Exploring the Impact of Digital Marketing on Customer Experience: The moderating Role of E-Service Quality an Empirical Study of the Hospitality Industry in KSA

Abstract

The study analyzes the influence of digital marketing on customer experience in the hospitality sector, with the moderating role of e-service quality. As hotels increasingly rely on digital tools, it becomes essential to understand how these tools shape guest perceptions and service outcomes. Digital marketing is conceptualized through social media marketing, AI-driven interaction, and video marketing. Guided by the Social Exchange Theory, and supported by insights from Service Quality Theory for the moderating role of e-service quality, data were collected using structured questionnaires distributed to hotel managers and marketers in Saudi Arabia. Structural Equation Modeling Smart PLS was used to examine the direct effect of digital marketing on customer experience and the moderating influence of e-service quality. The results show that the greatest direct impact on customer experience (β = 0.493) is caused by AI-Driven Interaction, followed by Video Marketing (β = 0.315) and Social Media Marketing (β = 0.288), all of which are significant at 0.05. Additionally, interaction terms show that the link between AI-Driven Interaction and Customer Experience is strongly moderated by E-Service Quality (β = 0.221, p 0.05). The findings show that all three digital marketing dimensions significantly enhance customer experience. In addition, the relationship is strengthened when digital service delivery is perceived as responsive, user-friendly, and personalized. The results confirm the role of e-service quality as a key factor that enhances the effectiveness of digital marketing efforts. Theoretically, this study advances Social Exchange Theory by demonstrating how reciprocal value is generated through digital marketing practices in hospitality. It also extends Service Quality Theory by showing how e-service quality shapes the strength and direction of digital marketing’s influence on customer experience. Practical implications suggest that hotel managers should focus not only on adopting digital tools but also on maintaining high standards of digital service. This alignment can improve guest satisfaction and engagement. The study contributes to the hospitality field by offering empirical evidence and encourages further investigation in other tourism markets and customer groups.