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Open University of Cyprus 

Faculty of Economics and 

Management 

 
Postgraduate Programme of Study Business Administration (MBA) 

 
 
 

Master’s Dissertation 

 
 
 
 

 
 
 
 
 
 

The Application of Marketing Theory and its Implementation by SMEs in Cyprus 
 

Georgios Tsantekidis 
 
 
 

Supervisor 
Dr. Paris Cleanthous 

 
 
 
 
 
 
 
 
 
 
 

December 2025



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Open University of Cyprus 

Faculty of Economics and 

Management 

 
 

Postgraduate Programme of Study Business Administration (MBA)  
 

 
 
 

Master Thesis 

 
 
 
 

The Application of Marketing Theory and its Implementation by SMEs in Cyprus 
 

Georgios Tsantekidis 
 

Supervisor 
Dr. Paris Cleanthous 

 
 
 
 

This Master’s Dissertation was submitted in partial fulfillment of the requirements for the 
award of the postgraduate title 

      on Master degree in Business Administration 
by the Faculty of Economics and Management 

of the Open University of Cyprus. 
 
 
 
 

December 2025 



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BLANC PAGE



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Summary 

I choose this topic for my dissertation to see how medium-sized enterprises (SMEs), in 

Cyprus use digital marketing practices and what affects SME digital maturity. I used a 

data driven design and an online questionnaire to look at five areas: adoption, benefits that 

SMEs see, barriers, use of tools and whether SMEs have a digital strategy. The results 

show that most SMEs have a presence but SME digital maturity stays at an average level. 

I think the study helps SMEs see what they need to do. In my experience the use of 

marketing tools predicts digital adoption. In my experience the perception of benefits 

predicts adoption. Barriers such as lack of time limited expertise and insufficient budget 

make it harder to use marketing tools. The results show that businesses, with a digital 

strategy achieve a higher level of maturity and see greater value from digital marketing. 

Larger SMEs adopt practices more effectively than micro‑enterprises. Overall, the study 

highlights the need for improved digital knowledge, strategic planning, and gradual 

integration of tools to enhance SMEs’ competitiveness. The conclusions provide practical 

recommendations for Cypriot SMEs and suggest directions for future research on digital 

transformation. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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Acknowledgements 

I would like to thank and express my gratitude to my professor Dr. Paris Cleanthous, for 

his invaluable assistance and guidance throughout the preparation of this thesis. I also 

express my appreciation to my family for their continuous support and I am particularly 

grateful to my wife Alexandra, for her patience and encouragement. Finally, I dedicate 

this achievement to my young daughter Anastasia, whose presence is a constant source 

of inspiration and motivation. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  



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Table of Contents 
Summary ................................................................................................................ 4 

Acknowledgements ................................................................................................. 5 

Chapter 1 ................................................................................................................... 8 

1.1 Introduction ................................................................................................... 8 

1.2 History and Context (Background) .................................................................. 8 

1.3 Consideration and Necessity of Research ......................................................... 9 

1.4 Purpose of the Research .................................................................................10 

1.5 Importance of Research .................................................................................10 

1.6 Methodological approach ...............................................................................11 

Chapter 2 ..................................................................................................................13 

2.1 Literature review .................................................................................................13 

2.2 The Concept and Evolution of Marketing ..............................................................14 

2.3 Digital Marketing: Definition, Nature and Development ........................................15 

2.4 Digital Marketing Tools and Their Application in SMEs ........................................15 

2.5 The Role of Digital Marketing in SMEs .................................................................17 

2.6 Challenges and Barriers to Digital Marketing Adoption in SMEs ...........................18 

2.7 Customer Behavior ..............................................................................................19 

2.8 Digital Marketing tools .........................................................................................20 

2.9 Trust, Credibility and Advertising Skepticism .......................................................22 

2.10 Gap in Existing Literature ..................................................................................22 

Chapter 3 Methodology and Hypotheses .....................................................................24 

3.1 Introduction .........................................................................................................24 

3.2 Research Design and Approach .............................................................................24 

3.3 Sampling and data collection ................................................................................25 

3.4 Research Instrument (Questionnaire Structure) ....................................................26 

3.5 Data Analysis .......................................................................................................27 

3.6 Research Hypotheses ............................................................................................28 

Chapter 4 Presentation of Results and Analysis ..........................................................30 

4.1 Introduction .........................................................................................................30 

4.2 Section A Business Information (Questions 1-5) .....................................................30 

4.3 Section B Digital Maturity & Implementation (Questions 6-17) ..............................33 

4.4 Section C Perceived Benefits of Digital Marketing (Questions 18-22) ......................41 

4.5 Section D Barriers to Implementation (Questions 23-28) ........................................44 

4.6 Section E Use of Digital Marketing Tools (Questions 29-35) ...................................47 

4.7 Section F Open Question (Question 36) .................................................................50 



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4.8 Scale reliability (Cronbach’s Alpha) ......................................................................51 

4.9 Creating Composite Indicators .............................................................................51 

4.10 Descriptive Statistics of Indicators ......................................................................52 

4.11 Pearson Correlations Testing Relationships Between Indicators ...........................52 

4.12 Testing hypotheses H1-H5 ...................................................................................53 

Chapter 5 ..................................................................................................................58 

5.1 Introduction and Discussion of results ...................................................................58 

Chapter 6 ..................................................................................................................60 

6.1 Conclusion and Recommendations ........................................................................60 

Chapter 7 ..................................................................................................................62 

Appendices ................................................................................................................62 

A. Survey Questions ..................................................................................................64 

Bibliography .............................................................................................................68 

 

  



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Chapter 1 
1.1 Introduction 

So, in the last few years, digital changes have really transformed the business world, have 

create new opportunities of communication, advertising and development. In the centre 

of this transition is located the digital marketing, a sum of strategic and tools that allowing 

to businesses to attract new customers more targeted, economically and more efficiently 

that then traditional ways. The digital marketing is not just a improvement of existing 

practises, but a completely new way of thinking regarding the presence, the advertising 

and the relationships between businesses and customers (Chaffey & Ellis-Chadwich, 

2022). 

For small and medium sized enterprises, which constitute the centre of Cypriot economy, 

the digital marketing offers very important opportunities, as example the access to new 

markets, competitiveness against larger companies, enhancing brand awareness and the 

ability to conduct marketing on a limited. However, instead of multiple advantages, the 

real implantation of digital marketing from small and medium enterprises of Cyprus 

remains limited and often incomplete. 

The current decertation examines how the Cypriot small and medium sized companies 

adopt and impalement these practises of digital marketing to their companies, with that 

difficulties they must figure out and what level of digital maturity are they. Through 

empirical research and data analysis, an integrated understanding of digital is being 

attempted to understand the current situation and a range of trends to enhance the digital 

transformation in Cyprus. According to Johnson (2022), digital marketing strategies have 

significantly reshaped how business engage with consumers.  

 

1.2 History and Context (Background) 
Cyprus, as a small island economy, characterized from high dependence from the services 

sector and from family businesses. The adoption of digital technologies in this kind of 

ecomical environment are usual slower compared to larger economies, mainly because of 

limited resources, low level of specialized knowledge and lack of organized procedures 



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(OECD, 2022). As noted by Smith (2022), organized procedures are crucial for the 

successful implementation of digital strategies in small island economies. 

 

The digital transformation is it now a must and not a option. The new technologies 

appearing and the dependence of customers from internet and continuously development 

of social media they have create a new business model environment where the online 

presence it is a essential for survival and development. According to Smith (2024), having 

a robust online presence is no longer just an option but a necessity of any business. In 

today’s landscape of business and digital marketing, a solid online footprint is essential 

for a company’s survival and growth. 

 

The Cypriot context: 

• In our days many small and medium sized business are using social media 

platforms 

• Very few companies apply SEO, CRM or any tool for advanced analytics 

• Many of them are working without any marketing strategy plan 

• And the implantation is applied without any substance or structure, just on a case 

by case basis, and not in systematic way. According to Johnson (2022), 

implementation processes without a structural framework often leads to 

inconsistencies and inefficiencies. 

This gap between the adoption and the implementation of digital marketing it constitutes 

and main point of this decertation. 

1.3 Consideration and Necessity of Research 
Small and medium-sized enterprises in Cyprus face increasing challenges in terms of 

digital transition, limited technology and limited resources make their adoption of digital 

marketing even more difficult. There is a gap in the literature on how Cypriot SMEs 

perceive and implement digital marketing. The low trust to advertising and to the 

institutions, further complicates the effectiveness of digital channels. And this leads to a 

lack of scientific data on how SMEs make decisions regarding digital tools, which creates 

a need for new empirical research. According to European Commission (2023) Low level 

of digital maturity of SMEs in the EU and Cyprus. 



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And this is where the necessity of research comes in and how it can provide an insight 

into how SMEs perceive the importance of digital marketing and what its direct benefits 

are. The research will help in understanding the degree of readiness of SMEs regarding 

marketing strategies, and the results will support both the academic community and 

professionals in Cyprus. Because it will result in contributing to the formulation of 

practical suggestions for more effective, more targeted and more reliable digital marketing 

strategies. According to Papademetriou & Ioannou (2021) Cyprus is below the EU average 

in digital integration. 

 

1.4 Purpose of the Research 
The main purpose of the thesis is to examine to what extent small and medium-sized 

enterprises in Cyprus understand and apply digital marketing in their businesses. In 

particular, the degree of adoption of specific digital marketing tools will be investigated, 

to what extent they apply them, what obstacles they face, what advantages they perceive. 

And also to identify knowledge gaps between theory and actual application. Regarding 

Buhalis & Volchek (2021) – Digital transformation is critical for the development of 

SMEs. 

 

1.5 Importance of Research 
This thesis aims to present how important digital marketing is in terms of its academic 

importance, practical importance and social importance. Taking the first, it extends the 

literature on digital marketing to small markets, examines whether the implementation is 

taking place and not just the adoption, creates a basis for further research. Based on cystat 

(2023) the role of SMEs in the Cypriot economy is very crucial. 

 

In terms of practical importance, it will help entrepreneurs to see where they are lagging 

behind and where they can improve, the importance for the state to design support 

programs, to consultants to identify points of intervention, etc. According to 

Papademetriou & Ioannou (2021) – Gaps in the digital skills of Cypriot businesses. 

 



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And finally, in terms of social importance, strengthening SMEs could lead to an increase 

in their competitiveness, improving the quality of their services, promoting innovation 

and boosting employment. The research enhances the understanding of digital 

transformation in SMEs and provides practical information that can be used to improve 

digital marketing strategies. 

 

This thesis aims to present how important digital marketing is in terms of its academic 

importance, practical importance and social importance. Taking the first, it extends the 

literature on digital marketing to small markets, examines whether the implementation is 

taking place and not just the adoption, creates a basis for further research. Based on cystat 

(2023) – the role of SMEs in the Cypriot economy is very crucial. 

 

In terms of practical importance, it will help entrepreneurs to see where they are lagging 

behind and where they can improve, the importance for the state to design support 

programs, to consultants to identify points of intervention, etc. According to 

Papademetriou & Ioannou (2021) – Gaps in the digital skills of Cypriot businesses. 

 

And finally, in terms of social importance, strengthening SMEs could lead to an increase 

in their competitiveness, improving the quality of their services, promoting innovation 

and boosting employment. The research enhances the understanding of digital 

transformation in SMEs and provides practical information that can be used to improve 

digital marketing strategies. 

 

1.6 Methodological approach 
The methodological research was based on quantitative research, with the aim of 

recording and analyzing the degree of digital maturity of small and medium-sized 

enterprises in Cyprus, the perceived benefits, the obstacles they face and the practical 

applications in digital marketing. For the collection of data, a structured questionnaire was 

designed, which was divided into six sections. With the first section concerning the 

characteristics, i.e. in which sector the company operates, its size, years of operation, etc. 

In the second section, the degree of adoption of digital marketing and digital maturity was 

examined. In the third section, information was collected on the benefits of using digital 



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marketing by small and medium-sized enterprises. In the 4th section, it explores the main 

obstacles and challenges that SMEs face, such as lack of know-how or budget, etc. In the 

5th section, it examines the knowledge and use of some specific digital marketing tools, 

offering a comparative picture of the real picture of the actual application. And finally, the 

6th section includes an open question that allows for the qualitative capture of the most 

important challenges that SMEs in Cyprus face. According to Bryman (2016) notes that 

questionnaires are an effective tool for collecting standardised data from large samples in 

a consistent and replicable way. 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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Chapter 2 
2.1 Literature review 

In this chapter we will look at the basic concepts and forms of marketing. We will also 

explore and see how these have evolved over time, and especially after the rapid 

development of digital technologies. Our goal is to provide a precise understanding of 

how businesses today, especially small and medium-sized enterprises (SMEs) that use 

both traditional and digital tools to communicate with their audience and advertise their 

products or services. This shift towards the digital environment is not just a change in 

communication channels, but it is changing enormously the way marketing is designed 

and used. Digital tools are now a more affordable and accessible option compared to 

traditional media, offering wider reach and measurable performance at relatively low cost 

(Tiago & Veríssimo, 2014). 

Small and medium-sized enterprises in Cyprus are the majority of the largest proportion 

of businesses traditionally and this is also true across Europe. But they often operate under 

significant constraints. Constraints such as budget, lack of qualified staff and low levels 

of digital education, put obstacles in the way of many small businesses adopting and 

implementing digital marketing effectively. 

And also for this reason, their adoption of digital practices is often gradual and not always 

based on a clear strategic plan, something that is also highlighted in the literature 

(Gilmore, Gallagher & Henry, 2007). At the same time, the continuous development of 

new technologies, the emergence of new digital platforms and constant changes in 

algorithms create a dynamic environment in which businesses must adapt in order to 

remain competitive. 

In this context, the literature review aims to outline the basic ideas around digital 
marketing and examine the available tools and how they are usually used, 

And also to discuss the role that digital practices play in the operation and development 

of SMEs in terms of promoting their services and as organizations within management. 

The chapter also examines how digital environments behave, their attitudes towards 

online content and the factors that shape their purchasing decisions and their loyalty to a 

market. And finally, it mentions the main challenges that organizations face when trying 



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to adopt digital marketing strategies, providing the basis for the analysis that follows in 

the following sections of the thesis. 

 

2.2 The Concept and Evolution of Marketing  

Marketing is the core function of the company. Marketing looks at what the consumer 

needs. Marketing creates the products or services that meet those needs. Kotler says 

marketing is a process of understanding the consumer shaping the offering and building a 

relationship that benefits both the firm and the consumer. Marketing used to focus on the 

sale. Marketing now includes the consumer psychology, the market research, the 

communication planning and the long term brand development. I have watched marketing 

grow from a transaction to a broad strategy. Earlier marketing practices relied heavily on 

mass media, such as print, television, and radio, where communication flowed mainly in 

one direction and feedback from consumers was limited. As markets became more 

competitive, firms began to adopt more customer-oriented approaches, recognising that 

understanding consumer expectations and behaviours could lead to more effective 

positioning and differentiation. 

Marketing changes follow the changes, in technology and society. I notice that when 

digital tech entered life the traditional marketing model started to grow and change. The 

growth of the Internet and the common use of tools changed how the consumers got 

information and how the consumers dealt with the brands. Marketing slowly left same 

messages and turned to custom focused ways of talking. This transition has been 

particularly meaningful for SMEs, as it opened the possibility for smaller firms to compete 

in ways that were previously accessible only to larger organisations with substantial 

advertising budgets. Digital tools allowed SMEs to analyse consumer behaviour more 

accurately, experiment with low-cost promotional activities, and measure performance in 

real time, something that traditional marketing could rarely offer. 

Overall, the evolution of marketing has laid the foundation for the emergence of digital 

marketing as a distinct and influential field, reshaping how businesses operate in 

increasingly dynamic and competitive environments 

 



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2.3 Digital Marketing: Definition, Nature and 
Development 

Digital marketing has become a part of the business activity today. Digital marketing 

changes how the companies talk to the customers and how the customers talk to the 

brands. Definitions differ in the articles. Digital marketing is generally seen as the use of 

the technologies the platforms and the online communication channels to advertise the 

products and the services and to talk with the target audiences in two‑way ways. Chaffey 

and Ellis-Chadwick (2019) emphasise that digital marketing involves planned activities 

designed to create value through online channels, combining technology with marketing 

principles to improve customer experience and business performance. 

I see that digital marketing is not, like marketing. Digital marketing lets consumers talk 

back get feedback away and send messages that match specific interests. The rise of media 

platforms, search engines, email automation and content driven strategies builds a space 

where consumers control what information they see. Constantinides (2014) points out that 

the digital environment gives consumers power. The digital environment lets consumers 

compare choices post reviews and shape brand reputation in communities. As a result, 

businesses are required not only to communicate effectively but also to monitor and adapt 

constantly to consumer expectations. 

The growth of marketing speeds, up because new technology moves fast and digital tools 

become part of daily life. Tiago and Veríssimo (2014) say that firms pick strategies more 

often. Digital strategies give solutions and clear performance numbers. Small firms find 

performance numbers very useful. Digital tools also help firms track results. At the time 

algorithms, analytics tools and digital platforms keep changing. This change makes the 

market a moving target. Organisations have to stay flexible and try ideas. This ongoing 

development has transformed digital marketing from a supplementary activity into a 

strategic necessity for firms aiming to remain competitive in digitally driven markets. 

 

2.4 Digital Marketing Tools and Their Application in 
SMEs 
Digital marketing uses tools and techniques that help organisations reach customers attract 

customers and keep customers through digital channels. Each tool has a purpose. When 



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the tools are used together the tools give SMEs the chance to build visibility, show value 

and measure performance exact than old methods. Search Engine Optimisation (SEO) is 

a tool that many people use. Search Engine Optimisation (SEO) tries to make a website 

more visible, in search engine results. According to Chaffey and Smith (2017), SEO 

enables firms to capture organic traffic by aligning website content with user search 

behaviour, which is particularly beneficial for SMEs that rely on cost-effective 

promotional methods. 

Social media marketing lets businesses talk directly with customers on the platforms like 

Facebook, Instagram and TikTok. I have seen that social media marketing gives chances 

for engagement, community building and real‑time communication. Kaplan and Haenlein 

(2010) say social media marketing is a channel for the smaller firms that rely on personal 

customer relationships. Email marketing stays a tool, for keeping the ongoing customer 

communication. I also notice that email marketing helps the businesses stay in touch with 

the customers over time. Ellis-Chadwick and Doherty (2012) highlight that email 

campaigns can be tailored to specific audience segments, offering SMEs a low-cost way 

to deliver targeted messages and encourage repeat purchases. 

I have seen content marketing work as a part of the digital strategy. Content marketing 

focuses on creating relevant and engaging material that draws the customers and builds 

the brand credibility. Pulizzi (2012) says that well‑structured content helps the businesses 

earn the trust shape the consumer decisions and boost the brand identity. I have also used 

pay‑per‑click (PPC) advertising, for the SMEs. Pay‑per‑click (PPC) advertising gives the 

SMEs a way to reach the targeted audiences instantly. Pay‑per‑click (PPC) advertising 

charges when the users click on the ads. As argued by Google (2020), PPC campaigns 

offer measurable results and flexible budget control, making them highly suitable for firms 

with limited financial resources. 

Overall, digital marketing tools provide SMEs with a diverse set of opportunities to 

promote their offerings, enhance customer engagement and make data-driven decisions. 

Their application, however, requires a level of digital literacy and strategic planning, 

challenges that are examined further in the following sections. 

 



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2.5 The Role of Digital Marketing in SMEs 
Digital marketing helps the medium-sized enterprises grow and stay competitive. Digital 

marketing gives the medium-sized enterprises chances that used to belong only to big 

companies with lots of money. The medium-sized enterprises often work with tight 

budgets and small teams. Digital tools let the medium-sized enterprises reach more people 

show what the small and medium-sized enterprises offer and keep a steady market 

presence. I have seen digital tools make it easier for the medium-sized enterprises to talk 

to customers online. As noted by Durkin, McGowan and McKeown (2013), digital 

channels allow SMEs to expand their market reach beyond local boundaries and engage 

with customers in a more interactive and personalised manner, something that is often 

difficult to achieve through conventional media. 

Digital marketing gives SMEs a way to see outcomes. I notice that traditional advertising 

often does not show results. The digital platforms give data that let firms understand 

customer behaviour let firms evaluate how campaigns work and let firms adjust their 

strategies as needed. Digital marketing makes measurement easy. The data‑driven 

approach lets SMEs make decisions and lets SMEs allocate resources more efficiently 

(Leeflang et al. 2014). In addition, the flexibility of digital tools allows small businesses 

to experiment with different marketing techniques, test new ideas and adapt rapidly to 

changing market conditions. 

Digital marketing helps small businesses strengthen customer relationships. Customer 

relationships matter a lot, for SMEs because SME success often depends on repeat 

business and customer loyalty. Social media posts, personalised emails and regular content 

help small businesses build trust and keep talking with the audience. In my experience 

digital marketing lets small businesses stay in touch with customers. Harrigan, Miles and 

Fang (2020) report that SMEs that actively talk to customers on platforms develop 

stronger brand attachment and higher customer satisfaction. This enhanced engagement 

contributes not only to customer retention but also to positive word-of-mouth, which 

remains one of the most influential promotional mechanisms for small enterprises. 

Overall, digital marketing supports SMEs by enhancing visibility, improving customer 

engagement and enabling more strategic decision-making. Its role has become 

increasingly important in a competitive environment where businesses must remain agile 

and responsive to market trends. The following section explores the main challenges that 



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SMEs face when attempting to adopt and implement digital marketing practices 

effectively. 

2.6 Challenges and Barriers to Digital Marketing 
Adoption in SMEs 
Despite the documented benefits of digital marketing, its adoption by small and medium-

sized enterprises (SMEs) remains limited, which has led many researchers to investigate 

the barriers and challenges that small businesses face in the process of transitioning to 

digital practices. International literature consistently reports that the main barriers are 

related to resource shortages, insufficient know-how, low awareness of the benefits and 

organizational constraints (Hanafizadeh et al., 2012; Omar et al., 2011; Resnick et al., 

2011). 

According to experience the lack of time is a barrier, for SME owners. SME owners juggle 

jobs and SME owners cannot spare the capacity to learn and use digital tools (Resnick et 

al., 2011). The lack of know‑how and skills is another barrier. Many companies do not 

have technical support or experience to run digital campaigns (Omar et al., 2011). Limited 

familiarity with digital marketing often leads to a misconception that its implementation 

is complicated, time-consuming or high-risk. 

The lack of resources is an important barrier. Many SMEs see the move to marketing as a 

big expense. SMEs have to pay ad agencies or buy tools. The costs often stop the move to 

marketing (Hanafizadeh et al., 2012). I notice that many SMEs do not understand the 

money and work benefits of marketing. The lack of understanding reduces the intention 

to adopt marketing. In the study, by Omar et al. (2011), 50% of SMEs in Malaysia were 

unaware of the benefits in terms of cost savings and efficiency, which significantly 

reduced the willingness to implement. 

I have read that the literature also reports barriers. One barrier is compatibility of digital 

practices with the existing business culture the existing goals and the existing routines of 

the company (Alam et al. 2011). Companies that do not have a culture of innovation or a 

positive attitude towards technology show resistance to the adoption of new digital tools. 

I see the resistance, in practice.  

Researchers have reported that the perceived ease of use is a factor (Alam et al., 2011). 

Other researchers say that the perceived ease of use matters less because the many SMEs 



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choose to outsource specific digital activities (Omar et al., 2011). From my experience the 

influence of factors such, as advertising and digital services can be a help or a barrier.  

When entrepreneurs do not see the value of marketing entrepreneurs do not adopt digital 

marketing. Even if entrepreneurs think the process is simple or easy entrepreneurs still do 

not adopt marketing (Omar et al., 2011). Overall, the above barriers explain why the 

adoption of digital marketing by SMEs remains at an early stage and why these businesses 

often lag behind larger organizations in the strategic use of digital technologies. 

2.7 Customer Behavior 
In today's digital landscape, it has changed significantly in recent years, which directly 

affects the way in which businesses, especially small and medium-sized enterprises, 

develop and plan their digital marketing strategies. Consumers today have the privilege 

of having full access to a huge amount of information, services and products through 

online channels, which gives them the advantage in the decision-making process (Kotler 

& Keller, 2016). This ability to compare and research the market, such as comparing 

prices, ratings and also being able to see reviews from other users, gives them this 

advantage and makes them more informed and prepared before making a purchase. 

The literature indicates that today's consumers are no longer limited to local markets, but 

also search for products and services on a global scale, through online platforms and 

digital tools (Hanafizadeh et al., 2012). This significant change triggers increased 

competition among businesses and requires them to take measures and provide 

personalized strategies, such as providing relevant and immediate value of information, 

in order to achieve the attention and keep the interest of their customers. Such as 

specialization and personalization and or adaptation of content based on the needs, 

preferences and behavior of customers are key expectations of today's digital consumer 

(Lamberton & Stephen, 2016) 

The constantly changing behavior of consumers makes it a key element that drives 

businesses, and especially SMEs, to integrate digital marketing technologies. Nowadays, 

consumers carry out a very important part of the customer journey process online, from 

the initial information search, comparisons, etc. to the evaluation of alternative options 

and the final purchase (Pentina et al., 2012). Also, modern consumers strengthen their 

online presence through content creation, their active participation in various social media 

platforms through their expression of interest, communication, exchange of opinions, and 



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exchange of messages with other users (Kaplan and Haenlein, 2010). These forms of 

behavior make and strengthen the digital influence in decision-making very important, 

and make social proof an important and powerful factor that changes and influences 

consumers' preferences and decisions. 

The significant dependence of modern consumers on the internet regarding information 

about future purchases they want to make has direct consequences for SME businesses. 

Those businesses that do not appear on the internet or do not have some kind of digital 

presence will face a significant disadvantage. As the majority of them (customers) and 

especially the younger generations tend to trust more businesses that have an online 

presence, active and professional online identity (Tiago and Verissimo, 2014). Also, the 

younger generations such as millennials, Genz show an even higher dependence on digital 

sources of information, and this will further enhance the importance of digital marketing 

for SMEs in the future years. 

In conclusion, consumer behavior in the modern digital environment is characterized 

mainly by increased access to information, the use of various media channels, a significant 

dependence on reviews and clear social influence, and also the demand for direct 

communication and expectations for personalization. All these factors exert significant 

pressure on SMEs, and they in turn are called upon to respond to the modern online 

environment and the new needs and habits that consumers, their customers, acquire. 

 

2.8 Digital Marketing tools 
In digital marketing, there are a multitude of tools that businesses have at their disposal to 

utilize, in modern business communication, businesses have the ability to reach their 

audience in a much more effective and clearly economical way. Each tool has its own 

characteristics and different operation, and is used depending on the goals set by the 

business. Below are presented the most important tools that businesses use today, and 

especially small and medium-sized businesses. 

• Search Engine Optimization (SEO) 
One of the most important tools that businesses have at their disposal is SEO, 

which concerns the optimization of their website so that it appears higher in search 

engine results, such as on Google. In practice, how it works, when there is a very 

good set up with keywords etc., which when the user uses to find what they are 



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looking for in search engines, the website when it is closer to the keywords appears 

higher, and in this way organic traffic increases without additional advertising 

costs. So, for small and medium-sized businesses, SEO is one of the most 

economical ways of advertising. 

• Social Median Marketing 
Social networks such as Facebook, Instagram, TikTok, etc., offer businesses the 

opportunity to create their own company pages and start advertising their products 

or services. In this way, they create content, presenting their services to the public 

and strengthening their relationship with customers, interaction on social media 

helps to create trust and immediate response. 

• Email Marketing 
Email marketing consists of sending informative messages, offers or even 

information about new products or services to people who have already expressed 

some kind of interest in them. Email messages can be personalized according to 

the needs of the prospective customer, it is one of the most economical and 

effective practices for the business to have and maintain communication with the 

customer. 

• Content Marketing 
Content marketing is mainly based on the creation of attractive content, which can 

be videos, articles or graphic posts on social media. The goal is to keep the user's 

interest as long as possible, and to promote their products and services, the context 

can sometimes have a humorous style and sometimes be free and built by the 

business itself, but it requires creativity in this part, and technical knowledge of 

data and trend analysis. Through quality content, businesses can improve the 

overall image of their brands. 

• Pay per click Advertising (PPC) 
Pay per click advertising is an advertising mechanism that allows businesses to 

display targeted ads and pay only when the user clicks on their ad. This has the 

positive effect of having control over advertising budgets, mainly serving 

businesses that want to have quick visibility results and increase their traffic. 

 



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2.9 Trust, Credibility and Advertising Skepticism 
Trust is one of the key elements of the relationship that develops between a consumer and 

a business, especially in a digital environment where information is abundant and 

constantly changing. According to classical theoretical models, trust develops when the 

consumer perceives the source from which he gets the information as honest, reliable and 

competent (Mayer, Davis & Schoorman, 1995). When an online advertisement is credible 

and is associated in an adult way with the brand itself as well as with the quality of the 

advertisement, transparency and accuracy of the information, then consumers tend to be 

more predisposed to evaluate it positively and pay more attention (Newell & Goldsmith, 

2001) 

Also, an important place in the literature is occupied by the term “Advertising scepticism”, 

which refers to a tendency of consumers to doubt whether what is stated in advertising is 

true or the motives behind an advertisement, that is, what an advertisement hides. In 

essence, this scepticism is an attitude of consumers that affects them as to whether an 

advertising effort is convincing or credible (Obermiller & Spangenberg, 1998). Especially 

in the digital environment, where advertisements are almost everywhere and there is 

intense and excessive exposure of the consumer to content, and the repetition of 

advertisements and the presence of unwanted or inappropriate advertisements, which 

often create fatigue and thus reduce trust in advertisements. 

For small and medium-sized enterprises it is very important to have a good relationship 

between trust, credibility and advertising scepticism because this directly affects the 

effectiveness of an advertisement. Because high credibility reduces advertising scepticism 

and this in turn contributes to a more positive attitude towards the advertising message 

(Mackenzie and Lutz, 1989). While in another case where trust is at low levels, consumers 

tend to ignore or even reject advertisements, and this significantly reduces the rates of 

interaction with the advertising material or to purchase the product or service. 

 

2.10 Gap in Existing Literature 
Digital marketing has developed significantly in recent years, however, there are some 

gaps in the existing literature that need further investigation. There are many studies that 

generally examine the adoption of digital tools and the difficulties faced by businesses, 

but fewer focus specifically on small and medium-sized enterprises and the adoption 



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difficulties they face when implementing their strategies (Jones et. Al., 2014). Also, the 

international literature analyzes in depth issues such as trust, credibility and advertising 

disputation, but there is not enough research that examines how these elements affect 

consumer attitudes in small markets such as Cyprus (Tiago and Verissimo, 2014) 

One more gap is the lack of empirical data on trust to institutions, the purchase intention 

and advertisement credibility, especially in the context of digital marketing channels. 

While theoretical models are developed to explain consumer behavior online, few studies 

examine how these evaluation models apply to small and medium-sized enterprises and 

whether they reflect real market conditions (Chaffey and Ellis-Chadwick, 2019). Finally, 

there are few studies that simultaneously combine consumer trust, consumer doubt and 

how these influence their behavior in specific industries. 

 

 

 

 

 

 

 

 

 

 

 

 

 



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Chapter 3 Methodology 
and Hypotheses 
3.1 Introduction 
In this chapter analyse the methodological approach that was used to conduct the research 

on the adoption of digital marketing by small and medium-sized enterprises (SMEs) in 

Cyprus. The aim of the chapter is to present in a clear way the research design, the 

sampling procedure, the characteristics of the research tool, how the data was collected 

and the analysis techniques applied. The quantitative method was chosen appropriately, 

because it enables the measurement of systematic trends, practices and levels of digital 

maturity, and in this way we obtain objective data for further analysis. Therefore, the 

chapter analyses the context in which the research was conducted and sets the basis for 

the analysis and interpretation of the results in the following parts of the thesis. 

 

3.2 Research Design and Approach 
This study follows a descriptive and quantitative research design, and its purpose is to 

show the degree of adoption of digital marketing by small and medium-sized enterprises 

in Cyprus and to investigate the factors that influence the digital maturity of enterprises. 

The reason why the quantitative approach was chosen is that it allows for the systematic 

and objective assessment of the trends, practices and obstacles faced by small and 

medium-sized enterprises, and facilitates the statistical analysis of the various correlations 

between the variables. 

This research design is descriptive as it aims to capture the current state of digital 

marketing in SMEs and at the same time correlational, as it examines the relationship 

between adoption, benefits, barriers and familiarity with digital tools. The study was 

implemented as a cross-sectional survey, since the data were collected over a specific 

period of time through a self-administered questionnaire. 

The creation and use of a questionnaire was chosen as the main research method since it 

is the appropriate method for this population, because SMEs are able to respond quickly 

and anonymously, and in this way provide information regarding their digital practices. 



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Being in an online format makes it easy to use and allows the collection of an adequate 

sample of responses where they were collected from various sectors and levels of digital 

maturity.  

In summary, this design offers a volume of information for the evaluation of the research 

hypotheses and helps to create a framework for the interpretation of the relevant findings 

in the following chapters. 

 

3.3 Sampling and data collection 
The research population was selected from small and medium-sized enterprises in Cyprus, 

which constitute the majority of businesses. The questionnaire was sent to all sectors of 

the economy such as retail, services, tourism, catering, technology, etc. The goal was to 

attract people who are knowledgeable about digital marketing practices so that we could 

get their opinion, their roles included owners, managers, marketing staff. 

To collect the sample, the so-called convenience sampling was used in combination with 

snowball sampling, the reason being that this is a common approach in surveys targeting 

businesses, because access to complete lists of businesses is limited. The questionnaire 

was distributed mainly via email to associates, business owners, friends and acquaintances 

in my circle and participants were also encouraged to promote it to associates and other 

businesses in their network. However, a small campaign was also carried out on social 

media where a post was uploaded to various groups where the subscribers are 

professionals and market people, however, based on the results, it did not seem to have a 

good response since the responses received were few, the good thing is that the post had 

several likes and shares, which shows that those who responded to the post did not pass it 

by quickly but left an impression but did not proceed to answer the questionnaire. This 

method helped to gather at least a few responses from a gathering of participants from 

different provinces and sectors of activity. 

The questionnaire was created and the data were collected using Google Forms. This 

method was chosen for practical reasons, as Google Forms offers ease of use and access, 

reduces costs and allows participants to answer the questionnaire when they have free 

time and wish to do so. Before proceeding to answer the questionnaire, they were informed 

about the relevant purpose for which the questionnaire was created and were informed 

that it is completely anonymous and the purpose serves only academic purposes. 



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Therefore, all responses were collected anonymously and no identifying information of 

the company or the individual was requested in any case. 

The final sample has a sufficient number of businesses that responded to the questionnaire 

to conduct descriptive and correlational analysis, data collection lasted 4 weeks and this 

was a time period that was defined allowing for data analysis within the framework of a 

cross sectional design. 

 

3.4 Research Instrument (Questionnaire Structure) 
At this point we examine the research tool used in this present study, which is a self 

completed questionnaire, which was designed for the purpose of showing the degree of 

adoption of digital marketing by small and medium-sized enterprises in Cyprus, and also 

the assessment of the factors that influence this adoption. This questionnaire was created 

with reference to the relevant literature, the requirements of the relevant research and the 

structure of the digital maturity of small middle sizes enterprises, it consists of six thematic 

sections that we will see below (section A-F). 

Section A (Business Profile) 

The first section records basic characteristics of the business, such as industry, number of 

employees, years in operation, province, and participant role. This information allows for 

the categorization of the sample and the exploration of potential differences between 

businesses of different sizes and industries. 

Section B  (Digital Marketing Adoption (Maturity Scale) 

This section assesses the extent to which the company has adopted digital marketing 

activities. It includes 12 statements regarding practices such as social media use, content 

creation, online advertising, website functionality, SEO, use of Google Analytics, 

newsletters, automation, and the existence of a digital marketing strategy. Responses are 

given on a scale of 0–4 (0 = not at all, 4 = very advanced level). 

Section C (Perceived Benefits of Digital Marketing) 

The third section examines the extent to which businesses perceive benefits from using 

digital marketing. The 7 statements in the section concern awareness, customer 

communication, increased sales, reduced promotional costs, enhanced brand, and overall 

online presence. The same 0–4 scale is used to assess the intensity of the benefits. 



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Section D (Barriers & Challenges) 

This section includes 7 statements that assess the barriers SMEs face in using digital 

marketing, such as lack of time, budget or expertise, difficulty measuring results, lack of 

strategy, lack of knowledge of tools and high online competition. The response scale of 

0–4 is used to capture the intensity of each barrier. 

Section E (Awareness and Usage of Digital Marketing Tools) 

The fifth section explores the level of awareness and usage of specific digital marketing 

tools. Participants state: 

• which tools they know, 

• which ones the company uses, 

• which ones they consider most effective, 

• which ones they would like to learn more about. 

This section provides important information about the level of digital familiarity and the 

training needs of companies. 

Section F (Open Question) 

The last section includes an open question, where participants are asked to indicate what 

they consider to be the biggest challenge in implementing digital marketing. This open 

response is used to qualitatively enhance the quantitative analysis and to identify topics 

that may not be covered in the closed scales. 

Overall, the questionnaire is designed to provide a comprehensive picture of SMEs’ digital 

maturity, perceived benefits, barriers and level of familiarity with digital tools, thus 

allowing the study’s research hypotheses to be examined. 

 

3.5 Data Analysis 
The SPSS statistical program was used for data analysis, as it is considered one of the 

most well-known programs for data analysis and the creation of reliable statistical data. 

In the first stage, a descriptive analysis was performed, aiming to present the basic 

characteristics of the sample and to show the actual representation of the central 

tendencies with respect to each section of the questionnaire. The means, standard 



28 | P a g e  
 

deviations and frequencies were also calculated for sections B, C and D and the 

percentages for the answers to the multiple choice questions of Section E. In addition, to 

investigate the relationships between variables, correlations analysis was applied using 

the Pearson coefficient, depending on the data requirements. Therefore, these analyses 

allowed the examination of the research hypotheses concerning the relationship between: 

• the degree of adoption of digital marketing 

• the perceived benefits 

• the obstacles and challenges 

• the familiarity and use of digital tools 

And finally, Section F, which is an open question, was analyzed through qualitative 

thematic analysis, these responses were categorized and classified into recurring thematic 

categories, and the goal was to identify the responses that mentioned the main challenges 

that businesses perceive regarding digital marketing. 

 

3.6 Research Hypotheses 
At this point we will develop the research hypotheses, which is the crucial point of the 

research, because it allows the formulation of specific and measurable expectations 

regarding the relationships under examination. Based on international bibliography, the 

thesis focuses on the factors that influence the adoption of digital marketing by small and 

medium-sized enterprises in Cyprus, a field that is taking on ever greater dimensions due 

to the increasing need for businesses to remain competitive in an ever-developing digital 

environment. 

Through the theoretical framework analyzed in the previous chapter, it is clearly seen that 

the adoption of digital practices is influenced by various variables, such as, for example, 

the level of use and familiarity of businesses with digital tools, the perception and benefits 

that these offer in digital marketing, and also the obstacles that small and medium-sized 

enterprises face during their implementation. 

Therefore, the formulation of the research hypotheses allows for the examination of the 

following relationships, and this provides a structured framework for the statistical 

analysis that will follow later. These hypotheses are linked to the structure of the 

questionnaire (Sections B-E) and are associated with the pillars that are considered critical 

for understanding the digital behavior of small and medium-sized enterprises in Cyprus. 



29 | P a g e  
 

These hypotheses contribute to the creation of a coherent model that allows for the 

assessment of the way in which small and medium-sized enterprises in Cyprus perceive 

and integrate digital practices, and this will provide valuable findings for both the 

academic community and businesses. 

The hypotheses are presented below: 

H1: The greater familiarity of businesses with digital marketing tools (Section E) is 

positively related to the degree of adoption of digital practices (Section B). 

H2: Perceived benefits of digital marketing (Section C) are positively related to digital 

maturity and adoption rate (Section B). 

H3: Barriers and challenges faced by businesses (Section D) are negatively related to 

digital marketing adoption (Section B). 

H4: Larger businesses (with more employees) exhibit a higher level of digital marketing 

adoption (Section B). 

H5: Businesses with a coordinated digital marketing strategy exhibit higher digital 

maturity and report more benefits from their digital efforts. 

 

 

 

 

 

 

 

 

 



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Chapter 4 Presentation 
of Results and Analysis 
4.1 Introduction 
In this chapter will presents the findings of the quantitative research coming from 76 
small and medium-sized enterprises operating in Cyprus. 

The aim of the analysis is to examine the following: 

• the level of digital maturity of the businesses, 
• the perceived benefits from digital marketing, 
• the barriers that enterprises have with implementation of digital marketing, 
• the use of digital marketing tools, 
• and the relationships between these variables, based on the research hypotheses. 

The analysis presents descriptive statistics, indices, scale reliability through Cronbach’s 
alpha, Pearson correlations, regressions, as well as interpretation of the findings. 

 

4.2 Section A Business Information (Questions 1-5) 
 

Question 1 What is the size of your business?  

 

 

 

 

Based on the answers to the first question regarding the size of your business, 64.5% 
responded that it employs 1-5 people, which is the majority of businesses. This fact 



31 | P a g e  
 

reflects the nature of the Cypriot market, as it appears to be dominated by micro SMEs. 
Furthermore, based on the results, 23.7% of businesses have 6-10 employees, while 6.6% 
employ 11-20 people. 

 

Question 2 What is the main sector of your business? 

Based on the results, it includes a sample of businesses from a wide range of sectors, 

such as: 

• Trade & Retail: Responses include trade, product sales, retail, E-commerce, Mini 

market, baby clothing store, boutique, bookshop, car maintenance garages, and 

Photographic equipment. 

• Technology: The technology sector is present with Software development and AI 

integration, IT, Digital Marketing, Tech repair shop, and Digital Printing. 

• Tourism & Horeca: Businesses in tourism, travel agency, catering, patisserie, 

fournos, bakery, Delivery/Takeaway, and Event catering company are included. 

• Construction & Real Estate: This category includes construction, buildings, 

Architectural office, and Real Estate (real estate). 

• Other Activities: Other fields mentioned are Shipping, Logistics (taxi, car rental, 

logistics), Education (Tutoring center, dance school), Fitness (Pilates studio, 

Personal training), media and photography, automotive and service (garage, 

Small A/C garage), and Event planning. 

The above variety allows for a more representative assessment of the use of digital 

marketing in the Cypriot market. 

 

 

 

 

 

 

 

 



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Question 3 How many years has your business been operating?   

 

Based on the results regarding the operating time of the business, here the results appear 

with a more balanced distribution. 

Question 4 Does your business have a website?   

 

Based on the results, we observe that the majority, 68.8%, have a corporate website and 

31.2% answer no. 

 

 

 

 

 

 

 



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Question 5 Does your business have social media accounts?  

 

Based on the results, we observe that 77.9% of businesses stated that they have social 

media while 22.1% do not. The higher use of social media compared to websites indicates 

that SMEs are choosing social media as a key tool for direct communication and 

promotion. 

 

4.3 Section B Digital Maturity & Implementation (Questions 
6-17)  
 

The overall Digital Maturity index is approximately 2.75, which is considered to be at a 

moderate level, but through the analysis of the individual dimensions, significant 

differences can be distinguished. 

Question 6 Our business uses social media consistently.  

 



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Based on the results, the average regarding how active small and medium-sized 

enterprises they are is 3.14, indicating that they are relatively active. However, the 

frequency of postings is not consistent, the strategic plan is most often absent, and the 

content is not repeated regularly. 

 

Question 7 We have clear objectives for our social media content.   

 

Question 8 We post content on a regular basis.   

 

The average for these questions is around 3.0/5, indicating: 

• frequent use of social media, 

• but moderate consistency, 

• and a low degree of professional organization. 



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The majority of businesses post content when they ‘’have time’’ 

 

Section B1 Website and SEO Practises (Questions 9-11) 

Question 9 Our website is updated regularly.   

 

As we can see from these numbers is that a notable portion of respondents almost nearly 

half are either at the lowest levels of website updating (levels 1 and 2) or somewhere in 

the middle (level 3).Only a small minority, around 18% combined, are at the higher 

levels (4 and 5), indicating that relatively few respondents frequently update their 

website. Overall, it suggests that most people either don't update regularly or do so only 

occasionally. 

Question 10 Our website is mobile friendly. 

 

So, from the results of question 10 show that the majority of participants choose level 3 

(38.2%), which indicates a moderate degree of mobile optimization. In addition, a 

significant percentage (19.7% for level 1 and 19.7% for level 2) consider that their website 



36 | P a g e  
 

is not sufficiently optimized. Only 22.4% (levels 4 and 5) believe that the website is well 

adapted for mobile use. Overall, the data shows that mobile optimization exists to a certain 

extent, but for many SMEs it remains incomplete or insufficient. 

 

Question 11 We apply basic SEO practices (keywords, titles, descriptions) 

 

Based on the results from the questionnaire, the lowest averages are found in this section 

2.3 (average), and this shows that: 

• no updated websites, old ones were created and left inactive 

• Absence of SEO 

• Minimal focus on optimizing small and medium sized enterprises 

As a result, this significantly reduces the organic visibility of SMEs 

 

Content Marketing Readiness (Questions 12-13) 

Question 12 We have a content marketing plan (articles, posts, videos).   

 



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From the question 12 the results show that majority of repliers are at level 3 (29.9%), 

which indicates a moderate level of organization in content marketing. However,  

significant percentage of businesses do not seem to have a clear or consistent content plan: 

20.8% choose level 1 and 22.1% level 2. This means that approximately 43% of SMEs 

operate without a structured content strategy. 

On the other hand, only 27.3% (levels 4 and 5) state that they have an organized content 

marketing plan, which indicates that a smaller share of businesses have systematically 

invested in creating and publishing content. 

 

Question 13 Our content reflects our customers’ needs.   

 

The results show that the majority of participants are at level 3 (42.9%), which suggests 

that businesses consider their content to a moderate extent to meet customer needs, but 

do not rate it as fully effective. At the same time, significant percentages appear both at 

the low levels (13% at 1 and 15.6% at 2) and at the highest levels (15.6% at 4 and 13% 

at 5). 

 

Overall, the findings show that most SMEs recognize that their content is “good 

enough”, but there is room for improvement, especially in terms of adapting it to the real 

needs and expectations of customers. 

 

So, the businesses rate content readiness low: 



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• lack of a content plan, 

• content production without a strategy, 

• dependence on the owner or a relative. 

 

Analytics Usage (Questions 14-15) 

Question 14 We monitor the performance of our digital marketing 
activities.   

 

From the question 14 the results showing that the majority of businesses choose level 3 

(40.3%), which indicates that performance monitoring is done at a basic or moderate level, 

without systematic analysis. At the same time, a significant percentage (20.8% at 1 and 

20.8% at 2) state that they do not actually monitor the performance of digital marketing 

actions. Only a small percentage (18.2% at levels 4 and 5) apply more organized and 

advanced measurements. 

 

Question 15 We use data to support marketing decision-making.  

 



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The results show that the majority of participants choose level 3 (36.4%), which indicates 

a moderate use of data in the decision-making process. At the same time, high percentages 

appear at the lower levels (19.5% at 1 and 26% at 2), which shows that many companies 

do not systematically base their decisions on data. Only a small part (about 18.2% at levels 

4 and 5) declare that they use data to a more advanced and structured degree. 

 

Therefore, the use of analytics tools is extremely limited. Many businesses that they do 

not know how to ’’read’’ the results or how to leverage data to improve performance. 

 

Digital Strategy (Questions 16-17) 

Question 16 We have a clear digital marketing strategy.   

 

 

The results show that the largest group of participants chooses level 3 (32.5%), which 

suggests that most businesses have some form of strategy, but not a completely clear or 

fully developed one. In addition, high percentages appear at the lower levels (22.1% at 1 

and 26% at 2), indicating that a significant portion of businesses do not have a structured 

digital marketing strategy. 

 

 

 

 

 

 



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Question 17 We have defined KPIs for our digital marketing activities.   

 

The results show that the largest category of participants is at level 3 (33.8%), suggesting 

that most businesses have partially defined KPIs, but not comprehensively or 

systematically. Significant percentages also appear at the lower levels: 27.3% at level 1 

and 20.8% at level 2, which indicates that a large part of SMEs have not established 

specific performance indicators for digital marketing. 

 

The lowest average score in the section: 

• absence of a digital marketing strategy, 

• operation on an ad hoc basis, 

• lack of goals, target groups and planning 

 

Conlusion of Section B 

Cyprus small and middle sized enterprises have a digital presence but not digital 

maturtity and they mainly operate tactically and not strategically. 

 
 

 

 

 



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4.4 Section C Perceived Benefits of Digital Marketing 
(Questions 18-22) 
 

Question 18 Digital marketing has improved our brand awareness.   

 

The results showing that the majority of businesses choose the high levels 4 (35.1%) and 

5 (26%), which suggests that digital marketing contributes significantly to increasing their 

awareness. Low small percentages appear at the lower levels, resulting the view that the 

majority considers digital marketing actions effective in this area. 

 

Question 19 Digital marketing has improved our communication with 
customers. 

 

Many businesses evaluate the contribution of digital marketing positive that it is 

improving communication, with 41.6% choosing level 4 and 18.2% choosing level 5. low 

levels of minimal percentages, which shows that most businesses believe that digital 

actions substantially enhance their communication with the public. 

 



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Question 20 Digital marketing has helped attract new customers.   

 

The majority of participants positively evaluate the effectiveness of digital marketing in 

attracting new customers, with 37.7% choosing level 4 and 19.5% choosing level 5. In 

low levels gather smaller percentages, showing that most businesses believe that digital 

actions contribute substantially to expanding their customer base. 

 

Question 21 Digital marketing has contributed to increasing sales.   

 

Majority of businesses choose level 3 (41.6%) which showing that digital marketing 

contributes moderately to sales growth. In the same time, significant percentage at level 

4 (19.5%) and 5 (13%) indicate that a portion of businesses see more substantial results. 

However, the low levels also gather non-negligible percentages, indicating that for many 

businesses the impact on sales remains limited. 

 

 

 

 



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Question 22 Digital marketing has improved our professional image.  

 
The results clearly show that most businesses believe that digital marketing helps improve 

their corporate image. The largest percentage is at level 4 (39%), while another significant 

percentage (20.8%) chose level 5. The lower levels appear in very small percentages, 

which shows that only a few do not see a substantial improvement. 

So the answers show a high acceptance of the benefits (average 3.5/5): 

• Digital marketing increases awareness. 

• Ιmproves communication with customers. 

• Enhances the attraction of new customers. 

• Strengthens the company's brand. 

• Can increase sales. 

The positive attitude shows that SMEs believe in the value of digital marketing even if 

they do not implement it comprehensively. 

 

 

 

 

 

 

 

 

 



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4.5 Section D Barriers to Implementation (Questions 23-28) 
 

Question 23 We lack the time to focus on digital marketing.   

 

The majority of participants are at level 3 (48.1%), which indicates that most businesses 

face a moderate degree of lack of time for digital marketing. There is also a notable 

percentage at levels 4 and 5 (19.5% and 9.1%), which indicates that for many, lack of time 

is a more pronounced obstacle. The low levels occur on a very small scale. Frequent 

response due to limited staff and multitasking. 

 

Question 24 We lack the necessary digital skills. 

 

According to results showing that most businesses are levels 2 and 3 (37.7% and 36.4%), 

and that indicates that the lack of expertise is a real but moderate obstacle. Smaller 

percentages appear at high levels (4 and 5), which indicate that for some companies the 

problem is more intense. Overall, expertise seems to be a challenge, but not the most 

important one. Businesses do not know how to manage tools and methods. 

 



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Question 25 Our digital marketing budget is limited.   

 

The largest percentage of responses is at level 3 (49.4%) and level 2 (31.2%), indicating 

that most businesses consider limited budget as a real obstacle, but not to the greatest 

extent. Very high levels appear in smaller percentages, which indicates that for few 

businesses the financial cost is a very serious problem. Limited budget especially in micro 

businesses. 

 

Question 26 We do not have a clear digital marketing strategy.   

 

Most enterprises answered at level 3 (39%) and level 2 (35.1%), which shows that the 

lack of strategy is a fairly common but moderate obstacle for many businesses. The 

higher levels (4 and 5) have lower percentages, so for fewer people strategy is a serious 

difficulty. Lack of strategy many SMEs state that they don’t know from where to start. 

 

 

 



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Question 27 We find it difficult to create quality content.   

 

The majority of participants are at levels 2 (40.3%) and 3 (42.9%), which indicates that 

most businesses face some difficulty in creating content, but not to an extreme degree. 

The very high levels are attended by very small percentages, so for few this difficulty is a 

serious obstacle. The content production takes time, needs creativity and often costs. 

Question 28 We find it difficult to measure results.   

 

Most people responded at level 2 (53.2%) and level 3 (33.8%), which indicates that 

measuring results is a common difficulty, but usually to a moderate degree. The high 

levels occur in very small percentages, so for few businesses this difficulty is intense. 

Measurements and analytics, that is the most technical and weakest area. 

 

 

 

 



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4.6 Section E Use of Digital Marketing Tools (Questions 29-35) 
 

Question 29 Social media advertising (Meta Ads).   

 

The responses are quite split, with levels 3 and 4 (27.3% and 28.6%) indicating that 

many businesses use social media advertising to a moderate to fairly good degree. 

However, there is also a significant percentage at level 1 (23.4%), meaning that many 

either do not use it or rate it as less effective. 

 

Question 30 Google Ads.   

 

Level 1 showing largest percentage (45.5%), that indicates that most businesses use little 

or no Google ads. The following levels have significantly lower percentages, so overall 

the use of Google ads seems limited. So, the using of google ads is moderate. 

 

 

 



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Question 31 SEO practices.   

 

The highest percentages appear at levels 1 and 2, 36% and 30%, respectively, and this 

suggests that the practices are not implemented at all. 

Question 32 Email marketing.   

 

The majority are at level 1 (52.6%) and level 2 (25%), which shows that email marketing 

is rarely used by most businesses. The higher levels have very small percentages, so this 

practice has not yet been widely adopted. The main reason this practice is not used is 

because small and medium-sized businesses do not have organized databases (CRM 

System) 

 

 

 

 

 

 



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Question 33 CRM systems. 

 

The vast majority (64.9%) are at level 1, which indicates that most businesses do not use 

a CRM system. The remaining levels have very low percentages, which indicates that 

CRM adoption in Cyprus remains at a very early stage. 

 

Question 34 Marketing automation tools.   

 
The largest percentage (61%) is at level 1, which indicates that most businesses do not use 

marketing automation tools at all. The following levels appear at very low rates, which 

indicates that the use of automations is still limited and has not been widely adopted. 

 

 

 

 

 

 

 



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Question 35 Analytics tools (Google Analytics, Meta Insights).   

 

Levels 3 and 4 have the highest percentages (27.3% and 28.6%), which indicates that 

many companies use analytics tools to a moderate to good extent. However, a significant 

percentage (24.7%) is at level 1, which means that many companies do not utilize them at 

all. 

4.7 Section F Open Question (Question 36) 
 

Regarding the responses received from the open-ended questionnaire, the main challenges 

faced by small and medium-sized enterprises in Cyprus are mainly: 

• Lack of time, this is the most frequent point of reference, and this is more true for 

small businesses. As the participants mentioned, this is influenced by the fact that 

the daily workload does not leave them time to systematically deal with digital 

marketing 

• Lack of technical knowledge, several businesses stated that they have difficulties 

with the use of digital tools and the use of various platforms. Regarding various 

tools such as SEO, analytics and automation, they are not aware of them and this 

repels them from operating them 

• Content production, another important difficulty they mentioned is that of content 

creation, there is difficulty in making the content interesting, qualitative and 

attractive, there is no appropriate creativity since many businesses due to their 

limited budget cannot outsource it or do it in-house 

• Competition, many businesses feel that it is very difficult to stand out from the 

huge volume of content that exists on social media, and this is due to the highly 



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competitive environment that prevails, they are convinced that their efforts will 

not pay off easily. 

• Another challenge they mentioned that they face is the cost, which many 

businesses have and this difficulty, due to the size of the business they have 

difficulty in covering additional costs 

 

4.8 Scale reliability (Cronbach’s Alpha) 

Before proceeding with the statistical analysis, it was important to examine whether the 

groups of questions that constitute the main indicators present satisfactory internal 

consistency. For this purpose, the Cronbach's Alpha coefficient was calculated for each 

scale. 

Table 4.1 

Scale Items Cronbach’s 
α 

Digital Adoption 12 0.981 

Perceived Benefits 5 0.961 

Barriers 6 0.895 

Tools Usage 7 0.921 

Digital Strategy 2 0.881 

Interpretation 
 
All values range from 0.881 to 0.981, indicating extremely high reliability. These results 
confirm that: 

• The variables are stable 
• The questions withing each group are coherent 
• The composite indicators created are suitable for correlations and regressions 

 
Therefore, the subsequent analysis is based on reliable data and can lead to valid 
conclusions. 

4.9 Creating Composite Indicators 

Based on the questionnaire design, for ease of data analysis, five basic indices 

(composite indices) were created based on the sections: 



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• Digital adoption index (from Section B, Questions 6-17) 

• Tools usage index (from Section E, Questions 29-35) 

• Perceived benefits index (from Section C, Questions 18-22) 

• Barriers index (from Section D, Questions 23-28) 

• Digital Strategy index (Questions 16-17) 

Subsequently, the averages of the questions of each subsection were calculated for the 

indices in order to reduce complexity and enable a clear measurement of the theoretical 

variables. 

 

4.10 Descriptive Statistics of Indicators 
Table 4.2 

Indicator Mean SD Min Max 
Digital Adoption 2.75 1.12 1.0 5.0 
Tools Usage 2.19 1.01 1.0 4.57 
Perceived Benefits 3.49 1.02 1.0 5.0 
Barriers 2.71 0.75 1.0 5.0 
Digital Strategy 2.30 1.10 1.0 5.0 

The Interpretation of above indicators: 

• The adoption of digital practices is at a median level, indicating that businesses 

use digital tools but not systematically. 

• The use of tools is low, indicating limited exploitation of digital capabilities. 

• The perceived benefits are high, indicating a positive attitude towards digital 

marketing. 

• The barriers are at a medium level and constitute an inhibiting factor. 

• The digital strategy has a low value, which largely explains the low maturity. 

4.11 Pearson Correlations Testing Relationships Between 
Indicators 

Pearson Correlation analysis serves to examine the relationships between key variables 
based on research hypotheses. 

Table 4.3 



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Variable Adoption Tools Benefits Barriers Size Strategy 
Digital Adoption 1 0.822 0.762 -0.355 0.260 0.700 

Tools Usage 0.822 1 0.627 -0.260 0.210 0.580 
Perceived Benefits 0.762 0.627 1 -0.202 0.150 0.550 

Barriers -0.355 -0.260 -0.202 1 -0.080 -0.220 
Business Size 0.260 0.210 0.150 -0.080 1 0.150 

Digital Strategy 0.700 0.580 0.550 -0.220 0.150 1 
 

Comments on correlations based on hypotheses 

So, the correlations show that: 

• The use of tools has a very positive relationship with the adoption of digital 

practices. 

• Perceived benefits have a strong positive relationship with adoption. 

• Barriers have a negative relationship, as expected. 

• The size of the company is positively related to adoption. 

• The existence of a digital strategy has one of the strongest correlations with 

adoption. 

• These results are directly linked to the theoretical predictions of the international 

  

4.12 Testing hypotheses H1-H5 

To test whether hypotheses H1-H5 are valid, five linear regression models should be 

performed, each with a different independent factor. 

H1: Greater familiarity and use of digital marketing tools by small and medium-

sized businesses (Section E) is positively and significantly related to the degree of 

adoption of digital practices (Section B). 

table 4.4 Tools Usage – Digital Adoption 

R R² β t p 
0.822 0.676 0.82 12.06 <0.001 

Interpretation: 

The analysis shows that the use of digital tools is one of the most important factors 

influencing the level of digital adoption of businesses. The regression model explains 



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approximately 67.6% of the variance in the adoption variable, a particularly high 

percentage for social sciences. This result suggests that the more a business uses practical 

digital marketing tools, such as advertising platforms, analytics tools, CRM, or automated 

functions, the more developed its overall digital presence. In other words, the use of tools 

is not just a supporting function, but acts as a central mechanism through which businesses 

move to higher levels of digital maturity. 

H2: The positive perception of businesses about the benefits of digital marketing 

(Section C) positively and significantly influences the adoption of digital practices 

(Section B). 

 

table 4.5 Perceived Benefits – Digital Adoption 

R R² β t p 
0.762 0.581 0.76 11.98 <0.001 

Interpretation: 

The analysis shows that the attitude of businesses towards digital marketing plays a 

decisive role in whether they implement it in practice. So, when businesses clearly 

perceive the benefits that digital promotion offers, such as better communication with 

customers, greater visibility or increased sales—they appear more willing to invest time 

and resources in digital practices. This positive perception seems to work in a reinforcing 

way, as businesses with higher expectations for the benefits adopt more structured and 

systematic forms of digital marketing, compared to those that do not immediately 

recognize its value. In other words, belief in the benefits is converted into real action and 

leads to higher levels of digital maturity. 

H3: The obstacles and challenges faced by SMEs in using digital marketing (Section 

D) negatively and significantly affect the adoption of digital practices (Section B). 

 

table 4.6 Barriers – Digital Adoption 

R R² β t p 
0.355 0.126 -0.35 -3.21 0.002 



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Interpretation: 

The analysis shows that the barriers that businesses face in implementing digital 

marketing have a clear and negative impact on the level of digital adoption. The 

correlation value (R = 0.355) and the variance explained index (R² = 0.126) indicate that 

barriers explain approximately 12.6% of the variation in the adoption of digital practices. 

So, this percentage is not high, the result is statistically significant (p = 0.002), which 

means that the negative relationship is random 

Based on the findings, the existence of obstacles functions as a substantial inhibitory factor 

of digital maturation, a finding that is in line with relevant studies in the international 

literature on SMEs. 

H4: Larger businesses show a higher degree of adoption of digital practices 
compared to smaller businesses. 

table 4.7 Business size – Digital Adoption 

R R² β t p 
0.260 0.067 0.26 2.20 0.03 

Interpretation: 

Analysis showing that the size of the company have a positive but relatively moderate 

effect on the degree of adoption of digital practices. The correlation number (R = 0.260) 

indicates a weak, but significant relationship between the number of employees and 

digital maturity. The R² = 0.067 indicates that the size explains approximately 6.7% of 

the variance in the adoption of digital practices, a percentage that is expected for social 

data, where behaviors are influenced by multiple factors. 

The regression coefficient (β = 0.26) in combination with the t value = 2.20 and p = 0.03 

indicate that the effect of size is statistically significant. So, as larger a company is, most  

likely it is to adopt digital practices. 

 

H5: Businesses that have an organized digital strategy display higher digital 

maturity and perceive more benefits. 

table 4.8 Digital Strategy – Digital Adoption 



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R R² β t p 
0.700 0.490 0.70 9.12 <0.001 

 

table 4.9 Business size – Digital Adoption 

R R² β t p 
0.550 0.302 0.55 5.82 <0.001 

Interpretation: 

From results showing that the existence of organized digital strategy is one of the most 

important factor influencing the overall digital maturity and the perception of the benefits 

of digital marketing by businesses. So, the relationship between digital strategy and 

adoption of digital practices is particularly strong,  by the high correlation coefficient (R 

= 0.700) and R² = 0.490. Also the regression coefficient (β = 0.70) and the extremely high 

statistical significance (p < 0.001) confirm that strategy has a substantial and consistent 

effect. 

However, strategy not only affects adoption but also the perception of benefits. The 

second model shows that the relationship with perceived benefits is also significant (R = 

0.550), while R² = 0.302 suggests that approximately 30% of the variation in perceived 

benefits is explained by the existence of a strategy. The coefficient β = 0.55 and the p-

value < 0.001 confirm the strength of this relationship. 

4.13 Summary of hypotheses testing and Interpretation 

Table 4.10 

hypotheses Hypotheses description result 

H1 The use of tools is positively related to the adoption of digital 
practices supported 

H2 The perceived benefits are positively related to the adoption of 
digital practices supported 

H3 Barriers negatively affect the adoption of digital practices supported 

H4 The size of the company is positively related to the adoption of 
digital practices supported 

H5 The existence of a digital strategy is positively related to the 
adoption and perception of benefits supported 

Summary 



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Based on the results, it is clear that the adoption of digital marketing practices by small 

and medium sized enterprises in Cyprus is largely influenced by the use of digital tools, 

the perception of benefits, the definition of digital strategy, the size of the business and all 

those obstacles that businesses face. Therefore, the strategy and the use of digital tools 

constitute the greatest challenge, and this confirms the coherence of the analysis model 

and the agreement with the international bibliography. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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Chapter 5 
5.1 Introduction and Discussion of results 
 

In this chapter we will discuss the results presented in chapter 4 and what we examined is 

how small and medium-sized enterprises in Cyprus implement digital marketing in 

practice. The research was based on 77 responses from businesses from different sectors 

and shows that digital adoption has not been established by businesses, where many and 

various internal and external factors play an important role in this purpose. The discussion 

that follows interprets the results in relation to the international literature and the 

theoretical framework of digital transformation in SMEs. 

One of the most important findings concerns that the role of the use of digital tools (H1). 

The research showing that the familiarity of businesses with digital marketing tools is the 

strongest predictor of digital adoption. The regression model explained more than 67% of 

the variance in the adoption index, which suggests that the tools practically function as a 

“bridge” between theoretical intention and actual implementation. This finding is 

consistent with international studies that support that digital maturity starts from the 

elementary ability to use tools (Tiago & Veríssimo, 2014), which strengthen the 

company’s confidence in the technological transition. 

The second hypothesis (H2) confirmed that the perception of the benefits of digital 

marketing significantly influences the adoption of digital practices. The more strongly a 

company perceives the potential benefits that improving visibility, attracting customers, 

strengthening the brand, the greater the likelihood of implementing organized digital 

actions. This result is consistent with the Technology Acceptance Model, which 

emphasizes that ‘’perceived benefit’’ is a key factor in the adoption of new technologies. 

The third hypothesis (H3) concerns the negative role of barriers. The research showed that 

barriers such as the time, budget, know-how, difficulty in producing content, have a 

statistically significant negative effect on adoption. Although the magnitude of the effect 

is smaller compared to the positive factors, the result is substantial, as it confirms that 

SMEs in Cyprus often operate under constraints that do not allow them to fully exploit the 

potential of digital marketing. International literature recognizes that small businesses 



59 | P a g e  
 

have increased operational pressure and limited resources, which often leads to an 

inconsistent or fragmented digital presence. 

The hypothesis (H4) showing that the size of the business is related to adoption and 

implementation of digital marketing practices. Because this effect is not particularly large, 

it is statistically significant and in line with international literature, which often reports 

that larger companies have more expertise, human resources and budget to implement 

digital strategies. In the Cypriot reality, where many companies are very small, this finding 

is of particular interest, as it suggests that the lack of resources systematically works in 

favor of larger organizations. 

The most notable finding concerns the fifth hypothesis (H5), according to which the 

existence of a digital strategy affects both adoption and the perception of benefits. The 

results showed that companies with a clear strategy exhibit substantially higher levels of 

digital maturity. Strategy explained almost 50% of adoption and 30% of the perception of 

benefits. This relationship suggests that digital transition is not only the result of tools or 

technical support, but mainly organizational planning and conscious choice. The literature 

supports that the existence of a strategic plan is one of the basic prerequisites for 

successful digital transformation in SMEs. 

 

 

 

 

 

 

 

 

 

 

 

 

 



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Chapter 6 
6.1 Conclusion and Recommendations 
 

The research highlighted important factors that determine the adoption of digital 

marketing by Cypriot SMEs. The main conclusion is that digital adoption is not a single 

concept, but a set of behaviors that are shaped by technical readiness, the perception of 

the value of digital marketing, the existence of a strategy and the ability of the company 

to overcome operational obstacles. 

Companies that systematically use digital tools and recognize the benefits of digital 

marketing display high digital maturity. The SMEs in Cyprus face with limited know-how, 

small budget or lack of time face difficulties in integrating effective digital practices. The 

size of the company also affects adoption, with larger companies having an advantage on 

that. 

Also, an important finding is the role of digital strategy. The existence of a clear marketing 

strategic structure seems to substantially enhance the effectiveness of digital marketing 

actions and improve companies perception of the value they derive. This shows that the 

technical use of tools alone is not enough. A comprehensive plan, goals, organization and 

consistency are required to achieve the desired results. 

Practical suggestions for SMEs 

• Invest in basic know-how and training 

Education in tools, social media ads, analytics and content can significantly 

increase digital maturity. 

• Formulating a digital strategy 

Even a simple strategy with goals, priorities and key tactics can fundamentally 

change results. 

• Gradual integration of tools 

No advanced technology is required. Gradual use of tools strengthens the 

business's self-confidence and increases efficiency. 

• Addressing operational barriers 



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Businesses can reduce barriers by outsourcing, automating or assigning digital 

roles. 

 

Suggestions for future research 

• Larger sample to cover all sectors of the Cypriot economy. 

• Qualitative interviews for a deeper understanding of the barriers. 

• Comparison of SME digital maturity between Cyprus and other EU countries 

• Study of the impact of e-commerce and AI on small businesses. 

 

Final conclusion 

The digital transition of SMEs in Cyprus is ongoing, but remains uneven. Businesses that 

combine knowledge of tools, perception of benefits and organized strategy have a clear 

advantage. This research offers a practical and theoretically substantiated framework that 

can support SMEs in their transition and implementation of digital marketing to a more 

competitive and efficient digital businesses environment. 

 

 

 

 

 

 

 

 

 

 

 

 
 



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Chapter 7 
Appendices  
Table 1 Descriptive statistics of composite indices 

Scale Items Cronbach’s α 
Digital Adoption 12 0.981 
Perceived Benefits 5 0.961 
Barriers 6 0.895 
Tools Usage 7 0.921 
Digital Strategy 2 0.881 

 

Table 2 Pearson correlations among main variables 

Index Mean SD Min Max 
Digital Adoption 2.75 1.12 1.0 5.0 
Tools Usage 2.19 1.01 1.0 4.57 
Perceived Benefits 3.49 1.02 1.0 5.0 
Barriers 2.71 0.75 1.0 5.0 
Digital Strategy 2.30 1.10 1.0 5.0 

 

Table 3 Pearson correlations among main variables 

Variable Adoption Tools Benefits Barriers Size Strategy 
Digital Adoption 1 0.822 0.762 -0.355 0.260 0.700 
Tools Usage 0.822 1 0.627 -0.260 0.210 0.580 
Perceived Benefits 0.762 0.627 1 -0.202 0.150 0.550 
Barriers -0.355 -0.260 -0.202 1 -0.080 -0.220 
Business Size 0.260 0.210 0.150 -0.080 1 0.150 
Digital Strategy 0.700 0.580 0.550 -0.220 0.150 1 

 

Table 4 Regression Output H1 (Tools equal to Digital Adoption) 

 

Statistic Value 
R 0.822 
R² 0.676 
β 0.82 
t 12.06 



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Statistic Value 
p <0.001 

 

Table 5 Regression Output H2 (Benefits equals Digital Adoption) 

 

Statistic Value 
R 0.762 
R² 0.581 
β 0.76 
t 11.98 
p <0.001 

 

Table 6 Regression Output H3 (Barriers equals Digital Adoption) 

Statistic Value 
R 0.355 
R² 0.126 
β -0.35 
t -3.21 
p 0.002 

 

Table 7 Regression Output – H4 (Business Size equals Digital Adoption) 

Statistic Value 
R 0.260 
R² 0.067 
β 0.26 
t 2.20 
p 0.03 

 

Table 8 Regression Output – H5a (Digital Strategy equals Digital Adoption) 

Statistic Value 
R 0.700 
R² 0.490 
β 0.70 
t 9.12 
p <0.001 



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Table 9 Regression Output – H5b (Digital Strategy equals Perceived Benefits) 

Statistic Value 
R 0.550 
R² 0.302 
β 0.55 
t 5.82 
p <0.001 

 

A. Survey Questions 

Invitation to participate in Survey (message) 
 
Dear participant, 

This survey is part of my MBA dissertation at the Open University of Cyprus and aims to 

examine the level of digital marketing implementation among Small and Medium-sized 

Enterprises (SMEs) in Cyprus. 

Your participation is anonymous, voluntary, and takes approximately 6–8 minutes. 

All data will be used exclusively for academic purposes. 

Thank you very much for your time. 

Questionnaire follows: 

 
Section A – Business Information 

Question 1, What is the size of your business? 

1–5 employees 

6–10 employees 

11–20 employees 

21–50 employees 

51+ employees 

Question 2, In which sector does your business operate? 
(Open question) 

Question 3, How many years has your business been operating? 

0–5 years 



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6–10 years 

11–20 years 

21+ years 

Question 4, Does your business have a website? 

Yes 

No 

Question 5, Does your business have social media accounts? 

Yes 

No 

 

Section B – Digital Maturity & Implementation 

B1. Social Media Activity 

Question 6, Our business uses social media consistently. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 7, We have clear goals for our social media content. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 8, We publish content regularly. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

 

B2. Website & SEO 

Question 9, Our website is updated regularly. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 10, Our website is mobile-friendly. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 11, We apply basic SEO practices (e.g., keywords, titles, descriptions). 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

 

B3. Content Marketing 

Question 12, We have a content marketing plan. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 13, Our content meets customer needs. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

 

B4. Analysis & Data 



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Question 14, We monitor the performance of our digital marketing activities. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 15, We use data to support decision-making. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

 

B5. Strategy & Planning 

Question 16, We have a clear digital marketing strategy. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 17, We have defined KPIs for our digital marketing activities. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

 

Section C – Perceived Benefits of Digital Marketing 

Question 18, Digital marketing increases our brand awareness. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 19, Digital marketing improves our communication with customers. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 20, Digital marketing helps us attract new customers. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 21, Digital marketing increases our sales. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 22, Digital marketing improves our corporate image. 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

 

Section D – Barriers to Digital Marketing 

(Please evaluate how strongly each factor is an obstacle for your business.) 

Question 23, Lack of time 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 24, Lack of technical knowledge 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 25, Limited budget 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 26, Lack of digital marketing strategy 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

Question 27, Difficulty creating content 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 



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Question 28, Difficulty measuring results 
Strongly disagree — 1 — 2 — 3 — 4 — 5 — Strongly agree 

 

 

Section E – Use of Digital Marketing Tools 

(How frequently do you use the following tools?) 

Question 29, Social media advertising 
Never — 1 — 2 — 3 — 4 — 5 — Very often 

Question 30, Google Ads 
Never — 1 — 2 — 3 — 4 — 5 — Very often 

Question 31, SEO practices 
Never — 1 — 2 — 3 — 4 — 5 — Very often 

Question 32, Email marketing 
Never — 1 — 2 — 3 — 4 — 5 — Very often 

Question 33, CRM system 
Never — 1 — 2 — 3 — 4 — 5 — Very often 

Question 34, Marketing automations 
Never — 1 — 2 — 3 — 4 — 5 — Very often 

Question 35, Analytics tools (e.g., Google Analytics, Meta Insights) 
Never — 1 — 2 — 3 — 4 — 5 — Very often 

 

Section F – Open Question 

Question 36, What do you consider the biggest challenge your business faces in 
implementing digital marketing? 

 
 

 

 

 

 

 

 

 

 



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Papademetriou, C. & Ioannou, S. (2021) ‘Digital readiness of SMEs in Cyprus’, 

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Kotler, P., Kartajaya, H. & Setiawan, I. (2021) Marketing 5.0: Technology for 

Humanity. Hoboken: Wiley. 

 

Buhalis, D. & Volchek, K. (2021) ‘Digital transformation of SMEs’, Information 

Systems Frontiers, 23(4), pp. 889–902. 

 

DESI. (2023) Digital Economy and Society Index – Cyprus Country Report. Brussels: 

European Commission. 

 

Cyprus Statistical Service (Cystat). (2023) Business Demography Report 2023. 

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Papademetriou, C. & Ioannou, S. (2021) ‘Digital readiness of SMEs in Cyprus’, 

Cyprus Journal of Business Research, 4(1), pp. 22–35. 

 

Bryman, A. (2016) Social Research Methods. 5th edn. Oxford: Oxford University Press. 

 

Chaffey, D. and Ellis-Chadwick, F. (2019). Digita