THE IMPACT OF DIGITAL MARKETING ON CONSUMER LOYALTY IN SMALL BUSINESSES

Abstract

This article presents a comprehensive analysis of the impact of digital marketing on the formation and maintenance of consumer loyalty in the small business segment, taking into account regional and institutional specifics. The study adopts a theoretical-analytical approach that combines the comparison of up-to-date empirical data obtained through structural modeling, qualitative comparative analysis, and autoregressive time series models. Particular attention is given to identifying mediating mechanisms that channel the relationship between digital marketing activities and loyalty components, including trust, satisfaction, emotional attachment to the brand, behavioral engagement, and the Omnichannel Share of Time construct. The findings indicate that direct effects of social media marketing activities on loyalty are often absent, while a sustainable impact is achieved through a complex system of emotional and cognitive mediators, whose significance varies depending on cultural and market contexts. The paper analyzes strategic differences in digital platforms and omnichannel models that shape consumers’ perception of value and convenience. Regional patterns are identified: technological and CRM capabilities as growth drivers in Africa, emotional engagement in Asian and Gulf countries, and professional social media management in Europe. It is argued that digital loyalty in small businesses is the result of an interplay of behavioral, affective, and cognitive factors, and that the effectiveness of digital marketing depends on a company’s ability to integrate channels, personalize the customer experience, and maintain high engagement levels. This article will be of interest to marketing researchers, small business entrepreneurs, digital communications specialists, omnichannel strategy developers, and analysts evaluating the effectiveness of marketing campaigns in a dynamically transforming digital economy.