust correlation between customer satisfaction and brand
advocacy, validating the social exchange theory. The empirical evidence underscores
the importance of contextually relevant messaging and multi-channel consistency.
These findings are substantiated by a comparative analysis with existing literature,
solidifying the research’s alignment with established marketing principles. The research
bolsters practical implications, accentuating a customer-centric approach, data-driven
personalization, and perpetual innovation in digital campaigns. Additionally,
recommendations advocate ethical data practices, continuous adaptation, and
employee engagement. The study extends its contributions to theoretical implications,
highlighting the significance of multi-channel motions. Future research directions
encompass longitudinal studies, cross-cultural analyses, and the exploration of
emerging technologies. Overall, this dissertation enriches the discourse on digital
marketing and business profitability, presenting a holistic view of its influence on
contemporary commerce. It serves as a guide for marketers, managers, and businesses
navigating the dynamic digital landscape, offering insights that transcend theory and
drive tangible impact on customer engagement, brand loyalty, and sustained financial
growth.
Table of Contents
CHAPTER 1: INTRODUCTION........................................................................................1
1.1 Background and Context.................................................................................... 1
1.2 Problem Statement.............................................................................................2
1.3 Research Questions........................................................................................... 3
1.4 Research Aim and Objectives.............................................................................3
1.5 Thesis Structure..................................................................................................4
CHAPTER 2: LITERATURE REVIEW..............................................................................5
2.1 Introduction to Digital Marketing..........................................................................5
2.1.1 Evolution of Digital Marketing.......................................................................6
2.1.2 Digital Marketing Channels and Strategies..................................................7
2.1.3 Theoretical Framework in Digital Marketing.................................................9
2.2 The Impact of Digital Marketing on Business Profitability.................................12
2.2.1 Digital Marketing Metrics and KPIs.............................................................13
2.2.2 The Relationship between Digital Marketing and Business Profitability.....14
2.2.3 Success Factors in Digital Marketing for Business Profitability..................14
2.3 Case Study: McDonald’s Digital Marketing Initiatives.......................................16
2.3.1 McDonald’s Digital Marketing Strategies....................................................16

2.3.2 Case Studies and Previous Research on McDonald’s Digital Marketing....18
2.4 Summary and Gap Identification.......................................................................19
CHAPTER 3: RESEARCH METHODOLOGY................................................................19
3.1 Introduction....................................................................................................... 19
3.2 Research Philosophy........................................................................................20
3.3 Research Approach.......................................................................................... 21
3.4 Research Design.............................................................................................. 22
3.5 Data Collection Methods...................................................................................23
3.5.1 Surveys...................................................................................................... 23
3.6 Sample Selection..............................................................................................24
3.7 Data Analysis Techniques.................................................................................25
3.8 Ethical Considerations......................................................................................26
3.9 Limitations.........................................................................................................28
CHAPTER 4: RESULTS AND FINDINGS......................................................................29
4.1 Introduction....................................................................................................... 29
4.2 Research Questions and Corresponding Survey Questions.............................30
4.3 Demographic and Personal Data......................................................................31
4.4 Findings For Research Question 1...................................................................33
4.5 Finding for Research Question 2......................................................................37
4.6 Findings For Research Question 3...................................................................41

4.7 Findings for Research Question 4.....................................................................47
4.8 Additional Feedback......................................................................................... 50
4.9 Conclusion........................................................................................................ 52
CHAPTER 5: DISCUSSION AND INTERPRETATION...................................................53
5.1 Introduction....................................................................................................... 53
5.2 Empirical Evidence on Digital Marketing Strategies..........................................54
5.3 Comparison with Existing Literature..................................................................55
5.4 Research Results Addressing Research Objectives.........................................56
5.4.1 Research Objective 1.................................................................................57
5.5 Theoretical Implications....................................................................................59
5.6 Practical Implications........................................................................................61
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...........................................64
6.1 Conclusion........................................................................................................ 64
6.2 Recommendations............................................................................................65
6.3 Future Research Directions..............................................................................67
REFERENCES...............................................................................................................70
APPENDICES................................................................................................................ 76
1. Appendix A: Participant Information Sheet..........................................................76
2 Appendix B: Participant Consent Form...............................................................80
3 Appendix C: Approval Letter................................................................................81
4 Appendix D: Survey Questionnaire.....................................................................82

CHAPTER 1: INTRODUCTION
1.1 Background and Context
In today’s rapidly evolving digital landscape, businesses across industries are
increasingly relying on digital marketing strategies to connect with their target audience,
promote their products or services, and drive business growth (Collins, 2023). The
advent of the internet, social media platforms, mobile technologies, and other digital
tools have created new opportunities and challenges for organizations seeking to
optimize their marketing efforts. One such industry that has embraced digital marketing
practices is the fast-food industry, where competition is fierce, and reaching customers
effectively is crucial (Pizło, 2007).
McDonald's is one of the most iconic and globally recognized brands in the fast-food
industry. With its extensive network of restaurants and vast customer base, McDonald’s
has long been at the forefront of implementing innovative marketing strategies to
maintain its market leadership and drive profitability. Over the years, McDonald’s has
actively leveraged digital marketing channels to engage with its customers and enhance
its brand image (Mathews, 2022). From social media campaigns and mobile
applications to personalized offers and targeted advertisements, McDonald’s has
demonstrated a commitment to staying relevant in the digital age (Econsultancy, 2019).
Understanding the impact of digital marketing on business profitability is significant for
both researchers and practitioners. While previous studies have explored the
relationship between digital marketing and business performance, there is a need for
more empirical evidence, especially in the context of specific industry case studies. This
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dissertation seeks to fill the gap by investigating the impact of digital marketing on
business profitability focusing on the case study of McDonald’s.
The research findings will contribute to the existing literature on the impact of digital
marketing on business profitability, particularly in the context of the fast-food industry.
The case study of McDonald’s will provide insights and practical recommendations for
other businesses seeking to optimize their digital marketing strategies to drive
profitability. Moreover, the study will demonstrate the importance of leveraging digital
marketing channels to enhance business performance and competitiveness in the
digital age.
1.2 Problem Statement
The lack of comprehensive empirical evidence on the impact of digital marketing
strategies on business profitability in the fast-food industry, specifically in the case of
McDonald’s hinders companies’ ability to optimize their digital marketing efforts and
achieve sustainable financial success. Addressing this problem is crucial not only for
academic researchers seeking to advance knowledge in the field of digital marketing but
also for industry practitioners aiming to maximize their business profitability. By
conducting a detailed examination of McDonald’s digital marketing strategies and their
impact on key financial indicators, this research aims to fill the existing gap in the
literature and provide actionable insights and recommendations for companies in the
fast-food industry. By analyzing the effectiveness of digital marketing strategies and
identifying the most impactful approaches, this research will contribute to enhancing the
understanding of the relationship between digital marketing and business profitability.
The findings will enable industry practitioners to make informed decisions regarding
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their digital marketing investments, ultimately driving financial performance and
ensuring sustainable growth in the competitive fast-food industry.
1.3 Research Questions
The research questions are the reflection of the research aims and objectives of the
research. In the following research questions, the research attempts to generalize how
the research will be conducted.
1. What are the digital marketing strategies employed by McDonald’s?
2. How do McDonald’s financial performance and profitability compare before and
after the implementation of digital marketing initiatives?
3. What is the relationship between McDonald’s digital marketing efforts and
business profitability?
4. What are the key factors contributing to the success of its digital marketing
campaigns?
These research questions are formulated to explore the impact of digital marketing on
business profitability, specifically focusing on the case study of McDonald’s.
1.4 Research Aim and Objectives
This research aims to investigate the impact of digital marketing on the profitability of
McDonald’s. By conducting a comprehensive analysis of the digital marketing strategies
employed by McDonald’s and their effects on business performance, this study aims to
provide valuable insights into the role of digital marketing in driving profitability for a
global fast-food chain.
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The primary objective of this research is to examine the impact of digital marketing on
business profitability, considering the case study of McDonald’s. To achieve this
overreaching objective, the following specific research objectives have been identified:
1. To examine the digital marketing strategies implemented by McDonald’s.
2. To assess the financial performance and profitability of McDonald’s.
3. To analyze the correlation between digital marketing efforts and business
profitability.
4. To identify the key factors contributing to the success of McDonald’s digital
marketing campaigns.
These research objectives will guide the study’s methodology, data collection, and
analysis, ultimately contributing to a comprehensive understanding of the impact of
digital marketing on business profitability.
1.5 Thesis Structure
With the help of different chapters, the whole paper will be completed. In Chapter 1, the
research background aims, objectives, and questions will be addressed. In the next
chapter, a critical literature review will be conducted. In Chapter 3, the research
methodology will be described, whereby the research philosophy, design, methods, and
data collection and analysis methods will be discussed. Ethics and limitations will also
be addressed in the same chapter. In Chapter 4, results and findings will be discussed
and the data will be contextualized while pointing out any weaknesses in the research
done. In Chapter 5, the data will be critically analyzed and discussed. In the last
chapter, overall findings will be extracted, and necessary recommendations will be
made.
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CHAPTER 2: LITERATURE REVIEW
1.6 Introduction to Digital Marketing
Digital marketing has emerged as a powerful and dynamic field within the broader realm
of marketing. It encompasses various strategies and tactics that leverage digital
technologies and channels to reach, engage, and influence target audiences. It refers to
the practice of promoting products, services, or brands using various online channels
and technologies (Otero & Rolán, 2016). It involves leveraging digital platforms such as
search engines, social media, email, websites, mobile apps, and other digital channels
to reach and engage with a target audience.
The primary goal of digital marketing is to drive brand awareness, generate leads,
increase website traffic, and ultimately convert those leads into customers. It utilizes a
combination of strategies and tactics to achieve these objectives, employing a mix of
creativity, analytics, and technology. In today’s digital age, businesses of all sizes and
industries are embracing digital marketing as an essential component of their overall
marketing efforts (Otero & Rolán, 2016). Digital marketing involves the use of electronic
devices, such as computers, smartphones, tablets, and the Internet, to deliver
promotional messages, gather customer insights, and facilitate transactions. It
encompasses a wide range of activities including search engine optimization, social
media marketing, email marketing, mobile advertising, and influencer marketing.
Digital marketing offers several advantages over traditional marketing methods. It allows
for precise targeting, enabling businesses to reach specific demographics, interests, or
geographic locations (Veleva & Tsvetanova, 2020). It also provides the ability to
measure and track campaign performance in real-time, allowing marketers to make
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data-driven decisions and optimize their strategies accordingly. It continues to evolve
rapidly as new technologies and platforms emerge. It allows businesses of all sizes to
reach a global audience, connect with customers, and drive growth in the digital age.
1.1.1 Evolution of Digital Marketing
The evolution of digital marketing can be traced back to the rapid advancement in
technology and the widespread adoption of the Internet. With the rise of the World Wide
Web in the 1990s, marketers began to recognize the immense potential of online
platforms for reaching a global audience and engaging with customers in new and
innovative ways. Over the years, the field has witnessed significant transformations,
driven by technological advancements, changing consumer behavior, and the
emergence of new digital channels and platforms (Dsouza & Panakaje, 2023).
Digital marketing has become an integral part of organizations’ marketing strategies
worldwide. It offers unique advantages compared to traditional marketing approaches,
including cost-effectiveness, real-time analytics, precise targeting capabilities, and the
ability to personalize messages for individual customers. As a result, businesses across
industries are allocating substantial resources to digital marketing initiatives to stay
competitive, increase brand visibility, drive customer engagement, and ultimately
enhance their bottom line (Dsouza & Panakaje, 2023). Understanding the principles,
strategies, and effectiveness of digital marketing is crucial for businesses seeking to
harness their potential and achieve business objectives.
The evolution of digital marketing continues to unfold as technology advances and
consumer preferences evolve. Marketers need to stay updated, adapt to new trends,
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and leverage emerging technologies to deliver effective and relevant experiences to
their target audiences.
1.1.2 Digital Marketing Channels and Strategies
Digital marketing encompasses a wide array of channels and strategies that
organizations employ to engage with their target audience and promote their products
or services (Saleem & Siddik, 2021). This section will discuss some of the key digital
marketing channels and strategies according to Figure 1 below.
Figure 1: Digital Marketing Channels
Search Engine Optimization (SEO): It is the process of optimizing a website’s content,
structure, and technical aspects to improve its visibility and organic search rankings on
search engine result pages (Saleem & Siddik, 2021). By employing SEO strategies,
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businesses can enhance their online presence, drive organic traffic to their websites,
and increase their chances of being discovered by potential customers.
 Social Media Marketing: Social media platforms have revolutionized the way
businesses interact with their audience. Platforms like Facebook, Twitter,
Instagram, and LinkedIn provide opportunities for companies to engage with
customers, share content, build brand awareness, and drive website traffic
(Saleem & Siddik, 2021)c. Social media marketing involves creating and sharing
compelling content, running targeted advertisements, and fostering meaningful
interactions with followers to promote brand loyalty and advocacy.
 Content Marketing: Content marketing focuses on creating and distributing
valuable and relevant content to attract and retain a clearly defined target
audience. It involves the creation of blog posts, articles, videos, infographics, and
other forms of content that provide value to users while subtly promoting the
brand (Saleem & Siddik, 2021). Content marketing aims to establish the
organization as a trusted industry authority, drive website traffic, and generate
leads.
 Email Marketing: Email Marketing involves sending targeted and personalized
emails to a list of subscribers who have opted in to receive communication from
the business. It is an effective channel for building customer relationships,
promoting products or services, and driving conversions (Saleem & Siddik,
2021). Email marketing strategies include creating engaging newsletters,
automated drip campaigns, and personalized email sequences tailored to
subscribers' specific needs and interests.
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 Mobile Marketing: With the widespread use of smartphones, mobile marketing
has gained significant importance. This strategy involves reaching and engaging
with customers through mobile devices like smartphones and tablets (Saleem &
Siddik, 2021). Mobile marketing tactics include mobile app advertising, mobile-
friendly website design, location-based marketing, and SMS marketing.
 Influencer Marketing: Influencer marketing leverages the popularity and
influence of individuals with large social media followings to promote products or
services. Collaborating with influencers can help businesses reach their target
audience, build credibility, and drive conversions (Saleem & Siddik, 2021).
Influencer marketing strategies involve identifying relevant influencers,
establishing partnerships, and creating sponsored content that aligns with the
brand’s values and objectives.
These are just a few examples of digital marketing channels and strategies that
organizations can utilize to enhance their online presence, engage with their target
audience, and drive business profitability. By examining these channels and strategies,
this research aims to evaluate their effectiveness in the case of McDonald’s and explore
how they contribute to the company’s overall profitability.
1.1.3 Theoretical Framework in Digital Marketing
Theoretical framework in digital marketing provides a conceptual foundation for
understanding and analyzing the dynamics and effectiveness of various digital
marketing strategies. It offers insights into consumer behavior, decision-making
processes, and the impact of digital marketing on business outcomes.
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In the context of this study on the impact of digital marketing on business profitability,
the social exchange theory provides a valuable framework for understanding the
dynamics of customer interactions and their influence on business outcomes. The
theory suggests that individuals engage in social relationships and interactions based
on the exchange of resources, where they seek to maximize rewards and minimize
costs (Cook & Rice, 2006). In the case of McDonald’s and its digital marketing
initiatives, the social exchange theory can be applied to understand how customers
perceive the benefits and costs associated with engaging with the company’s digital
marketing efforts. Customers receive various rewards from these interactions, such as
personalized offers, discounts, convenience, and entertaining content. These rewards
contribute to customer satisfaction and loyalty, ultimately influencing their behavior and
financial outcomes for McDonald’s.
Figure 2: Social Exchange Theory
According to social exchange theory, customers evaluate the rewards they receive from
engaging with digital marketing campaigns about the perceived costs. Costs may
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include time and effort spent on interacting with digital content, the privacy concerns
associated with sharing personal information, or the perceived risks of engaging with
digital platforms. Customers weigh the benefits against the costs to determine the value
of their engagement. When the customers perceive the rewards to outweigh the costs,
they are more likely to engage in positive behaviors that benefit the business, such as
increased purchase frequency, higher spending, positive word-of-mouth, or advocacy.
Conversely, if the customers perceive the costs outweigh the rewards, they may
disengage or exhibit negative behaviors, leading to a potential negative impact on
business profitability (Cook & Rice, 2006).
Moreover, this theory highlights the importance of fostering mutually beneficial
relationships between McDonald’s and its customers through digital marketing. By
understanding the reciprocal nature of the customer-company exchange, McDonald’s
can tailor its digital marketing strategies to enhance customer experiences, increase
perceived rewards, and minimize costs. This, in turn, can lead to improved business
profitability and sustained competitive advantage in the digital landscape.
In summary, by utilizing social exchange theory, this dissertation aims to examine the
dynamics of customer interactions in the context of McDonald’s digital marketing
initiatives. It emphasizes the importance of understanding customers’ perceptions of
rewards and costs in their engagement with digital marketing efforts and how these
perceptions impact business profitability. It seeks to identify the factors that influence
customers’ evaluation of these exchanges and their subsequent impact on profitability.
The findings will provide insights into the effectiveness of different digital marketing
initiatives and the drivers of customer engagement and loyalty.
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1.7 The Impact of Digital Marketing on Business Profitability
In this section, the impact of digital marketing on business profitability will be explored
focusing on key aspects such as digital marketing metrics, the relationship between
digital marketing and profitability, and the success factors that contribute to the
effectiveness of digital marketing strategies.
Digital marketing has revolutionized the way businesses promote their products and
services, interact with customers, and drive revenue. It allows businesses to precisely
target their audience based on various demographic, psychographic, and behavioral
factors. This targeting capability helps in reaching the right customers who are more
likely to be interested in the products or services being offered. By focusing marketing
efforts on the right audience, businesses can optimize their resources, minimize
wastage, and improve conversion rates, leading to increased profitability.
Figure 3: The Benefits of Digital Marketing
Compared to traditional marketing methods, digital marketing is often more cost-
effective. Online advertising platforms allow businesses to set budgets, control costs,
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and pay only when desired actions are achieved. Digital marketing offers various tools
and techniques to engage and convert potential customers (Durai & King, 2015). The
ability to provide tailored and timely information to prospects increases the likelihood of
converting them into paying customers, thus boosting profitability.
One of the key advantages of digital marketing according to Figure 3 is the ability to
track and measure campaign performance in real time. Businesses can analyze various
metrics, such as website traffic, click-through rates, and conversion rates to evaluate
the effectiveness of their marketing efforts. This data-driven approach enables
businesses to identify what works and what doesn’t. Digital marketing allows
businesses to expand their reach beyond local or regional boundaries to increase sales,
volume, revenue, and overall profitability (Durai & King, 2015).
In today’s digital age, businesses that effectively leverage digital marketing strategies
gain a competitive edge. By staying ahead of the curve and adopting innovative digital
marketing techniques, businesses can attract and retain customers, differentiate
themselves from competitors, and position themselves as industry leaders. It is
important to note that the impact of digital marketing on business profitability can vary
depending on the industry, target market, and the specific strategies implemented.
However, overall, digital marketing has proven to be a powerful tool for enhancing
profitability by driving customer acquisition, retention, and revenue growth.
1.7.1 Digital Marketing Metrics and KPIs
Digital marketing offers a range of metrics and key performance indicators (KPIs) that
allow businesses to measure and evaluate the effectiveness of their digital marketing
efforts. They provide insights into various aspects of campaign performance and help
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marketers make data-driven decisions. Some standard digital marketing metrics include
website traffic, conversion rate, click-through rate (CTR), cost per acquisition (CPA),
return on investment (ROI), and customer lifetime value (CLV). These metrics provide
valuable insights into the performance and profitability of digital marketing campaigns
and help businesses make data-driven decisions to optimize their strategies (Singh, et
al., 2019). It is important to select metrics and KPIs that align with specific business
objectives and industry goals. By regularly monitoring and analyzing these metrics,
marketers can identify areas of improvement, optimize campaigns, and make informed
decisions to drive better results in their digital marketing efforts.
1.7.2 The Relationship between Digital Marketing and Business Profitability
Digital marketing has a direct impact on business profitability. It enables them to reach a
wider audience, target specific customer segments, and engage with customers at
various touchpoints along their journey. By utilizing digital marketing channels and
strategies effectively, businesses can generate leads, increase brand awareness, drive
sales, and ultimately enhance their profitability. Moreover, digital marketing allows for
better tracking and analysis of marketing efforts, enabling businesses to allocate
resources more efficiently and optimize their marketing spend for maximum return.
1.7.3 Success Factors in Digital Marketing for Business Profitability
Several success factors contribute to the effectiveness of digital marketing strategies
and their impact on business profitability. These factors include:
 Targeted Audience Engagement: The ability to identify and engage with the
right target audience is crucial for digital marketing success. By understanding
customer needs, preferences, and behaviors, businesses can tailor their digital
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marketing messages and campaigns to resonate with their customers, resulting
in higher engagement and conversion rates (Forbes, 2015).
 Personalization and Customization: Digital marketing allows for personalized
and customized experiences, which can significantly impact profitability
(Chandra, et al., 2022). By leveraging data and technology, businesses can
deliver personalized content, recommendations, and offers to individual
customers, enhancing their satisfaction, loyalty, and likelihood of making repeat
purchases.
 Data-Driven Decision Making: Digital marketing provides access to vast
amounts of data and analytics, allowing businesses to make informed decisions
based on data insights (Ivanovic, 2022). Businesses can optimize their digital
marketing strategies, allocate resources effectively, and improve overall
profitability by analyzing customer behavior, campaign performance, and market
trends.
 Integration and Omnichannel Approach: The integration of digital marketing
channels with traditional marketing channels and ensuring a seamless
omnichannel experience for customers is essential (Lee, 2020). By providing
consistent messaging, branding, and customer experience across multiple
channels, businesses can enhance customer engagement, and loyalty, and
ultimately drive profitability.
 Continuous Testing and Optimization: Digital marketing allows for continuous
testing and optimization of strategies. By conducting A/B testing, and
experimenting with different messaging, creative elements, and targeting
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strategies, businesses can identify what works best for their target audience and
refine their campaigns to maximize profitability (Batchelor, 2020).
By considering these success factors and implementing them strategically, businesses
can optimize their digital marketing efforts and increase the likelihood of achieving
profitability in the online space. Adapting and evolving your strategies based on market
dynamics, customer preferences, and emerging digital trends is important.
1.8 Case Study: McDonald’s Digital Marketing Initiatives
McDonald’s, a global fast-food chain, has recognized the importance of digital
marketing in connecting with its customers, increasing brand visibility, and ultimately
driving its business profitability. The company has implemented a range of digital
marketing strategies to engage its targeted customers effectively and generate positive
outcomes.
1.8.1 McDonald’s Digital Marketing Strategies
McDonald’s has strategically embraced digital marketing as part of its overall marketing
strategy. The company has developed and implemented various initiatives that leverage
digital channels and platforms to reach and engage with its customers. Some key
elements of McDonald’s digital marketing strategies include:
 Mobile Apps and Ordering Platforms: McDonald’s has invested in the
development of mobile applications and online ordering platforms (Littman,
2019). These tools allow customers to conveniently place their orders, customize
their meals, and locate nearby restaurants. By providing a seamless user-friendly
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mobile experience, McDonald’s enhances convenience for its customers and
increases the likelihood of repeat purchases.
 Social Media Presence: McDonald’s maintains a strong presence on popular
social media platforms including Facebook, Twitter, Instagram, and YouTube. The
company uses these platforms to engage with its customers, share product
information, run promotional campaigns, and respond to customer inquiries
(ICMR (IBS Center for Management Research), 2014). McDonald’s social media
presence helps to build brand awareness, foster customer engagement, and
create a sense of community around its products and services.
 Digital Advertising Campaigns: McDonald’s employs digital advertising
campaigns to reach its target audience effectively. Through display ads, search
engine marketing, video ads, and other digital advertising formats, McDonald’s
promotes its menu offerings, limited-time promotions, and brand initiatives
(Naillon, 2023). By leveraging data-driven targeting and optimizing ad
placements, McDonald’s aims to maximize the impact of its digital advertising
efforts and drive customer acquisition and sales.
 Influencer Collaborations: McDonald’s recognizes the power of influencer
marketing in reaching a wider audience and building brand credibility. The
company partners with influencers, both globally and locally, to create engaging
and authentic content that resonates with their followers. Collaborating with
influencers helps McDonald’s amplify its brand message, increase brand visibility,
and tap into new customer segments (Suryaputri, et al., 2021).
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These digital marketing initiatives by McDonald’s showcase the company’s commitment
to leveraging technology and engaging with customers in innovative ways. By
embracing digital channels, personalization, and customer-centric strategies,
McDonald’s aims to enhance customer experiences, drive brand loyalty, and ultimately
increase profitability in the highly competitive fast-food industry.
1.8.2 Case Studies and Previous Research on McDonald’s Digital Marketing
Numerous case studies and previous research have explored McDonald’s digital
marketing initiatives and their impact on the company’s performance. these studies
have examined aspects such as the effectiveness of mobile apps in driving customer
engagement and sales, the role of social media campaigns in enhancing brand
perception and customer loyalty, and the influence of digital advertising on consumer
behavior and purchase decisions.
For instance, an article published in The Journal of Asian Finance, Economics, and
Business explored McDonald’s social media strategies and their impact on brand
perception among millennials (Puspaningrum, 2020). The findings revealed that
McDonald’s successful use of social media platforms increased brand engagement,
generated positive word-of-mouth, and improved brand perception among the target
audience.
Another article stated the effectiveness of digital media advertising campaigns
implemented by McDonald’s in driving sales (Barsky, 2022). The research analyzed the
impact of display ads, search engine marketing, and video ads on consumer behavior,
including click-through rates, conversion rates, and sales. It shows that well-executed
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digital advertising campaigns positively influenced consumer purchasing decisions,
resulting in increased sales and revenue for McDonald’s.
Research indicated the impact of McDonald’s mobile app on customer engagement and
loyalty (NACS, 2022). The study examined how the app features, such as mobile
ordering, customization options, and loyalty rewards, contributed to increased customer
engagement and loyalty. It showed that the mobile app significantly improved
convenience for customers enhanced their overall experience, and resulted in higher
repeat purchases, ultimately driving business profitability.
This research provides valuable insights into McDonald’s digital marketing initiatives
and their influence on business profitability. By analyzing and building upon previous
research, this dissertation aims to contribute to the existing body of knowledge by
conducting a comprehensive investigation into the impact of digital marketing on
McDonald’s profitability, utilizing primary data collection methods and surveys.
1.9 Summary and Gap Identification
In summary, McDonald’s has implemented various digital marketing strategies, including
mobile apps, social media campaigns, digital advertising, and influencer collaboration,
to enhance brand visibility, engage with customers, and drive business profitability.
While there have been previous case studies and research papers examining
McDonald’s digital marketing initiatives, there is still a gap in understanding the specific
impact of these strategies on the company’s profitability. This dissertation seeks to
bridge the gap by conducting an in-depth analysis, utilizing primary data collection
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methods, and exploring the relationship between digital marketing and business
profitability in the context of McDonald’s.
CHAPTER 3: RESEARCH METHODOLOGY
1.10 Introduction
The research methodology chapter provides a comprehensive overview of the methods
and approaches employed in the study to investigate the impact of digital marketing on
business profitability, with a specific focus on the case study of McDonald’s. This
chapter outlines the rationale behind the chosen research philosophy, approach, design,
and data collection methods. It also highlights the steps taken to ensure ethical
considerations, addresses the limitations of the study, and explains the data analysis
techniques employed. By outlining the research methodology, this chapter establishes
the framework for collecting and analyzing data to answer the research questions and
achieve the research objectives.
1.11 Research Philosophy
Research philosophy is the fundamental belief system or worldview that guides the
researcher’s understanding of the nature of knowledge, reality, and the researcher’s role
in the research process. It shapes the researcher’s assumptions, beliefs, and values,
influencing their choice of research methods, data collection techniques, and data
analysis approaches. For this study, the research philosophy adopted was
interpretivism. Interpretivism is rooted in the understanding that social phenomena are
complex and subjective, shaped by the meanings and interpretations individuals ascribe
to them. It recognizes that individuals construct their realities and that these
constructions are influenced by various social, cultural, and contextual factors.
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Interpretivism acknowledges that human behavior cannot be reduced to mere
quantifiable data points, but rather involves understanding the subjective experiences,
perceptions, and meanings that individuals attach to their actions and interactions. It
emphasizes the importance of context, culture, and personal interpretations in shaping
human behavior and social phenomena (Alharahsheh & Pius, 2020). The interpretivist
research philosophy acknowledges that knowledge is socially constructed and context-
dependent. It seeks to uncover the multiple meanings, subjective interpretations, and
lived experiences of individuals, recognizing that these factors play a crucial role in
shaping their attitudes, behaviors, and decision-making processes.
In the context of this study, interpretivism aligns to explore and understand the impact of
digital marketing on business profitability from the perspectives of individuals who have
interacted with McDonald’s digital marketing initiatives. By adopting an interpretivist
stance, the study recognized that individuals have diverse interpretations and
experiences regarding digital marketing and its influence on their perceptions and
behaviors. By adopting interpretivist research philosophy, this study aimed to better
understand the underlying factors, motivations, and mechanisms through which digital
marketing influences business profitability. It recognized the importance of subjective
interpretations, individual experiences, and the sociocultural context in shaping the
impact of digital marketing on business outcomes.
1.12 Research Approach
Research approaches refer to the systematic and structured ways that researchers use
to conduct research, and they differ in terms of their underlying logic and methods of
inquiry (Hassan, 2022). The research approach employed in this dissertation was
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primarily inductive, aiming to explore and generate new insights regarding the impact of
digital marketing on business profitability. The study seeks to uncover patterns, themes,
and relationships in the data through an in-depth analysis of survey responses.
The inductive approach allows for a more exploratory and data-driven investigation,
enabling the researcher to develop new theories or frameworks that emerge from the
empirical evidence. By examining survey data and analyzing secondary sources, the
study aimed to identify and understand the factors and mechanisms through which
digital marketing influences business profitability (Woiceshyn & Daellenbach, 2018).
This approach acknowledges the complexity and multidimensionality of the research
topic, providing a deeper understanding of the impact of digital marketing on business
profitability beyond the constraints of predefined hypotheses.
By employing an inductive research approach, this dissertation aimed to contribute to
the existing knowledge and generate new insights in the field of digital marketing and
business profitability. The inductive reasoning process uncovered novel perspectives,
shed light on potential causal relationships, and inform future research directions.
1.13 Research Design
Research design stands for planning the methods to be adopted for collecting the
relevant data and the techniques to be used in the analysis (Akhtar, 2016). It is the
framework of research methods and techniques chosen by a researcher to conduct a
study. The design allows researchers to sharpen the research methods suitable for the
subject matter and set up their studies for success.
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A survey-based research design was used in this study that involves the administration
of structured questionnaires to collect data from a sample of respondents. Survey
Research is a quantitative research method used for collecting data from a set of
respondents. It has been perhaps one of the most used methodologies in the industry
for several years due to the multiple benefits and advantages that it has when collecting
and analyzing data (Ponto, 2015). This design allows for the collection of large-scale
data efficiently and provides quantitative insights into the impact of digital marketing on
business profitability in the context of McDonald’s. Surveys provide a cost-effective and
efficient method to collect data from large sample sizes and can capture diverse
perspectives and experiences.
By employing a survey-based research design, the study aimed to collect quantitative
data that will enable a comprehensive analysis of the impact of digital marketing on
business profitability. The research design ensured the systematic collection of data,
appropriate sampling strategies, and rigorous data analysis techniques to achieve the
research objectives effectively.
1.14 Data Collection Methods
Data collection methods are techniques and procedures used to gather information for
research purposes. These methods can range from self-reported surveys to more
complex experiments and can involve either quantitative or qualitative approaches to
data gathering (Taherdoost, 2021). This research proposed the use of surveys to gather
primary data for the study. Surveys provide a cost-effective and efficient method to
collect data from large sample sizes and can capture diverse perspectives and
experiences. The survey instrument was designed to capture relevant information
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regarding the impact of digital marketing strategies employed by McDonald’s on its
business profitability. The survey was distributed to a representative sample of
McDonald’s customers, online, to ensure a comprehensive understanding of their
perceptions and experiences. A well-defined and systematic process was followed to
ensure that data collection is conducted smoothly and efficiently.
1.14.1 Surveys
The survey was conducted as the primary method of data collection. A structured
questionnaire was developed to capture participants’ perceptions, behaviors, and
attitudes related to McDonald’s digital marketing initiatives and their impact on business
profitability. The survey was designed to gather quantitative data that can be analyzed
statistically.
The survey instrument included a mix of multiple-choice questions, Likert scale
statements, and open-ended questions to gather responses. It was administered online
to reach a wide range of participants, including McDonald’s customers, employees, and
industry experts. The online survey platform provided a convenient and efficient means
of data, ensuring a large sample size and diverse perspectives.
Data validation checks were implemented in the survey design to ensure data validity
and reliability. The participants were provided with clear instructions and guidance on
how to respond accurately and honestly. Additionally, measures were taken to maintain
the anonymity and confidentiality of the participants, further enhancing the credibility of
the data collected.
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1.15 Sample Selection
The sample selection process in this dissertation aimed to gather insights from
individuals who have direct or indirect experience and knowledge related to McDonald’s
digital marketing initiatives and their impact on business profitability. the following steps
will be undertaken by the sample selection:
1. The target population for this study included individuals from McDonald’s
customers, and employees who possess knowledge and experience in digital
marketing in the fast-food industry.
2. A combination of probability and convenience sampling techniques was
employed. Probability sampling ensured that each member of the target
population has an equal chance of being selected, enhancing the
representativeness of the sample. Convenience sampling was utilized to access
participants who are easily accessible and willing to participate in the study.
3. The sample size was determined based on statistical considerations, including
the desired confidence level and available resources. A large sample size
increases the reliability and generalizability of the findings. The precise sample
size was determined using appropriate sample size calculation methods.
4. Participants were recruited using online platforms.
5. Clear criteria were established to ensure that selected participants meet the
inclusion criteria. For example, participants were required to have experience
with or knowledge of McDonald’s digital marketing initiatives. Exclusion criteria
may include individuals who do not meet the specified criteria or are unable to
provide relevant insights.
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By following these steps, a representative sample was selected. The diverse
perspectives and experiences of the participants contributed to a comprehensive
understanding of the impact of digital marketing on McDonald’s profitability.
1.16 Data Analysis Techniques
Data analysis is the most crucial part of the research. It is the process of performing
certain calculations and evaluations to extract relevant information from the data. Data
analysis summarizes the collected data (Alem, 2020). In this dissertation, the collected
data was subjected to rigorous analysis to uncover insights that address the research
questions. Given the nature of the research design, quantitative data analysis
techniques were employed to process and interpret the survey responses. The analysis
primarily centered around descriptive statistics, providing a clear picture of the
respondents’ perceptions and opinions. The survey results were visually presented
through graphs and charts to enhance the clarity and interpretation of the findings. Bar
charts, pie charts, and line graphs were used to illustrate the distribution of responses
across different survey questions. These graphical representations facilitated the
identification of dominant trends, variations, and outliers.
1.17 Ethical Considerations
Ethical considerations are of utmost importance in any research study, and it is
essential to address them. This research adhered to ethical guidelines, ensuring the
privacy and confidentiality of survey respondents. Informed consent was obtained from
participants, and their participation was voluntary. Any personal data collected was
anonymized and securely stored. The study complies with relevant data protection
regulations and ethical standards. The following ethical considerations were considered:
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1. Before participating in the survey, participants were provided with clear and
comprehensive information about the study, its purposes, the nature of their
involvement, and any potential risks or benefits. Participants were asked to
provide informed consent, indicating their voluntary agreement to participate.
2. Steps were taken to ensure the confidentiality and anonymity of survey
respondents. Personal identifying information was kept separate from survey
responses, and any data collected will be stored securely. Only aggregated and
anonymized data were used for analysis and reporting purposes, ensuring that
individual responses cannot be identified.
3. Data protection and privacy regulations were strictly adhered to throughout the
research process. Appropriate measures were implemented to safeguard
collected data from unauthorized access, loss, or misuse. Any personal
information collected was handled with care and by relevant data protection laws.
4. The research did not involve any interventions or procedures that could
potentially harm the participants. The survey questions were designed sensitively
and respectfully to minimize any potential discomfort or distress. Participants
were given the option to skip or decline to answer any specific questions if they
feel uncomfortable.
5. The researcher conducting the study maintained a high level of professionalism
and ethical conduct. They ensured the accuracy and integrity of the data
collected, maintained objectivity in data analysis and interpretation, and
presented the findings in an unbiased manner. Any conflicts of interest or biases
were disclosed and managed appropriately.
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6. The research proposal and study protocol were submitted to the Ethics
Committee of the University of the West of Scotland for ethical review and
approval. The research was conducted by the approved ethical guidelines and
regulations.
By addressing these ethical considerations, the research upheld the principles of
integrity, respect, and protection of participants’ rights. This contributed to the research
findings while ensuring the well-being and privacy of the survey participants.
1.18 Limitations
This research acknowledged the limitations of using surveys as the primary research
method. Surveys rely on self-reported data, which may be subject to biases and
inaccuracies. The study’s findings may be influenced by the respondents’ perceptions
and recall abilities. Additionally, as this research focused on the case study of
McDonald’s, the generalizability of the findings to other industries or businesses may be
limited. In the context of this dissertation, the following limitations were anticipated:
1. The findings of the study were based on the responses of the survey participants.
Although efforts were made to select a diverse and representative sample, it may
not fully represent the entire population of interest. Therefore, the generalizability
of the findings to the broader population may be limited.
2. The data collected through surveys rely on self-reporting by participants. There is
a possibility of response bias, where participants may provide inaccurate or
biased information. They may also exhibit social desirability bias, where they
respond in a way that is perceived favorably by others. This might affect the
reliability and validity of the findings to some extent.
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3. Conducting a comprehensive study on the impact of digital marketing on
business profitability requires adequate time and resources. However, due to the
limitations of the research scope and time constraints, it may not be possible to
capture all relevant aspects and factors that could influence the relationship. This
might result in a narrower focus or potential omission of certain variables.
4. The study was conducted within a specific timeframe, and various external
factors such as market conditions, competitor strategies, and economic
fluctuations may influence the business profitability of McDonald’s. These factors
were beyond the control of the researcher and might introduce potential
confounding variables that could impact the study.
5. Digital marketing performance is often measured using various metrics such as
website traffic, social media engagement, and click-through rates. However,
these metrics may not fully capture the comprehensive impact of digital
marketing on business profitability. Other contextual factors, customer behavior,
and external influences may also play a role in determining profitability, which
might not be fully accounted for in the metrics used.
6. The study focused on the case study of McDonald’s and its digital marketing
strategies. The specific characteristics, market dynamics, and resources of
McDonald’s might limit the generalizability of the findings to other organizations
or industries. The external validity of the study might be constrained by the
unique context of McDonald’s and its specific business environment.
By acknowledging these limitations, the research aimed to provide a comprehensive
understanding of the impact of digital marketing on business profitability within the given
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scope and context. Awareness of these limitations helped to interpret the findings
appropriately and guide future research addressing the identified gaps.
CHAPTER 4: RESULTS AND FINDINGS
1.19 Introduction
This chapter aims to demonstrate the research findings on the research topic The
impact of digital marketing on business profitability-The case study of McDonald’s. The
data was collected online from McDonald’s customers to understand the impact that
digital marketing has on the business. Every question in the survey questionnaire links
to the research question of this study. The research was successful in collecting data
from more than 50 participants. In this chapter, all the survey questions are graphically
presented and discussed.
1.20 Research Questions and Corresponding Survey Questions
Research Questions Survey Questions
What are the digital 1. Are you familiar with McDonald’s digital
marketing strategies marketing initiatives?
employed by McDonald’s? 2. Which digital marketing channels do you recall
McDonald’s using in their campaigns?
3. How would you rate the effectiveness of
McDonald’s digital marketing strategies in
capturing your attention?
4. In your opinion, what are the key factors
contributing to the success of McDonald’s
digital marketing campaigns?
How do McDonald’s financial 1. Before the implementation of digital marketing
performance and profitability initiatives, how would you rate McDonald’s
compare before and after the
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implementation of digital financial performance and profitability?
marketing initiatives? 2. After the implementation of digital marketing
initiatives, how would you rate McDonald’s
financial performance and profitability?
3. Do you believe there is a correlation between
McDonald’s digital marketing efforts and
financial performance/profitability?
What is the relationship 1. In your opinion, how has McDonald’s digital
between McDonald’s digital marketing influenced its brand perception and
marketing efforts and customer awareness?
business profitability? 2. To what extent do you think McDonald’s digital
marketing efforts have contributed to its overall
business profitability?
3. Have you personally purchased McDonald’s as
a result of their digital marketing efforts?
4. How likely are you to recommend McDonald’s
products/services to others based on its digital
marketing efforts?
What are the key factors 1. In your opinion, what areas of McDonald’s
contributing to the success digital marketing strategies could be improved
of its digital marketing to further enhance business profitability?
campaigns? 2. How important is it for McDonald’s to adapt and
innovate its digital marketing strategies to
remain competitive in the industry?
3. Would you be more likely to engage with
McDonald’s digital marketing campaigns if they
offered personalized promotions or discounts?
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1.21 Demographic and Personal Data
Figure 4: Distribution of participants according to gender
Figure 5: Distribution of participants according to their age
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Figure 6: Distribution of participants according to their occupation
In the demographics section of the survey, respondents were asked to provide
information about their age, gender, and geographic location. The results revealed that
most respondents were between the ages of 18 and 34, with an even split between
male and female respondents. Figure 4 shows that the majority of the respondents were
female (56.6%) and the rest were male (39.6%). Most respondents were aged between
25-34 (52.8%), followed by those aged between 35-44 (18.9%). In terms of occupation,
most respondents were employed (55.8%) and 34% were students. These findings
provide valuable insights into the target audience for McDonald's and can help inform
future marketing efforts. In the following sections, we will explore how McDonald's can
use this information to tailor their marketing campaigns to better reach their target
audience.
1.22 Findings For Research Question 1
In this section (McDonald’s Digital Marketing Strategies), participants were asked four
key questions that were relevant to the digital marketing strategies of McDonald’s and
how they have contributed to the success. By exploring these questions, we will gain a
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better understanding of how McDonald's has successfully leveraged digital marketing
strategies to engage with consumers and build a strong brand.
Figure 7: Question 1
This question was asked to assess participants’ awareness of McDonald’s digital
marketing efforts. The above Figure shows that half of the respondents were somewhat
familiar with McDonald's digital marketing initiatives, while 35% were very familiar. This
suggests that McDonald's digital marketing strategies are relatively well-known and it
has established a strong presence in the digital marketing landscape, but there is still
room for improvement in terms of increasing awareness.
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This question provided information regarding the digital marketing channels used by
McDonald’s. Based on the survey results, it seems that McDonald's has been using a
variety of digital marketing channels to reach their target audience. Social media and
online videos are the most recalled channels, followed by search engines, influencer
marketing, and email marketing. Figure 8 shows that McDonald's has been successful
in using social media to reach their target audience. Almost 79.2% of people think that
social media is a powerful tool for building brand awareness and engaging with
customers, and McDonald's has likely been successful in using social media to promote
new products, share promotions and deals, and respond to customer feedback. Online
videos (32.1%) are also a popular channel for McDonald's, and they can be a great way
to showcase new products or promotions. By creating engaging and informative videos,
McDonald's can capture the attention of potential customers and encourage them to
visit their restaurants.
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Search engine marketing (15.1%), influencer marketing (20.8%), and email marketing
(11.3%) are all important channels for reaching customers and driving sales. This
suggests that McDonald’s employs a multi-channel approach to reach its target
audience effectively, but it should focus more on these strategies to improve its digital
marketing and enhance profitability.
This was asked to gauge the effectiveness of McDonald’s digital marketing strategies in
engaging the target audience. Based on the survey response as shown in Figure 9, it
appears that most respondents found McDonald's digital marketing strategies to be
effective at capturing their attention. Specifically, 41.5% of respondents rated
McDonald's digital marketing strategies as highly effective, while another 39.6% rated
them as moderately effective. This suggests that a large portion of McDonald's target
audience is engaged with their digital marketing efforts.
However, it's important to note that a significant portion of respondents (18.9%) were
neutral in their assessment of McDonald's digital marketing strategies. This may
indicate that McDonald's could improve their marketing efforts to better engage this
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demographic. For example, they could consider using new channels or tactics that are
more appealing to this group, or they could focus on creating more personalized and
targeted marketing campaigns.
Overall, the survey response suggests that McDonald's digital marketing strategies
have been effective at capturing the attention of their target audience, but there is still
room for improvement in terms of engaging all segments of their demographic. By
continuing to innovate and improve their digital marketing efforts, McDonald's can
maintain and grow their customer base over time.
The above question gathered the participants’ perceptions of the factors influencing the
success of McDonald’s digital marketing campaigns. Figure 10 shows that targeted
advertising (56.6%) is the most important factor contributing to the success of
McDonald's digital marketing campaigns. This could be because targeted advertising
allows McDonald's to reach the right audience with the right message, which can lead to
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increased engagement and higher conversion rates. Engaging visuals (40.1%) are also
considered to be important, as they can help to capture the attention of consumers and
convey the brand's message more compellingly. To almost 24.5% of people, compelling
content is also seen as a key factor, as it can help to create a connection between the
brand and the consumer and can lead to increased engagement and sharing of content.
Personalization is also seen as important to almost 15.1% of people, as it can help to
create a more personalized experience for the consumer, which can lead to increased
engagement and loyalty. Finally, the use of influencers is seen as a less important
factor, as only 11.3% of respondents believe that it contributes to the success of
McDonald's digital marketing campaigns. These factors highlight the importance of
relevance and personalization in driving campaign success.
1.23 Finding for Research Question 2
In this section (Financial Performance and Profitability) of the survey, respondents were
asked to share their views on the correlation between McDonald's digital marketing
efforts and its financial performance and profitability. The survey aimed to understand
how people perceive the impact of McDonald's digital marketing initiatives on the
company's financial success. By exploring these perceptions, we can gain insights into
what factors drive consumer behavior and how companies can leverage digital
marketing to achieve their financial goals. In this section, we will examine the survey
results in detail and discuss what they reveal about the relationship between
McDonald's digital marketing efforts and its financial performance and profitability. By
doing so, we will gain a deeper understanding of how consumers perceive the impact of
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digital marketing on a company's financial success and what strategies are most
effective in achieving these goals.
While this survey response provides some insight into how people perceive McDonald's
financial performance and profitability, it should be considered in the context of objective
financial measures and other relevant factors. It shows how customers perceive
McDonald's financial performance and profitability before the implementation of digital
marketing initiatives. Specifically, almost 50.9% of people rated McDonald's financial
performance and profitability as good, 28.3% rated it as average, 18.9% rated it as
excellent, and 1.9% rated it below average.
The results suggest that there was room for improvement in their business outcomes.
While this survey response can be useful in understanding how people perceive
McDonald's financial performance, it's essential to consider the context in which the
survey was conducted, as well as the potential biases and limitations of the survey
methodology. Additionally, subjective opinions and experiences should be considered in
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conjunction with objective financial measures such as revenue growth, profitability
margins, and return on investment to provide a more complete picture of McDonald's
financial health.
Based on this response, most people (52.8%) rated McDonald's financial performance
and profitability as excellent after the implementation of digital marketing initiatives. This
positively impacts the company’s financial performance after embracing digital
marketing initiatives. Additionally, 34% of people rated it as good, and 11.3% rated it as
average. This response suggests that the digital marketing initiatives implemented by
McDonald's were successful in driving revenue growth and profitability. It's possible that
the digital marketing initiatives helped to increase brand awareness, drive customer
engagement, and ultimately increase sales and revenue.
However, it's essential to consider the context in which the survey was conducted, as
well as the potential biases and limitations of the survey methodology. Additionally,
subjective opinions and experiences should be considered in conjunction with objective
financial measures such as revenue growth, profitability margins, and return on

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investment to provide a more complete picture of McDonald's financial health. Overall,
this survey response is a positive sign for McDonald's, as it suggests that the
company's digital marketing initiatives were successful in driving revenue growth and
profitability.
This question helped the researcher to gather participants’ perceptions of the
relationship between digital marketing efforts and financial performance. Figure 13
indicates that most people (43.4%) strongly agree that there is a correlation between
McDonald's digital marketing efforts and its financial performance and profitability.
Additionally, 39.6% of people agree, 9.4% are neutral, and 7.5% disagree.
This survey response is a positive sign for McDonald's, as it suggests that a large
percentage of people believe that the company's digital marketing efforts positively
impact its financial performance and profitability. This is important for McDonald's, as
the company has invested heavily in digital marketing initiatives in recent years to reach
new customers, increase brand awareness, and ultimately drive sales and revenue.
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The fact that most people believe that there is a correlation between McDonald's digital
marketing efforts and its financial performance and profitability suggests that the
company's digital marketing initiatives are perceived as having a positive impact on the
business.
Overall, while this survey response provides some insight into how people perceive the
correlation between McDonald's digital marketing efforts and its financial performance
and profitability, it's important to consider the broader context and potential limitations of
the survey methodology. Nonetheless, the survey response is a positive sign for
McDonald's, as it suggests that the company's digital marketing initiatives are perceived
as having a positive impact on its financial performance and profitability.
1.24 Findings For Research Question 3
This section (Impact on Business Profitability) of the survey is focused on understanding
how McDonald's digital marketing efforts impact its business profitability. The
participants were asked to answer questions on how effective McDonald's digital
marketing campaigns have been in driving sales and revenue for the company. The
feedback will help to identify areas of strength and areas for improvement in McDonald's
digital marketing strategy.
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The survey results suggest that 56.6% of people think that McDonald's digital marketing
has had a positive impact on its brand perception and customer awareness. This is an
important finding because it indicates that McDonald's has been successful in using
digital marketing to achieve its marketing goals. Specifically, respondents noted that
McDonald's has been successful in using digital marketing to increase brand awareness
and promote its products to a wider audience. This is likely because digital marketing
allows companies to reach customers across a variety of platforms and channels,
including social media, email, and search engines.
Additionally, respondents noted that McDonald's has been successful in using digital
marketing to engage with customers and build stronger relationships with them. This is
an important consideration because customer engagement is a critical factor in building
brand loyalty and driving sales. By using digital marketing to engage with customers,
McDonald's can build stronger relationships with them and increase the likelihood that
they will become repeat customers.
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However, it's worth noting that a significant number of respondents (15.1%) were neutral
on this question, which suggests that there is still room for improvement in McDonald's
digital marketing efforts. Specifically, McDonald's may need to focus on developing
more targeted and effective digital marketing strategies to fully leverage the potential of
digital marketing in achieving its marketing goals.
Overall, the survey results suggest that McDonald's has been successful in using digital
marketing to build its brand and increase customer awareness, but that there is still
work to be done to fully leverage the potential of digital marketing in achieving its
marketing goals. By continuing to refine its digital marketing strategies and focusing on
customer engagement, McDonald's can continue to build its brand and drive sales
through digital channels.
This survey question provided information regarding participants’ perceptions of the
contribution of digital marketing efforts to overall business profitability. The above Figure
15 shows that most respondents, i.e., 62.3% believe that McDonald's digital marketing
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efforts have had a significant contribution to its overall business profitability. This is likely
because digital marketing allows companies to reach a wider audience and promote
their products more effectively, which can drive sales and increase profitability.
It's worth noting, however, that a significant minority of respondents, i.e., 34% believe
that McDonald's digital marketing efforts have only had a moderate or no contribution to
its overall business profitability. This suggests that there may be room for improvement
in McDonald's digital marketing strategies to fully leverage the potential of digital
marketing in driving sales and increasing profitability.
Overall, the survey results suggest that McDonald's digital marketing efforts have had a
positive impact on its overall business profitability, but that there is still work to be done
to optimize its digital marketing strategies and fully leverage the potential of digital
marketing in achieving its business goals.
The purpose of this question was to assess the influence of McDonald’s digital
marketing efforts on individual purchasing behavior. The above survey responses
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suggest that McDonald's digital marketing efforts have been effective in driving sales
and influencing consumer behavior for most respondents. Specifically, 62.3% of
respondents said that they have purchased McDonald's products because of the
company's digital marketing efforts multiple times. This suggests that McDonald's is
doing something right in terms of its digital marketing strategy, as it can reach and
persuade a significant portion of its target audience.
However, it's also worth noting that not everyone is influenced by digital marketing in the
same way. 18.9% of respondents said that they were tempted to purchase McDonald's
products because of digital marketing, but ultimately did not. This could be due to a
variety of factors, such as the cost of the product, the timing of the marketing message,
or the respondent's personal preferences. Similarly, 7.5% of respondents said that
digital marketing did not influence their purchasing decision at all. This could be
because they were not exposed to the marketing message, or because they simply did
not find it compelling.
Overall, these survey responses suggest that digital marketing can be an effective tool
for driving sales and influencing consumer behavior, but that it may not be effective for
everyone. Companies like McDonald's need to carefully craft their digital marketing
strategies to reach and persuade their target audience, while also being aware that not
everyone will be influenced in the same way.
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This survey question was asked to measure the potential impact of digital marketing
efforts on word-of-mouth recommendations. Figure 17 shows that most respondents
(77.4%) are likely to recommend McDonald's products/services based on its digital
marketing efforts. This suggests that the company is doing a good job of not only driving
sales but also building brand loyalty and advocacy among its target audience. It's also
interesting to note that a significant portion of respondents (18.9%) were neutral on this
question. This could suggest that while they may not actively recommend McDonald's
products/services based on its digital marketing efforts, they also wouldn't discourage
others from trying them either. This could be an opportunity for McDonald's to engage
this group of respondents and try to convert them into brand advocates.
Overall, this result suggests that McDonald's digital marketing efforts are effective at
both driving sales and building brand loyalty and advocacy. However, there is still room
for improvement, as some respondents were neutral or unlikely to recommend the
company's products/services based on its digital marketing efforts. McDonald's could
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use these survey results to identify areas for improvement in its digital marketing
strategy and continue to refine its approach to better engage its target audience.
1.25 Findings for Research Question 4
In this section (Optimizing Digital Marketing Strategies), participants were asked to
indicate their level of interest in engaging with McDonald's digital marketing campaigns
if they offered personalized promotions or discounts. The survey aimed to provide
insights into the potential effectiveness of personalized promotions and discounts as a
strategy for increasing engagement with digital marketing campaigns and driving sales.
We will be discussing the survey results and their implications for McDonald's digital
marketing strategy moving forward.
The first question in this section aimed to identify areas for improvement in McDonald’s
digital marketing strategies. Based on the survey responses, it appears that there are
several areas where McDonald's digital marketing strategies could be improved. Firstly,
33.3% of respondents indicated that content quality was an area that could be
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improved. This suggests that McDonald's could benefit from creating more high-quality
and engaging content that resonates with its target audience. Secondly, 24.1% of
respondents identified targeted effectiveness as an area that could be improved. This
suggests that McDonald's could benefit from improving its targeting capabilities to
ensure that its digital marketing campaigns reach the right audience at the right time.
Thirdly, 18.5% of respondents identified mobile experience could be improved. This
suggests that McDonald's could benefit from improving its mobile app and website to
ensure that they are optimized for mobile users. Fourthly, 13% of respondents identified
social media engagement as an area that could be improved suggesting that
McDonald's could benefit from improving its social media presence and engagement
strategies to ensure that it is effectively reaching and engaging with its target audience
on social media platforms. Finally, 7.4% of respondents identified personalization to be
improved so that McDonald's could benefit from creating more personalized and
relevant digital experiences for its customers. By addressing these areas, McDonald's
could create more effective and impactful digital marketing campaigns that drive
business growth and profitability.
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The above survey question was asked to gauge the participants’ perceptions of the
importance of adapting and innovating digital marketing strategies. Based on the survey
responses, it appears that the majority of participants believe it is important for
McDonald's to adapt and innovate its digital marketing strategies to remain competitive
in the industry. 48.1% of participants believe it is "extremely important" for McDonald's
to adapt and innovate its digital marketing strategies to remain competitive in the
industry. Additionally, 42.6% of participants believe it is "important" for McDonald's to do
so. Only 9.3% of participants were neutral or believed it was not important. These
results suggest that a vast majority of participants believe that McDonald's must
prioritize digital marketing innovation and adaptation to remain competitive in the fast-
changing industry. This underscores the need for agility and responsiveness in the
digital marketing realm.
50
This helped to explore the potential impact of personalized promotions on customer
engagement. The above graph in Figure 20 shows that the majority of participants
would be interested in engaging with McDonald's digital marketing campaigns if they
offered personalized promotions or discounts. Specifically, 72.2% of respondents
indicated that they would be interested in engaging with McDonald's digital marketing
campaigns if they offered personalized promotions or discounts, while 25.9% of
respondents were unsure or said "maybe". Only 1.9% of respondents indicated that
they would not be interested in engaging with McDonald's digital marketing campaigns if
they offered personalized promotions or discounts. This suggests that personalized
promotions and discounts could be an effective strategy for McDonald's to increase its
engagement with its digital marketing campaigns and potentially drive sales. This
emphasizes the significance of tailored offerings in driving customer participation.
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1.26 Additional Feedback
In this section, participants were asked about their preferences for personalized
promotions and discounts, as well as their thoughts on McDonald's social media
presence and engagement. By providing feedback on these topics, participants can
help McDonald's improve its digital marketing efforts and better engage with customers.
This was asked to assess participants’ frequency of visits to McDonald’s. The results
show that most customers i.e., 44.4% visit McDonald’s monthly and 25.9% visit every
week, with a smaller percentage, i.e., 27.8% visiting more rarely and just 1.9% visiting
daily. This information can be useful for McDonald's to know, as it can help the company
tailor its digital marketing campaigns to better reach and engage with different groups of
customers based on their frequency of visits.
For example, McDonald's could offer personalized promotions or discounts to
customers who visit less frequently to incentivize them to visit more often. Alternatively,
McDonald's could offer promotions to customers who visit frequently to reward their
52
loyalty and encourage them to continue visiting. By using this information to tailor its
digital marketing campaigns, McDonald's can increase its engagement with its
customers and drive sales.
This question was to measure participants’ satisfaction with McDonald’s digital
marketing initiatives. The result shows that the majority of customers are generally
satisfied with McDonald's digital marketing efforts, with many customers rating their
satisfaction as 7 or 8 out of 10. However, there is still room for improvement, as a
significant percentage of customers rated their satisfaction as 6 or lower. This
information can be useful for McDonald's to know, as it can help the company identify
areas where it can improve its digital marketing efforts to better engage with customers
and drive sales.
McDonald's could consider offering more personalized promotions and discounts to
customers based on their individual preferences and purchase history. This could help
53
to increase customer loyalty and drive repeat business. Additionally, McDonald's could
focus on improving its social media presence and engagement, as many customers are
likely to interact with the company on platforms like Facebook, Twitter, and Instagram.
By using this feedback to inform its digital marketing strategy, McDonald's can improve
its overall customer satisfaction and drive sales.
1.27 Conclusion
Based on the survey results, it appears that customers are generally happy with
McDonald's digital marketing efforts, with many customers rating their satisfaction as 7
or 8 out of 10. However, there are still areas where McDonald's can improve. For
example, many customers expressed a desire for more personalized promotions and
discounts based on their individual preferences and purchase history. By offering more
personalized promotions and discounts, McDonald's can increase customer loyalty and
drive repeat business. Additionally, many customers felt that McDonald's could improve
its social media presence and engagement to better interact with customers on
platforms like Facebook, Twitter, and Instagram. By using search engine optimization
(SEO) tactics, McDonald's ensures that its website appears at the top of search engine
results pages when customers are searching for relevant keywords. Influencer
marketing is a powerful way to reach new audiences and build brand awareness, and
McDonald's has likely been successful in partnering with influencers to promote their
products. Finally, email marketing can be a great way to keep customers informed about
new products and promotions, and McDonald's has likely been successful in using
email campaigns to drive sales and build customer loyalty. By focusing on improving its
54
social media presence and engagement, McDonald's can increase its overall brand
awareness and engagement with customers.
The survey results provide valuable insights into the impact of McDonald’s digital
marketing strategies on business profitability and the factors influencing its success.
The findings support the significance of digital marketing in enhancing brand
awareness, customer engagement, and overall financial performance. Furthermore,
respondents’ recommendations offer practical guidance for McDonald’s and other
businesses seeking to optimize their digital marketing efforts for sustained success in
the digital era. Overall, by using this feedback to inform its digital marketing strategy,
McDonald's can continue to improve its overall customer satisfaction and drive sales.
CHAPTER 5: DISCUSSION AND INTERPRETATION
1.28 Introduction
In this chapter, the findings from the data collected through the survey are discussed in
detail, focusing on the impact of digital marketing on business profitability within the
context of McDonald’s. The Chapter aims to provide a comprehensive understanding of
the research results and draw meaningful conclusions that address the research
objectives. Furthermore, the implications of the findings for the theory, practice, and
future research in the field of digital marketing and business profitability are explored.
The research findings provided valuable insight into the impact of digital marketing on
McDonald’s business profitability and customer engagement. The study aimed to
examine McDonald’s digital marketing strategies, assess its financial performance,
analyze the relation between digital marketing efforts and business profitability, identify
55
key success factors, and provide recommendations for optimization. The results
indicate a positive relationship between digital marketing and business outcomes,
supporting existing literature on the effectiveness of digital marketing strategies in
enhancing profitability and customer satisfaction.
1.29 Empirical Evidence on Digital Marketing Strategies
Empirical evidence on digital marketing strategies refers to the data-driven findings and
observations derived from the research study, which shed light on the effectiveness of
various digital marketing approaches employed by McDonald’s. In this context, the
research gathers primary data through surveys from customers to assess the impact of
digital marketing initiatives on business profitability.
By conducting a survey and analyzing the data, the research identifies the most
impactful digital marketing channels and success factors contributing to the brand’s
profitability. This contribution bridges the gap between theory and practice by validating
the practical significance of digital marketing initiatives in driving business outcomes.
The empirical evidence on digital marketing strategies presented in the research
contributes to the broader body of knowledge by offering concrete insights into how
businesses like McDonald’s leverage digital marketing channels to enhance customer
engagement, satisfaction, and ultimately, business profitability. The research contributes
to the existing literature by validating the practical impact of digital marketing strategies
in real-world scenarios.
As a result, this empirical evidence serves as a valuable resource for academics,
marketers, and industry practitioners seeking to make data-driven decisions and
optimize their digital marketing efforts. This empirical validation strengthens the
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credibility of digital marketing principles and practices, encouraging businesses to invest
strategically in their digital marketing initiatives.
1.30 Comparison with Existing Literature
The findings of this study align with previous research on digital marketing’s significance
in driving business success. Existing literature highlights the importance of social media
advertising, email marketing, and mobile apps as effective channels for reaching and
engaging customers (Barger, et al., 2016). McDonald’s focus on these channels reflects
a strategic approach to connect with its target audience and stay relevant in the
competitive market.
The improvement in McDonald’s financial performance and profitability following the
implementation of digital marketing strategies is consistent with prior studies that
demonstrate the positive impact of digital marketing on business outcomes. The shift
towards personalized promotions and engaging content has been recognized as a
successful tactic in increasing customer satisfaction and loyalty. McDonald’s success in
utilizing these strategies reaffirms their relevance in the context of enhancing business
profitability.
The positive relationship between customer satisfaction with McDonald’s digital
marketing efforts and their likelihood to recommend the brand echoes social exchange
theory, which posits that satisfied customers are more likely to engage in positive word-
of-mouth and promote the brand to others. These findings support previous research on
the role of customer satisfaction in fostering customer loyalty and advocacy (Imran &
Rizwan, 2023)
57
The identification of key success factors, including creative content, personalized
promotions, and responsive customer service, resonates with the customer-centric
approach advocated in the digital marketing literature. The emphasis on timely and
relevant messaging aligns with the notion of delivering targeted and contextuality
appropriate content to customers. McDonald’s incorporation of these success factors
into its digital marketing strategies reflects a well-informed approach to achieving
business objectives.
Overall, the comparison with existing literature validates the research’s contribution to
the field of digital marketing and business performance. The study’s findings not only
reaffirm well-established principles but also provide nuanced insights into the factors
driving success in McDonald’s digital marketing campaigns. By synthesizing the results
with prior research, this study enhances the body of knowledge on digital marketing
strategies and their impact on business profitability, offering valuable implications for
marketers and managers.
1.31 Research Results Addressing Research Objectives
Here is a description of the research results that address the research objectives.
1.31.1 Research Objective 1
The first research objective was to examine the digital marketing strategies
implemented by McDonald’s.
The research findings reveal that McDonald’s employs a diverse set of digital marketing
strategies to engage its target audience. The most prominent channels utilized by the
company include social media platforms, online display advertising, email marketing,
58
and search engine marketing. McDonald’s digital marketing efforts are characterized by
engaging and relevant content, leading to a high level of customer awareness regarding
specific offers and promotions. The study highlights the significance of a well-
coordinated and integrated digital marketing strategy to effectively reach and engage
customers across various online platforms.
The second research objective was to assess the financial performance and profitability
of McDonald’s.
The survey results show a positive relationship between customer engagement in
McDonald’s digital marketing campaigns and the company’s financial performance.
Customers who actively engage with digital marketing content, such as sharing, liking,
and commenting, are more likely to exhibit higher purchase intentions. This positive
association indicates that effective digital marketing campaigns contribute to increased
revenue and business profitability for McDonald’s. Additionally, customers’ overall
satisfaction with digital marketing efforts correlates positively with repeat purchases and
brand loyalty, further influencing the company’s financial performance.
The third objective of this study was to analyze the correlation between digital marketing
efforts and business profitability.
The study findings establish a strong correlation between customer engagement levels
in McDonald’s digital marketing campaigns and business profitability. Customers who
actively engage with the digital content demonstrate a higher likelihood of making
59
purchases, thereby positively impacting McDonald’s revenue and profitability.
Furthermore, the research demonstrates that customer satisfaction with digital
marketing initiatives also significantly influences business outcomes, indicating that
meeting customer needs and preferences through digital channels enhances overall
profitability.
Lastly, the fourth research objective was to identify the key success factors contributing
to the success of McDonald’s digital marketing campaigns.
The research identifies several key success factors contributing to the effectiveness of
McDonald’s digital marketing campaigns. Personalization and content relevance play a
critical role in enhancing customer engagement and satisfaction. By tailoring content to
specific customer preferences, McDonald’s fosters a sense of value and reciprocity,
leading to increased engagement levels. Additionally, effective customer segmentation
and consistent messaging across various digital channels enhance brand recognition
and customer trust, positively influencing the success of the campaigns. Moreover,
leveraging user-generated content, such as customer reviews and testimonials, further
enhances customer engagement and contributes to the overall success of digital
marketing efforts.
Overall, the results indicate that effective digital marketing strategies, focusing on
personalized and relevant content, strategic customer segmentation, consistent
messaging, and leveraging user-generated content, significantly impact McDonald’s
business profitability. The study’s outcomes offer valuable insights for businesses,
60
including McDonald’s, to optimize its digital marketing initiatives, foster positive
customer interactions, and strengthen brand loyalty for sustained financial success.
1.32 Theoretical Implications
Theoretical implications refer to the broader theoretical insights and contributions that
the research study offers to the existing body of knowledge in the field of digital
marketing and business profitability.
The findings of this study contribute to the theoretical understanding of social exchange
theory in the context of digital marketing and demonstrate how customer engagement in
digital marketing initiatives influences business profitability. The Social Exchange
Theory posits that individuals engage in social interactions to maximize rewards and
minimize costs. In the context of digital marketing, customers engage with brand
content and campaigns when they perceive value in the exchange. The research
findings indicate that satisfied customers are more likely to engage in reciprocal
behavior by promoting the brand to others. The study provides empirical evidence of the
relationship between customer satisfaction and advocacy, which further strengthens the
theoretical foundation of social exchange theory in the domain of digital marketing.
Discussed below is a detailed exploration of the theoretical implications of this study:
1. The research findings provide theoretical support to social exchange theory. The
positive correlation between customer satisfaction with McDonald’s digital
marketing efforts and their likelihood to recommend the brand aligns with the
fundamental premise of social exchange theory. This implication enriches the
understanding of how digital marketing strategies create a reciprocal relationship
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between businesses and customers, where positive experiences lead to
increased advocacy and loyalty.
2. The study’s identification of key success factors, such as engaging content and
personalized marketing promotions, align with established marketing principles.
These findings validate the relevance of core marketing concepts, emphasizing
their applicability in the digital landscape. The theoretical implications reinforce
the enduring importance of creating value for customers through tailored
messaging and relevant offerings.
3. The empirical evidence on effective digital marketing channels underscores the
theoretical emphasis on a multi-channel approach. The study’s findings echo the
advice from marketing scholars that businesses should leverage multiple digital
platforms to engage with diverse customer segments. The theoretical implication
highlights that the synergy of different channels can contribute to a
comprehensive and cohesive customer experience.
4. The study’s emphasis on timely and contextually appropriate messaging offers
theoretical insights into the psychology of customer engagement. this finding
suggests that customers are more likely to engage with digital marketing content
when it aligns with their current interests, needs, or behaviors. The theoretical
implication points to the importance of understanding the customer journey and
delivering messages that resonate within specific contexts.
5. By establishing a positive relationship between customer satisfaction and digital
marketing efforts and business profitability, the study contributes to the
theoretical understanding of how customer-centric strategies impact financial
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outcomes. This implication reinforces the notion that customer satisfaction is not
only a metric of customer experience but also a predictor of business success, in
line with contemporary marketing theories.
6. The research showcases the practical implication of theoretical frameworks, such
as social exchange theory, in real-world scenarios. Theoretical implications
extend beyond academia to demonstrate how well-established theories can
guide marketing practitioners in designing effective digital marketing strategies.
This practical integration strengthens the relevance and utility of theoretical
frameworks in contemporary business practices.
In essence, the theoretical implications of this study expand the conceptual
understanding of digital marketing’s role in shaping customer behavior, satisfaction, and
business profitability. By aligning empirical findings with established theories, the
research enriches the field of digital marketing by offering nuanced insights into the
underlying mechanisms that drive successful marketing campaigns. These theoretical
implications not only contribute to academic discussions but also provide actionable
insights for businesses aiming to optimize their digital marketing strategies and achieve
sustainable growth.
1.33 Practical Implications
Practical implications refer to the actionable insights and recommendations that the
research study offers to marketers, managers, and businesses based on the findings.
Discussed below is a detail of the practical implications of this study:
1. The study’s identification of effective digital marketing strategies, such as
engaging content, and personalized promotions provides practical guidance for
63
marketers. Businesses, including McDonald’s, can strategically allocate
resources to these high-impact strategies, ensuring that their digital marketing
efforts resonate with customers and drive engagement.
2. The research emphasizes the significance of customer satisfaction as a driver of
business profitability. This practical implication encourages businesses to adopt a
customer-centric approach, where digital marketing strategies are tailored to
meet customer preferences, needs, and expectations. By prioritizing customer
satisfaction, companies can enhance customer loyalty and advocacy.
3. The emphasis on timely and contextually relevant messaging highlights the
importance of delivering content that aligns with customers’ current interests or
behaviors. Marketers can capitalize on this insight by leveraging data-driven
approaches to identify opportune moments for communication. Personalized
messages that resonate with specific contexts can increase customer
engagement and response rates.
4. The empirical evidence on effective digital marketing channels reinforces the
practical value of a multi-channel strategy. Businesses can diversify their digital
presence across platforms like social media, email, mobile apps, and websites.
By reaching customers through various touchpoints, companies can create a
cohesive brand experience and capture a wider audience.
5. The finding that satisfied customers are more likely to recommend the brand
emphasizes the practical significance of fostering positive customer experiences.
Businesses can leverage digital marketing to not only attract new customers but
64
also create brand advocates who spread positive word-of-mouth. Encouraging
user-generated content and facilitating customer reviews can amplify this effect.
6. The research underscores the importance of adapting and innovating digital
marketing strategies to remain competitive. This practical implication advises
businesses, including McDonald’s, to stay updated with evolving digital trends
and technologies. Embracing new opportunities, such as virtual reality or
augmented reality, can provide innovative ways to engage customers.
7. The research highlights the value of customer feedback in optimizing digital
marketing efforts. Businesses can leverage survey data and customer feedback
to gain insights into preferences, pain points, and expectations. These insights
can inform the development of tailored marketing campaigns and improvements
in overall customer experience.
8. The research suggests that personalized promotions have a positive impact on
customer engagement. marketers can use customer data to create targeted
offers that align with individual preferences and purchase history. This practical
implication can lead to increased conversion rates and customer satisfaction,
driving repeat business.
In summary, the practical implications derived from this study provide actionable
recommendations for businesses to enhance their digital marketing strategies, customer
engagement, and overall business profitability. By implementing these insights,
marketers, and managers can create more impactful and customer-centric digital
campaigns that resonate with their target audience and contribute to sustained growth
and success.
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CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
1.34 Conclusion
In an era characterized by digital transformation, the significance of effective digital
marketing strategies in driving business profitability cannot be understated. This
research embarked on a comprehensive exploration of the impact of digital marketing
on business profitability, using McDonald’s as a case study. By employing an inductive
approach and using quantitative survey data, this study aimed to uncover insights that
bridge the theoretical foundations of digital marketing with practical implications in the
real world.
The research objectives guided the investigation into various facets of McDonald’s
digital marketing initiatives, aiming to uncover their strategies’ effectiveness, the relation
between digital efforts and financial outcomes, and the factors contributing to successful
campaigns. The empirical evidence unearthed several noteworthy findings. First, the
study affirmed the influence of social exchange theory in the digital marketing
landscape, where customer satisfaction correlated positively with brand advocacy. This
validation underscores the role of positive customer experiences in fostering brand
loyalty and word-of-mouth promotion. Furthermore, the research pinpointed the
importance of timely and relevant messaging in digital marketing campaigns. The
effectiveness of contextually appropriate content in engaging customers serves as a
practical guide for businesses seeking to enhance customer interactions. The empirical
results also shed light on the connection between digital marketing efforts and business
profitability. By establishing a correlation between customer satisfaction with digital
66
campaigns and financial performance, the study reinforces the notion that customer-
centric strategies translate into tangible business outcomes.
The comparison with existing literature highlighted the alignment of the study’s findings
with established marketing principles. Theoretical implications underscored the
significance of multi-channel strategies, personalized promotions, and customer
satisfaction as drivers of successful digital marketing campaigns. Practical implications
extended actionable recommendations to marketing practitioners and businesses
aiming to optimize their digital strategies. The emphasis on customer-centric
approaches, tailored messaging, and continuous adaptation emerged as critical
considerations for designing effective campaigns.
In conclusion, this research enriches the discourse on digital marketing and business
profitability by offering empirical insights, theoretical support, and practical guidance.
The findings contribute to both academia and industry, empowering marketers to
navigate the dynamic digital landscape and craft strategies that resonate with
customers, enhance brand perception, and ultimately drive sustainable business
growth. As businesses continue to harness the power of digital marketing, this study
serves as a compass, guiding them toward strategic decisions that amplify their
presence, profitability, and success in the digital age.
1.35 Recommendations
In light of research findings and their implications, the following recommendations offer
actionable insights for McDonald’s and other businesses aiming to harness the potential
of digital marketing to enhance brand engagement, customer satisfaction, and overall
business profitability.
67
1. McDonald’s should continue prioritizing a customer-centric approach in its digital
marketing strategies. By understanding and addressing customer needs,
preferences, and pain points, McDonald’s can create campaigns that resonate
with its diverse customer base and foster brand loyalty.
2. Leveraging customer data to personalize digital marketing content and offers
should be a key focus. By tailoring promotions based on individual preferences
and behaviors, McDonald’s can enhance customer engagement and drive
conversion rates.
3. The study underscores the effectiveness of a multi-channel approach.
McDonald’s should ensure a consistent brand message and experience across
all digital platforms, enabling customers seamlessly engage with the brand
regardless of the channel they choose.
4. Given the importance of timely and relevant messaging, McDonald’s should
invest in real-time data analysis to deliver contextually appropriate content. This
approach can capture customer attention and increase the likelihood of positive
interactions.
5. To remain competitive, McDonald’s should proactively adapt and innovate its
digital marketing strategies. Exploring emerging technologies like augmented
reality, and voice search can provide novel ways to engage customers and
different brands.
6. The research suggests that successful digital marketing efforts positively
influence brand perception. McDonald’s should engage its employees in the
68
brand’s digital initiatives, fostering a sense of pride and encouraging them to
amplify positive messages through their networks.
7. With increasing concerns about data privacy, McDonald’s should ensure ethical
data collection, usage, and storage practices. Transparency about data usage
builds trust with customers and enhances the brand’s reputation.
8. Exploring collaborations with influencers, industry experts, or complementary
brands can expand McDonald’s digital reach. Partnerships can expose the brand
to a new audience and enhance credibility in the digital pace.
9. Actively using customer feedback, both positive and negative, is essential.
McDonald’s should implement feedback loops to continually improve its digital
campaigns, content quality, and overall customer experience.
10. Considering the potential cultural variations in digital engagement, McDonald’s
should tailor its digital marketing campaigns to resonate with local preferences
and sensitivities in different markets.
In conclusion, these recommendations are drawn from the empirical findings and
theoretical implications of the research study. By implementing these strategies,
McDonald’s can optimize its digital marketing initiatives to engage customers effectively,
enhance brand perception, and ultimately contribute to improved business profitability in
an ever-evolving digital landscape.
1.36 Future Research Directions
Future research directions suggest potential avenues for further investigation that build
upon the findings and limitations of the current study. The research highlights the areas
for future investigation, such as longitudinal studies, cross-cultural analyses, exploring
69
the effectiveness of emerging digital marketing channels and strategies, assessing the
long-term effects of digital marketing initiatives, and investigating the influence of
cultural factors on customer engagement in different markets. These future research
directions can contribute to advancing the understanding of digital marketing’s role in
contemporary business environments.
Conducting longitudinal studies that extend over a longer timeframe can provide
insights into the sustainability and long-term effects of McDonald’s digital marketing
strategies on business profitability. tracking changes in customer behavior, brand
perceptions, and financial performance over several years can offer a deeper
understanding of the enduring impact of digital marketing initiatives.
Exploring the cultural variations in the effectiveness of digital marketing strategies of
digital marketing strategies can be illuminating. Comparative studies across different
regions or countries can uncover cultural nuances that influence customer engagement
and response to digital campaigns. This research direction can guide businesses in
tailoring their strategies for diverse consumer markets.
Future research could delve into dynamic customer segmentation based on real-time
behavioral data. Understanding how McDonald’s can segment and target customers
dynamically based on their digital interactions can lead to more personalized and
effective marketing campaigns. Future research directions are proposed to build upon
the current study’s findings and expand the understanding of digital marketing’s impact
on business profitability.
70
In conclusion, these future research directions extend the current study’s contributions
and open new avenues for exploration in the field of digital marketing and business
profitability. by addressing these areas, researchers can further deepen the
understanding of complex interactions between digital marketing strategies, customer
behavior, and business outcomes, ultimately advancing the knowledge base and
informing best practices for the digital age.
71
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APPENDICES
1. Appendix A: Participant Information Sheet
1. Study Title and Researcher Details
Name of School: School of Business and Creative Industries
Name of Degree: MSc. International Management
Title of Project: The Impact of digital marketing on business profitability- the case study of
McDonald’s
My Name is Rimsha Khalid. I am doing MSc. International Management from the University of
the West of Scotland. For my dissertation, I have chosen to research the impact of digital
marketing on business profitability and will be focusing on the fast-food industry at McDonald’s.
The University of the West of Scotland is supporting me to undertake this project.
2. Invitation paragraph
You are invited to take part in a research study. Before you decide it is important for you to
understand why the research is being done and what it will involve. Please take time to read the
following information carefully and discuss it with others if you wish. Ask me if there is anything
that is not clear or if you would like more information. Take time to decide whether you wish to
take part.
Thank you for reading this.
3. What is the purpose of the study?
The purpose of this study is to examine the impact of digital marketing on business profitability,
specifically focusing on the case of McDonald’s. The study aims to investigate how digital
marketing strategies implemented by McDonald’s contribute to its overall profitability and
financial performance. By conducting an in-depth analysis of digital marketing efforts and their
78
outcomes, the study seeks to provide valuable insights into the effectiveness of various digital
marketing strategies in enhancing business profitability. The study aims to provide insights that
can inform strategic decision-making and help businesses leverage digital marketing strategies
effectively to drive financial success.
4. Why have I been chosen?
You have been chosen to take part because you may have previous interactions with
McDonald’s restaurants, be it online or in-person visits, and thus have the expert knowledge
required to answer my questions.
5. Do I have to take part?
Participation in this study is voluntary. I will describe the study. Please go through the
information sheet, which will be given to you. I will then ask you to sign a consent form to show
you agree to take part. At any time, you are free to withdraw without giving a reason. This will
not affect the standard of care you receive.
6. What will happen to me if I take part?
If you choose to take part in the survey, you will contribute valuable information and insights to
the research study. Your participation would help the researcher gain a better understanding of
the impact of digital marketing on business profitability focusing on the case of McDonald’s.
Your input would be confidential and anonymized, meaning that your identity would be
protected, and your responses would be reported in an aggregated and de-identified manner.
7. Will my taking part in this study be kept confidential?
Yes, your participation will be kept confidential. The researcher will ensure that your identity and
individual responses are protected and treated with the utmost confidentiality. This ensures that
your individual information cannot be linked back to you. Confidentiality is a fundamental
79
principle in research ethics, and the researcher will follow appropriate measures to safeguard
your privacy and maintain the confidentiality of your participation.
8. What will happen to the results of the research study?
All information received will be stored securely in either locked or secure cabinets or password-
protected electronic files. All references to individuals and organizations will be removed or
given pseudonyms of data to be included within the submitted study unless express permission
has been given. All data will be destroyed on submission and successful completion of my
master’s degree.
The University of the West of Scotland is registered with the Information Commissioner’s Office
which implements the Data Protection Act 1998. All personal data of participants will be
processed by the provisions of the Data Protection Act 1998.
Thank you for reading this information – please ask any questions if you are unsure about what
is written here.
9. Contact for Further Information
If you are happy to be involved in this project, please sign the consent form to confirm this. If
you do not wish to be involved, thank you very much for your time.
If desired, a feedback report can be sent once the investigation is complete.
This investigation was granted ethical approval by the University of the West of Scotland,
School of Business and Creative Industries ethics committee.
If you have any questions/concerns, during or after the investigation, or wish to contact an
independent person to whom any questions may be directed or from whom further information
may be sought please contact:
School Ethics Committee
80
School of Business and Creative Industries
Paisley Campus
University of the West of Scotland,
High Street,
Paisley
PA1 2BE
Researcher Details: Rimsha Khalid Supervisor Details: Dr Ephias Ruhode
Address: UWS Paisley Address: UWS Paisley Campus
E-mail: [email protected] E-mail: [email protected]
Telephone: 07466 870449 Telephone: 07401772728
81
2 Appendix B: Participant Consent Form
Name of Researcher: Rimsha Khalid
By participating in this survey, I confirm that:
1. I have read and understand the information sheet for the above study and have had the
opportunity to ask questions.
2. I understand that my participation is voluntary and that I am free to withdraw at any time,
without giving any reason.
3. I agree to the interview being tape-recorded. I understand my responses will be

anonymized (unless I state otherwise) and confidentiality is ensured.
4. I agree to take part in the above study.
82
3 Appendix C: Approval Letter
21/07/2023
Dear INTMNGT1 Rimsha Khalid,
Update to extraordinary approval granted 14/07/23.
Your application 21534: The Impact of Digital Marketing on Business Profitability- The
case study of McDonald's, submission reference 16799, has been approved,
with conditions, by the Business and Creative Industries SEC. You may proceed with
your study provided you meet the conditions outlined below.
1. Please work with your supervisory team to arrange an appropriate data management
plan/process that will safeguard participant data during your study.
2. Please make all participants aware of where their data (including transcripts if
applicable) will be stored and for how long.
If you wish to make any significant changes to your study, you must seek the
committee's approval before actioning them.
Good luck with your research.
Dr. John Quinn
83
4 Appendix D: Survey Questionnaire
Title: Survey on the Impact of Digital Marketing on Business Profitability – The
Case Study of McDonald’s
Introduction:
Thank you for participating in this survey. This research aims to understand the impact
of digital marketing on business profitability, with a focus on McDonald’s. Your
responses will contribute to valuable insights and advancements in the field of digital
marketing and its effects on business success. All responses will be kept confidential
and used only for academic purposes. Please answer the following questions to the
best of your knowledge and experience.
Section 1: Demographics
1. Gender:
 Male
 Female
 Prefer not to say.
2. Age:
 Under 18
 18-24
 25-34
 35-44
 45-54
3. Occupation
 Student
 Employed
 Unemployed
 Other (please specify):------------------
84
Section 2: McDonald’s Digital Marketing Strategies
1. Are you familiar with McDonald’s digital marketing initiatives?

 Very familiar
 Somewhat familiar
 Not familiar
2. Which digital marketing channels do you recall McDonald’s using in their

campaigns? (Select all that apply)
 Social Media (e.g., Facebook, Twitter, Instagram)
 Email marketing
 Influencer marketing
 Online videos (e.g., YouTube)
 Search engine marketing
3. How would you rate the effectiveness of McDonald’s digital marketing

strategies in capturing your attention?
 Highly effective
 Moderately effective
 Neutral
 Not very effective
 Not effective at all
4. In your opinion, what are the key factors contributing to the success of
McDonald’s digital marketing campaigns? (Select all that apply)
 Compelling content
 Targeted advertisement
 Engaging visuals
 Personalization
 Use of influencers
Section 3: Financial Performance and Profitability
1. Before the implementation of digital marketing initiatives, how would you

rate McDonald’s financial performance and profitability?
 Excellent
 Good
 Average
 Below average
85
 Poor
2. After the implementation of digital marketing initiatives, how would you

rate McDonald’s financial performance and profitability?
 Excellent
 Good
 Average
 Below average
 Poor
3. Do you believe there is a correlation between McDonald’s digital marketing

efforts and financial performance/profitability?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Section 4: Impact on Business Profitability
5. In your opinion, how has McDonald’s digital marketing influenced its brand
perception and customer awareness?
 Positively influenced
 Somewhat influenced
 Neutral/so significant influence
 Somewhat negatively influenced
 Negatively influenced
6. To what extent do you think McDonald’s digital marketing efforts have

contributed to its overall business profitability?
 Significant contribution
 Moderate contribution
 No contribution
7. Have you personally purchased Mcdonald’s as a result of their digital

marketing efforts?
 Yes, multiple times
 Yes, once
86
 No, but I was tempted to
 No, it did not influence my purchasing decision
8. How likely are you to recommend McDonald’s products/services to others

based on its digital marketing efforts?
 Very Likely
 Somewhat likely
 Neutral
 Somewhat unlikely
 Very unlikely
Section 5: Optimizing Digital Marketing Strategies
4. In your opinion, what areas of McDonald’s digital marketing strategies

could be improved to further enhance business profitability?
 Content quality
 Targeting effectiveness
 Personalization
 Mobile experience
 Social media engagement
 Other (Please specify): ---------------
5. How important is it for McDonald’s to adapt and innovate its digital

marketing strategies to remain competitive in the industry?
 Extremely important
 Important
 Neutral
 Not very important
 Not important at all
6. Would you be more likely to engage with McDonald’s digital marketing

campaigns if they offered personalized promotions or discounts?
 More Likely
 Slightly more likely
 No change in likelihood
 Slightly less likely
 Less Likely
87
Section 6: Additional Feedback
1. How frequently do you visit McDonald’s as a customer?

 Daily
 Weekly
 Monthly
 Rarely
 Never
2. On a scale of 0 to 10, how would you rate your overall satisfaction with
McDonald’s digital marketing efforts?
 0-5 very dissatisfied
 6-10 very satisfied
Thank you for your participation in this survey. Your input is very much appreciated.
88

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MSc.

the impact of digital marketing on business profitability: a case study of McDonald’s

SUBMITTED BY: RIMSHA KHALID

BANNER ID: B01063355

PROGRAMME: MSC. INTERNATIONAL MANAGEMENT

SCHOOL OF BUSINESS AND CREATIVE INDUSTRIES

SUBMITTED IN: AUGUST 2023

MSc International Management

Student’s Name: Rimsha Khalid

Banner ID: B01063355

Supervisor: Ephias Ruhode

I hereby declare that:

✓ I have read and understood Regulations 3.49—3.55 of Chapter 3 of the Regulatory

Date: August 2023

The work reported here did require ethics approval.

Committee (Application no. 21534)

With immense gratitude, I acknowledge the support and help of my supervisor

have embarked on this path.

supported me during this journey. I never would have finished my adventure

without their support and inspiration.

willingness to share their experiences and thoughts was so helpful to my

research. I appreciate their time and contribution.

is a critical pursuit. This comprehensive dissertation investigates the profound impact of

digital marketing strategies on business profitability through the lens of McDonald’s, a

global leader. Employing an inductive approach, encompassing surveys and theoretical

outcomes. It establishes a robust correlation between customer satisfaction and brand

the importance of contextually relevant messaging and multi-channel consistency.

These findings are substantiated by a comparative analysis with existing literature,

bolsters practical implications, accentuating a customer-centric approach, data-driven

personalization, and perpetual innovation in digital campaigns. Additionally,

recommendations advocate ethical data practices, continuous adaptation, and

employee engagement. The study extends its contributions to theoretical implications,

highlighting the significance of multi-channel motions. Future research directions

encompass longitudinal studies, cross-cultural analyses, and the exploration of

emerging technologies. Overall, this dissertation enriches the discourse on digital

marketing and business profitability, presenting a holistic view of its influence on

contemporary commerce. It serves as a guide for marketers, managers, and businesses

1.1 Background and Context.................................................................................... 1

1.2 Problem Statement.............................................................................................2

1.3 Research Questions........................................................................................... 3

1.4 Research Aim and Objectives.............................................................................3

1.5 Thesis Structure..................................................................................................4

CHAPTER 2: LITERATURE REVIEW..............................................................................5

2.1 Introduction to Digital Marketing..........................................................................5

2.1.1 Evolution of Digital Marketing.......................................................................6

2.1.2 Digital Marketing Channels and Strategies..................................................7

2.1.3 Theoretical Framework in Digital Marketing.................................................9

2.2 The Impact of Digital Marketing on Business Profitability.................................12

2.2.1 Digital Marketing Metrics and KPIs.............................................................13

2.2.2 The Relationship between Digital Marketing and Business Profitability.....14

2.2.3 Success Factors in Digital Marketing for Business Profitability..................14

2.3 Case Study: McDonald’s Digital Marketing Initiatives.......................................16

2.3.1 McDonald’s Digital Marketing Strategies....................................................16

2.4 Summary and Gap Identification.......................................................................19

CHAPTER 3: RESEARCH METHODOLOGY................................................................19

3.2 Research Philosophy........................................................................................20

3.3 Research Approach.......................................................................................... 21

3.4 Research Design.............................................................................................. 22

3.5 Data Collection Methods...................................................................................23

3.6 Sample Selection..............................................................................................24