Creating competitive advantage in shrinking markets :|the case of the Turkish cement industry

Abstract

Creating competitive advantage became increasingly important in the Turkish cement industry due to market shrinkage caused by economic downturn in the third quarter of 2018. Product differentiation, pricing, promotion and placing opportunities are generally very limited in the cement industry. As a result, customer experience with cement brands is a key differentiator that generates competitive advantage. The main objective of this study is to analyse and understand customer behaviour in the cement market by using Net Promoter Score (NPS) methodology. The empirical information for this study was collected from case company surveys, which were compiled in 2015, 2016 and 2019 with 441 participants in total. Empirical evidence was used to gain insights into the way companies differentiate themselves at the market level on the basis of customer behaviour in order to gain competitive advantage. The findings of this study revealed that there was no statistically significant relationship between NPS and company revenues. Additionally, no statistically significant difference was found in the purchasing behaviours of promoters, passives and detractors. However, a positive correlation was observed between NPS and the number of active customers. Furthermore, product and marketing were found to be the main drivers causing customers to recommend the case company.