Analytical Modeling of the Dynamic Effects of Marketing and Consumer-Driven Factors on the Performance of Passenger Car Companies #KHAStaResearch

In the automotive industry, which is one of the most competitive markets in the world economy, the choice of marketing activities to be invested in and the effects of these choices on company performance in the long term are of great importance. The project titled “Analytical Modeling of the Dynamic Effects of Marketing and Consumer-Oriented Factors on the Performance of Passenger Car Companies”, led by Prof. Dr. Nimet Uray, Head of Business Administration Department at Kadir Has University, seeks answers to the questions of the sector in this regard.

Marketing investments occupy an important place in companies’ budgets. Especially in globally and locally competitive markets such as the automotive sector, which accounts for approximately 5 percent of the world economy with a total size of approximately 4 trillion dollars, investments have a significant share.

Considering the magnitude of investments at this level, evaluating the return on these investments, making strategic planning for the future effectively, and allocating the marketing budget more efficiently to marketing activities is an issue that will make economic contributions at micro and macro levels!

Therefore, finding an answer to the question “Which marketing activity and at what level will increase the firm’s performance in the long term?” provides important contributions for firms to plan their marketing investments, to focus on the investments that will contribute the most to firm performance in forecasting marketing strategies, and to channel total investments effectively.

The project titled “Analytical Modeling of the Dynamic Effects of Marketing and Consumer-Driven Factors on the Performance of Passenger Car Companies”, led by Prof. Dr. Nimet Uray, Head of Business Administration Department at Kadir Has University, set out to find answers to related questions and fill an important gap in the literature.

The project, which is based on secondary data and surveys to be conducted with the customers of the relevant companies/brands on a monthly/3-monthly basis between 2010-2018 in cooperation with institutions such as automotive companies and research companies that provide advertising expenditure data, has been awarded funding under TÜBİTAK 1001 – Scientific and Technological Research Projects Support Program. The project, which received 552,884 TL support, will continue its studies until March 1, 2022.

Prof. Burç Ülengin from Istanbul Technical University and Prof. Füsun Ülengin from Sabancı University are taking part in this project led by Prof. Uray. Kübra Sirkeci, a PhD student from Kadir Has University, Department of Business Administration, and Hidayet Beyhan, a PhD student from ITU, are also working as PhD fellows in the project. In addition, Dilek Uğur, an undergraduate student in the Department of Business Administration, worked as a scholarship holder between February and August 2021 as part of the TÜBİTAK Star Intern Program.

Prof. Dr. Uray states that the main objective of the project is to develop an econometric model that analyzes the impact of strategic marketing activities on business performance directly and through customer satisfaction, and to estimate this model with alternative data analysis methods, based on companies/brands in the C segment in the passenger car sector, where marketing-related resources and capabilities are the antecedents. Based on the objectives in line with this main objective and the findings within the scope of the research, the project’s prioritized foci are as follows

Automobile companies/brands;

1. Identify and predict the impact of marketing-related resources and capabilities on the level of strategic marketing activities,

2. Identify and predict the long-term impact of the level of strategic marketing activities on customer satisfaction,

3. To determine the long-term impact of the level of strategic marketing activities on the firm’s key performance indicators within the scope of the study,

4. To determine the role of customer satisfaction in the impact of the level of strategic marketing activities on the firm’s key performance indicators within the scope of the study,

5. Identify the factors that most positively affect the performance indicators in the study in the long term and set concrete priorities for investment in marketing activities.

With the data collection process largely completed, the model and alternative models presented at the end of the project can be used as an invaluable guide to efficient resource utilization for each company within the scope of the project, as well as for the relevant market.