Big Data Analytics and Sales Performance

Big data analytics (BDA) is similar to machine-based learning or AI (artificial intelligence). BDA is only as accurate as the coded practice of collecting consumer behavior. This research proposes a novel method to apply the collection of BDA.. Using the research model found in figure 1 of this reading, identify how the research findings using the BDA predicts sales performance. Then compare this model to the two DBA collection theories: the resource-based view (RBV) versus dynamic capability theory for best practices.

Results

The study used SPSS v25 to ensure the validity and reliability of the exploratory factor analysis (EFA). A structural equation modelling (SEM) approach was adopted to test the proposed research model, and AMOS v25 was used to conduct SEM and confirmatory factor analysis (CFA). AMOS is an appropriate tool for CFA and SEM and a powerful tool for estimating specific indirect effects. The demographical information presented through SPSS is shown in Table 4. The results indicated that the respondents were equally diverse in gender, with 53.6% males and 46.4% females. Furthermore, 96.4% of the respondents had bachelor's or master's degrees, and 94% of the respondents were aged below 46 years. Therefore, the respondents of the study were young, educated, and equally diverse in gender.

Table 4 Demographical information.

Category Frequency Percentage
Gender Male 223 53.6
Female 193 46.4
Total 416 100
Education High school/diploma 7 1.7
Bachelor 207 49.8
Master 194 46.6
Doctor 8 1.9
Total 416 100
Age 18–25 57 13.7
26–35 163 39.2
36–45 171 41.1
46 and above 25 6.0
Total 416 100

Measurement Model

The study first confirmed the samples' adequacy using the Kaiser–Meyer–Olkin (KMO) test, and the KMO score was 0.914, which exceeded the cutoff value of 0.8. After ensuring the samples' adequacy, the central concern of common method bias (CMB) was addressed by adopting Harman's single factor test. The first factor explained the total variance after categorizing all items into eight subgroups below the threshold value of 50%.

The validity and reliability were ensured through Cronbach's alpha, average variance extracted (AVE), and composite reliability (CR). The values of Cronbach's alpha, CR, and AVE ranged from 0.967 to 0.882, 0.971 to 0.883, and 0.892 to 0.654, respectively. The values of Cronbach's alpha, CR, and AVE exceeded the threshold values of 0.7, 0.7, and 0.5, respectively, thus indicating the absence of reliability and validity issues. Subsequently, EFA was performed to ensure that the measures were according to the respective variables; the results of factor loading ranged from 0.717 to 0.866 and divided the total items into eight factors. The factor loading values exceeded the threshold value of 0.7, which guaranteed the absence of any factor loading issue. Table 5 presents the results of factor loadings, Cronbach's alpha, CR, and AVE.

Table 5 Results of factor loadings, Cronbach's alpha, composite reliability (CR), and AVE.

Sr. no Constructs Items Loadings Cronbach's alpha CR AVE
1 Better customer services BCS1 0.736 0.921 0.919 0.701
BCS2 0.764
BCS3 0.845
BCS4 0.852
BCS5 0.849
2 Personalization PR1 0.801 0.927 0.935 0.829
PR2 0.779
PR3 0.825
3 Advanced analytics AA1 0.807 0.915 0.917 0.785
AA2 0.754
AA3 0.733
4 Improved relational knowledge IRK1 0.830 0.967 0.971 0.892
IRK2 0.812
IRK3 0.842
IRK4 0.866
5 Customer interaction management capability CIMC1 0.765 0.917 0.913 0.679
CIMC2 0.776
CIMC3 0.809
CIMC4 0.771
CIMC5 0.761
6 Customer relationship upgrading capability CRUC1 0.762 0.882 0.883 0.654
CRUC2 0.735
CRUC3 0.741
CRUC4 0.815
7 Customer win-back capability CWBC1 0.717 0.902 0.905 0.712
CWBC2 0.884
CWBC3 0.718
CWBC4 0.875
8 Perceived sales performance PSP1 0.768 0.884 0.885 0.720
PSP2 0.792
PSP3 0.804

The study elaborated on the square root of AVE to ensure the discriminant validity, as suggested by a prior study. As shown in Table 6, the values of the square root of each construct exceeded those of all interconstructs linked with the variable; hence, no discriminant validity issue existed.

Table 6 Discriminant validity.

BCS CIMC IRK CWBC CRUC PR PSP AA
BCS 0.837
CIMC 0.447
***
0.824
IRK 0.369
***
0.579
***
0.944
CWBC 0.363
***
0.463
***
0.361
***
0.844
CRUC 0.396
***
0.537
***
0.593
***
0.363
***
0.809
PR 0.395
***
0.501
***
0.535
***
0.387
***
0.550
***
0.910
PSP 0.437
***
0.535
***
0.519
***
0.514
***
0.537
***
0.516
***
0.848
AA 0.453
***
0.559
***
0.599
***
0.409
***
0.632
***
0.587
***
0.556
***
0.886

The values given in bold represent the square root of the AVE of each variable. Significance level:  ***p<0.001.

CFA was conducted to verify the consistency and validity of the research model's constructs through AMOS v25. The results of CFA showed that the value of CMIN/DF was 1.365, and the values of CFI, NFI, RFI, IFI, and TLI were 0.989, 0.960, 0.953, 0.989, and 0.987, respectively. The values of RMSEA, PClose, and SRMR were 0.030, 1.000, and 0.061, respectively. According to Hair et al., the threshold point for CMIN/DF is between 1 and 3; SRMR should be less than 0.08; RMSEA should be less than 0.06; PClose should exceed 0.05; and CFI, NFI, RFI, IFI, and TLI should be higher than 0.90. All the values mentioned above exceeded the cutoff values, thus ensuring the model's good fitness.


Structure Model

The study subsequently performed path analysis. The value of CMIN/DF was 1.099. The values of CFI, NFI, RFI, IFI, and TLI were 0.999, 0.987, 0.965, 0.999, and 0.997, respectively. The values of RMSEA, PClose, and SRMR were 0.015, 0.960, and 0.036, respectively. The values were within the acceptable range and ensured the good fitness of the model. Figure 2 presents the path coefficient and significance level of the proposed research model. According to the results, BCS was positively associated with CIMC (β = 0.198, p<0.001)), CRUC (β = 0.095, p<0.050), CWBC (β = 0.282, p<0.001), and PSP (β = 0.104,  p < 0.050). Personalization was positively associated with CIMC (β = 0.125, p<0.050), CRUC (β = 0.214, p < 0.001), CWBC (β = 0.156, p < 0.010 ), and PSP (β = 0.129, p < 0.050). AA was positively associated with CIMC (β = 0.189, p < 0.001), CRUC (β = 0.258, p < 0.001), CWBC (β = 0.137, p < 0.050), and PSP (β = 0.117, P < 0.050). IRK showed significant relationships with CIMC (β = 0.292, p < 0.001 p < 0.001), CRUC (β = 0.257, p < 0.001), CWBC (β = 0.137, p < 0.010), and PSP (β = 0.106,p < 0.050). Furthermore, CIMC was positively associated with PSP (β = 0.105, p < 0.050), CRUC had a significant impact on PSP (β = 0.106, p < 0.050), and CWBC had a significant impact on PSP (β = 0.198, p < 0.001). Moreover, the adjusted R-square (R2) of CIMC was 0.41, indicating that the predictor variables caused 41% of the variance of CIMC. Furthermore, the R2 values of CRUC, CWBC, and PSP were 0.45, 0.32, and 0.42, respectively.

Figure 2 SEM results of research model.

Figure 2 SEM results of research model.

Mediating Analysis Results

To test the mediating roles of CIMC, CRUC, and CWBC among the different relationships of variables, this study used the bootstrapping method on 2000 bootstrap samples at 95% confidence level to measure the indirect effects. In this study, the specific indirect relations need not be measured due to the complexity of the model and the relations. Therefore, the bootstrapping method that measures specific indirect effects, as suggested by Brown, was applied. Table 7 presents the results of the specific indirect effects of the mediating variables. CIMC partiality mediated the impact of BCS on PSP (β = 0.120, p < 0.050), personalization and PSP (β = 0.113, p < 0.050), AA and PSP (β = 0.119, p < 0.050), and IRK and PSP (β = 0.130, p < 0.050). CRUC partially mediated the impact of BCS on PSP (β = 0.111, p < 0.050), personalization and PSP (β = 0.124, p < 0.050), AA and PSP (β = 0.128, p < 0.050), and IRK and PSP (β = 0.129, p < 0.050). CWBC partially mediated the impact of BCS on PSP (β = 0.155, p < 0.001), personalization and PSP (β = 0.131, p < 0.010), AA and PSP (β = 0.127, p < 0.010), and IRK and PSP (β = 0.127, p < 0.010). The results indicated that CRM capabilities (CIMC, CRUC, and CWBC) significantly partially mediated the relationships between BDA measuring variables (BCS, PR, AA, and IRK) and PSP.

Table 7 Bootstrapping results to measure the specific indirect effects.

Variables Bootstrapping results
H. No Independent Mediator Dependent Lower bounds Upper bounds Indirect effects Results
H14a Better customer services Customer interaction management capability Perceived sales performance 0.001 0.045 0.120* Supported
H15a Better customer services Customer relationship upgrading capability Perceived sales performance 0.001 0.030 0.111* Supported
H16a Better customer services Customer win-back capability Perceived sales performance 0.029 0.099 0.155*** Supported
H14b Personalization Customer interaction management capability Perceived sales performance 0.001 0.037 0.113* Supported
H15b Personalization Customer relationship upgrading capability Perceived sales performance 0.003 0.055 0.124* Supported
H16b Personalization Customer win-back capability Perceived sales performance 0.013 0.058 0.131** Supported
H14c Advanced analytics Customer interaction management capability Perceived sales performance 0.002 0.051 0.119* Supported
H15c Advanced analytics Customer relationship upgrading capability Perceived sales performance 0.004 0.065 0.128* Supported
H16c Advanced analytics Customer win-back capability Perceived sales performance 0.008 0.058 0.127** Supported
H14d Improved relational knowledge Customer interaction management capability Perceived sales performance 0.001 0.069 0.130* Supported
H15d Improved relational knowledge Customer relationship upgrading capability Perceived sales performance 0.003 0.061 0.129* Supported
H16d Improved relational knowledge Customer win-back capability Perceived sales performance 0.007 0.059 0.127** Supported

Significance level * p < 0.050; ** p < 0.01; *** p < 0.001.