MARKETING MANAGEMENT

IN TURKEY
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MARKETING MANAGEMENT
IN TURKEY
EDITED BY

SELCEN OZTURKCAN
Linnaeus University, Kalmar, Sweden

ELIF YOLBULAN OKAN

Bahçeşehir University, Istanbul, Turkey

United Kingdom – North America – Japan

India – Malaysia – China
Emerald Publishing Limited
Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2018

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ISBN: 978-1-78714-558-0 (Print)

ISBN: 978-1-78714-557-3 (Online)
ISBN: 978-1-78743-927-6 (Epub)
CONTENTS

LIST OF CONTRIBUTORS ix

ABOUT THE EDITORS xi

SECTION 1
BASICS OF MARKETING MANAGEMENT
IN TURKEY
CHAPTER 1.1  INTRODUCTION
Selcen Ozturkcan and Elif Yolbulan-Okan 3

CHAPTER 1.2  FROM BAZAARS TO DIGITAL

ENVIRONMENT: A SHORT HISTORY OF MARKETING
IN THE TURKISH CONTEXT
Eda Aylin Genc and Metehan Igneci 9

CHAPTER 1.3  BUSINESS ETHICS, MARKETING ETHICS,

CONSUMER ETHICS, SUSTAINABLE CONSUMPTION AND
CORPORATE SOCIAL RESPONSIBILITY IN TURKEY
Hande Begüm Bumin Doyduk 29

SECTION 2
TURKISH MARKETING INSIGHT
CHAPTER 2.1  THE SHARING ECONOMY
IN TURKEY: A MARKETING PERSPECTIVE
 Karaca and
Elif Yelseli, Hüseyin Sami 51
Özlem Hesapçı Karaca

CHAPTER 2.2  ANALYSIS OF THE TURKISH

MARKET RESEARCH INDUSTRY: THE CHANGING
ROLE OF THE RESEARCHER
Özgecan Karanci 75
v
vi Contents

SECTION 3
TURKISH CONSUMERS
CHAPTER 3  A REVIEW OF FACTORS AFFECTING
TURKISH CONSUMER BEHAVIOUR
İ. Taylan Dörtyol, Ayşen Coşkun and Olgun Kitapci105

SECTION 4
BUILDING BRANDS IN TURKEY
CHAPTER 4.1  CONSUMER–BRAND RELATIONSHIPS
IN TURKEY
Ezgi Merdin-Uygur, Umut
143Kubat and
Zeynep Gürhan-Canli

CHAPTER 4.2  COMPETITIVE DYNAMICS

IN TURKEY
Muhterem Şebnem Ensari165

CHAPTER 4.3  PLACE MARKETING IN TURKEY

Can Uslay and Mesut Çiçek199

SECTION 5
CRAFTING MARKET OFFERINGS
IN TURKEY
CHAPTER 5  EXPERIENCE CONSUMPTION
IN TURKEY
Ezgi Merdin-Uygur223

SECTION 6
CREATE AND DELIVER VALUE IN TURKEY
CHAPTER 6  THE BIRTH OF OMNI-CHANNEL
MARKETING AND NEW DYNAMICS OF
CONSUMERS’ APPROACH TO RETAIL
CHANNELS
Selen Öztürk and Abdullah Okumuş247
Contents vii

SECTION 7
TURKISH WAY OF MARKETING
COMMUNICATION
CHAPTER 7.1  IMC: INTEGRATED MARKETING
COMMUNICATION
Elif Yurdakul and Aslı Bozdağ
275

CHAPTER 7.2  IS ADVERTISEMENT REALLY

DEAD? A CASE STUDY OF FILLI BOYA
Çiğdem Başfırıncı and Gülcan Şener299

CHAPTER 7.3  WORD-OF-MOUTH MARKETING

Renan Tan Tavukçuoğlu321

SECTION 8
DIGITAL COMMUNICATION
CHAPTER 8.1  A SURVEY OF MARKETING
MANAGEMENT FOR THE VIDEO GAMES INDUSTRY
IN TURKEY
Sercan Şengün353

CHAPTER 8.2  MARKETING IN COOPERATION WITH

TECHNOLOGY TO FORM NEW DIRECTIVES
IN CONSUMER LIFE
Mustafa Özgür Güngör389

SECTION 9
DELIGHTS OF THE TURKISH MARKET
CHAPTER 9.1  WHEN DELIGHTS TURN BITTER:
CONSUMER RESISTANCE IN TURKEY
Melike Demirbag-Kaplan411

CHAPTER 9.2  THE MYSTIQUE OF LUXURY

PRODUCTS
Meltem Kiygi-Calli431

INDEX 455
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LIST OF CONTRIBUTORS

Çiğdem Başfirinci, Associate Professor, Karadeniz Technical University,

Trabzon, Turkey
Aslı Bozdağ, PhD candidate, Istanbul Bilgi University, Istanbul, Turkey
Dr. Mesut Çiçek, Research Assistant, Yalova University, Yalova, Turkey
Dr. Ayşen Coşkun, Assistant Professor, Akdeniz University, Antalya, Turkey
Dr. Melike Demirbag-Kaplan, Associate Professor, Yasar University, Izmir,
Turkey
Dr. I. Taylan Dörtyol, Associate Professor, Akdeniz University, Antalya,
Turkey
Dr. Hande Begüm Bumin Doyduk, Assistant Professor, Gelişim University,
Istanbul, Turkey
Dr. Muhterem Şebnem Ensari, Assistant Professor, Okan University,
Istanbul, Turkey
Eda Aylin Genç, PhD candidate, Manchester Metropolitan University,
Manchester, UK
Dr. Mustafa Özgür Güngör, Assistant Professor, Okan University, Istanbul,
Turkey
Dr. Zeynep Gürhan-Canli, Professor, Koç University, Istanbul, Turkey
Metehan Igneci, PhD candidate, Yasar University, Izmir, Turkey
Dr. Hüseyin Sami Karaca, Assistant Professor, Boğaziçi University, Istanbul,
Turkey
Dr. Özlem Hesapçı Karaca, Associate Professor, Boğaziçi University, Istanbul,
Turkey
Özgecan Karanci, Lecturer, Maltepe University, Istanbul, Turkey
Dr. Olgun Kitapci, Associate Professor, Akdeniz University, Antalya, Turkey
Dr. Meltem Kiygi-Calli, Assistant Professor, Kadir Has University, Istanbul,
Turkey
Dr. Umut Kubat, Assistant Professor, Akdeniz University, Antalya, Turkey
Dr. Ezgi Merdin-Uygur, Assistant Professor, Kadir Has University, Istanbul,
Turkey

ix
x List of Contributors

Dr. Elif Yolbulan Okan, Bahçeşehir University, Istanbul, Turkey

Dr. Abdullah Okumuş, Professor, Istanbul University, Istanbul, Turkey
Dr. Selen Öztürk, Assistant Professor, Istanbul University, Istanbul, Turkey
Dr. Selcen Ozturkcan, Associate Professor, Linnaeus University, Kalmar,
Sweden
Dr. Gülcan Şener, Assistant Professor, Karadeniz Technical University,
Trabzon, Turkey
Dr. Sercan Şengün, PostDoc Research Associate, Computer Science and
Artificial Intelligence Laboratory (CSAIL), Massachusetts Institute of
Technology, Cambridge, MA, USA
Renan Tan Tavukçuoğlu, CEO and Owner, Tavsiye Evi, Istanbul, Turkey
Dr. Can Uslay, Associate Professor, Rutgers University, Piscataway, NJ, USA
Elif Yelseli, Türkiye Şişe ve Cam Fabrikaları A.Ş., Istanbul, Turkey
Dr. Elif Yurdakul, Assistant Professor, Istanbul Bilgi University, Istanbul,
Turkey
ABOUT THE EDITORS

Dr. Selcen Ozturkcan continues her academic career as an Associate of

Marketing at the Linnaeus University (Sweden), Visiting Professor at the
Helsinki School of Business (Finland) and Network Professor of Marketing
at the Brand Practice Forum of Sabanci University (Turkey). Previously, she
worked as an Assistant Professor of Business Administration at Jönköping
University (Sweden). Prior to relocating to Scandinavia, Dr. Öztürkcan served
as a Professor of New Media (2017–2018) at the Faculty of Communication
of Bahçeşehir University (Turkey), Associate Professor of Marketing
(2011–2016) and Assistant Professor of Marketing (2010–2011) at the Social
Sciences Institute of Istanbul Bilgi University (Turkey). She is a graduate of
Tarsus American High School (1995), and holds a B.Sc. Honours (1999) in
Materials Science and Metallurgical Engineering from Middle East Technical
University, an MBA from the Bilkent University on merit-scholarship (2001),
and a PhD in Management Engineering from Istanbul Technical University
(2007), where she also received the Outstanding PhD Award of the Turkish
Educational Foundation (2007). Her post-doc research activities were hosted
by Sabanci University (2006–2008) and Ozyegin University (2008–2010).
Dr. Elif Yolbulan Okan graduated from Middle East Technical University
with a BSc degree in Business Administration (1995), earned her MSc in
Marketing from the University of Salford, Manchester (1997) and a PhD in
Marketing from Yeditepe University (2007). She worked at TEB and Osmanlı
Bank between 1998 and 2001. She was a faculty member at the Department
of Business Administration in Yeditepe University between 2002 and 2016.
She worked as an Associate Professor of Marketing at Okan University
(2016–2018). Since February 2018, she has been working at Bahçeşehir
University, Turkey. Her research interests include marketing, brand manage-
ment and consumer behaviour. Dr Yolbulan Okan’s research has appeared as
book chapters, case studies in books and articles published by national and
international journals. She also lectures in Brand Management and Integrated
Marketing Communication seminars at the Turquality Programme.

xi
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 SECTION 1
BASICS OF MARKETING
MANAGEMENT IN TURKEY
This page intentionally left blank
CHAPTER 1.1
INTRODUCTION

Selcen Ozturkcan and Elif Yolbulan-Okan

The twenty-first century has set the stage for global economic power to shift
in favour of emerging countries. Emerging market economies have assumed
a crucial role in becoming significant drivers of global growth since the turn
of the millennium. Moreover, the ever-increasing complexity, fragility and
transparency of the world economy has taken its toll, leading to intense
suffering in developed countries, particularly on occasions of economic
crises, while emerging countries enjoy high growth rates. According to the
Euromonitor International’s report, emerging economies are expected to grow
approximately three times faster than the developed economies, which is to
account for approximately 65% of the global economic growth by the year
2020. Economies of the emerging countries are expected to rapidly catch up,
if not supersede, the progress of the developed countries by 2020. In a similar
vein, the Turkish economy is expected to grow bigger than that of Italy by the
year 2030 as forecasted in PWC’s The World in 2050 report.
Emerging countries are often associated with low per capita rapid growth,
high volatility, low maturity and higher than average return in using economic
liberalisation as their primary engine of growth (Hoskisson, Eden, Lau, &
Wright, 2000). Low per capita income is particularly known as the key driving
force of rapid growth in emerging countries. For instance, the economic growth
observed in 2011 in developed countries and emerging countries was at the level
of 1–2% and 3–4%, respectively. Higher growth rates were observed in emerg-
ing countries, which were defined by Zou and Cavusgil (2002) as the ‘coun-
tries that have low income but experience rapid economic growths’. Despite

Marketing Management in Turkey, 3–8

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181002
3
4 INTRODUCTION

the higher economic growth, emerging countries still involve certain challenges
and risks associated with their uneven regional development, inequality, weak
public governance and abundant environmental problems. Therefore, multi-
national companies aiming to enter and expand their businesses in emerging
markets need to tackle unique challenges as well as promising opportunities.
The value of local information, findings and know-how are obvious in
overcoming challenges involved with emerging markets. However, literature
on emerging markets is yet to emerge to attract more academic research. This
long overdue book aims to fill this gap by presenting fundamental marketing
management topics with the lens on Turkey as an emerging country. Focus is
dedicated to market potential with opportunities of marketing, standardisa-
tion and customisation possibilities. Findings presented about the Turkish
market also provide insights into similar emerging markets with an opportu-
nity to discuss common (mis)perceptions and (mis)conceptions.
Marketing Management in Turkey comprises nine chapters. The first
chapter aims to define the marketing environment and marketing history of
Turkey. During the early years of the establishment of the Republic of Turkey,
capitalism, industrialisation, modern marketing and consumer culture have
emerged as new concerns along with the adaptation of liberal policies. Later,
economic, cultural, historical, social and political forces have further shaped
the marketing landscape. The substantial development in manufacturing and
increased foreign trade had major impact on the adaptation of modern mar-
keting practices. Besides the dramatic shifts in political, economic and social
environment in the last century, the global and local ups and downs in the
new millennium also provide important reasons for thoroughly examining
the Turkish marketing landscape. Chapter 1.2 titled ‘From Bazaars to Digital
Environment: A Short History of Marketing in the Turkish Context’ pro-
vides an insight and a brief history regarding the development of the Turkish
marketing context throughout the years. Next, in chapter 1.3, titled ‘Business
Ethics, Marketing Ethics, Consumer Ethics, Sustainable Consumption and
Corporate Social Responsibility in Turkey’, awareness and involvement levels
about ethics and sustainability issues are discussed with real-life examples of
the Turkish market and consumers to provide cultural differences.
In chapter 2, ‘Turkish Market Insight’ is examined in two sub-chapters.
In addition to the impacts of global trends, such as green consumption and
voluntary simplicity, the Turkish market also has its own trends shaped by
the joint forces of East and West. These trends and the consumer culture in
Turkey need to be understood carefully by international companies intending
to do business in Turkey. Besides popular topics, such as consumption and sat-
isfaction, more unconventional topics, such as the sharing economy, presents
Introduction 5

a promising area to gain insight into the Turkish market. In ­chapter 2.1, titled
‘The Sharing Economy in Turkey: A Marketing Perspective’, the future of
the sharing economy in Turkey is discussed, and success indicators in the
Turkish market are compared and contrasted with that of the United States,
the United Kingdom and Brazil. The second part of chapter, i.e. chapter 2.2,
‘Analysis of the Turkish Market Research Industry: The Changing Role of the
Researcher’, intends to include marketing intelligence systems and opportuni-
ties to make use of big data in Turkey. The challenges and changes throughout
the market research environment are examined and the new roles of research-
ers and new perceptions of the research industry are discussed thoroughly.
Chapter 3, ‘A Review of Factors Affecting Turkish Consumer Behaviour’
includes cultural, social, psychological and personal factors of Turkish con-
sumers. As Sandıkçı and Ger (2002) state: ‘Turkish consumptionscape is
complex and multi-layered where different adaptations of the modern iden-
tity and modern consumption practices co-exist’. This highly dynamic nature
of consumptionscape provides highly interesting and inspiring insights for
other similar emerging countries. As a highly attractive market, recent trends
in both business and consumer markets are very crucial for global firms aim-
ing to adapt marketing strategies in Turkey.
Although many global economists have recognised substantial growth in the
Turkish economy, only a few Turkish brands have been considered truly global.
Recently, few Turkish brands such as THY (Turkish Airlines), Beko and Mavi
Jeans have been flourishing, yet many (e.g. Simit Sarayi) are investing heavily
in establishing emotional and functional connections with their international
consumers. Lately, Turkey has initiated a programme called TURQUALITY
to globalise its world-class domestic brands (Sheth, 2011). Thus, the attempts
in building global Turkish brands and also success and failure stories in build-
ing and managing domestic brands would put forward valuable branding les-
sons for all emerging and developed countries that aim to enter these markets.
In ­chapter  4, ‘Building Brands in Turkey’, three sub-chapters are included. In
chapter 4.1, ‘Consumer–Brand Relationships in Turkey’, a comprehensive and
well-informed analysis of the issues and practices involved in consumer–brand
relationships in the Turkish marketing context is examined.
Competitive dynamics of Turkey as an emerging market need to be analysed
by evaluating export, import and production capacities of Turkish manufac-
turing and service companies. Second part, chapter 4.2, titled ‘Competitive
Dynamics in Turkey’, aims to guide multinational companies and entrepre-
neurs in Turkey by explaining the competitive environment in the country.
In recent years, the branding concept has been applied to cities and
regions. Chapter 4.3, ‘Place Marketing in Turkey’, examined place branding
6 INTRODUCTION

campaigns in Turkey with regard to the role of social media, culture, movies,
mega-sports events and slow city concept via provided examples.
In chapter 5, the rise of experientialism in retail industries is studied, and
the social aspects of experiences are discussed in the context of third place
experiences. Chapter 5.1, titled ‘Experience Consumption in Turkey’ aims to
show how experientialism is adapted within the Turkish marketing context by
providing some empirical findings.
Along with the global advancements in technology, the one-size-and-one-
type-fits-all approach in supply chain is becoming obsolete. Examples pro-
vided give insights on how the Turkish marketing landscape copes with this
trend, which necessitates faster, leaner and more responsive strategies. In chap-
ter 6.1, titled ‘The Birth of Omni-Channel Marketing and New Dynamics of
Consumers’ Approach to Retail Channels’, the latest trends in marketing chan-
nels are discussed with regard to emerging digital technologies and relevant
success factors, challenges and opportunities in implementing the related omni-
channel strategies. Several omni-channel initiatives from Turkey are reported.
Regarding the conventional media in Turkey, TV advertising is yet to hold
the majority share of the industry’s revenue stream. A creative advertising
festival named ‘The Crystal Apple Award’ has been organised for more than
30 years, while Effie competitions exist for performance-based indicators. Both
indicate high devotedness of Turkish advertising and marketing professionals.
Besides the promising advertising landscape, Turkey has also its special limita-
tions related with its social, legal and cultural sub-differences. The advertising
and digital market is booming in Turkey. According to PwC’s Global enter-
tainment and media outlook 2014–2018 report, Turkey is the second-largest
Internet advertising market in Europe. Social life, business and marketing
arena are highly affected by the Turkish consumers’ high Internet access ratio.
Unlike many other countries, recent technology enables Turkey to evolve as an
online trendsetter market within its region. Thus, this chapter focuses on the
digital revolution in Turkey, with its impact on marketing practices.
Moreover, controversial advertising practices related to religiosity, gender,
stereotyping, sexuality, obscenity and violence need a deeper investigation. In
chapter 7, there are three sub-chapters on the Turkish way of marketing com-
munication. In chapter 7.1, ‘IMC: Integrated Marketing Communication’,
the IMC concept in Turkey is elaborated upon and a worldwide popular case
of ‘Nusret’ is provided as an example. This case provides insight into crea-
tivity in advertising coupled with modern integrated marketing communica-
tion methods. Next, contemporary ways of using traditional mass advertising
based on Turkish brand experiences are discovered. Chapter 7.2 titled ‘Is the
Advertisement Really Dead? A Case Study of Filli Boya,’ points out how TV
Introduction 7

advertisement, a so-called ‘traditional and boring’ communication tool, can

still be effective when creatively integrated into the contemporary marketing
philosophy.
Increase in the number of media channels, having too many product
options to choose from, and the massive amount of advertisement pieces lead
the way to the success of word of mouth. Recent developments in technology
and increase in the number of social media tools and users place more empha-
sis on the Word of Mouth Marketing (WOMM) than ever. In chapter 7.3,
‘Word-of-Mouth Marketing,’ the key points of WOMM are summarised and
a roadmap for successful WOMM applications is provided. In this chapter,
several best practices from the Turkish marketing context are examined.
Chapter 8.1, titled ‘A Survey of Marketing Management for the Video
games Industry in Turkey’ analyses the marketing management practices with
regard to the videogames industry in Turkey. Research on the videogame
industry in Turkey is very scarce despite the large size of the videogame pro-
duction industry. This chapter aims to contribute to the literature and iden-
tify the extended value chains by defining the critical success factors peculiar
to the local environment.
Technology continues to assume an important role in changing lives of
consumers with its swift introduction of new developments. Chapter 8.2,
titled ‘Marketing in Cooperation with Technology to Form New Directives
in Consumer Life’, provides three consecutive stages to explain ongoing digi-
talisation with regard to marketing science and information technology.
The last section of the book covers two chapters aiming to discuss more
unconventional topics such as luxury marketing and consumer resistance.
Consumers are increasingly getting more powerful than ever. Their responses
to political, social, environmental and economic issues are getting harsher in
the new world order. Although Turkey is a predominantly Muslim yet secu-
lar and democratic country, religion started to play a more important role
in Turkish consumption culture only in the 1980s (Sandıkçı and Ger, 2009).
Therefore, both global and local cultural/political changes, rather than economic
necessities, can be examined in terms of motivations for anti-consumerism
(Yolbulan Okan, Ozaykun, & Beser Gol, 2014). In chapter 9.1, titled ‘When
Delights Turn Bitter: Consumer Resistance in Turkey’, the consumer resist-
ance in the Turkish marketing context is discussed by providing a multitude
of perspectives to explore antecedents, performance and outcomes of resist-
ant behaviour in an emerging economy.
According to McKinsey’s recent report, luxury sales in Turkey have
increased by 37% from 2008 to 2012, while the luxury market is expected to
reach $5.4 billion as of 2018. Thus, motivations behind luxury consumption
8 INTRODUCTION

deserve a careful investigation for developing appropriate branding strategies.

Cultural heterogeneity studies on compulsive buying tendencies and anteced-
ents of luxury consumption of Turkish consumers underline inspiring results
for marketing practitioners. In chapter 9.2, titled ‘The Mystique of Luxury
Products’, the definition of luxury marketing, the classification of luxury
goods, the requirements of luxury marketing mix (product, price, distribu-
tion and promotion) and applied strategies are examined.

REFERENCES

Hoskisson, R. E., Eden, L., Lau, C. M., & Wright, M. (2000). Strategy in emerging economies.
Academy of Management Journal, 43(3), 249–267.
Sandıkçı, O., & Ger, G. (2002). In-between modernities and post-modernities: Theorizing Turkish
consumptionscape. In S. M. Broniarczyk and K. Nakamoto (Eds.), Advances in consumer
research (Vol. 29, pp. 465–470). Valdosta, GA: Association for Consumer Research.
Sandıkçı, O., & Ger, G. (2009). Islam and consumption: Beyond essentialism. In A. L. McGill &
S. S. Duluth (Eds.), Advances in consumer research (Vol. 36, pp. 210–213). MN: Association
for Consumer Research.
Sheth, J. N. (2011). Impact of emerging markets on marketing: Rethinking existing perspectives
and practices. Journal of Marketing, 75(4), 166–182.
Yolbulan Okan, E., Ozaykun, C., & Beser Gol, S. (2014, July). Profiling the Turkish anti-­
consumers. In International ınterdisciplinary business-economics advancement conference,
Istanbul, Turkey.
Zou, S., & Cavusgil, S. T. (2002). The GMS: A broad conceptualization of global marketing
strategy and its effect on firm performance. Journal of Marketing, 66(4), 40–56.
CHAPTER 1.2
FROM BAZAARS TO DIGITAL
ENVIRONMENT: A SHORT
HISTORY OF MARKETING IN THE
TURKISH CONTEXT

Eda Aylin Genc and Metehan Igneci

ABSTRACT

The introduction of consumer products can be traced back to the invention

of the wheel, and after the first invention, humankind discovered that what
can be consumable is marketable. Therefore, it is safe to suggest that the
development of marketing, in thought and practice, has always been hand-
in-hand with the evolution of humankind. Modern Turkey or Anatolia, one
of the cradles of civilisation located in the Fertile Crescent or, in other
words, Old Mesopotamia, has always been the centre of trade and market-
ing. As an emerging economy, Turkey has a lot to combine the ways of
western practices with market dynamics unique to her, whereas authors find
the development of marketing practices in Turkey exceptionally interest-
ing. Therefore, this chapter aims to provide an insight and a brief history
regarding the development of the Turkish marketing context throughout
the years. We believe that this contribution will be helpful to those who are

Marketing Management in Turkey, 9–28

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181003
9
10 EDA AYLIN GENC AND METEHAN IGNECI

interested in the development of marketing in an emerging economy in an

academic fashion, as well as for those who are attracted to follow the foot-
prints of the modern era’s business environment.
Keywords: Marketing management; marketing history; Turkish
marketing practices; marketing in an emerging economy

INTRODUCTION
This chapter tries to discuss the development of marketing thought in Turkey
in a chronological flow. Development of marketing thought has always been
connected to historical, social, political, technological and economic fac-
tors, so we have tried to mention all the important points that have affected
the emergence and application of marketing models. Understanding and
analyzing the history of marketing in Turkey is of relevance for a couple
of reasons. Turkey is considered to be on the path of making a transition
to a modern industrial economy (Karaduman & Vohra, 2015). Turkey has
economic and political influence of power not only in the Mediterranean
but also in the West Asian and Middle East regions. Besides having a high
potential in terms of market attractiveness for foreign investors, foreign
operations and foreign direct investments (FDIs), Turkish Multinational
Corporations (here after MNCs) are steadily increasing in different parts
of the world. Turkey is a unique case to analyse in terms of the marketing
thought and trends perspective with its positive foreign investment climate
and opportunities, well-developing marketing orientation and structure of
consumption based on new trends, values and shopping patterns (Bilgin,
Sriram, & Wührer, 2004).
The contemporary, or most commonly used, understanding of marketing
originated in the 20th century Western culture. Marketing is considered to
be a dynamic concept that requires constant adaptation of firms and their
applications to the needs and desires of the consumers. In fact, this under-
standing of marketing was already rooted in Turkish culture long before. As a
matter of fact, the traditional trade manners were based mostly on customer
hospitality, service and satisfaction by responding to customer need as a pri-
ority. Turkish merchants have developed marketing practices that have been
always somewhat unique. Most of the Turkish trade shops carry a motto that
puts customer in front and says ‘Müşteri Velinimetimizdir’ (Customer is the
benefactor). With time, Turkey started learning modern concepts of business
From Bazaars to Digital Environment 11

from the Western world. However, as discussed and explained below, it gradu-
ally had its own unique ways of managing marketing activities.
One of the main turning points for Turkish marketing history were the
1980s. By the adaptation of neoliberal policies by both government and soci-
ety itself, introduction phase of foreign trade investment is accelerated, which
resulted in enhanced information flow that changed marketing practices.
Interestingly, all of these developments in business and marketing understand-
ing occurred in parallel with the world. There are many companies in Turkey
which follow and implement marketing-oriented management philosophy
(ensuring consumer satisfaction with the profitability of the firm), although
not in all sectors. Old school production or sales orientation is still prevalent in
some sectors (such as iron and steel, construction, etc.). Apart from explaining
the historical phases of Turkish marketing, we try to discuss and suggest that
a strategic vision is needed for an MNC wishing to enter the Turkish market.
Introduction of consumer products can be traced back to the invention
of the wheel, and after the first invention, humankind realised that what is
consumable is marketable. Therefore, it is safe to suggest that development
of marketing, in thought and practice, has always been hand-in-hand with
the evolution of humankind. Modern Turkey, or Anatolia, one of the cra-
dles of civilisation located in the Fertile Crescent, or in other words Old
Mesopotamia, has always been the centre of trade and marketing.
The classical historical approach suggests that the geopolitics of Turkey
have been always significantly important. The majority of all essential trade
roads to the West, the lifeblood of global trade, long before globalisation
was introduced, have passed through these lands. Even though empires col-
lapsed and trade roads have changed; the importance of marketing has never
decreased in this part of the earth. In order to survive within an environment
that was fiercely competitive even in past eras, marketing has been a tool for
creating competitive advantage. Turkish merchants have developed market-
ing practices that have been always somewhat unique when compared with
stereotypical cultural schools mainly due to a multicultural context of geo­
graphy and interaction with other nations.
Even though multinational bazaars were so intense and merchants and
goods from all around the world could be found in the big cities of imperial-
ist era, establishment of modern Turkey and grounds for a protective closed
economy (etatism) have been a somewhat of setback in developing modern
marketing practices within the country. However, this etatist economy was
necessary for a young republic to flourish. The etatist economic principles that
were u ­ tilised/implemented during the era of 1923–1950 became a powering
tool for the Turkish economy. The military coup in 1980 and the introduction
12 EDA AYLIN GENC AND METEHAN IGNECI

of neoliberal policies in Turkish society encouraged and alternated marketing

practices. Although winds of globalisation in the 1990s have presented new ways
of marketing practices to Turkey, the country is still tirelessly trying to catch the
schools of modern marketing that have emerged long before in the West.
Turkey as an emerging economy still has a lot to combine the ways of
Western practices with her unique market dynamics, and we find the develop-
ment of marketing practices in Turkey exceptionally interesting. Therefore,
this chapter aims to provide an insight and a brief history regarding the
development of the Turkish marketing context. We believe that this contri-
bution would be helpful to those who are interested in the development of
marketing in an emerging economy from an academic fashion, as well as for
those who are attracted to follow the footprints of the modern era’s business
environment.

DEVELOPMENT OF TURKISH MARKETING SCENE

Globalisation significantly affects today’s marketing practices, yet marketing
is neither a contemporary nor a forgotten term but a re-emerged one. As it is
stated at the beginning of this chapter, the Turkish marketing scene cannot
be by the establishment of contemporary liberal policies and the considerable
effect of globalisation that have spread like wildfire after the collapse of two
polarised world orders.
The Turkish education system, as well as the academic environment, are
pretty certain about the geopolitical importance of Turkish borders, to the
extent that it has become a cliché. Nevertheless, one cannot neglect the fact of
Turkey being the border between Asia and Europe. Accordingly, most of the
trade routes that have been established since the start of the civilisation have
passed through Anatolia. Constantinople, here after Istanbul, the capital of
Ottoman Empire was the main attraction point of the first wave of globalisa-
tion between 1870 and 1914 (Hopkins, 2002). Keeping this in mind, it is also
fiercely defended by certain political groups that capitulation and the flood
of foreign goods into the Ottoman market were the nails in the coffin of
Ottoman Empire (Orcan, 2008). This chapter will not substantiate or refute
the effects of capitulation and the flooding of the market with foreign prod-
ucts, yet it is important to understand the developments of the era.
The literature regarding the development of marketing practices in Turkey
is rare and limited, but Kose’s (2008) study delivers efficient insights and an
enormous contribution to those who are interested in the Ottoman business
environment. Accordingly, it was not only the Ottoman market that was
From Bazaars to Digital Environment 13

affected by the influx of foreign goods but even the biggest empire of the time,
the British Empire, needed to take steps to protect local commodities against
the flood of Germany-originated products.
Before moving into the transformation of oriental bazaars into digital
marketplaces, singling out a specific date as the beginning of an epoch for
marketing practices would be a milestone to refer to. Finding a specific start-
ing point will be quite difficult due to controversial history revolving around
the issue. Nevertheless, the following section will try to analyse and under-
stand the development of marketing thought in Turkey by taking the starting
point as the downfall of Ottoman Empire.

DOWNFALL OF THE OTTOMAN EMPIRE AND

PRE-REPUBLICAN ERA
Evaluating the performance of foreign brands active in the Ottoman markets
without considering the economic and political structure of the Ottoman Empire
will cause the researcher to miss many insights about the marketing practices.
Therefore, this part starts by summarising the Ottoman political and economic
situation between 1870 and 1914, at the time of first wave of globalisation.
Starting with the 1770s, the Ottoman official budget started to experience
huge deficits, which peaked particularly during the 1830s. As a response,
Sultan Mahmud II issued the biggest debasement rate that the Ottoman
Empire has ever experienced since the foundation of the Empire as chiefdom
in Anatolia. Every Ottoman citizen, regardless of their religion or national-
ity, was affected by this financial decision. Although Sultan Mahmud always
wanted to transform the ancient Janissary army with a new Westernised
military approach, the position grew grim. On the other hand, even though
debasement increased revenues in the short term, it direly hurt international
trade and the political stability of the Empire (Pamuk, 2001).
In order to pay the costs of Crimean War, the Ottoman Empire approached
Western countries for financial support, which resulted as the start of long-
lasting praxis that hastened the downfall of the Empire. The power lost due to
borrowing allowed Western countries to invade the borders of the Ottoman
Empire as desired, whereas dominions, such as Bulgaria, gained their free-
dom (Kongar, 2016). While other Balkan territories were on the verge of sep-
aration, the Ottoman Empire continued to lose both financial and production
powers. Eventually, the Empire failed, and John Russell in 1853 coined the
term ‘sick man of Europe’ (De Bellaigue, 2001).
14 EDA AYLIN GENC AND METEHAN IGNECI

In the light of this economic and political structure of the time, it is hard
to follow the birth of the domestic marketing scene. Companies, particularly
from continental Europe and Great Britain, were active within the national
Ottoman market. Annuaire Oriental, one of the major sources regarding
the activities of Western companies within the borders of Ottoman Empire,
issued yellow page advertisements of companies particularly active in the rich
turfs of Istanbul such as Beyoǧlu and Pera, although the wants, needs and
tastes of regular cities of the Ottoman Empire were also reported and docu-
mented (Kose, 2008).
Kupferschmidt (2007) studied the activities of Singer sewing machine’s
history within the Ottoman borders as one of the first mass-produced con-
sumer goods marketed all over the world. In a sense, this machine may be the
first product that has been consumed by many households spreading all over
the globe, even before McDonald’s was founded (Davies, 1976; Godley, 2001;
Kose, 2007).
Apart from the flow of foreign products into the markets of Istanbul, Egypt,
Smyrna and other trade centres of the Empire, there was a societal change in
the capital owners as well. As the powers of Sultan and his national subjects
decreased, capital started to become more ‘cosmopolitan’. Capital owners of
European and Levantine descent, supported by the Ottoman elite bureau-
crats, attracted foreign brands. Nestlé, as a pioneering multinational com-
pany in the Ottoman Empire, became active. The activities of Nestlé of
that time provide important insights in the development and emergence of
marketing activities within the Ottoman Empire of the considered era with
limited resources.
According to Kose (2007), Nestlé agents were directly involved in activities
with pharmacists in Istanbul. This makes an impression that direct marketing
with respect to modern terminology was the most active method, although
distribution channels in other big cities were established. Nevertheless, it is
safe to suggest that the efficient and effective way to reach the consumer was
by using newspaper advertisements. Nestlé was advertising in newspapers
that were active in local environment, such as the ones in Thessaloniki, or
in well-known local European newspapers of that time, such as the Levant
Herald.
After some time, newspaper advertising was so effective and efficient that
many local producers came to a point of bankruptcy. For example, nearly
1,500 businesses operating in the Bursa region closed their doors, as they
could not compete with foreign products. Another interesting example from
the Ottoman era regarding marketing practices is the war for ‘fez.’ Fez was
the hat of that era particularly worn by the Muslim population. Referred to
From Bazaars to Digital Environment 15

as the first positioning and creating brand loyalty practice in the Ottoman
history through press advertisements, national producer ‘Feshane’ had issued
a newspaper advertisement that discredited foreign products in the market.
Even though the national producer lost this effort to gain the upper hand
against the foreign fez in the market, this provided an important insight for
researchers who were interested in the emergence of marketing in Turkey
(Cakir, 2004). The following section will follow the footprints of marketing in
Turkey with the foundation of the modern Republic.

REPUBLICAN OR SINGLE PARTY ERA

The young Turkish Republic founded by Mustafa Kemal Atatürk, who gov-
erned the country till his passing in 1938, basically inherited a ruined eco-
nomic and political structure in the ashes of the Ottoman Empire. Ottomans
were on the losing side in World War I, and the Empire was shared as a spoil
among the victors of the war. 1923 was a cornerstone for all the people living
within the historic Ottoman borders. Political stability had been somewhat
sustained following the proclamation of the Republic and the establishment of
a parliamentary system; Ataturk’s existence as the president at that time was
also a major contributing factor to the political strength of young republic.
According to Bugra (1994), only 264 industrial initiatives were active
between 1913 and 1915 that employed more than 10 workers. As stated above,
the governing body of the Empire was not successful either in protecting local
producers or in paying institutional debts. What was not done by the Empire
was immediately done by the Republic. A law had been issued in order to
increase the local production by allying with the private sector. But, it is hard
to say that this policy was fruitful. It was seen in 1930 that the progress was
not as visible as expected and the desired support wasn’t acquired via private
investments (Yamak, 2006). Literature is ultimately limited about the market-
ing practices that happened between 1923 and 1930. In addition to this, at a
time when the literacy rate had nearly dropped to 11% in the aftermath of
the alphabet reform, it was understandable that some of the footprints of
the Turkish business environment could not be traced. Although it should be
added that the alphabet reform was immensely successful in the long run, it
could be said that the efficiency of newspaper advertisements decreased dur-
ing this time.
Separating the Ataturk period into two is a common practice in the Turkish
economic literature. The period between 1923 and 1929 is mentioned as the
‘liberal era’, while 1930–1938 is described as the ‘etatism era’. Following the
16 EDA AYLIN GENC AND METEHAN IGNECI

Great Depression of the United States, the liberal motives were abandoned
and relationships with the Soviet Union were strengthened. Problems in the
US economy influenced prices of Turkey’s main export products, that is,
tobacco and cotton, whereas the debts inherited from the Empire were other
factors that led the emergence of etatist practices (Takim & Yilmaz, 2010).
So, it could be said that the etatist movement, from an economic perspec-
tive, paved the way for the domination of marketing campaigns of the prod-
ucts that were produced by the government. As aforementioned, it is hard
to come across an academic study that investigated the marketing practices
of that period, but Akcura’s (1994) book provides a case study of Asprin’s
journey to promote the product between 1925 and 1944. Another controver-
sial source of information is the modern criticism from certain politically-­
influenced newspapers regarding the marketing campaigns to encourage
state-produced alcohol usage issued in the 1930s.

POST-WAR YEARS FOR TURKEY

Observations to this point revealed that developments regarding the market-
ing in Turkey cannot be explained without considering the macro political
changes both domestic and global. The end of World War I was the time
of bottom-up changes in the Turkish context, while the aftermath of World
War II was a little bit different. Turkey was not actively involved in the War,
but was affected indirectly. Following the War’s end, a new political era for
the Turkish society emerged. Transformation to a multi-party system was
achieved, and the first general elections gave birth to new form of marketing:
political marketing.
The marketing history of Turkey in the 1950s can be observed through
political campaigns. Turkey missed being an early bird in using television,
and it took another decade to jump on the bandwagon; radio stayed as a pri-
mary source of information. Controlled by the government, radio was mostly
confined to notify society about the developments in Ankara, the seat of the
government. While rest of the world was dominated by the emergence of tel-
evision, Turkey was still limited to brochures and newspaper advertisements
that were trying to increase the demand for certain products.
Meanwhile, political reform caused an unorthodox revolution regarding
marketing in Turkey. Campaigns carried out by the Democrat Party were the
first aggressive implementation of political marketing. Their slogan ‘Yeter!
Söz Milletindir!’ (Enough! People have the word) was considered as one of
the most effective and efficient marketing slogans in the history of marketing
From Bazaars to Digital Environment 17

within the country. Accordingly, with the accurate implementation of their

marketing message, the Democrat Party in 1950 won the election with a land-
mark difference (Duman & Ipeksen, 2013). Even though Turkish context was
lacking the influence of television, the idea of the 1950s marketing plan was
fiercely effective regarding political marketing. As demand was booming after
World War II and a new Fitzgerald-like consumption period had emerged,
information became essential (Fitzgerald, 1925).
Turkey’s first television broadcast was aired in 1969, and similar to other
nations, this medium transformed society (Zorlu, 2003). Even though televi-
sion was not active for all day long and broadcasts were limited, a regular
household in Turkey was spending their nights in their living rooms in front
of a television. So, the flow of information increased. Turkey’s first televi-
sion marketing advertisement was aired in 1972. Because of excess demand
between 1950 and 1970, marketing focus was primarily on differentiation.
Companies were trying to segregate themselves through sentimental tech-
niques, as the market was full of similar products.
On the other hand, examples of localisation strategies can be traced in
the 1970s. Joint alliances between Fiat-Murat via Koç Group and Renault–
Reno relationships, either to obtain the know-how or contracts to assemble
the majority of products within the Turkish borders could be considered as
one of the first glocalisation campaigns of Turkey. This strategy increased
the effectiveness of the sales by changing the original product name to
attract domestic consumers with a domestic name and create nation-wide
demand.

TURKISH MARKET UNDER NEOLIBERAL

INFLUENCE
The roots of neoliberalism first found a chance to emerge in Turkey in the
years of Turgut Ozal. Neoliberalism emphasises the transformation of state
powers through the alternation of current strategies on finance and market
processes, and retires itself from etatist control policies through privatisation
(Harvey, 2006). The Ozal-led government in Turkey is the follower and imple-
mentor of the laissez-faire movement that started to dominate the global
political scene after many failed left-winged revolutionary moves in the 1970s.
While Ozal might seem to be a technocrat, he was also a reformist politician
who opened the way for international trade and FDIs with the implementa-
tion of 24 January 1980 legislation (Onis, 2004).
18 EDA AYLIN GENC AND METEHAN IGNECI

It is impossible to separate the rise of marketing as a primary weapon of

business environment and neoliberal policies as a world-dominating power.
Ozal tried to open up a globalised business environment for Turkish mar-
ket by inviting global brands and encouraging the export of local products
to other countries. When one explores his decisions as an undersecretary in
1980, a clear view of a neoliberalist direction that Turkey was being steered
towards could be seen (Demirtas Bagdonas, 2012; Ozkan & Foster, 2005).
The understanding of marketing as an important asset and accepting it as
a scientific concept of business in Turkey also coincided with the 1980s era.
While in previous years fundamental sciences had attracted students and
academicians, business education started to grow rapidly, particularly after
the 1980s, as new business lines emerged with new state policies. Therefore,
the ‘real’ marketing era in Turkey started after the saturation of neoliberalist
policies, with Turkey taking its role to the global arena.
Apart from accepting marketing as a science destined to develop within
the business environment, marketing practices were enhanced in this era.
Following the implementation of neoliberal policies and attracting foreign
investments introduced new products and services to Turkish environment.
As ‘product’ progressed, the marketing mix developed simultaneously.
Introduction of global brands that have been active in other parts of the
world for many years brought new marketing strategies that the Turkish mar-
ket needed for adapting to its new global partners. Stranded with the lim-
its of direct marketing techniques and using newspaper advertisements as a
medium of marketing strategy, these new approaches enriched the horizon
of the Turkish marketing scene. Although Turkey’s unique geographical and
cultural values certainly provided fresh insights into practice, liberal policies
adopted during the 1980s had political, social and economic consequences.
The decrease in the agricultural workforce, migrations to cities and other
European countries, especially Germany, spread of mass communication
tools, the emergence of citizens as consumers on a global level, and advance-
ments in advertising industry initiated the emergence of consumer culture
(Başfırıncı, 2011; Orçan, 2008).
One of the prominent and progenitor studies in literature regarding the
marketing practices in Turkey is Ugur Yavas’ (1983) comparison about the
data collection of foreign and Turkish companies operating in Turkey. His
study suggests that foreign companies were carrying out the lessons learnt
from the science of marketing that had already been developed in their home
countries, while Turkish companies were highly oriented towards the return
of investment. Foreign companies primarily focused on competitors’ actions,
forecasting and cost of productivity, while Turkish counterparts were trying
From Bazaars to Digital Environment 19

to benefit from the increased market share. The primary difference existed in
regularity. While foreign companies were constantly repeating their research
activities, it was a one-time event for most of the Turkish firms.
Yavas’ (1983) forecasts regarding the following decades were on the spot.
He was the first to envision and ensure that there was a possibility of a bright
future for marketing in Turkey. The first indications came in the 1990s with the
adaptation of foreign products into the Turkish society. The passion for dif-
ference without considering other factors had substituted itself with quality,
performance and concerns of design. As competition in the market and the
socio-economic welfare increased in the society, consumer concern started to
shift towards buying the right product at the right time; thereby differentiation
strategies started to become popular. Naturally, corporations began to focus on
their promises in their marketing communications. The chain-breaking develop-
ment in marketing practices for Turkey was, in fact, the introduction of privately
owned TV channels. Scientific studies have enormously served the intellectual
segment of Turkish society, particularly the business elites who are mostly uni-
versity graduates. Nevertheless, what brought marketing to the general public is
the television. Since its slow introduction in the 1970s, television became an inte-
gral piece of household equipment as time passed, thanks to neoliberal policies.
Some may suggest that the current status of marketing practices are still
lagging behind the rest of the world, but, in fact, combination of unique his-
torical values with modern trends are producing important results.

NEW MILLENNIA AND THE DIGITAL ERA

The importance of marketing started to be felt heavily after the implementa-
tion of neoliberalist policy and the dissemination of foreign investments in
Turkish industries. Although embracing branches of social sciences, such as
business studies, as essential educational material also helped and enhanced
the development of marketing practices in Turkey, the reshaping of the
Turkish business environment is directly related to transformations in higher
education (Usdiken, 2009). Former patrons were uneducated capital owners
and provincial people who benefitted from the first-move advantage and sup-
ported by the newly established Republic. But after the 1980s, the impor-
tance of education was understood by society, and higher education became
a determinant in competition.
The traditional image of a ‘marketer’ was not so. People still remember
the warning notices that prohibit the entrance of a salesman to apartments.
People thought marketers were disturbing, blood-sucking conmen, only
20 EDA AYLIN GENC AND METEHAN IGNECI

working to get people’s hard-earned money by selling products that would

be of no use to them. Altered perceptions about the practices in the routine
course of life were felt in the academic literature as well. Torlak’s (2001) book
has studied very comprehensively the ethics and morality of marketing, while
Tek and Ozgul’s (2005) study of the principles of modern marketing escalated
the literature. It can be suggested that years following the millennium were
the age of value creation for both Turkish marketers and marketing practices.
One of the ultimate changing mechanisms that caused alterations in mar-
keting models was caused by the forces of globalisation that gave rise to the
emergence of knowledge-based economies. The service sector and trade in
services became engines for growth, particularly in developing economies
such as Turkey. This led to the application and need for marketing-mix mod-
els (4Ps) to extend to 7Ps model.
The definition of information age or information society is not the topic
of this chapter, but the coming of the information age in full power directly
affects the context of this section. When things started to become con-
nected through various channels and concepts such as e-society, e-marketing,
e-commerce and pretty much anything with an ‘e’ was introduced, marketing
changed its ‘place’ as well. From political environment to tourism industry
(Pirnar, 2005), transactions moved in electronic environment as demanded by
the information society.
Information society invested heavily in the change in the nature of ‘place’
in the marketing mix. Earlier, the Turkish marketing industry was slow to
catch up with the developments of the Western world, but the same could not
be said for the progress that transformation has brought to information soci-
ety. Even though it is also naïve to pronounce a full-scale of modern require-
ments, Turkey is on the right track. The Turkish e-marketing industry has
started to flourish. Regarding the data from BKM (Interbank Card Centre),
the total value of domestic e-transaction in January 2016 was approximately
33 million Turkish Liras (1 TL = 2.96 USD). This demand has produced suc-
cessful Internet marketing brands such as Markafoni, Trendyol, Gittigidiyor,
etc., that have attracted foreign investors.
As the use of new medium technologies has emerged, the need for mar-
keting departments to utilise them effectively became pivotal. In order not to
lag behind the improvements in the contemporary marketing world, Turkish
marketing practices have included almost instantly the social media usage
in their portfolios. It is no secret that social media usage takes up quite a bit
of time in each individual user’s day. Considering a social media application
without a marketer would be naïve. In order to promote products and ser-
vices effectively without limitation of physical place is a gigantic advantage.
From Bazaars to Digital Environment 21

In a way, Facebook and Twitter carried a whole marketplace to electronic

environment and this has been followed by Instagram. According to a report
presented by Digitalajanslar (2017), entitled ‘Statistics of Internet and
Social Media Usage in Turkey’, Facebook holds the highest number of users
among the social media platforms. Report reveals that 48 million people are
active on the internet as social media users of 71 million mobile subscrib-
ers in Turkey. In a country where 60% of the population is an Internet and
social media user, it would be safe to suggest that the future of market-
ing practices in Turkey lies in the development of social media marketing
(Barutcu & Tomas, 2013).
On the other hand, the e-trade volume of Turkey has reached TL17.5 bil-
lion, and grew 34% between 2013 and 2016 (TUSIAD, 2017). Regarding the
data from ETID, 77% of the shopping from e-trade websites comes from the
Marmara, Inner Anatolia and Aegean regions. It is expected by academicians
that by 2020, the Turkish e-trade volume will pass 40 billion TRY barrier.
In addition to this, it is important to underline the fact that introduction
of smartphones and tablets has increased the e-trade volume significantly
(Bulut, Igneci, & Okur, 2014).
One of the most trending topics discussed in Turkish marketing research
literature is neuromarketing. Primarily aimed to open up a black box in
the minds of consumers to understand and affect the purchasing decisions,
its application to new marketing research companies is being discussed.
Even though the topic itself attracts many Turkish academicians (Tulin,
2008; Tuzel, 2010; Ulman, Cakar, & Yıldız, 2015), implementation of this
practice is still rare.
As stated, the development of marketing practice in Turkey escalated quickly,
particularly after the implementation of neoliberal policies. So to say, various
forms of marketing practices are being implemented in everyday life in the
market. Things considered as impracticable are now not lagging behind. Many
bloggers are earning via affiliate marketing alliances, while micro-marketing is
the backbone of reaching the young Internet-using consumer segment.

ADAPTATION OR CUSTOMISATION OF UNIQUE

MARKET CHARACTERISTICS IN AN EMERGING
MARKET: TURKISH CASE
Over the last 20 years, emerging markets, such as China, Brazil, Mexico,
Indonesia, Russia and Turkey, have become influential players in the world
22 EDA AYLIN GENC AND METEHAN IGNECI

economy due to their unprecedented growth rates, structural changes and

significant market transformations. These developing markets have become
attractive strategic destinations for direct investments for MNCs. There is a
considerable amount of academic research that has attempted to understand
the attractiveness of these markets. Most of these studies have explained this
market success of growth as linked to neoliberal models of development, eco-
nomic potential of their geographies and resource-based explanations. But
still there is a lack of clear evidence in academic literature focusing on the
effect of unique market characteristics’ influence on MNC marketing strategy
adaptation (Christiansen, 2013). Accordingly, Kamal (2011, p. 21) points out
the lack of research in this area and states: ‘Specific research into emerging
markets is necessary since unique characteristics of developing economies
may prove many of the findings in developed economy settings invalid in an
emerging market setting’.
Turkey has been known as one of the biggest emerging markets featuring
some important characteristics regarding its geographical location, cultural
and linguistic closeness to Central Asian, European and Middle Eastern mar-
kets (Christiansen, 2013). Moreover, it is the only country that signed the EU
Customs Union agreement without becoming a member – a situation which
made Turkey a more interesting economy than other emerging markets. This
aforementioned agreement with the EU opened up the Turkish market for
EU manufacturers and conditions of agreement are being negotiated that will
enable Turkish firms to expand the rate of export.
According to the World Bank (2017) report; Turkey is among the world’s
leading producers of agricultural products, textiles, motor vehicles, con-
struction materials, ships and other transportation equipment. Turkey has
a dynamic industry and services infrastructure in addition to a wide and
young market compliant with the consumption trends of the EU. According
to Christiansen (2013, p. 237), Turkey has competitive market components
such as ‘business sophistication, innovation, institutional infrastructure in
the public industry and institutional governance performance in private sec-
tor were evaluated as more satisfactory’.
Nevertheless, Turkey is seen to be poor in terms of intangible asset own-
ership (intellectual property rights, registered trademarks and ownership of
unique brands), railway network and port quality and prevalence of infor-
mation and communication technology (WB Report Turkey, 2015). Turkey is
particularly specialised in producing a high volume of products at lower costs
rather than creating unique brands, knowledge, technology and know-how. All
these unique market characteristics have created a competitive advantage for
Turkey and brought the market to an attractive level of investment for MNCs.
From Bazaars to Digital Environment 23

The ability to market internationally has become the most significant asset
in today’s globalised markets. Most of the MNCs are in need of expanding
their opportunities outside their domestic markets, and when firm plans to
grow across new markets, it strives towards a global path in marketing its
assets. Understanding the market is the primary step that should be taken in
today’s global markets. While firms are aiming to become global, marketing
their goods and services on an international basis with suitable targeting and
positioning of the company’s goods becomes essential, and it is this situation
where international marketing abilities are developed.
Today’s scientists and thinkers accept and insist on one truth regarding the
adaptability of marketing thought models; that it is wrong to compare devel-
opment plans of advanced industrialised economies with those of developing
countries or apply them as they are. What is needed for an MNC that wants to
operate in a developing market is understanding macro and micro conditions;
its economic, social and historical stages initially and then an in-depth analy-
sis of its own conditions to choose the most effective and appropriate plan
suitable for its conditions; in a way, the customisation of marketing models.
Generally speaking, in advanced countries, there is an environment of
conscious buyers’ and sellers’ market in which a mass production – mass con-
sumption system and breakout competition – takes place. In Turkey, such an
environment is still developing and the necessary conditions of this environ-
ment have not been steadily rooted and advanced. What is needed for a firm
that wants to operate in the Turkish market is a customised marketing model.
Due to globalisation of capital, operations and profits, there has been
an increasing interest in the strategic decision-making regarding marketing
mix. One of the most debated strategic decision-making centres is, whether
it is more appropriate to pursue a marketing strategy based on standardisa-
tion or adaptation of various marketing mix elements. There is a consensus
that standardisation is the use of the same marketing programme in different
countries (Jain, 1989; Levitt, 1983; Ozsomer & Simonin, 2004). On the other
side, adaptation can be defined as the extent of marketing mix elements for
external markets in order to adjust to differences in the environment, con-
sumer behaviours and competitiveness. Thus, adaptation means the use of
specific strategies for different countries or regions.
Studies about standardisation started in the 1960s; Elinder (1965) was the
first to analyse the standardisation of promotion, and since then the main
interest has focused on the communication and product elements of the mar-
keting mix.
Incorrect adaptation or non-customised implementation of marketing
models causes firms to be unable to accomplish their objectives. For instance,
24 EDA AYLIN GENC AND METEHAN IGNECI

in a situation where an MNC from an advanced economy faces low mar-

ket penetration, low market share and low profitability in emerging markets,
failure of the firm was often attributed to market difficulties rather than
to firm’s incompetency in realising its objectives in the emerging market it
wanted to operate (Wührer, Bilgin, & Karaosmanoǧlu, 2011). Dawar and
Chattopadhyay (2002) explain this not-fit situation of an MNC as related to
emerging markets’ structural differences and the traditional ‘copy and paste’
marketing strategies. It will not work in these business settings unless they
are customised to the market conditions of the country. Successful MNCs
that can understand and analyse new markets tend to design strategies on a
regional basis (Wuhrer et al., 2011).
Analysing and understanding a new market in which the MNC wants to oper-
ate requires an in-depth analysis of the country. In the case of Turkey, a country
which is still classified as a developing country due to its relatively low human
development criteria (UNDP, 2005), with positive reforms and economic and
socio-cultural improvements in recent years, it still struggles with serious levels
of unemployment, high interest and inflation rates, and high levels of public
sector debt. Compared to some developped countries, Turkey’s high potential
industry, desrination management skills and the growth performance is much
better in terms of value and volume. due its high potential in its industry, desti-
nation management skills the growth performance in terms of value and volume
is much better when compared to some developed countries (Tosun, Okumus, &
Fyall, 2008). All these factors affecting the Turkish market should be considered
and the choice of marketing management philosophy should be customised to
the needs of the market by the MNC that wants to operate in Turkey.
Following development in the areas of economics and business practices,
the marketing thought is considered to have evolved during five distinct con-
cepts and eras which don’t have precise but have approximate dates: production
era (1870–1930), product era (1930–1940), selling era (1940–1950), customer
era (1950–1970) and societal era (1970–). It would be a fallacy to view these
eras in order. The order and applications of these marketing philosophies
have not been in sequence for each market. They have been altered or adapted
according to the market characteristics in which they operate. Understanding
evolutionary eras in a chronological order may give an impression that all
organisations and/or markets go through these eras (Tosun, Okumus, &
Fyall, 2008). An organisation operating in the service business can start with
consumer-oriented philosophy. But it would be misleading to presume that
all companies should be following this evolutionary process from produc-
tion to societal orientation. Organisations and destinations should be follow-
ing different orientations based upon their management philosophies and
From Bazaars to Digital Environment 25

the conditions under which they operate (Tosun, Okumus, & Fyall, 2008).
What should be noted are economic conditions and business policies,
country-specific conditions, changes in the pattern of tourism demand for a
country and structure of international tourism industry – all these influence
marketing orientations of a company in a developing country.

CONCLUSION AND FUTURE DIRECTIONS

This chapter attempted to review the history of marketing thought in Turkey
in a chronological flow by pinpointing important social, technological, politi-
cal and economic turning points. The literature on the history of marketing
thought in Turkey is so scarce that we believe this chapter to be the first step
towards encouraging more research in this area. Marketing thought in Turkey
is a unique case to analyse in terms of its unique market dynamics. Turkey’s
unique geographical and cultural values have provided fresh insights into the
practice of marketing. Most of the literature on the Turkish business market
is critical of the current whereabouts of marketing theories and practices in
Turkey, and stresses that the country is still lagging behind the world. However,
we suggest that the combination of unique historical values embedded in
Turkey and modern trends enhanced by global partners are producing interest-
ing customised marketing models. Given the fact that the subject of the study is
so scarce and limited in the Turkish marketing literature, we hope that this study
would be a pioneering research undertaken in this area. More in-depth analysis
of the Turkish marketing scene should be developed to investigate further areas.
Nowadays, the business environment is again feeling the winds of
change, as Industry 4.0 is being felt in major markets. The transformation
of business systems from barter to steam engine, then with the introduc-
tion of electricity and mass production, wage dependency and domination
of organisations started. Modern times are expecting remote-controlled
robotic systems that will decrease human intervention in doing business. It
is a certainty that Industry 4.0 will enhance the production capabilities of
organisations while improving supply chain systems. Smart factories that
will rise with the implementation of Industry 4.0 principles will create a new
era that will be discussed in terms of human–machine interaction. It is also
expected that production through smart factories would provide a different
kind of products and services that would most likely need different market-
ing paradigms (Gorecky, Schmitt, Loskyll, & Zühlke, 2014, Lee, Bagheri, &
Kao, 2015).
26 EDA AYLIN GENC AND METEHAN IGNECI

Augmented reality (AR) is another contemporary concept which has been

presented through popular culture and sci-fi movies, particularly after the
new millennia. Introduced itself as a new way of gaming, AR quickly became
a household discussion point and a business tool. Although studies about AR
Experimental Marketing (AREM) are scarce, in the short term it is expected
that AREM practices will be used heavily by some of the global brands as a
tool for enhancing customer experiences while providing long-term benefits
to corporations (Bulearca & Tamarjan, 2010).
Finally, Turkey needs to continue her marketing breakthrough while tak-
ing lessons from the previous phases that could not be followed simultane-
ously with global markets. Aforementioned statements regarding the scarcity
of historical studies on marketing are accurate and we believe that the future
success can only be achieved by understanding the unique characteristics that
are deeply rooted in this market climate and which enhance the competitive
advantage of the Turkish industry.

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CHAPTER 1.3
BUSINESS ETHICS, MARKETING
ETHICS, CONSUMER ETHICS,
SUSTAINABLE CONSUMPTION
AND CORPORATE SOCIAL
RESPONSIBILITY IN TURKEY

Hande Begüm Bumin Doyduk

ABSTRACT

Throughout history, the actions of human beings have been analysed based on
ethics. In every aspect of human life, ethics is an essential element, and busi-
ness life is no exception. Business ethics, and marketing ethics in particular,
has been a subject of interest in both the academic and business world. Apart
from doing what is perceived as correct, acting in a socially responsible and
sustainable manner becomes compulsory, as the changes in ecological and social
environment necessitate this. There have been warning signs from nature such
as environmental disasters and climate change, and it is no longer possible for
for firms or individuals to continue with previous behaviours. Acting as if the
world’s resources are limitless has caused damage to the environment. A new
way of thinking and behaving is needed. The awareness and involvement levels
about sustainability and social responsibility are not the same everywhere in

Marketing Management in Turkey, 29–47

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181004
29
30 HANDE BEGÜM BUMIN DOYDUK

the world. Culture has significant impact on perception of social issues such as
social responsibility and sustainability. Turkey, as a developing country with its
own cultural dynamics, differs from developed Western countries which makes
analysing consumer ethics, corporate social responsibility and sustainable con-
sumption in Turkey worthwhile.
In this chapter, concepts of business ethics, marketing ethics, consumer eth-
ics, sustainable consumption and corporate social responsibility are dis-
cussed with specific examples from Turkey.
Keywords: Business ethics; marketing ethics; corporate social
responsibility; consumer ethics; sustainable consumption; ethics

INTRODUCTION
What is right, what is wrong, how shall one behave and what would be the
consequences of these behaviours, have been and will be major questions
for humankind. Firms as legal entities also face the consequences of their
actions, thus the business world must also pay attention to ethics. Behaviour
which is seen as right and appreciated by people differs from one culture to
another. In this chapter, ethics in the business world, especially marketing
ethics and corporate social responsibility (CSR) in Turkey with its idiosyn-
cratic business environment, will be discussed.
Another subject area of this chapter is sustainable consumption. As of
2017, the world population is 7.5 billion, and by 2050, the world population
is projected to be 9.7 billion. In 2014, 54% of the world population was living
in urban areas, and by 2050, it is projected to be 66%. These changes cause
decreases in water and food reserves, ecosystem damage and climate changes,
which have become overt and necessitate immediate action. Expeditious pop-
ulation growth, economic growth and technological improvement in the 21st
century made it impossible for humankind to ignore the need to look at the
world from a different viewpoint and handle issues with a different approach
that is to say, in a more in a more responsible and sustainable way.

ETHICS
The word ‘ethics’ has its roots in Greek word ‘ethos’, meaning charac-
ter, habit, custom and ways of behaviour. In Turkish, the concept of
Business Ethics and Corporate Social Responsibility in Turkey 31

morality stems from the Arabic word ‘hulk’, which means character and
trait. Ethics indicate the most important rules and customs in a society.
Ethics is defined as

a system of moral principles, rules of conduct recognized in respect to a particular class

of human behavior, values relating to human conduct, the rightness and wrongness of
certain actions, and just or right standards of behavior between parties in a situation.
(Fullerton, Kerch, & Dodge, 1996, p. 806).

In short, ethics is the study of good and bad. On the other hand, busi-
ness ethics studies the goals of a business, activities to reach these goals, the
responsibilities and the behaviour of the employees, and afterwards define
those as good or bad, right or wrong (Bolat & Seymen, 2003). Business eth-
ics is applied ethics dealing with all ethical problems that might be faced in
business settings.
It can be said that literature of business ethics emerged in the 1920s (Bartels,
1967). Interest in the issues of business ethics has been increasing since then.

BUSINESS ETHICS IN TURKEY

Ethical business practices in Turkish culture date back to the pre-Ottoman
period. Starting in the 13th century, the ‘ahi’ community dominated socio-
economic life in Anatolia. The ‘ahi’ community is an artisan and crafts com-
munity aiming to provide expertise in the field of art and to stress the ethical
principles in that area (Ekinci, 2001). The idea of ‘ahilik’ motivated people to
work productively, be an expert in their own area and to behave ethically. In
the 16th century, the ‘ahilik’ community was replaced by a new system called
‘gedik’, but its impact diminished with time.
During the Ottoman period it is hard to conclude that the Empire sup-
ported entrepreneurship and capitalism. Business life was despised and eco-
nomic factors were neglected. Although being fair, honest and not engaging
in fraud was appreciated, there was no solid effort toward improving business
life or business ethics.
During the first years of the Republic of Turkey, till the 1950s, the principle
of etatism did not support the private sector or entrepreneurs. Consequently,
during this period business ethics was not much pondered. However, being
a hard worker and acting ethically was promoted during this period, a good
example would be the student oath starting with the line ‘I am Turk, honest
and hard-working’ (Arslan & Berkman, 2009).
32 HANDE BEGÜM BUMIN DOYDUK

Most of the structured work in the area of business ethics started after the
1990s. Nongovernmental organizations’ (NGOs) interest in the area of business
ethics also increased during this period. The first attempt in this area was made
in 1995 by the Turkish Industry and Business Association by adding principles
of business ethics into its regulations. Charitable foundations specialised in busi-
ness ethics were established after the 2000s. The first two were the Ethical Values
Centre Foundation Turkey and the Turkish Entrepreneurship and Business Ethics
Association. The first business ethics summit was held in 2000 with aims such as
discussing the current state of business ethics in Turkey and making ethical busi-
ness practices widespread (Fortune Turkey, 2016).
Apart from NGOs’ actions, government reforms and regulations are also
crucial. Turkey ranks 64 out of 175 (1 indicating the lowest level of corrup-
tion) on the corruption perceptions index, which measures the levels of per-
ceived corruption. According to Rawwas, Swaidan and Oyman (2005), there
is significant practice of ethical violations conducted by politicians and busi-
ness professionals in Turkey. Reforms and structural regulations during the
EU harmonisation process increased interest in the area of civil service ethics.
In 2005, the Board of Ethics for Civil Servants (KGEK) was established for
developing a framework and monitoring ethics-related issues. With KGEK’s
efforts, regulations related to ethics were gathered, and this made it possible
to evaluate civil servants on the basis of ethics (Yüksel, 2005).
When the ethical atmosphere in the private sector is analysed, bribery,
tax extortion, deceptive advertising and unsafe product production can be
seen (Ekin & Tezolmez, 1999; Ergeneli & Arıkan, 2002). It can be said that
unethical practices such as producing unsafe products, tax fraud and decep-
tive advertising are commonplace in Turkey. As the regulations in Western
countries mandate firms to operate with the goals of social responsibility and
ethical standards, global firms for the sake of standardisation apply the same
rules everywhere. As Turkish firms imitate these practices of global firms to
remain competitive, such practices have become market requirements. Ekin
and Tezölmez (1999) stated that 44% of the Turkish companies have a writ-
ten code of conduct. Another study analyzing ISO 500 firms reveals similar
results, stating that 54% of the respondents stated that there are written busi-
ness ethics codes in their organizations (Özgener & Kaya, 2003).

MARKETING ETHICS
Among all functional departments, marketing is the one that is most
closely associated with unethical practices. Marketing is the department
Business Ethics and Corporate Social Responsibility in Turkey 33

defining consumer needs and linking outside environment to the organi-

sation, thus it is more exposed to the environment. This is one of the main
reasons why it is the department most closely linked to ethical misconduct
in a firm.
The first marketing ethics studies appeared in the 1960s and the area
started to blossom in the 1990s. Marketing ethics is defined as the moral
principles in marketing decisions and institutions (Laczniak & Murphy,
1993). The American Marketing Association (AMA) stated that one of its
major roles is to ‘advance the thought, application and ethical practice of
marketing’. AMA provided three general ethical norms: ‘do no harm, fos-
ter trust in the marketing system, and embrace, communicate, practice the
fundamental ethical values of honesty, responsibility, fairness, respect,
openness and citizenship’.

The Ethical Decision-Making Models Used in Marketing Ethics

Scholars tried to explain ethical decision-making in marketing through

models. Most of these ethical decision models start with the perception
of an ethical dilemma, individuals start the ethical decision making pro-
cess after realising that there is an ethical dilemma. If an ethical problem
was not realised then the decision process does not start at all. Individual
factors such as attitudes, values and personal experiences, as well as exter-
nal factors such as cultural, organisational and industrial environment
affect both the perception of the existence of an ethical problem and the
approach towards the problem.
Culture as an external factor and as an influencer of an individual’s
attitudes and values has a significant effect on the ethical decision process.
Karakaş (2008) examined Turkish sales representatives’ ethical percep-
tions in the pharmaceutical sector and stated that sales representatives
have the tendency to perceive some unethical activities, such as giving
misleading information about the product, confidential information-
sharing, practising deceit in sales competitions, using the firm’s resources
for personal issues, as not unethical. Another study in Turkey suggests
that although all stakeholders – advertising agencies, clients, media agen-
cies and consumers – believe that unethical elements should not be used
in advertisements, unethical elements are still present in advertisements
(Yaman, 2009). These studies show that in Turkey the general problem of
unethical behaviour does not stem from the perception of ethical prob-
lems but how one acts after realising that a problem exists.
34 HANDE BEGÜM BUMIN DOYDUK

CONSUMER PROTECTION
In order to ensure ethical marketing practices and to protect customers, there
are certain government interventions along with the activities of NGOs.
Consumer protection means spending communal resources in the areas
which increase community welfare, health and education levels, and encour-
aging businesses to develop consumer-focused policies Organization (2001).
Consumer policy is mainly based on educating, informing and protecting
consumers (Özdoğan, 2007). 1982 Constitution Article 172 declares that the
state takes precautions protecting and informing consumers and supports
consumers’ self-protection initiatives. Owing to technological improvements,
consumer protection practices have become easier to apply and are more
widespread. Currently as the e-government systems allow, consumers can file
complaints via an online system: turkiye.gov.tr. NGOs, such as Consumer
Rights Association and Consumer Protection Association, aim to create
awareness among customers about their rights and what can be done against
unfair customer treatment practices.
For the purpose of customer protection, deceptive advertising should be
precluded. In 2015, the Board of Advertisement imposed penalties of 9.4
million TL on firms advertising contrary to legislation. (Tüketiciyi Aldatan
Reklamlara Ceza, 2016).

CONSUMER ETHICS
Consumers are not the victims of unethical behaviour in all cases, but in
some situations their acts cause harm to businesses (Ghosh, Fullerton &
Taylor, 1997, Wilkies, 1978). It is stated that in the process of consumption,
consumers show unethical behaviour in the following three situations: during
the purchase from the retailer, consumption and product disposal (Vitell &
Paolilo, 2003).
Consumer ethics is ‘the rightness as opposed to the wrongness of certain
actions on the part of the buyer or potential buyer in consumer situations’
(Dodge, Edwards, & Fullerton, 1996, p. 823). Muncy and Vitell (1992) defined
consumer ethics as moral principles and rules directing behaviour during the
purchase, use and disposal of goods/services. Nebenzahl et al (2001) stated
that consumer ethics is the reaction of consumers against firms’ and their
own unethical practices.
The evolution of consumer ethics stems from general ethics, specifically
from business ethics and organisational ethics (Arslan, 2005).
Business Ethics and Corporate Social Responsibility in Turkey 35

Loucks (1987) proposed that the market is based on mutual trust among
participants, although both buyers and sellers act in ways favouring their own
economic interests. Fullerton, Taylor and Ghosh (1997) mentioned that in
order to continue exchange, reciprocal trust is a precondition, and if one of
the parties violates ethical rules, this might prevent the exchange and end the
relationship.
Research examining consumer ethics can be analysed in six different
groups. The first type studies only a single item of unethical behaviour, such
as shoplifting. It is stated that retailers lose 8% of their annual sales because
of shoplifting (Van Kenhove et al, 2003). Cox and Moschis (1990) in their
study found that male consumers shoplift more than females, and the authors
also stated that the desire to possess a product, experiences and socioeco-
nomic factors are the causes of shoplifting in adolescents. Global retail crime
in 2014 costed USD 128.5 billion (Global Retail Theft Barometer, n.d.). The
situation is not so different in Turkey, A customer survey ethics study con-
ducted in Turkey suggests that buying counterfeit products is very common,
70% of printed publication and 70% of CDs and DVDs are counterfeit in
Turkey (Pekcan, 2010).
A second branch of research studies difference in consumer percep-
tions of acceptable consumer and business practices. Folkes and Kamins
(1999) proposed that consumers’ perceptions of the ethical behaviour of
firms is personal and subjective. They stated that consumers react more
strongly to the evaluation of unethical practices than to ethical practices.
Attitudes are affected more by vices than virtues (Reeder & Brewer, 1979).
Consumers’ ethical sensitivity affects the perception of ethical situations
or dilemmas.
Consumers reward or punish a firm based on their expectations and percep-
tion of the firm’s ethical behaviour. If the consumer cannot differentiate between
the competing firms or products by other features, the ethical behaviour of the
firm can create an opportunity for differentiation (Creyer & Ross, 1997). When
consumers perceive ethical problems in a firm, their intention towards product
purchase from that firm and general attitude towards the firm are affected nega-
tively (Alexander, 2002; Kurtuldu, 2009; Smith & Cooper-Martin, 1997). Also,
Vitell and Munchy (1992) stated that consumers behave more ethically towards
firms about whom they have formed a positive attitude. Consumers’ ethical eval-
uation and judgements about firms affect their attitudes towards the firms, and
this is very important for marketers. Consumers’ perceptions of unethical prac-
tices of businesses have a great effect in the marketplace (Pitts, Wong, & Whalen,
1991). As time grew on, consumers recognise firms that try to respond to ethical
and social effects in the marketplace (Gundlack & Murphy, 1993).
36 HANDE BEGÜM BUMIN DOYDUK

Consumers’ perceptions of firms’ ethical behaviour are important, but it

is also essential to study their beliefs about their own ethicality. Ethical shop-
ping initiatives and trade encourage consumers to take moral responsibility
for their buying behaviour (Brinkmann, 2004). It is stated that consumers use
double standards for rating the ethical practices of businesses and their own
activities. Consumers prevail with their rights more than accepting their corre-
sponding obligations (Davis, 1979; DePaulo, 1987). Varınlı (2000) conducted
a customer ethics study in Turkey with university students and stated that the
self-ethical evaluation of respondents was more flexible than the evaluation
of others. According to a study by Cowe and Williams (2000), while 30% of
consumers state that they care about ethical standards, this can be observed
only in 3% of consumers’ purchase behaviours. This is termed as ‘30:3 phe-
nomenon’. Other scholars also tried to explain the difference between atti-
tude towards ethics and purchase behaviour by naming the phenomenon as
‘ethical purchasing gap’ (Nicholls & Lee, 2006) and ‘attitude–behaviour gap’
(Kim, Forney, & Arnold, 1997). An exploratory study by Bray, Johns, and
Kilburn (2011) concluded that the factors hindering ethical consumption are
price sensitivity, personal experience, lack of information about the ethicality
of the firm, cynicism about the ethicality of the firm, quality considerations
and purchase inertia.
The third research area focuses on normative directions for consumers’
rights and responsibilities. The fourth area analyses the ways of managing
unethical consumer behaviour. The fifth area examines consumers’ attitudes
towards unethical consumer practices. Finally, the sixth and the last stream
of research aims to develop theoretical models.
In order to measure consumer ethics, Vitell and Munchy (1992) developed
a consumer ethics scale, which had four dimensions (Munchy & Vitell, 1992).
The first dimension, ‘actively benefitting from illegal activities’, represents sit-
uations where the consumer is actively participating in an unethical act and is
benefitting from it, while placing the other party at disadvantage. The second
dimension, ‘passively benefitting from illegal activities’, represents situations
in which the consumer does not act actively in an unethical manner but pas-
sively benefits from the other party’s mistake. The third dimension, ‘actively
benefitting from deceptive, but legal practices’, represents actions in which
the consumer actively engages in questionable but legal activities. The last
dimension, ‘no harm activities’, represents actions that consumers perceive
as not causing any harm to others. Similar dimensions were found in studies
conducted in Turkey (Altay & Turk, 2017; Varinli, 2000).
Being an ethical consumer necessitates consuming responsibly and sus-
tainably, which will be discussed in the next section.
Business Ethics and Corporate Social Responsibility in Turkey 37

SUSTAINABLE CONSUMPTION
The economic system starting from the age of industrialisation aims at unlimited
economic growth and prosperity. The dominant worldview of Western/northern
society, or so to say the dominant social paradigm, can be summarised as

the belief in unlimited abundance and progress, devotion to material growth, faith in the
power of technology, commitment to a laissez-faire economy, minimal government inter-
vention, and unlimited private property rights. (Prothero et al., 2011).

However, in order to retain the goal of continuous economic growth,

the resources have been used without considering the future or the environ-
ment. The consequences of these ecological harms made people rethink their
actions, and thus the concept of sustainability is emerged.
During the United Nations Conference on Environment and Development
in 1992, it was accepted that it was accepted that both economy and envi-
ronment can be improved simultaneously, and consumers should be directed
to responsible purchasing behaviours by educating them about purchasing
and consuming in an environmentally-friendly manner. Sustainable produc-
tion and consumption processes aim at providing economic growth by using
the planet’s resources in a sustainable way while searching for methods to
minimise environmental damage (Korkmaz & Sertoğlu, 2013). All individuals
have a responsibility to save the planet’s ecosystem.
Previous studies and policies about the environment focused on produc-
tion while the consumption side was neglected (Organization for Economic
Cooperation and Development (OECD), 2002). Sustainable development is
only feasible when it is supported by sustainable consumption and lifestyles.
Analysis of sustainable production should be complemented with sustain-
able consumption and lifestyles. In order to realise objectives of sustainable
development, household consumption is an important element that cannot
be ignored. The environment is affected by patterns of household consump-
tion and waste management (King, Burgess, Ijomah, & McMahon, 2006).
Every item purchased has an ethical and environmental impact.
Sustainable consumption considers the consumer’s social responsibility as
well as individual needs and wants in the decision-making process (Vermeir
& Verbeke, 2006). It is a form of consumption behaviour that has less nega-
tive environmental effect than other consumption behaviours (Paavola,
2001). Sustainable consumption can be summarized as consuming efficiently
produced goods. It is a form of consumption by “green” and “ethical”
consumers who are able to transform the market and have environmental
and social concerns during the purchase decision process.
38 HANDE BEGÜM BUMIN DOYDUK

Sustainable Consumption in Turkey

Since the establishment of the Republic of Turkey in 1923, there has been
rapid and sustained economic and institutional developments. Starting from
the early 1980s, as Turkey moved from state-centred import substitution poli-
cies to economic liberalisation, its society, economy and politics have gone
through discernible changes (Berna & Turunç, 2011). With higher incomes,
households have gained access to more consumer goods. Consuming more
and more and forming an identity through possessions became a general ten-
dency in the society. Along with continuous population increase, issues of
sustainable development and consumption have gained importance in Turkey
(Şener & Hazer, 2008).
In Turkey, sustainable development targets for 2030 are classified under 17
subject areas, sustainable consumption is one of them. The goals for the year
2030 in terms of consumption are reducing per capita food waste by 50% and
increasing the sustainability awareness level.
Consumers should be educated about the limited resources of the planet
and how to use these resources effectively and efficiently. Aksu and Gelibolu
(2015) have investigated the attitudes of university staff towards sustain-
able consumption. They have observed that consumers’ income levels have
significant effect on sustainable consumption, and if the income is high
then consumers show positive attitudes towards sustainable consumption.
Aksu and Gelibolu (2015) state that in order to disseminate sustainable con-
sumption behaviour, the academic environment should support the idea of
sustainability with solid scientific arguments, firms should put a variety of
programmes into practice which motivate sustainable consumption, politi-
cal decision-making bodies should make necessary legal arrangements, and
individuals should transform their consumption behaviours to become more
sustainable.
Above all, firms should also be aware of their responsibilities and act
accordingly. CSR has been a well-known and appreciated concept around the
world, and lately also in Turkey the level of awareness has increased.

CORPORATE SOCIAL RESPONSIBILITY

CSR has become a very popular research area for both private sector and
academic discussion. It is stated that CSR is in the core programme of 42%
of the top global MBAs (Christensen, Pierce, Hartman, Hoffman, & Carrier,
2007) and 64% of the largest multinational companies publish formal CSR
Business Ethics and Corporate Social Responsibility in Turkey 39

reports (Porter & Kramer, 2006). Recently, more and more companies have
been executing CSR campaigns. Companies communicate these campaigns
on both social and mass media, as they expect consumers to appreciate their
CSR campaigns and support them.

Responsibilities of Corporations

According to Carroll (1991), businesses have four main responsibilities:

economic, legal, ethical and philanthropic. Economic responsibilities are
being profitable and productive. Legal responsibilities require businesses
to operate in compliance with legal requirements. Ethical responsibilities
demand firms to accept norms defining appropriate behaviour. Lastly, phil-
anthropic responsibilities require businesses to involved in the process of
societal improvement. This is a step-by-step process, beginning with eco-
nomic responsibilities.
Bakan (2012) stated that corporations are self-interested, not interested
in the welfare of others, and the only reason for executing CSR campaigns
is for firms to present themselves as sincere and benevolent. According to
Levy (1999), firms embrace social causes as they assume that consumers will
reward socially responsible firms. Swanson (1995) stated that firms adopt
CSR for three main reasons. Firstly, businesses may be self-motivated to work
for the welfare of the society. Secondly, CSR is seen as a route to help busi-
nesses to reach their goals, like in order to differentiate themselves in highly
comparative markets. Lastly, firms may use CSR in order to comply with
stakeholders’ expectations.
As the consumer awareness of CSR activities increase, the firm reputa-
tion (Fombrun & Shanley, 1990), identity attractiveness (Marin & Ruiz, 2007)
and financial performance (Bay & Küskü, 2006; Frooman, 1997; Griffin &
Mahon, 1997; Key & Popkin, 1998; McGuire, Sundgren, & Schneeweis, 1988;
Pava & Krausz, 1996; Roman, Hayibor, & Agle, 1999; Stanwick & Stanwick,
1998; Waddock & Graves, 1997) improves . Consumers become more and
more aware of the ethical practices of corporations and CSR; also, con-
sumer activism has accelerated recently. Consumers today have more product
choices than ever before. The fact that consumers are wealthier, better edu-
cated and more brand conscious than before increases their power over firms.
Consumers believe that they have the power to change companies’ behaviours
(De Pelsmacker, Driesen, & Rayp, 2005). Snider, Hill, and Marin (2003) stated
that because of the increase in the number of firms conducting CSR activities
and intense communication about CSR campaigns, consumers’ expectations
40 HANDE BEGÜM BUMIN DOYDUK

of CSR has increased. According to a study by Becker-Olsen, Cudmore and

Hill (2006), 80% of the respondents believed that firms should support social
initiatives and 76% believed that firms would benefit from these. Studies dem-
onstrated that consumers have developed favourable attitudes towards ethical
products and socially responsible companies. When the level of price, service
and product quality are equal 47% of consumers stated that they will purchase
from firms which behave in accordance with ethical norms (Strodder, 1998).
In some cases, consumers are willing to pay a premium for ethical products
(Loureiro, McCluskey, & Mittelhammer, 2002; Trudel & Cotte, 2008). Simon
(1995) proposed that 85% of consumers would have a more positive attitude
towards firms that support a cause important for them and 14% would pay
more for products of such firms; 20% of consumers use ethical and social
effects as criteria for product evaluation (Curlo, 1999).
As it is shown by all research findings stated before, the socially responsible
behaviour of firms is appreciated by consumers around the world and the
same situation is also present in Turkey.

Corporate Social Responsibility Concept in Turkey

Philanthropy shapes the CSR concept. The word ‘philanthropy’ in Turkish is

‘hayırseverlik’, coming from the root ‘hayır’ in Arabic, which means goodness
and amenity. Till the 19th century in the Ottoman Empire, mainly two organ-
isations were influenced by philanthropy. One of them was the foundations
‘vakıf’ and the other was ‘ahilik’. The word ‘Ahi’ means brotherhood, gener-
ous and propitious. It was a professional organisation made up of merchants
and artisans (Ülgener, 2006). In the 1600s there were more than 1,100 ahi
organisations with more than 125,000 members, thus ahilik was widespread
and was very important (Cem, 1974). Apart from the economic aims of the
organisation, there was also the aim of mutual aid. Through ‘orta sandık’,
they were financing the benevolence. In both organisations the main theme
was philanthropy.
After the foundation of the Turkish Republic, with the law of Chamber
of Trade and Industry in 1924, the ‘ahi’ organisations in the same year
were converted into Chamber of Merchants and Artisans, also with
this law the foundations were centred on the General Management of
Foundations. These steps can be seen as an government intervention in the
area of social responsibility (Turan, 2002). After the 1970s, corporations
started to gain power in the Turkish economy, thus instead of govern-
ment controlling the organisational arena, corporations started to execute
Business Ethics and Corporate Social Responsibility in Turkey 41

philanthropic activities. Although the state moved out of the public arena
and tried to improve and increase the mutual dependency with private
sector, citizens still expect state intervention by saying ‘state should help’
(Çarkoğlu, 2006).
The majority of firms in Turkey are family-based, which is an obstacle for
the improvement of corporate governance and CSR concepts. Having few
stakeholders apart from family members inhibits the development of CSR
activities (Aycan, 2001; Yamak & Süer, 2005). Tutar and Aygen (2006) stated
that in small- and medium size enterprises, awareness of proactive ethics
and social responsibility have not yet reached the desired level. According
to another private sector research, the most successful social responsibility
projects belong to the big conglomerates: Koç Holding, Sabancı Holding,
Turkcell, Doğan Holding, Yıldız Holding-Ülker, Enka, Coca Cola Company,
Arçelik-Beko, Zorlu Holding and Abdi İbrahim (CSR, 2017). It can be con-
cluded that conglomerates lead CSR practices in Turkey.
Augerviere, Devinney, and Louviere (2006) in their study analysed the rela-
tive importance of social and ethical issues for people in different cultures.
Turkey was one of the six countries studied. Human rights, working condi-
tions, child labour, gender, racial and religious rights and living conditions
were the most important issues for Turkish people. On the other hand, the
relative importance of issues such as biodegradability, recyclable materials,
product disposability and animal rights were relatively very low for Turkish
people.
Another study conducted in Turkey by Tuncay (2006) supports these
results. According to the study, Turkish people mostly support education or
health-related social responsibility projects, more than 50% of the respond-
ents stated that they were willing to support education and health-related
projects, while only 4.7% were willing to support CSR projects related to
human rights improvements.
Not only the academic world but also the private sector is interested in
CSR research. For 12 years Capital Magazin and GFK Research Companies
have been conducting a study in which the most successful CSR campaigns
and firms are evaluated and ranked by the respondents. According to 2016
results, the most successful CSR projects (KSS Projeleri, 2016) in Turkey
were as follows:

1. No! to Domestic Violence by Hürriyet (to raise awareness on domestic

violence).
2. Technology for Women by Teknosa (free computer courses around Turkey
to increase technology literacy among women).
42 HANDE BEGÜM BUMIN DOYDUK

3. Dad Send Me to School by Dogan Holding (financial aids and creating

awareness about girls’ education).
4. Migros Kids Theatre.
5. Donations from 81 cities to 81 schools by P&G.

In Turkey, equal opportunity in education and health are not yet at the
desired level, thus people think they are the most important areas requiring
help from the corporate world. Apart from health and education, another
big problem in Turkey is the increasing domestic violence and violent and
sexist behaviour against women. Creating awareness about the subject in gen-
eral society and among victims is very important, thus CSR projects such as
‘No! to Domestic Violence’ has gained awareness and support in a very short
period of time. The CSR projects, especially designed for Turkish society,
and hitting the high spots of problems specific to Turkey, are supported and
internalised more than global CSR projects.
Although most of the CSR projects are conducted with the help of NGOs
in Turkey, they do not exert as much pressure as the ones in Western coun-
tries. Also, there is no law or regulation directly related to CSR in Turkey.
In 2003, SPK (Capital Markets Board) imposed an obligation on firms to
publish corporate governance compliance reports, which forced firms to put
more emphasis on the subject.

CONCLUSION
With the current dynamics of the world and the necessities of the market,
ethics and sustainability became key study areas for both academic and pro-
fessional world. As a developing country with specific cultural attributes,
Turkey has its own political, economic and demographic dynamics. Although
interest in social responsibility, ethics and sustainability is not at the same
level as in Western developed countries, there are significant improvements
in these areas. Generally, the global firms lead the way for the social respon-
sibility and sustainability projects. In order to keep up with the competition
and changing consumer expectations, Turkish firms also have started taking
steps on this front, for instance, more and more firms have started publishing
CSR reports. These reports aim to show progress in social responsibility and
sustainability issues; however, most of them are far from being precise pro-
gress reports. NGOs and consumer pressure groups are not as active as their
international counterparts, thus governmental intervention and more strict
regulations and enforcements are needed for this specific area.
Business Ethics and Corporate Social Responsibility in Turkey 43

Apart from NGOs and governmental intervention, consumers also can

exert substantial power over firms. As consumers demand more responsible
and sustainable behavior from firms, firms will act accordingly. Thus, it is very
important to create awareness among general public. Consumers, apart from
their power over corporations, have huge impact on society through their act
of consumption. Sustainable consumption and ethical consumer behaviour
are relatively new concepts in Turkey, however, they are expected to prosper
in the near future.

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 SECTION 2
TURKISH MARKETING INSIGHT
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CHAPTER 2.1
THE SHARING ECONOMY
IN TURKEY: A MARKETING
PERSPECTIVE

Elif Yelseli, Hüseyin Sami Karaca and

Özlem Hesapçı Karaca

ABSTRACT

The sharing economy is a collection of economic and social activities where

participants of the community share properties, resources, time and skills
across online platforms. In this chapter, we start by identifying all the stake-
holders and their characteristics within such an ecosystem. We then catego-
rise factors leading to success in the sharing economies where the existence of
these platforms has disrupted traditional businesses. To do so, demographic
information about the community participants, specifications of the business
models, enablers of the ecosystem, growth drivers and hindrance factors are
explored in detail. From there on, we examine whether such success factors
are applicable in the Turkish business environment where Internet retailing is
in its infant stages, trust among people is quite low and economic welfare is
lower than that of more developed economies. Finally, an assessment of the
sharing economy landscape in Turkey is provided at the end of the chapter.

Marketing Management in Turkey, 51–74

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181007
51
52 ELIF YELSELI ET AL.

To outline the future of the sharing economy in Turkey, success indica-

tors in the Turkish market are compared and contrasted with those of the
United States, the United Kingdom and Brazil. A quick analysis reveals
that despite its huge potential, Turkey still has not reached its full capacity
in Internet usage, online or mobile retailing. That said, notwithstanding the
low levels of trust among people, Turkey has a great potential of sharer
base, given the demographic structure of its citizens. Recommendations for
policy makers, incumbent firms, the sharing economy startups and market-
ers are provided in the chapter.
Keywords: The sharing economy; collaborative economy; digital
platforms

INTRODUCTION
The sharing economy, also called ‘trust economy’, ‘collaborative consump-
tion’ or ‘on-demand economy’, is a type of business that allows people to
share any underused asset, e.g. property, resources, time and skills, across
online platforms (Wosskow, 2014). More and more entrepreneurs are launch-
ing startups and generating cash flow every day with these peer-to-peer plat-
forms. For example, today Airbnb is worth more than traditional hotel chains
such as Hyatt. Major established brands are launching sharing platforms as
well. Ford, for instance, launched ‘GetAround’ where participants can rent
their Ford automobiles, and Walmart opened a platform called ‘Trade-in’ to
enable their customers to share their electronic devices.
Sharing as a concept is not a fundamentally new phenomenon. Before the
sharing economy, there were rental markets. The sharing economy was born
from the Internet, social media and mobile technology. It enables consum-
ers to get what they need, when they need it and where they want it. PwC
(2015b) estimates that the five main sectors of a sharing economy, i.e. peer-
to-peer financing, online staffing, peer-to-peer accommodation, car-sharing
and music/video streaming, were worth $15 billion in 2013, a number that is
expected to reach $335 billion by 2025. The main success factors behind a
sharing economy are that it is sustainable and provides benefits to its consum-
ers, providers and the society.
The sharing economy started with non-profit initiatives such as Wikipedia
and Couchsurfing.1 Today, the sharing economy has moved from a simple
exchange of files or free items to more personal, experience intensive services
The Sharing Economy in Turkey 53

such as crowdfunding, accommodation or car-sharing. These new sharing

economy-based startups have already altered the way customers think about
ownership, and they have the potential to disrupt almost any traditional
industry.
Sharing platforms can be classified into three types. The first one is redis-
tribution markets, in which underused assets are redistributed from where
they are not needed to where they are needed. eBay and Craigslist can be
given as examples to this kind of platform. Second type is product service sys-
tems such as car- or bike-sharing. The last one is collaborative lifestyles, e.g.
sharing time, skills, money, experiences, space etc. (World Economic Forum
Young Global Leaders Taskforce, 2013). The sharing economy can operate in
different market settings such as business-to-business, business-to-customer
and peer-to-peer.
The concept of the sharing economy has been researched not only by
academicians but also by consulting companies and governments. Articles
in the literature mainly focus on how the sharing economy has emerged;
why people participate in the sharing economy; what the implications for
industries and people are and how regulations should adapt to the new
business models. Many articles focus on a specific sharing economy plat-
form and its disruption of the industry such as Zervas, Proserpio and
Byers (2017) have done in their paper, ‘The Rise of the Sharing Economy:
Estimating the Impact of Airbnb on the Hotel Industry’, or done by
Berger, Chen and Frey (2017) in their paper ‘Drivers of Disruption?
Estimating the Uber Effect’. Hamari, Sjöklint and Ukkonen (2016) and
Schor and Fitzmaurice (2015) try to find the motivations of sharers and
focus on why people participate in the sharing economy and digital tech-
nologies as enablers. Several other researchers focus on the effects of the
sharing economy on communities. For example, Dillahunt and Malone
(2015) conclude that the sharing economy is helpful for ‘unemployed and
financially struggling’ people.
As one of the most important issues about the sharing economy, consumer
protection and regulations have also been the centre of the interest for many
articles. Ranchordas (2015) addresses the dilemma of governments about
whether to have a stiff regulation system to protect consumers or to pro-
tect the sharing economy to promote innovation. Cohen and Sundararajan
(2015) propose self-regulation, ‘reallocation of regulatory responsibility to
parties other than the government’, and not to impede innovation. A signifi-
cant increase in research and publications is expected in the coming years as
the sharing economy industry starts to mature.
54 ELIF YELSELI ET AL.

DEMOGRAPHICS OF SHARERS
In a sharing economy, there are three types of customers: non-shares, re-
sharers and neo-sharers (Vision Critical & Crowd Companies, 2014). Non-
sharers are the people who have not tried the sharing economy yet, but may
have some intention to participate in it. Re-sharers, on the other hand, buy
and sell secondhand goods online. Neo-sharers are defined as those people
who are using the emergent sharing platforms. In this chapter, ‘sharer’ refers
to ‘neo-sharers’.
In a sharing economy, consumers assume several roles simultaneously;
they can be funders, producers, sellers and distributors. A sharing economy
is widely adopted by people aged between 18 and 34 years as both consumers
and providers. People with income levels between $50,000 and $75,000 are
more likely to engage in the sharing economy. There is no gender gap between
sharers. (PwC, 2015a). In general, sharers can be characterised as ‘more likely
to be married, educated, home-owning and politically aware than their age
would lead us to expect’ (Vision Critical & Crowd Companies, 2014).

STAKEHOLDERS IN THE SHARING ECONOMY

The sharing economy affects its participants in different ways, such as provid-
ing them with extra income, improving trust in community or helping people
to access things that are not affordable to them otherwise. Stakeholders of a
sharing economy can be listed as providers, consumers, regulators, society, the
sharing economy companies and traditional businesses. In this section, ben-
efits and challenges for important parties in a sharing economy, i.e. prosumers
(providers and consumers), society as a whole and companies, are examined.

Benefits and challenges to prosumers in a sharing economy

The first and the most important benefit of a sharing economy is that it makes
assets affordable. Participants of a sharing economy have access to goods and
services which are usually unaffordable to them. Another important benefit
of a sharing economy is its convenience. Thanks to advances in technology,
such as mobile applications, GPS and big data analytics, people can access
sharing services in a matter of seconds. The sharing economy reduces costs
associated with transaction, search, bargaining and governance (Ernst &
Young, 2015). Technology helps these platforms to meet supply and demand
The Sharing Economy in Turkey 55

more efficiently than any other businesses, and this matching occurs in real
time. Efficient use of resources constitutes the core of a sharing economy.
The sharing economy provides flexibility and choice for people seeking
extra income. Providers of a sharing economy have full control over their
schedule. There are mainly four types of providers (Botsman, 2015). The first
type comprises people who are not able to work in regular jobs, such as stu-
dents, stay-at-home parents, retirees or people with disabilities, and are able
to work within a sharing economy platform outside regular hours. Flexibility
of the sharing economy enables this type of providers to join the labour force.
Such a movement in the society is quite beneficial in empowering women
and closing the gender gap in the workforce. The second type of providers
includes those people who are in search of a regular job but could not find it.
In most cases, the sharing economy can be the only source of income for this
type of users. Professionals constitute the third group of providers. This type
of providers makes a living by working in the sharing economy platforms.
The last group consists of people with full-time jobs but looking for opportu-
nities to make extra money with these platforms. Flexibility of working hours
within the sharing economy platforms enables better living for different types
of people by making their lives easier. Prosumers (producers and consumers)
who share their skills can also develop their professions by providing many
unique services and getting more experience than their peers.
The sharing economy offers a unique experience to its users. It creates a
community and trust between strangers. It is more fun and exciting than tradi-
tional businesses. People can socialise with locals by staying in a local resident’s
house or by going to dinner with them. It is the experience that motivates peo-
ple to join the sharing economy. People can improve their skills and monetise
their underused assets. The sharing economy reduces the cost of owning and
maintenance. In a research conducted by Vision Critical & Crowd Companies
(2014), following are the reasons why people participate in a sharing economy:

• Convenience (78%)
• Price (68%)
• Product/service quality (55%)
• Couldn’t find elsewhere (40%)
• Recommendation (33%)
• Sustainable lifestyle (25%)
• Curiosity (25%)
• Connect online (24%)
• Connect locally (23%)
• Access over ownership (15%)
56 ELIF YELSELI ET AL.

The sharing economy also brings many concerns along with benefits to its
users. Sharing companies see their providers as independent contractors and
not as employees. This creates a disadvantage for the providers as they are
deprived of any work-related benefits, insurance or employee rights. There
is not much regulation to protect either providers or customers. These issues
can be overcome with cooperation between policy makers and the sharing
economy platforms.

Benefits and challenges for society in a sharing economy

The most crucial benefit of a sharing economy is waste reduction. By provid-

ing efficient use of idle capacity and promoting the recycling and reuse of
items, time and other assets are utilised in a productive way. The lifecycles
of items get longer with utilisation via sharing platforms. Sharing releases
underutilised assets to be reused again, resulting in higher resource utilisa-
tion, thanks to better matching between supply and demand. For example, the
sharing economy companies serving in accommodation services, e.g. Airbnb,
help small hotels increase their occupancy. Ride-sharing services increase the
utilisation of cars which are idle for the most part of the day. The sharing
economy also enhances social interactions, creating a stronger community. It
increases transparency of companies and intensifies competition, resulting in
decreased prices and improved quality. Moreover, people who are in need of
additional income can earn extra money with the sharing economy platforms.
Social equity is also promoted through the sharing economy platforms.
There are several challenges that need to be overcome in order to utilise
the sharing economy to its full capacity. Among these challenges, taxation
takes the first place. There has been an ongoing debate on whether to collect
taxes from collaborative companies and providers. It should be noted that
over-taxation can very well destroy the affordability feature of the sharing
economy. Therefore, policy makers should work in collaboration with the
sharing economy platforms to find the best option for the society. The second
challenge is related to incumbent companies. As the products and services
on the sharing economy platforms are cheaper than incumbent companies’
offers, such companies may face difficulties in competing with these plat-
forms. Another issue about a sharing economy is associated with zoning and
licensing. Since these platforms are a pure digital business, it is hard to draw
their borders. Furthermore, peer-to-peer economies are heavily criticised due
to their potential to deteriorate labor standards. Even though there is a con-
cern about people leaving their secured jobs to shift to the sharing economy
The Sharing Economy in Turkey 57

platforms as independent contractors, as of yet there is no clear indication

showing the existence of such a case.

Benefits and challenges for companies in a sharing economy

The sharing economy creates opportunities for both startups and incumbent
companies. First of all, companies in a sharing economy do not have to carry
inventory. As another salient feature of the sharing economy platforms, the
entry barrier is quite low; there is no need for intensive initial investment.
The service quality of these companies is taken care of by their reputation
systems. Moreover, it is much easier to match supply and demand, which,
in turn, increases efficiency. By disaggregating space and time, the shar-
ing economy enables these parts to be amenable to pricing, matching and
exchange (Sundararajan, 2013). For instance, you can borrow someone’s car
for one hour, or work for someone else to do their shopping for fifteen min-
utes. Therefore, the sharing economy creates a new type of value, which is not
attainable by traditional business models. Thanks to its mobility, the sharing
economy can reach to a very wide customer base, which is not imaginable by
traditional retail companies.
There are some challenges that sharing companies need to tackle. First,
some customers might not be yet ready for this type of business. Second, in
some cultures ownership serves as an indicator of social status, which may
very well undermine the concept of sharing. Third, it is difficult to sustain
constant service quality on these platforms. Providers of services differ, so
do the experiences of customers. Since the reputation of the platform, which
enables trust, is a fundamental component of a sharing economy, even a
small incident has potential to hurt the company in case such an incident
goes public.

SECTORS AFFECTED BY THE SHARING ECONOMY

As a 2015 Wall Street Journal article succinctly puts is: ‘There is an Uber for
everything now’ (Botsman, 2015). In May 2014, Crowd Companies (2016)
(self-described as an innovation council for large companies to unlock col-
laborative economy: the sharing economy, the maker movement and crowd
business models) shared the famous collaborative economy Honeycomb 1.0.
In this framework, six main sectors were shown as the sharing economy sec-
tors: Money, goods, food, services, transportation and space. Only seven
58 ELIF YELSELI ET AL.

months after the first version, the second version of this honeycomb was pub-
lished in December 2014, which included six more sectors: learning, health
and wellness, logistics, corporate, utilities and municipal. The last version,
called Collaborative Economy Honeycomb 3.0, was made public in March
2016. This time the honeycomb was evolved into a 16-hex honeycomb with
four additional sectors. The final list of sectors along with some well-known
company examples are as follows:

1. Money
a. Crypto currencies: Bitcoin
b. Crowdfunding: Indiegogo, KickStarter
c. Moneylending: Kiva, Prosper
2. Goods
a. Bespoke goods: Etsy
b. Loaner products: Rent the Runway, Bag Borrow or Steal
c. Pre-owned Goods: eBay
3. Food
a. Shared food: EatWith, Feastly
b. Shared food preparation: KitchenSurfing
c. Food delivery: UberEats, GrubMarket
4. Services
a. Personal: TaskRabbit, AirTasker
b. Business: freelancer.com, Gigwalk
5. Mobility services
a. Support: JustPark, YourMechanic
b. Valet Services: ValetAnywhere, Caarbon
c. Rides as a service: Uber, BlaBlaCar
6. Space
a. Work space: ShareDesk, WeWork
b. Personal Space: Couchsurfing, Airbnb
7. Learning
a. Instructor-Led: Thinkful, Coursera
b. Peer-to-peer: SkillShare, Instructables
c. Book sharing: SideWalk, Zookal
8. Health
a. Services: Heal, DoctorOnDemand
b. Peer-to-peer: HelpAround, CrowdMed
9. Logistics
a. Shipping: Shipster, Roadie
b. Local delivery: UberRush, Instacart
c. Storage: Makespace, StashBee
The Sharing Economy in Turkey 59

10. Corporations and organisations

a. Supply chain: Cargomatic, LocalMotion
b. Employee services: SliceRides, Twogo
c. Platforms: Marketplacer, NearMe, CrowdTap
11. Utilities
a. Energy: Mosaic, Vandebron
b. Telecommunications: OpenGarden, Fon
12. Municipal
a. Platforms: YardClub, SeeClickFix
b. City sponsored bikes: Bicing, Velib’
13. Worker support
a. Renter Services: Guesty, HostTonight
b. Insurance: Friendsurance, Guevara
c. Resources: Freelancers Union, SherpaShare
14. Wellness and beauty
a. Wellness: Kindly, CoachUp
b. Beauty: beGlammed, GlamSquad
15. Analytics and reputation
a. Driver services: What’s the fare, Ridescout
b. Identity and reputation: Rated, TrustCloud
c. Renter services: BeyondPricing, Smart Host
16. Vehicle-sharing
a. Loaner vehicles: GetAround, ZipCar
b. Loaner boats: BoatBound, Sailo

BUSINESS MODELS IN THE SHARING ECONOMY

There are different business models in the sharing economy such as charging
service fee, freemium, tiered subscription plans, on-sale, white label, flat mem-
bership or membership plus usage (Botsman, 2015). Companies can take a
service fee for successfully matching buyers and sellers, or charge custom-
ers only when they use the service. In freemium pricing strategy, products
are offered free of charge, but a premium is charged for proprietary features.
Tiered subscription plans enable users to choose from gradually increasing
price points to get the products that best match their needs. In a white label
business model, company sells a base platform that other companies can cus-
tomise and make use of. In flat membership, or membership plus usage mod-
els, customers pay for membership only or incur additional charges for usage.
Dynamic pricing model is another model that can be applied in the sharing
economy platforms. The sharing economy’s success depends on matching
60 ELIF YELSELI ET AL.

supply and demand. Dynamic pricing’s main goal is to maximise supply while
ensuring service providers’ availability to meet consumer demands appro-
priately. Based on the supply–demand ratio at a specific location–time, the
model works by altering prices until the point where the supply matches the
demand (Ernst & Young, 2015).

ENABLERS AND DRIVERS OF GROWTH IN

THE SHARING ECONOMY
There are many enablers and drivers behind the emergence of the sharing
economy. While enablers assure the existence of the sharing economy, drivers
are instrumental in its growth.
Enablers of a sharing economy can be categorised in five main groups
(Botsman and Rogers, 2010, 2011). The first and the most important enabler
of a sharing economy is technological innovation. The sharing economy was
not in existence 10 years ago. Mobile applications, cloud computing, Internet
of things, GPS, online payment systems, big data analytics and social media
enabled the rise of the sharing economy. Technological innovations bring
along another enabler of a sharing economy: trust. For the sharing economy
to continue its existence, trust plays an essential role. Trust in strangers, trust
in e-commerce (online payments) and trust in regulatory authorities need to
be strong. Thanks to advances in technology, online payments can be safer
than other payment options. Another essential factor that gave rise to the
sharing economy is idling capacity. The previous hyper-consumption behav-
iour resulted in excessive burden of possessions. More and more people now
want to move away from consumerism to smart consumption, that is, con-
suming less, consuming the things they truly need, recycling, repurposing,
consumption of more durable/high-quality goods and buying from local
producers (Havas Worldwide, 2015). For the sharing economy to exist, there
needs to be a critical mass of both providers and users. If a company cannot
serve a customer the things s/he demanded when s/he needs, there is no point
of naming this company as an ‘on-demand economy’. Therefore, the shar-
ing economy companies need to make sure that there is adequate supply for
the current demand on the platform. The last factor, which puts all others
together, is belief in commons. People need to feel they are contributing to
the community and creating a better world. The sharing economy compa-
nies have to offer a value proposition accordingly, such as Airbnb’s ‘Belong
Anywhere’ motto.
The Sharing Economy in Turkey 61

Drivers of a sharing economy can be divided into five groups. The first
driver that gives rise to growth of a sharing economy is the value shift of
customers. After years of hyper-consumption, people started to perceive own-
ership as a burden. They view the sharing economy as a way to express them-
selves. The customisation opportunity appeals to these users. Sharers are the
people who care about community. They think that participating in a sharing
economy contributes to building a stronger community. The excitement of
meeting new people, being at the forefront, and feeling that they are help-
ing other individuals, make more and more people participate in the sharing
economy. Trying something new such as participating in a sharing economy
platform before everyone else is another appealing factor. People are paying
for the experience they will be having in the sharing economy. Another factor
behind the growth of a sharing economy is economic realities. People have
started to care more about quality/price ratio, which in turn motivated them
to share. It should be noted that most participants of the sharing economy
platforms consist of those people who have seen the economic crises of 2001
and 2009. Rising unemployment is another economic factor. Taken together,
all these economic factors have changed the way people look at consumption,
and led them to realise the scarcity of resources. The remaining three drivers
of a sharing economy are technological innovations (which resulted in safer
online payment and reputation systems, and convenience usage), rapid growth
of sharers due to their demographics and environmental pressures that make
people to consume in a smarter way (Botsman, 2015).

SUCCESS FACTORS IN THE SHARING ECONOMY

There are two types of success factors in a sharing economy. The first is
company-independent factors. Participants of a sharing economy need to be
ready and have the means and ability to access these platforms. The second
set of factors are company-dependent. These are the essential factors that
characterise successful sharing-economy companies.
The first type of factors includes the available technology in the coun-
try or region, and the existence of a sharing mindset among participants.
For a sharing company to grow in a region, people have to have access to
mobile applications over their mobile devices with the help of the Internet.
The number of people who have access to the Internet and the possession of
mobile devices can be the indicators of technological sufficiency. It should be
noted that having access to these platforms is not sufficient to participate in
them. To participate in a sharing economy, people need to trust the platform.
62 ELIF YELSELI ET AL.

The size of Internet retailing in a region and its share in retailing can be the
indicators of trust in online retailing. In addition to these observable aspects,
there are other unmeasurable factors that are necessary for achieving success
in a sharing economy, such as belief in commons, idling capacity and being
environmentally concerned.
Second type of factors are the factors that companies need to possess in
order to exist in a sharing economy. The sharing economy companies should
be able to offer all the benefits that cause people to participate in the sharing
economy platforms in the first place, e.g. better prices, convenient use, focus
on experience, brand recognition, high-quality service from providers, local
flavour, customisation, dynamic pricing, reputation system and transparency.

APPLICABILITY OF SUCCESS FACTORS IN TURKEY

In this section, success factors for Turkey are the discussed in comparison to
three big markets of the sharing economy: The United States, The United
Kingdom and Brazil.
To understand the potential customer base, demographics of sharers are
compared in Table 1. It can be seen from the table that Turkey has a large
potential customer base. Moreover, when we look at the growth numbers,
Turkey has a higher annual population growth rate than the other three
countries. Another characteristic of sharers is their income levels. Among
the four countries, Turkey has a lower GDP per capita compared with the

Table 1.  Comparison of Demographics, Economy and Technology

Adoption.
Turkey Brazil UK USA

Population (2016) (’000) 79.512 207.653 65.637 323.128

Population annual growth rate (%) (2016) 1.6 0.8 0.8 0.7
GDP per capita (US$) (2016) 10.787 8.649 39.899 57.466
GDP growth rate (%) (2016) 2.9 −3.6 1.8 1.6
Estimated GDP growth rate % (2019) 4.1 2.1 1.5 1.4
Mobile cellular subscription per 100 97 119 122 127
persons (2016)
Individuals using Internet (% of 58 60 95 76
population) (2016)

Source: Adapted from World Bank Data. Retrieved from http://data.worldbank.org/data-

catalog/world-development-indicators
The Sharing Economy in Turkey 63

United Kingdom and the United States, but it is still a promising country
with increasing GDP growth estimation figures.
A comparison of technological capabilities is also given in Table 1. It will not
be wrong to say that Turkey is still in the early stages of mobile and Internet
adoption. Both mobile cellular subscription and Internet usage numbers show
that the country is behind the United Kingdom, the United States and Brazil.
Note, however, that Organization for Economic Cooperation and Development
(OECD) lists Turkey among the fastest growing countries in mobile broadband
penetration in the second half of 2016 with growth rates ranging between 22%
and 12%.2 Given the growth rates of population, GDP and Internet penetration,
we can conclude that Turkey has the potential to become a good market for the
sharing economy platforms, but as of yet it has not reached its full capacity.
Trust in others and attitudes towards the environment can be found in
Table 2. These values are taken from the World Values Survey (2010–2014).
The data shows that people in Turkey have less trust in each other than people
living in the United States. Compared with Brazil, on the other hand, trust in
others seems to be higher in Turkey than it is in Brazil. As noted earlier, trust
plays an important role in the existence of the sharing economy. Therefore,

Table 2.  Comparison of Trust and Values.

Turkey Brazil Netherlands USA

Most people can be trusted 12% 7% 30% (UK) 38%

Looking after the environment is important to 88% 65% 59% 65%
this person; to care for nature and save life
resources (very much like me, like me and
somewhat like me)
Protecting environment vs. economic growth
  Protecting the environment should be given 48% 60% 41% 37%
priority, even if it causes slower economic
growth and some loss of jobs
  Economic growth and creating jobs should be a 44% 30% 50% 60%
top priority, even if the environment suffers to
some extent
How much you trust: People you meet for the first
time
  Trust completely 3% 1% 0% 1%
  Trust somewhat 19% 17% 22% 34%
  Do not trust very much 47% 25% 57% 48%
  Do not trust at all 31% 56% 12% 16%

Source: Adapted from World Values Survey (2010–2014). Retrieved from http://www.world
valuessurvey.org/WVSDocumentationWV6.jsp
64 ELIF YELSELI ET AL.

the lack of trust in the Turkish market creates an important issue that sharing
companies need to overcome in Turkey. On a more positive note, it should be
highlighted that the Turkish people are more environmentally conscious than
their counterparts in the other three countries.

THE SHARING ECONOMY IN TURKEY

Turkey – General Outlook

Turkey, located at the intersection of Europe and Asia, is a developing coun-

try that has the 18th biggest economy in the world. Turkey experienced high
growth rates in GDP except during the period of 2001 and 2009 economic
crises. The growth mainly happens from high consumption and rise in the
construction sector. However, the estimated GDP growth rate has lowered
because of the recent crises in the country.
Turkey’s neighbours Syria, Iraq and other countries that are in the middle
of civil crises make Turkey the first nation for migrations from these coun-
tries. According to research conducted by Hacettepe University Research
Centre for Immigration and Politics (2014), Turkey has 3.6 million refugees,
3.2 million of which are from Syria. As a result of all these unfortunate devel-
opments, the currency of Turkey, Turkish Lira, has depreciated substantially
in recent years.
Looking at the business environment in Turkey, economic decline can also
be seen in some areas. Turkey’s ranking in ‘Ease of Doing Business’ fell from
51st to 63rd, although it is still better than its 73rd spot in 2011 (World Bank,
2015). These figures indicate that the environment for starting a new business
in the country is getting more difficult.

Turkey – Consumers and Online Retailing

Turkey has one of the youngest populations in Europe, a trend likely to

continue in the near future. This creates a very dynamic consumer base for
businesses in Turkey. Furthermore, the young population is quite open to
technological developments. According to Turkish Statistical Institute’s
(TÜİK) 2016 report, 61.2 % of people aged between 16 and 74 are using the
Internet and almost eight out of 10 households have access to the Internet.3
The Internet retailing is also growing its user base. People have mostly
shopped online for clothing and sports equipment (60%); tickets for travel,
The Sharing Economy in Turkey 65

car-renting etc. (29.7%); household goods (25.8%); electronic devices (21%);

and food and daily requirements (19.8%) from April 2015 to March 2016.

The Sharing Economy in Turkey

In July 2015, ING Bank conducted a survey involving 15 countries, 13 of

which are European. According to the results of this survey, Turkey has the
highest ranking when it comes to familiarity with the concept of and par-
ticipation in the sharing economy; 47% of respondents in Turkey, the highest
ratio among other surveyed countries, have stated that they would increase
their participation level in the sharing economy within the following 12
months. The survey also revealed that Turkish consumers are participating
in the sharing economy because ‘it saves money’ (67%), it is ‘an easy way
to make extra money’ (67%), ‘it helps build communities’ (65%) and ‘it is
good for environment’ (64%) (ING Bank & Ipsos, 2015). It is encouraging to
observe that Turkey has more potential to achieve success with the sharing
economy than the United Kingdom, which is among the surveyed countries
and known for its several successful sharing economy platforms.
Using a categorisation scheme similar to that of the Crowd Companies col-
laborative economy honeycomb, Turkish sharing companies can be categorised
into 16 groups. As can be seen from the below list, even though many sectors have
been tapped by Turkish entrepreneurs, there are still several sectors waiting to be
claimed. These sharing economy companies are either founded as startups or are
local branches of global initiatives. For example, Koc Holding, one of the largest
industrial conglomerates in Turkey, became the first licensee of Zipcar, whereas
Armut.com is founded by a Turkish entrepreneur.

1. Money
a. Crypto currencies: Bitcoin
b. Crowdfunding: FonlaBeni, CrowdFon, AriKovani
c. Moneylending: -
2. Goods
a. Bespoke goods: EmekSensin
b. Loaner products: DavetCok, ElbisemYok, YineMiDugun, Dolap.com
c. Pre-owned goods: Sahibinden, LetGo
3. Food
a. Shared food: KomşuYemegi, Mamame
b. Shared food preparation:
c. Food delivery: YemekSepeti, MealBox
66 ELIF YELSELI ET AL.

4.    Services
a. Personal: Armut
b. Business: tr.freelancer.com, BiOnluk
5.    Mobility services
a. Support: -
b. Valet Services: -
c. Rides as a service: Uber, BlaBlaCar, BiTaksi
6.    Space
a. Work space: SehriOfis
b. Personal Space: Couchsurfing, Airbnb
7.    Learning
a. Instructor-led: OzelDers.com, OgretmenBurada.com
b. Peer-to-peer: Inekle.com
c. Book sharing: Kipu.club
8.    Health
a. Services: Heal, -
b. Peer-to-peer: -
9.    Logistics
a. Shipping: -
b. Local delivery: Bukoli
c. Storage: -
10. Corporations and organisations
a. Supply chain: -
b. Employee services: -
c. Platforms: -
11. Utilities
a. Energy: -
b. Telecommunications: -
12. Municipal
a. Platforms: -
b. City-sponsored bikes: Local sharing services
13. Worker support
a. Renter services: -
b. Insurance: -
c. Resources: -
14. Wellness and beauty
a. Wellness: Personal trainers can be found with Armut.com
b. Beauty: -
15. Analytics and reputation
a. Driver services: -
The Sharing Economy in Turkey 67

b. Identity and reputation: -

c. Renter services: -
16. Vehicle-sharing
a. Loaner vehicles: ZipCar
b. Loaner boats

BiTaksi, an online application that brings taxi drivers and users together,
was founded with the help of location-sharing technologies. The company
currently operates in two cities, Istanbul and Ankara. Trust and quality has
the highest impact on the business model of BiTaksi. Therefore, a particular
importance is placed upon customer reviews about BiTaksi drivers. A driver
gets a warning for the first complaint; if the same driver receives an additional
complaint, he gets a suspension, and eventually will be ousted from the sys-
tem. Taxi drivers can also make extra money with BiTaksi. As the supply in
the taxi system of Turkey is limited by the number of licence plates assigned
by the government, the existence of BiTaksi is instrumental in increasing the
overall efficiency within the transportation system. An additional benefit of
the company is that it is closing the gender gap within the customer base. On
average, only 30% of traditional taxi users are women, with the emergence
of BiTaksi this ratio has risen to 50%. BiTaksi customers tend to be aged
between 18 to 35 years. BiTaksi offers their customers the option to make
payments with methods other than cash, which increases the flexibility of
customers, and hence enlarges the market. Drivers are the biggest asset that
BiTaksi has built; therefore BiTaksi has built a community for taxi drivers
and conduct activities within that community regularly.
SehriOfis, a workplace-sharing platform, was founded in 2015 with the ‘All
Offices in the City Are Yours’ slogan. The first users were mostly freelancers
and aged older than 30 years. Then the company transformed into venue-
sharing platform with new offerings such as cinema halls, karaoke rooms and
playstation rooms. Such a transformation has changed SehriOfis’s customer
demographics. More and more children have started to use their activity
rooms. Among the challenges faced by the company is the low level of trust
among people due to the unrest in the country, low commissions the com-
pany receives and Turkish investors’ unwillingness to fund a sharing economy
startup. The company strives for continuously listening to the providers and
users of the platform and being flexible, as well as doing anything to ease
prosumers’ concerns for gaining their trust.
Apart from the native digital-sharing platforms, some well-established
online or offline retailers are also in the process of creating up the sharing
economy platforms. For example, Ebebek, a retailer of ‘the needs of a mother
68 ELIF YELSELI ET AL.

and a baby from pre-birth to 4 years of age’, is planning to start a sharing plat-
form for their customers. The company has seen a potential opportunity in sec-
ondhand baby products, since these products are only used for a short period.
Trust, price, convenience and brand awareness are among the key factors
considered by the users of the sharing economy platforms. The high level of
prices due to scarce resources as well as increased population are the main
drivers for sharing in Turkey. Even though owning is still seen as a symbol of
wealth and high social status among most Turkish people, it is expected that
Turkey will experience substantial growth in the next 10 years, and that there
is no point for the incumbent firms to resist the sharing economy movement.
This movement will eventually change the way companies do business; there-
fore, investing in this type of economy will bring sustainable gains to these
companies.

RECOMMENDATIONS
Recommendations for Policy Makers

• Allow innovative forms of technology to grow:

The sharing economy is a sustainable business model and has the potential
to benefit many people and the society as a whole. The sharing economy
can make business processes more efficient and more beneficial through
the use technologies and platforms. The World Bank (2016) report on the
sharing economy states the following:

In developed countries, the shift to platform services-based employment could be seen as

a shift to more informal types of working arrangements, more ‘informal’ ways to generate
income, whereas in developing countries it could be seen as a way to formalize services
that already existed informally while also increasing the opportunities and scope for inno-
vation and creation of new services.

• Only take regulatory steps for public safety goals:

Without regulating the sharing economy entirely, policy makers can only
take precautions to protect the users of a sharing economy. Some sugges-
tions can be listed as follows:

• Create a safe environment for all users of platforms (identity verification,

dispute resolution etc.).
• Guarantee adequate transparency.
• Guarantee data protection.
The Sharing Economy in Turkey 69

• Self-regulation may work better for the sharing economy:

Cohen and Sundararajan (2015) argue that the sharing economy companies
should be seen as partners with regulatory parties. They state that ‘self-regu-
lation is not the same as deregulation or no regulation. Rather, it is the real-
location of regulatory responsibility to parties other than the government’.

Recommendations for Incumbent Firms

• Understand sharing models and spot the disruption:

Incumbent companies should have a deep understanding of the different types
of sharing economy platforms. For example, they need to be able to assess
whether their business will be disrupted by a platform that offers access to peer-
to-peer markets.
• Take action:
Doing nothing is the worst option to adopt. Sooner or later every industry
has a potential to be disrupted. Acting quickly can bring many benefits to
incumbent companies. Therefore, after identifying the disruption point in
the sector, companies need to take action to protect or change themselves.
The list of potential actions can be summarised as follows (PwC, 2015b).

i.  Protect your company by differentiating your current business

Companies that want to compete with the sharing economy platforms
need to be aware of the sharing economy’s promises. Incumbent com-
panies can take advantage of their brand recognition. They can offer
other experiences to their users. The crucial point is that they need to
find a competitive edge and focus on that dimension whether it be the
brand or the price.
ii.    Test new sharing ventures by partnerships or investments
Companies can invest in the sharing economy startups or build ven-
tures with them. There are many examples of this kind of action in
Turkey, such as General Motors’ acquisition of Lyft or Koç Group’s
venture with Zipcar.
iii. Change your business into a sharing economy platform
The last alternative can be turning the business into a sharing platform.
It requires heavy investment in product development.
• Revise your business model:
If the company is selling something in which ownership is not the only way to
deliver, then it needs to reassess its value proposition. Rather than selling goods
or services, company can offer experiences.
70 ELIF YELSELI ET AL.

• Conduct a ‘sharing audit’ of your company’s tangible and intangible assets:

Everything that is underutilised within the company can be shared, whether
it is the office space or the intellectual property of the company.
• Work with policy makers:
Working with policy makers can ease the functioning of companies. There
are no regulations for the sharing economy platforms in many countries.
Attitudes of companies and communication between these companies and
policy makers will shape the regulations. Therefore, it is a wise decision to
go along with policy makers (PwC, 2015b).

Recommendations for the Sharing Economy Startups

• Choose the right market:

To be successful in the sharing economy, startups should choose the right mar-
ket. First, there should be a high idling capacity, such as cars being idle for most
of the time. Another requirement for success is that the value of the product
or service to be shared should be high, such as accommodation. Finally, assets
that are expensive to maintain are good candidates for a sharing economy.
• Choose the right business model:
To be a successful sharing economy platform, the right business model
should be chosen. The nature of the industry and consumers in the region
will determine what is wrong and right.
• Facilitate matching and provide logistics and payment support:
Another success factor of a sharing economy is its convenience. The sharing
economy startups should take advantage of this factor by marketing their ease
in matching supply and demand in real time. They also should emphasise that
people get whatever they want, whenever they want and wherever they want.
Another convenience of a sharing economy is its flexibility with payment
options. The online payment option provides convenience and trust to users.
• Generate trust:
For a sharing economy platform to succeed in Turkey, the first barrier is the
low trust of people for others. To generate trust between users and provid-
ers, companies can take the following precautions.

• Authenticate the identity of service provider.

• Perform background checks.
• Check training and skills of their providers.
• Be open and transparent to its users.
• Solidify reputation management.
The Sharing Economy in Turkey 71

• Build communities around your platform by offering essentials of the sharing

economy:
When people feel that they are contributing to the community, they are
more attached to the sharing economy platforms. There are some essential
components of a sharing economy that create high participation within
the platform. These can be listed as better prices, convenient use, focus on
experience, brand recognition, high-quality service from providers, local
flavour, customisation, solid reputation system and transparency of com-
panies. To survive in today’s competitive business environment, the sharing
economy companies need to make sure that most of these essentials are
included in their value proposition to customers.
• Use tricks to build critical mass:
The sharing economy companies should utilise all ways to build a critical
mass of users and providers. For example, Airbnb builds ‘online commu-
nities created and organised around a specific topic or interest’. Another
example can be Etsy. The company positions itself as ‘Etsy is more than
a marketplace: we’re a community of artists, creators, collectors, thinkers
and doers’. The New sharing economy startups should thrive for creating a
similar kind of community by promising its participants to become a part
of a bigger movement.
• Be a step ahead of regulators:
There is a general lack of regulation about the sharing economy practices. The
sharing economy companies should not wait until the regulations are set by
policy makers. They should try to negotiate with the government. Companies
have to take responsibility and do the due diligence and come up with the best
legal solution for consumers, providers and the government. They should pro-
actively propose their solution to the government and provide evidence on
how they can contribute to the society: providing extra income, empowering
women, improving social equity and raising trust among people.

Recommendations for Marketers

• Listen to your customers – learn the drivers:

A general shift in the mindset of customers gave rise to the sharing econ-
omy. People do not want to own bulky items, they know how much to get
in return for their money, they want to be part of a society and they want
unique and personalised experiences. Therefore, marketers should know
the drivers that motivate people to share. By taking guidance from these
drivers, marketers should study what their customers value the most. It is
72 ELIF YELSELI ET AL.

essential to find the right insight that motivates the customers. The drivers
of a sharing economy would be a good starting point in this quest.
• Branded experiences:
People join the sharing economy platforms because of the experiences they
will likely to experience. Marketers should emphasise the linkage between their
brand and all the emotions users will experience during the use of their ser-
vices. When a user logs in to the Airbnb website, the first thing s/he will see is
‘Book unique homes and experience a city like a local’. This slogan underlines
the unique experiences that the user will encounter when using the Airbnb
services. Offering customers experiences that cannot be found anywhere else is
a sure way to gain traction within the sharing economy ecosystem.
• Emphasise the benefits to the society:
Building a community around users and providers is crucial. Making both
users and providers feel that they are part of a movement that cares about
the environment and the society is important.
• Focus on trust and find ways to increase it:
It is clear that the currency of the new economy is trust. Trust is an essen-
tial success factor in the sharing economy and it is hard to gain trust in
countries where the overall trust levels are quite low. TrustCloud was
founded to solve the trust issues in the sharing economy platforms. The
company measures virtuous online behaviours and transactions to build
a TrustScore, which then can be used by the sharing economy companies
to check trustworthiness of their users.4 Marketers should prove to the
participants of the platform that they indeed value safety. Doing frequent
background checks on providers and users is one viable option.
• Value customer feedback and encourage customers to recommend:
Online feedback is crucial for digital companies such as the ones in the
sharing economy. The first thing that a potential user of the platform do
is to check other users’ reviews. Fiddling with reviews, such as blocking
negative reviews will undermine the credibility of the platform. Instead,
marketers should use this opportunity as an advantage to increase their
service quality, and should continuously ask for online user reviews.
• Learn from the sharing economy:
Marketers in various industries can benefit from the sharing economy.
Marketers can use the insights from the sharing economy as a learning
board for their practices and turn the overall marketing process into a
collaborative one. The sharing economy started to rise for a reason, and
marketers can observe changes in consumers’ behaviours that give rise
to collaborative consumption. Such an observation will generate valu-
able information about consumers that can be later used for developing
The Sharing Economy in Turkey 73

sound marketing strategies. For example, the knowledge about consumers’

increased importance given to trust and transparency can be utilised by
marketers to build better touch points with their customers.

NOTES

1. http://journalistsresource.org/studies/economics/business/airbnb-lyft-uber-bike-
share-sharing-economy-research-roundup
2. http://www.oecd.org/sti/broadband/broadband-statistics-update.htm
3. http://www.tuik.gov.tr/PreHaberBultenleri.do?id=21779
4. https://www.crunchbase.com/organization/trustcloud#/entity

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CHAPTER 2.2
ANALYSIS OF THE TURKISH
MARKET RESEARCH INDUSTRY:
THE CHANGING ROLE OF THE
RESEARCHER

Özgecan Karanci

ABSTRACT

Market research and insight generation is the art of unifying relevant

pieces of information when formulating the solution to a puzzle. The pre-
sent chapter contributes to the market research industry and the literature
on research methods by providing a detailed snapshot of the current state
of the industry in Turkey, as an emerging market, together with the future
outlook. The comprehensive review in convergence with expert precepts elu-
cidates the transformation of the industry. In the last decade, the world has
witnessed a digital revolution that has affected the way in which research is
conducted, and the identity of the storyteller. The consumer is the principal
actor, and researchers assume the roles of co-creators and curators who
are responsible for combining different forms of data. The new roles have
changed the perception of the term market research and have generated
new labels to denote business in the digital era. From the study, conclusions

Marketing Management in Turkey, 75–101

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181008
75
76 ÖZGECAN KARANCI

can also be drawn regarding the impact of technology and new methods
upon research designs. New technologies are inspirational; they raise the
industry to a higher level and allow researchers spend their time, energy
and resources on the interpretation of data rather than on the gathering
process. Consequently, the role of the researcher is to understand people,
and hence the eternal principles of marketing research remain valid even in
this new era. Professionals are expected to be courageous in their decisions
and to be agile leaders who will be active participants in the transformation
process of the discipline.
Keywords: Market research; consumer insight; analytics; new
generation research; co-creation

INTRODUCTION
Defining the modern consumer can be complex not only because the identity
of the consumer is multidimensional but also because involving consumers to
facilitate the process of understanding their needs is critical. Recent consumer
trends have indicated that amateurs can transcend professional content by
establishing genuine connections with consumers (Kasriel-Alexander, 2017).
These developments have complicated the principle objective of research,
i.e. to effectively understand the consumer.
In this chapter, the initial focus is on the market research sector in Turkey
as an emerging market. The ranking of the Turkish market research indus-
try, spending by research method and project type and the international
and local players in the market are highlighted. The Turkish Researchers’
Association (TÜAD) is working towards the goal of increasing the corpo-
rate reputation of the industry by establishing quality standards, organ-
ising yearly summits as well as continually refreshing the agenda of the
training programme.
Subsequently, the study will provide in-depth information on the use of
the term market research to define the industry and the alternative phrases
that could be preferred to better describe the business conducted in the digi-
tal era. The change in definition of the types of research and their uses in
industry in Turkey is elaborated via discussions with sector professionals. The
third and final section will provide philosophical foundations on the man-
ner in which marketing is theorised and researched and the current require-
ments are evaluated. Traditional research methods are compared with digital
Analysis of Turkish Market Research Industry 77

listening, as in the modern world ‘ask-a-question get-an-answer’ formats are

losing popularity; rather than asking questions, finding answers through lis-
tening is becoming critical. Market research companies aid their clients in
new product development processes; nonetheless, whatever approach they
take, the current outlook and the manner of doing business is predominantly
reactive. As a result, the final part of the third section is devoted to innovative
market research techniques. In the discussion section, the eternal principles
of research are recalled, along with advantages and disadvantages of new
techniques.

METHODOLOGY
This chapter exploits data taken from a literature review that addresses the
definition of market research, the underlying philosophy of research and the
emerging topics that map the future direction of the field. The methodol-
ogy chosen for this study is qualitative, where in-depth interviews lasting 90
minutes conducted with the general manager of Ipsos Research Labs, the
chairman and the general coordinator of TÜAD provided the basis of the
data. Mini interviews were also held with researchers from both the research
provider side and the client side representing different sectors. Many of the
selected researchers had vast experience in the field and can be considered as
distinguished experts in their particular area. The discussions with prominent
researchers concentrated on the following issues:

• The effect of the data-driven era upon the manner in which research
is performed, the types of data gathered and the presentation of
data.
• Solutions offered for the future progress of online research in Turkey.
• The presence of different labels attached to the market research indus-
try and the correspondence between the work performed today and these
labels in Turkey.
• Competition in the industry as well as the type of companies regarded as
the future competitors.
• New-generation research methods and innovative approaches used in dif-
ferent sectors.

The approach in this study with commentaries from different sectors con-
tributed to the understanding of multiple dimensions of the subject matter.
In the light of the precepts acquired from the viewpoints of both global and
78 ÖZGECAN KARANCI

local leaders in the industry, a model is derived that signifies the future of
the market research industry. The change in research and its utilisation in the
industry are analysed through this holistic approach, and the model produced
at the end of this chapter represents an invaluable contribution to the field.

MARKET RESEARCH SECTOR IN TURKEY

Market Research Sector Ranking and Growth Rate

As a starting point, an overview of the industry and the wider global picture will
be discussed, followed by highlights and developments from various regions as
well as the differing factors prevalent in the Turkish market research industry.
The European Society for Opinion and Marketing Research (ESOMAR),
as an organisation that has the objective of encouraging, developing and
augmenting market research on a global basis, measures the industry turno-
ver at national, regional and global levels (ESOMAR, 2016). The industry
study conducted by ESOMAR on an annual basis (ESOMAR, 2016) reviews
the volume and performance of the market research industry and investi-
gates how the research market continues to grow. The following statistics are
extracted from the 2016 report and include the research turnover and growth
data for more than 90 countries.
In terms of market research sector size, Turkey in 2015 was ranked 23rd out
of 85 countries. The five largest markets in terms of turnover in US dollars
were the United States, the United Kingdom, Germany, France and China
respectively. When the net growth rates of the regions are examined, it can be
seen that North America in 2015 was not only the largest region in the world
in terms of market share but also the fastest growing region. Latin America
and Africa displayed negative net growth rates, predominantly due to currency
adjustments. The European region was the second fastest growing market in
2015, with a rate of 2.8%. Europe is composed of three subgroups that are
European Union (EU), 15 states, New EU member states and other Europe.
Turkey is part of the group called other Europe, which is shrinking by 6.9%,
and Turkey is the only country in this subgroup with a positive net growth rate.

Spending by Research Method and Spending by Project Type

Metrics such as total spending by research method – the breakdown of quanti-

tative and qualitative methods – and spending by project type reveal important
Analysis of Turkish Market Research Industry 79

Table 1.  Global Growth Rates per Region.

Region Net Growth (%)*

2014–2015

Europe 2.8
North America 3.1
Asia Pacific 1.3
Latin America −7.8
Middle East 1.7
Africa −0.5
World total 2.2

Europe

EU 15 3.3
New EU Member states 4.9
Other Europe −6.9
 Russia −13.5
 Switzerland −12.8
 Turkey 5.6
 Norway −1.2
  Other European Countries −0.3
 Ukraine −9.9
Europe total 2.8

Source: ESOMAR (2016).

Note: *Growth rates are calculated in local currencies, net growth is adjusted using local inflation
rates.

aspects of the type of market research business conducted in a specific coun-

try (ESOMAR, 2016). Turkey is listed as the second largest market, spending
68% of its total spending on research on face-to-face quantitative methods
(ESOMAR, 2016), and closely following Vietnam, which dedicated 71% of
its spending on face-to-face methods. In comparison to a traditional method
such as face-to-face, the percentage spending for online research in Turkey is
only 6%. However, the dominant use of online research is observed in coun-
tries such as Switzerland, Japan and Australia.
The dominance of the face-to-face quantitative research method in Turkey
is a significant disadvantage and an issue that needs to be resolved in the near
future. Turkey is not perceived as a pioneer in the market but is more of a fol-
lower in that respect, and the current outlook for the country is not promising
in terms of the level of penetration. There are also concerns regarding the
level of security of data and the self-administered nature of online research.
80 ÖZGECAN KARANCI

Table 2.  Spending by Research Method.

(%) Spending by Research Method ESOMAR 2016 Report

Breakdown of Qualitative and Quantitative Weighted Total Turkey

Reports

Quantitative Mail 2 0
Telephone (CATI) 9 11
Face-to-face 8 68
Online quantitative research 24 6
Mobile/smartphone 4 0
Online traffic/audience measurement 3 2
Automated digital/electronic 16 1
Others 4 1
Total quantitative 70 89
Qualitative Group discussions/focus groups 8 5
In-depth face-to-face interviews 2 2
Ethnography/blogging 1 2
Online research communities 5 0
Others 1 0
Total qualitative 16 9
Others 14 2
Grand total 100 100

Source: ESOMAR (2016).

The professionals interviewed from both agency and client sides shared their
views on the current situation:

First of all, Internet penetration needs to increase in Turkey. Current online users still do not
represent the whole population. The research companies have to gather clean and active e-mail
addresses from different sub-segments of the population. (Telecommunications sector)

Computer literacy and education levels need to be improved to boost online research
in Turkey. We even face difficulties in face-to-face surveys in transcribing questions and
answering them will be more difficult without the help of interviewers. Moreover, this
type of research poses a problem in terms of information security since we cannot control
the participants. (Telecommunications sector)

Customers need to be persuaded to use online research. (Research provider)

Some of the researchers from the industry were optimistic about the future
of online research in Turkey and highlighted actions that should be taken to
overcome some of the obstacles.

Big players in the market (e.g. international research companies) need to make invest-
ments in online panels. Online will be expensive at first and will require incentives to
Analysis of Turkish Market Research Industry 81

ensure research quality and the clients need to be informed about the reasons for higher
prices, but value for money. (FMCG sector)

If gamification increases, online research will reach a wider target group, not only the
incentive/promotion pickers, but a much more diverse group will be involved. (Research
provider)

Research companies can prove that online research is feasible and can provide reliable
results by investing more in targeted online communities such as mothers, youth etc.
(FMCG sector)

The enlargement of databases and meaningful results from surveys conducted by research
companies might have an impact on the usage of online research. (Automotive sector)

The questionnaires designed need to be shorter and to-the-point. (Research provider)

The client-side researchers expected more encouragement and investment

from the agency side and were also aware that this could initially generate
higher prices. According to some experts, new technologies, such as online
communities and gamification, would pave the way for growth.
In summary, the socio-demographic profile of the Turkish population, and
the hard facts, such as the current level of Internet penetration, cannot be
ignored, although some actions need to be implemented within the industry.

Table 3.  Spending by Project Type.

(%) Spending by Project Type ESOMAR 2016 Report

Weighted Total Turkey

Type Market measurement 15 36

Market modelling 3 2
New product/service development 11 9
Advertising pre-testing (copy) 4 4
Advertising/brand tracking 5 11
Media audience/research 10 2
Employee satisfaction 3 13
CRM systems 4 0
Mystery shopping 1 0
Omnibus/shared cost surveys 2 0
Usage and attitude surveys 9 5
Opinion research/polling 4 4
Non-profit research 1 0
Business-to-business studies 4 2
Others 24 12
Grand total 100 100

Source: ESOMAR (2016).

82 ÖZGECAN KARANCI

The household Internet penetration is not as high as expected, but the growth
in mobile Internet usage has been exponential. Researchers are witness to
a group of consumers that has been introduced to the Internet for the first
time via social networking sites access through their smartphones; these peo-
ple form the sub-segments that the market research industry once excluded
from online databases. The industry can therefore use mobile research at least
for appropriate topics and contexts. According to the comments made by a
professional, the issue is focused around the length of questionnaires, as the
questionnaires need to be shorter and more to the point in order to advance
both online and mobile research.
The spending by project type reveals the second important characteristic of
the Turkish market. Market measurement, which includes syndicated retail/
consumer panels for market size, share and tracking, constitutes more than
one-third of the Turkish market research industry. Tracking studies, such as
advertising/brand tracking and employee satisfaction measurements, are also
above the weighted average total. The types of research that are below aver-
age are media and audience research as well as usage and attitude surveys.
Usage and attitude surveys are not the only traditional surveys, as this also
includes segmentation studies and motivational research.

Turkish Researchers’ Association (TÜAD)

The TÜAD, established in 1988, monitors the fundamental standards, work-

ing conditions and information quality required by domestic and interna-
tional companies in Turkey, in line with the global dynamics, and as of May
2017, the association had 64 corporate and 280 individual members. The
TÜAD board chair underlines the impact of the discipline in her message
to the community: ‘Research is an important professional discipline which
reveals the efficiency of added value and utilisation of resources that the pub-
lic sector provides to society and the private sector to the consumers’.
TÜAD celebrated its 20th anniversary of its annual research summit in
2017 with the theme 20:20 vision used as a metaphor to describe the role of
market research in business using a sharper vision. TÜAD designed and imple-
mented an award system five years ago called the Baykush awards in order to
enhance the value of the professional research sector, which includes seven
categories called Curious, Expert, Visionary, Insightful, Innovative, Social
and the Young Baykush awards. Furthermore, the addition of Persistent and
Academic Baykush awards in 2016 brought the total number of awards to
nine. The TÜAD management emphasises that the awards are presented as a
Analysis of Turkish Market Research Industry 83

team by research providers and research owners, and not only the providers
but also the owners have embraced the awards with enthusiasm. Marketing
research is generally a part of marketing department; consequently, although
researchers contribute significantly important decisions that are made within
companies and therefore add value, they have been historically considered as
hidden gems and these awards have rendered them more visible.
TÜAD Academy is a training platform that has provided a professional
development environment in the fields of marketing and marketing research
to all stakeholders in the research sector. An examination of the advance-
ment of training topics in the past several years reveals the framework of
changing requirements and demands emanating from the sector every year.
The topics of the training programmes were predominantly methodological
in the earlier years, including qualitative versus quantitative research, the use
of statistics in analysis and pricing research, among others. However, the list
of the training programmes offered in 2017 encompasses headings ranging
from ‘gamification’ to ‘neuro-shopper’ and can be summarised as below:

• Deliverables and high-quality output: Storytelling, insight generation, info-

graphics.
• New approaches to older methods: Transition in tracking studies, surveys
behind successful ads.
• New methods: Data analytics, social media, online research, gamification,
neuroscience.
• Contribution of social sciences: Anthropology, cultural codes, psychologi-
cal factors in research.
• Marketing-related topics: Influencer marketing, decision-making, sustain-
ability research etc.

Although the variety of training topics certainly holds promise for the
future of the marketing research industry, the industry revenue that is gen-
erated by new research only constitutes 2% of the total research conducted
in Turkey. The willingness and competence to implement new methodolo-
gies does not accelerate the growth. According to the practitioners in the
sector, Turkey is a follower in many respects, and the dominance of face-
to-face research remains an issue that should be resolved. Being a follower
is a cultural issue, as Turkish culture is noted for its tendency to channelise
knowledge from the West, rather than creating its own solutions. In summary,
the market research industry has the intellectual capacity and flexibility for
creativity (Cooke & Buckley, 2008); however, the transition from offline to
online is relatively slow.
84 ÖZGECAN KARANCI

Research Companies in the Turkish Market

Global research companies account for more than half of the market, where,
as of 2015, the top six companies, namely the Nielsen Company, Kantar, IMS
Health Inc., Ipsos, GfK and Gartner, constitute 57% of the global research
market (Brereton & Bowers, 2016). ESOMAR and American Marketing
Association (AMA) continued to follow the traditional survey market,
although, from 2015 onwards, the data reveals that they decided to explore
opportunities in the broader marketing intelligence space. ‘New’ research
includes analytics, big data applications, secondary research and modelling,
among others.
In the Turkish market, as of May 2017, there were 32 market research
and 32 fieldwork companies, and 280 individual members who were regis-
tered with the TÜAD. The non-members are from different segments, such
as social/political research companies, social media monitoring companies
and boutique companies (e.g., Future Bright). Some of the companies are
individual members rather than corporate (e.g. 88Keys and Fikrimühim) and
there are start-ups who are not yet members of the association; therefore, the
total number of companies actually is significantly higher than the corporate
members listed below.
The type of companies who are members of the association can be catego-
rised as follows:

• Global International Companies: Nielsen, GfK, Ipsos, TNS etc.

• Local Full-Service Companies: Barem, Yöntem, Metod, Sia, Kalita, Era,
Vera etc.
• Local Specialised Companies: Habitus, Think Nöro, AIMS etc.
The media/audience measurement research needs to be considered as an
important element of the current and future profile of the industry. As of
today, spending per project type in Turkey is lower compared with global
standards, although the industry is undergoing a transitional period in media
research. In the modern world, measurement of a medium alone is not mean-
ingful and the multinational global players, such as Nielsen and GfK, are
investing in ‘multiscreen’ measurement models that enable them to talk with
their other panel establishments.
Lastly, the new crowdsourcing companies in Turkey should be mentioned,
such as Twentify and Adgager. They are new generation of research compa-
nies based on mobile insight platforms that have the potential to break the
Analysis of Turkish Market Research Industry 85

Table 4.  TÜAD Corporate Member Research Companies, Turkey.

Members of TÜAD (as of May 2017)

 1. AIMS ANALİTİK 17. İNC KAMUOYU ARAŞTIRMALARI

 2. AKADEMETRE ARAŞTIRMA 18. IPSOS
 3. ALFA PAZAR ARAŞTIRMA 19. KALİTA ARAŞTIRMA
 4. ANAR SOSYAL ARAŞTIRMALAR 20. METOD ARAŞTIRMA
MERKEZİ
 5. ARTI PİYASA ARAŞTIRMA 21. MILLWARD BROWN
 6. BAREM PAZAR ARAŞTIRMA 22. MINDSTATION
 7. BİRLEŞİK ARAŞTIRMACILAR 23. NIELSEN
 8. DORINSIGHT ARAŞTIRMA 24. PERSPEKTİF STRATEJI
ARASTIRMA
 9. ENVIROSELL 25. SELAS PİYASA ARAŞTIRMA
10. ERA ARAŞTIRMA 26. SEVER IMPEKS ARAŞTIRMA
11. ESTİMA ARAŞTIRMA 27. SİA ARAŞTIRMA
12. ETİK ARAŞTIRMA 28. THINK NÖRO
13. FREKANS ARAŞTIRMA 29. TNS
14. GENAR ARAŞTIRMA 30. VERA ARAŞTIRMA
15. GFK 31. XSIGHTS ARAŞTIRMA
16. HABİTUS ARAŞTIRMA 32. YÖNTEM ARAŞTIRMA

aforementioned Turkish cultural barriers of being a follower via new tools

and improved access to different target segments. As start-ups, their initial
promise indicates that they have the capability to provide quick solutions in
the fast pace of the modern world.

THE LABEL ‘MARKET RESEARCH’

Market research is considered as a discipline with sufficient intellectual capa-
bility and rigour to initiate and support discussions on the changing defini-
tions that will affect its future, and the strength of any profession is measured
by the extent of this debate on its own existence (Freidson, 2001 cited in
Nunan, 2016). The label attached to a profession is also critical because any
mismatch between the work performed and the label impacts the identity;
thus, analysis of the label ‘market research’ that has been used to describe the
industry for decades should be conducted as a necessity of professionalism
(Nunan, 2016). Several professional associations were founded in the 1940s,
including the Market Research Society (MRS) and the ESOMAR. Opinion
polls in the United States were first conducted in the 1820s, although the
acceptance of market research as a separate field can be attributed to the
86 ÖZGECAN KARANCI

period between 1910 and 1920, and the establishment of the sector can be
traced back to the early 1930s (Nunan, 2016).
There are many additional terms used to denote market research activi-
ties, such as ‘insight’ or ‘market intelligence’, and the term ‘insight’ is in
fact used as an alternative to market research, even though it emerged
from the area of customer relationship management (Nunan, 2016). As
a methodology, Nunan (2016) analysed the public-facing websites of
research companies and searched for the presence of the term ‘market
research’, either in the page title/on the home page, in the description
of the companies’ core activities or in a business unit/a set of product
offerings. Some of the alternative terms used for the description of the
core business activity can be listed as commercial intelligence, research
and consulting, customer science, intelligence and analytics, customer
experience, marketing analytics, strategic insight and business intelligence
(BI), among others. As part of the interviews in this study, four of these
common terms were listed, namely consumer insight, marketing analytics,
consulting and business intelligence, and the industry professionals from
different sectors in Turkey were asked which labels signify the actual work
done and are appropriate for the contemporary industry in Turkey.

Consumer insight is used to define our business, since we mainly interpret the data gath-
ered from consumers. (Researcher, FMCG sector)

Business intelligence is more like the analysis of transactional data that the firm generates.
Survey results can be added to the transactional data, but that does not mean we can call
market research industry entirely business intelligence, it makes research a part of BI.
The same arguments are true for marketing analytics. Consulting is such a broad term and
that’s why it does not fit at all. Consumer insight will be always a part of research, either
qualitative or quantitative, generating insight from data is an important and inseparable
part of our business. (Researcher, automotive sector)

Market research mainly refers to the descriptive stage, whereas consumer insight puts the
insight at the center and the research customers came to agencies to find out insight.
(Research provider)

The reason why a departure from the term ‘market research’ is observed
is the need to generate an influence within the entire management team.
Marketing holds such a level of importance that it cannot be left solely to the
responsibility of a single department and it encompasses activities and capa-
bilities that are spread across the organisation. The practice of using new ter-
minology is common in Turkey as well; for example, the market leader Ipsos
changed the title of its managers to insight partners and impact partners in
order to signify the importance of the field and to highlight the partnership
Analysis of Turkish Market Research Industry 87

effect. Consulting is not mentioned alone by industry professionals but is

combined with the term consumer insight.

In our industry, we conduct surveys to understand the consumer and I believe consumer
insight is the most appropriate term to use among all. Business intelligence and marketing
analytics depend on internal data and forecasts. Consulting is also a part of the business,
but it cannot be used solely by itself, since it is not fit for purpose. (Researcher, financial
services)

We can evaluate the job done by our team and the industry as consumer insight.
That’s because there are other big modelling teams within the company that analyse
internal data. We are the ones who touch the consumers and provide actionable
results at the end of our surveys. In addition to that, with our consulting hat, we
share our suggestions with the board in light of our findings. (Researcher, telecom-
munications sector)

Professional organisations such as AMA and ESOMAR provide

lengthy definitions and revise them on regular basis, depending on the
transforming needs of the society and the business world. Recently, in
December 2016, ESOMAR released an important update in the global
code (ESOMAR, 2017) to extend to data analytics. They acknowledge
the effect of digital and data-driven age upon research and how it has
changed the way in which research is conducted, as well as the types of
data gathered, accessed and utilised. Similarly, in Turkey, the TÜAD is also
discussing the definition of marketing research in the digital era. TÜAD
has conducted a workshop with companies who provide social media
marketing solutions and evaluate social media-based big data. They are
part of the ecosystem but are not yet members of TÜAD. The workshop
agenda included the new and enlarging definition of market research,
the quality standards of the sector and membership requirements. The
industry is heading towards intelligent solutions, and social media is one
of the main drivers of this process:

Access to big data has shifted the focus from the value of gathering data to the interpreta-
tion of it and that’s why the new labels of business intelligence & marketing analytics are
more appropriate. (Research provider)

I would prefer business intelligence, since our industry is not about data collection, using
the data smartly to have an impact on business performance is critical. (Researcher,
FMCG sector)

To use the label market research only denotes investigation of the history of the industry
and trends that shape it and has a passive connotation. On the other hand, business intel-
ligence comprises all kinds of studies (consumer, market, trends and forecasts) and defines
our industry better. (Researcher, FMCG sector)
88 ÖZGECAN KARANCI

MARKET RESEARCH METHODS

Philosophical Foundations of Market Research

The definition of the industry is in flux and the types of research conducted
are passing through a period of transition. The quantitative approach, once
the primary research method, appears to have lost its popularity. It is not
about fads and fashion, but the underlying reason behind this change consists
more of a philosophical approach based on the type of data.
The decision as to which method to use is affected by the research meth-
odology selected, and subsequently the methodology is shaped by the theo-
retical perspectives assumed by the researcher. At the core of the process,
a researcher will need to decide whether to use a deductive or inductive
approach. Deduction commences with a universal perspective and works
back to determine facts; conversely, induction transitions from fragmentary
information towards a connected view of a particular situation. The deduc-
tive method is targeted at hypothesis testing, after which the principle is
either corroborated or modified. The inductive approach begins with data
collection plans, then the data is examined to determine whether any patterns
appear and this approach does not have the aim of disproving a theory (Gray,
2014). In today’s world, new-generation research works with vast amounts of
data (e.g. social media-based data) where researchers aim to establish com-
monalities from footprints, and the main approach used is inductive. The dif-
ferent forms of data, such as photographs, videos and comments, are used by
researchers to form meaningful stories for curation – uncovering, interpreting,
contextualising and activating of intelligence purposes (Matthews, 2017).
Inductive and deductive methods are not mutually exclusive and they are
used in combination; a researcher may have a collection of data, which are
then tested through experiments and, in practice, the use of multiple methods
to achieve triangulation is advised (Gray, 2014).
Epistemology presents a philosophical foundation for determining the
forms of knowledge that are legitimate and sufficient. Gray (2014) summa-
rises three main epistemological stances that guide researchers in choosing
research methods. Objectivism argues that reality exists externally to the
researcher and objective reality is ‘out there’. Conversely, constructivism
opposes this viewpoint and asserts that truth and meaning cannot be found in
the external world but can be established by the subject’s interactions with the
world. As a third main philosophy, subjectivism indicates that meaning does
not emanate from the interplay imposed on an object by a subject. Subjects
create meaning but achieve this from the collective unconscious. Subjectivism
Analysis of Turkish Market Research Industry 89

has challenged the traditional orientations and flourished postmodern the-

oretical perspectives. According to Cova, Maclaran and Bradshaw (2013),
postmodernism has motivated people to challenge mainstream marketing
theories and to reconsider traditional approaches to consumer research. At
that time, a productive consumer who created value during consumption was
particularly far-reaching and innovative for consumer research and market-
ing (Cova et al., 2013). Marketing research has been deconstructed after post-
modernism and the reality has become socially constructed, multiple, holistic
and contextual.
Thus, there has been a radical shift in the roles consumers play, as they
now feed their experience back into the research on marketing. New perspec-
tives empower the consumer, whose relationship with the company continues
after the purchase has been made, or when the product has been consumed.
Furthermore, consumption is achieved with the subject becoming the object
that has been marketed. The individual is central to marketing and acts as
both the subject of the process and the object upon which the marketing is
aimed. Additionally, imagination must be given free rein in order to avoid
stereotypes and abstract concepts. It is possible to see how the future of mar-
keting will develop, with the consumer’s subjective experience becoming the
primary focus.
The marketing researcher is also given a more creative role, as he or she
can continue to shift the results of research into a framework where both con-
sumer and researcher can relate to the context through experience. The col-
lated information will not become a tool used to exert power over the market
but will be one element of a pluralist model of ideas with changing percep-
tions of experience. This is in contrast to the modernist research model, which
is always focused on ‘the masses’. Fletcher (2006) also expresses concern that
market research might fail to understand and address the fragmented world,
since the industry is still engineered around the language of mass markets
and majorities. This does not mean that postmodernist research is unaware
of the social context within which individuals have experiences. Experience
is also an important factor in all other aspects of life and the need to be ‘sci-
entific’ when making generalisations for postmodern marketing theories will
be diminished. Therefore, the creation of patterns or abstractions no longer
becomes necessary, since contingencies hold the same level of validity knowl-
edge (Podesta & Addis, 2003).
The effects of postmodernism also have implications for research tools
as well as the various methods adopted for investigation. Although both
quantitative and qualitative methods can be utilised, a theory is not ren-
dered scientific as a result of the employment of a method itself but due to
90 ÖZGECAN KARANCI

the enrichment acquired from the new knowledge (Podesta & Addis, 2003).
Postmodernist research relies on the premise that no method is more scientific
than another. In other words, all methods, without exception, can conceive
scientific theories and consequently incremental knowledge. Hence, it is evi-
dent that the concept of science is relative and not absolute.
According to Cova et al. (2013), there are also post-postmodern proposals
and a group of scholars have given a renaissance to communism. Whatever
label is preferred for the present movement, the rise of collective desire is
observed, and as Zizek (2010) acknowledges, the vision of future is visible to
believers who are from engaged positions across the globe (cited in Cova et al.,
2013). In terms of research, this translates into collective strength replacing
the individual. In Turkey, the new methods of co-creation workshops, online
communities, mobile data collection etc. are part of this renaissance effect.

Traditional Methods versus Digital Listening

In the last decade, the world has witnessed a digital revolution that has not
only affected the manner in which research is conducted but also the identity
of the main actor: ‘the storyteller’. Researchers no longer form their stories
and address their goals by asking questions, as they are required to be active
listeners using different channels such as social media and brand communi-
ties. The consumer is the main actor since nobody is capable of telling their
stories better than themselves.
Traditional marketing research is positioned within many companies as
the ‘voice of the customer’ and building market and consumer insight is the
role and responsibility of the research team. There is more than one method
of listening to the consumer; Bhalla (2011) summarises the key ways that
organisations listen under three main headings, namely traditional marketing
research, observation and digital listening.
All traditional types of research designs are made for the purpose of
achieving a better understanding of consumers and it is not possible to find
a study that does not place the consumer at the centre. Listening is at the
core of market research and this industry has become accustomed to helping
companies achieve closer relations with the consumers. However, the indus-
try is also passionate for abstractions and generalisations and has a history
of reporting with masses. The individual consumer loses its uniqueness and
all distinguishing features in market research reports. As Bhalla (2011) high-
lights, the dominant – mainly old school – tools and logic of market research
actually erased those features by creating greater distance between a company
Analysis of Turkish Market Research Industry 91

and its consumers. The inherent problem is that the discipline, equipped with
its traditional tools, is unable to cope with the demands of the modern com-
plex marketing environment and the high level of competition. Today, with
the effect of digitalisation, it can be concluded that market research is less
interested in masses and more in favor of maintaining the authentic identity
of the consumers through new methods of listening. The industry is entering
an era where the ‘ask-a-question, get an-answer’ approach will be replaced
with passive monitoring and the use of digital footprints in appropriate con-
texts; a practitioner from the fast-moving consumer goods sector exemplifies
a relevant context.

Modelling and low intervention models such as passive monitoring work better and
provide deeper and more realistic inferences, especially in exploratory type of research.
(Researcher, FMCG sector)

Many international fast-moving consumer goods companies in Turkey

have already adopted the second technique of listening, i.e. observation,
more than a decade ago. They have used this approach to conduct accom-
panied shopping or observation of households in their own homes to docu-
ment consumer behaviour and the contexts within which those behaviours
are implemented. Researchers even invited their colleagues from marketing
departments to attend these kinds of ‘Consumer Direct’ sessions. When asked
directly, most consumers were unable to provide rational answers regarding
their choices – whether they use a shopping list or rely on impulse purchases in
certain categories etc. – and observation is a pivotal factor in enabling market-
ers to understand the purchasing behaviour of consumers. The professionals
from the industry in Turkey acknowledge the fact that technology is also
aiding researchers in these efforts.

We used to conduct ‘mall intercept surveys’ 10 years ago but now we are able to detect the
experience of shoppers without any personal touch thanks to new technologies such as
digital pens, beacons and cameras. (Ipsos Turkey, deputy CEO)

Listening to the consumer is such a fundamental issue that it should not be

left solely to the responsibility of the marketing research team. Digital listening
has enlarged the group who are interested in the voice of the consumer in com-
panies due to its unbiased nature. Today, it is possible to capture the conversa-
tions through information-dense environments such as blogs, discussion forums,
reviews and social network sites, which not only offer companies the opportunity
to comprehend the world as experienced by the consumer but also provide pow-
erful insights into diverse business agendas (Bhalla, 2011). Research companies
also generate communities by recruiting members to participate in active forums.
92 ÖZGECAN KARANCI

Unlike the expectations, the principal motivation for participation in brand com-
munities is not monetary. The eYaka (2012) crowdsourcing community under-
took research on its nearly 200,000 consumers and uncovered four primary
motivations under the following 4Fs: fun, fulfillment, fame and fortune. The rules
of community engagement in projects held by research companies do not differ
in this respect. Participants mainly emphasise the fun and fulfillment aspects of
their commitment by using phrases such as ‘I love to be a part of online communi-
ties’ and ‘I do enjoy sharing my ideas and thoughts’ etc. The communities provide
in-depth insights with a feature set that ranges from co-creation tools to live chats.
The methodologies used in communities can vary and include collage, video dia-
ries and contests, among others.
Finally, listening is only the beginning. Marketers need to convert these
insights into actionable solutions using co-creation tools and innovative
product development processes – design thinking is one of the most popular
tools – in collaboration with consumers in order to create value.

Innovative Tools for New Product Development

Market research companies aid their clients in new product development pro-
cesses. Whatever actions they take, even if their consumers write down the
concepts for them, the current outlook and method of doing business is pri-
marily reactive marketing. The traditional techniques for conducting market
research, as Witell, Kristensson, Gustafsson and Löfgren (2011) argue, are
focused on recording consumers’ past experiences with a product, and have
been categorised as reactive or backward-looking. These techniques either
determine the kinds of questions that should be asked or set the probable
close-ended responses that limit the opportunity to provide new insights.
Moreover, they are limited by the fact that users often experience difficulties
when imagining or remembering situations in which they have experienced
specific needs. These kinds of difficulties and drawbacks of market research
are resolved by using new-generation techniques; statements from the deputy
CEO of Ipsos Turkey highlight the current outlook and the need to abandon
old practices:

Today’s consumer is exposed to many stimuli and, within this clutter, new research meth-
ods have emerged that are able to focus the attention of consumers, such as gamification,
real-time surveys, recording consumption moments to diaries and online forums. (Ipsos
Turkey, deputy CEO)

We need to abandon the deep-rooted habits such as questionnaires that take one hour,
similar items measuring the same attribute, desk-bound discussions on brand positioning,
Analysis of Turkish Market Research Industry 93

and the struggle to conduct interviews in ‘highly sterilized’ environments that are removed
from real-life consumption moments. (Ipsos Turkey, deputy CEO)

Research departments and teams within organisations are often required

to persuade senior managers, and research results are usually presented
upwards in the organisation. Ind, Fuller and Trevail (2012) argue that, when
dealing with innovative ideas, this practice could imply significant levels of
investment and high risk. Traditional marketing research has strengths and
weaknesses compared to co-creation practices; the traditional linear model
is a discontinuous process and some ideas could be lost during the stages.
Idea generation in the classic model is linear, starting from early stage devel-
opment to filtering out, adaptation and refinement. In contrast, co-creation
models are iterative and require input from every participant throughout the
process.
Marketing departments usually believe that they have sufficient interac-
tion with the consumer, although market research is usually conducted after
the concept/brand has been developed; thus, actions to make consumer
engagement and communication proactive are not considered in the process.
New technologies and new methods of market research enable users of the
research to be more innovative as stated by a researcher from the durables
sector in Turkey:
During the product development phase, we let consumers give real-time and instant feed-
back and involve them in the initial phases of the product/service prototype production
with the help of design thinking and user experience (UX) frameworks. (Researcher,
Durables)

Organisations approach co-creation in different ways, since their willing-

ness to engage in co-creation varies. Some organisations reject co-creation,
while others are experimenters and tend to perceive co-creation as an alterna-
tive to traditional research techniques. The rest are working towards making
co-creation a way of life by involving all their stakeholders (Ind et al., 2012).
The true value of a product or a service can only be assessed from the per-
spective of the consumer, and the emphasis needs to be on the consumer value
creation process. The techniques that afford consumers the freedom to make
their own discoveries in terms of how value is co-created will be more inclined
to be instrumental in a new product’s success. The lead user method (Witell
et al, 2011) is a market research approach that is frequently recognised as
being proactive because in this technique the user is an active participant
in creative problem-solving at the location where the needs exist. Witell
et al. (2011) recommends for researchers, who aim to use co-creation prac-
tices, to encourage consumers to take the role of co-developers during the
94 ÖZGECAN KARANCI

initial stages of product/service development, since even ordinary users are

idea creators and could be equipped with more information to generate ideas.
When innovation is democratised in a manner that encourages consumers
to take the initiative, they will be capable of sharing their innovative ideas at
locations in which consumption generally occurs.
In today’s society, the value of an innovation culture is flourishing not only
in the business world but also at educational institutions beginning from pri-
mary schools. Corporate innovation culture is seen as the competitive advan-
tage of tomorrow, with the injection of creativity and consumer input.

DISCUSSION
New Technologies, Staffing Decisions

New technologies do not come without their drawbacks. As Didier Truchot,

chairman and CEO of Ipsos highlights, technology simplifies processes, expe-
dites activities and lowers prices (Bowman, 2017). Predominantly, this implies
a new way of doing business and working with new types of data. In order
to able to analyse this data, research companies are required to incorporate
specialist technical skills from a staffing perspective.
Mitch Barns, CEO of Nielsen, identifies an important issue regarding
competition and warns that research companies must broaden their scope.
According to his comments, cloud-based technology firms are also provid-
ing marketing intelligence services (Bowman, 2017). Therefore, it can be con-
cluded that competition is no longer emanating from consulting companies,
as had been the case several years ago, but can come from any company, such
as Oracle and SAP, who are in the metadata business. The manager of Ipsos
Research Labs in Turkey also highlights a similar point of view, stating that
any company who holds a large amount of data, such as Facebook, can be a
future competitor.
The competitive landscape is changing; consequently, the term market
research is no longer solely used to describe the type of business conducted
within the industry. All of these developments will certainly trigger a trans-
formation in staffing decisions and the type of training conducted to equip
the experienced researchers who have been trained with more traditional
methods.
Firstly, these types of disruptive changes can generate a new mind-
set themselves. Researchers no longer form their stories and address their
goals by asking questions but they need to be active listeners. The industry,
Analysis of Turkish Market Research Industry 95

under the name of market intelligence, is now more involved in the inductive
approach and works with vast amounts of data to determine emerging pat-
terns. Another trend that will shape the way the business will be conducted in
the research world is partnerships. Partnerships are seen by Chadwick (2017a,
2017b) as the market research model of the future; thus, in order to create
insight-driven impact, research companies need to make alliances and even
co-create with their competitors.
Secondly, staffing decisions and trainings are affected. New datasets
require people who are competent in the field of data science and the indus-
try has a shortage of qualified personnel with data integration capabilities.
Travyn Rhall, CEO Kantar Insights, also highlights an important issue in
terms of staffing (Bowman, 2017). The skills of a researcher are becoming
increasingly demanding and the Kantar CEO argues that, when they recruit,
they know that people are not capable of doing everything and lists the type
of skills needed from a researcher, such as:

• being a consultant,
• understanding the industry well,
• having a background in analytics,
• strong technical capabilities and
• good at telling stories.
Analysis of the skill set of a researcher reveals that they must have the ability to
effectively ‘tell a story’, with research findings indicating that this remains the pri-
mary skill required of the future industry leaders (Brereton & Bowers, 2016). In
summary, the industry seeks professionals who are not only researchers but also
consultants with in-depth sector knowledge, as well as IT-savvy data scientists
who can excel at high-quality deliverables and story-telling. These skills cannot be
found in one single person, but complementary teams comprising different skills
could be the answer to the changing demands of today’s dynamic and complex
world. When one thinks of research companies who display different character-
istics with a unique ‘persona’, alliances and partnerships in some client projects
could represent an even better solution.

New-Generation Research and the Eternal Principles

New technologies affect the types of research, but there are key concerns that
are everlasting. The role of researchers is to understand people; this truth
never changes and also will remain the focus in the future.
96 ÖZGECAN KARANCI

The professionals from the industry were asked whether they use new-
generation research, such as co-creation workshops, eye-tracking, enterprise
feedback management, semiotics, text analytics, mobile, modelling and ana-
lytics solutions, netnography, neuroscience, gamification, passive monitoring,
virtual reality (VR), online communities and social media monitoring. The
findings reveal that the majority of the methods are in use, although the most
common ones across different industries are modelling, social media moni-
toring and neuroscience applications.
The effect of the data-driven age can be summarised under three main head-
ings: the way research is conducted, types of data collected and the way data is
presented. The way research is conducted has not changed; the only change is
the type of data collected. The new-generation research uses innovative tools,
the process of data gathering is easier and different stakeholders are involved
where consumers, in particular, take an active role in building the brand.
However, the same principles of statistics and sampling apply to the new tools.
The way research is conducted is changing with new futuristic technologies such as VR
and neuroscience, but I believe these new methods need to function hand-in-hand with
conventional types of research. There is always an upgraded version of a technological
breakthrough, but what we need to take into account while using new technologies is to
filter the data that we gather from consumers from a system that makes it unbiased and
more profound that provides deep-dive insights. (Researcher, Durables)

While analysing a topic as researchers, we do not search the keyword and read the first
results that come up on top; first of all, we compile all the data from the universe, then we
analyse data depending on the owner of the content – brand, media company, consumer –
eliminate the incentivized content and form a random sample among the organic ones. If
we conduct an EEG survey and form a test group/control group to figure out differences,
we try to make the profile of these two groups parallel, we apply rotation rules to the ads.
These principles are still valid! (Manager, Ipsos Research Labs)

Researchers are faced with the challenge of understanding the ‘uncon-

scious’ as well as the ‘conscious’; however, market researchers remain
more comfortable with the conscious (Cooke & Buckley, 2008), since their
skill sets are based on more traditional methods. This was one of the
criticisms on our industry and we asked the industry professionals about
the ease of using the ‘unconscious’ in Turkey. As per the discussions with
the professionals, it was learned that the reservations of working with the
‘unconscious’ have been overcome, since the only change is in the type of
data collected.

Research is the same as the one we are accustomed to from a decade ago, only the
type of data is new. The key principles of research starting from research design,
Analysis of Turkish Market Research Industry 97

sampling, and content analysis still exist. You do not read likes and dislikes from the
scenes of 100 people, but rather get the engagement graph of 30 people as an output.
The researcher still needs to be the person who has skills to interpret data and who
is in charge to understand human behaviour and motivations behind it. (Manager,
Ipsos Research Labs)

The way data is presented has many creative alternatives, such as info-
graphics, video presentations and activation workshops, and the output
is so critical that it denotes the flexibility of the company. Even if global
players use high-tech solutions, if there is standardised output, the cred-
ibility diminishes.

In the last period, I can divide the sector into two types: creative researchers and tra-
ditional researchers. Creative researchers are using new generation tools, but they also
present their findings through innovative workshops. Traditional research companies
can be mostly called the slaves of their own models who are not inclined to flexibility.
(Researcher, FMCG sector)

The figure below summarises the often-quoted precepts from market

research professionals, both global leaders and researchers in Turkey,
which a marketing researcher should consider when s/he refers to the
new generation of research or the future vision of the industry. Research
designs are eclectic and the quantitative is no longer regarded as the
primary method used. Since researchers already know hard metrics of
different sectors in Turkish market, it is necessary to understand the
underlying motivations. The industry should therefore work with real-
time, unbiased, high-tech methods to uncover the relative knowledge,
not the knowledge of masses, and findings should be activated together
with all stakeholders. Decision-making is experiential and emotional;
brands were used to build upon functional attributes a decade ago, but
now emotional bonding can even be observed in categories such as insur-
ance. An increase in the number of boutique and specialised companies
in Turkey has been observed. Although in the past, mergers and acquisi-
tions (M&A) were more common, partnerships rather than M&A could
be the norm in the future.
At the heart of the market research industry, the changing roles of the mar-
ket researcher are highlighted. Researchers will assume the role of curators
of the future; curation is primarily interpreting the intelligence and forming
the big picture from fragmented details in a similar manner to a curator in a
museum. Working with many stakeholders as active participants, co-creation
will also be the second key role of the researcher.
98 ÖZGECAN KARANCI

Fig. 1.  Future of the Market Research Industry.

CONCLUSION AND MANAGERIAL

IMPLICATIONS
In order to transform the manner in which marketing research is developed, it
has to be integrated into contemporary post-positivist debates as conducted
in the humanities and social sciences. The mindset of new generation research
embraces the concept of innovative progress and the power of intuition. The
quest for the main tenets of marketing research and investigation into the dif-
ferent views regarding the subject matter stems from its link with marketing
philosophy and marketing research methods.
Analysis of Turkish Market Research Industry 99

Competition in the industry comes from many different angles and it is

the technology that is changing the face of the industry. The use of high-
technology tools applied to market research can both pose a threat and
become an opportunity if global leaders form partnerships to aid them
in the process of conducting better research. The other side of the coin
presents a riskier situation. Any company who holds vast amounts of data
can be regarded as a potential competitor and the industry is at a stage
where data from various sources needs to be integrated. Researchers are
required to amalgamate various pieces of information and help users of
the research to choose what they want to analyse among these combi-
nations; companies should not be stuck in Research 1.0. An ESOMAR
representative summarises the phases through which research has passed
(Brereton & Bowers, 2016):

• Research 1.0 is about taking a brief, doing the work and then presenting a
report.
• Research 2.0 was the time when tech and information officers opened up
the data.
• Research 3.0 is unifying data from a range of sources and then democratising it.
The present chapter contributes to the market research industry and
the literature on research methods by providing a holistic understanding, a
detailed snapshot of the current state of market research industry together with
a future outlook, of the needs of the industry in Turkey as an emerging mar-
ket. The comprehensive review in convergence with expert precepts elucidates
the transformation of the industry. From the study, conclusions can also be
made regarding the impact of technology and new methods upon research
designs.
The implications that will affect the industry professionals are twofold.
Firstly, new technology, if properly used, can have a positive effect on the
quality of time devoted to being a consultant and a curator. It must, however,
be noted that these developments have created a new mindset for the industry.
Experienced researchers, trained with the old mindset, are still more comfort-
able with the Research 1.0 type of work, which is not interactive.
The change in mindset is the hardest challenge for the industry, and the
second takeaway for managers is the focus on new skills. Researchers who
learn to enhance their skill sets in both industry and academy will gain a
competitive advantage. Considering the two roles of the future researchers,
as co-creators and curators, one needs to remain flexible for new information
emanating from different sources, and researchers should aim to collaborate
100 ÖZGECAN KARANCI

with many different stakeholders, even out-of-the-box partners who are not
from the close research community. This is an easier task since researchers
work in teams and the industry does not seek fully equipped professionals but
agile leaders who have the capability of taking active roles in the transforma-
tion process.

ACKNOWLEDGMENTS
It is a pleasure to thank those who have made this study possible; it is the
product of my belief in an industry and would not have been possible without
the support and encouragement from many special people.
Above all, I am indebted to Sidar Gedik, CEO of Ipsos Turkey, with whom
I have worked for five years. Sidar Gedik was the first person whom I con-
tacted when I started to write the manuscript of this chapter, and his encour-
agement to strive to reach a higher level at all times is greatly appreciated.
I owe very special thanks to Fulya Durmuş, chairman of the Turkish
Researchers’ Association (TÜAD) and Pınar Trana, general coordinator of
TÜAD, who have supported this study in the most collaborative and con-
structive ways.
I would like to express my utmost gratitude to Özlem Sönmezyalçın, gen-
eral manager of Ipsos Research Labs, whose guidance and inspiration has
challenged my thinking. Many professionals from the industry have enriched
this study and my deepest appreciation goes to all researchers who partici-
pated in the interviews. They are among the future leaders that will make the
industry excel at multiple disciplines when facing the challenges of market
research in Turkey.

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 SECTION 3
TURKISH CONSUMERS
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CHAPTER 3
A REVIEW OF FACTORS
AFFECTING TURKISH
CONSUMER BEHAVIOUR

İ. Taylan Dörtyol, Ayşen Coşkun and Olgun Kitapci

ABSTRACT

Consumption is a way of communication whereby consumers express, posi-

tion or/and differentiate themselves within their society or affiliated groups.
A great part of consumers’ lives are spent on various purchase activities, and
many would be eager to understand the factors underlying those behaviours.
This chapter primarily deals with the cultural, social, psychological and
personal factors that affect consumer behaviour. Each of these factors in
relation to consumer behaviour is discussed in detail. The types of con-
sumer buying behaviours and the consumer decision-making processes then
provide the fundamentals of the topic along with their relevance to Turkish
consumers.
Keywords: Cultural factors; social factors; psychological factors;
personal factors; types of consumer behaviour; consumer decision-
making process

Marketing Management in Turkey, 105–139

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181010
105
106 İ. TAYLAN DÖRTYOL ET AL.

INTRODUCTION
Companies developing consumer-oriented marketing programmes should
seek to gain essential consumer insights. With this awareness, this chapter
focuses on various aspects of consumer-purchasing behaviours. In the first
section, the factors that affect consumer behaviour will be surveyed. Next,
different types of consumer behaviours are examined. The last section of the
chapter considers how the complexity or simplicity of consumption behav-
iour shapes the buyer’s decision process. With the analysis presented in this
chapter, companies will acquire a deeper understanding of why consumers
behave in the ways they do.

FACTOR AFFECTING CONSUMER BEHAVIOUR

The factors that influence consumer purchase behaviour can be grouped into
four main categories (Kotler & Armstorng, 2016). These categories – cultural,
social, personal and psychological – are shown in Fig. 1. It should be noted
that the details of these categories differ from the classification presented by
Kotler and Armstrong (2016).

Cultural Factors

In the first category, the dimensions of culture and subcultures are the two
main influencers of consumer purchase behaviour.

Fig. 1.  Factors Influencing Consumer Behaviour.

Factors Affecting Turkish Consumer Behaviour 107

Culture
Culture signifies a way of life involving what people do and possess. Beyond
people’s outward appearance, their emotions and thoughts are significant
(Macionis, 2013). From birth to death, everything that a person learns and
acquires − all values, attitudes and habits − can be interpreted within the
context of culture (Zencirkıran, 2015).
Despite the fact that a breathtaking cultural variety exists across the
world, all cultures share some common components (Macionis, 2013), which
are now examined (see Fig. 2).

Symbols.  As Johnson (2000) describes, culture is a manifestation of

‘subjectively shared symbols’. In this definition, a symbol becomes a
powerful component for understanding the cultural aspects of a society.
From a sociological perspective, a symbol is always thought to be a
representative of distinct entity, idea or worldview of a group (Ojiako &
Aleke, 2011).
The reflection of symbol on marketing asserts itself within the frame-
work of symbolic interactionism phenomenon. Accordingly; some gen-
eral proposition of symbolism (in other words; product symbolism or
symbolic purchasing behavior) can be listed as follows (Leigh and Gabel,
1992:29):

• The symbolic meaning of products is ultimately defined by society.

• Products can be viewed as causes of behavior, in addition to their role as
satisfiers of, or responses to a need.
• Product symbolism affects the formation of an individual’s self concept.
• The more complete and consistent the set of product symbols possessed
by a consumer, the higher the probability of successful role performance.
• Symbolic purchasing behavior is more likely to be exhibited when the
consumer lacks knowledge about how to perform a certain required
role.
• Although products are purchased because of the symbols attached to them
at a societal or group level, this symbolism may be consumed on an indi-
vidual, private basis.

On the basis of its social derivation, marketers should consider the potency
of symbolism when they segment their market prior to creating and delivering
a value proposal. By doing so, they may more successfully match the sym-
bolic image of their offer with the symbolic self or group meanings of target
markets.
108 İ. TAYLAN DÖRTYOL ET AL.

Fig. 2.  The Components of Culture. Source: Macionis (2013).

Language.  Language is a symbolic system that enables humans to share and

transfer the meaning generated from every symbolic and non-material object in
society (Zencirkıran, 2015). Since language influences what we think and feel about
the world, it has a polemic effect of language on the central value component of
culture. From one point of view, language affects cultural values; from another,
domain-specific values determine the structure of language (Luna & Gupta, 2001).

Values. Values, the determiner of attitudes, are commonly defined as the

learned beliefs related to emotions and behaviours (Sevgili & Cesur, 2014). In
the field of consumer behaviour, the concept of values becomes the concept of
consumption values that lead consumers to engage in specific consumption-
related actions (Wang, 2016). The influence of values on consumer behaviour
can be discovered in many aspects. Luna and Gupta (2001) designated these
effects acting on cognition, attitude formation and behaviour. In their well-
accepted study, Sheth, Newman, and Gross (1991) pointed to the force of values
in perceived utility, asserting the following three types of consumption values:

• Functional value − The perceived utility of the object related to attributes

such as performance, reliability or price.
Factors Affecting Turkish Consumer Behaviour 109

• Emotional value − The perceived utility related to emotions.

• Social value − The perceived utility related to specific social groups.
Zencirkıran (2015) indicates that in the Turkish society certain prominent
cultural values have undergone changes:

• Frugality has given way to consumerism.

• Financial status, wealth and power, rather than education-based achieve-
ment, are most important.
• Conformism and individualism have fundamentally displaced collectivism.

Norms.  Norms are culture-specific formal or informal standards and rules

that govern the behaviour of an individual. As per expectations, norms
coercively influence what individuals can or cannot do (Zencirkıran, 2015).
Culture, therefore, has significant power to shape consumers’ decision-
making, since it leads them to generate desires and react to marketing stimuli
such as price, brand image and advertising elements (Shavit & Cho, 2016).
The concept of culture has a two-sided effect on marketing. On the
consumer side, its influences are gathered in consumers’ values, attitudes
and decision-making processes, brand and country-of-origin evaluations,
bargaining rituals and price evaluations, worldviews and communication
styles, emotions, friendships and interaction styles. On the other side, cul-
ture affects vendor companies’ global, local and regional marketing strate-
gies, product strategies as part of standardisation and adaptation, channel
strategies and relationships with other channel members, selling styles and
other communication issues in an international context (Holden, 2004).

Subculture
The cultural groups that become distinct from others in their values, norms and
behaviours are called subcultures (Zencirkıran, 2015). The context of subculture
contains both visible and invisible constructs. As Verbaan and Cox (2014) stated,
shared values with a subculture correspond to its invisible component, and the
observable parts or forms expressing these values constitute the visible set.
From traditional point-of-view, sub-cultures are formed in terms of gen-
der, ethnicity or region etc. But, with the notion of “shared experience”, the
post-modern sight labeled this group based on their shared dependence to
a consumption object or activity (Cronin and McCarthy, 2011). Thus, in
modern marketing environment, there is an intense variety in the name of
110 İ. TAYLAN DÖRTYOL ET AL.

sub-cultures. In this sense, people possessing different sexual orientation or

suffering from disabilities can be grouped in a sub-culture as well.
Aside from being a socially oriented and experience-based concept, sub-
cultures stay out of the majority of social rules (Burgh-Woodman & Brace-
Goven, 2007). Therefore, they reflect the more specific consumption patterns
of their generators and members.
Subcultures have exploitable economic potential which directs compa-
nies’ market positioning. In Germany, approximately 2.6 million Turkish
customers represent 16 billion Euros of spending power. As they create their
own lifestyles and keep their ethnic subculture alive, many German com-
panies organise special marketing operations directed at them (Erdem &
Schmidt, 2008). As an example, the German giant car manufacturer
Volkswagen employs Turkish workers in their customer call centres and cre-
ates advertisements in Turkish.

Social Factors

Social factors affecting consumer behaviour include group formation, sociali-

sation and social class, status and roles.

Groups

When a social group is referred to as a crowd, it means that its members have,
maybe temporarily, common opinions about particular values and charac-
teristics. In this instance, individuals in this group will behave according to a
community awareness grounded in collective interaction (Shahzad, Khattak,
Khattak, & Shahzad, 2015). The theory of social identity proposes that the
individual who self-identifies as part of a social group accepts the norms of
the group as the basic guidelines that shape their behaviour (Thomas, Jewell, &
Johnson, 2015). Accordingly, the strong brand commitment that the indi-
vidual holds maybe inadequate to persuade the individual to take positive
consumption steps connected with the brand. While the brand may have
strong individual associations, but if it is not consonant with the social group,
the individual will not assign to it the necessary positive symbolic meanings
(Hammerl, Dorner, Foscht, & Brandstätter, 2016).
In similar cases, there may be an unfavourable relationship between social
groups and consumption in some circumstances. Thomas et al. (2015) calls
this situation the ‘hidden consumption behaviour’, whereby individuals are
Factors Affecting Turkish Consumer Behaviour 111

liable to conceal consumption patterns which are incompatible with strongly

imposed group dynamics.
In fact, the social group’s approval or disapproval becomes the most sali-
ent decision criterion for the individual who aspires for the membership
of the group in question. Such social groups serving as a pivotal point in
­decision-making or evaluation processes are called reference groups (Macionis,
2013). To understand the effects of others on an individual’s beliefs, attitudes
or behaviours, the concept of reference group should be examined in depth
(Schiffman & Kanuk, 2007). For a reference group to be persuasive, it must
observe some essentials, which Solomon (2013) has gathered in the concept
of ‘social power’. The reference group should necessarily have referent power,
information power, legitimate power, expert power, reward power and coer-
cive power. The normative and informational influence of reference groups
on the purchasing decisions of young adults in Turkey has been proven in
their luxury consumption behaviour (Karaca, 2016).
Social groups, while they may shape various aspects of the individual’s
consumption patterns, including product evaluation, likelihood of pur-
chase and actual purchase decision, are not necessarily the groups with
which the individual comes into personal contact. The interaction occur-
ring between a viewer and a movie, or with an image or character presented
in this movie may foment that individual’s expectations. In an interesting
example, Caperello and Micliaccio (2011) reveal that women define the ‘per-
fect’ relationship and ‘ideal’ man in the light of their movie experience.

Socialisation
Socialisation is defined as an ongoing experiential process in which people
develop their potentials and personalities and learn their cultural norms
(Macionis, 2013). The social environment becomes the main source of an indi-
vidual’s acquisition of knowledge, skills, behaviours and attitudes (Shahzad
et al., 2015).These dimensions, along with other factors that engender norms
and motivations, are known as socialisation agents (Thaichon, 2017). Among
such agents are the family, school, peer group, mass media channels, the state
and the religion, and their continuing impact throughout all the stages of life-
cycle − childhood, youth, adulthood and senescence is profound (Macionis,
2013; Zencirkıran, 2015) (see Fig. 3).
Family, as the most important socialisation agent, stimulates development
and is the determinant of a person’s social position. The quality of parental
attention is held to be a critical component of a person’s capacity to set and
struggle for their goals in life (Macionis, 2013). The family is also the first
112 İ. TAYLAN DÖRTYOL ET AL.

Fig. 3.  Socialisation through Life Cycle Stages. Source: Adapted from Macionis
(2013) and Zencirkıran (2015).

transmitter of culture (Zencirkıran, 2015), and the place where basic beliefs,
values and way of life are first learned.
With their entry into the school system, individuals for the first time meet
bureaucratic organisation, experience diversity and learn meanings associ-
ated with gender (Macionis, 2013). Schooling plays an important role in
transposing society’s basic cultural values and priorities from one generation
to another (Zencirkıran, 2015).
Later, in peer groups, individuals develop a sense of self beyond their iden-
tity in the family (Macionis, 2013), and at this stage enter into a world of
exploration (Zencirkıran, 2015).
With the increasing exposure to mass media, individuals encounter more
stereotypical ideas about political and social issues, violence and sexuality
Factors Affecting Turkish Consumer Behaviour 113

(Macionis, 2013). Cultural habits, lifestyle choices and role models are thus
programmatically presented to people (Zencirkıran, 2015).
In addition, religion and the state have powerful effects on the socialisation
of an individual in societies such as Turkey’s, where conservatism and statism
are the prevailing forces. Moral references are taken from religion, and state
interventions are designed to inculcate preferred principles (Zencirkıran,
2015). For example, efforts to bring religious teachings into conformity influ-
ence Turkish consumers’ travel consumption patterns; Turkish tourists are
found to evaluate destinations with regard to dietary restrictions, the avail-
ability of pools only for women, or products that are acceptable according to
religious norms (Yes¸iltas¸, Cankül, & Temizkan, 2012).
As people pass through the life stages of socialisation they may confront
changing themes of marketing stimuli. If the particular life-stage targets
of these stimuli are defenceless because of the socialisation norms of their
respective stage, contradictions may occur. Some of the effects of socialisa-
tion on consumption behaviour that research in Turkey has found can be
summarised as follows:

• The impact of advertising increases with age; the socialisation stage most
strongly subject to the influence of television advertisements was adoles-
cence, specifically teenagers aged between 16 and 18 years (Özmete, 2009).
• The products that children mostly purchased are school stationery, choco-
lates and candies. Further, children know the marketplace well, and their
favourite retailers were toyshops, stationers and supermarkets (Gönen &
Özgen, 1992).
• The possession of a large variety of toys is a status symbol among children
(Gönen & Özgen, 1992).
• The most influential sources of information for children are, in order of
importance, television, family and friends (Gönen & Özgen, 1992).
• Adolescents aged under 15 years had more positive attitudes towards
advertisements compared to those aged over 15 years (Gönen, Özgen,
Babekoğlu, & Ufuk, 2001).
• Girls had more positive attitudes to advertisements compared to boys
(Gönen et al., 2001).
• Adolescents exhibited more brand loyalty than older age groups
(Onurlubaş & Şener, 2016).
• Adolescents had a stronger tendency to attribute prestige to brands than
older age groups (Onurlubaş & Şener, 2016).
• Adolescents had a stronger tendency than older age groups to believe that
a higher price means higher quality (Onurlubaş & Şener, 2016).
114 İ. TAYLAN DÖRTYOL ET AL.

• Adolescents performed more online consumption activities than adults

(Özhan & Altuğ, 2015).
• Family, as a socialisation agent, exerted maximum power on adolescents
(Karaca & Bozyiğit, 2015).
• Mass communication had less influence on female adolescents’ purchasing
decisions than on the decisions taken by their male counterparts (Karaca &
Bozyiğit, 2015).
• Peer group influence on male adolescents’ purchasing decisions was less
pronounced than on the consumption decisions of female adolescents
(Karaca & Bozyiğit, 2015).

Social Class, Status and Roles

In the Weberian conception, status is a dimension of stratification − the
determination of social difference − specified by the evaluation of honour
(Torche, 2007). Status, serving as an indicator of unobservable traits (Rege,
2008), in combination with social class, as indicated by economic position,
produces the concept of social stratification (Kamakura & Mazzon, 2013).
All of these concepts allude to measures of social standing. A social system is a
relational system of social positions held by individuals and reflected in social
roles, which denote behaviour and social identity (Kuntsche, Knibbe, & Gmel,
2009). These identities may reflect current or past roles or roles expected
according to life stage transitions.
Status is used by individuals as a way of communicating, or expressing
themselves to others, and also signals their social reputation (Cronje, Jacobs, &
Retief, 2016). Therefore, consumption as a means of building social identity
or improving social standing, and in this way attaining status, is frequently
apparent. This is especially the case for individuals who perceive their social
status as crucial to their identity, and for whom consumption becomes a main
focus of life (Ulver & Ostberg, 2014). In status consumption, social approval
can be located at a deeper level (O’Cass, Lee, & Siahtiri, 2013). This is evi-
dent in the observation that individuals from different social classes behave
in line with different social purposes. While individuals in higher social posi-
tions purchase to differentiate themselves from those in lower social classes,
individuals of lower position incline their purchase decisions to reflect higher
social standing (Palma, Ness, & Anderson, 2017). A study from Turkey
reveals that high status alters consumption behaviour, and that individuals
who consume to elevate their social status do so unintentionally (Yeniaras,
2016). As an example, cellular phones are not perceived solely as a mobile
communication tool but as a status symbol by some Turkish consumers
Factors Affecting Turkish Consumer Behaviour 115

(Özcan & Koçak, 2013). Price sensitivity is also found to be affected by socio-
economic status. As Gönen et al. (2001) reported, Turkish adolescents from
low socioeconomic level had a more positive attitude towards price than their
middle socioeconomic level counterparts. In addition, occupation and educa-
tion levels, as primary measures of status, were found to make Turkish con-
sumers more conscious of their food consumption (Hacıoğlu & Kurt, 2012).
Social roles specify behavioural conventions (Zencirkıran, 2015).
Accordingly, an individual with status, or with a status set that includes a
number of indicators of status, consequently manifests a role or a set of roles
(Macionis, 2013). In the traditional perspective, women fulfilled the social
role of being at home, to raise children, care for their families, and thus a kind
and sensitive social identity. The same traditionalists would charge men with
the role and responsibility of maintaining the family and house (Sekscinska,
Trzcinska, & Maison, 2016). However, with changing social norms, the social
status of individuals has been transformed in a new and non-traditional
view (Atik &        Şahin, 2012) in which the roles of women and men, absolutely
defined in a traditional view, are no longer traditional. Individuals do not
enact socially motivated consumption behaviour in order to fulfill their needs
but to match the expectations of others perceived to be in their image, or to
have authority over others (Cronje et al., 2016).

Personal Factors

In this category demographics, psychographics and self-concept are

examined.

Demographics
Demographic factors are important indicators of consumer expectations,
since they are connected with needs, desires, wants, preferences and other
consumption-related habits and motives (Jackson, Barrows, & Ferreira, 2015).
Factors such as age and lifecycle stage, gender, occupation, marital status
and economic situation affect individuals’ consumption decisions (Kotler &
Armstrong, 2016).
In the demographic analyses of Turkish consumer behaviour, gender and
marital status have been found to be the main determinants. In one study,
Özgüven Tayfun (2015) discovered that Turkish women made unplanned pur-
chases far more often than Turkish men. Another study of Turkish consum-
ers’ brand evaluations indicated that brand was more important for single
116 İ. TAYLAN DÖRTYOL ET AL.

consumers who were driven by the desire for appreciation and to be at the
forefront of consumer trends (Onurlubaş & Şener, 2016).

Psychographics
Psychographics are dimensions that can express the pattern of life of an indi-
vidual defined in their lifestyle, personality and self-concept revealed through
variables such as interests, attitudes, aspirations and preferences (Kotler &
Armstrong, 2016).

Lifestyle.  The lifestyle dimension draws on an individual’s spending pattern,

interests, selves, worldviews and demographic factors (Küçükemiroğlu,
1999). To qualify a lifestyle, Wells and Tigert (1977) developed a scale of
activities, interests and opinions (AIO). Using this scale, marketers can obtain
information about what consumers do, what they consider as interesting and
important, and what they think about themselves, social issues, the future,
etc. (Srihadi, Sukandar, & Soehadi, 2016).
In a study done by Küçükemiroğlu (1999) to identify lifestyle segments
in Turkey, three segments were distinguished. Of these segments, liberals/
trend-setters were defined by higher-level education and income individuals
who were not captive to price but to prestige. In the second segment were
moderates/survivors, and in the third, conservative consumers were identi-
fied by their unsophisticated demands and needs, and price-motivations.
Another lifestyle segmentation of Turkish consumers was conducted by
Özgül (2010), who distinguished thinkers, builders and survivors. Thinkers
value comfort, order, information and responsibility as the basis of their life-
style, are anxious about social issues and are correspondingly conservative
in their purchasing behaviour. The middle segment of builders prizes self-
sufficiency. Being more conventional, builders resist innovation, and prefer
value to luxury. In the last segment, survivors, who have the least resources
to deal with life, exhibit a basic purchasing behaviour of sourcing products
at a discount.

Personality.  Personality is the basis of an individual’s consistent behaviours,

thoughts and feelings (Macionis, 2013). Personal characteristics and life
features contribute to profiles of diverse individualities and behavioural
consequences (Messarra, Karkoulian, & El-Kassar, 2016). To understand
how personalities develop, which can assist marketers in the design of their
Factors Affecting Turkish Consumer Behaviour 117

Table 1.  Basic Personality Theories.

Theorist Theory Core Points of Theories

Sigmund Freud Psychosexual Stages 5 Stages

Oral Stage, Anal Stage, Phallic Stage,
Latent Stage and Genital Stage.
Psychoanalytic Theory Id, Ego, Superego
Jean Piaget Theory of Cognitive Sensorimotor Period, Preoperational
Development Period, Concrete Operational
Period, Formel Operational Period
Lawrence Kohlberg Moral Development Theory Pre-conventional Morality,
Conventional Morality, Post-
conventional Morality
Erik Erikson Psychosocial Stages 8 Stages
Trust vs. Mistrust, Autonomy vs.
Shame, Initiative vs. Guilt, Industry
vs. Inferiority, Ego Identity vs. Role
Confusion, Intimacy vs. Isolation,
Generativity vs. Stagnation and Ego
Integrity vs. Despair.

Source: Adapted from Macionis (2013) and Plotnik (2009).

market approach, some basic theories, summarised in Table 1, should be

considered.
The five-factor framework, or ‘The Big-Five’ is the most widely cited model
in the personality field (Gordon-Wilson & Modi, 2015), delineating five major
personality types (Quintelier, 2014) characterised by the following degrees:

• Openness, relating to an individual’s mental and experiential life, measur-

able by dimensions such as breadth, depth, originality, and complexity;
• conscientiousness, referring to impulse control that is socially prescribed,
and facilitates task and goal-directed behaviour;
• extraversion in an individual’s relationship with the social and material world
of which specific traits are sociability, activity or positive emotionality;
• agreeableness is a conception of pro-social and communal orientation
towards others; and
• emotional stability, refers to the capacity to resist becoming depressed.
For marketers, one of the main results of understanding different person-
ality types of individuals is brand management, or matching consumer and
brand personalities. Aaker (1997) introduced anthropomorphism to brand-
ing in her theory that consumers attribute human traits to brands, defining
118 İ. TAYLAN DÖRTYOL ET AL.

personality as ‘the set of human characteristics associated with a brand’ in

five distinct dimensions (see Fig. 4).
In a study of Turkish mobile phone users, customers identified the Turkcell
product as enthusiastic, expert and prominent; Turkcell and Vodaphone were
perceived equally. The study found the operator Avea, the least successful in
the market, had the least brand personality (Aksoy & Baş, 2016).

Self-concept
George Herbert Mead identified the self as a part of personality that consists
of self-awareness and self-image, and that it is a product of social experience
(Macionis, 2013).
An individual’s consumption behaviour not only includes the functional
value but also the symbolic meanings of consumption object. Symbolic con-
sumption thus reflects personal and social attributes. In this sense, it becomes
a mirroring device for the personality to indicate status or to express the self
(Hosany & Martin, 2012). Self-concept, defined as self-esteem in the psychol-
ogy literature (Mittal, 2015), in marketing is characterised in the following
four dimensions (Hosany & Martin, 2012):

• Actual self-concept, how a person perceives himself/herself.

• Ideal self-concept, how a person would like to perceive himself/herself.
• Social self-concept, how a person believes others perceived himself/
herself.
• Ideal social self-concept, how a person would like to be perceived by other
people.

Fig. 4.  Brand Personality Dimensions. Source: Aaker (1997).

Factors Affecting Turkish Consumer Behaviour 119

Self-concept, as it relates to consumption behaviour, therefore consists not

only in a person’s attributes and beliefs about themself but is also assumed to be
reflected in all the things that the person posseses (Kotler & Armstrong, 2016).

Psychological Factors

In this last category, motivation, perception, learning, memory, attitudes and

emotion are examined.

Motivation
In order to understand or predict purposeful and goal-driven consumption
behaviour, a marketer needs to investigate basic motives and drives (Barbopoulos
& Johansson, 2017). As an agency that propels an individual into an action or a
conscious/unconscious decision, motivation allows an individual to share their
effort on a specific task (Nwankwo, Hamelin, & Khaled, 2014).
When a biological or psychological need reaches a sufficient intensity, moti-
vation arises and directs the individual to immediate satisfaction (Kotler &
Armstrong, 2016). Research in the field of motivation originated in the 1920s
with the work of Paul. F. Lazarsfeld, and has since embraced a range of social
science disciplines, with Sigmund Freud, Alfred Adler, Ernest Dichter, Seymour
Banks and James Vicary counted among the contributors to the theories of what
causes action. Marketing pursues the answer to the following question: ‘Why
does a consumer buy or not buy a product?’ (Fullerton, 2013).

Perception
In 1950, James Jerome Gibson explained how attempting to understand per-
ception differed from other scientific goals (Palmer & O’Neill, 2003):

In other fields of science, the goal is to separate facts from illusions and to explain the
objective properties or behavior of things. The goal of the science of perception, by con-
trast, is to understand the act of perception itself, to discover how and why things appear
the way they do.

BRAIN: BRAIN:
PERSONALIZED
STIMULUS TRANSDUCTION PRIMARY ASSOCIATION
PERCEPTION
AREAS AREAS

Fig. 5.  Sensation vs. Perception. Source: Plotnik (2009).

120 İ. TAYLAN DÖRTYOL ET AL.

Fig. 5 depicts the progressive process from sensation to perception. From

the initial stimulus, a transformation of physical to electrical energy occurs,
in which signals become impulses to the brain, first into its primary areas
such as the temporal and parietal lobes, which have assigning and association
functions. The impulse is transmitted appropriately, and finally the percep-
tion is automatically personalised by the individual’s unique set of experi-
ences, emotions and memories. This last stage of the process of perception
can be parsed as follows:
Exposure actualises stimuli from our senses. If a stimulus passes over abso-
lute and differential thresholds, processing activity begins; attention devotes
this activity to the stimulus. In the interpretation stage of the perceptual pro-
cess, meaning is personalised. (see Fig. 6)
While perception can, therefore, be understood objectively as the process
of transforming raw information into a meaningful form, the precise mean-
ings produced will differ from person to person (Kotler & Armstrong, 2016).
The cause of this is located in the selective nature of perceptual processes
(Kotler & Keller, 2016) such that:

• selective attention tends to allocate processing capacity to the stimulus that

is associated with a current need, or that is anticipated by an individual;
• selective distortion tends to interpret information that fits preconceptions;
and
• selective retention tends towards remembering the positive aspects of a pre-
ferred object and forgetting the positive aspects of a competing object.

Learning
Learning refers to permanent behavioural change (Solomon, 2013) grounded
in newly acquired knowledge or actual experience which serve as a feedback
mechanism that guides the future behaviour (Schiffman & Kanuk, 2007).
In Fig. 7, the learning process shows motivation to be the starting
point. When a motive has been activated by a personal need or goal, the

EXPOSURE ATTENTION INTERPRETATION

Fig. 6.  The Perceptual Process. Source: Solomon (2013).

Factors Affecting Turkish Consumer Behaviour 121

MOTIVATION CUES RESPONSE REINFORCEMENT

Fig. 7.  Learning Process. Source: Adapted from Schiffman and Kanuk (2007).

Fig. 8.  Learning Theories. Source: Adapted from Solomon (2013).

information-seeking activity is performed. Cues assume the role of direct-

ing individuals to satisfy their motivation in a specific way. Their reaction to
cues is response. Learning results in the presence of positive reinforcement of
experience.
In the literature, a few basic theories aim to explain how learning
happens:
The behavioural learning theories of classical and instrumental condition-
ing posit learning as a response to external stimuli. In such theories, the inter-
nal cognitive process is called a ‘black box’ since it is not taken into account.
Thus, these theories focus on the observable parts of behaviour. In contrast,
in the cognitive learning theories such as observational learning, internal cog-
nitive processes are central in the explanation of learning (see Fig. 8).

Memory
Essentially, an information-processing concept memory performs acquiring
and storing operations. Memory systems, as outlined in Fig. 9, include three
memory types and the basic activities for successful information storage.
122 İ. TAYLAN DÖRTYOL ET AL.

Fig. 9.  Memory Systems. Source: Schiffman and Kanuk (2007).

When a new sensory input is first received, the sensory store is activated
and holds the information for less than one second, or up to a few seconds.
The presence or absence of selective attention determines the destiny of
that information. If attention is paid to the information, it is transferred
into short-term memory; otherwise that information is lost. The short-term
memory has limited capacity, storing information for less than 30 seconds.
For information to be transferred to long-term memory, where it is stored
permanently and can be easily retrieved, encoding must take place.

Attitudes
As learning occurs, attitudes are formed (Schiffman & Kanuk, 2007). From
this perspective, attitudes are therefore learned predispositions. The many
components of attitude formation evidence its complexity.
The ABC model of attitudes, depicted in Fig. 10, focuses on the attitude
object. Affect is an individual’s feelings towards an attitude object; behaviour
indicates actions or intentions towards that object; and cognition refers to an
individual’s beliefs about it.
The similarities and differences between the consumption attitudes and
behaviours of Turkish women and men were investigated by Girişken (2016),
whose findings are summarised in Table 2.

TYPES OF CONSUMER BEHAVIOUR

Understanding consumer behaviour is one of the most important objec-
tives of marketing. It is well acknowledged that the degree of effort and
Factors Affecting Turkish Consumer Behaviour 123

Fig. 10.  The ABC Model of Attitudes. Source: Solomon (2013).

Table 2.  The Attitudes of Turkish Women and Men towards Shopping.
Women Men

General attitudes A tool for relaxing. High A necessary action to fulfill the
towards shopping positive attitude. needs. Negative attitude.
General attitudes A want to spend time inside. A want to buy and leave as
towards shopping at A constant want to search soon as possible. A want to
supermarkets and find new product/ accomplish an unwanted
opportunity. A want to get mission.
informed about all sections.
The mood while shopping Positive, Happy Neutral/Negative, Distressed
at supermarkets
Time for shopping Long Short
Shopping behavior Searching, examining, smelling Searching for the shortest path to
for new product/opportunity achieve the objectives in the list
Section visiting behavior Eye-tracking all sections Generally looking the shelves that
at supermarket generally and the detergent, were already targeted or the
softener and personal care shelves on the path. The personal
sections specially. care section (if something
grabs his attention), and rarely
electronic section (if it exists)
Ideal supermarket Large, bright, wide variety not Not too big, easy to find the
atmosphere crowded. product which is wanted.

Source: Girişken (2016, p. 132).

124 İ. TAYLAN DÖRTYOL ET AL.

involvement in purchasing decisions differs widely among consumers.

This phenomenon has long been of interest to both academics and busi-
nesses. Successful companies are reported to recognise the importance
of consumer behaviour (Howard, 1983), which has a decisive effect on
managerial actions. However, researchers continue to strive to identify the
nuances of purchasing behaviours to deepen their insight into the black
box of consumer.
There are a large number of studies (e.g. Peter & Olson, 2009; Rowley,
1997) describing the types of consumer behaviours first reported in the stud-
ies of Howard and Sheth (1969). Their typology of consumer buying behav-
iour represents a solid classification in the discipline, and distinguishes routine
problem-solving, limited problem-solving and extensive problem-solving as three
types of consumer behaviours.
Based on Howard and Sheth’s (1969) classification, buying situations can
be represented on a continuum from, at one end, routine response behav-
iour to extensive problem-solving at the other, rather than representing
sequential stages. Distinctions between each type of behaviour depends on
underlying motivation, amount of information, evaluation of alternatives,
frequency of purchase and time needed, as set out in Table 3. In reality,
however, the effort expended in each of these situations does not necessar-
ily coincide (van Waterschoot & Gilbrecht, 2003). Situational factors will
affect the time and effort needed to source information. For instance, in the
case of a consumer has had a major car accident, the time spent engaged in
replacing the car would be much less than in more leisurely circumstances.
Or, buying groceries for a dinner party could involve more deliberate deci-
sion-making than for everyday food purchases. Based on these examples, it
is important to note that while Howard and Sheth’s (1969) typology gener-
alises the common patterns of buying behaviour, it does not allow for such

Table 3.  Types of Consumer Behaviours.

Routine Response Limited Extensive
Behaviour Problem-solving Problem-solving

Underlying motivation Habitual Goal-directed

Amount of information Little information Additional Great deal of
search needed information needed information
Evaluation of alternatives Little Moderate Much
Frequency of purchase Frequent Occasionally Rare
Time needed Almost none Not much Substantial
Factors Affecting Turkish Consumer Behaviour 125

less usual situations in which other important factors determine consumer

behaviour.
Buying decisions rely on consumers’ cognitive processes. Initially, consum-
ers will pay attention to information received and interpret it so as to make
contextual sense. New knowledge will then be integrated with the existing
knowledge stored in the memory to form attitudes and behaviours.
The capacity of the cognitive system is, however, limited, and people
can therefore process only a small amount of knowledge at one time. For
instance, it is highly unlikely that a vast number of product criteria (i.e. price,
environment-friendliness, ease of disposal, durability, etc.) are considered
equally in their decision-making. In addition, the cognitive system allows us
to perform complex tasks, such as riding a bike, which means that in the
cognitive process, such operations become more habitual and automatic. In
other words, people need to think less, they react unconsciously and use less
cognitive capacity and conscious control. When a consumer needs additional
information, two sources of information provide the criteria for the purchase
of a product or service. Internal information sources are previous experi-
ences with the product/brand/model, and reference groups, family/friends, or
brand marketing offer external sources. Importantly, different information is
required for each of the types of consumer behaviour.

Routine (Routinised) Response Behaviour

Little information is required in the routinised response context, and its

content appears merely as a reminder (Howard, 1983). The evaluation crite-
ria have already been established based on previous experiences, and com-
mercial information sources which have rated the brand. Since consumers
choose the brand automatically − without excessive consideration − the
behaviour becomes habit. Here, problem recognition does not intervene in
the purchase.
Habitual purchasing is a tactic of buying the same brand as last time.
Consumers are involved in a series of positive, negative or neutral evaluative
experiences. That is, they have in hand a number of simple decision heuristics
as an outcome of a learning process. Using decision heuristics enables con-
sumers to decrease the cognitive effort required to evaluate a product as new
each time a decision is to be made (Hoyer, 1984).
Using price, affect, performance and normative tactics may be a useful
strategy in a low-involvement buying situation. Price tactics include ‘choos-
ing the cheapest’, ‘having a coupon’, ‘using less so the cost is less’ and making
126 İ. TAYLAN DÖRTYOL ET AL.

‘on sale’ choices. Consumers distinguish affect in ‘liking’ or ‘loving’ a brand.

When it comes to performance evaluation, ‘working well’, ‘cleaning clothes
better’, ‘cleaner whites’, ‘best brand’ and other selling tactics are used. Even
when the decision to buy a certain product is a low-involvement one, norma-
tive tactics matter. The choice may depend on whether partner, parent or
child likes that brand (Hoyer, 1984).
Routinised response behaviour includes buying low-cost products, and
frequent purchasing. Grocery shopping (i.e. milk, bread, salt) falls into this
category, characterised by low-product involvement and little thought, time
and effort on the consumer’s part. Products applying in routinised problem-
solving behaviour are mostly encountered at the maturity stage of the prod-
uct lifecycle (Foxall, Goldsmith, & Brown, 1998). Lastovicka and Gardner
(1978) differentiated these effects within a hierarchy of actions at different
stages. A low-involvement product stimulates different types of behaviours.
For instance, when the choice is inexpensive and risk-free, the consumer first
learns the product attributes, buys the product and finally checks the feelings
aroused. This process later shapes the future experiences with the same or
related product categories.
It is important to note, however, that not every product or service type is
considered, in the consumer’s mind, in the same way. Different approaches for
evaluating the product or service categories may be invoked (Rowley, 1997).
Buying organic food, for example, maybe a routine buying behaviour for
some people, while for others the situation implies extensive problem-solving
if the benefits or location of those products are unknown.
Turkish consumers take advantage of price, affect, performance and nor-
mative tactics in low-involvement buying situations. Aktuğlu and Temel
(2006) reported that the majority of their study’s participants used price,
quality, colour, on sale offers and social desirability criteria when buying
clothes. Gavvar and Didin (2007) found that price, quality and promotional
offers affected preferences for retailer-branded products. Duman and Yağcı
(2006) and Akpınar and Yurdakul (2008) supported previous findings when
they examined the effect of price, quality and promotion along with perceived
value, service quality, taste and packaging attributes on Turkish consumers’
buying behaviour.

Limited Problem-solving

In this model of behaviour, consumers deal with less difficult tasks. Limited
problem-solving implies that there is some ambiguity in the consumer’s
Factors Affecting Turkish Consumer Behaviour 127

perceptions of brand, attributes and performance. Even though basic con-

sideration criteria apply for brands in the relevant product category, there
remains the need to collect further information to differentiate products. This
is because consumers’ knowledge and past experience are limited to a few
brands, and the various aspects of different products still need to be grasped.
It is also likely that consumers may need to research unfamiliar brands. When
the time and effort required for searching is taken into account, many con-
sumer decisions can be explained in the light of limited problem-solving
behaviour. The products in this category are mostly encountered at the growth
stage of the product lifecycle (Foxall et al., 1998).
Consumers may also search for additional information even when a low-
involvement product acquires a new attribute or feature. Yet, research shows
that this doesn’t result in an expected increase in time spent acquiring infor-
mation needed for a decision. Thøgersen, Jørgensen, and Sandager (2012)
examined whether the ‘green’ attribute of an everyday product (organic milk)
affected consumers’ decision-making. They reported that deciding to buy the
green alternative didn’t involve any longer time or effort than the conven-
tional product, finding instead that consumers developed a new habit-based
heuristic for buying the organic product as part of a learning process based
on their past experience of it.
Alnıaçık’s (2009) findings revealed that the advertised addition of a new
‘green’ feature to a washing machine, which would require limited problem-
solving, didn’t result in any additional search for information, or didn’t affect
the effectiveness of the advertisement. Buying a washing machine regardless
of its green attribute was found to relate to its functional value.

Extensive Problem-solving

When consumers deal with complex situations, there is an increase in felt

pressure to make the ‘right’ choice, which makes them feel that a high risk
incurs. Engaging in extensive problem-solving is rare compared to other types
of behaviours. With no previous experience of the product/brand, consumers
will actively search for additional information to create the choice criteria. In
this circumstance, a substantial amount of cognitive and behavioural effort is
involved in considering the alternatives (Peter & Olson, 2009) to reduce per-
ceived risk (Foxall et al., 1998). In the advent of high involvement – high level
of perceived risk, expensive and rarely bought – consumers will especially
look for greater quantities of information to determine appropriate choice
among alternatives.
128 İ. TAYLAN DÖRTYOL ET AL.

Products in the category involving extensive problem-solving behaviour

are mostly encountered at the introductory stage of the product lifecycle.
However, consumers who have just discovered the brand could also engage in
this more extensively effortful behaviour.
Age too has a role in the extensive problem-solving process. Older adults,
compared to younger age groups, tend to skip the problem-recognition phase
by using affective heuristic clues to decide in cases of extensive decision-
making. The limited cognitive resources of older consumers, due to aging
effects on the frontal systems of the brain, means that their choices are often
influenced by their tendency to preserve their mental energy for prospective
major events or tasks (Hess, Rosenberg, & Waters, 2001).
Koç (2003) reported that Turkish consumers engage in several stages
of problem-solving in the holiday decision-making process; they collect
a range of information from press advertisements and brochures, and
call and/or visit a travel agency. Given the variety of information that
consumers collect, holiday-buying behaviour may be designated a high-
involvement purchase decision. In the area of car buying, Arslan (2003)
and Köksal and Türedi (2014) examined the factors affecting the decisions
that consumers make. The results show that prospective car buyers search
for a considerable amount of information using various personal (experi-
ence of self and family/friends/associates) and impersonal (word-of-mouth,
brand name, safety test results, consulting retailer and traditional media
channels) resources.

Impulse (Impulsive) Buying Behaviour

Impulse, or impulsive, buying behaviour indicates the absence of conscious

planning. Rather, consumers feel a sudden urge to make an immediate pur-
chase (Beatty & Elizabeth Ferrell, 1998), and which often causes guilt and
shame in the long run (Yi & Baumgartner, 2010).
In many cultures, consumers’ impulsive buying activities account for a
substantial proportion of annual sales of goods and services. In Turkey, a
recent study exploring Turkish consumers’ impulse buying habits reports that
one of every two products is bought without prior planning, implying rapid
decision-making (Marketing Turkiye, 2016).
A meta-analysis of 63 studies of impulsive buying made by Amos, Holmes, &
Keneson (2014) categorised the factors that underlie impulsive consump-
tion in three groups. According to the results of their analysis, dispositional
(impulse buying trait, psychographics and motivational forces), individual
Factors Affecting Turkish Consumer Behaviour 129

(gender, age, ethnicity and income) and situational (social influence, affect,
constraints of time and money, retail environment, motivation for involve-
ment, product characteristics and browsing) factors are at play in impulse
buying decisions.
The effect of several dispositional, situational and individual variables
on impulse buying has been examined by several Turkish researchers. For
instance, self-confidence (Yüce & Güner, 2014), impulse buying tendency
(Özer & Gultekin, 2015), hedonic consumption tendency (Akturan, 2010)
and exploratory buying tendency (Okutan Bora, & Altunışık, 2013) as dispo-
sitional factors significantly influence behaviour. Situational factors, such
as circle of friends, emotional state, promotions (Villi & Kayabaşı, 2013),
reference groups, family (Ünler, 2005) and pre-purchase mood (Özer &
Gultekin, 2015) have been found to affect impulsive buying behaviour.
Gender (Akturan, 2009; Ünler, 2005) and age (Ünler, 2005), as indi-
vidual factors, had mixed effects. While Ünler (2005) and Çakmak and
Yurtsever (2012) found no gender differences in impulse buying behav-
iour, Akturan, (2009) and Yalman and Aytekin (2014) reported that
gender had a significant effect. These contradictory results could be
attributed to the research design of the studies (i.e. data collection meth-
ods, sample size and sample unit).
Moreover, various researchers have examined the kind of situational and
dispositional factors that affect online impulse buying in Turkey. Reported
findings include variety of selection, price attribute (Taşkın & Özdemir,
2017), usefulness, entertainment (Turkyilmaz, Erdem, & Uslu, 2015), ease of
use (Taşkın & Özdemir, 2017; Turkyilmaz et al., 2015) and personality traits
(Turkyilmaz et al., 2015) as significant indicators of online impulse buying
behaviour among Turkish consumers.

STAGES IN THE BUYING DECISION-MAKING

PROCESS OF TURKISH CONSUMERS
An individual who purchases products and services from the market for
their own personal consumption is called a consumer. The consumer buy-
ing decision-making process (Kotler & Keller, 2012; Olshavsky & Granbois,
1979), as shown in Fig. 11, encompasses five stages: need recognition, infor-
mation search, evaluation of alternatives, product decision and post-purchase
evaluation. Fig. 11 represents a simple model of the consumer decision-
making process that reflects, to some degree, the emotional perspective in
130 İ. TAYLAN DÖRTYOL ET AL.

Possible Factors on the Decision Process

Cultural Factors Social Factors Personal Factors Psychological

Factors
- Culture - Groups - Age and life-cycle - Motivation

- Subculture - Family - Occupation - Perception

- Social class - Roles and status - Economic - Learning

Consumer Buying Decision Process

Need Information Evaluation of Product Post-

Recognition Search Alternatives Decision purchase

Fig. 11.  Consumer-Buying Decision Process and Possible Factors on the Decision
Process. Source: Pride and Ferrell (2014).

consumer decision-making. Before examining each stage, three important

points need to be considered. First, as explained earlier, all stages are subject
to cultural, social, personal and psychological influences. Second, the actual
act of purchasing is just one stage in the process, usually the first stage.
Finally, not all consumer-buying decisions include all five stages (Pride &
Ferrell, 2014).

Stage 1: Need Recognition

Need recognition (or ‘problem recognition’) is the first of the five stages
of the buying decision-making process undertaken by consumers. In this
stage, consumers recognise a need they consider initiates the process of
finding the product that offers benefits that will fill the need or solve the
problem.
Need recognition is based on the interaction between one’s desired, or
ideal, state and reality. Therefore, need recognition occurs where a signifi-
cant difference develops among people regarding a particular want or need
(Cornally & Mc Carthy, 2011). Of course, an individual’s needs are influenced
by a wide range of sociological and psychological factors. In need recogni-
tion, the marketer must explore the kinds of needs of consumers (Kotler &
Armstrong, 2015).
Factors Affecting Turkish Consumer Behaviour 131

Stage 2: Information Search

Information research is instigated when a person lacks prior knowledge about

goods or services. This leads them to seek information from reference groups,
personal experience and sources such as the internet; public sources such as
online forums, social media and consumer reviews; or marketer-dominated
sources such as salespersons, advertising and promotions, particularly when
previous personal experience is limited. The following information sources
are likely to be used (Palmer, 2009):
Personal experience is a pivotal information point since products can be
assessed in the light of previous purchases.
Word-of-mouth (WOM) communication as a personal resource tool offers
a significant information source. A consumer who feels satisfied or dissatis-
fied based on their experience of a product or service will recommend (or not)
the product/brand/manufacturer to their friends or associates. Many people
seek the advice and opinions of friends. In addition, WOM is also increas-
ingly a public source too with the advent of online reviews via social network-
ing sites, blogs and discussion forums.
The Sikayetvar.com (2017) was chosen as an exemplar because it is a
widely-used, professional and long-serving site in terms of the data presented,
which is also updated in real time by real customers. This site is praised as
‘the largest site for complaints’ with 2,623,530 individual members who have
made a total of 4,661,229 complaints about firms, and more than 850 cor-
porate members around Turkey. It boasts of 3,693,888 distinct visitors per
month who have contributed a complaint response rate of 57%. Consumers
use the internet as a personal source tool to search for information about
brands and products, using search engines such as Google (www.google.com)
and Yandex (www.yandex.com).

Stage 3: Evaluation of Alternatives

Consumers compare potential solutions for the same need in the evaluation of
alternatives as part of their buying decision-making, using a range of evalu-
ative criteria. These criteria may have tangible (e.g. price, colour, size and
shape) or intangible (image-based) benefits. Evaluations of purchasing alter-
natives will depend on the individual consumer and the specific buying situ-
ation. A study of Turkish tourists (Demir, 2015), indicated that the role of
internal information (such as experience and expertise) is important in their
evaluations of alternatives in the travel-purchasing process.
132 İ. TAYLAN DÖRTYOL ET AL.

Stage 4: Purchase Decision

In this stage, the consumer decides on brand and product. Moreover, other
decisions are made at this stage, including where and how to make the pur-
chase and on what terms. New information may be sought from all brands’
promotional channels by the consumer before the ‘best’ brand or an alterna-
tive is chosen in the final purchase decision.
The consumer’s purchase decision may be affected by three factors. One
of these is an unexpected situation, the loss of one’s job, for example, or a
general worsening of the economy. The second factor is the attitudes of oth-
ers. Someone who is important to you, for example, commenting on your
purchasing decision may cause you to change your mind. The third factor is
the perceived risk of making the purchase. This is related to consumer confi-
dence, and Turkish consumers who perceive a risk, reduce or postpone their
consumption, as demonstrated in Fig. 12.
The Turkish consumer confidence index is a composite index of produc-
ers’ and consumers’ evaluations, expectations and tendencies as they relate
to the country’s general economic situation. The figure shows that consumer
confidence in the economy increased in May 2017 by 2.2% to 72.8 percent
compared to the previous month’s figure of 71.3 percent.
Consumers may perceive different risks in several dimensions. Cases (2002)
identified six different forms of risks: financial, performance, psychological,
physical, social and time. These principal dimensions of risk are defined in
Table 4.

Fig. 12.  Turkish Consumer Confidence Index.

Factors Affecting Turkish Consumer Behaviour 133

Table 4.  Definitions of Perceived-Risk Dimensions.

Risk Dimensions Definitions

Financial risk Relates to monetary loss in the case of a bad purchase.

Performance risk Relates to the functional aspects of the product.
Psychological risk Reflects an individual’s disappointment in themself.
Physical risk Relates to health or safety.
Social risk Reflects disappointment in the individual among friends.
Time risk Relates to the time spent on the purchase of a product.

Source: Cases (2002).

It is also important to understand who is actually responsible for making a

purchase decision. According to Kitapci and Dörtyol (2009), in a traditional
Turkish family, the father dominates purchase decision-making as the unique
breadwinner (financial source) for the family, but he has started to lose his
power, thanks to women becoming better educated and more independent
financially. Kitapci and Dörtyol (2009) note that women with higher educa-
tion and occupational levels are more influential in the procurement decision
process than those who are relatively uneducated and do not work outside
the home.

Stage 5: Post-Purchase Evaluation

Marketers recognise that purchasing activity does not end with a sale being
completed. Following the purchase, the consumer’s satisfaction or dissatisfac-
tion affects the post-purchase evaluation, which might be measured by the
degree of disparity between expectation and performance (see Fig. 13). This
suggests that marketers should offer realistic value propositions (Solomon,
Marshall, & Stuart, 2012).

Consumer's Expectations > Product's Perceived Performance = The consumer is dissatisfied Complaint Behaviors

Consumer's Expectations = Product's Perceived Performance = The consumer is satisfied Repurchase

Intention

Consumer's Expectations > Product's Perceived Performance = The consumer is more satisfied

Fig. 13.  Customers’ Post-Purchase Evaluation.

134 İ. TAYLAN DÖRTYOL ET AL.

The possible outcomes of post-purchase evaluation are either satisfaction

or dissatisfaction, and both outcomes have influential capacity as consumer
endorsement or disparagement of the product and/or brand. As discussed
previously, the WOM effect is important in generating consumer expecta-
tions. Savaş and Günay (2016) found that WOM has considerable impact as
a predictor of Turkish consumers’ post-purchase satisfaction levels. Özer and
Anteplioğlu (2014) highlighted that satisfied customers tend to display posi-
tive WOM whereas unsatisfied customers are inclined to adverse commentary
in the post-purchase evaluation.

CONCLUSION
Decisions in daily life are natured differently in many dimensions. Consumers
sometimes make purchases out of habit or without much thought; occasion-
ally, they seek additional information to help them evaluate alternatives.
Without previous experience of a product or service, consumers wish to
reduce the perceived risks of purchase by investing time and effort in the
decision-making process. This type of process happens less often compared
to habitual purchases or those involving simpler choices.
It is important for both academicians and marketers to understand con-
sumer motivations and the decision-making parameters of time, information,
evaluation of choices and the types of behaviour that vary with the frequency
of purchasing.
Research investigating Turkish consumer behaviours and their influences as
noted in this chapter has produced similar results for the literature of the wider
field. However, contradictory findings have also been reported. These may be a
consequence of research design, particularly researchers’ use of non-probability
sampling techniques, a sampling method that is a main obstacle to the generalisa-
tion of results. To achieve greater generalisation of results, studies could utilise
random sampling methods. Finally, measuring and observing behaviours, rather
than attitudes and intentions only, would provide more solid research outcomes.

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 SECTION 4
BUILDING BRANDS IN TURKEY
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CHAPTER 4.1
CONSUMER–BRAND
RELATIONSHIPS IN TURKEY

Ezgi Merdin-Uygur, Umut Kubat and

Zeynep Gürhan-Canli

ABSTRACT

Marketing academics and practitioners have acknowledged that consum-

ers form specific relationships with brands that are able to create unique
and memorable qualities. As a result, the concept of consumer–brand rela-
tionship has been of great interest for marketers. Indeed, consumer–brand
relationships are very complex and multidimensional in nature. A common
perception is that brand management should create ultimate offerings and
communication to have successful relationships with its consumer base.
However, how consumers construe their relationships with brands is mostly
out of the brands’ control. It is an emotion-intense realm and necessitates
careful study of the consumers as well as the context. After summarising
the current literature on brand relationships, we focus on Turkish consum-
ers’ relationships with brands.
By focussing on a range of global and local brand studies, this chapter
offers a comprehensive and well-informed analysis of the issues and prac-
tices involved in consumer–brand relationships in the Turkish context.

Marketing Management in Turkey, 143–164

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181012
143
144 EZGI MERDIN-UYGUR ET AL.

The chapter is organised into three parts. The first part focusses on ante-
cedents of consumer–brand relationships such as the global or local iden-
tity of the brand and brand personality. The second part presents detailed
explorations of various brand relationships such as brand love and brand
trust. The third and the final part focusses on an important phenomenon,
the stage for various brand relationships, being online brand communities.
The chapter concludes with the future research directions in these three
main areas together with a discussion of offline and online branding oppor-
tunities in the Turkish market.
Keywords: Brand management; consumer–brand relations; brand love;
brand loyalty; brand communities; brand personality

INTRODUCTION
The concept of ‘consumer–brand relationships’ (CBR) has received much
interest from researchers during the past two decades (Fetscherin & Heinrich,
2015). Marketing research has tried to identify these relationships, how are
they formed, how can they be measured and how can they evolve. The aim
of this chapter is to inform researchers and practitioners about this relatively
new concept by focussing on research and practices in Turkey.
Consumers may form different types of relations with brands. These
relationships may take many forms from ‘one-time affairs’ to ‘love affairs’.
Each type of relationship is associated with different emotions and norms
(Fournier, 1998). Relationships with a brand are connected to the meaning
ascribed to the brand. Meaning is an essential part of forming relationships
with brands since brands contribute to individual’s self-concepts and identity
(Swaminathan, Page, & Gurhan-Canli, 2007). Brands may have functional
or symbolic meanings. Consumers can impart unique meaning to brands
through their own experiences or relationships. However, marketers also play
a role in the establishment of brand meaning through marketing communica-
tion programmes. As brand relationships have various meanings or motiva-
tors, they also have various outcomes. CBRs have behavioural effects such as
brand loyalty, engaging in word of mouth (WOM), or involvement in brand
communities. They also have psychological effects such as brand engagement
or brand love.
The first part of this chapter evaluates brand iconicity and brand’s
globalness or localness since Turkish brands would probably need to be
global to some degree in order to be successful (Özsomer, 2012). This part also
CBR in Turkey 145

reviews the role of brand personality dimensions in CBRs. Setting the right
brand personality dimension is a strategic tool for marketers in Turkey. Here,
adaptations of brand personality scales in the Turkish context are reviewed,
revealing different brand personality types such as competency, excitement,
traditionalism and androgen (Akın, 2011; Aksoy & Özsomer, 2007).
The second part includes topics of brand trust, brand loyalty, brand
engagement and brand love, as these are among the most widely investigated
outcomes of CBR in Turkey. There are 759 papers or dissertations indexed
in Google Scholar with the search term of ‘brand loyalty’ and 527 with the
search term ‘brand engagement’. Customers may be loyal to a lot of brands
whereas only a few brands can be loved among a vast sea of brands (Ahuvia,
2005). Brand love is defined as ‘the degree of passionate emotional attach-
ment a satisfied consumer has for the brand’ (Carroll & Ahuvia, 2006, p. 81).
In order to delve into brand love in Turkey, we report the results of the the-
matic analysis of the brand love stories of Turkish consumers. Nostalgia and
unforgettable brand experiences have been discovered as important themes.
The chapter concludes with the contemporary topics of online brand rela-
tionships such as WOM marketing and online brand communities.

ANTECEDENTS OF BRAND RELATIONSHIPS

Global and Local Identities of Brands

When we look at the success factors of strong brands, it is observed that

they are globally or locally iconic. Local iconic brands symbolise the val-
ues, needs and aspirations of the members of the local country (Özsomer,
2012). Especially in culturally relevant categories such as the food and drinks
industry, local brands are perceived to be of higher quality (Özsomer, 2012).
However, combining globalness with localness as a hybrid branding strategy
is crucial for brand success. Özsomer (2012) calls it the marriage of global
brand success with local iconicity. This strategy is especially important in
developing markets such as Turkey. Most love-brands in Turkey make cul-
tural adaptations and become glocalised (i.e. McDonald’s McTurco and
Burger King’s Ramadan menu).
Global or local identity of a brand is best reflected in marketing commu-
nication efforts such as advertisements. In Turkey, advertisements and com-
munication materials include a lot of ethnic or cultural cues to support brand
identity. Zeybek and Ekin (2012) analysed global food brands’ advertisements
146 EZGI MERDIN-UYGUR ET AL.

in Turkey that included cultural codes and localness/globalness cues. Their

sample of print ads from fast moving consumer goods (FMCG) included
McTurco of McDonalds, Lipton teabags and Carte d’Or ice creams. The anal-
ysis revealed the glocal approach of iconic brands in Turkey. For example, ice
cream or fast food brands made associations with religious practices and fes-
tivals such as Ramadan. Another example is advertisements about tea, which
is the most consumed drink in Turkey. Even though a tea brand is a foreign
brand, its communication material respects local consumption patterns such
as local and transparent tea glass shapes. Such a glass image is the opposite of
opaque cups used in the United Kingdom. Zeybek and Ekin (2012) conclude
that glocalisation strategies of global brands’ communication in Turkey lie in
four domains. These four domains are ‘values’ (i.e. Ramadan, love and shar-
ing), ‘beliefs’ (i.e. Ramadan, holiness, mosque and iftar), ‘rituals’ (having soup
before meal and having dessert after meal, drinking tea with glass cup, etc.)
and ‘symbols’ (i.e. glass cup, redbud flower and Bosphorus Bridge).
Research also looked at the cultural cues in 10 global brands strong in the
Turkish market (i.e. Apple, Coca-Cola, IKEA and L’Oreal) (Deneçli, 2013).
Similar to Hofstede and Hofstede’s (2001) dimensions, cultural signals were
represented by domains of symbols, heroes, rituals or values. For example,
HSBC used a traditional Turkish house interior in its ads, while Nike portrays
a traditional Turkish picnic atmosphere with a grill. The analysis concludes
that global brands conduct their marketing communication in a number of
culturally relevant ways. While doing this, such brands use a diverse range of
values, beliefs, rituals, traditions or personalities depending on the country
(Deneçli, 2013).

Brand Personality and Congruity with Consumers

Brand personality, the set of human characteristics associated with a brand,

has received significant attention from relationship marketing researchers.
The importance of brand personality in building relations arises from the
symbolic benefits it provides. The benefits provided by the brands fall into
three categories as functional, experiential and symbolic. Symbolic benefits
are about self-expression and the way we signal to others by means of objects
of consumption (Heding, Knudtzen, & Bjerre, 2009). Consumers are known
to form strong relationships with brands that have personality associations
that are congruent with their self-concept (Sirgy, 1982). Brand personality
is an efficient driver of emotional bonding between a brand and consumers
because brand personality serves as a means of construction and expression
CBR in Turkey 147

of the self. At the individual level, consumers prefer certain brands because
they carry a symbolic significance in creation and maintenance of self
(Heding et al., 2009). At the social level, brand personality serves to signal
as belonging to certain social subcultures (Heding et al., 2009). Thus, brand
personality construct can be a driver of strong CBRs.
By conducting an extensive research, Aaker (1997) developed a framework
of brand personality and highlighted its five dimensions (sincerity, excite-
ment, competence, sophistication and ruggedness). Beliefs may change from
culture to culture, and in a similar way the perception of brands change from
culture to culture. These differences in brand perceptions are evidenced in
brand personality dimensions too. For example, Japanese brand personality
dimensions include peacefulness and Spanish brand personality dimensions
include passion instead of the ruggedness of the American dimension (Aaker,
Benet-Martinez, & Garolera, 2001). Brand personality dimensions in Turkey
were determined by Aksoy and Özsomer (2007) as competence, excitement,
traditionalism and androgyny. The first two dimensions are common across
different cultures. Traditionalism is an adjective widely used in defining the
Turkish culture whereas androgyny shows that the brands can be identified
by feminine or masculine adjectives. Traditionalism dimension is unique
to Turkish culture, but androgyny was also observed in the US samples
(Sung & Tinkham, 2005).
Some research companies tried to measure androgyny of the brands
in Turkey. Research conducted by Mediacat journal and Dora Research
Company in 2012 revealed that Turkish consumers perceived beer brands
(e.g. Tuborg and Efes) and automobile brands (e.g. Mercedes-Benz and Ford)
as masculine brands. They perceived retail brands such as BİM or Migros as
feminine brands (Baysal, 2012). Further market research called ‘Brandmaker
Brand Value 2014’ (Brandterapi, 2014) revealed five dimensions of brand per-
sonality as competence, excitement, traditionalism, globalism and rebellious-
ness. According to the findings of this study, the most competent brand was
Arçelik (refrigerators), the most exciting brand was Nike, the most global and
rebellious brand was Adidas and the most traditional brand was Bim. Arçelik
was also seen as the most culturally symbolic brand of Turkey (Brandterapi,
2014). Despite these investigations, more academic research is necessary
to generalise these findings and to understand in a better way how brands
are perceived by Turkish consumers. Brand managers need to be aware that
Turkish brand personality dimensions are not the same as the US dimen-
sions. Finally, brand managers should be cautious because brand personality
is not a stable construct and the perceptions of the consumers may be differ-
ent from the dimensions imposed by the company.
148 EZGI MERDIN-UYGUR ET AL.

Building up a strong and winning brand personality is also crucial because

previous studies have shown that brand personality is an antecedent of brand
trust (e.g. Louis & Lombart, 2010; Sung & Kim, 2010), brand attachment
(e.g. Louis & Lombart, 2010; Swaminathan, Stilley, & Ahluwalia, 2009),
brand commitment (e.g. Fournier, 1998; Louis & Lombart, 2010), brand
engagement (Goldsmith & Goldsmith, 2012) and brand loyalty (e.g. Kim,
Lee, & Suh, 2015; Lin, 2010; Ramaseshan & Stein, 2014). In the next sections,
we delve into these concepts which are significant actors in CBRs.

CONSEQUENCES OF BRAND RELATIONSHIPS

Brand Trust, Brand Loyalty and Brand Engagement

Brand trust is defined as ‘the willingness of the average consumer to rely

on the ability of the brand to perform its stated function’ (Chaudhuri &
Holbrook, 2001, p. 82). Loyalty can be evaluated as attitudinal and behav-
ioural. Attitudinal loyalty is defined by Jacoby and Chestnut (1978) as the
consumer’s predisposition towards a brand as a function of psychological
processes, which include attitudinal preference and commitment. On the
other hand, behavioural loyalty is defined as the consumer’s tendency to
repurchase a brand revealed through behaviour, which can be measured and
which impacts directly on brand sales (Hammond, East, & Ehrenberg, 1996).
Loyalty behaviours may include repeated buying, resisting brand switching
and spreading positive WOM. Brand loyalty is perhaps the most studied out-
come of CBRs in Turkey. There are 801 papers or dissertations indexed in
Google Scholar with the search term of ‘brand loyalty’ in Turkish. Turkish
papers on brand loyalty are predominantly focussed on antecedents of brand
loyalty, and there are some other groups of papers on measurement tech-
niques of brand loyalty.
A group of researchers examined the relationships between the concepts
of brand trust and loyalty. This stream of research emphasises that these
concepts are related to each other. Among the most cited ones, Chaudhuri
and Holbrook’s (2001) study shows that brand trust combined with brand
affect determines both purchase (behavioural) loyalty and attitudinal loyalty.
Research from Turkey supports the findings of Chaudhuri and Holbrook
(2001). For instance, Sahin, Zehir and Kitapçı (2011) also show that brand
trust positively affects brand loyalty. This study was conducted in Istanbul
using automobile brands. Another study conducted in Ankara by Özdemir
CBR in Turkey 149

and Koçak (2012) yielded similar results. The researchers measured trust
and loyalty for cellphone brands, and found that brand trust mediates
relations between brand satisfaction and brand loyalty (i.e. attitudinal and
behavioural). According to Chaudhuri and Holbrook (2001), brand trust
leads to brand loyalty because trust creates exchange relationships that are
highly valued.
Brodie, Hollebeek, Juric, and Ilic (2011, p. 257) define customer engage-
ment as ‘a psychological state that occurs by virtue of interactive, co-creative
customer experiences with a focal agent/object (e.g. a brand)’. A number
of researchers have studied the consequences of customers’ brand engage-
ment. Brand trust (Brodie, Ilic, Juric, & Hollebeek, 2013; Hollebeek, 2011)
and brand loyalty (Brodie et al., 2013; Casalo, Flavian, & Guinaliu, 2007)
are among these consequences. The effect of brand engagement in CBRs is
specifically prominent in online contexts. The internet provides a medium for
consumers to be active co-producers and engage in behaviours that strengthen
their relationship with the brand.

Brand Love

In today’s world, there are increased opportunities for individuals to share

their life experiences with very large social circles via the Internet. The
same opportunities are present for consumers to share their product and
brand experiences via WOM. Research shows that consumers engage in
more positive WOM when the brand is self-expressive and is a love-brand
(Carroll & Ahuvia, 2006). It is not uncommon to feel a strong love towards
certain brands such as Apple. In a similar vein, being in love with a certain
restaurant chain or longing for a pair of designer jeans are shared with
masses. These unconventional attachments are analysed under the rubric of
consumer–brand love.
The influential work of Fournier (1998) established brands as relation-
ship partners in consumer behaviour literature and research. Via in-depth
interviews, Fournier (1998) demonstrates how consumers develop relation-
ships with certain brands by anthropomorphising them. These relationships
vary in terms of their intensity and nature. CBRs may resemble marriages
of convenience, committed partnerships, arranged marriages, compart-
mentalised or circumscribed friendships, childhood buddies, best friends,
casual friendships, rebounds (avoidance-driven relationships), committed
partnerships, kinships, enslavement, dependency, enmities, flings, courtships
and secret affairs. As a supreme form of CBR, consumer–brand love is
150 EZGI MERDIN-UYGUR ET AL.

‘the degree of passionate emotional attachment a satisfied consumer has for

the brand’ (Carroll & Ahuvia, 2006, p. 81). Brand love consists of six dimen-
sions (Albert, Merunka, & Valette-Florence, 2008) such as idealisation, con-
tinuity, memories and dreams. Understanding brand love required tools and
frameworks available in the areas of social psychology and sociology explain-
ing interpersonal love.
Currently, companies can no longer control the perception of their brands.
It is also more difficult for brands to persuade and sustain their consumers. The
current state of the Turkish market is also a scene for unconventional loyalties
towards brands such as brand love. Brand love is emotion-intense and partly
irrational. In Turkey, MediaCat and Ipsos market research agencies determine
and publish the lovemarks of the year in 23 different product categories.
Most loved global brands are also lovemarks in the Turkish context. Özyer
(2015) looks at the love relationship between Turkish consumers and the love-
brand Coca-Cola. Coca-Cola has been present in the Turkish market since
1964 and there is an emotionally intense relationship with its consumers. Özyer
(2015) revealed positive significant relationships between brand love, brand
loyalty and WOM for Coca Cola among Turkish consumers. Moreover,
brand love statements fell under three categories such as brand relationship,
brand satisfaction, brand memories and dreams. Brand love, WOM and brand
loyalty relationships are also significant in the context of sports shoes in
Turkey. Moreover, variety-seeking, brand image and social self are potential
determinants of brand love (Ünal & Aydin, 2013). However, those who scored
high in terms of variety-seeking did not report high levels of brand love.
Turgut (2014) looked at the relationships between brand love, brand trust,
resistance to negative information and repurchase intentions. Consumers in
Ankara participated in this study regarding the apparel category. Measured
via a 26-item scale of Bagozzi, Batra, and Ahuvia (2013), brand love acts as a
mediator between brand trust and resistance to negative information. Brand
love also positively predicts repurchase intention. As evident, studies in the
Turkish context used various brand love scales in literature and validated them
in the Turkish context. The relationships of brand love with brand loyalty and
WOM turned out to be consistent across product categories and locations.

Methodology

Traditional economic or managerial tools of research, such as satisfaction sur-

veys or repeat purchase data, are no longer capable of grasping the emotional
realm of consumers’ private or shared experiences with brands. Therefore, we
CBR in Turkey 151

also conducted a brief qualitative exploratory research with Turkish consum-

ers. This study involved collecting the brand love narratives of consumers.
Critical incident technique (CIT) is employed in this study as an ideal method
for collecting stories. The narrative-like process of thinking in humans ena-
ble researchers to retrieve episodic brand-related information declared in the
form of stories. Thus, knowledge retrieval via verbal or written stories lets the
researcher access unconscious consumer brand knowledge stored in episodic
or implicit memory (Koll, von Wallpach, & Kreuzer, 2010). Also, storytell-
ing is useful for revealing the experiential benefits in the age of experiential
economy. The brand love stories were then subjected to thematic analysis.
The respondents were given a brief definition of brand love. Then, we
asked the consumers to narrate a specific event where they felt love for a
brand. In the second part, we asked the consumers to narrate another event
that they felt their love-brand also showed love to them as a consumer. The
participants also reported their age, socioeconomic status and gender.

Data and Results

We collected stories from a sample of 53 Turkish consumers using a com-

bination of snowball and convenience sampling. Twenty-four males and
27 females (2 unknown) signify a balanced sample in terms of gender. The
age range was between 19 and 52 years with a mean age of 27.6. The results
revealed Apple as the most loved brand (mentioned 6 times) and fashion
brands as the most loved category (mentioned 17 times). The love-brands were
mainly from three categories: 17 apparel brands mentioned by 14 people, 10
beverages or snacks brands mentioned by 1 people and 7 electronics brands
(including durable goods and mobile phones) mentioned by 13 people.
Thematic analysis is an iterative process that organises and describes a
data set in rich detail (Boyatzis, 1998). The results of iterative content analy-
ses and coding revealed 14 themes presented in Table 1 with their verbatim
statements.
The ‘nostalgia’ theme mostly included unforgettable childhood memories
with the brand. They include easily recalled peak experiences with the brand
or branded product. The theme is narrated by some consumers as follows:

When I finished high school and began college, my first pair of shoes was Converse lim-
ited collection… (Case #27, male, 23)

When I was a child I had all brands of consoles but there is one incident that I played with
that console 19 hours nonstop. (Case #1, male, 28)
152 EZGI MERDIN-UYGUR ET AL.

Table 1.  Thematic List for the Incident of Brand Love.

Theme Frequency Verbatim Statement

Nostalgia 11 There is one incident that I played 19 hours nonstop

Quality 10 …quality is a priority compared to other brands
Status 10 I met it by seeing in the hands of businessmen in movies
‘makes me feel like a boss’
Freedom of choice 9 The whole range is good and satisfactory, bitter especially ‘I can
find a whole range, including milk, yoghurt, ayran and cheese’
Dependability 8 My motorcycle never lets me down, including long-range
travels
Habit 6 I developed a hand habit with (branded) phone, got used
to touching any screen with short intervals
Economic advantage 6 …they have butterfly discounts and university-special
discounts
Addiction 6 I waited for 2 hours in front of the store for someone I know to
pass because I lacked 2 liras to buy the item I wanted. That’s
when I realised I have an emotional addiction to the brand
Aesthetics 5 …very chic design…
Functionality/utility 4 The quality of processing and resolution proves that it is
good not only from outside but also inside
Trust 4 When I know it is E (the brand) I am holding, I drink it
with trust and peace
Others’ liking 3 I feel good when my friends say ‘wow she is wearing …’
Care 3 …their attitudes towards the consumer
Advertising 3 It is the only drink I choose when I see all beverages
together, and the reason for that is their commercials
Post-purchase 4 It won my heart by post purchase services whereas all
services other brands care for the customer only until purchase
Self-defining 2 I think their style and products totally represent me

Some brands were constantly pronounced as providing (high) status and a

desirable image, which are thematised in this study as ‘seeking status and oth-
ers’ liking’. The theme is narrated by some consumers as follows:

I feel good when my friends say ‘wow she is wearing Mango’. (Case #45, female, 23)

I met that mobile phone brand by seeing in the hands of businessmen in movies … it
makes me feel like a boss.(Case #47, male, 23)

Seeking impression through brands is so high that consumers also pronounce

a price premium. Paying more for similar value is a highly desirable managerial
outcome and it happens when the person is connected to the brand with love:

Even though I know the outlet sells cheaper, I buy the exact same Lacoste shirt for a higher
price the first time I see it. I also buy a range of colors of the same shirt. (Case #52, female, 27)
CBR in Turkey 153

Another important theme is ‘addiction’/‘habit’. This theme includes recall-

ing panic moments when the love-brand is unreachable or a high amount of
disturbance when the brand is not bought or owned or found. These situa-
tions may even be accompanied by physical symptoms of separation. For
example:
When I cannot find my favourite water brand, I have to drink a minimum amount of
another brand and it feels like my throat is hurt immediately… (Case #39, female, 23)

In order to avoid overgeneralisations and to build on the existing lit-

erature, we prepared a comprehensive and comparative table. Table 2
shows a list of revealed themes together with similar themes from previous
research.
To be relevant managerially, we also asked the respondents to specifically
recall an incident when they perceived that brand showed love to them as con-
sumers. We content-analysed the moments of being loved by the brand, and
summarised the themes in Table 3, presented with their exemplary verbatim
statements.
However, it must be noted that this question provided less detailed nar-
ratives and 19 of 53 cases recall no experience of being loved by the brand.

Table 2.  A Comparison of Main Themes of Brand Love.

Themes of the Study Themes from the Literature

 1. Nostalgia Things done in past, length of use (Batra, Ahuvia, & Bagozzi, 2012)
 2. Quality
 3. Status Desired self-identity (Batra et al., 2012)
  4.  Freedom of choice
 5. Dependability
 6. Habit Long-term relationship (Batra et al., 2012)
 7. Economic advantage
 8. Addiction Frequent thoughts, anticipated separation distress (Batra et al., 2012)
Something is missing when not using (Aaker, Fournier, & Brasel, 2004)
 9. Aesthetics
10. Functionality/utility
11. Trust Certainty, confidence (Batra et al., 2012)
12.  Others’ liking Desired and current self-identity (Batra et al., 2012)
13. Care
14. Advertising
15.  Post-purchase services Positive evaluation of the brand (Ahuvia, 2005)
16. Self-defining Desired and current self-identity (Batra et al., 2012)
Integration of the brand into identity (Ahuvia, 2005)
154 EZGI MERDIN-UYGUR ET AL.

Table 3.  Thematic List for the Incident of Brand Loving Back.
Theme Frequency Verbatim Statements

Awarded loyalty 8 I had lots of free coffees with their ‘Ankara city card’
project
Dependability 7 ‘The products I bought 10 years ago are still intact’.
Feedback/communication 7 ‘They provide feedback even for the smallest issue’.
Surrounds me 5 ‘It impresses me that they are everywhere’.
Value 5 ‘They even produce copy chips so that more people
can buy and use it’.
Salespeople 4 ‘…the fun conversations I have with the staff of my
favourite station is enough in itself’.
Brand personality 3
Advertisements 3
Events 1

In some cases the love-brand is even perceived as cold and distant, representing
a ‘parasocial consumer-brand relationship’ (Aaker et al., 2004). For example:
They are producing selling-oriented advertisements for profit and image-advertisements
for loving. This is how it needs to be. (Case #39, male, 23)

The majority of consumer narratives for being loved by the brand included
marketing communication, everyday marketing plans and tactics, brand personal-
ity or brand characters. Other mentioned topics were salespeople, immediate feed-
back, continuous communication, value and care, ads and events, innovativeness
and utility. Specifically, loyalty projects, database marketing, perks and awards
make consumers feel loved by the brand. Furthermore, salespeople are important
in terms of showing love to consumers. Casual chats with the store manager, book
recommendations and friendly relationships are the ways of loving the consumer.
As a conclusion, internal branding may be a strategic tool for not only increasing
employee commitment but also increasing customer commitment. Salespeople
make up the flesh and soul of the brand in the minds of the consumers.
These findings reveal that in Turkey being a love-brand is mostly based
on nostalgia or status relationships. Traditional marketing mix tools such
as pricing or advertisements are secondary in such relationships. It is also
observed that Turkish consumers had fewer stories to tell about being loved
by the brand. Therefore, aspiring brands should take this opportunity to
show love and employ strategies based on the revealed themes. For example,
loyalty-based surprises and feedback-based relationships are two strong ways
of showing love. Aspiring love-brands should increase CRM-based activities
and surprise and love their consumers consistently and in a customised way.
CBR in Turkey 155

ONLINE CONSUMER–BRAND RELATIONSHIPS

The internet influences all aspects of human behaviour from the way in which
organisations operate to the way people spend their free time and make pur-
chases. The way we socialise has changed drastically by the use of the Internet
(Hamburger & Ben-Artzi, 2000). The internet has also changed the way we
interact with brands. Consumers can now directly contact companies and
brands through social networking sites. Social media enables brands and
consumers to connect, communicate and engage. They interact with brands
by ‘liking’ or ‘commenting’ on Facebook, ‘retweeting’ on Twitter, ‘sharing
videos’ on YouTube and ‘sharing photos’ on Instagram. Another method is
uploading the content, which is generated by customers regarding the brands.
Therefore, companies are also directing their marketing efforts towards these
media, and brands have started to set up their own brand like pages and
recruit their audience. Consumers can become ‘fans’ or ‘followers’ of brands
via SNS. Thus, social media created a new friendship terminology for CBR.
A main study area involving social media as a marketing tool is research on
brand communities. A brand community is a ‘specialised, non-­geographically
bound community, based on a structured set of social relations among admir-
ers of a brand’ (Muñiz & O’Guinn, 2001, p. 412). The last decade has seen
proliferation in online brand communities or, in other terms, in virtual brand
communities. Online brand communities can be grouped into two as con-
sumer created and company created. Social network marketing concept is
a new developing area in Turkey. Still, few companies in Turkey today use
the Internet effectively to manage their marketing activities through brand
communities. Among these communities, Gencturkcell (gnctrkcll) owned by
Turkcell, a GSM operating company, is a very successful one. Gencturkcell
is a youth club of Turkcell and offers special deals targeting younger gen-
eration. Turkcell has used social listening to improve its loyalty programme.
In 2012, it launched a Facebook campaign to elect youth ambassadors who
could represent this segment and build Turkcell’s understanding of its needs.
Five youth ambassadors were selected from 17,000 candidates. Turkcell
received thousands of comments as a result of these ambassadors’ one-to-
one social media interactions with other consumers. After implementing
ambassadors, all youth campaigns scored at the top percentile in relation to
Brand Awareness and Persuasion scores according to the Milward Brown
Link Test model. Turkcell was awarded by the Loyalty magazine in 2013 for
this programme (McIntosh, 2013). Volkswagen Beetle brand community is
an example of consumer-generated brand communities in Turkey. Beetle
is named as ‘Tosbaga’ or ‘Vosvos’ in Turkey. There are numerous Vosvos
156 EZGI MERDIN-UYGUR ET AL.

communities around the world, and there are several in Turkey. The big-
gest Turkish Vosvos Facebook community page has more than 383,000
fans. Turkish Vosvos communities organise convoys, meet-ups and fairs.
According to Alagoz, Ekici, and Islek (2011), Vosvos community mem-
bers find the brand very attractive, and are enthusiasts of the brand. They
also have a strong commitment to the brand. They wave, beep their horn
or flash their lights to other Beetle drivers as done by members in other
countries.
The purpose of online brand communities is to build stronger relation-
ships between brands and community members by engaging the members.
Online brand communities may contribute to spreading brand-related con-
tent and in this way increase the brand’s visibility, brand awareness and
brand involvement (Jahn & Kunz, 2012). Thus, increasing consumers’ level
of engagement may help to boost brand performance. Today, most of the
online brand communities are initiated on the platform of social media.
To strengthen consumers’ level of engagement, social media marketers need
to understand clients at first. Hence, it is crucial to understand consumers’
motivations to interact with brands via social media.
Several researchers have tried to understand the motives of brand inter-
actions through social media (e.g. Azar, Machado, Vacas-de-Carvalho, &
Mendes, 2016; Enginkaya & Yilmaz, 2014; Rohm, Kaltcheva, & Milne, 2013;
Sukoco & Wu, 2010). There are different types of motivations that drive con-
sumers to interact with brands on online platforms. Not all brand commu-
nity members or those who often visit a definite brand page are real ‘brand
enthusiasts’. For instance, those who are merely ‘opportunists’ may follow
brands to take advantage of promotional events, deals or exclusive offers.
Consumers may gain utilitarian and hedonic values from their participation
in brand communities (Schau, Muñiz, & Arnould, 2009). These two values
can be explained by the social identity theory (Tajfel & Turner, 1985) and the
social capital theory (Coleman, 1988). According to the social identity theory,
consumers join a brand community to fulfill the need for identification with
symbols and groups (Habibi, Laroche, & Richard, 2014). The social capital
theory predicts that consumers pursue some sort of economic value through
networking with their fellow members in the brand community (Habibi et
al., 2014). By using latent class analysis, Rohm et al. (2013) identified 10 con-
sumer motivations for engaging in brand interactions on Facebook, Twitter
and by email: fresh/timely content, entertainment/fun, product information,
promotions/incentives, browsing, engagement, customer service, branded
content, purchase, exclusivity and privacy/trust. Research conducted in
Turkey by Enginkaya and Yilmaz (2014) revealed that motivators such as
CBR in Turkey 157

‘conversation’, ‘brand affiliation’, ‘opportunity seeking’, ‘entertainment’ and

‘investigation’ lead consumers to follow brands in social media. Although
different names are used to identify motivations, most of these terms refer
to similar concepts (e.g. economic value, opportunity seeking or promotion/
incentives).
Researchers suggest that motivations of online brand community engage-
ment may differ with the type of brand community (Lee, Kim, & Kim, 2011,
2012). When experiencing consumer-created brand communities, consumers
expect intrinsic motives of altruism whereas when experiencing company-­
created brand communities they expect extrinsic motives of profit exploitation,
which in turn result from different levels of eWOM. In a similar way, Sung,
Kim, Kwon, and Moon (2010) found that consumers’ community participation
intention was related to different motives depending on the community type.
That is, consumers’ consumer-generated community participation intention
was significantly related to the motives of brand likability and interpersonal
utility (e.g. social relationship) whereas their marketer-generated community
participation intention was significantly associated with the motives of brand
likability, convenience-seeking and incentive-seeking (e.g. coupon).
Branded mobile applications can also help the companies to market their
brands successfully. Zhao and Balague (2015) identified five types of branded
apps. These are listed as tool-, game-, social-, m-commerce and design-centric
apps. Perhaps, the most important goal of branded apps is communication.
Branded apps can enhance brand engagement and increase brand loyalty.
Few Turkish brands developed their apps to provide users with utility. These
tool-centric apps are designed to assist consumers in using/buying products.
For example, Arçelik, Beko and Vestel have smart remote apps which allow
consumers to control their Smart interactive TVs by using smart phones or
tablets. Game-centric apps are also created by Turkish brands. For instance,
Pinar, a food brand, has created an app for kids named as ‘Pınar Kido Fun
World’. However, to our knowledge there isn’t any social-centric app devel-
oped by Turkish companies. Social-centric apps are more functional in fos-
tering brand communities as they tend to use social features such as rating,
sharing and commenting. These types of apps also allow users to communi-
cate brand image to their social circles via social media. Thus, brands may
use social-centric apps to increase brand awareness and create positive image.
Not all the consumer-generated brand communities are formed in favour
of brands. The antithesis of a brand community is an anti-brand commu-
nity. In the same way brand communities are formed around commonly
used brands and anti-brand communities are formed around common aver-
sions towards brands (Hollenbeck & Zinkhan, 2006). Anti-brand activists
158 EZGI MERDIN-UYGUR ET AL.

seek radical economic, political and cultural changes in relation to brands.

According to Hollenbeck and Zinkhan (2010), these consumers are moti-
vated to negotiate the meaning of brands in order to seek a new identity, to
gain autonomy in the marketplace, to radicalise modernised values and to
develop personally by transforming the self. Examples of anti-brand commu-
nities include anti-Starbucks (Thompson & Arsel, 2004), anti-Walmart and
anti-McDonald’s (Hollenbeck & Zinkhan, 2006).
Anti-brand actions are widely observed as negative WOM in Turkey. For
instance, at eksisozluk.com, at least for a few times a week, a title ‘we are
boycotting brand X …’ or ‘brand X scandal’ becomes so popular that it
becomes a hot topic. Eksisozluk is a popular virtual community in Turkey
which provides information, a source of learning, entertainment and sociali-
sation (Soylu, 2009). It is a user-generated content website and has a collabo-
rative hypertext dictionary structure which provides personal definitions from
the users of the community in Turkish (Gürel & Yakin, 2007). At eksisozluk,
each concept/entity/condition is called a ‘title’ and the definitions written for
a specific title are called ‘entries’. As of April 10, 2017, there were 115,000
entries at eksisozluk, including the term ‘boycott’. These negative entries
inevitably influence brand image. Therefore, anti-brand activism requires
close attention from brand managers to prevent brand image to be damaged.
By monitoring and understanding, the negativity generated by such entries
can be directed into a more positive form of communication.

CONCLUSION
In this chapter, we analysed brand relationships from both global and local –
Turkish – perspective. It is observed that most research focused on borrowing
scales and concepts from the literature and using them in the Turkish context
to show and validate the expected relationships in Turkey. There is limited
research depicting unique characteristics of brand relationships in the con-
text of Turkey. However, this chapter is expected to provide guidance in terms
of measuring and managing brands’ relationships with their consumers by
fine-tuning branding strategies in the Turkish context.
When the most successful and most loved brands in Turkey were analysed,
two patterns of success emerged. First, locally iconic brands that originate
from Turkey are successful. These locally iconic brands are original, and are
based on the local values, necessities and/or traditions of this country. Second,
globally iconic brands that adapt themselves locally are successful in Turkey.
CBR in Turkey 159

Further discussions on the topic can be made via a cultural branding per-
spective (Cayla & Arnould, 2008). Cultural branding is a culturally relative
and contextually sensitive approach to international branding based on brand
mythologies (Cayla & Arnould, 2008). Global brands should be aware that
their marketing communication may not necessarily work everywhere as
they intend it to. Moreover, ‘experiential categories that consumers create for
brands are not necessarily the same as the categories imposed by the market-
ers in charge of brand management’ (Fournier, 1998, p. 367). For example,
global brands in China may be perceived as liberators and instruments of
democracy in their country. Research conducted with an Albanian sample
living in different countries also revealed that brands from their home coun-
try play three roles. These consumers see an Albanian brand as a friend from
home, as a family member and an ambassador of their home culture (Dino &
Cappellini, 2014). In a similar vein, there is a limited number of research that
looks at Turkish brands’ communication in Germany and the Netherlands
where Turkish immigrant populations live. The future research may analyse
CBRs between consumers living outside of their home country with brands
from their home category.
We also briefly analysed the current literature on major outcomes of suc-
cessful brand relationships. These positive outcomes are brand trust, brand
loyalty and brand engagement. Apart from local brands, Turkish people are
also loyal to brands originating from other countries, such as Coca-Cola.
However, research is lacking in terms of analysing loyalty and trust towards
Turkish brands in other countries. The future research may analyse brand loy-
alty and engagement towards Turkish brands in other countries. For example,
Saydan (2013) performed face-to-face interviews with British consumers at
several locations in Coventry in the United Kingdom regarding their percep-
tions of the Turkish brand Beko. The results signify a very strong effect of
country of origin in addition to rational determinants of brand loyalty.
The section on brand love sheds light on brand love themes. Generally, it is
observed that the respondents focussed on tangible qualities of the lovemark
or concrete events lived with the lovemark rather than focusing on their emo-
tions. When analysed deeper, it is observed that the respondents who did not
elaborate on how their lovemarks react actually reported long and detailed
falling in love stories themselves. Apart from the revealed themes, we also
see that lovemarks in Turkey lack ways of showing love to their consum-
ers. We conclude with various recommendations and directions for the future
research. For example, longitudinal narrative collection across life cycles
would be of value to the literature. Most data in the Turkish studies comes
from student samples and relatively very young samples due to convenience.
160 EZGI MERDIN-UYGUR ET AL.

Even though our research sample covered an age range of 19 to 52 years, it is

not enough to comment on differences based on age. Like almost all types of
consumer behaviour, lovemarks are expected to differ according to different
age groups. Moreover, one may observe an evolving CBR over time with the
same consumer and the same lovemark. For example, as consumers age, they
may seek more feedback and effort from the brand they love. As nostalgia
with the brand is the most important theme in brand love stories, the intensity
is expected to increase with age.
Distinct but related concepts that are discussed within the CBR para-
digm are brand avoidance, brand rejection, brand jealousy or brand divorce.
Research delving into these concepts may shed more light on the dark sides
of brand love. For example, recently, Sussan, Hall, and Meamber (2012)
introduced the concept of brand divorce via introspection. Departing from
Starbucks, which was once a love-brand, is construed as a vital decision of
life that affects the person deeply. The authors claim that the brand divorce
was stemming from the increased practice of meditation and totally depend-
ing on the consumer, not on the brand. However, considering Turkey, we
also witness increased emphasis on meditation, well-being, yoga and organic
consumption patterns. These changing trends may also bring with it various
brand divorces, rejections or avoidance.
Ironically, we also witness that recent research focusses on very intense
forms of brand love called brand passion or brand romance. Brand passion
is a very strong CBR that results in strong emotional attachment with many
influences on behaviour (Bauer, Heinrich, & Martin, 2007). Brand romance,
on the other hand, is characterised by high arousal and warm feelings. The
cognition and thought processes of the consumer are dominated by brand-
related thoughts in brand romance (Patwardhan & Balasubramanian, 2011).
Methodologically, the future research may utilise alternative methods with
more explanatory power. For example, in-depth interviews could reveal fur-
ther information regarding the specific nature of consumer–brand love. The
interview data can also be collected from brand community members who
are the most relevant groups to investigate passionate relationships with a
certain brand.
One step further from loving the brand is the concept of forming brand
communities. These communities made up by fans of lovemarks are impor-
tant phenomena of branding research. Online brand communities enable
brand fans from all over the world to unite regardless of geographies. We
provided examples from both local lovemarks (i.e. gnctrkcll of the mobile
phone operator Turkcell) as well as Turkish extensions of global brand com-
munities (i.e. VosVos team of Volkswagen). However, offline or online brand
CBR in Turkey 161

communities are not always beneficial for the brands. For example, brand
communities literature is evolving towards anti-brand communities. This
new form of consumer activism on the Internet is a signature of resisting
globalism and therefore powerful global brands (Hollenbeck & Zinkhan,
2006). Since there are very strong local and global brands in the Turkish mar-
ketplace, global brands should be aware of these rising communities. The
examples we analysed in the US marketplace are rising anti-Starbucks and
anti-McDonald’s. Such brands are also important globally iconic brands in
the Turkish context. Therefore, brand and marketing management of such
firms should consider addressing the concerns and needs of this new type of
consumer communities.

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CHAPTER 4.2
COMPETITIVE DYNAMICS IN
TURKEY

Muhterem Şebnem Ensari

ABSTRACT

As a result of accelerating globalisation, competitive dynamics of the world

are rapidly changing. Nowadays, both small and large enterprises exist in
the same arena, which was not possible before. Similarly, emerging coun-
tries have become both markets and competitors for developed countries.
In this chapter, competitive dynamics of Turkey, as an emerging market,
will be analysed by evaluating export, import and production volume of
the main sectors in Turkey. The concept of competitive positioning and
also competitive positioning in emerging markets will be explained. Cases
from different industries will be included in order to comprehend the big
picture, to understand the competitive dynamics in Turkey and to show the
roadmap in management and marketing of these companies. This chapter
is planned to be a helpful tool to guide entrepreneurs and managers working
in and with Turkish companies to survive and market their products in the
Turkish market.
Keywords: Survival strategies; marketing strategies; competition;
emerging countries

Marketing Management in Turkey, 165–198

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181013
165
166 MUHTEREM ŞEBNEM ENSARI

INTRODUCTION
Every champion was once a contender that refused to give up’.
–Sylvester Stallone from Rocky

In the last 50 years, accelerating globalisation has changed the world very
quickly. Especially, with the emergence of multinational corporations (MNCs)
in the 1970s, multinational brands started to produce their products and also
market these products to the customers of emerging markets (EMs). From
that point until now, the related literature has two eras: first is focussing on
entry strategies of MNCs to EMs, and the second is focussing on the sur-
vival and multi-nationalisation strategies of local companies in EMs. In the
first stage, many authors such as Arnold and Quelch (1998) thought of EMs
as growth opportunities for MNCs, and in related literature many articles
focussed on the classification of entering strategies to EMs. As time passed,
this process caused two changes in local companies in EMs, both large and
Small and medium-sized enterprises (SMEs): Firstly, they faced multina-
tional giant companies in their local markets. This means the local market
became more competitive in terms of the number of competitors and also
the number of new products. Secondly, they learned how to become an MNC
and local companies started to compete with multinational and local compa-
nies in different countries.
Kotler (2005) addresses a five-step process in decision-making of interna-
tionalisation: the first step is the decision of internationalisation or not, the
second step is a decision related to the market/markets selection, the third
step is a decision related to the way of entrance to new market/markets, the
fourth step is the decision of the marketing plan and the fifth and last deci-
sion is related to the marketing organisation. Globalisation has changed the
world with these steps; especially the importance of making a global market-
ing plan is the key for the success of companies. After the decision of inter-
nationalisation, whether the company is a multinational or a local company,
which wants to become international, it is faced with a question of standardi-
sation of 4Ps, marketing or adaptation of 4Ps in each market. Levitt (1983)
suggested that globalisation makes it possible to take standard product all
around the world; this is easily the less costly way of internationalisation. In
some way, it is true that globalisation makes us eat sushi in plazas far away
from the Far East; on the other hand, these dynamics of globalization have
been changing lately. On the other hand, Kotler (2005) recommends the adap-
tation of product specifications, colour, advertisement, brand name, material,
media, labelling, price, boxing and sales promotion when a company decides
Competitive Dynamics in Turkey 167

to market their product in a different country. Kotler (2005) suggested three

different marketing strategies for a product: standard production, product
adaptation and development of a new product; two promotion strategies:
standard promotion and promotion adaptation; three different pricing strat-
egies: standard pricing, cost structured pricing and payment-structured pric-
ing; and consideration of three different channels: international marketing
centres, channels between the countries and channels in foreign countries.
Kotler (2005) defined that strategy of standardisation has succeeded in a few
areas such as machine tools and consumer electronics. If companies see the
world as their backyard because of globalisation, they still need to focus on
the domestic needs of their new market. There are some very good examples
of customisation of Turkish companies trying to globalise and also for global
companies who want to enter or sustain their position in Turkish markets.
One example of such a local company who successfully markets its products
to the world is Mavi. The success story of this international jean company
with standard products is impossible now, with a new customer profile that
wants customisation of production according to their domestic needs, and
background and physical differences. That is why Mavi produces different
designs for America, Europe and Turkish people, and there were youngsters
wearing Mavi on the cover page of Time magazine, with the name of millen-
nials in 2013 (Mavi, 2017). That is why, HSBC in 2002 and Coca Cola a num-
ber of times conducted an advertising campaign highlighting local values of
Turkish customers.
In the related literature, the competition and environment relationship
was highly influenced by the studies of Porter (1979). Competition can
be affected by external and internal environments. External environment
includes macro items such as political, economic, socio-cultural, techno-
logical, environmental and legal environment. Porter (1990), in his paper
‘Competitive Advantage of the Nations’ explained factors, demands, related
and supporting industries and firm structure as determinants of national
competitive advantage. In this model, government and chance also have a
role in affecting the success of company’s competition level. At first glance,
it is clear to say that Turkey, as an EM, has a very competitive position
in many industries, since it has many advantages because of factors and
demands such as its geographic position, young work force and customer
profile, natural resources and its flora. When we consider industrialisation,
Turkey is an emerging country with high possibility of growth, despite
many political issues. Before the declaration of the Republic, there were
few industries. Industrialisation started after Turkey was declared a repub-
lic, but it took time to open its market to global economies. Micro items
168 MUHTEREM ŞEBNEM ENSARI

are related to each specific sector such as rivalry among existing competitors,
threat of entrants, bargaining power of buyers, threat of substitute and bar-
gaining power of suppliers (Porter, 1979). Internal environment is related to
company’s assets and competencies such as organisational culture, corporate
image, plant and machinery.
These dynamic structures and survival strategies of companies in EMs
drew the attention of Dawar and Frost (1999) in an article titled ‘Competing
with Giants: Survival Strategies for Local Companies in Emerging Markets’.
They claimed that two important dimensions, which are the strength of glo-
balisation pressures in an industry and the company’s transferable assets, can
guide a company’s strategic thinking. They put forward that in every industry,
globalisation pressure is different; according to the level of globalisation and
the degree of transferability of their assets, companies decide to stay local
with dodger and defender strategies or become multinational with contender
and extender strategies. From this inspiring point of view, we found many
opportunities to see examples of such strategies from EMs. For example,
Ramamurti and Singh (2009) and Ramamurti (2012) studied the examples
and labels, such as Huawei, Haier and Chery, and explained the extender strat-
egies of companies from EMs. Ensari (2016) conducted a study of Turkey’s
220 companies from textile and apparel and food and beverage sectors to
see strategic differences in different global pressure levels. As a result of this
study, Ensari (2016) built a model for the strategic choices of SMEs operating
in Turkey (as an example to emerging economies) regarding the factors affect-
ing this process, and analysed reasons of differences between recommended
and existing strategies.
This chapter focusses on drawing a picture of competition in sectors of
production, and recommends a strategy formulation and building market-
ing plan for the local companies of Turkey. The chapter is organised into
four parts. The first part focusses on understanding competitive dynamics in
EMs, since Turkey is an EM. The second part explains the current dynamics
in production sectors without analysing service sectors. In these sections, in
order to talk about competitive dynamics of Turkey, first the strategy for-
mulation in emerging countries in general is explained, and then indicators
of macro competitive environment in Turkey and competition in the main
sectors of production are analysed separately. The third part gives some
cases, including implementation of survival strategies and a suitable market-
ing plan conducted by Turkish companies. The chapter concludes with some
recommendations for the companies to survive and maintain their existence
in the long run.
Competitive Dynamics in Turkey 169

COMPETITION AND EMERGING MARKETS

In this part of the chapter, first the concept of EMs is explained, then the
competitive positioning strategies to enter EMs and survival strategies for
local companies in EMs are discussed.

Understanding Dynamics of Emerging Markets

The term ‘emerging market’ or EM, which was coined in 1981 by Antoine
W. Van Agtmael of the International Finance Corporation of the World
Bank, is defined as an economy with low to middle per capita income
(Investopedia, 2017). Nowadays, many authors think that EMs have
become so important that they are called the growth engines of the world
(Kotabe & Kothari, 2016; Raghunath & Rose, 2017; Sinha & Sheth, 2017).
On the other hand, they point out the differences between EMs and the
rest of the world. EMs have different specifications from industrialised
markets such as heterogeneity, socio-political governance, chronic short-
age of resources, unbranded competition and inadequate infrastructure
(Sheth, 2011).

(a) Heterogeneity: Sheth (2011) defines market heterogeneity as the vari-

ability in scale and consumption patterns among and across consumers
in country markets. In the context of EMs, there are sharp differences
between urban and rural households.
(b) Socio-political governance: In EMs, institutions such as religion,
government, business groups and nongovernmental organisations affect
the market conditions more than competition itself. In most of these
markets, governments have some instructions and act like a monopoly
company.
(c) Chronic shortage of resources: Emerging countries mostly experience
shortage of power, raw materials, lack of skill-based labour which pre-
vents effective production.
(d) Unbranded competition: Most of the consumption in EMs is of
unbranded products and services because of the purchasing power of
the customers, wide acceptance of second-hand consumption and barter
exchange.
(e) Inadequate infrastructure: Lack of communication, energy distribution,
logistics and storage are very common specifications of EMs.
170 MUHTEREM ŞEBNEM ENSARI

The effect of marketing mix on the sales volume of EMs is also different
from that of developed markets. Bahadir, Bharadwaj, and Srivastava (2015)
found that the most important item of the marketing mix in EMs is the dis-
tribution channel, since in many EMs consumers are yet to try the products
that have been marketed in developed markets. They also found that price is
not the most important marketing tool; in fact, advertising and innovation
are more effective for the purchasing decision of EMs.

The Need for New Competitive Positioning to Market Products

in Emerging Markets

Hooley, Broderick, and Möller (1998) define the term competitive position-
ing in the following words:

The competitive positioning a firm chooses to occupy is a combination of its choice of

target market and the differential advantage it is seeking to create as a means of secur-
ing that market and lists basic positioning strategies as low price, superior quality, rapid
innovation, superior service, differentiated benefits, tailored offerings.

There are two different approaches creating advantage in the related lit-
erature. The resource-based perspective emerged to counter the determinism
of the Porterian view of competition (Porter, 1980) in which the firm seeks
to explain sustainable competitive advantage through the rent-earning capa-
bility of using existing resources, while the marketing paradigm stresses the
need for external market orientation to achieve competitive success (Hooley,
Greenley, Fahy, & Cadogan, 2001). The competition position of a market is a
combination of price charged, quality delivered, service provided, degree of
innovation offered, delivery of specific features and degree of customisation
(Hooley et al., 2001). With this explanation, it is more related to understand-
ing the needs of customers and market.
Since EMs have different specifications in the market, foreign companies
who want to market their product in these EMs need to take a new com-
petitive position by considering the core assumptions of marketing, the core
guiding strategy concepts and marketing policy and practice. Sheth (2011)
offers to change marketing strategy from market orientation to market devel-
opment, from relationship marketing to institutional marketing, for customer
satisfaction to convert nonusers to users and marketing practices from glo-
calisation to fusion, from diffusion of innovation to democratisation of inno-
vation and country of origin advantage to nation brand advantage. Bahadir
et al. (2015) found the moderating role of the market characteristics of
Competitive Dynamics in Turkey 171

EMs on the relationship between the elements of marketing mix and brand
sales. Vila, Bharadwaj, and Bahadir (2015) found that exploitation- and
exploration-oriented marketing strategies need to fit the environment of EMs,
since their findings provide a better understanding of the interaction between
marketing strategies and market environment. According to their study, an
exploration-oriented marketing strategy (development of new products), and
retail investments, an exploitation-oriented marketing strategy (retail invest-
ment), emerge as significant moderators of the negative effect created in mar-
ket environment in EMs.
Sinha and Sheth (2017) similarly recommend reducing the negative impact
of the EM characteristics which might increase the ratio of first-time users
to nonusers, thereby resulting in large-scale market expansion. In order to do
this, they recommended eight marketing strategies rooted in the 4 A’s frame-
work: Affordability (through democratizing the offer, Upscaling the offer),
Accessibility (through managing reach or reinventing reach), Acceptability
(through cultural fusion or functional fusion), Awareness (through building
brand identity or engaging stakeholders).
On the other hand, because of the different dynamics of EMs, local com-
panies who want to be multinational need different formulations for inter-
nationalisation. Dawar and Frost (1999) suggested that the formulation of
a strategy in an emerging country is different in a developed country, since
competitive dynamics are different in emerging countries.

The Need for Strategy Formulation of Local Companies:

Staying Local or Being a Part of Global Markets?

Dawar and Frost Model

According to Dawar and Frost (1999), local businesses in emerging countries
are obliged to take a stand against international competitors depending on
the pressure of global competition in their sector and the transferability of
their competitive assets. In their model, to compete with giants, they sug-
gested taking into consideration the following two criteria to determine the
competition strategies of local businesses:

1. Global competition pressure: In spite of competition in many industries

after globalisation, it is observed that the pressure on businesses in some
industries is much more intense. In some industries, the cost of product
development, marketing and distribution channels required to enter is very
much higher than other markets. These sectors can be classified as products
172 MUHTEREM ŞEBNEM ENSARI

based on global standards such as aircraft and car parts manufacturers, tele­
communication providers and products based on close relationships with
the priorities and expectations of local customers such as food, beverage
and banking. Basically, it can be said that the pressure of global competi-
tion for standard products is high and the pressure of global competition
for products of local needs is low.
2. Transferability of competitive assets: In the second phase, it is to be seen
whether the elements that create competitive advantage can be used in
the case of extending abroad. First of all, it is better to understand the
concept of competitive assets – core competence. Hamel and Prahaland
(1990) stated that a company can be expressed by what it knew, not what
by did, and they defined the concept as follows: ‘A core competence
provides a competitive advantage through being competitively unique
and making a contribution to customer value or cost’. De Bono (1995)
introduced us to the term ‘sur-petition’, which means creating your own
race by creating value to your customers, since he believes competition
on product/service, quality and differentiation are no longer enough.
Grant (1991), in his paper ‘The Resource-Based Theory of Competitive
Advantage’ states that implications for strategy formulation draw atten-
tion to the resources and skills that create competitive advantage to busi-
nesses. Grant (1991), defined the role of resources and skills as a driving
force for business strategies and as a fundamental source of business
profitability.

Barney (1986) suggested organisational culture, and Aaker (1989) and

Srivastava, Fahey, and Christensen (2001) suggested marketing activities
and Woodruff (1997) suggested customer value, customer value learn-
ing and related skills as a sustained competitive advantage. Argote and
Ingram (2000) support that creation and transfer of knowledge is a basis
of competitive advantage in firms. Klein and Wöcke (2007) suggest that
firm-specific, or ownership advantages derive unique firm attributes of
size, monopoly, power, intangible assets or superior resource usage and
capability.
For example, a large distribution network for an operator would create
competitive advantage, but for overseas operations this advantage is no
longer transferable. Furthermore, having a vast knowledge base of local
clients may not be advantageous for overseas operations. Product quality,
research and development skills, marketing skills, low-cost production and
many other elements can create a significant competitive advantage for
overseas operations (Aaker, 1989; Miles & Covin, 2000; Strivastava, 2001).
Competitive Dynamics in Turkey 173

Clearly, it is observed that competitive assets that can create privileges

for businesses in every sector are different. Knowledge of the workforce,
information, copyrights and systems in labour-intensive industries and
machines and the facilities in capital-intensive industries are the elements
that would allow businesses to come to the fore against their competitors.
Dawar and Frost (1999) argue that emerging economies can adopt the fol-
lowing four strategies, taking two variables into account.
Dodgers: ‘Industries where pressures to globalise are strong and managers
will not be able to simply build on their company’s local assets – they will
have to think and rethink their business model’ (Dawar & Frost, 1999, p. 125).
These businesses do not have the freedom to act alone in the international
market, so the dodger strategy is recommended for the companies in this situ-
ation. In order to avoid the pressure of strong competition,

• They can form a ‘joint venture’ with a stronger foreign operator, or

• They can sell their products to an international business as a last resort.
• These enterprises, however, can redefine their core business, and in doing so
they can focus on the markets with less international competition.
• They may point to complementary products of international competitors.
• Finally, they can shift the value chain to the advantages of being local
(such as superior local distribution network, after-sales service linked to
local students).

Contenders: While the sectors with intense global competition are

strengthening strong local businesses in emerging countries, others can be
completely eliminated from the local market. In emerging countries, busi-
nesses operating in sectors with strong global competition have the opportu-
nity to be further strengthened if their competitive assets can be transferred.
Klein and Wöcke (2007) proposed that the success of globalisation in EMs is
closely related to the firm’s specific advantages rather than the country’s spe-
cific advantages. They found that emerging MNEs succeeding abroad were
based on skills honed at home, the core skills’ ownership has been trans-
ferred successfully in a variety of countries. As a result, during the interna-
tionalisation process of a local company in an EM, the business is primarily
focussed on developing its skills and resources to compete with international
competitors. Especially, it must develop itself in research and development,
production and management. Buckley and Ghauri (1999) suggest that SMEs
should invest primarily in exporting strategy to enter new international mar-
kets so that they have the skills and resources to present in the new market.
Also, in this process, it is advisable to focus on a specific niche.
174 MUHTEREM ŞEBNEM ENSARI

Local businesses can reconfigure themselves to become gigantic businesses

by upgrading their skills to compete more effectively with global competitors,
one step further than operating exporters on international markets. Swein
and Wei (2009) cautioned the importance of reaching the standards of inter-
national competitors for being a contender, and attached importance to qual-
ity, human resources, process and system development and research by the
case of Haier.
Defenders: In an emerging country, if in an industry, global competitive
pressures are weak and competitive assets are not transferable, then the
entity may maintain its presence in the domestic sector against interna-
tional competition. Defenders do not have the tendency to reach all cus-
tomers or to imitate international businesses. These businesses prefer to
ignore customers who are seeking global brands, focussing on customers
who are concerned with local needs. ‘For defenders, the key to success is to
concentrate on the advantages they enjoy in their home market’ (Dawar &
Frost, 1999, p. 122).
Defenders’ competitive assets in an emerging country might be summa-
rised as follows:

• Lowest cost advantage compared to international businesses (Dawar &

Frost, 1999; Slater & Olson, 2000).
• Knowledge advantage more than global competitors about local needs,
pleasures, customs and traditions (Wu & Pangarkar, 2006).
• Guiding informal relationships (Peng, 2001).
Extenders: This strategy evolves the opportunity to open to international
markets to operate in the industries where pressure of global competition is
weak if competitive assets of the local business can be transferred. Under
these circumstances, businesses can follow three routes: local business may
target similar local markets in the same country which are not reached previ-
ously. Since global competition is not intense, it focusses on similar interna-
tional markets, thanks to the skills developed in the local market. Similarly,
international markets have the same conditions (Dawar & Frost, 1999, p. 124)
such as customer preferences, geographical proximity, distribution channels
and state practices. They can be opened to markets where they can use their
existing advantages in developed countries.
Ramamurti and Singh (2009) emphasise the importance of paddle intensi-
fication for similar features at this point, and define such businesses as ‘local
optimisers’. They argued that a low-price vehicle designed for India’s bad
roads could be sold in many low-income countries with similar characteristics,
Competitive Dynamics in Turkey 175

and the products and services designed for emerging countries would not be
equally successful in developed countries without similar features. Ramamurti
(2012) emphasises that local businesses in emerging economies are better able
to get to know local customers and are more successful than international
competitors, thanks to good government relations. He explains how these
businesses are becoming global brands from being local SMEs by bringing
their international competition and experience to their own countries to simi-
lar international markets and then to global markets, such as Huawei, Haier
and Chery.
A Map to Survival of Domestic Companies in Emerging Countries: As far
as we know, globalisation changed dynamics between the countries at macro
level and between the companies at micro level. Fig. 1 proposed by Ensari
(2016) indicates the roadmap for a long-term existence of local companies
in EMs.

– The first step is to determine the industry’s global competitive pressure.

– The second step is questioning the competitive assets that create advan-
tage in the local market. If there is no advantage then it is to be explored
whether the company focusses to improve the customer relations manage-
ment, distribution, service network in the local market or not.
– The third step is to explore whether the international transferability of
competitive advantages is possible or not, and whether there are competi-
tive advantages in the local market. Businesses can transfer their advan-
tages, such as product quality, cost advantage and innovation, acquired
internationally to the local market. Depending on the structure of the tar-
get market, advantages, such as customer relations, supplier relations and
label popularity, can also be transferred internationally.

UNDERSTANDING CURRENT DYNAMICS

OF COMPETITION IN TURKEY AS
AN EMERGING MARKET
Turkey is an attractive market since its outward open industrialisation strat-
egy in the beginning of the 1980s was conducted. Moreover, the number of
local MNCs started to increase with the industrialisation strategy aimed at
economic integration starting from the mid-1990s (Türkkan, 2001, p. 105).
With these changes, Turkey started to become more attractive for global com-
panies, and also local companies became more competitive for global ones.
 Dodger
No
(Joint, Sale)

INTENSE Competitive Dodger

No (Focus on new areas of
Assets
supply chain
International Distribution, service,
Transfer of customer services etc.)
Yes Competitive
Asset is
Contender
Possible?
(Expand to global
market, focus on niche,
Yes use the competitive
advantages of export)
Global
Competitive If Recommended
Defender
Pressure Strategy And Current
(Focus on local needs, use the
No Strategy Are Different,
advantages of being local
Question The Level Of
Global Competitive
Pressure?
No

International
LOW Transfer of
Competitive
Competitive
Assets
Yes Asset is
Possible? Extender
(Expand to markets
with similar features
Yes or do global activities
without making any
distinctions)

Fig. 1.  The Formulation of Strategy Determination Stages for the Local Business in Emerging Markets.
176 MUHTEREM ŞEBNEM ENSARI

Source: Ensari (2016).

Competitive Dynamics in Turkey 177

Turkey is accepted as one of the emerging countries. The country has

some common characteristics of EMs as Sheth (2011) has suggested,
such as heterogeneity of the market, dominancy of governmental, non-
governmental and religious institutions and organisations, acute shortage
of resources, especially skilled labour force and investment capital, and
inadequate infrastructure. On the other hand, Turkey has many national
competitive advantages that can affect demand and supply conditions.
For example:
– Young population: The average age of population is important in deter-
mining factors and demand conditions. Turkey has a very young popula-
tion with regard to the rest of the world. According to the address-based
population record system, at the end of 2016, the population of Turkey
was 79,810,000, the working population in the age group of 15–64 years
was 54,237,586 ( which is 68% of all population).
– Low fees: National per capita income in 2017 was USD 9,437 whereas
according to the World Bank (2017) GDP per capita report, it was USD
39,944 for high-income countries, USD 2,000–7,953 for middle-income
countries and USD 617 for low-income countries. On the other hand,
labour force participation rate was 51.8% (TCMB, 2017) whereas it is more
than 70% in OECD countries (OECD, 2017b). Unemployment rate was
12.6% whereas it was 6.2% of labour force in OECD countries.
– Extensive natural resources: Turkey has favourable geographical condi-
tions and climate with rich soil structure and biological diversity; agricul-
ture is one of its leading sectors. Turkey has a wide range of agricultural
products, according to the data of Food and Agriculture Organization of
the United Nations (FAO, 2013). Top 10 commodities, according to net
production value in Turkey in 2013, were milk, whole fresh cow, toma-
toes, wheat, meat indigenous, chicken, grapes, meat indigenous-cattle,
olives, apples, cotton lint, chilies and peppers green (FAO, 2013). Turkey is
the 10th country among 132 countries in the world in mining production
(Taka, 2016). The country’s mineral resource base includes gold, copper,
iron, mercury, silver and coal; on the other hand, the complex geologic
structure of Turkey makes it more difficult for mine exploration and min-
ing facilities.
178 MUHTEREM ŞEBNEM ENSARI

– Government regulations: Application for the European Union (EU) full

membership in 1987, entry of the Customs Union with the EU in 1995 and
the membership of the World Trade Organization are the important devel-
opments for Turkey. In this context, as a requirement of the Customs Union,
the adoption of customs tariffs in the trade of industrial goods with the EU
and the adoption of common customs tariff against Third World countries,
the harmonisation of the incentive system with the EU, the introduction of
more active protection of intellectual and industrial property rights, policy
changes that will significantly affect industrialisation, such as the adoption
of preventive measures against unfair competition, have been made in addi-
tion to the establishment of a deterrent institutional structure (Şenses &
Taymaz, 2003, p. 2).

These advantages give local companies a chance to show their presence in

international arena and attract MNCs to enter the local market. On the other
hand, it is necessary to examine micro environments in each and every indus-
try to understand their competitive dynamics in a better way.

Competition in Different Sectors of Turkey

According to the Dawar and Frost typology (1999), in order to survive in

emerging economies, you need to know two dimensions of competition: the
global competition level in a sector, and transferability of your competitive
assets.

Global Competitive Pressure in Different Sectors

In fact, company owners of each firm have an idea about the global competi-
tion pressure in their sector. Having knowledge of export and import volumes
in these industries is a more helpful indicator to understand the big picture
of competitive pressure. According to the International Standard Industrial
Classification of All Economic Activities, Rev. 4, commodities produced in
a country are classified from A to E. According to this classification, it is
possible to analyse competition in these industries by looking at the trend in
export, import and production volumes.
In Table 1, the export and import performance of Turkey by ISIC clas-
sification from 1996–2016 is summarised by showing the export and import
volume of the country. According to Table 3, the export volume of agri-
culture, forestry and fishing products increased by 166%, the volume of
Competitive Dynamics in Turkey 179

Table 1.  Export and Import Volume of Turkey from 1996–2016 by

Economic Activity (Million US$).
1996 1996 2006 2006 2016 2016 % %
Exports Imports Exports Imports Exports Imports Exports Imports

Agriculture 2.179 2.167 3.611 2.934 5.810 7.097 166 227

Manufacturing 20.909 40.300 81.516 132.430 136.287 186.464 551 362
industry
Service 135 1.158 407 4.210 432 5.055 220 336
industry
Total 23.224 43.626 85.534 139.576 142.530 198.616 513 355

Source: Turkish Statistical Institute (2017). Export and Import by ISIC (Data File).

manufacturing products increased by 551% and service industry increased

by 220%. On the other hand, the import volume of agriculture, forestry and
fishing products increased by 227%, the volume of manufacturing products
increased by 362%, and that of the service industry increased by 336%.
The data given in Table 2 reveals that in the manufactured commodity
industry, the amount of total import was 64% higher than the local produc-
tion, which shows that pressure of global competition is extremely high in the
local market.
Inflow and outflow of foreign direct investments to the country by sectors
between 2007 and 2016 are shown in figure 2. Before the last global economic
crises in 2008, the highest cash inflow was entered for the country. The trend
in both cash inflow and outflow indicates that both service and manufactur-
ing sectors are more attractive than other sectors.
Table 2.  Export–Import and Production Volume of the Country
by Economic Activities in 2015.
Production

Million Million
US$ US$
Agriculture 45.650 Export 6.124
Import 7.264
Manufacturing industry 130.824 Export 137.188
Import 194.430
Service industry 407.024 Export 451
Import 5.214
Total 583.499 Export 142.544
Import 207.234

Source: Republic of Turkey Ministry of Development (2017).

180 MUHTEREM ŞEBNEM ENSARI

Fig. 2.  Foreign Direct Investment by Sectors (in millions US$).  Source: Republic
of Turkey Ministry of Development (2017).

All the data which are shown in tables 1 and 2 and Figure 2 clearly reflects
that local companies from different sectors have been facing global competi-
tors increasingly both inside and outside of Turkey in the last 20 years. Every
industry has to analyse more deeply in order to understand the dynamics of
the competition as Porter (1990) suggested by looking at factors, demand and
related supporting industries.

Agriculture Industry
According to the data of the Turkish Statistical Institute, the production of
agriculture, forestry and fishing has increased by 15 times in the last 20 years
(from TL 8.756 million to TL 147.156 million); on the other hand, Fig. 3
indicates that the share of agriculture sector in gross domestic production
decreased to 7.5% from 12.5%. In this sector, both export and import volume
increased by about 167% and 227% respectively. Additionally, cash inflow
increased by two times and cash outflow increased by three times in last 10
years. These figures reveal that the agriculture sector in Turkey has become a
part of global competition.
Competitive Dynamics in Turkey 181

14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
98
00
02
04
06
08
10
12
14
19
20
20
20
20
20
20
20
20
Fig. 3.  The Share of Agriculture in Total GDP in Turkey between 1998 and 2015.
Source: Turkish Statistical Institute (2017).

What Might be Competitive Assets of the Companies in this Industry? The

industry is mainly dominated by unbranded competition, shortage of inadequate
infrastructure, including machine farming and political governance, due to
the government’s efforts to set a base price for some agricultural products.
According to Deloitte (2010), the strengths of the country in this area are
appropriate ecological conditions and climate for agricultural production,
government support for agricultural activities, increasing interest in Turkish
agriculture in recent times by the Ministry of Agriculture and Rural Affairs
and by other investors and increased production efficiency due to industrial
automation. The weaknesses can be summarised as follows: in some prod-
ucts, government and nongovernmental institutions determine the lowest
price for agricultural products, the production of these goods is mostly in
the hands of small businesses; machine farming, which will increase produc-
tivity, creates high costs for these small-scale farms. In his report, Deloitte
(2010) has accepted strategic geographic position, competitive labour costs
and increasing demand for organic production as opportunities.

Defender or extender?  According to the latest data, the agriculture industry

in Turkey has the lowest competitive pressure but it is under more global
competition as compared to 20 years ago. Since the industry is highly labour-
intensive, the cost and quality of labour structure might be the competitive
assets. If you use automation or machine farming, this might support more
effective competition. Moreover, discovering a niche area, such as organic
agriculture, might also be competitive assets. These competitive assets can
be accepted as transferable assets.
182 MUHTEREM ŞEBNEM ENSARI

Which strategy for marketing?  Since the local companies have many national
competitive advantages, focussing on creating value for customers, creating a
brand opposite to the industry in general and investing in innovation might
be helpful tools for the marketing of products: all these might be possible
actions taken by local industries.
It is very important for international companies in this industry to follow
government regulations. The customer is loyal to local production in agricul-
ture (they buy products by country name), so national and fusion marketing
might make customers feel as if they are buying a national brand. On the
other hand, using country of origin is still a useful way of selling seafood. The
efforts of finding a countrywide distribution channel, such as a well-known
supermarket chain, might help to increase sales.

Manufacturing Industry
The manufacturing industry has been one of the main drivers of the Turkish
economy. In 2015, it has a significant share in Turkey’s economy, the manufac-
turing production in 2015 was 130.8 billion USD. The gross domestic production
in manufacturing has increased by 11 times in the last 20 years. According to the
Turkish Statistical Institute and Central Bank of Turkey Statistics, the worth of
enterprises increased to USD 335,311 from USD 236,575, and foreign direct invest-
ments increased to USD 46,984 million from USD 9,777 million in the last 15 years
(TCMB, 2017; Turkish Statistical Institute, 2017).
This industry classification includes four sub-categories: mining and
quarrying, manufacturing (includes textile, automotive, food production,
etc.), energy (electricity, gas and water) and construction. This industry
items are very important when we consider generation of the gross domestic
product.
(A) Mining and Quarrying: Since the mining industry creates resources
for industrialisation, consumption and production of mines can be used as a
measure of industrial fidelity because it is used in almost all of the products
that we use in modern societies. For the construction of an average residence,
400 tones of metal are required, for an average hospital construction this
amount is approximately 3000 tones and for the production of a car, it is 5 tones.
Competition in the mining and quarrying industry: The mining industry
started to develop after Turkey became a Republic. From 1986 until the
1990s, when it began to decrease, the share of the mining industry in gross
domestic production grew at a rate of 2% (Republic of Turkey Prime Ministry
Investment Support and Promotion Agency, 2014, 2017). In the mid-2000s,
Competitive Dynamics in Turkey 183

growth in Turkey’s mining and metals sector was in parallel with the coun-
try’s robust economy. New mining laws enacted in 2005 and 2016 resulted in
an increase in mining and mineral exploration activity in the country with
a particular emphasis on copper, gold, nickel and zinc (Istanbul Mineral
Exporters’ Association, 2015). As a result of these changes, according to the
data of the Turkish Statistical Institute, the mining production increased by
28 times in the last 20 years (666 million to 19,251 million TL), and the num-
ber of enterprises increased to 335.311 in 2015 whereas it was 1.710 in 2003
(Turkish Statistical Institute, 2017).
With the recent regulatory improvement, Turkey has become more attrac-
tive for mining investments. Turkey’s regional investment incentive system
is based on a descending pattern where regions vary in the range of 1 to 6
based on their level of development, with 6 being the least developed regions.
Mining is one exception to this scheme, as most investments in the mining
sector are supported with incentives extended to region 5 regardless of the
investment’s location (Istanbul Minerals and Metals Exporters Association,
2017). As a result, foreign direct investments increased to USD 1,967 million
and domestic direct investments to USD 2,254 million in 2015, whereas these
were USD 262 million and USD 804 million in 2005 (TCMB, 2017; Turkish
Statistical Institute, 2017).
What Might be Competitive Assets of the Companies in this Industry?
The industry is mainly dominated by shortage of resources, including
skilled labour force, investment capital and inadequate infrastructure. On
the other hand, the industry in the country has both policy and resource-
based advantages because of the volume and variety of mining and quar-
rying potential.
Turkey imports many necessary materials for the purpose of industrialisation.
Additionally, local companies in mining industry are experiencing high global
pressure since Turkey is becoming more attractive for foreign investors as a result
of recent regulatory improvements in incentive systems with in the industry.
Mining is a capital and labour-intensive industry. The extra value cre-
ated by a mining company in supply chain mechanism might be a competi-
tive asset for the company. To consider this, a mining company must fulfil
certain conditions to start its operations. These are: tenor, which is the
ratio of metal in the ore reserve, facilities of extraction of ore and trans-
portation and capital, necessary for the successful operation of mines.
The capital is very important for mining in emerging markets, since it per-
mits the necessary equipment and technical personnel for the operation
of mines.
184 MUHTEREM ŞEBNEM ENSARI

Which Marketing Actions and Competitive Position?

Among the basic conditions to survive, in order to stand out from the compe-
tition and to provide international competitive advantage to create additional
value for customers, it is necessary to have sufficient capital, qualified work-
force and information and technology that enable benefits from the econ-
omies of scale. Product and process development is one of the important
steps to be taken, since sectoral R&D intensity in Turkey is 1.36 whereas it
is 6.44 in Spain, 28.94 in Australia and 8.11 in Canada. Since R&D intensity
is below many developed countries, any investment in R&D makes a differ-
ence between local companies (OECD, 2017c). On the other hand, invest-
ment in R&D sector is expensive. In this context, particular emphasis should
be placed on increasing the scale of companies and raising the quality of
sectoral workforce.
(B) Manufacturing: Turkey’s geographical proximity to Europe, Asia, the
Commonwealth of Independent States (CIS), Middle Eastern and North
African countries makes it a trade hub and an attractive base for production
of manufacturing companies.
Table 3 provides the share of sub-industries in the country’s the export and
import total manufacturing volume in percentage.

What Might be Competitive Assets of the Companies in this Industry?

According to Table 3, high-tech products, such as chemical products, comput-
ers, electronic and optical products, machinery equipment, motor vehicles,
trailers and semi-trailers, have the highest percentage of total import; on the
other hand, textile and apparel, basic metals, motor vehicles and food and
beverages have the highest percentage of total exports.
Each sub-industry has different characteristics as regards to heterogeneity,
scarcity of resource and infrastructure, unbranded competition and socio-
political governance. For example, the textile and apparel industry suffers
from heterogeneity and unbranded competition, whereas the motor vehicles
industry suffers more from the scarcity of resources, socio-political govern-
ance and the scarcity of infrastructure.
In general, manufacturing is the most knowledgeable and capital-
intensive sector of the economy. According to the United Nations
Conference on Trade and Development’s (UNCTAD) World Investment
Report, the involvement of MNEs from emerging and transition countries
in the digital economy and related equipment manufacturing sector has
resulted in the narrowing of the productivity gap with developed MNEs.
Improving labour productivity is especially evident in industries such as
Competitive Dynamics in Turkey 185

Table 3.  The Share of Sub-Industries in Total Manufacture Export

and Import.
Manufactured Products The Share in
Total Manufacturing

Exports Imports

Food and beverages 8 3

Textiles, apparel and leather products 20 6
Coke and refined petroleum products 3 7
Chemicals and chemical products 5 15
Basic pharmaceutical products and pharmaceutical preparations 1 3
Rubber and plastic products 5 3
Other non-metallic mineral products 3 1
Basic metals 13 13
Babricated metal products, except machinery and equipment 5 3
Computer, electronic and optical products, potentiometers 2 9
Electrical equipment, potentiometers (manufacture) 7 5
Machinery and equipment 6 12
Motor vehicles, trailers and semi-trailers 13 12
Other transport equipment 2 3
Other manufactured goods 7 5

Source: Turkish Statistical Institute (2017).

computers, electronics, electrical equipment, textiles and apparel, construc-

tion and trade (UNCTAD, 2017).

Which Marketing Plan?

Deciding marketing mix and entrance strategy to the market depends on
the dynamics of the sub-industry in the manufacturing sector. For exam-
ple, in the textile and apparel industry, there is heterogeneity in the market,
which means one can easily focus on a special segment of customers or sell
a more standardised product in general, both ways are possible. By the way,
luxury products, no name products and imitations might be in the same
market because of the market heterogeneity. On the other hand, for food
and beverages, the type of product determines its customers. Selling salt
and vinegar crisps is a good idea in England, but if the company plans to
market their product in different market, it must be considered that the
taste of vinegar doesn’t appeal to the palate of every nation. If the company
is decisive about entering in this market, it needs to find out their potential
customers such as targeting tourists and distributing their product at tourist
destinations.
186 MUHTEREM ŞEBNEM ENSARI

(C) Electricity, Gas and Water Supply: The basic problems of these mar-
kets in Turkey are scarcity of resources, scarcity of infrastructure and socio-­
political governance. Since the energy market is very important for industrial
and energy production and the welfare of the society, its operations and dis-
tribution for a long time were controlled by the government.
In the initial years of the 2000s, the liberalisation process was started by
the government. The data indicates that the demand of electricity, gas and
water started increasing, but the domestic production of these was lower on
national level, since the share of industry in the total GDP and the number of
companies remained the same. However, this sector became a point of attrac-
tion for foreign investors due to government incentives provided to these
industries. According to the Turkish Statistical Institute data, the number of
enterprises remained the same – around 3,200 – but foreign direct investment
increased to USD 14,773 million from USD 1,693 million from 2000 to 2015
(TCMB, 2017; Turkish Statistical Institute, 2017).
Electricity: In the electricity sector, the Electricity Market Law No.
4628 came into force in 2001. By that time, an electricity distribution
company had been operating all over the country. Initially sales activities
were separated from the distribution company. As a result, competition
was expected to bring advantageous price tariffs in the market along with
higher-quality service approach. Energy Exchange Istanbul (EXIST) was
officially established on March 12, 2015 with the aim of planning, estab-
lishment, development and operation of energy market in an effective,
transparent and reliable manner to meet energy market’s requirements.
On the other hand, every activity in the electricity market was not open to
competition; also, all activities were not privatised. According to a report
issued in 2017, the actual number of production companies included four
public companies and 758 private companies; one transmission company
was operated by a public enterprise, 21 private companies were for dis-
tribution; and one public company and 148 private companies for sales
(Republic of Turkey Ministry of Energy and Natural Resources, 2017).
Gas: In Turkey, natural gas was discovered in the 1970s, and by June 2016,
Turkey’s available natural gas reserves reached 18.7 billion Sm3 (Standard m3).
It is estimated that the Ministry of Energy and Natural Resources (MENR)
has recently promoted the countrywide support for domestic resource pro-
duction to support some amount of natural gas production in the coming
period. In spite of demand for domestic gas, which grows faster than the
world demand in years, the low level of domestic production causes Turkey
to depend for supply on foreign countries. Turkey’s foreign dependency for
energy is about 76%, while it is 99.2% for natural gas (Öztürk, 2017).
Competitive Dynamics in Turkey 187

Water Supply: In Turkey, unplanned urbanisation and global warming caused

significant demand for healthy and safe drinking water, especially after the scar-
city of water in the Marmara region in 1993. As a result of this rapidly growing
demand of water supply, the number of organisations increased. The market has
grown steadily in the last 10 years, the total product has increased to 11 billion
litres, the market size increased by 4.6 and the total export by USD 41,850,959 in
2015, whereas the total production was 8.1 billion litres, market size was USD 2.5
billion and the total export was about USD 19 million in 2007 (SUDER, 2015).

Which Marketing Actions? 

Electricity distribution companies promised high potential to MNCs after the
production and distribution of electricity was privatised. Marketing mix of the
current companies within the industry must be planned carefully. High service
quality and little arrangements in in pricing might shift the place of huge number
of local customers’ place from one company to another. Water demand and supply
also have promising potential for local and MNCs. Except premium brands in
water supply, fusion marketing and national brand have advantage in marketing
practices. Distribution network is one of the products for those industries.

CASES RELATED TO SURVIVAL STRATEGIES OF THE

COMPANIES IN EMERGING MARKETS
An Extender from Agriculture Industry: Ipek Bulgur

Since the Declaration of the Turkish republic in 1923, wheat production in

Turkey has increased gradually (from 2.5 million tons to 22.6 million tons).
According to the Turkish grain board report of 2016, the number of local
bulgur producers were 103, and 1.2 million tons of bulgur was produced
and 278 thousand tons of bulgur was exported. Turkey is the first in the
world to export bulgur with 200,000 tones and 102 million USD export
volume in 2015 according to International Trade Center’s data. Although
imports of wheat have also gained momentum since 2006 (TMO, 2017), the
industry is highly dominated by local competition, not global competition.

‘Mardin’s Golden-Head Girl’.  Ipek Bulgur was founded in 1990 in Mardin.

There were 15 bulgur factories in Mardin, 25% of production and 35%
188 MUHTEREM ŞEBNEM ENSARI

An Advertising Poster Announcing that

A Photo of İpek Bulgur İpek Bulgur will be in Sirha Exhibition
France in 2017

of export of bulgur wheat took place in Mardin (Ipek Bulgur, 2017). The
company was under local competitive pressure, and with new incentives for
the import of wheat, global competition started increasing.
In order to survive, the company formulated contender strategy by focus-
sing on organic production. When the marketing mix was considered dur-
ing this process, the company emphasised the difference of their product
in their marketing activities. Their motto was: we are serving ‘Mardin’s
golden-head girl’ to you. This product was different in colour and aroma
because of the combination of Mardin’s soil, traditional production tech-
niques and the company’s modern facilities. Soils in Mardin are rich in iron
and minerals and produce higher quality and higher protein content wheat
than other soils. Ipek Bulgur (2017), which has supported traditional pro-
duction since its establishment, produces wheat by processing wheat water
at any stage without using any additives, just as it is in traditional produc-
tion. As a result, the customer can clearly see the difference of the product
at first sight from its yellow colour. Besides these differences in products,
the company decided to set the market price to reach more customers.
They were serving quality products to their customers at a reasonable price.
As a distribution policy, the company dealt with big market chains through-
out the country. On the other hand, it looked towards selling products to
international markets. In order to promote the product internationally,
Competitive Dynamics in Turkey 189

the company introduced their products with chefs all around the world in
world famous fairs such as Sirha, and also tried to take geographic signs to
‘Mardin Bulgur’ (Ipek Bulgur, 2017) to have the advantage of its country
of origin.

A Real Extender: Turkish Film Series Industry!

A similar competition strategy was pursued in the series of the film indus-
try emerging in Turkey, and the serials which have gained appreciation
by the Turkish people were first marketed in the Middle East and Turkic
Republics where cultural similarities were found. According to a report
published on variety.com in the United States, despite economic stagna-
tion in Turkey, the Turkish series maintained their popularity in the world,
and Turkey ranks second in the export of series after the United States
(Hürriyet, 2017).
If you search ‘How Turkish series became so popular?’ on web, you will
get the product strategy in marketing mix of the companies from the industry.
These are some answers to the above question on the web:

The good thing about Turkish serials is that they always have limited episodes, an excel-
lent plot and story content. Moreover, the well-written scenes that include characters’
emotions allow the audience to take part viscerally in the story and bond with the charac-
ters. Also, the actors are amazing. (An audience from Delhi, India, 2008)

Simply because of social similarities. Turkish TV series are a continuation of Latin

soap operas which, once upon a time, were quite popular in Turkey. (A Turkish audi-
ence, 2008)

Although Turkey is quite far away, I found our cultures to be quite similar, and the
Turkish productions are of very high quality and don’t have the Hollywood clichés and
stereotypes. When I started to watch these dramas, I realised how tired I was with all the
violence and sex of American TV. (A Chilean audience, 2016)

If we look at these comments, selling social and cultural similarities is

the basic product philosophy of this industry. On the other hand, it must
be noted that one of the first Turkish soap operas aired to the Arab world,
which was named Noor, catered to an audience largely unexposed to the TV
portrayal of a secular lifestyle co-existing with Islamic values; 85 million peo-
ple in the Middle East and North Africa watched its dramatic conclusion
(Gürmen, 2017). From this point of view, the companies serve their custom-
ers an ideal secular way of living, living in beautiful houses by the Bosporus
190 MUHTEREM ŞEBNEM ENSARI

and amazing love stories rather than violence and sex; in other words, they
gave them something completely different from other competitors.
When companies planned marketing mix, they did not want high costs for
their products, rather their main focus was to distribute their products to cor-
rect channels. That is why, initially the series were sold at $30–50 per episode;
nowadays they are sold for up to $20,000 per episode.
As a result, according to a report by Forbes Turkey, there are 85 private
production companies, and these series are exported to 142 countries. The
export of series in Turkey started to grow in 2008, which totaled to USD
10 million, reaching to USD 350 million in 2016. The demand for Turkish
series increased their price per episode. The value of series in world markets
has also increased by about 10 times after 2010. Turkish exporters are aim-
ing to sign USD 750 million worth of exports by 2023. Although Turkey has
the strongest markets in the Middle East, the Balkans and Eastern Europe,
North Africa, South America and Central Asia, with their series it is now
present almost all over the world (Kara, 2014).

Live Defenders!

Shangai Jahwa is China’s oldest cosmetics business that appeals to Chinese

customers. As beauty standards show differences in every culture, the pres-
sure of global competition in this industry is weak. Despite interest from the
young generation in this global brand, the company targeted the customer
segment that was interested in traditional products, which had a low-cost
advantage and a broad market share. As we know the local tastes and expec-
tations of clients, we developed the product in this direction. Despite the
3% market share of Revlon, the brand dominates half of the world market
(Dawar & Frost, 1999, p. 123). Similarly, Döner and Lahmacun chains oper-
ating in Turkey are in a defensive position against global fast food brands.

Meet a Dodger!

The cargo and courier sector in Turkey, which has a history of no more
than 35–40 years, is growing exponentially in recent years in parallel with
the development of country’s industry and the rapid spread of e-commerce.
Because of its geographical position and the young population, foreign
investors are getting more interested in this sector with each passing day.
The number of branches of the firms increased from 4,225 in 2005 to 9,700
Competitive Dynamics in Turkey 191

A Photo of Unsped and UPS Partnerships

in 2012. The volume of workforce increased four times from 22,000 work-
ers in 2005 to 89,000 workers in 2012 (Dünya, 2013). Nowadays, the sector
is served with 25,000 vehicles, with an employment capacity of approxi-
mately 100,000 people, thus the sector provides significant added value to
the country’s economy (Kut, 2017). PTT, Interglobal Cargo, Yurtiçi Cargo,
Aras Cargo, MNG Cargo, Sürat Cargo, Kurye Net, Aktif İleti, Kurye Tel,
TNT, DHL, UPS and FedEx are the most important companies working in
the Turkey’s cargo and courier sector.
Unsped was established as a local business in Turkey in the growing cargo
transportation market. In 1988, it became an authorised service provider in
Turkey to UPS, growing in Europe during national and international fast
cargo transportation in those years, which made it easy to access the existing
service network of UPS. In June 2009, UPS established a partnership with
Unsped, which was working in Turkey for 21 years, and gave the management
of 21 countries to Unsped’s CEO, Haluk Ündeğer (DTIK, 2009).

Meet a Contender!

In the white goods and computer market, there is very intense competition
all around the world. It is estimated that the size of the world’s white goods
market will increase to 430 million (Öztürk, 2016). While China is the world’s
largest white goods producer, Turkey is the second largest producer of white
goods in the world and the largest producer in Europe. Turkey completed
the year 2016 with a growth of 6.5%, with domestic sales and export of
24 million pieces (TürkBESD, 2017). Apart from China and Turkey, countries
192 MUHTEREM ŞEBNEM ENSARI

A Photo of Arzum’s Award-Winning Toaster: Fırrın

such as the United States, Britain, Germany and Italy still seem to maintain
their competitive edge in the global white goods market. Turkey has competi-
tive advantage because of low labour cost and geographical proximity to EU
countries. Turkish brands such as Arçelik, Beko, Arzum, Vestel, Casper can
be evaluated for their struggle in this category.
Arzum tries to survive with contender strategy, operating in the white
goods sector where the pressure of global competition is intense, to transfer
its competitive assets combining traditional products with modern applica-
tions of R&D studies. The company develops new products, sells them with
competitive pricing policy and distributes through their own channels and
distributors.
Main focus in their marketing mix is product differentiation. T. Murat
Kolbasi, chairman of the board of Arzum said in one of his interviews: ‘We
are innovative not only with our products, but also with our services and our
approach to our business’ (Kolbaşi, 2013). The company has received many
design awards from different institutions such as IF design, Plus x Award, Plus,
Good design, Hong Kong Award for Industries and HK Household Electrical
Appliances Design and Innovation Competition in 2013 and Reddot award
2014 with its new toaster called ‘Ar232 Fırrın’ and new coffee machine
‘Okka’ (Arzum, 2017).

CONCLUSION
Turkey is an EM with high growth potential, thanks to its natural resources,
young population, geopolitical situation and closeness to developed markets.
The country is experiencing global competition since 1980 after it opened
Competitive Dynamics in Turkey 193

to foreign trade via regulations. In the 1990s, the country became an impor-
tant exporter of many agricultural and manufactured products. By the end of
the 2010s, the country was experiencing intensive competition in textile and
apparel and high technology products. Turkish companies compete with mul-
tinationals both within and outside the country. During this process, some
industries started to be more dependent on outsiders. This is what happened
in agriculture and textile production.
This chapter focussed on clarifying MNCs’ competitive positioning pro-
cess to enter the Turkish market and the multinationalism process of local
companies. During this type of strategic actions, environment analysis is a
helpful tool. Companies can have competitive power because of external
environmental conditions in their country, internal environmental conditions
in their sectors and their competitive assets and capabilities. According to this
point of view, the following observations are made:

• On the country level, Turkey as an emerging country has high growth

potential with the help of natural resources, young population and govern-
ment subsidies.
• In the sectoral level, agriculture and industry sectors are growing rap-
idly in the country, especially the subcategories of industry, which must
be analysed in more detail. Global competition in some of the sub-
categories was high because of common interests of global customers
such as high-­technology products, whereas global competition is low in
some sectors because of the local needs of the customers such as the food
industry.
• Additionally, on sectoral level, global competitive pressure should not be
evaluated based on sectors because of the dynamics of the country. In dif-
ferent subunits of sectors there can be different levels of pressures. For exam-
ple, it is observed that the executives they do not feel too much competitive
pressure in the businesses that invest in local needs or in areas that the
international rivals are not yet be able to get in. While businesses that focus
on local needs consist of restaurants and producers that completely focus
on local food or drinks, cheese and milk, etc. The frozen food sector can be
an example for the entrance of global rivals to get into the market since it
is thought that it is rather hard to prepare physical conditions. On the other
hand, beverages, all kinds of soda, chocolate and confectionary produc-
ers have emphasised the fact that they have been subjected to global and
local pressure from the moment of establishment and many businessmen
explained that they carried out sales with all royalties and rights of global
businesses (Ensari, 2013).
194 MUHTEREM ŞEBNEM ENSARI

• On the company level, competitive assets are more important than ever for
local companies in Turkey. Since technology has an accelerating effect on
competitive pressure, it is recommended to invest in technology. What you
have read in this part of the book is true for the current world situation.
On the other hand, in order to be a part of new industrial era with Industry
4.0, companies in Turkey need to concentrate on more information tech-
nology, research and development technology in order to produce more
innovative products and to hire qualified workforce. These companies also
need to know more about the new management system to get prepared
for the future competition. Such items would create competitive power
for companies but competitive power is tangible, which means that it can
be transferred internationally. This helps companies in highly competitive
industries to survive.

In order to take right market positioning, understanding the dynamics of

the market is very important as mentioned by Sheth (2011). Different levels
of internationalisation strategies, rather than direct investment to the market,
are recommended, such as direct export, licensing, using distributors, etc.,
and also ‘wisdom of crowd’ studies can be used as a helpful tool before taking
a competitive position in Turkey.
As a result, this chapter can be concluded in the following way: being a
local company in Turkey, which is an emerging country, means you need to
find out ways to survive against global giant companies because of the lib-
eralisation process in almost every industry of the country. From the world-
wide examples, foreign global companies must also be prepared for new
global companies with Turkish origin. To survive in the long run, companies
in Turkey, local or global, must understand the current dynamics of their
country and their sectors and put more stress on their competitive assets and
their transferability. Multinationals who decide to enter the Turkish market
must understand heterogeneity, the scarcity level of resources, infrastructure
and the importance of socio-political governance in their operating industry
before marketing their products.

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CHAPTER 4.3
PLACE MARKETING IN TURKEY

Can Uslay and Mesut Çiçek

ABSTRACT

The branding concept has been applied to cities, destinations, regions and
even nations to attract tourism, investments and residents. The Republic of
Turkey with its rich historical heritage has been home to many applications
of such diverse branding campaigns. While some of these campaigns have
been criticised for their lack of efficacy, especially at the national level,
several city-based or regional campaigns have proven more successful.
In this chapter, we review and examine place branding campaigns in Turkey.
We provide examples of the increasing role of social media, cultural and his-
torical heritage, role of movies and TV series, health- and faith-based tourism,
mega-sports events, sustainable communications, the Slow City concept and
public–private partnerships in contemporary place branding campaigns.
Keywords: Place marketing; place branding; destination marketing; city
branding; region branding; nation branding

INTRODUCTION
Globalisation, accessible transportation and information technologies have
made travel more accessible and attractive and increased the number of

Marketing Management in Turkey, 199–219

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181014
199
200 CAN USLAY AND MESUT ÇIÇEK

global and local tourists. Since tourism has a key role in the development of
places (Kurar, Kavacık, & İnal, 2017), competition among them has emerged
(Bıçakçı & Genel, 2017). Places in a global market compete using their eco-
nomic, human, social and cultural resources (Mišič & Podnar, 2017, p. 66) to
create economic, social and political values (Doyduk & Okan, 2017, p. 166).
One of the most crucial issues for a place is to establish itself as a brand to
attract visitors. Through extraordinary marketing, places can become per-
ceived as unique and more attractive than their competitors (Bayraktar &
Uslay, 2017a).
However, places have limited economic, human, social and cultural
resources, and they also face many challenges (Mišič & Podnar, 2017). They
must carefully devise their marketing strategies and allocate their limited
resources to develop a differentiated place image (Özbölük, 2017). There
are several tools and strategies that can be used to create a unique brand,
increase the awareness and attractiveness of places and enhance the prosper-
ity of stakeholders such as residents, investors, local organisations and gov-
ernments (Bayraktar & Uslay, 2017b).
Place branding campaigns are increasingly using strategies such as social
media (Özbölük, 2017; Uzunoğlu, 2017); movies and TV series (Şahbaz &
Bayram, 2017); the application of sustainable communications (Biçakçı &
Genel, 2017); the Slow City concept (Doyduk & Okan, 2017); highlighting
the role of health tourism (Gürcü & Tengilimoğlu, 2017), cultural tourism
(Hocaoğlu, 2017; Özer, 2017; Uysal, 2017), religious affiliations (Kurar, Kavacik
& Inal 2017) and the support and efforts of local governments (Güler, 2017).
Turkey is one of the most important and multifaceted destinations in the
world. It offers plenty of opportunities, beautiful sights and activities to tour-
ists of all kinds. Turkey’s unique geographic location where East meets West,
multiplicity of cultures, historical heritage, religious destinations, temperate
climate on its Western and southern coasts, Blue Flag beaches, clean bays
and ancient cities are rarely found in a single country. However, Turkey has
not taken its well-deserved place in tourism. Turkey remains one of the most
important destinations yet to be successfully branded. A detailed examination
of the role of several strategies and approaches on the brand image of Turkey
is crucial. Emerging markets tend to have abundant natural resources that
attract visitors, and financial as well as human capital. The lessons from the
case of Turkey are also applicable and important for other emerging markets
that stand to benefit from more tourism. The objective of this chapter is to
review and examine place branding campaigns in Turkey to date with contem-
porary examples.
Place Marketing in Turkey 201

GENERAL BACKGROUND ON PLACE BRANDING

During the late 1960s and 1970s, there was radical change in the scope of
marketing. One of the most important breakthroughs was the Kotler and
Levy’s (1969) article entitled ‘Broadening the Concept of Marketing’. The
authors claimed that the scope of marketing must be broadened to include
non-­business organisations. Studies on destination image began in the early
1970s through Hunt’s (1975) influential work (Hanna & Rowley, 2017). Even
though the first applications of concerted place marketing were at a national
level, cities (even small towns) have started to apply branding techniques
throughout the world (Doyduk & Okan, 2017). However, different places
do not have the same characteristics, resources and capacities for branding
themselves (Uysal, 2017). Therefore, a place’s characteristics, strengths and
capabilities should be carefully considered in developing a coherent brand-
ing strategy.

Definition of Place Branding

Place branding is defined as ‘the practice of applying brand strategy and

other techniques and disciplines to the economic, social, political and
cultural development of cities, regions and countries’ (Springer Link,
2017, p. 1). World Tourism Organisation (2004) states that destination
marketing is

all the activities and processes to bring buyers and sellers together; focuses on respond-
ing to consumer demands and competitive positioning; is a continuous coordinated set
of activities associated with efficient distribution of products to high potential markets;
and involves making decisions about the product, branding, price, market segmentation,
promotion and distribution. (Cited in Özbölük, 2017, p. 888)

In the literature, the terms place marketing, place branding, destination

marketing, city marketing and city branding have often been used inter-
changeably (Doyduk & Okan, 2017; Hocaoğlu, 2017). The term ‘destination’
is generally used to describe places in tourism literature, while ‘place’ is gener-
ally used in business and branding literature (Skinner, 2008). City branding is
considered a sub-dimension of place branding (Özer, 2017). Place marketing is
a general definition, while city marketing refers to a specific place (Doyduk &
Okan, 2017). In this chapter, we refer to the efforts for city-, destination-,
region- and nation branding as place branding.
202 CAN USLAY AND MESUT ÇIÇEK

It is possible to view places as marketable products considering their

economic impact on residents, businesses and governments (Özer, 2017).
Some scholars have observed that places differentiate themselves through
slogans, logos and other promotional campaigns just as products and ser-
vices (Hocaoğlu, 2017). Other scholars, such as Skinner (2008), have stated
that the marketing of places differs from products and services because
of the comprehensive relationships between culture, national identity
and stakeholders, and the prevalence of several identities that cannot be
branded easily. Naturally, place brands and product brands have differ-
ences. A place brand does not provide any tangible offers, its attributes and
target markets are hard to define, it communicates emotional benefits, its
image is complicated and varied and it has several stakeholders. A prod-
uct brand offers a tangible product, it provides functional and emotional
benefits, its attributes are well defined, its image is clear and its aim is to
increase sales (Cozmiuc, 2011). These differences indicate the difficulty of
generating a place image.

Goals of Place Branding

Place branding provides unique opportunities to all the stakeholders of the

places such as local and national governments and citisens. The main goals
and benefits of place branding are as follows:

• To meet the needs of the target markets.

• To get the attention of and draw tourists, investors, companies and tal-
ented and skilled people (Mišič & Podnar, 2017, p. 69).
• To draw business investments into the place (Merrilees, Miller, & Herington,
2013, p. 37).
• To create an integrated and attractive image for tourists, business people,
investors, etc.
• To increase the life quality and spiritual development of local people
(Cozmiuc, 2011).
• To provide economic benefit to the city and citizens.
• To increase the power and competitive advantage to attract more tourists
(Uzunoğlu, 2017).
• To gain economic, social and political benefits (Doyduk & Okan,
2017).
• To reduce poverty.
• To generate employment opportunities (Güler, 2017).
Place Marketing in Turkey 203

Components of Place Branding

The wide variety of place characteristics indicate the complexity of place

branding and its differences from product- and service branding. Place
branding comprises several important components. Clouse and Dixit
(2017) claimed that place branding consists of brand, visual image, repu-
tation, sense of place and identity. Brand is the personality of the place
which differentiates it from other places and communicates the value the
place offers (Aaker, 1997; Larsen & Dehoff, 2017; Van Gelder, 2008).
Visual image refers to what the residents and tourists visualise and know
about a place (Clouse & Dixit, 2017). The Eiffel Tower is the visual image
of Paris and Big Ben for London. Visual image tends to be one of the
key factors which leads to the economic failure or success of a place
(Clouse & Dixit, 2017). Reputation refers to how a city is known and to
specific knowledge about a place (Clouse & Dixit, 2017). Las Vegas has
a reputation of being a ‘sin city’, and Brazil is associated with the laid
back Carnival. Sense of place is a feeling and subjective experience of a
place. To have a sense of the place, people must have experience on the
ground (Clouse & Dixit, 2017). Identity is a personal connection that a
resident has towards the place (Clouse & Dixit, 2017). Both New Yorkers
and Londoners feel a strong connection between themselves and their
beloved cities.

Challenges of Place Branding

Doyduk and Okan (2017) observed that there are two main challenges of
place branding – managing the gap between perceptions and the reality about
a place and controlling identity and reputation. Hocaoğlu (2017, p. 234)
claimed that the main challenges of place branding are as follows:

• Implementing city branding strategies in parallel with urban policies.

• Stakeholders’ agreement on issues of city branding strategies.
• Gaining the public’s confidence about those strategies.
• Positioning the city with a simple idea, not using various features for the
identity and image of the city.
• Conserving cultural heritage and promoting it significantly.
• Positioning the city with a perceptible strategy to be an attractive tourism
destination.
• Using the value of design for creating city image.
204 CAN USLAY AND MESUT ÇIÇEK

EVOLUTION OF PLACE BRANDING IN TURKEY

The number of foreign tourists in Turkey has increased by 600% in the last
20 years, reaching 38 million in 2015 (TOBB, 2016). Tourism income in Turkey
was about $30 billion in 2016 or 20% of Turkey’s total income (Ministry of
Foreign Affairs, 2017). These statistics indicate the crucial importance of
tourism for the Turkish economy. Turkey has accomplished these figures
through its outstanding natural, historical, cultural, infrastructural and
social resources. For example, Turkey is second in the world with 442 Blue
Flag beaches, which are vital for summer tourism (TOBB, 2016).
However, despite its riches, variety of resources and characteristics,
Turkey has not reached its potential yet. We focus on contemporary desti-
nation branding campaigns using social media (Özbölük, 2017; Uzunoğlu,
2017), culture (Hocaoğlu, 2017; Özer, 2017), religious affiliations (Kurar et
al., 2017), movies and TV series (Şahbaz & Bayram, 2017), health tourism
(Gürcü & Tengilimoğlu, 2017), city branding of Istanbul (Uysal, 2017), the
application of sustainable communications (Biçakçı & Genel, 2017), the Slow
City concept (Doyduk & Okan, 2017), local governments (Güler, 2017) and
events.

The Role of Social Media in Place Branding

In the era of digitalisation, traditional communication and marketing tools

are insufficient for places to create awareness and differentiate themselves
from other places (Uzunoğlu, 2017). Social media, defined as ‘a group of
Internet-based applications that build on the ideological and technological
foundations of Web 2.0, and that allow the creation and exchange of User
Generated Content (UGC)’ (Kaplan & Haenlein, 2010, p. 60), has emerged
as a very effective communication and marketing tool for place branding
(Muinonen & Kumar, 2017; Uzunoğlu, 2017). Social media is a powerful tool
for branding due to characteristics such as two-way communication, user-
generated content and information-sharing between the users and compa-
nies as well as among the users themselves (Çiçek & Erdoğmuş, 2013). Social
media tools are perceived to be more authentic and reliable than other mar-
keting tools (Chen, Shang, & Jin, 2014). Therefore, places have started using
social media tools in the application of their branding strategies (Florek,
2011; Uzunoğlu, 2017). Social media has become one of the primary tools
through which travel information is shared (Özbölük, 2017; Xiang & Gretzel,
2010). Today, tourists search for travel information through social media tools
Place Marketing in Turkey 205

such as TripAdvisor, Lonely Planet, Facebook and content communities such

as YouTube, Twitter, Instagram, forums and blogs (Cox, Burgess, Sellitto, &
Buultjens, 2009). Ninety percent of tourists read and evaluate online reviews
and posts about tourism products and services such as hotels, restaurants and
destinations before going for a vacation (Özbölük, 2017). However, places
should form their social media strategies collaboratively. On social media,
the users, in our case travellers, are co-creators of place branding (Özbölük,
2017). Users’ participation is perceived to be more authentic, trustworthy and
credible than authority and partner participation (Uzunoğlu, 2017).
Uzunoğlu (2017) reported on a campaign to increase global awareness of
the lesser-known city of İzmir, which is not a major tourist destination despite
its historical, cultural and natural values, through Instagram – a very popular
social media application. An official Instagram account with the username
@cityofizmir was initiated and the campaign was designed in two stages. The
first stage was at the national level, while the second stage was international.
In the first stage, famous photography, gastro and entertainment bloggers
and Instagram users with 50,000 to 1 million followers were recruited to
post pictures of Izmir with the @cityofizmir tag. Within a week the number
of followers increased to 20,000 and reached 38,000 in three weeks. During
the second stage, they recruited international Instagram users who had mil-
lions of followers to post content about İzmir. At the end of the project, the
@cityofizmir account had about 85,000 followers and approximately 2 million
likes. As of May 2017, the follower numbers exceeded 103,000.
Turkey has applied a similar strategy to promote global summer vacation
places such as Marmaris, Bodrum, Fethiye and Dalyan. They invited world-
famous bloggers to Turkey and requested that they share their experiences,
photos and ideas with their millions of followers. A photo taken by one blog-
ger was liked 1,250,000 times within just 3 hours. The authorities expected to
reach about 400 million people worldwide by the end of the project (Anadolu
Ajansı, 2017).
YouTube is also a very effective tool for place branding. Music videos are
the most popular videos on YouTube. To enhance place branding and increase
awareness, places can be included in music videos. British singer, Ed Sheeran,
released a new music video on YouTube (2017a) named ‘Galway Girl’. Galway
is an Irish city and the video included several images which are unique to
Ireland such as Irish folk dancing, Irish musical instruments and Irish stout.
This music video has become one of the most successful instances of place
branding on social media so far and was watched approximately 100 million
times (YouTube, 2017a) within only three weeks. The most successful place
branding of Turkey in a music video is Inna’s acoustic version of INNdiA.
206 CAN USLAY AND MESUT ÇIÇEK

The music video was shot on a roof with an amazing landscape of Istanbul in
the background. This video has been viewed around 78 million times to date
(YouTube, 2017b).

The Role of Movies and TV Series in Place Branding

Brand and product placement in movies and TV series which affects the audi-
ence’s perceptions, thoughts and behaviours, remains one of the most effec-
tive marketing tools (Karniouchina, Uslay & Erenburg, 2011, 2016). Movies
and TV series increase the ‘awareness, appeal and profitability’ of places
(Riley, Baker, & Doren 1998, p. 922) due to several characteristics such as
longer audience exposure in movies than in traditional tourism promotions
(Tooke & Baker, 1996), and perfect camera angles, and in-home access to the
places seen in the movies (Riley, Baker & Van Doren 1998). Movies and TV
series contribute to the development of, provide economic benefits to, and
support the branding strategies of the places (Şahbaz & Bayram, 2017).
There are several examples of the effect of movies and TV series on tour-
ist numbers and place branding. Just one year after the movie Braveheart
was released, the number of tourists in Scotland increased by 300%. Mission:
Impossible 2 increased the number of tourists in Sydney by 200%. The Lord
of the Rings series increased the awareness of New Zealand, which was
not a well-known destination, and the number of tourists from the United
Kingdom increased by 10% every year (Hudson & Ritchie, 2006). Finally,
the hit HBO show Game of Thrones with its mega budget has put Northern
Ireland prominently on the map (Murray, 2017).
The brand image of Turkey suffered from movies such as Midnight
Express, where Turkey was shown as a country which violates human rights
(Mutlu, 2005). However, the brand image of Turkey was positively impacted
by Troy, which increased the number of tourists to Çanakkale, Turkey by
73% (Hudson & Ritchie, 2006). The opening sequence of the James Bond
flick, Skyfall, was shot on the roof of the Grand Bazaar of Istanbul. The
Grand Bazaar was the world’s most visited tourist attraction in 2013 with
over 91 million annual visitors well ahead of the Zócalo in Mexico City
(85 million visitors) and the Times Square in New York City (50 million
visitors) (Travel + Leisure, 2013).
However, it was Turkish TV series rather than foreign-made movies that
led to dramatic increase in tourist numbers. The utilisation of TV shows can
be considered a milestone for the place branding of Turkey. Today, Turkey
is ranked second (after the United States) in volume of TV series exports.
Place Marketing in Turkey 207

In 2016, Turkish TV series were sold to more than 100 countries and reached
an audience of over 500 million globally (Türkiye Gazetesi, 2017). The TV
series increased the number of tourists, especially from Arab countries, The
Balkans and South America. Following the release of the TV series Gumus,
the number of tourists increased by 56% in 2008. TV series contribute to the
Turkish economy by creating awareness, publicising Turkish culture, family
life and lifestyle and even enhancing trade between Turkey and other coun-
tries (Nuroğlu, 2013; Şahbaz & Bayram, 2017). Turkish TV shows such as
Magnificent Century and Resurrection can be found on Netflix in the United
States, which also recently ordered the production of its first Turkish TV
series (Roxborough, 2017).

The Role of Sustainable Communication

Place brands have a complex and multi-layered communication environment

that differs from product and service brands (Bıçakçı & Genel, 2017; Morgan,
Pritchard, & Pride, 2010). The communication environment of a place brand
consists of residents, businesses, governance and city managers, branding
marketers and visitors (Bıçakçı & Genel, 2017; Kavaratzis, 2008). Sustainable
communication between the stakeholders is one of the key factors in building
and maintaining a successful and sustainable place brand. Image of places
may change or be changed by the behaviours of the residents, perception of
the tourists and the acts of businesses (Bıçakçı & Genel, 2017).
Bıçakçı and Genel (2017) proposed a model named ‘The Multilateral
Symmetrical Communication Model’ to help create and maintain a successful
place brand. The authors generated this model based on empirical research
conducted in Istanbul. ‘Continuous interaction, exchange of message among
all the stakeholders of a place and multilateral communication’ (Bıçakçı &
Genel, 2017, p. 54) are the main assumptions of their model. Stakeholders
may affect each other’s attitudes positively or negatively. They classified
stakeholders in two different groups: image carriers (responsible for com-
munication during promotion of the place brand) and organic stakeholders
(responsible for organising events under the places’ brand name). Image carri-
ers are ‘foreign and national visitors and investors, residents, universities, non-
governmental organisations (NGO) and target tourism market audiences’.
Organic stakeholders are ‘provincial tourism office, public, private affiliates,
airport, air and land transport companies, commerce and industry chambers,
etc’. (Bıçakçı & Genel, 2017, p. 55). In Istanbul, image carriers are residents,
visitors, investors, universities and several NGOs. Organic stakeholders are
208 CAN USLAY AND MESUT ÇIÇEK

Turkish Airlines, Atatürk and Sabiha Gökçen Airports and Istanbul Culture
and Art Foundation. There must be strong and elaborate collaboration and
communication among stakeholders to support the place brand.

The Emerging Role of Slow City Concept

Industrialisation and globalisation are characterised by technology and mate-

rialistic environment, which have harmed places’ natural resources as well
as biological, local and cultural diversities (Doyduk & Okan, 2017). Places
around the world have become similar and uniform communities with little
attachment to local values, landscapes and history (Doyduk & Okan, 2017;
Güler, 2017). A new movement, the ‘Cittaslow’ concept, has arisen to prevent
or minimise the effects of homogenisation on places (Doyduk & Okan, 2017).
Cittaslow, born in 1999, is defined as ‘an international network of towns
and villages in which living is easy, the community cares about its heritage,
health of inhabitants and environment, arts and culture and living life at
a peaceful pace’ (Cittaslow Australasia, 2017). The aims of the Cittaslow
movement are to avoid the standardisation of places, protect local values,
increase the quality of life, enable sustainable development, support local
economy, protect nature and lead cities to find their own soul and identity
(Doyduk & Okan, 2017; Özden, 2012). To be a member of the Cittaslow
network, places must complete at least 50% of 60 goals and policies grouped
under six themes: ‘environment, infrastructure, technologies and facilities for
urban quality, safeguarding autochthonous production, hospitality and rais-
ing awareness’ (Doyduk & Okan, 2017, p. 167). The slow city can also be
considered in light of the mindful consumer movement where open-minded
consumers pay attention to their present surroundings, show greater empathy
for others, have concern for life, care more about social attributes and are
more sensitive to their environment (Bayraktar, Uslay, & Ndubisi, 2015).
As of May 2017, there are 235 Cittaslow places from 30 countries through-
out the World. Fourteen places are from Turkey: Akyaka, Eğirdir, Gerze,
Gökçeada, Göynük, Halfeti, Perşembe, Şavşat, Seferihisar, Vize, Tarakli,
Uzundere, Yalvaç and Yenipazar (Cittaslow, 2017). The first place accepted
by the Cittaslow network was Seferihisar, and local authorities have taken
several steps to increase residents’ quality of life and to save the environ-
ment and nature since accreditation (Doyduk & Okan, 2017). Özden (2012)
studied the effect of the Cittaslow movement on Seferihisar. The results indi-
cated that residents are very happy and have a peaceful life. They also agreed
that the Cittaslow movement has positively affected cultural, natural and
Place Marketing in Turkey 209

environmental resources as well as the economy. More places are joining the
Cittaslow movement to prevent homogenisation and to save their distinctive,
competitive advantages and diversities.

Role of Health Tourism

Health tourism can be defined as ‘a vacation that involves travelling across

international borders to obtain a broad range of medical services’ (Heung,
Küçükusta, & Song, 2010, p. 236). Globalisation, demographic altera-
tions, enhanced transportation opportunities and technological and eco-
nomic developments have changed health tourism (Tucki & Cleave, 2014).
The volume of health tourism has exceeded $100 billion annually (Gürcü &
Tengilimoğlu, 2017). The key actors in health tourism are the United States.,
India, Taiwan, Singapore, Malaysia and Turkey.
Health tourism provides several benefits for places, including boosting econ-
omies, enhancing relations between countries, providing year-round service,
boosting tourism and improving health services (Gürcü & Tengilimoğlu, 2017;
Heung, Kucukusta & Song 2010). Countries apply different strategies to gain
competitive advantage in the global health tourism market. India introduced a
new type of visa with tax reductions for medical tourists. Malaysia developed a
strategy which offers tax incentives for health sector firms. Poland uses a joint
promotion campaign for the Polish Medical Service (Tucki & Cleave, 2014).
There are several reasons for people to choose health tourism, including
high costs of treatments in their home country, lack of insurance, long wait-
ing period, unavailability of domestic treatments and privacy issues (Gürcü &
Tengilimoğlu, 2017; Tucki & Cleave, 2014). The main reason for health tourism
is the price differences for treatments between the countries. The cost of heart
bypass surgery is approximately $123,000 in the United States, while it is only
$7,900 in India (Gürcü & Tengilimoğlu, 2017) and about $10,000 in Turkey.
In recent years, Turkey has become one of the most popular health tour-
ism destinations in the world (Omay & Cengiz, 2013). Turkey has several
advantages in terms of health tourism. The first is the low cost of treatment.
Heart valve replacement costs $170,000 in the United States, while it is only
about $17,000 in Turkey (Gürcü & Tengilimoğlu, 2017). The geographic loca-
tion of Turkey makes it one of the most competitive countries for health
tourism. The distances to Turkey and Far East countries from several regions
are provided in Table 1. For most consumers in the West, Turkey is more
accessible than the countries of the Far East and is connected to the rest of
the world through Turkish Airlines.
210 CAN USLAY AND MESUT ÇIÇEK

Table 1.  Distance of Turkey and Far East Countries from Other Countries.
Country Europe North Middle United Russia Middle East
Africa Africa States

Turkey 2–4 hours 3–4 hours 5–9 hours 9–14 hours 2–4 hours 2–4 hours
Far East 10–15 hours 10–15 hours 9–14 hours 18–26 hours 7–12 hours 5–9 hours

Source: Turkish HealthCare Travel Council (2016).

Turkey has 52 Joint Commission International-accredited hospitals

(Gürcü & Tengilimoğlu, 2017). Most foreign patients visit Turkey for oph-
thalmology (eye diseases and surgery); orthopaedics; traumatology; internal
diseases; ear, nose and throat diseases; gynaecology and obstetrics; general
surgery; and mouth and dental diseases (Ministry of Health, 2013). The
health ministry of Turkey has started several developmental programmes and
strategies to increase the number of health tourists, increase service quality
and be more competitive (Ministry of Health, 2013). For instance, to serve
foreign patients, they provided 24/7 translation service in Arabic, Russian,
English and German (Health Tourism Association of Turkey, 2016).

The Role of Culture

Places can create awareness, improve their images and attract tourists by build-
ing new planned settlements, architectural buildings and amusement parks.
They may also use marketing tools such as promotion and branding. However,
all these strategies and tools can be imitated, adopted or improved at other
places. However, culture has a multi-dimensional structure consisting of social
norms and traditions, language, fashion, architecture, handcrafts, art, music and
gastronomy (Iliachenko, 2005) and is affected by history, lifestyle and environ-
ment (McKercher, Ho, & du Cros, 2004) which renders it very hard to imitate.
********************
Culture is probably the most effective tool for place branding and enhanc-
ing tourism. It provides uniqueness to places, offers distinctive experiences to
visitors and is an inimitable key to differentiation (Özer, 2017). Cultural tourism
is defined as the ‘visits by persons from outside the host community motivated
wholly or in part by interest in the historical, artistic, scientific or lifestyle/
heritage offerings of a community, region, group or institution’ (Silberberg,
1995, p. 361). Cultural tourists’ demography and psychography differ from
other tourists. Cultural tourists’ education and income levels are much higher
Place Marketing in Turkey 211

and they want to escape from the real world (Özer, 2017). Cultural tourists
look for authenticity during their visits (Wang, 1999). Places should protect
their authenticity, highlight their cultural heritages and apply differentiated
tourism strategies to strengthen their brand image and impress cultural tour-
ists. However, culture should not be created or regenerated for cultural tour-
ism, and the places should use culture as a catalyst for promoting the place
(Hocaoğlu, 2017).
Özer (2017) listed some strategies for places which can become branded
through cultural presentations. These include creating architectural design
and iconic structures, creating a cultural image and slogan, organising cul-
tural festivals, organising mega events, cultural thematisation, featuring the
cultural identity, utilisation of museums for branding, utilising historical sto-
ries in marketing, urban transformation and planning and cultural flagship
investments.
Turkish culture represents harmony between East and West. Turkey also
has rich architectural culture and many iconic structures for use in brand-
ing strategies. Istanbul alone is home to many historical and architectural
structures such as Hagia Sophia, Sultan Ahmet (Blue) Mosque and Maiden
Tower.
The greatest mosque in the history of the Republic is currently under
construction in Çamlıca. It is designed to be seen from almost every part of
Istanbul to become a new symbol of the city. Uysal (2017) conducted a con-
tent analysis and identified that six themes were used in tourism materials for
Istanbul: religion, capital of civilisations, multicultural diversity, orientalism,
city between the East and the West and the city of tolerance.
Another strategy involves cultural image and slogans. Turkey’s current
slogan, ‘Explore the Potential’, is rather generic and does not include any
cultural expression. Istanbul has used several slogans such as ‘capital of
religions’ and ‘timeless city’ (Özer, 2017). Organising cultural festivals such
as the International Oil Wrestling Festival in Edirne, Mesir Paste Festival in
Manisa and International Golden Karagoz Folk Dance Festival represents
another approach. However, most of these festivals are not well known
internationally. These festivals should be promoted globally to increase
awareness and attract more cultural tourists.

Role of Religious Affiliation

Religion has very important spiritual and sacred values that direct or dictate
devotees to travel to specific places. Jerusalem, Rome, Santiago de Compostela
212 CAN USLAY AND MESUT ÇIÇEK

and Lourdes are the main pilgrimage centres for Christians. Makkah is the
pilgrimage place for Muslims (Kurar et al., 2017).
Although it is a very old tradition, religious tourism’s boom took place
in the beginning of the 2000s. Recently, the volume of religious tourism has
reached worth $18 billion with approximately 300 million people travelling
annually for religious purposes. Religious tourists spend more and prefer first-
class products and services (Kartal, Tepeci, & Atli, 2015). Therefore, religious
affiliations play a key role in the economic prosperity of places. Like culture,
religious places also represent heritage and cannot be formed or imitated.
Places can use religious affiliations in similar ways as to culture to strengthen
a unique brand image.
Turkey has a multi-religious heritage associated with the three Abrahamic
religions: Christianity, Islam and Judaism (Uysal, 2017), and it is one of the
most fortunate countries in terms of religious tourism. Turkey is a home to sev-
eral important religious places for Christians such as Şanlıurfa (the birthplace
of Abraham), Harran (the native town of Rebecca and Rachel), Mount Ararat
or Ağrı (where Noah’s Ark was grounded) and Ephesus (where the Virgin
Mary spent her last years). There are also several attractions for Muslims
in Turkey such as Mevlana Tomb, Blue and Süleymaniye Mosque, Selimiye
Mosque, Divrigi Grand Mosque and Bursa Grand Mosque (Kartal, Tepeci
& Atli 2015). While Istanbul’s Hagia Sophia museum is visited by 3.5 million
tourists annually, the House of Virgin Mary that Christians visit to become a
pilgrim arguably has a higher potential as a destination for religious tourism.
Although Turkey has several opportunities and advantages regarding reli-
gious tourism, Aktaş and Ekin (2007) claimed that only 1% of tourists come
to Turkey for religious purposes. It is obvious that Turkey is not fully success-
ful in religious tourism, and the tourism authorities in Turkey should exert
more marketing effort to promote religious places and attractions and allure
more tourists who are motivated by their religious beliefs.

The Role of Local Governments

Local governments, which are defined as ‘a sub-national level of central gov-

ernment, which has jurisdiction over a limited range of state function, within
a defined geographical area which is part of a larger territory’ (Miller, 2004,
p. 36), are one of the most crucial actors in place branding. They generate
plans, infrastructure and economic arrangements to support the local econ-
omy. They also play an active role in making places attractive for residents,
business people and tourists (Güler, 2017). Since branding strategies of places
Place Marketing in Turkey 213

cannot be separated from the local policies and strategies, local governments
play an active role in branding (Hocaoğlu, 2017).
Local government has a multi-faceted structure consisting of five dimen-
sions. The social dimension is related to the implementation of democracy
and human rights as well as providing social services such as health, educa-
tion and food. The economic dimension refers to the role of local govern-
ments in the reduction of poverty and in maximising local employment and
income. The environmental dimension refers to supplying healthy and safe
living conditions, water supplies, provisions for sanitation, rubbish collec-
tion, disposal drains, paved roads, etc. for residents and visitors, and the
preservation of nature and the ecosystem. The administrative dimension is
related to the relationship and harmony between the local and central gov-
ernments. The political dimension is how local governments influence citis-
ens to participate in politics, organise elections and maintain law and order
(Güler, 2017).
Güler (2017) identified several strategies for local governments in place
branding. Local governments should have close relationships with all stake-
holders and should integrate them in the place branding process from plan-
ning to implementation and evaluation. They should also collaborate with
other organisations such as Local Agenda-21, tourism offices and regional
development agencies. Another strategy for place branding is the application
of tailor-made and place-specific solutions for sustainable development.
In Turkey, local governments are legal public entities and aim to meet resi-
dents’ needs (Güler, 2017). However, local governments face several problems
in meeting residents’ needs and improving the brand image of the places for
several reasons. Local governments have out of date legislations and regula-
tions which cannot respond to technological, economic and social changes.
The Turkish governance system has a heavily centralised character which is
rooted in the Ottoman Empire, and people prefer not to participate in local
government. Also, the central government does not allocate sufficient finan-
cial resources to local governments (Polatoğlu, 2000).
However, there are examples of success. Eskisehir was an ordinary and
unpopular city 15 years ago, experiencing massive outward migration. The
local government produced several projects to increase quality of life. They
made the city pedestrian-friendly, rehabilitated the polluted river at the
city centre, improved the transportation systems and sport areas and reno-
vated old buildings. These efforts made Eskişehir the art and cultural capi-
tal of Anatolia. Local government repositioned the city through initiating
the branding process and became a pioneer for other cities who want to be
branded (Güler, 2017).
214 CAN USLAY AND MESUT ÇIÇEK

The Role of Events

Organising mega events is another effective branding strategy for places

(Uysal, 2017). Olympic Games, world championships, world trade fairs, fes-
tivals, concerts and other events such as the European Capital of Culture
are very important opportunities to be acknowledged globally and improve
a place’s brand image. Organising out-of-the-ordinary events, such as royal
weddings and papal coronations, boosts the awareness of places and increases
brand image (Uysal, 2017). The most important and effective mega event to
improve the brand image of a place is hosting the Olympic Games (Hocaoğlu,
2017). The best example that indicates the effect of mega events on place
branding is the Barcelona Olympic Games in 1992. Barcelona’s strategy
was to use the games to create a place brand and they initiated a renovation
process for the whole city (Hocaoğlu, 2017). They increased the number of
hotel rooms and developed museums and other tourist attractions (Solberg
& Preuss, 2007).
Turkey is aware of the importance of Olympics on tourism and brand
image. The authorities have applied to hold the Olympic Games in Istanbul
and constructed several facilities such as stadiums and transportation sys-
tems. Unfortunately, the applications of Turkey have been denied so far.
The most important event during recent years was the selection of Istanbul
as 2010 European Capital of Culture (ECoC) (Uysal, 2017). ECoC was a
catalyst to Istanbul’s city branding (Bıçakçı, 2012) and a breakthrough for
Istanbul to be promoted globally (Uysal, 2017). In the ECoC campaign, the
importance of Istanbul as a capital city of several great empires throughout
history was highlighted. ‘The Most Inspiring City in the World’ was used
as the slogan of the campaign (Hocaoğlu, 2017). Istanbul used ‘European
common root’ as a branding strategy (Bıçakçı, 2012) to reinforce Turkey
on the way to EU membership. The ECoC was successfully implemented
with approximately 10,000 events organised during the year (Rampton
et al., 2011.

DISCUSSION AND CONCLUSION

Globalisation is an inevitable process to which citisens, businesses and govern-
ments must adapt (Uslay, Yeniyurt, & Lee, 2013). In this global context, places
compete to have distinctive brand images, increase tourism and enhance pros-
perity. However, branding places is more complex and difficult than brand-
ing products and services. Places as brands have multi-faceted attributes and
Place Marketing in Turkey 215

involve numerous stakeholders who must work together to build relationships

and co-create value for success (Malhotra, Uslay, & Bayraktar, 2016; Sheth &
Uslay, 2007). Therefore, local and central governments, citisens, private sec-
tor authorities and marketers should elaborately form, maintain and evaluate
branding strategies considering their economic, social, cultural and techno-
logical resources.
Social media, health tourism, culture, mega events, sustainable communi-
cation, movies and TV series, slow city concept, religious affiliations and local
government can all play key roles in place branding. However, place market-
ers need a master plan and holistic perspective in designing and implementing
their brand image while using these tools. Key stakeholders must agree on the
most appropriate brand image of a place, strategies must be consistent and
tools must be utilised synergistically.
This chapter reviewed and emphasised the unique opportunities of Turkey
in place branding. Turkey has not yet reached its tourism potential despite its
competitive advantages. Arguably, the most effective strategy for place brand-
ing in Turkey is through culture. Turkey has a very rich and diverse culture.
The usage of social media for place branding is not sufficient in Turkey. It is
very difficult to find Turkey’s and Turkish cities’ official web pages, Instagram,
Facebook and Twitter accounts. Therefore, focus on social media and search
engine optimisation (SEO) techniques would be advisable.
For decades, Turkey’s brand image was influenced negatively by foreign
media. Currently, Turkey has a great opportunity to use its own TV series to
create a positive brand image for global audiences. TV series can be consid-
ered a window to Turkey for the world. Movie producers, tourism authori-
ties and place marketers can collaborate to support Turkey’s brand globally.
Turkey should also take several actions to reach its potential for religious
tourism and highlight its religious heritage. Efforts to host mega events and
festivals shall continue. In conclusion, Turkey has the potential to become
one of the top destinations in the world through concerted effort and col-
laboration of public as well as private organisations.

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 SECTION 5
CRAFTING MARKET
OFFERINGS IN TURKEY
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CHAPTER 5
EXPERIENCE CONSUMPTION
IN TURKEY

Ezgi Merdin-Uygur

ABSTRACT

The consumer behaviour literature is evolving towards the assump-

tion that products are inherently experiential bundles, and after all, all
businesses are o­ perating within the experienced economy. Experiences
are much more advantageous for the consumers because they advance
happiness or enjoyment of life (instead of survival or maintenance).
Experiential purchases lead to greater happiness levels compared to
material purchases. Reliance on materialism and material purchases is
shown to be the reason of low happiness levels in even the most affluent
countries.
In this chapter, based on theoretical as well as empirical papers, I ana-
lyse experiences and the consumption of experiences in the Turkish
context. The arguments are supported by up-to-date market analysis of
related industries conducted by independent market research agencies.
The first section looks at the rise of experientialism in retail industries,
such as in the case of shopping malls. The following sections touch upon
main experiential categories such as tourism, dining and sports. Finally,

Marketing Management in Turkey, 223–244

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181016
223
224 EZGI MERDIN-UYGUR

the social aspects of experiences are discussed in the context of third-

place experiences, and some empirical findings are presented. The chap-
ter concludes with some recommendations for practitioners, experience
designers, service providers as well as researchers.
Keywords: Experiential marketing; tourism marketing; sports
marketing; third places; experiential retailing

INTRODUCTION
The experiential economy (Pine & Gilmore, 1999, 2000) has established the
important role of experiences in marketing. According to this framework,
all businesses are providing experiences to their consumers, regardless of
the nature of their offering. Around that time, the psychology literature also
evolved towards the understanding of positive psychology. Positive psychol-
ogy aims at not only preventing misery or dysfunctions but also at improv-
ing the well-being and happiness of human beings. This literature argues
that well-being, the sum of joyful experiences and happiness, is not directly
linked with wealth. People are just not spending their money right (Dunn,
Gilbert, & Wilson, 2011). From this point of departure, this chapter focusses
on experiential consumption rather than a specific industry or a specific time
or point of purchase.
In support of the argument that money is not directly linked with happi-
ness, in Turkey, the economic development and increased monetary income
are not reflected in reported happiness levels, since Turkey ranked as the
78th happiest country globally (Helliwell, Layard, & Sachs, 2016). A report
by Price Waterhouse Coopers (PWC) (2016) shows that the percentage of
culture and entertainment expenditures in household spending is as low as
3%. This statistic may even decrease to the level of 1.62% for the low-income
segment. The Turkish economy still has an untapped potential to grow in
terms of services, experiences and culture and entertainment industries. The
share of the service economy in the national GDP in Turkey is slightly below
60% (Turkish Statistical Institute (TUIK), 2014). Moreover, according to
the data, the share of service sector employees among total employment is
one of the lowest in Turkey with a ratio of 45% whereas almost 80% of the
workforce is in the service industries in countries such as the Netherlands
and the United Kingdom (PWC, 2016).
In this chapter, we analyse the role of experiential marketing and con-
sumption in Turkey, a country where conspicuous consumption, materialism
Experiences in Turkey 225

and affordable luxuries reigned the consumptionscape. The chapter is organ-

ised as follows: the first section briefly defines experiences and summarises
the experiential recommendation literature. Questions regarding what is an
experience and what is a material purchase have been answered by several
researchers in the area. The researchers agree on the concept of ‘experiential
recommendation’ to refer to the advantages of purchasing experiences rather
than material objects. The next section touches upon main experiential cat-
egories such as tourism, dining and sports in Turkey. We report up-to-date
statistics as well as latest academic research looking at experiential categories.
The third section looks at the rise of experientialism in retail industries, such
as in the case of shopping malls. Again, we combine the latest research about
Turkish consumers in retail settings and how they evaluate various shopping
malls. Finally, the social experiences and the third-place experiences are dis-
cussed. We believe that the third-place experiences are rising in consumer cul-
ture and becoming more and popular with increasing global brands, such as
Starbucks, and becoming successful in emerging economies such as Turkey.
At this point, we also present some empirical data that we collected to show
the relationship between social experiences and happiness. The chapter con-
cludes with some recommendations for practitioners, experience designers,
service providers as well as researchers.

DEFINING EXPERIENCES AND THE

EXPERIENTIAL RECOMMENDATION
Defining experiential purchases in comparison with material purchases has
not been an easy task. Clarke (2006) defines experiences as accumulated
happy memories that are recalled with great pleasure, allowing for creativity
and imagination. According to Kwortnik and Ross (2007), the aims of experi-
ences can be listed as making memories, learning, discovery, sharing, escape,
relaxation and romance, and these are highly different than a material pur-
chase’s potential objectives. In a similar vein, Howell and Hill (2009) express
two conditions for a purchase to be an experiential purchase: First, the main
reason for purchase must be advancement in life by obtaining only a memory,
and second, the cost of the experience must be paid in full at the time of acqui-
sition or at most in one month. The elements of leisure experiences are several,
although not limited to, the existence of focus of attention, perceptions of
risk and competence, meanings associated with challenges of leisure environ-
ments, satisfaction and absorption in the moment (Lee & Shafer, 2002).
226 EZGI MERDIN-UYGUR

There are also several typologies of experiences in the literature. The

extreme forms of experiences are called transcendent experiences (Rathunde,
2001) or flow experiences (Csikszentmihalyi, 2000). Flows are joyful common
experiences common in team sports or creative activities such as music or
dance. The objectives of experiences can vary from adrenaline rush to relaxa-
tion (Clarke, 2006). Empirically, the most used experiential purchase types
are fees and admissions, meals, vacations, hikes, donations and gifts. Some
categories are both counted as experiences and possessions in the literature
and empirical research. As examples of these, Carter and Gilovich (2010)
used a boxed set of music and even a large flat-screen or 3D TV depending on
how they are construed. Having made the necessary definitions and discuss-
ing what constitutes an experience compared to a material purchase, we move
on to discussing the experiential recommendation.
The literature recommends spending time and money on experiences
rather than spending money on materials for happiness and satisfaction.
The experience–happiness relationship is so strong that even the thought
of a pleasurable activity (dining or driving) gives more happiness compared
to an actual material consumption. Window dressing and fantasising and
daydreaming are found to be related with more pleasure than the pleasure
released by actually purchasing the same article. Kwortnik and Ross (2007)
analysed the positive anticipative emotions, calling them positive task-related
affect. Positive emotions are felt while deciding for an experiential purchase
(i.e. a vacation) in a category highly conversed in terms of plans, fantasies
and stories. Experiences are more personal and more favourable than mate-
rials, thus they elicit fantasy and facilitative feelings. In addition to that,
experiences become part of the consumer’s identity, foster their social rela-
tions due to their nature and strengthen the ‘experiential people stereotype’
which signifies open-minded, intelligent and outgoing people seeking to fulfill
their intrinsic motivations such as living a purposeful and meaningful life
(Van  Boven, Campbell, & Gilovich, 2010). The people in the category of
experiential buyers are admired, liked and preferred more as conversation
partners compared to materialistic buyers.
People also report experiential purchases as better financial investments
in which money is better spent (van Boven, 2005). People also mentally
revisit their experiential purchases but they are unable to do that frequently
for ­material purchases (van Boven & Gilovich, 2003). The memory value of
experiences is so much higher than materialistic purchases that Carter and
Gilovich (2010, p. 157) note: ‘Even for materialists, their luxurious experi-
ences reside inside their minds, as memories; while their luxurious possessions
are in their closets, their living rooms or their garages’. Satisfaction with an
Experiences in Turkey 227

experience even increases over time as opposed to the decreasing satisfaction

after purchasing a material possession (Carter & Gilovich, 2010). Experiences
are less susceptible to comparison than material purchases. In  experiential
­purchases, the unchosen options are less likely to be thought or ruminated
about afterwards (Carter & Gilovich, 2010). Although for material purchases,
there are post-purchase ruminations according to other available options,
other prices or other fellow consumers who purchased the same brand or
product. Analysing the differential regrets for material versus experiential
purchases (Rosenzweig & Gilovich, 2012), it is generally concluded that mate-
rial purchase decisions lead to buyer’s remorse (regrets of buying) whereas
experiential post-shopping thinking involves missed opportunities (regrets of
not buying). The latter type of regret also endures for a longer time. We may
hear a lot of people regretting not going to a movie with their friends whereas
in the materialistic case, regret for buying that many pairs of shoes dominates
the consumer’s mind. Some experiences are rare opportunities such as famous
concerts.
Inherently social experiences also possess a happiness advantage over
solitary experiences. Among the five time-spending principles of Aaker,
­
Rudd, and Mogilner (2011), spending time with the right people is num-
ber one. Owing to their entertaining power and conversation opportunities,
­experiences are highly social. Activities with friends, family and significant
others are associated with greater happiness levels. One of the most recent
experiments has revealed that women are more prone to embrace experiences
(compared to material purchases) as part of their self-concept when com-
pared to men (Carter & Gilovich, 2012).

EXPERIENTIAL CONSUMPTION IN TURKEY

From a macroeconomic perspective, the GDP per capita in Turkey is $10,390
as of 2014, including a 21% increase within a 5-year period. Consumers in
developing economies demonstrate a shift in terms of consumption trends.
For example, consumers of new China, having acquired material goods such
as TVs and durables, have become avid purchasers of experiences and lei-
sure consumption such as coffee shops, movies and theatres (Kilby & Carter,
2006; Venkatraman & Nelson, 2008). Young, professional and upwardly
mobile segments of such populations are seeking not only upscale goods
and services but also an emotional connection since they are living indepen-
dently from their extended families (Venkatraman & Nelson, 2008). Turkish
households also demonstrate a similar profile in terms of material status.
228 EZGI MERDIN-UYGUR

For example, household ownership of basic durables, such as refrigerators,

colour TV, washing machine and dishwashers, approach 100% as of 2015,
and more varied durables ownership such as microwaves is expected to reach
20% (Euromonitor International, 2016a). Statistics also support that Turkish
households are beyond necessities in terms of spending. Way beyond food and
housing expenditures, household spending for non-essentials has approached
$15,000 as of 2015. Therefore, consumers have the monetary power to turn to
experiential consumption.
One of the most significant experiential industries in Turkey is travelling and
holiday purchasing. For example, 27% of online shoppers in Turkey bought
airline tickets, booked travel or rented a car (TUIK, 2014). Statistics also
show that the increasing number of countries who had no visa restrictions to
Turkish citizens fueled the travelling industry. Combined with opportunities
of low-cost airlines and increased security and variety in terms of purchasing
options (i.e. online), the number of Turkish people who visited foreign coun-
tries has more than doubled between 2005 and 2015 with an increase from
3.6 million to 8.5 million (Euromonitor International, 2016a). The existence
of long religious holidays (such as Ramadan Feast) also contributes to the
travelling industry to a large extent. Main factors that contribute to the level
of involvement in the tourism experiences are level of education and whether
or not the person belongs to the working population entitled to annual paid
leave (Koç, 2003). The statistics show that one of the biggest contributors
to the travelling industry is the segment called ‘middle youth’, aged between
30 and 44 years (Euromonitor International, 2016b). The middle-youth seg-
ment shows the biggest demand towards not only vacations but all experi-
ence-based purchases. This segment is followed by the elderly segment. Since
older consumers tend to have more savings than the younger segments, they
reserve a travelling budget of €1,500 per week on average compared to young
travellers’ budget of €200–300. This elderly segment is especially charmed by
quality, comfort and all-inclusive service of these experiences.
In the Turkish context, Tolungüç (1999) admits that marketing com-
munications and overall marketing strategies of touristic products such as
historical sites, hotels or restaurants have not utilised marketing research
and not valued segment-related information. Tourism marketing activities
blindfoldedly focussed on the objective of increasing the number of incom-
ing tourists and underscored segmentation and motivation-related research.
As ­different types of individuals have diverse requirements and preferences,
understanding the personal characteristics and traits of the tourists as well
as their dynamic attitudes and perceptions will help practitioners adjust the
competitiveness of various destinations to meet tourists’ needs and to provide
Experiences in Turkey 229

congruent experiences. Main motivations towards touristic experiential pur-

chasing can be categorised as the following: curiosity (i.e. fairs and festivals),
imitation and conspicuousness and education (i.e. summer schools, campus
visits), visitation and culture (i.e. traditions, rituals), meetings and religion
(i.e. holy places or trails), personal shopping and sports (i.e. diving, rafting),
relaxation and health (i.e. climatism), entertainment, adventure-seeking and
other motivators (i.e. tour agencies, travel credits) (Hazar, 2007). Researchers
revealed certain characteristics of experiential tourists in the Turkish context
as well. Turkish consumers consider the activity options at the travel destina-
tion, the accommodation features and the city/country of visit (Euromonitor
International, 2017). Turkish tourists make up two different segments accord-
ing to their personal traits as well as the qualities of the locations they choose
for the touristic experience. In an attempt to segment the leisure market in
Turkey, Alvarez and Asugman (2006) identified these two different segments
in the tourist experiential context as spontaneous explorers versus risk-averse
planners. Combining various qualitative techniques such as focus groups and
in-depth interviews with quantitative survey data, this research explains two
different clusters in detail and uses a newly developed scale of exploratory
tourism behaviour to differentiate explorers versus planners. Spontaneous
explorers in tourism experiences are predominantly males, less concerned
with risks, more involved in vacations and using a limited number of infor-
mation outlets before the touristic experience. They have low rates of repur-
chase and revisit intentions and more variety in terms of accommodation
and location choice. On the other hand, the risk-averse planners are predomi-
nantly females and they demonstrate a less involved way of living the tourism
experience. Since they are more involved with the associated risks, the risk-
aversion also directs this segment to opt for packaged tours, intermediated
touristic purchases and choose high-quality luxury accommodation such as
five-star hotels. They opt for as much informative outlets as possible to plan
touristic experience (Alvarez & Asugman, 2006). Destination managers and
experience designers may utilise these findings about various segments of
experiential buyers in Turkey in establishing several facilities or information
outlets about ­touristic experiences.
Researchers in Turkey also admit the fact that tourism in Turkey is focussed
largely on a variety of historical sites and on sun and sea tourism, especially
during the summer season (Gumusgul et al., 2013). However, sports and fit-
ness experiences are also popular in the Turkish context. Running events
sponsored by famous sports and lifestyle brands evoked interest in experi-
ences such as marathons or cause-related running events. Another social
sporting experience to note is table football called ‘langırt’, played in teams
230 EZGI MERDIN-UYGUR

and enjoyed by many in game rooms, beaches, bowling alleys or movie thea-
tres. Some cities in Turkey have developed enormously due to regional sports
marketing. Examples of such destinations are Antalya (golf, skiing and div-
ing), Kayseri (skiing) and Fethiye (sky-diving). Despite this variety, soccer
industry (predominantly referred to as football in Turkey) is of great signifi-
cance. Football experiences give way to sports marketing, sports tourism and
all related economies. Unlike seaside tourism, football game experiences and
tournaments take place in cooler regions in the summer and warmer places in
the winter. For example, Antalya in Turkey hosts a number of foreign soccer
teams from Germany, Austria and Russia for their training during the winter
months due to its warm climate (Hazar, 2007). Huge budgets are reserved
for football experiences, football clubs and all related activities. Prior litera-
ture identifies two different segments for the sports tourism industry as the
­individuals who travel too actively to participate in a sports activity (active
sport tourism) versus individuals who travel to watch a sports event (event
sport tourism).
Leisure experiences in the context of Turkey are various, such as festivals,
which are a mixture of performers, consumers, atmospherics and a number
of periphery service providers’ performances such as food services, catering
services, retail shopping opportunities and entertainment venues. Akyildiz
and Argan (2010) analysed the case of Turkish Rock’n Coke festival and pre-
sented a four-dimensional model of leisure experiences. Their model com-
prised the dimensions of social relations, lifestyle, expression of emotions
and sensual perception. Even though this model utilised items from prior
literature in the area (i.e. Gentile, Spiller, & Noci, 2007; Kao, Huang, & Wu,
2008; Tsaur, Chiu, & Wang, 2006), it is validated in a Turkish experiential
context with data collected from 234 Turkish consumers who were audience
members at the two-day-long festival in Istanbul, Turkey. Interestingly, the
dimension of social relationships turned out to be the most influential driver
of experiential happiness and satisfaction (Akyildiz & Argan, 2010). The sat-
isfactory social interactions during the experience, combined with the quality
of the emotions felt during the experience, significantly predict the intention
to recommend the event to somebody else.
Another experiential shift in Turkish lifestyle has happened in the eat-
ing out sector. Trend analysts acknowledge a shift in eating preferences of
Turkish people from traditional, healthy cuisine towards unhealthy fast-food
and ­eating out. Analysts’ observations link this shift in eating habits with
shifts within the population. More and more percentage of the population
is living in cities rather than countryside. With increased employment rates
(especially among women) and working hours, people feel more pressure to
Experiences in Turkey 231

eat out and eat fast. There are on average 27 million people currently employed
in Turkey as of 2015 (Euromonitor International, 2016a). Moreover, single
person households and the increasing number of higher education students
contribute to the increased demand for eating out. Even though restaurants
are thought as vendors of food, they are primarily retailers of the food­service
experience (Yüksel & Yüksel, 2002). In restaurants, production and con-
sumption practices take place simultaneously and such services consist of a
blend of tangible and intangible aspects of the dining experience. The service
environment comprises the quality of the product, the comfort of the ambi-
ance as well as a set of social relations and conversations between vendors
and customers or simply among fellow consumers. Even non-verbal aspects
such as waiting time, crowdedness, pace of service or prospective customer
perceptions shape the experience itself. The experience, in return, affects con-
sumers’ cognitive, emotional as well as physiological responses (Yüksel  &
Yüksel, 2002). Yüksel and Yüksel (2002) conducted research with foreign
tourists visiting Turkey and presented a five-dimensional restaurant experi-
ence consumer segments model. According to their model, tourists in Turkey
belong to one of the following five clusters of restaurant customers: value-
seekers, service-seekers, adventurous food seekers, atmosphere seekers and
healthy food seekers. According to their model, there are traditional drivers
of restaurant satisfaction such as food quality and service quality. However,
the service quality also comprises friendly staff, their willingness to help, their
knowledge level, their competency, their attentiveness, quietness and level of
noise at the facilities and favourability of the overall atmosphere.

RETAIL EXPERIENCES IN TURKEY

Shopping environments are constantly evolving in order to meet changing
demands and trends. The mall industry, for example, recently faced consider-
able decline, resulting in 1,200 mall closures in the United States and the situ-
ation is expected to get worse due to over-retailing (Semuels, 2015). However,
consumer demands transformed this industry into something more com-
plex. Consumers preferred malls not only for shopping but they also expect
other activities such as entertainment. Similar insights led mall developers
towards developing a complete experience and creating excitement as well as
­functionality. In addition to goods consumption, providing venues for service
consumption positively affected mall-spending since services and socialisation
serve as ways to escape loneliness (Kim, Christiansen, Feinberg, & Chol, 2005).
232 EZGI MERDIN-UYGUR

Brick and mortar retail service experiences have an inseparable human

component in the service delivery phase (Brocato, Voorhees, & Baker, 2012),
acknowledging many different people present in a retail environment such
as other shoppers, salespeople or cashiers. Ever since the concept of experi-
ence became the key element in the shopping environment, the retail mar-
ket responded to this demand via reserving spaces for experiences such as
live music concerts, roller coaster activity areas, co-working spaces and even
artificial farmers’ markets which enabled socialisation of fellow consumers.
Socialisation is a paramount dimension of retail shopping since consumers
in groups cover more area of a store, purchase more in terms of quantity and
spend more money than sole consumers.
Apart from malls, traditional retailers have also developed experiential
environments. Barnes & Noble, a popular bookstore chain, became known
with its bookstore-café concept. Since the target population segments of the
bookstore chain, such as students, demanded socialisation as well as shopping,
the chain developed the concept of book-café in collaboration with Starbucks
and reserved seating spaces in the form of a café in addition to the book sales
area in the form of shelves. Analysing Nike Town Chicago, research revealed
that such hyper retail environments use design features such as statues, altars,
lamps or memorabilia to create the soul of the store (Sherry, 1998). These
elements are not branded products and are not for sale, but they serve to com-
plete the overall experience in line with the brand’s soul and overall story.
In the Turkish consumptionscape, shopping malls provide unique experi-
ences, including music, concerts, design or climate-related attractions such
as fountains shows. Among the works connecting retail and experiences in
Turkey; Çakır, Eğinli, and Ozdem (2006) studied a transformed way of shop-
ping which is the so-called ‘shopping temples’ or ‘thematic parks’, claiming
that these new shopping venues represent not only places but actually a life-
style. These attraction centres are private life fields, venues for spending free
time as well as having fun. In the Turkish consumptionscape, shopping malls
provide unique benefits on special days and gift-giving practices. Such expe-
riential avenues offer Turkish consumers experiences on special days such as
Valentine’s Day (February 14), Father’s or Mother’s Day (May and June) and
New Year’s Eve (31 December in the Turkish context). These attractions may
include music, concerts, design or climate-related attractions such as fountain
shows or many different activities. Çakır et al. (2006) analysed the specific
promotions, experiences and attractions that three different shopping malls
provided on Valentine’s Day as a case study analysis. Significant findings and
observations in a shopping mall in Izmir, Turkey included even wedding cer-
emonies for certain couples and performance-related contests for couples on
Experiences in Turkey 233

Valentine’s Day. More traditional experiences included live music and dance
performances on stage. Restaurants within these malls also offered varied and
different special menus for Valentine’s Day, representing experience within
experience and different layers of marketing performances. What is more
significant in this work in Turkish context is that the authors present these
malls as ‘temples’ of today, supported by a religious and spiritual ­perspective
towards consumption behaviour of the modern Turkish society.
As another special day example, many shopping malls in Turkey host
Christmas markets, special year-end promotions and seasonal attractions at
the end of the year. Another study was conducted in Konya, Turkey, in the
case of a single shopping mall. The qualitative study utilised photo-based
narratives approach in order to investigate entertainment experiences in
shopping malls (Uygun, 2011). This study revealed surprisingly that, in addi-
tion to planned and special activities and experiences, unplanned and impul-
sive events and experiences play a significant role in the overall experiential
consumption. The most highly rated experiences for Turkish young mall
shoppers are planned mall-related attractions; special events and unplanned
spontaneous experiences. Among the planned mall-related attractions, young
Turkish consumers rated movies, entertainment centres and lounge areas as
the most desirable elements. In the second category, similar to the other stud-
ies about Turkish shopping malls, concerts or dance performances have been
reported as desirable special events. The most interesting category, which is
unplanned, spontaneous or impulsive experiences category, included witness-
ing other consumers’ life events and unplanned social interactions.

SOCIAL EXPERIENCES
Servicescapes are defined as spaces constructed as a stage for consump-
tion and to unleash the frozen potential of consumptionscape (Ger & Belk,
1996). Servicescapes are composed of various physical and material elements
categorised as design factors, ambient conditions and social interactions
(Bitner, 1992). Design factors include the layout, furnishing and decor; ambi-
ent elements include lighting, temperature and other sensory input, while
social interactions may involve relations between customers and employees
or among fellow consumers. Within the service management paradigm, old
models either conceptualised other customers as an interacting single entity
focussed on service providers as the sole social interaction party in the service
encounter or dealt with a specific portion of the experience such as the wait-
ing line social effects such as conversation or getting along.
234 EZGI MERDIN-UYGUR

Experiences are complex versions of servicescapes because the consumers

in servicescapes actually engage in the construction of various experiences
fitting their life themes, life projects, identities, roles, culturally embedded
rituals, meanings and beliefs (Sherry, 1998). Social factors, such as customer-
to-customer interactions, may be as important as physical elements in the
evaluation of marketplace experiences. Other customers’ influence may play
even a bigger role than service personnels’ influence in terms of predicting
an individual’s perception of service. This view is supported by the social-
servicescape model (Tombs & McColl-Kennedy, 2003), since social density
determines customer responses (e.g. positive or negative affective states and
susceptibility to emotional contagion), repurchase intentions and intentions
to revisit the same setting.
Acknowledging that other customers form one of the three main elements
in the service setting, customer-to-customer interaction research has received
the attention of both academicians and practitioners for decades (Nicholls,
2010). As consumers face certain design or experience-related restrictions on
how they sit or with whom they share the servicescape, it is beneficial for
managers and practitioners to have a sense of how happy consumers would
be in certain experience settings. Considering the diverse demographics of
today’s global societies and the efforts of global companies such as Starbucks
to embrace many diverse identities within the same atmosphere, it is of sig-
nificance to say that social experiences are evolving towards communal and
third-place experiences.
There is a considerable link between demographic dynamics and the
design of experiences. For example, the loneliness trend in demographics
contributed to the communal and third-place experiences to a large extent.
Communal working as well as communal eating became parts of the retail
environment, since shoppers demanded social needs satisfaction as well as
function and variety. Organic Authority, a popular food blog, explains the
trend in communal dining as follows: ‘… long wooden tables span wall to
wall, and they’re filled with strangers eating elbow to elbow … You’ve just
entered: the communal dining zone’ (Stakal, 2011). Redecorated McDonald’s
restaurants worldwide reserve more and more space for large common tables
and benches for around 20 people. Communal tables serve as modern con-
sumption experiences of being ‘together alone’, since people nowadays do
even collective activities such as bowling or Sunday brunches alone due to
lifestyle changes, time scarcity and unique experiential designs. Since the
lonely population is rising, retailers have acknowledged the benefit of tar-
geting alone shoppers and their spending power via communal experiences.
Several factors make the communal experience context unique. Facilities for
Experiences in Turkey 235

eating out (e.g. restaurants) are designed to create social eating experiences.
Most Turkish consumers prefer full-service restaurants that offer a full dining
experience for the ambience, the service but more importantly for socialising.
Tables are set for more than one or two consumers and the eating experi-
ence of each customer is observable by other customers (Jonsonn & Pipping-
Ekström, 2009). Restaurants may even offer communal plates, allowing
individuals to share food from the same plate (Warde & Martens, 2000),
which might foster the inherently social activity. In Sweden, for example, spe-
cial signs at the entrance of restaurants indicate whether communal tables
are available for individuals who come alone to share with others (Jonsonn &
Pipping-Ekström, 2009). Regardless of geography, public spaces host con-
sumers that are together alone (Morrill, Snow, & White 2005). Communal
eating designs for solo diners are called communal tables in the United States,
talking tables in the United Kingdom and SAMBORD in Sweden (Jonsonn &
Pipping-Ekström, 2009).
The demographic trend of the increased numbers of lonely people within
the population is also reflected in the Turkish setting. Turkish students aged
between 6 and 18 years no longer socialise with their classmates or friends
(Euromonitor International, 2016a). The Family and Social Policies Ministry
has declared that delaying marriages is one of the possible causes of this
trend. There is a significant rise of single men among people who live alone
according to 2014 statistics. As people delay being a household and family,
they look for social experiences as a means of social belonging.
The most significant representation of experiences in the marketplace is
third places such as coffeehouses. This is evident from the plethora of branded
service experiences around us, be it global branded such as Starbucks, local
branded such as traditional coffeehouses or independent third-wave stores.

THIRD-PLACE EXPERIENCES
The coffeehouse has mostly been referred to as a ‘third place’ in both theory and
practice. In sociological terms, Altman (1975) proposed three types of places:
primary (such as home), secondary (such as work) and public (third places).
Third places have also been explained by another sociologist, Oldenburg
(1999) as informal public life places, hosting regular, voluntary, informal and
happily anticipated gatherings of individuals beyond home or work.
Pleasure and leisure, two characteristics of modern consumer culture
(Belk, Ger, & Askegaard, 2003) are in motion within the third-place leisure
236 EZGI MERDIN-UYGUR

service settings. In practice, Starbucks has benefitted from and fulfilled

the  role of the third place as a coffeehouse chain and became one of the
important players of the changing servicescapes. Increasing number of global
players, such as the Caffè Nero chain, followed this concept as well as local
and ­independent service providers such as third-wave small coffee shops serv-
ing as the third place in cosmopolitan capital cities like Berlin, Istanbul and
Melbourne. Starbucks’ global strategy involves shaping not only what con-
sumers eat, drink or listen to but also the overall ambience and complete
consumer experience, including the interactions consumers have with store
employees or among each other (Koehn, 2001).
In their research analysing the custom of sitting in cafes in Israeli regions,
Shapira and Navon (1991) developed the theoretical concept of social
interactions in and around the setting and concluded that the ‘alone’ and
‘together’ concepts are confused in cafés, and the boundaries have become
amorphous, leading to their popularity as a leisure place in the society.
Cafés are increasingly providing homey characteristics (McCracken, 1989).
In China, Starbucks stores represent a safe haven, warmth, security and
privacy like home compared with the noise and fast pace of the streets
(Venkatraman & Nelson, 1998). This homey feeling is supported with
strategic design elements in third places, such as comfy sofas, dim lamps,
pictures on walls and fireplaces. Another portion of consumers see the
third-place experience as a substitute for formal offices. This segment stud-
ies or works in these experiential settings, call it open office due to being
quiet and calm.
In the Turkish context, third places are increasingly popular due to various
reasons. Since 2014, the demand for third places and especially coffee shops
triggered the launch of hundreds of coffee shops in large cities in a few years
of time. As of 2015, one of the most famous third-place branded services,
Starbucks Inc. has a 4.3% market share in the Turkish chain food service pro-
viders market (Euromonitor International, 2016b). Similar to dietary prefer-
ences, preferences for coffee drinking shifted from traditional Turkish coffee
to independent ground coffee culture. The ritual of drinking fresh-brewed
coffee has become a total experience on top of seeing coffee as a product.
Market analysts define this new habit as a new culture and a new experience.
This new culture is also supported by various events, such as coffee festi-
vals, where the customer buys ticket for entrance and the opportunity to taste
unlimited coffee from various independent participants of the festival. These
stands and events are usually supported with other experiences such as music
and live performances and they take place in historical or trendy buildings
within the city centre.
Experiences in Turkey 237

SOCIAL EXPERIENCES IN TURKEY

Historical evolution of global servicescapes is especially important in emerg-
ing economies. For example, McDonald’s stores replaced traditional local
diners, teahouses or restaurants in even the most collectivist cultures such
as Hong Kong, Japan and Taiwan (Venkatraman & Nelson, 1998). Turkey
represents an important context to study third-place experiences due to its
unique history. The earliest forms of coffeehouses actually emerged not in
England but in the Ottoman Empire (Modern Turkey’s predecessor) in the
1500s together with commercialisation of leisure in theatres, galleries or
gardens (Karababa & Ger, 2011). Anthropological–historical work on cof-
feehouses (Karababa & Ger, 2011) define three different pleasures that were
offered by earlier public service settings and experiences. These were socio-
pleasures, physio-pleasures and ideo-pleasures. It is evident that today’s
experience providers are still aiming to offer these three different consump-
tion pleasures to the consumer subjects. In more detail, socio-pleasure is
enjoyment that p ­ eople share when they get together (Tiger, 1992). We had
argued previously also that material consumption is inferior to experien-
tial consumption due to the socialising power of experiences. Opportunities
for consumer-to-­consumer inter­actions, recreational activities and forming
memories are still key features of experiences. Physio-pleasures are relaxa-
tion, refreshment, comfort and being aesthetically pleasant. Gardens, rivers,
music or shows are still key for service and experience providers. Ideo-
pleasures are mentally intensive literary or academic experiences (Tiger,
1992). In the Ottoman times, customers of coffee shops used these places
for writing, discussing poetry or even religion. Considering the coffeehouse
experience of today, patrons still use Starbucks, cafes or experiential arenas
for working, studying, reading and for more technological activities such
as browsing. Therefore, even though the form and content of services and
experiences have evolved enormously in almost six centuries, the key pleas-
ures and functions of experiences are still valid for the modern Turkish
consumer.
Culture and experiences are inseparable entities in consumer behaviour.
Mourali, Laroche, and Pons (2005) hypothesised that a group’s effect on indi-
vidual’s service setting behaviour varies with culture. Moreover, in practice,
global servicescapes are dominating the market with major players such as
McDonald’s. These global servicescapes are sometimes blamed for impos-
ing standardised codes, practices and behaviour at the cost of losing local
practices, lifestyles and consumption habits. There is a continuous interplay
between local consumption cultures and global servicescapes.
238 EZGI MERDIN-UYGUR

METHODOLOGY
In this section, I report empirical findings from the Turkish consumers’ expe-
riential choices such as theatres, dining experiences or holidays. We have
field data from cafes and movies. We also have attitudinal data regarding
performance experiences, such as theatres, and dining experiences such as
restaurants. In one of our field studies, data was collected from actual con-
sumers in a middle-priced café that hosted a large communal table for din-
ing. One of the research objectives was to understand the social aspect of
a leisure experience such as eating out. We recruited research assistants to
collect real-time data from the cafe. We conducted the study on weekdays,
approaching participants sitting alone among other consumers versus sit-
ting with friends in this café. After the individual’s social versus alone status
was marked on the survey, the respondents reported their happiness levels,
the amount of money they spent on the experience in Turkish liras and the
time in minutes they spent for that experience. The main dependent variable
was the happiness garnered at the time of consumption since we interrupted
their eating–­drinking experience. Participation was totally voluntary and
without any monetary compensation. One hundred and sixty-four (68 males,
Mage = 22.59 years, SD = 2.99) customers participated on a voluntary basis.
Happiness derived from the experience as it is lived was assessed with three
items, asking ‘How happy this experience is making you feel’ on a 9-point
semantic differential scale anchored by not happy/very happy; ‘How much is
this experience contributing to your happiness?’ on a 9-point scale anchored
by very little/very much and ‘Would you be happier doing something else
instead of this experience?’ on a 9-point scale anchored by not happier/much
happier (reverse item). Three items formed an index adapted from Millar
and Thomas (2009) (α = 0.736; M = 17.07). We also measured the behav-
ioural involvement of respondents with café or restaurants. They reported
their number of eating–drinking out in a week. Finally, participants indicated
their age, gender and level of income.

RESULTS
The results revealed the main effect of social experience on happiness.
The Turkish consumers in the café reported higher happiness scores if the
experience was being lived with friends compared with strangers on the same
table (Msocial = 6.15, SD = 0.21 vs Malone = 5.36, SD = 0.18, F(1,162) = 8.14,
p  =  0.005). However, the happiness scores were not translated into other
Experiences in Turkey 239

meaningful variables in the eating out experience such as money or time

spent. There was no significant difference in terms of the time spent during
the experience (Malone = 23.69, SD = 3.480 vs Msocial = 30.776, SD = 2.929,
F(1,162) = 2.426, p = 0.701). It was also observed that alone consumers and
consumers in groups actually paid statistically similar amounts per person
in the cafe experience (Malone = TRY 8.81, SD = 0.62 vs Msocial = TRY 8.341,
SD = 0.52, F(1,162) = 8.14, p = 0.121). We next tested whether age, income
or gender significantly interacted with the conditions to influence the per-
ceived happiness, time spent and amount of money spent. Results revealed no
­significant interaction of income and experience type on perceived happiness
(p = 0.961), time (p = 0.635) and amount of money to spend (p = 0.743).
It was also necessary to collect happiness data from real-life experiences
that did not structurally involve social interactions. Such experiences are
voyeuristic in nature, such as performances, plays or concerts. Unlike other
experiences, we expected that happiness in voyeuristic experiences would
not vary in terms of attendance alone or in groups. We recruited a market
research agency to collect happiness and satisfaction data after watching
movies in actual theatres all over the city. The hours to conduct the study
were varied as well as the halls in order to capture a range of movie types
(comedy, drama, etc.). The data was collected with a 50% quota restriction.
Approximately 60 responses would be collected from people who watched the
movie with their friends or close ones, while 60 responses would be collected
from people who watched the movie alone. The major reason to choose movie
theatres was that it best represents a voyeuristic experience without conver-
sation and a deep focus, while at the same time the places to sit are in very
close proximity to each other. The main dependent variable was the happi-
ness garnered from the movie experience. Participation was totally voluntary.
One hundred twenty-three people (60 males, Mage = 22.48 years, SD = 7.62)
participated in the study. The respondents were not asked to indicate how
much money they spent for that experience, nor how much time they spent
for that experience since these are constant across movies. We also measured
the behavioural involvement of respondents with movies. They reported their
number of going to the movies in a month. The respondents also reported
some demographic information, including age, gender, education level and
level of income. Unlike social ­dining experience, there was no main effect
of the type of experience on happiness between experience with friends and
strangers’ conditions (Malone = 5.68, SD = 0.16 vs Msocial = 5.82, SD = 0.16,
F(1,121) = 0.359, p = 0.155). It is suggested that further research can investi-
gate more experience types that have variations of social feedback opportuni-
ties such as conferences, holidays, banks or campuses.
240 EZGI MERDIN-UYGUR

Findings of these two studies are in line with the literature. First of all,
we showed that in third-place experiences, which involved social interaction,
­people preferred experiences with beloved people. Consumers are happier if
they dine out with their friends or family, compared with dining out alone in
crowds. However, the difference in happiness levels is not translated into stra-
tegic outcomes. For example, consumers spent similar amounts of money and
time when they experience with loved ones or alone. More interestingly, we
failed to find a difference in happiness when the experience does not involve
social interaction. In such experiences, such as performances or m­ ovies, con-
sumers were equally happy regardless of being with friends or being alone.

CONCLUSION
We conclude with recommendations in terms of designing and delivering
experiences in Turkey. Being home to a diverse and also very large popu-
lation, it is imperative to move beyond tangible products marketing and
internalise experiential marketing if marketing activities are to succeed in
Turkey. Strategies need to go beyond promoting tangible qualities, such as
durability or price promotions, but rather should stimulate emotional con-
nectedness and intangible value of the experiences provided. Marketers of
experiences should know that all experiences are unique, incomparable to
its (especially material) alternatives and meant to be kept as memories for a
very long time.
The experiential economy will keep growing like all developed and devel-
oping economies. Moreover, with technological and social advancements, it is
even expected to surpass material products consumption. In addition, Turkey
belongs to a cultural group of countries with strong social bonds and high
connectedness. The connectedness makes social experiences highly preferable
to material product shopping. Experience providers will continue to learn
in this complex market. The learning process may involve best practices in
the market (i.e. third-wave coffeehouses) combined with continuous experi-
mental innovation (i.e. providing virtual reality tours for tourism industry).
Nevertheless, experiential consumers are emotional and continuously search-
ing for pleasurable and meaningful experiences (Raghavan, 2012).
An application of this knowledge centres on the gift economy and prac-
tices of gift-buying and gift-giving. More than 66% of Turkish people spend
more than TRY 100 per gift (Euromonitor International, 2016a). Since
gift-giving is inherently a social activity, the choice of experiences as gifts
has accelerated in the 21st century (Mintel, 2001). A gift in the shape of an
Experiences in Turkey 241

experience evokes the perception that the donor has not only devoted money
but also time to it (Clarke, 2006), especially if the gifted experience involves
both donor and recipient. Travel companies, airlines and hospitality indus-
try became pioneers of experiential gift-giving with their innovative prod-
ucts and campaigns such as Valentine’s Day treats. Such applications and
experiential adaptations for gifts are expected to increase with the rise of
experientialism.
A second concluding remark needs to be made about the blurred lines
between tangible products and intangible experiences. Just like a 3D TV, it
is possible to perceive the same product as a fully material object versus as
a complete experience. A recent service provided by the Ministry of Culture
and Tourism in Turkey is ‘MüzeKart’ (MuseumPass). Despite paying a fixed
amount for the physical card itself, this exchange is made for a collection of
multiple museum visits, namely multiple experiences (Uraltaş & Ekici, 2010).
Such services are critically positioned as products surpassing the lines of
physical products and intangible experiences.
The final takeaway from this analysis is the critical place of history and
traditions of Turkish people in their experiential choices. For example, going
even a thousand years back, tradition favours third places and socialised
­consumption in the Turkish context, considering the Ottoman heritage. It is
in the foreseeable future that new experiences will be designed inspired by the
strong tradition of this geography and with its own idiosyncrasies. Despite
increasing globalisation, a glocal approach to experience design and market-
ing is necessary for effectively marketing experiences as well as products. For
example, dining and catering services need to consider Turkish housewives
activity of ‘gold day gathering’ while designing their strategies. In a similar
vein, experiential providers had better to keep in mind the unique festivals,
fests, celebration styles and gathering styles of Turkish people in designing
their product. Only with ethnographic, sociological and historical approaches
that marketers can truly grasp the experiential landscape of Turkey.

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 SECTION 6
CREATE AND DELIVER
VALUE IN TURKEY
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CHAPTER 6
THE BIRTH OF OMNI-CHANNEL
MARKETING AND NEW
DYNAMICS OF CONSUMERS’
APPROACH TO RETAIL
CHANNELS

Selen Öztürk and Abdullah Okumuş

ABSTRACT

Nowadays companies are constantly changing their retail settings and

strategies to keep up with technological developments and consumer needs.
Digital transformation enabled one’s shopping experience to be more effi-
cient in terms of money, time, physical effort and other elements that deter-
mine the price a consumer has to pay. Channels of communication and
distribution have evolved, increased in number and also became integrated.
Mobile devices, mobile applications and location services help consum-
ers in their shopping journey. These developments have led us to a new
concept called omni-channel management. In theory, the omni-channel
refers to a single and unified channel experience with multiple touchpoints,
which include physical stores, online stores and direct marketing; mass

Marketing Management in Turkey, 247–272

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181018
247
248 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

communication channels (television, radio, print media, C2C, etc.), online

channels (social media, search engines, comparison sites, e-mail, display
etc.) and mobile channels (SMS, branded apps, etc.). Some examples of
omni-channel practices are click-reserve, click-collect, tablets as in-store
sales tools, in-store product order through mobile apps, etc.
In this chapter, the latest trends in marketing channels are discussed with
enabling digital technologies and relevant success factors. Challenges and
opportunities in implementing omni-channel strategies and several omni-
channel initiatives from Turkey are reported.
A research was employed to present consumers’ preferences of touchpoints/
channels for search, payment and delivery, and to find out the drivers that
lead consumers to use more than one channel simultaneously and/or inter-
changeably in a buying process. The results will guide the readers to under-
stand consumer behaviour in the new omni-channel world.
Keywords: Omni-channel; cross-channel; retailing; online; mobile;
channel choice

INTRODUCTION
Especially in the last decade, there has been an increase in the number of
marketing channels on offer and these channels have become enhanced
in capability for customer–business interactions. Neslin et al. (2006)
mentioned emerging channels (the Internet, kiosks, call centres, ATMs,
home shopping networks, etc.) as one of the most impressive new trends
in shopping. Today we can add relatively newer channels to existing ones,
such as social media, branded mobile applications and so on. The prolif-
eration of channels and brand touchpoints enabled businesses to be more
customer-centric as it is easier for them to provide each customer with a
unique and more customised shopping experience. The developments in
this era have brought fruitful opportunities as well as challenges that need
to be overcome by businesses operating in either offline or online environ-
ments, or both.
In the omni-channel management, the focal point is to manage and opti-
mise the offerings and performances of each channel. The concept of omni-
channel embraces an urgent need to employ multiple channels and to follow
a strategic approach for channel coordination. As Ailawadi and Farris (2017)
stated, the concept covers both distribution channels that bind suppliers
The Birth of Omni-Channel Marketing 249

to final consumers in terms of value delivery, and several business-owned,

paid or earned (free and not paid) communication channels. Cook (2014)
argued that consumers do not recognise or evaluate channels. Actually, they
experience the brand (the retailer in this case). Consumers can not label the
retailing concepts as cross- or omni-channel themselves. They only care for
their needs to be satisfied and gain their desired value, knowing only the
brand. The omni-channel approach is in the vision of businesses for handling
multiple-channel operations.
As channels intersect and become integrated and/or optimised, needs
and demands of consumers change accordingly. We also observe that peo-
ple are generally more involved in the decision-making process of any given
value exchange, and have a say in products offered by companies and even in
development of business models. Piotrowicz and Cuthbertson (2014) defined
the new customer as ‘connected mobile customer’ who can get the needed
information about anything, from anywhere, anytime and who can buy what
she/he wants through different options from various channels. Retailers made
it possible by removing channel limitations. Consumers now order a product
online and pick it up from any suitable location, or order it in-store but have
it delivered to his/her home. Online retailers employing multiple channels can
provide different product-return options offline. Some prefer to open facili-
ties, which are called showrooms, so that people can examine the products
before ordering online. There are various combinations of channels in use for
consumers.
Understanding the consumer journey in an omni-channel retail con-
cept is important because it is vital for companies to know the way
consumers think, feel and respond in an emerging market. The rapid
increase in demand of e-commerce has enabled adaptation of online
channels among retailers, which in turn has made consumer behaviour in
multi-channel environments an important topic of research (Shen, Cai, &
Guo, 2016).
In this chapter, after a detailed presentation of various aspects of omni-
channel retailing, we discussed results of our research conducted with the
following purposes: (1) to present the preferences of Turkish consumers
regarding retail touchpoints/channels, and (2) to disclose the drivers that
lead consumers move along between different channels in decision-making
process. As an emerging market, Turkey has high potential for new and
technology-driven business models by having a young and dynamic popu-
lation. Examination of markets from these aspects will provide customer
insights to multi-­channel retailers or retailers who want to expand their busi-
nesses to any other channel(s).
250 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

THE CONCEPT OF OMNI-CHANNEL

From Single to Omni-Channel

Throughout time, marketing channels have evolved into what we now call mul-
tiple channels and marketing channel networks (Watson, Worm, Palmatier, &
Ganesan, 2015). While traditional retailers are opening virtual stores to take
advantage of online channels (wider selection of products, convenience,
potential for price comparison; Rigby, 2011), many companies that exist only
on an online channel go on to open physical stores for the purpose of expand-
ing their market share by reaching a larger number of consumers, increasing
consumer satisfaction and providing efficiency in service and delivery pro-
cesses (Avery, Steenburgh, Deighton, & Caravella, 2012; Shen et al., 2016).
Regarding these developments in business models along with current tech-
nological innovations and cultural changes, the concepts of multi-channel,
cross-channel and omni-channel retailing have emerged. Up to the present,
there hasn’t been a clear or sharp distinction made between these terms in
the literature (Hübner, Holzapfel, & Kuhn, 2016). Multi-channel retailers are
those retailers who employ more than one channel as a business model.
To begin with, for multi-channel retailing, one of the most-cited studies
in the literature belongs to Neslin et al. (2006). The authors defined multi-
channel customer management as ‘the design, deployment, coordination,
and evaluation of channels to enhance customer value through effective
customer acquisition, retention, and development’ (Neslin et al., 2006,
p. 96). They define the key issue as the focus on consumer and consider chan-
nels as contact points (i.e. touchpoints) by which a two-way communication
occurs between businesses and customers. They particularly emphasised
business–customer interaction and studied interaction channels, other than
traditional media channels offering one-way communication. But we have to
note that in this retail concept, channels are managed as independent opera-
tions and there is a high possibility of conflict in channels such as cannibali-
sation of sales revenue (Picot-Coupey, Huré, & Piveteau, 2016). When there is
interdependence between channels, another approach gains attention, which
is called cross-channel retailing.
Cross-channel strategy is described as an upgraded version of multi-channel
management. In the cross-channel concept retailers consider the likelihood of
consumers switching channels through the buying process. There is some level
of data integration in terms of customer and product information and custom-
ised offers but still channels are not fully integrated and managed from a single
point of view. Thus, competition between channels still takes place. Beck and
The Birth of Omni-Channel Marketing 251

Rygl (2015, p. 175) gave a definition referring to Levy, Weitz, and Grewal (2013)
as ‘the set of activities involved in selling merchandise or services through more
than one channel or all widespread channels, whereby the customer can trigger
partial channel interaction and/or the retailer controls partial channel integra-
tion’. The authors pointed out the levels of interaction to differentiate terms.
Hence, we see the same kind of explanation for omni-channel, except ‘a full
channel integration’ instead of partial or limited integration.
Beck and Rygl (2015) provided examples based on the level of interaction/
integration. For cross-channel retailing, the examples are as follows: directions
are provided for other physical stores where the demanded product is available
(based on customers’ current location data), stock or pricing information is deliv-
ered through at least two channels, sales coupons can be used across all channels
except mobile store, etc. Regarding inventory, price and other related informa-
tion, we can talk of omni-channel approach only if merchandise and services are
consistent across all channels. Again, if coupons can be used in all channels or
customers have a return option for the product through all channels, there seems
to be a full integration which is supposed to take part in omni-channel retailing.
‘Omni’ is a Latin word which means ‘all’ or ‘of all things’. Compared with
previous generations, today’s consumers use much more technology in every-
day life. In fact, they are the ones that grew up with and influenced by tech-
nological developments. Our lifestyles have changed, and continue changing
along with our consumption habits and decision-making processes (Cook,
2014). Due to evolving trends with high technology, especially the Internet,
smart mobile devices and social media (Hansen & Sia, 2015), everyone of us
has a nearly uninterrupted connection with the world. Thus, omni-channel
strategy is the ultimate one that defines brand–consumer interplay as a unique
and meaningful experience, just like the definition given by Picot-Coupey
et al. (2016, p. 342) as ‘a unified approach’ that ‘allows a seamless customer
journey’.
Rigby (2011) was one of the first to define omni-channel retailing as ‘an
integrated sales experience that melds the advantages of physical stores with
the information-rich experience of online shopping’. The author mentioned
types of channels as online stores, physical stores, kiosks, direct mail, cat-
alogues, call centres, social media, mobile devices, gaming consoles, televi-
sions, networked appliances, home services, etc. The term ‘integration’ was
emphasised, as consumers wanted a combination of advantages of each men-
tioned channel.
However, a widely recognised description of omni-channel manage-
ment is ‘the synergetic management of the numerous available channels
and customer touchpoints, in such a way that the customer experience
252 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

across channels and the performance over channels is optimized’ (Verhoef,

Kannan, & Inman, 2015, p. 176). The authors explained the concept as
overcoming channel boundaries in retailing and seeing the real deal through
the eyes of the consumer. They discussed the new trend by comparing it
with multi-channel retailing. In multi-channel retailing, consumers see
channels separately, but in omni-channel they see the brand, not the chan-
nels, and experience the brand as a whole. Here different channels interact,
become integrated and can be used simultaneously. Also, omni-channel
phase includes more channels, as it includes both interactive (two-way) and
mass communication channels with every kind of consumer touchpoints in
several retail environments (offline–web–mobile). The authors defined the
channel scope, including the following: stores, online stores and direct mar-
keting, mass communication channels (television, radio, print media, C2C,
etc.), social media and mobile channels (SMS, branded apps through smart-
phone or tablets), and noted that the boundaries between interactive and
one-way communication channels seem to disappear. The touchpoints may
include customer-to-customer communications or through social media. Or
there may be more traditional brand encounters (Baxendale, Macdonald,
& Wilson, 2015) such as in-store communications or editorial and expert
reviews through traditional media.
Fed from all the explanations given in the literature, we present our own
definition of omni-channel retailing as follows:

Optimization approach in channel management by pursuing total integration among

each interaction point for brand-customer communications, brand offers and of all chan-
nels regarding design, management and control activities to deliver consistent and unique
consumer value by virtue of advanced technology.

Omni-Channel Retail Initiatives

There are three kinds of flow in retail channels, which are information, prod-
uct and funds (Bell, Gallino, & Moreno, 2014; Chopra, 2016). The basic pro-
cess in a traditional shopping transaction occurs as follows: the customer gets
the relevant information about the product and its price before ordering it.
The retailer gets the order, begins the delivery process by moving the prod-
uct to customer and the customer makes/transfer the payment. As expected,
there will be variations to this in a multiple-channel retailer. Thus, the prefer-
ences of the flow and use of each channel lead to a different type of omni-
channel strategy. Bell et al. (2014) presented the alternatives in omni-channel
retail by a matrix called ‘the information and fulfillment matrix’. Basically,
The Birth of Omni-Channel Marketing 253

the information can be delivered either online or offline (face-to-face), while a

customer may pick up the shopping items by visiting the store or she/he may
choose a home-delivery option. First is traditional retail, where the trans-
action occurs offline and customers get the product themselves. The second
is the opposite of the first one, called pureplay e-commerce, where custom-
ers shop online and products are delivered to them. To this end, those are
the ones that remind us of single-channel retailing. Another strategy, called
online retail plus showrooms, comes with an option that consumers can get
information face-to-face by examining the product and have a home delivery
option. The showrooms do not hold excess inventory for sale and customers
can place orders online only. Hence, retailers don’t need to spend much on
store infrastructure and inventory holding but can spend more on delivery
as in the second option. For products that people need to examine by touch-
ing and seeing in person, this option presented by multi-channel retailers has
more potential for the future. The opposite (information online-fulfillment
offline) is also available. Customers can search and buy online, but pick up
the product themselves, which is called a hybrid strategy that offers customers
a shorter waiting time.
Beginning with this distinction on the flow of information and products,
we can give examples of more of omni-channel initiatives today. The above
discussion of the shopping process did not directly refer to the transfer of
funds, i.e. where the payment takes place. For example, in the second option,
customers may have different alternatives to make payment at the door, etc.
Or for the fourth option, a customer can reserve the product online and then
makes payment physically in the store, maybe through mobile application
of that retailer. In the third option, a customer can choose a pick-up loca-
tion other than the store if available. We can exemplify also by after-sales
processes (product return options) of a multi-channel retailer, whether the
customer uses a cargo agency or returns directly to a store.
In the omni-channel marketing literature, the so-called strategies are
named according to the levels of channel integration or distribution fulfill-
ment: click-collect (suitable choice of pick-up location or pick up in-store),
click-ship to store (a form of click-collect), click-ship from store (as in
pureplay e-commerce), click-reserve (reserve and collect), buy online-return
in-store, etc.
‘Click-collect’ (buy/order online-pick up in-store) is actually the fourth
option we have mentioned above. It refers to the ability of ordering the
product online but getting the ordered product from a store and/or from a
pick-up location. The retailers benefit from this by sharing the inventory
information of physical stores online. On the other hand, consumers may
254 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

have the benefits of each channel, for example ease of access to informa-
tion in online channel and absence of shipping charges in offline channel
(Chatterjee, 2010). Another initiative is ‘ordering while in-store’, where
customers order the product through own mobile devices or self-service
technologies provided by the retailer (Piotrowicz & Cuthbertson, 2014).
This might actually be discussed related to the above-mentioned third
option.
The omni-channel vision is relatively new for Turkey, just as it is for many
global brands since its appearance in the last decade. Retail sector is a grow-
ing one with many global and local players. We have just begin to see such
initiatives in Turkey. Besides global multi-channel brands (clothing and tex-
tile sector at most) that offer various delivery options in Turkey (such as click-
collect, same-day delivery), Turkish retailers have anticipated the opportunity
and created their own initiatives. Some well-recognised Turkish fast-fash-
ion retail brands have begun in-store collection of online orders and con-
tinue to upgrade delivery options, maybe to free shipping. For fast-fashion
and accessories, shoes, bags, etc., several brands continue to come up with
these types of initiatives every day.
For retailers selling technological goods, consumers mostly seek online
inventory visibility, personalised offers based on previous purchases at
various channels and in-store return options. Many top-selling Turkish
multi-channel retail brands in this category offer timely online inventory
checking options; besides some of them provide click-collect, return in-
store, express delivery services. Another growing retail sector, home appli-
ances and furniture, includes brands that began operating online but have
chosen to expand in physical stores, in response to demand for customer
showrooming behaviour, and also includes brands that were once a brick-
and-mortar retailer only. Apart from what they sell, each multi-channel
retailer has to cooperate with more demanding consumers of today and
evolve through digitalisation. Mobile commerce offers us many possibili-
ties. Now, branded mobile apps can offer features such as personalised dis-
counts or coupons, location-based notifications for promotions, in-store
payment through mobile devices, etc. Many brands launch mobile stores
integrated with web-stores, using location-based and personal data to
provide a superior customer service, online-only offers and services that a
multi-channel retailer can offer to its customers. Such consumption style
incorporating mobile devices in buying process gains consumers’ attention
for newer, possibly faster and personalised customer solutions. Both offline
and online retailers need to see and make use of opportunities of mobile
technologies to compete in the international arena. In the next section, we
focus on this subject.
The Birth of Omni-Channel Marketing 255

Digital Revolution in Retailing

Developments in retail channels are the result of new technologies: mobile

devices such as smartphones and tablets with included software (branded apps,
applications on mobile payments, e-wallets, e-coupons, location-based ser-
vices, etc.). These recent implementations changed business models, reduced
costs and revolutionised the way value is transferred to end users. This also
made pricing and promotional efforts more customised. Moreover, the tradi-
tional stores are equipped with intelligent technology that provides consum-
ers with time, cost and effort efficiency. Some examples are virtual screens,
virtual mirrors, self-service kiosks, QR codes (Piotrowicz & Cuthbertson,
2014), radio frequency identification systems (RFID), near-field communi-
cation systems (NFC) and augment-reality interactive technology in stores
(Roy, Balaji, Sadeque, Nguyen, & Melewar, 2017).
From the retailers’ point of view, digitalisation has made it possible to
follow up and manage several channels effectively (Ailawadi & Farris, 2017).
Managers make use of comprehensive consumer data (Hagberg, Sundstrom,
& Egels-Zandén, 2016) provided by integrated mobile and wireless channels
to improve their services and management operations (Renko & Druzijanic,
2014). Roy et al. (2017) used the term ‘smart retailing’ that refers to the inter-
actions between customers, smart objects and retail touchpoints. The authors
define the concept as follows:

An interactive and connected retail system which supports the seamless management of
different customer touchpoints to personalize the customer experience across different
touchpoints and optimize performance over these touchpoints.

Based on this definition, the relation of this concept to omni-channel retail

management is obvious.
On the other hand, use of mobile devices has changed the way consum-
ers perceive channel attributes. Mobile technologies come with new solutions
to the problems consumers encounter in the decision-making process while
searching for information, purchasing the product and returning, if required.
For fast payment, consumers prefer direct use of bank cards, contactless
payments, self-cash desks (Priporas, Stylos, & Fotiadis, 2017), scan-and-go
technologies (Grewal, Roggeveen, & Nordfält, 2017). To compare product
information, consumers make use of informative features of a retailer’s web-
site or may use the links provided in search engines by the retailer itself as an
advertisement. The data held within is being used in making broader sense of
it by data storage/processing technologies. In return, present and continuous
use of smart mobile devices and related services support omni-channel initia-
tives of retailers (Kim & Hahn, 2015).
256 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

Factors for Omni-Channel Success and Channel Integration

Cummins, Peltier, and Dixon (2016) summarised omni-channel success

factors relating to previous studies of Hansen and Sia (2015); Herhausen,
Binder, Schoegela, and Herrmann (2015); Piotrowicz and Cuthbertson (2014)
and Verhoef et al. (2015) as follows: Synthesising online, offline and personal
interactions, working in coordination with channel partners, using technol-
ogy in every aspect of channel management, giving weight to data analytics,
monitoring consumers’ journey between channels based on channel pref-
erences and switching costs, focussing on brand management and brand–
customer interplay, and enabling problem-solving remedies anytime and
anywhere. Above all, nowadays channel synergies and utility might be very
important factors for a consumer to prefer a multi-channel retailer among
others. Retailers need to pay attention to the timelines of interactions, con-
sumer flexibility to shop from anywhere and anytime, possession of informa-
tion and other characteristics of communication processes to get the desired
outcome.
As Berman and Thelen (2004) stated, when separate channels of a retailer
are properly integrated, consumers see the brand as a single entity with sev-
eral distribution alternatives. A well-integrated strategy brings the advantages
of multi-channel retailing (such as using unique strengths of each chan-
nel, leveraging corporate assets and increasing sales volume, thus profits)
to a higher level. The authors emphasised integrating promotional activi-
ties, product assortment, product and price information and undoubtedly
consumer data.

Challenges for Marketing and Logistics

Proliferation of channels increases the complexity and possibility of mak-

ing mistakes from a logistics point of view (Hübner et al., 2016). Companies
operating with multiple channels need different or more tailored supply chain
design. As mentioned before, there are plenty of options for consumers shop-
ping from multiple-channel retailers in terms of distribution fulfilment (e.g.
store delivery, home delivery, store pick-up). An online retailer may open a
showroom to exhibit products to customers and to have a storage space as
well. The customer can order it while in store through self-service technolo-
gies or their own mobile devices (Piotrowicz & Cuthbertson, 2014). To be
able to do so, these options must be designed from the start with the help
The Birth of Omni-Channel Marketing 257

of information technology for inbound and outbound logistics operations.

Because of independent activities in each channel and stock or fund transfer
activities across channels, these may lead to difficulties in maintaining proper
control over them (Saghiri, Wilding, Mena, & Bourlakis, 2017). The inven-
tory or order information may not balance, or customer data may mismatch
for the items purchased and payment transfers (readers may see the work
of Li, Luo, Xie, Feng, and Du (2015) on data convergence in omni-channel
environments), in-store return/change process of a product purchased from
an online store can be problematic for sales inventory controls and for pres-
entation of sales revenue, or a very active channel can cannibalise sales of
other channels (Kollmann, Kuckertz, & Kayser, 2012), etc. This situation
may also cause conflicts between channel members (Ailawadi & Farris, 2017),
and above all between channel managers if not properly handled. Verhoef
et al. (2010) discussed the excessive amount of consumer contacts in today’s
marketing environment and consumers’ unfavourable reactions when they are
exposed to too many. Authors presented challenges of customer relationship
management in data-rich multi-channel environments.
The increasing convenience (Chatterjee, 2010), effort and time efficiency
that omni-channel brings can be well appreciated by consumers, but learning
phases of the new technologies or some requirements on personal or histori-
cal data, including search and other activities in various channels (e.g. loca-
tion-based data through tracking mobile devices, cookies integrated in online
and mobile stores, filing social media loggings and previewed online content
in social media, etc.) can cause some hesitations. Chopra (2016) discussed the
unwillingness to use credit cards when shopping online in emerging markets
and defined the situation as consumers’ risk aversion for placing financial
information online.

CONSUMER BEHAVIOUR IN TODAY’S RETAIL

ENVIRONMENT
Internet and mobile technologies with developing social networks have
made connection between consumers limitless, and the consumers are more
empowered (Chou, Shen, Chiu, & Chou, 2016). Consumers perform searching
activities on several channels before buying a product, also move back and
forth between channels through the process. Verhoef et al. (2015) defined
this behaviour with the term ‘research shopping’. Also, with the help of
258 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

aforementioned developments in information technologies and change in

retail infrastructures, we tend to be more involved in the buying process.
Kalyanam and Tsay (2013, p. 19) defined the process as hybrid shopping, i.e.
‘jumping across channels in the path to a single purchase’.
A specific form of this is ‘webrooming’, which means seeking information
online but shopping offline. Surfing the web through search engines, social
media, blogs or online communities is free of cost. It is attractive because it
is more convenient than seeking information face-to-face, wandering around
many stores or finding someone who is knowledgeable. Customers like the
advantages of digital platforms such as all-time accessibility, wider range of
brands and product information, speed in search and payment, etc. (Chou
et al., 2016). The opposite behaviour is called ‘showrooming’, in which the
searching process occurs in offline retail environments but buying activity
takes place on a website (probably a competitor’s) (Kalyanam & Tsay, 2013;
Li et al., 2015). Arora, Singha, and Sahney (2017) shed light on showroom-
ing behaviour with a detailed framework. As these behaviours gain atten-
tion, Ailawadi and Farris (2017) referred to mobile technologies as a bridge
between the web and physical stores and discussed its importance on consum-
ers’ research shopping activities.
In a broader framework, such activities could be explained under ‘con-
sumer free-riding behaviour’ concept in multi-channel retail environments.
Van Baal and Dach (2005, p. 76) defined free-riding behaviour as the process
of consumers using one retailer’s channel to obtain information and compare
alternatives only but switching to another retailer to make the purchase. But
free-riding across the same retailer’s channels is possible also if that company
owns several channels.
Chou et al. (2016) defined free-riding as both switching between retail-
ers and switching the shopping channel. When a customer does not change
the retail channel but only the choice of retail brand is changed, the behav-
iour is called ‘within-channel switching behaviour’. However, when a cus-
tomer searches through a retailer’s website but purchases the product from
another retailer’s physical store, the term ‘cross-channel free-riding’ is more
preferred (Chiu, Hsieh, Roan, Tseng, & Hsieh, 2011). In summary, free-
riding behaviour means, people benefiting from a resource that they are
not paying for. Since retailers cannot distinguish a buyer from a research
shopper (Van Baal & Dach, 2005), probable strategy is to make the best
use of channel/touchpoint management in terms of customer service and
brand–customer interactions. Free-riding possibility only decreases in
situations where a supplier uses a backward channel integration, selling
through owned channels.
The Birth of Omni-Channel Marketing 259

PREVIOUS RESEARCH ON CONSUMERS’

CHANNEL PREFERENCES
Consumers’ channel preferences may differ based on personal, situational
and product/brand-related factors. A person can prefer a channel to another
on a specific occasion or use multiple channels simultaneously. Sometimes
previous experiences with a retailer and/or one of its channels (Herhausen
et al., 2015; Yang, Lu, Zhao, & Gupta, 2011), technological abilities and use of
smart/mobile devices (Zagel, Niels, & Bodendorf, 2017) or the fear of digitali-
sation triggers that; sometimes consumers’ search and shopping motivations
(Rodríguez-Torrico, Cabezudo, & San-Martín, 2017), shopping orientations
(Chatterjee, 2010) and different demographics (Bilgicer, Jedidi, Lehmann, &
Neslin, 2015; Konuş, Verhoef, & Neslin, 2008) can determine the process.
Besides personal factors, previous research has emphasised several oth-
ers that affect consumer attitudes and channel choice (adoption or migra-
tion) which are as follows: marketing communications (Ansari, Mela, &
Neslin, 2008; Valentini, Montaguti, & Neslin, 2011), product type/character-
istics (Chatterjee & Kumar, 2017; Shen et al., 2016; Van Baal & Dach, 2005;
Yurova, Rippé, Weisfeld-Spolter, Sussan, & Arndt, 2017), level of interactiv-
ity (Roy et al., 2017), level of channel integration/cross-channel competition
(Bendoly, Blocher, Bretthauer, Krishnan, & Venkataramanan, 2005; Emrich,
Paul, & Rudolph, 2015; Gong, Smith, & Telang, 2015; Li, Konuş, Langerak,
& Weggeman, 2017) and different channel attributes in the phases of deci-
sion-making (Alexander & Olivares Alvarado, 2014; Gensler, Neslin, &
Verhoef, 2017; Gensler, Verhoef, & Böhm, 2012; Kowatsch & Maass, 2010;
Verhoef, Neslin, and Vroomen, 2007).

Drivers of Cross-Channel Information Search

Verhoef et al. (2007) discussed differences in channel attributes as drivers

of research shopping, e.g. convenience and flexibility of web and absence of
pressure by the sales staff, the shopping experience in physical stores, etc.
In phases of search and evaluation, consumers aim to maximise accuracy
by getting reliable and useful information, demand minimum cognitive and
physical effort, and enjoyment (Broilo, Espartel, & Basso, 2016). Konuş et al.
(2008) categorised multi-channel choice by benefit–cost approach as financial
savings, switching and search value, and seeking entertainment, exploration
and self-expression as more of hedonic motivations. Dholakia et al. (2010)
defined consumer motivations to use retail channels as obtaining a good deal,
260 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

demonstrating expertise in channel selection and use to convey its symbolic

meaning, being part of social group, and achieving a routine in the shopping
process (Balasubramanian, Raghunathan, & Mahajan, 2005).
There is general understanding that online channel is more cost-efficient
than others (Ansari et al., 2008). Price and product information transpar-
ency of online retail attracts consumers (Rapp, Baker, Bachrach, Ogilvie, &
Beitelspacher, 2015). Chatterjee (2010) argued that price consciousness
level of customers affects free-riding behaviour. Thus, we interpret that
price is important product information and consumers tend to engage
in free-riding with cost-saving motivation. Besides price consciousness
and bargain behaviour, minimisation of perceived effort (convenience) is
also the issue. The results of the study by Voorveld, Smit, Neijens, and
Bronner (2016) addressed that ‘consumers use more online channels when
making an online purchase than when making an offline purchase’ and
count on offline channels in first-time purchases. Heitz-Spahn (2013) also
studied shopping motives for cross-channel free-riding by both rational
and hedonic values: time saving (convenience), possession needs, mon-
etary savings by price comparison, seeking variety and perceived shopping
enjoyment.

METHODOLOGY AND RESEARCH FINDINGS

Consumers can prefer specific touchpoints and/or channels to one another.
For instance, a person may encounter a product in a newspaper ad, can gather
product-related information online through quick gaze into online stores
and social media, but decide to make the purchase from a brick-and-mortar
retailer or vice versa. From marketing point of view, presenting how consum-
ers see and approach those channels/touchpoints will be beneficial by gains
in customer insight on channel design and coordination practices. Also, to be
able to understand what consumer expects when moving between different
channels in a buying process is advantageous because it can give clues for the
future omni-channel initiatives of top priority.
So our research has two main goals: to present the preferences of Turkish
consumers regarding retail touchpoints/channels in search of product infor-
mation and purchasing, and to bring out the drivers that lead those con-
sumers to move between different channels (store, web and mobile) in the
decision-making process.
The research data was gathered through face-to-face surveys in May 2017
in Istanbul, Turkey. The location was thought to be appropriate as the sample
The Birth of Omni-Channel Marketing 261

may represent the Turkish population with regard to diverse socioeconomic

characteristics, lifestyle and cultural features. In total, 402 respondents were
reached and completed the survey. But some were considered to be invalid
because of inappropriate or biased answers and the missing data. After those
responses were eliminated, the final sample of valid responses totalled 371.1
First we asked the respondents which touchpoints/channels they preferred
most for information search and evaluation phases of buying process of
durable/semi-durable goods such as home appliances, technological goods,
clothing, accessories, etc. (on a rating scale, from 1: never to 5: always). We
categorised offline and online consumer touchpoints based on previous work
(Broilo et al., 2016; Manser Payne, Peltier, & Barger, 2017) and current infor-
mation sources in use.
Based on Fig. 1, we see that respondents attach nearly the same level of
importance to physical and online stores. Their preferences for collecting
information through mobile devices and mass communication channels are
in moderate levels. Most of them consult family and friends for that kind
of purchase. Surfing web through search engines has the ultimate attention
of people for gathering information, and social media is also prefered above
average. This means that they use online channels for search and to get advice,
and search engines are their first stop for the pre-purchase phase.
Fig. 2 illustrates the choices of respondents for purchase channels. For
this specific product category, offline store is mostly prefered for payment.
Call centres and paying through mobile devices in-store have less usage den-
sity. E-wallets and other mobile contactless payment technologies are still
new for them.

Fig. 1.  Channel/Touchpoint Choice for Information Search.

262 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

Fig. 2.  Retail Channel Choice for Purchase.

Fig. 3.  Retail Channel Choice for Delivery.

Among delivery options, we see almost the same usage density for offline
stores as shown in Fig. 3. Offline stores appear to be superior than online for
durable goods. Online purchase and pick up in-store (i.e. click-collect) still
have not gained much attention among Turkish consumers. But the same
day/fast delivery option is preferred for immediate possession.
The second aim of the study was to find out the factors that drive con-
sumers to use multiple channels simultaneously and/or interchangeably in
a buying process. In this respect, a structural model analysing the anteced-
ents of cross-channel information search and purchase behaviour was tested.
The Birth of Omni-Channel Marketing 263

The theoretical base model consists of information availability, search and

purchase convenience, purchase cost, selection of a superior service, enter-
tainment and trend-hunting as drivers of cross-channel information search
intention and purchase behaviour. The measurement items are derived from
literature: drivers of information search in multiple environments (Eastlick &
Feinberg, 1999; Elliott, Fu, & Speck, 2012; Heitz-Spahn, 2013; Hsiao, Ju
Rebecca Yen, & Li, 2012; Kleijnen, De Ruyter, & Wetzels, 2007; Konuş et al.,
2008; Schröder & Zaharia, 2008; To, Liao, & Lin, 2007), search and purchase
intention (Yu, Niehm, & Russell, 2011). All items (34 in total) were measured
on a 5-point interval scale (1 – strongly disagree, 5 – strongly agree).
For a structural model test, a two-stage approach proposed by Anderson
and Gerbing (1988) was followed. The final measurement model was reached
through recommendations of Hair, Anderson, Babin, and Black (2010),
Malhotra (2010) and Kline (2010) for factor structures and for model good-
ness of fit to be in acceptable ranges.2
The main assumption was that higher levels of consumer motivation for
aforementioned factors increased consumers’ use of multiple channels for
both search and purchase intention. The final structural model is shown
in Fig. 4. The revised form of equations refer that beliefs on information

Fig. 4.  Final Structural Model of Cross-Channel Search and Purchase Intention.
264 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

availability (product assortment and usefulness of information), service selec-

tion and trend-hunting affect cross-channel information search whereas seeking
purchase convenience, cost saving and entertainment directly affect cross-
channel purchase intention. There is a high incidence that consumers engag-
ing in cross-channel search activity are very likely to move between channels
for shopping as well.

DISCUSSION AND CONCLUSIONS

To summarise all, we can interpret relations between the concepts of multi-,
cross- and omni-channel according to their main purposes. In multi-channel
retailing, the aim is to increase the number of channels as much as possi-
ble whereas maintaining and increasing channel-to-channel support is the
objective of cross-channel retailing. Omni-channel retailing ensures all chan-
nels are integrated and optimised for processes, capabilities and customer
data. In fact, we need to approach the concept of omni-channel as a single
channel with multiple touchpoints. The main features of the concept of omni-
channel are as follows (Picot-Coupey et al., 2016): It involves more channels/
touchpoints, those channels do not have borders in-between and brand–cus-
tomer experience is more apparent.
First, this study displays the preferences of Turkish consumers for infor-
mation and retail channels. It is apperant that a consumer may use vari-
ous touchpoints to engage in several activities in a single buying process.
Consumers prefer a diverse selection of information sources, and each can
be unique in nature for relative consumer benefits. Relatively higher pref-
erence of in-store payments may relate to consumers’ risk perceptions for
sharing personal financial information online, as in the study of Chopra
(2016) on emerging markets, or it may be explained by the nature of chosen
product category. Purchasing from physical stores is superior than using
online channels due to immediate possesion needs and/or ability to physi-
cally examine the product. The main motives of each may need further
attention.
Based on our research results, motivation to find a great deal of prod-
ucts/brands and related information, and to get a chance of selecting a better
serving channel are found to be equally important for Turkish consumers
to use multiple channels for search. Subsequently, catching up with new
products and trends is an important motive for cross-channel information
search behaviour. Purchase convenience, enjoyment of the shopping process
in multiple environments and monetary savings are the motives effective in
The Birth of Omni-Channel Marketing 265

cross-channel purchase intention in the order of relative effects. In a product

purchase, seeking convenience is the ultimate reason. This result is in line
with the referred literature. The subsequent driver is entertainment, as might
be expected from the joy of shopping using mobile technologies and devices
embedded in today’s shopping environment.

RECOMMENDATIONS
Making necessary connections between various channels should be the prior
aim of marketing managers. Since consumers can use these channels together
in a search or purchase activity, brands need to be in touch with follow-
ers and convey the same brand-experience as well through all channels. As
Verhoef et al. (2015) stated, now people use various channels or touchpoints
in ­decision-making constantly, interchangeably and simultaneously. It might
be a favourable thing for a customer to start the ordering process from online
channel, e.g. her/his tablet, but continue and end the buying transaction in-
store, or vice versa. Besides integrating systems, integration of prices might
be a special topic as consumers need price information to be consistent, but
they may also seek lower prices or special deals on the web. This issue is to be
addressed in future studies on Turkey.
The ongoing digital transformation still needs some level of acceleration.
Since consumers of today and the near future belong to an age cohort called
Generation Z (Priporas et al., 2017) who have yet to step into adulthood and
are more demanding, more knowledgeable and more empowered as consum-
ers. Today’s consumers are always ready to buy, and the retailers ought to be
ready to sell as well all the time (Pantano & Priporas, 2016).
This research presents how Turkish consumers approach retail channels
and how they make use of various alternatives. It is both exploratory and
descriptive in nature by being the first to describe this subject. As mentioned
previously, Turkey has a young and dynamic population. Use of Internet
and information technologies and mobile penetration continue to rise as we
research. In practice, we recommend retail brands in Turkey cater to conveni-
ence and the variety-seeking nature of consumers by enabling cross-device
and cross-channel integration of services. The case of cross-channel purchas-
ing could be interpreted as a major drawback but it brings new opportuni-
ties to wise customers. Combining these issues with entertaining features may
lead to greater retail success. Several omni-channel initiatives are in use, but
retailers still need to gain consumers’ attention. For example, click-collect
strategy is preferred as a distribution strategy and consumers may benefit
266 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

from it by not waiting in long queues, not waiting for days for the product
to be delivered, having access to the purchased item at weekends when home
delivery is not an option, etc. Retail brands need to communicate more about
these as it may be a win–win situation for both sides in the retail business of
the future. According to the results, online touchpoints are widely used, but
physical stores are still preferred more as a purchase channel considering the
product categories referred to. Underlying reasons might be examined in the
further research.

NOTES

1.  The survey sample represents a youth population, chosen in line with the accept-
ance and use behaviour of new technologies and retail initiatives. The demographics
are reported as 49% male and 51% female; 46% is aged between 18 and 21 years, 33%
is between 22 and 25 years, 11% is between 26 and 29 years and 10% is aged above 30
years; 64% of the respondents have high school and 36% have undergraduate/gradu-
ate degrees. As for household income, 49% of the respondents have 3,000 TL and less,
32% have 3,001–6,000 TL, 11% have 6,001–9,000 TL and 8% have 9,001 TL and above
income per month.
2.  The results of the final measurement model and the details on construct reli-
abilities, convergent and discriminant validity checks (Fornell & Larcker, 1981) are
reported in the Appendix.

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The Birth of Omni-Channel Marketing 271

APPENDIX
Table A1.  Results on Final Measurement Model, Construct
Reliability and Validity.
Construct Item Standardised t value R2 – Construct Average Cronbach’s
Loadings Explained Reliability Variance Alpha
Variance (CR) Extracted
(AVE)

Information IA1 0.73 15.17 0.53 0.84 0.64 0.82

availability IA2 0.89 19.70 0.80
IA3 0.82 15.03 0.53
Convenience CO4 0.83 16.29 0.68 0.86 0.75 0.85
CO5 0.90 17.90 0.82
Purchase cost PC1 0.81 17.16 0.66 0.83 0.61 0.82
PC2 0.86 18.58 0.74
PC3 0.67 13.47 0.44
Service selection SS1 0.81 17.58 0.66 0.83 0.62 0.83
SS2 0.81 17.43 0.65
SS3 0.74 15.49 0.55
Entertainment EN1 0.67 13.58 0.45 0.83 0.63 0.77
EN2 0.82 17.36 0.67
EN4 0.87 18.73 0.76
Trend-hunting TH1 0.72 15.38 0.52 0.87 0.68 0.86
TH2 0.91 21.20 0.82
TH3 0.84 19.06 0.71
Cross-channel CCS1 0.70 14.33 0.49 0.81 0.59 0.80
Search CCS2 0.86 18.70 0.75
CCS3 0.73 14.94 0.53
Cross-channel CCP1 0.70 12.99 0.50 0.67 0.50 0.67
purchase CCP2 0.72 13.19 0.51
intention

Notes: Goodness of fit statistics of the measurement model: Xi2/df: 1.740, RMSEA: 0.045, NFI:
0.96, NNFI: 0.98, IFI: 0.98, CFI: 0.98, GFI: 0.93, AGFI: 0.90, RMR: 0.039, SRMR: 0.045.
Goodness of fit statistics of the final structural model: Xi2/df: 1.725, RMSEA: 0.044, NFI: 0.96,
NNFI: 0.98, IFI: 0.98, CFI: 0.98, GFI: 0.93, AGFI: 0.90, RMR: 0.041, SRMR: 0.047.
272 SELEN ÖZTÜRK AND ABDULLAH OKUMUŞ

Table A2.  Discriminant Validity Checks.

Construct IA CO PC SS EN TH CCS CCP

Information 0.80
Availability
Convenience 0.31 0.87
Purchase Cost 0.26 0.42 0.78
Service Selection 0.49 0.42 0.49 0.79
Entertainment 0.14 0.21 0.12 0.14 0.79
Trend-hunting 0.42 0.34 0.24 0.49 0.35 0.82
Cross-channel 0.49 0.33 0.26 0.51 0.24 0.46 0.77
search
Cross-channel 0.39 0.52 0.43 0.59 0.37 0.45 0.64 0.71
purchase
intention

Notes: The diagonal values represent square root of AVE, and the lower cells represent the
correlations among constructs. As seen, square root of AVE for each construct is higher than
the correlations.
 SECTION 7
TURKISH WAY OF MARKETING
COMMUNICATION
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CHAPTER 7.1
IMC: INTEGRATED MARKETING
COMMUNICATION

Elif Yurdakul and Aslı Bozdağ

ABSTRACT

Marketing has changed rapidly over the last four decades. Not a core disci-
pline itself, its applications have become more complicated, more dynamic
and more customised than ever before. Achieving differentiation in product
is as difficult as reaching an aurora. Instead, marketers use communication
tools to draw attention and increase awareness. But in the era of artificial
intelligence, number of communication channels, competitors and lack of
patience to read or listen to branded messages are not helping to reach
targets. To keep the brands’ images clear and memorable, marketers need
to create powerful content to deliver through any touchpoints. And that
means INTEGRATION: ‘coordinating the company’s many communica-
tion channels to deliver a clear, consistent and compelling message about
the organisation and its products’.
The dynamics of marketing communication mix can vary in different
geographies. Being a developing country makes Turkey a fast mover but
unstable. Although coping with these dynamics is not easy, it could be
learnt. This chapter aims to help the reader find some useful information
about Integrated Marketing Communication applications in the Turkish
market.

Marketing Management in Turkey, 275–297

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181020
275
276 ELIF YURDAKUL AND ASLI BOZDAĞ

Keywords: Integrated marketing communication; marketing

communication mix; trends in Turkey; product placement virtual/
augmented/mixed reality; content marketing; experiential marketing

INTRODUCTION
Turkey is an interesting market in many respects. Positioned in-between very
different cultures from European to Asian and Middle Eastern, it has very
unique dynamics and traditions. First of all, Turkish people are friendly,
emotional and like to communicate very much. The more the communica-
tion, the more the expertise in encoding and decoding. This means, you need
to be sincere in your messages. Turkish people like social interaction and, of
course, give attention to other’s opinions, which generates a huge potential
for positive and negative word-of-mouth campaigns.
A few hours after the 7.2 magnitude Van Earthquake struck the Van
province of the eastern Turkey on October 25, 2011, a Facebook message
posted by Onur Air, a Turkish airline company, caused a major crisis. Onur
Air announced that it would donate 0.50 Turkish liras (TRY) per person for
existing Facebook fans, but will give the same number for every new mem-
ber and that the goal is to donate TRY 250,000 (i.e. to reach 500,000 fans in
total). As people thought the donation was the way to increase the number
of fans of the airline, the reaction grew like an avalanche within a few hours.
It was a trending topic (TT) for 15–20 minutes and the airline received thou-
sands of negative comments.
Integration of marketing communication efforts may protect you from
being misunderstood by consumers and reinforce brand image through coher-
ent messages even if they are carried by different channels. In the following
chapter, we will look into the basics and importance of Integrated Marketing
Communication (IMC), marketing communication mix and trends in Turkey,
big data and some prohibitions and regulations. Understanding these con-
cepts may help us to find our way to integration.

CHANGING COMMUNICATION ENVIRONMENT

The rising value of Internet and technology brings two major fundamentals
into marketers’ lives: multiplication of media and demassification of con-
sumer markets (Kitchen & Burgmann, 2010).
Integrated Marketing Communication 277

According to eMarketer (2017b), global digital ad spending will reach

$223.74 billion in 2017 and represents the 38.3% of the total media outlay fig-
ure of $583.91 billion. Facebook and Google continue to dominate the digital
market. Mobile advertising will drive digital ad spending, which accounts for
63.3% of digital and 24.3% of total media ad spending.
Kotler and Armstrong (2016) underline that companies are doing more
narrowcasting and less broadcasting. Opportunity that digital channels
provide to reach smaller customer segments with more customised content
is causing higher digital marketing spending. eMarketer (2016) (digital ad
spending) made a forecast that in the United States, the total digital ad spend-
ing in 2017 would surpass TV for the first time.
Google’s share of the US search ad revenues would be 78% in 2017 (eMar-
keter, 2017a). The reason behind this success is the shift in consumer behav-
iour; we are googling the products and features before taking any action.
As the Internet penetrates Turkey, both commercial and individual users
are rising. According to the Turkish Statistical Institute’s (2016b) survey,
in 2017, 93.7% of organisations with at least 10 persons employed used
Internet in 2016. Despite this figure, the website owning ratio was 66% and
the social media usage ratio was 38.1% in the same year. Social networks
were the most common type of social media used by 94.9% of organisations.
The ratio of computer and the Internet usage, respectively, was 64.1% and
70.5% for men, and 45.9% and 51.9% for women (Turkish Statistical Institute,
2016a); 82.4% of individuals used Internet for social networks, 74.5% for
watching video content from sharing services, 69.5% for reading online news,
newspapers and news magazines, 65.9% for seeking health-related informa-
tion, 65.5% for finding information about goods and services and 63.7% used
Internet for listening to music.
The digital ad spending of TRY1.872 million, with a growing rate of 13.7%,
accounted for 24.17% of the total media ad spending in 2016. TRY1.059 mil-
lion was invested for display, and mobile platforms usage reached to TRY601
million (AdEx Turkey, 2016).
As every development has an opposite side, the speed of social media and
word of mouth (WOM) can be employed against brands and organisations.
Anti-marketing campaigns and boycotts are mostly related to political devel-
opments in Turkey and can be caused by any statement of organisation’s
leaders, but sometimes, like the Danone case, brands may be targeted by mali-
cious attacks. The risk is higher for convenience goods.
Between 2005 and 2007, one million Turkish people received an email
claimed to be written by Professor Turan Karadeniz; telling how Danone
products were harmful for the mental health of children. The fictional message
278 ELIF YURDAKUL AND ASLI BOZDAĞ

spread to a further 5 million people by WOM, resulting in 26% shrinking in

total sales of Danino brand, which was one of the costs of the detrimental
campaign (Kaufmann, 2014). Another case was experienced after the Turkish
Constitutional Referendum in April 2017. The chairman of Yaşar Holding,
one of the most powerful holdings in Turkey, had some political tweets after
the referendum. Consumers’ reaction was at tweet-speed and a boycott was
announced with the #pınarboycot hashtag. Within 10 days, total sales of
food and beverage products of Pınar, the flagship company of the holding,
dropped by 25% (Patronlar Dünyası, 2017).
Sustainability and social change movements are other issues are gaining
more importance year after year as we face increasing number of social and
environmental problems. These trends direct businesses to make a move at
least at an organisational level. They have been communicating their sustain-
ability policies louder than ever, organising several campaigns at the same
time, training their employees for a more environment-friendly life.

INTEGRATED BIG DATA

Digitalisation of businesses and born-digital companies have changed the
data management rules from one-dimensional purchasing data coming from
loyalty programmes to much more complex correlations such as Amazon’s
‘Frequently bought together’ suggestions.
Around 2.5 quintillion bytes of data is being created every day, and 90% of
the data in the world today has been created in the last two years alone (IBM,
2017). McAfee and Brynjolfsson (2012) mentioned that ‘each of us is a walk-
ing data generator’. Even in our sleep, health tracking applications measure
the sleep time and compares the data with community. These authors identi-
fied three factors for the effectiveness of big data: volume, velocity and variety.
It is easier and cheaper than ever to get the big data that your business
needs. Tracking your target footprints from social media, search engines,
websites to purchase transaction records, GPS signals, smart TVs, cellphones,
computers, from home to work or vacations to everywhere! In accordance
with the household statistics of 2016, 96.9% have mobile phones, 54.9% have
computers and 24.6% have a smart TV (Turkish Statistical Institute, 2016a).
Imagine that you have billion gigabytes of real-time data from many dif-
ferent sources but you do not know what to do with. A national hospital
group’s CEO once said that they have been storing patients’ data for years
but they couldn’t figure out how to use that big data. As Bean (2016) has
Integrated Marketing Communication 279

stated: ‘It is not the ability to process and manage large data volumes that
is driving successful Big Data outcomes. Rather, it is the ability to integrate
more sources of data than ever before’. Marketers suggest using big data for
(re)targeting, understanding target, engaging them with customised content
and offerings, marketing optimisation and customer retention (Stringfellow,
2017). Once the strategic marketing objectives have been identified, it would
be much more useful to analyse data and brief it to technology companies
that will do it for you.
In Turkey, big data-based value production has taken baby steps in recent
years. Product recommendations of e-commerce stores and advertising sales
of telecom operators and media companies based on consumer data are the
most specific applications of big data marketing, for now.

INTEGRATED MARKETING COMMUNICATION

Every day we interact with hundreds of brands and products through stores,
streets, Internet, TV, events and various media. Each touchpoint gives us a
specific message about the product, brand or the organisation. Besides, mes-
sages are given by the products themselves; other marketing mix elements
such as price, place and promotion also carry their own messages. They all
communicate! Imagine how each element sounds in contrast to others?
Integrated marketing communication means that every surface of a prod-
uct or organisation speaks with one voice to keep the customers away from
dilemmas; the atmosphere of the store should be relevant to a product’s qual-
ity and price, a package of a $20 chocolate should not seem cheap, etc.
From the early 1990s through to the present, many definitions were made
to describe IMC. Even though they all frame the same concept, comprehen-
siveness of points of view differ. Shultz and Shultz (1998) defined the concept
as follows:

IMC is a strategic business process used to plan, develop, execute, and evaluate coordi-
nated, measurable, persuasive brand communication programs over time with consumers,
customers, prospects, and other relevant external and internal audiences.

According to American Marketing Association (AMA; 2017), IMC is ‘a

planning process designed to assure that all brand contacts received by a cus-
tomer or prospect for a product, service, or organisation are relevant to that
person and consistent over time’. Kotler and Armstrong (2016) specifies that
IMC ‘involves carefully integrating and coordinating the company’s many
280 ELIF YURDAKUL AND ASLI BOZDAĞ

communication channels to deliver a clear, consistent and compelling mes-

sage about the organisation and its products’.
Turkish marketing managers agreed on the following definition (BPIDER,
2017):

Integrated Marketing Communication techniques aim to create comprehensive programs

that evaluate, coordinate, integrate and synchronize the marketing mix of advertising,
PR, direct marketing, marketing collaterals and any related online/offline marketing tools
to provide greater value and promotional impact than their individual implementation.

As important as providing a clear message, the other duty of IMC is mak-

ing the optimal combination of marketing communication mix:

Promotions: Limited-time incentives to boost the sales of products and

services.
Public Relations: Non-paid forms of communications to influence targets,
improve image and increase the value of products, services, organisations,
people or ideas.
Advertising: Non-personal, paid, persuasive/informative form of commu-
nication of products, services, organisations, people or ideas.
Sponsorship: Providing money, product or service to an activity, person,
property or entity.
Word-of-Mouth Marketing (WOMM): Spreading positive comments
about products, services, organisations, people or ideas from person to
person.
Personal Sales: Sales force’s efforts to make sales and sustain customer
relationships.
Direct Marketing: Direct contacts with targeted customers to encourage a
response.
Digital Marketing: Marketing of products, services, organisations, people
or ideas through digital technologies.

Besides industrial structure and marketing mix elements, some considera-

tions such as market size, characteristics of target consumers, resources, costs
and deciding on push or pull strategies, which are being used simultaneously
in many industries such as automobiles, FMCG, home appliances etc, give a
shape to marketing communication mix.
Another important question at this point is who is going to set the market-
ing communication mix? There are many small- and mid-size organisations
running without any specific marketing department or assigned executives.
Especially if sales force is an important tool for business, marketing could
Integrated Marketing Communication 281

be seen as a side dish. In these organisations, marketing mix decisions may

be taken by CEO/owner, general manager and other departments’ managers
such as production, sales, human resource or public relations.
In local companies, if there is a marketing department, most likely it is
assigned to do only communication work. Marketing and sales teams of
companies have to serve each other and share real-time information. But, in
general, two departments are coordinated by different directors, or by one
person with a title of director of marketing and sales. This situation ends with
budget allocation problems. As far as C level is concerned, consider market-
ing as equal to media mix, the necessary investment to build the integration
will continue to be seen as an unnecessary cost.
In an increasingly competitive environment, Turkish Government
launched the TURQUALITY® program in 2004 to explain to the Turkish
companies that branding means more value and greater market share, and
to support them in this regard. TURQUALITY®, the world’s first state-
sponsored branding program me, has created by a branding platform that sup-
ports companies in institutional, financial and operational sense (Turquality,
2017). Within the scope of the program, by 2017, a total of TRY 2.14 billion would
be provided to 234 brands of 224 companies (Anadolu Agency (AA), 2017).

DEVELOPING EFFECTIVE IMC

Dimensions of IMC are determined as one voice of: interactivity, cross-
functional planning and profitable long-term relationship (Porcu, del Barrio-
Garcia, & Kitchen, 2012). Developing and sustaining effective IMC needs
to have an organised planning process. Here are the most common steps of
IMC that ensure to actualise its functions (Fahy & Jobber, 2012; Kitchen &
Burgmann, 2010; Kliatchko & Schultz, 2014; Kotler and Armstrong, 2016):

• Explore the market; research and analysis

• Identify the target audience
• Determine the communication objectives
• Design the message
• Decide the marketing communication mix
• Set the budget
• Get feedback
• Measure the results
• Improve IMC
282 ELIF YURDAKUL AND ASLI BOZDAĞ

According to the ESOMAR 2014 market research industry report, Turkey

is the 27th country on the growth list with a $200 million expenditure on
research, and is on target to reach $1 billion market size by 2023 (Campaing
Turkiye, 2017). When we look at the reports published by research compa-
nies, we see that a large number of studies have been done in the major cities
of Turkey: Istanbul, Ankara and Izmir. ‘The three bigs’ have 30% of popula-
tion, and TOBB (2017) reports that in September 2017, more than 50% of
total new enterprises were founded in these cities. The data collected in these
cities may accurately represent the whole for both consumer and industrial
products. Depending on time and budget allocations, research studies can be
expanded to more cities.
Research designs may include survey, in-depth interview or home visits,
etc. Turkish people generally are very friendly and hospitable when you ask
them something on the street or knock on their door to get some information.
Having no rush or traffic jams, small city residents are more hospitable and
open to communicate. If you make a home visit, they would even offer drinks
and meals, which takes longer time, even hours, than researchers initially
think. Similarly, you may start or finish a focus group an hour late. Besides its
culture, Turkey has a wide range of diversity in sub-cultures, which are visible
even in neighbourhoods. Researchers must pay attention to understand this
challenge.
A smooth targeting process requires deep understanding of consumer
segments. In addition to various segmentations, in 2016, MGMedia has
identified 11 different social segments according to the research called
MGLife (Marketing Türkiye, 2016). The segments are named as the solid
conservative (11%), the following conservatives (8%), the social emula-
tor (7%), the new generation conservatives (7%), consistent modern (9%),
dynamic modern (8%), offended modern (10%), the introvert emulator
(7%), the in-between (9%), Anatolian tiger (7%), the beneficiary (7%) and
the unsatisfied (9%).
The segments noticeably differ from one another. For example, the solid
conservatives (4.6 million people) is one of the oldest segments (24% are aged
over 55 years), with 53% females and 47% males, they live in Southeastern
Anatolia, Central Anatolia and Middle East Anatolia. Those involved in the
lower socioeconomic group (DE) are above the middle. Except for TV, index
is below 90 for all events in all communication channels. They have the high-
est news coverage on TV (69%).
In contrast to solid conservatives, the social emulator segment (2.8 million
people) comprises above-the-average young and middle-aged people, has 56%
males and 44% females. They live in Istanbul, West Marmara and Western
Integrated Marketing Communication 283

Anatolia, and are above the ABC1 group. Being very easily affected by oth-
ers, open to innovations, open to try new products, care for career, mobile-
supported social media is a must for this segment.
Once the targets are determined, marketer needs to clarify the objective,
which of the buyer-readiness stages will be aimed (Kotler and Armstrong,
2016): awareness, knowledge, liking, preference, conviction or purchase?
Different messages for each target group should be created in unity and media
mix decisions should be figured around the message-target composition.
Many researches show that IMC causes a high ROI and cost-effectiveness
(Kitchen and Burgmann, 2010). Cost-effectiveness can be misread, as IMC
needs less investment by the management. Treating the IMC budget like an
investment and adjusting it according to objectives and tasks would generate a
greater ROI and more powerful brand and company image in targets’ minds.
Application of planned communication strategies is not the end. Getting
feedback from consumers, intermediaries, suppliers and from other stake-
holders is vital for the sustainability of communication. Campaign results
need to be measured by the performance criteria set before execution such as
creating awareness, better image, increasing sales, etc., and integration needs
are to be improved in the direction of results.

IMC TRENDS IN TURKEY

The world is changing, and technology is developing rapidly. Even my 85-year-
old grandmother uses an iPad to play games. So, as marketers we are adapted
to the new world, have started to use new communication channels, learned to
reach millennials and engage the target with very creative contents. On follow-
ing pages, you will find how this change is happening in Turkish marketing.

TV

The average TV watching time of people in Turkey is 5.5 hours per day. So,
despite all technological developments and social media, TV is an indispen-
sable tool of marketing communication in Turkey. Because of cultural values,
lifestyles and of course ecomonic reasons, people spend much of their time
at home with their families or friends, and hence TV is the most used recrea-
tional tool of households. That’s why, it is not surprising that TV ads had the
biggest share of 51.22% of total media investments, which in 2016 amounted
to TRY7,184 million.
284 ELIF YURDAKUL AND ASLI BOZDAĞ

The four digital TV platforms, Digiturk, D-Smart, Filbox and Tivibu, have
4 million subscribers in Turkey (BTK, 2017). According to Digital TV Research
(2017), by 2022, this number would increase to 8 million, including SVOD ser-
vices (Netflix, Amazon Prime Video, Icflix, Starz Play, Iflix and Shahid Plus).
Although the number of digital TVs and Internet series have begun to
increase, majority of the population is still watching national channles at prime
time. The 120-minute TV series and reality shows, along with long commercial
loads, can keep the audience glued to screens for at least 3–4 hours. It is a cost-
effective way to reach thousands. But ad breaks of longer than 10 minutes,
which can make up to 30 minutes during some shows, cause people to get away
from television and not watch advertisements. This reality makes advertisers
more creative by using different tools of IMC such as product placement.

Product Placement

Product placement is an advertising technique that promotes products

through visual and/or auditory presence in movies, TV shows, games and
music videos. In Turkey, due to low number of movies, advertisers prefer TV
shows for placement. In parallel with the rising number of Turkish TV series,
the technique is getting more popular for the last 20 years.
During the first six months of 2017, a total of 755 product placement ads
were watched in the programmes broadcasted on the screen, and the duration
of these ads exceeded 5.5 hours (Okuhaber, 2017). Soft drinks, telecommuni-
cation, home textile, furniture, food and automotive industries were at the top
of product placement ranking in TV shows.
Turkish TV audience are more affected by the products which are inte-
grated into content and scripted in scenarios. The brands in series and films
are intended to be purchased by the audience by reinforcing their purchasing
habits of the products they had already bought and the products they saw
(Kırçova and Köse, 2017).
The cost–product placement, especially of scenario integration, is deter-
mined by the ratings of the show and the celebrity who is going to use the
product on the scene, as shown in Fig. 1.

Virtual/Augmented/Mixed Reality (VR/AR/MR)

In virtual reality, through headsets or smart glasses, audience experiences

alternate surroundings created via softwares or videos. Augmented and
mixed realities are a bit closer to real environment of the audience; artificial
Integrated Marketing Communication 285

Fig. 1.  Fi. Adapted from Phututv, 2017, Retrieved from https://puhutv.com/­
fi-detay. Copyright 2017 “puhutv.com”. Adapted with permission.
286 ELIF YURDAKUL AND ASLI BOZDAĞ

and real-world interact in real time like having Coca-Cola with a polar bear
sitting next to your daughter on the sofa in your living room. Headsets or
smart glasses are optional for AR and MR, visuals can be seen by naked eyes.
In the retail world, Ikea (2013), since 2013, has been using AR and VR
technologies to let consumers preview products and colour options in their
homes or in a created atmosphere in stores. To use Ikea AR catalogue app in
your home, you still need a printed version to scan pages via smartphone or
tablet and apply them into your real bathroom.
Although in Turkey the use of VR in marketing has increased in recent
years, there is a long way ahead for the increased use and spread of aug-
mented and mixed reality applications. The use of VR in our local market,
starting with virtual showrooms and gamifications, has recently expanded
the scope of application with more creative ideas, as shown in Fig. 2 and
Fig. 3.

Fig. 2.  milyon kişi Marshall Gör&Boya uygulamasını indirdi! Adapted from
­ arshall Boya, 2017, Retrieved from https://www.marshallboya.com/tr/articles/
M
marshall-visualizer-ile-nce-gr-sonra-boya. Copyright 2018 “AkzoNobel Paints”.
Adapted with permission.
Integrated Marketing Communication 287

Fig. 3.  Knorr Sıvı Çorba’dan Büyük Sürpriz! İstanbul’dan Paris’e giden lezzet dolu
sürpriz yolculuk. Adapted from Youtube by Knorr Türkiye, 2017, Retrieved from
https://www.youtube.com/watch?v=rQXKQayZMNo. Copyright 2012
“Knorr Türkiye”. Adapted with permission.

Content Marketing

According to the Content Marketing Institute’s (2017) definition, the content

marketing ‘is a strategic marketing approach focussed on creating and distrib-
uting valuable, relevant, and consistent content to attract and retain a clearly
defined audience – and, ultimately, to drive profitable customer action’.
From Search Engine Optimisation (SEO) to mobile and corporate blogs,
content marketing is becoming more important every day, as 61% of market-
ers say improving SEO and growing their organic presence is their top priority
and 72% of marketers agree on relevant content creation in the most effective
SEO tactic. But still only 32% of marketers have a documented ­content mar-
keting strategy (Hubspot, 2017).
Videos, infographics, podcasts, contests or any recent, reliable and rel-
evant content can work on your target, engage them with your brand, make
them share your content and increase awareness, as shown in Fig. 4. As we
can see from the success of Instagram and reposts, visual content is 40×
more likely to get shared on social media than other types of contents
(Hubspot, 2017). Another concept that may help your content to be a suc-
cess story is evergreen content, which means a content relevant to your
288 ELIF YURDAKUL AND ASLI BOZDAĞ

target’s interest, and it lasts for a long time by using keywords that your
audiences will be always searching, such as ‘easy cake recipe’, ‘is milk really
healthy for you’ or ‘the best ab exercises’.
According to the KPCB’s research (2017), ‘an effective user-generated con-
tent can generate 6.9× more higher engagement than brand-generated con-
tent on Facebook’. Qatar Airways is on the top of list of brands which are
sourcing content from fans on Instagram with an 80% ratio, and Red Bull is
second on the list with a 70% ratio. The only Turkish company in the top 10
is Turkish Airlines with almost 30% leveraged user-generated content.
One of the most influential ways to make your audience contribute to your
content is finding an interesting subject and let them produce ideas, make
comments and suggestions or compete with others. Frito-Lay’s ‘Do Us a
Flavor’ campaign got more than 14 million votes in 2014.
Content development has become a growing business day by day. In-house
and freelance developers, digital agencies, content development companies
and even automatic content software can generate effective content accord-
ing to your brief. From long blog posts to Twitter, Facebook, website or list

Fig. 4.  Rexona Hareket Sözlüğü Case Study. Adapted from Vimeo, 2017,
Retrieved from https://vimeo.com/207262034. Copyright 2018 “Vimeo, Inc.”.
Adapted with permission.
Integrated Marketing Communication 289

contents, İçerik Bulutu (content cloud) Company is one of the first of content
development companies in Turkey.

EXPERIENTIAL MARKETING
‘If you’re not creating experiences and memories, you’re not building any-
thing’, said Ben Hindman, Co-founder, CEO of Splash (Adweek, 2016).
Experiential marketing is creating an interactive and pleasurable experience
to let customers engage with and talk about your product and brand, and that
engagement gets millennials to share the photos of experiences (81%), use
hashtags (71%) and follow the brand on social media (67%) (Adweek, 2016).
It is all about providing the consumers with social interaction, entertainment
and branded memories. They have no doubts about sharing branded content
as long as they have fun and get benefits.
Turkish consumers like to spend time in cafes and restaurants, chatting
inside and eating something. It is precisely for this reason that Starbucks
opened Europe’s largest, 1,000 m2, and first five-storey store in Kadikoy,
Istanbul. For this reason, it should not come as a surprise that a consumer
electronics brand opens cafes in its stores.
Vestel, one of the leading brands of Turkey’s home appliances and elec-
tronics sector, has 1,200 authorised sales points across the country. In 2016,
Vestel opened the first ‘Café Vesto’ in the brand’s Besiktas store (Fig. 5) to
provide their customers with a relaxed atmosphere that allows them to spend
more time in the store and drink their coffee while getting information about
electronic products.
As experiential marketing strategies get more attention among marketers,
Intema, bathroom and kitchen suites company, which is positioned as ‘an
expert brand that designs the ideal kitchen for consumers’ has opened an
experimental store, named Intema Yaşam - Intema Lifestyle Store (Fig. 6) in
a well-known mall in Istanbul as shown in Fig. 6. The store has two different
rental kitchens where customers cook their dinner and enjoy a comfortable
and cozy atmosphere with their guests. People experience the concept and
products of Intema and partner brands.
Another important customer experience tool is corporate events, as shown
in Fig.7. Although the number and budget of the events tend to decrease until
a few years ago due to economic crisis and widespread use of digital events
that cost almost zero, they are regaining deserved attention since they provide
good Instagram content for consumers.
290 ELIF YURDAKUL AND ASLI BOZDAĞ

Fig. 5.  Café Vesto. Vestel, Türkiye’deki İlk `Teknolojik’ Kafelerini İstanbul’da Açtı.
Adapted from Webtekno by Eser Şahin, 2016, Retrieved from http://www.webtekno.
com/kafe-vesto-istanbul-h22602.html. Copyright 2014 “İzmo Bilişim”.
Adapted with permission.).

CASE STUDY
Nusret Gökçe – A Social Phenomena Success Story

Marketing has evolved tremendously in the past decade parallel to consumer

demands. This evolution in marketing occurred because of two reasons:
the mass commoditisation of products, which makes it tough for brands to
become distinct, and the sophisticated, savvy consumers who are not satisfied
or have no time for traditional commercials.
The fundamental utilitarian benefits of consuming a product yield their
place to consuming products where customers get more in terms of experi-
ences and emotions. The post-modern era of marketing showed both prac-
titioners and academicians that although customers’ demands diverge, the
ultimate aim is to achieve negative and positive experiences. These experi-
ences, which brands effort to differentiate, strengthen their brand image and
increase customer satisfaction to sustain brand loyalty.
Integrated Marketing Communication 291

Fig. 6.  Intema Yaşam (Intema Lifestyle Store). Adapted from Instagram, 2017,
­Retrieved from https://www.instagram.com/intemayasam. Copyright 2018
“Instagram”. Adapted with permission.

Integrated marketing communications became the main strategy of

brands and that is why they became more successful. This is being done
by not only brands but also by individuals, places or even countries. These
units started using social media tools, which constitute a big part of IMC,
not only to differentiate their products but also to position their brands. It’s
undeniable that WOM, which is created through social media, plays a big
role when it comes to getting the word out there. However, the attractive
part is that not only brands but also people started to become phenomena
through these engines.
292 ELIF YURDAKUL AND ASLI BOZDAĞ

Fig. 7.  The 18th Istanbul Jazz Festival, sponsored by Garanti Bank.
On behalf of Garanti bank, Ersin Babaoglu, personal communication,
October 4, 2017. Adapted with permission.

In recent years, like the rest of the world, Turkish brands started to inte-
grate social media into their marketing strategies.
The digital age and the postmodern era of marketing transformed con-
sumers’ expectations about brands and how they sell or how they do what
they do, but at the same time they start to expect more prompt communica-
tion. Mass media channels are still effective to speak to consumers, but social
media (Instagram, Twitter and Facebook) is much more efficient for brands
to communicate and form relationship with customers. This is due to the fact
that consumers want to control communication and direct relationship.
As a matter of fact, the pure reason to use IMC as a strategy should be to
form relationships with consumers rather than only thinking about the profit
because brands only exist when they have their loyal followers. Moreover, in
the post-modern era of marketing, consumers expect much more creative
approaches from firms such as contests for new ideas, or product demonstra-
tions. Social media tools are effective to create these creative ways to interact
and also it is easy to tract response relatively.
Nusret Gökçe, owner of Nusret Steakhouse, differentiated itself with
its unique voice and style in social media which resulted in colossal brand
Integrated Marketing Communication 293

awareness not only in Turkey but also all around the world. As a side note: the
main reason why he uses his own name as brand’s name is that ‘et’ in his name
means ‘meat’ in Turkish. He and his brand Nusret already had an established
place in Turkey, Dubai and Newyok. However, Nusret Gökçe became a social
phenomenon overnight through social media. He gained world attention with
the hastag of #saltbae. Saltbae hastag was given to him to signify salt, he
being shirtless and handsome, the beef and the sensual image he displays with
food. His video of cutting beef and putting salt on them became viral and
got huge number of views on Instagram. The video was watched for over 2.4
million times within the first 48 hours. Records show that the first thing that
was shared about Nusret Gökçe without his name on it was the meme, which
stated: ‘You v.s the guy she told you not the worry about.’ One of the reasons
that he became famous with beef videos is that he reflected the experience
that you can have in the restaurant to social media.
In today’s marketing world, experiential marketing started to have a
solid place with the help of integrated marketing communication tools
which Nusret Gökçe and this campaign or coincidence applied effectively.
Experiential marketing focusses on the whole process of experience, which
includes pre-purchase, post-purchase and moment-of-truth by integrating
experiences into products or services. The spreading concept of experiential
marketing has grounds based on the following two different views: the chang-
ing consumer demand in postmodern era, which results in pursue of hedonis-
tic habits, and a need for exciting involvement and urge to find a new medium
to push the message.
Nusret went straight through the result of the experience which he showed
or created through social media. This gave him an initiative because the brand
already had several locations outside Turkey, and now they are looking to
open two branches, which are said to be planned in London and New York.
Consumers already know Nusret Gökçe as the Turkish Butcher who used to
slice Ottoman-style beef before he even opened a restaurant in their neigh-
bourhood, and this is an immense leverage. As celebrities started to pay atten-
tion to his restaurant, he started to welcome them, like Leonardo DiCaprio,
and gave them an experience handcrafted for their entertainment with a spe-
cial menu.
The recent success of Turkish brand Nusret is highly correlated with how
they keep up with the changing trends and communication devices in today’s
world. Nusret and his team took the experiential marketing and gave con-
sumers a sense of being there through social media. They proved that inte-
grated marketing communication tools are beneficial for brand strategies
which helped them to make this Turkish brand a success story.
294 ELIF YURDAKUL AND ASLI BOZDAĞ

INTEGRATED PROHIBITIONS
Integrated marketing communication refers to synchronising the marketing
mix to create a better value and strong message. For many product catego-
ries there are numerous communication tools to be used simultaneously. But
some categories are not that lucky. Medicines, medical devices, health ser-
vices, food supplements, cosmetics and cleaning products, tobacco products
and alcoholic beverages are subject to specific laws and regulations related to
marketing restrictions in Turkey (Resmi Gazete, 2015).
In order to protect consumers, any kind of advertising, sponsorship,
branded events, trade promotions, product placement and any such market-
ing activities for tobacco products and alcoholic beverages are banned by law.
Retail sale of alcoholic beverages is also prohibited after 10.00 pm. Similar
regulations are valid for prescription drugs on TV, radio, non-medical peri-
odicals, Internet, outdoor, etc. NO ADS AT ALL!
When you have less, you need to be more creative to survive. Alcoholic bev-
erage brands such as Southern Comfort, Mariachi and Mey İçki, have begun
sponsorship of house parties after prohibitions (Milliyet, 2012; Sabah, 2015).
Although their sales force has been the most important marketing tool for
drug companies, they have increased investment on online platforms such as
medical forums, webinars, educational materials for medical staff and social
responsibility and change programmes in recent years. They also create branded
human resource programmes as a marketing tool: ‘There is a Future at Pfizer’,
‘Life Healers’ by Abdi İbrahim, ‘Inkompass’ by Philip Morris/Sabancı.
Practising marketing would not be easy when you are challenged by such
bans and sectoral regulations. But still, integration of tools that you may use
could be your strength to find opportunities in the market.

CONCLUSION
Elon Musk and Mark Zuckerberg had a debate on AI in the United States.
They talked about developments and their concerns. And in Turkey, at the
same time, we were suffering from substantial flooding of roads and Metro
stations caused by rain in İstanbul, the biggest city of Turkey. We use the
same smartphones, same computers, same videoconference programmes,
same textile brands, but we are not on the same page.
If you are practising marketing internationally, you know that your product
is not at the same life cycle stage in every market, and you develop different
strategies for each market and each stage. Along these lines, it is that simple
Integrated Marketing Communication 295

to adapt your communication strategies to Turkey. Of course, doing business

in Turkey is not an easy ride, but Turkey has a big potential not only with
its young and educated population but also with its wonderful know-how on
management during economic and political crises. Understanding its strengths
and foibles can make communication easy, just like knowing not to promote
alcoholic beverages during Ramadan can protect you from a boycott.
As with every country, Turkey has its own colours, dynamics, regulations,
prohibitions and cultural differences for both consumers and business-to-
business (B2B) markets. As TV keeps its indispensable position at least for
the near future, social interaction through social media and events is ris-
ing among consumers. Consumers do not have any problems with getting
involved with branded activities and sharing branded content on their own
channels, but they need to trust the market’s sincerity and goodwill.
Penetration of Internet and mobile phone in Turkey is very high. Turkish
people spend an average of 2.5 hour on computers or smartphones. Yet,
because of some excessive applications of mobile marketing, people do not
pay attention to SMS marketing. Instead, companies develop very creative
mobile applications, contests and games to reach mobile users. Altough GSM
penetration is 98%, GPS-driven advertising is not that common in Turkey yet.
Despite the population of augmented and mix reality marketing in some
countries, Turkey has a long way to go to apply them. Nevertheless, the num-
ber of virtual reality applications and the experiential marketing budgets are
increasing. As we learn to use big data, data-based marketing activities like
retargeting are getting more popular among marketers.
You may choose to invest in traditional or digital media or combine them
to promote your product. You may develop your content in-house or hire a
content development company. You may adapt your message to Turkey or
use a standard one. Whatever you may decide on your communication mix,
the most important part of your strategy should integrate all your tools to
reach a big, strong and differentiated voice.

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CHAPTER 7.2
IS ADVERTISEMENT REALLY
DEAD? A CASE STUDY OF
FILLI BOYA

Çiğdem Başfırıncı and Gülcan Şener

ABSTRACT

This case is about the success of Filli Boya, one of the well-known brands
of the Turkish paint industry, on using traditional TV advertisements for
creating brand awareness. The purpose of this case study is to point out
how TV advertisement, the so-called ‘traditional and boring’ communica-
tion tool, could still be effective when integrated into the contemporary
marketing philosophy and modern marketing communication trends such
as real-time social media marketing.
A qualitative method was applied and both primary and secondary sources
of information were used in this study. As primary sources of information,
in-depth interviews were conducted. Purposive sampling method was used,
and participants were recruited from a sample that was broadly believed to
be able to evaluate the brand from different points of view. Interviews were
analysed through content analysis using the grounded theory approach.
The secondary sources of information, including advertisements and news
in media, reports and user contents shared in social media were also used
considering the principle of multiple data sources.

Marketing Management in Turkey, 299–320

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181021
299
300 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

Uncovering the contemporary ways of using traditional mass advertis-

ing based on a Turkish brand’s experiences, this case could be taken up in
advertising courses at both graduate and postgraduate levels when discuss-
ing creativity in advertising and also modern integrated marketing com-
munication methods.
Keywords: Filli Boya; Özgecan Aslan; TV advertising; case study

INTRODUCTION
The 21st century has witnessed a marked increase in advertising messages
(McAlister, 1996). Today an average consumer is surrounded by more adver-
tising messages than at any other time in history. However, the number of
exposed advertisements exceeds the information processing abilities of most
consumers, and today’s consumer is often forced to employ ad avoidance
strategies to keep themselves from being oversaturated by advertising mes-
sages (Rumbo, 2002, p. 128). Increased speed and fragmentation of media
such as the Internet and the social media should also be mentioned in this
resistance to advertisements. Moreover, as stated by Speck and Elliot (1997),
today ad avoidance by consumers is much higher for TV viewers than for
readers of print media since these avoidance strategies are more suitable for
the most technologically advanced media. Consequently, today the pervasive
influence of TV advertising has diminished. Thus, the true winners of TV
advertisements are the brands who touch the hearts of customers at the right
time with a sincere intent.
This case looks into one of the well-known brands of the Turkish paint
industry, Filli Boya and its success on TV advertisement campaigns, especially
after 2015. After the murder of Ozgecan Aslan, a 20-year-old college student
who was raped and brutally murdered by a minibus driver on February 11,
2015, nationwide street protests took place. Precisely at the time Filli Boya
broadcasted an ad on prime time without its logo to draw attention to the
violence against women using only ‘forOzgecan’ hashtag on a black screen.
Apart from traditional definition of advertisement, there was no advertiser
in the ad. The case attracted considerable attention from all walks of soci-
ety and the advertiser was revealed: Filli Boya. Furthermore, it was not just
an ‘ad’: by reflecting the feelings and thoughts of people with regard to the
violence against women, it was building consumer–brand relationship. After
that, Filli Boya continued to maintain its stance on this issue and to consist-
ently use TV ads for this purpose. Thereafter, nothing would be the same.
Advertisement Really Dead? 301

Now, Filli Boya has a reputation, which is priceless, thanks to their handling
of this issue.
The case study has been structured for the following purposes: to enrich
our understanding about the role of advertising in creating brand awareness,
and in turn building brand equity for the Filli Boya brand; the significance
and key elements of Filli Boya advertisements on their way to the hearts of
the target audience; and the effect of the dynamic interaction between adver-
tising and real-time social media marketing on the customers’ perceptions
of the brand.
Within this context, the case will take the audience through the journey
of Filli Boya marketing communication efforts since its introduction in the
Turkish market. It will give readers a brief history of the brand: how has
the brand grown; what kind of brand strategy has been developed over the
years; changes in communication strategies and how have these changes
helped the brand to move closer to its customers and empower its brand
image considerably?
In terms of original contribution, this study not only shows the modern
ways to use traditional mass advertising, the so-called ‘traditional and boring’
communication tool, based on a Turkish brand’s experiences but also reveals
the success of Turkish brands in adaptation to modern marketing approaches
such as corporate social responsibility and marketing communication trends
such as marketing 3.0 and real-time social media marketing.

COMPANY BACKGROUND
Officially founded in 1988 in Turkey by Celal Akpınar and his partners, Betek
Boya San. ve Tic. A.Ş. has been one of the leading companies in the field of
construction material industry. In 1993, the company signed a technologi-
cal cooperation with Caparol, a major paint brand in Europe. This partner-
ship has caused the birth of a new brand called Filli Boya and provided the
first foreign capital inflow for the paint industry in Turkey (About Us, n.d.).
According to the data published by the Istanbul Chamber of Industry (ICI;
2017), today Filli Boya is a leading brand operating in the chemicals indus-
try as one of the ‘Turkey’s Top 500 Industrial Enterprises-2015’, reaching
net sales of TRY902,685,372. Furthermore, since 2003 the company has
maintained its market leadership in the paint industry and there has been
a steady growth in sales figures year by year (Türkiye’nin 500 Büyük Sanayi
Kuruluşu, 2016). A similar picture is also provided in the Turkey’s Top 500
302 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

Industrial Enterprises of Capital Magazine, a leading business magazine in

Turkey (Türkiye’nin En Büyük 500 Şirketi, n.d.). Today, the company has
more than 1,000 employees and has been managed by Gözde Akpınar as its
CEO since 2009. After the long-running branding process with a considerable
amount of investment in the brand development and marketing communica-
tion, today Filli Boya has been not only leading the paint industry with the
highest sales figures but it has also become a well-known brand in Turkey.

MARKETING COMMUNICATION STRATEGY

Name and logo are the main characteristics which help a brand to identify
itself. Literal translation of Filli Boya in Turkish means ‘paint with the ele-
phant’ and refers to the elephant icon in brand’s logo, thus also on paint cans.
Actually, Betek Boya San. ve Tic. A.Ş. is the parent company, which has sub-
brands such as Filli Boya, Fawori and Alligator. As a parent company brand,
Betek has a colourful logo, which reminds consumers of the colour chart used
in painting. After cooperation with Caparol, Betek launched a new brand and
named it Filli Boya, inspired by Caparol’s logo. There was a striped elephant
in Caparol’s logo and the tail of this elephant was in the form of a paintbrush.
Since in the paint sector almost all other brand names were in English and
quite difficult to pronounce, Filli Boya could be easily ordered by consumers
by just saying, ‘I want this paint with elephant (on its can)’. This foresight was
also accurately predicted in advance by Ali Taran, founder and CEO of the
advertising agency, which worked with Betek. Kaptaner (2010, p. 31) stated
that Ali Taran could foresee how the brand would be named among painters.
The nickname of the brand would be Filli Boya because of the elephant icon
in the brand’s logo. As time passed by, this nickname turned into the brand’s
official name. All these factors tell the story behind the creation of the name
and the logo. As can be seen, with the brand name chosen as conveying the
whole story, company has not only succeeded to identify the source of the
product but also differentiates it from competitors’ products. Aaker (1991,
p. 197) underlined that ‘when products and services are difficult to differenti-
ate, a symbol could be the central element of brand equity, the key differenti-
ating characteristic of a brand’. So the brand name and logo are designed in
the most accurate way in a market where differentiation is difficult. Moreover,
company could enhance demand for their brand by keeping it simple, making
it easy to pronounce, making it memorable and being distinctive as stated by
Fox (2002).
Advertisement Really Dead? 303

Today, Filli Boya has unfortunately abandoned this striped elephant logo
and has made some major changes. Harking back to the colour chart used
in painting, the new logo is more like the logo of the main company Betek.
Predictably, with this new logo company has also aimed for a higher recall as
Giberson and Hulland (1994, as cited in Alshebil, 2007, p. 11) stated: ‘When a
product category is cued in a logo, the logo is retrieved faster from memory’.
In time, Filli Boya has made some minor changes to this new logo. Today, the
new logo has more rounded shape and oval look compared to the previous
one.
Another important element of marketing communication is the slogan.
Over the years, Filli Boya used various slogans, including ‘The Finest Paint
is Filli Boya (En Güzel Boya Filli Boya)’, ‘We Couldn’t Know it Exactly that
We Are So Good That’s Why We Are Loved or We Are Loved That’s Why
We Are So Good? (Sevildiğimiz İçin mi Çok İyiyiz, Çok İyi Olduğumuz İçin
mi Seviliyoruz, İşte Bunu Bilemiyoruz.)’, ‘Feel the Color (Rengi Hisset)’,
‘Exclude Colors From Life, What’s Left? (Hayattan Rengi Alın, Geriye
Neyi Kalır Ki?)’ and recently ‘For Better For Worse (Anca Beraber, Kanca
Beraber)’. As was seen in slogans, product features were not emphasised gen-
erally. Instead, the feelings were highlighted. Among these, ‘Exclude Colors
From Life, What’s Left?’ has turned out to be one of the most remembered
ones (Ipsos, Hatırlanan Reklamlar, 2015) and drew considerable attention on
social media (Öztürk, 2013). Predictably, the brand positioned itself as ‘the
colour of life’. Besides, a jingle was composed, made from this slogan, and
the company continued to make campaigns with celebrities, including famous
musicians like Nükhet Duru, Tarkan, Özcan Deniz, Manga, MFÖ, Halil
Sezai and Fahir Atakoğlu, who performed and played it for quite a long time.
The brand has used TV advertisements intensely and widely in market-
ing communication. Focussing on the differences before and after 2015, TV
advertisements could be evaluated into two different periods. From earlier
times to the present, they mainly conveyed continuous messages that having
every shade of any colour with flighting (or bursting) scheduling, implying the
colour range on colourful backgrounds accompanied by humour appeal and
upbeat music. During this period we also see that Filli Boya loved celebrities
(Yüzbaşıoğlu, 2012) and employed at least 25 celebrities in its commercials till
2006 (Gözütok, 2006). Among the celebrities played in its commercials were
singers, actors/actresses, columnists, TV presenters, models, chefs, sportsmen,
magician and doctors, and similarly voice-overed by famous stars. Within
this period the ads never had a hard sell approach. Instead, they used more
subtle, indirect and soft messages, which could be considered as a low-pres-
sure sales technique. Their main focus was to create a brand image with high
304 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

awareness and to build a strong brand positioning in consumers’ mind. In

all TV advertisements they commonly used emotional advertising appeals
as different from competitors. Within this period Filli Boya had been one
of Ali Taran Creative Workshop’s (ATCW) clients. Renowned as a creative
advertising agency in Turkey, it’s named after the founder of the agency Ali
Taran, ATCW prepared memorable ads to create positive feelings related to
brand’s name. With the help of the ads created by ATCW, Filli Boya gained
a special place and reputation in the market for a short run. Additionally, the
brand has accounts on social media, manages them effectively and is among
the strongest social brands, being ranked as 54th. (Filli Boya Amongst The
Strongest Social Brands, n.d.). The last ad created by ATCW for Filli Boya
was a continuing campaign called ‘Exclude Colors From Life, What’s Left?’
performed by Tarkan (a famous Turkish pop singer) and got remarkable
notice.
The brand’s communication started to change in 2015. The murder of Özgecan
Aslan in the early days of February 2015 could be described as the turning point
for the brand itself. Özgecan Aslan was a Turkish university student who was
murdered as she resisted a rape attempt by a minibus driver on February 11,
2015. The driver not only repeatedly hit and killed her but also burnt the body
and cut her hands to hide DNA evidence in her fingernails. Aslan’s death ral-
lied nationwide protests. The hashtag Ozgecan Aslan was tweeted more than
three million times, and an online petition calling for harsh punishment for her
attacker gathered almost a million signatures (Asquith, 2015).
Not only as CEO of the company but also as a woman and a mother,
Gözde Akpınar decided to do something with the intent of emphasising vio-
lence against woman using the case of Özgecan Aslan. Gözde Akpınar says,
‘As a woman and a mother of a daughter, I feel that issue in my bones’ (Özdil,
2017). She was doing something but also worrying about how it would be
perceived by people (İzci, 2015). While nationwide protests were taking place
in the streets and on the social media, audiences were exposed to a total black
screen at 9:00 pm for 30 seconds on 30 national channels, which is called road
blocking advertising. At the end a hashtag appeared: ‘forOzgecan’. No logo,
no company’s name, no advertiser was mentioned. Just a hashtag on a black
screen.
Almost everyone was wondering about the advertiser, but the TV chan-
nels announced the company who bought the time and place on prime time,
which is highly expensive. In addition to this, the spot was aired for three
more times: 10:00 pm on the same night and twice on the other day between
the TV programmes for women. Moreover, the company’s headquarters was
covered with a black cloth to protest violence against Özgecan Aslan.
Advertisement Really Dead? 305

Gözde Akpınar stated in a report that the idea behind this reaction was
to inform people about the case who were unaware of it. There are millions
living in rural areas who didn’t have Twitter or Instagram accounts to learn
more.

How could they be informed about the case? Well, it took place in newspapers, but
we needed a scream. We needed to find another way of protesting. We lived our mis-
ery by posting a black, blank picture on Instagram. That’s the idea where came from.
Concurrently, we covered our building’s exterior with a black cloth. Some days are black.
There is real mourning. Real mourning not put into words…(İzci, 2015).

Following this, many people appreciated Filli Boya about handling the
issue and gave their support. Not long before, the ad became popular on
the social media (Filli Boya’nın Reklamı Fenomen Oldu, 2015). Meanwhile,
dozens of entries were generated on collaborative hypertext dictionaries, such
as Eksisozluk, and topics were created based on user contributions (Filli
Boya’nın #özgecaniçin Reklamı, n.d.). But, contrary to this, some people
criticised the company for misusing Özgecan’s murder for profit by taking
credit and exploiting the issue. In terms of advertising definitions, this road-
blocking case was more than an advertisement. Indeed, it was demonstrating
and also reflecting the deep feelings and reactions regarding violence against
women driven by the recent murder. For sure, Özgecan’s murder would be
neither the first nor the last case. But it was a milestone for campaigns of
violence against women and Filli Boya has become more than a paint brand
by enhancing public awareness.
Filli Boya and ATCW worked together till the end of 2015. In 2016 Filli
Boya and its parent company launched an in-house agency for creating their
own ads named as ‘Kurtarılmış Bölge’ (Rescued Zone). That brings us to
the present time, i.e. the second period where company is now firmly in the
driver’s seat regarding advertisements. Furthermore, Gözde Akpınar works
actively within this department. As an example, she worked as a creative
director for a recent commercial ‘For Better For Worse’ (Bayındır, 2017).
From that day on, Filli Boya maintains its stance consistently by devel-
oping women-based projects. Among the projects, ‘women house painters’
(craftswomen) collaborating with Ministry of Family, or as an international
awareness project named ‘deadly wounded’, which described lives of 12
women, or Science Camp for girls in poverty organised by TUBITAK and
Bogazici University could be taken as concrete steps for women’s issues.
Handling this sensitive issue with developing projects, providing employ-
ment opportunities for women and producing and broadcasting ads for
raising awareness on behalf of women, make the brand seem like it tries
306 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

to be a part of a solution and make the world a better place. Apparently,

under the leadership of Gözde Akpınar, the brand is aware of its social
responsibility. Hereafter, with the help of consistent campaigns and pro-
jects, Filli Boya and its owner Gözde Akpınar are considered as fighters
for gender equality and the end of violence against women as stated in an
article ‘Sometimes millions of men do not work at all. A woman changes
everything!’ (Menteş Birlik, 2017).
On the whole, it could be said that the ads broadcasted by Filli Boya have
the ability to create awareness and set agendas. For instance, one of the lat-
est commercials of Filli Boya, which is named as ‘For Better For Worse’ for
Women’s Day, arguing the women’s issues in Turkish culture created aware-
ness around the day, has been talked about a lot (among the trend topics
#AncaBeraber #8MartDünyaKadınlarGünü), highly shared on social
media (112,000 retweets) and generated contents about the commercial
(having 72-page-long entries as on June 6, 2017) (Filli Boya 8 Mart 2017
Dünya Kadınlar Günü Reklamı, n.d.). Furthermore, this ad got a reaction
on Eksisozluk more than Filli Boya itself (having 32-page-long entries as on
June 6, 2017) (Filli Boya, n.d.). However, as mentioned above, that’s not the
full story behind the success.

METHODOLOGY
Methodologically this study employs a qualitative approach based on content
analysis using grounded theory. In this context, both primary and secondary
sources of information were used in this study.
As a primary source of information, in-depth interviews were conducted
as the first step. In selecting participants, purposive sampling method was
used and participants were recruited from a sample that was broadly believed
to be able to evaluate the brand from different points of view. Information
was collected from 12 respondents. In this process, semi-structured question
method was used and additional new questions were also added at neces-
sary situations which tried to collect in-depth information about the topic.
Likewise, every in-depth interview was used as a guide for followers, and the
design of the research (and thus the questions) was also updated as long as
the data collection process continued (Ger, 2009). Participants were inter-
viewed one by one in May 2017, and most interviews took place in private
offices of responsible researchers. The discussions generally started with
‘Let’s talk about the Filli Boya brand’, and respondents were encouraged
Advertisement Really Dead? 307

to express their own and their friends’ thoughts, feelings and experiences.
Other topics included were TV advertisements, companies’ social respon-
sibility campaigns and how these campaigns are seen to affect people’s
buying behaviours. The duration of the interviews ranged from 45 to 90
minutes. Discussion was stopped after 12 interviews, since saturation point
was reached (Strauss and Corbin, 1998). Then the data was analysed by
researchers to reveal associations related to the Filli Boya brand. Therefore,
interviews were coded using content analysis, and themes were identified. In
this process, the data involving similar meanings was brought together, and
systematic themes and categories were created. In demonstrating the asso-
ciations and relationship of these connotations, three stages of the grounded
theory approach as suggested by Strauss and Corbin (1998) were used: open,
axial and selective coding. In the open coding, a line by line analysis was
conducted by the researcher for every line of the transcribed interview, and
keywords and phrases that could provide some insight were revealed. In
axial coding, relationships between the associations were reassembled. In
selective coding, the core categories were identified and coding was delimi-
tated to only those concepts that related to core categories.
Since grounded theory allows for multiple data sources (Burke, 1997), the
secondary sources of information were also used in this study. In this context,
advertisements of the brand, news reports in the media and reports and user
contents shared in the social media were used as secondary sources in exam-
ining the validity structure of qualitative research.

FINDINGS
Respondents’ views about Filli Boya revealed both informants’ rela-
tions with cultural norms and a dialogue with self, with brand, and with
researcher. For the participants who were sensitive about women’s issues,
the interview focussed on critiques of male-dominated culture and society.
On the other hand, for the participants who are sensitive to advertising and
brands, the issue was mainly discussed in terms of advertising and branding.
In each case, thinking about Filli Boya was a highly emotional experience
for the participants, proving that the selected sample had properly served
the goal of purposive sampling. The findings depict a clear image, and thus
an implicit positioning of the brand. Accordingly, holistic image elements
of the brand and the relationship between these elements could be seen in
the following results.
308 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

More Than a Simple Brand – As If a Brand Created for

Positive Gender Discrimination

Brands are symbols that are inscribed with many meanings representing
product features, nationality, class, sexuality and perhaps most importantly,
culture. As one of the most powerful findings of our study, Filli Boya rep-
resents more than a paint brand for all of the participants. With a detailed
description, the meanings of Filli Boya in everyday life represent a much
broader area than a simple paint brand. These meanings involved critiques of
male-dominated culture, having a stance regarding positive gender discrimi-
nation, being brave enough to face reaction of the male majority, as being an
extraordinary brand never seen in the paint sector which is almost entirely a
male-dominated industry.
As can be seen, perception of the brand reflects the sensitivity of the brand
towards women’s issues rather than product characteristics.

When I think Filli Boya, I don’t remember just painting things. I feel that they are [the
brand] far more than that. As if they told us that we are not just the paint you used in your
walls, we can do more than that, and we also want to do it. (Male, 28 years, academician)

It looks like it [the brand] adopts the women’s issues. (Female, 22 years, student)

[Filli Boya] drew attention to a social problem [implying violence against women].
Probably the brand chose this topic because women are the most violated part of the soci-
ety …There is no any dissuasive penalty [in Turkish law], so it is really difficult to change
this undesirable status of women. In this country, anyone can do whatever they want in
terms of gendering violence. At least, Filli Boya strives for women rights. Moreover, they
strive in a situation where most segments of society feel desperate…The brand reveals its
stance on gendering violence. (Female, 37 years, academician)

Few respondents approached the subject from a broader perspective, and

praised social responsibility efforts rather than brand’s approach to women’s
issues.

I can say it’s in a different position in the sense of social responsibility. They [Filli Boya]
have an attitude implying that we are not just a paint brand, we are more. (Male, 37 years,
academician)

Every socially responsible company is privileged for me [So Filli Boya is]. (Female, 36
years, academician)

Filli Boya has such a strong call in consumers’ minds in terms of positive
gender discrimination that today any news in the media on this topic reminds
people of the brand and creates an expectation and curiosity in people who
are sensitive to these issues about the next reaction of the brand on the topic.
The following findings reveal this case clearly:
Advertisement Really Dead? 309

Because of the advertisements about women, now Filli Boya means for me much more
than a paint brand for me. From now on, I will follow the brand’s response to the subject
when there is another social issue about women, because now I have an expectation about
brand. I find it sensitive…very successful. (Female, 36 years, academician)

With a holistic evaluation, brand generally deals with women’s issues, positive gender
discrimination. Its reaction for Ozgecan murder was unforgettable for me. When there is
a similar incident, I want to see a reaction again. I think if the brand will do something
similar again. (Male, 26 years, student)

Without any doubt, these strong associations were planned by Filli Boya.
Consistent TV advertisements and social responsibility campaigns helped the
company in achieving these goals. On the other hand, after these campaigns,
the brand’s responsibility in this regard was clear and heavy. From now on,
the brand did not have the option to feel comfortable and not respond to such
issues, and this also constituted a risk for the brand.

Sincerity

Participants mostly depicted the brand as sincere, directly or by implication.

The first thing that comes to mind is that: Well done! A firm stand. I really appreciated the
woman (implying CEO Gözde Akpınar). Her awareness is high. It’s not just commercial;
it really supports the idea for the sake of the ideals it believes, she takes risk. She positively
discriminated against women. (Female, 27 years, academician)

I will support the brand as long as it protects its sincerity and creates sustainable projects.
(Male, 29 years, academician)

Here, we also see that as a reflection of consumer culture, the relationship

between the consumer and the brand has differentiated. In the social life,
meeting brands that support their own truths makes consumers happy, and
by supporting these brands, consumers try to realise their own ideals.

Every socially responsible company is privileged for me. Because I can see that earning
money is not the only and very goal of them. Of course, I know that money is important
for companies to survive, but also to have some opinions about the world they live in is
very valuable to me as a woman. (Female, 36 years, academician)

It was also seen that when discussing the sincerity of brand, highlighting
the brand’s political stance is very common in the discourse of respondents.
This is exemplified by a female informant’s advocation:

They got negative reactions [referring to the advertisement of the brand ‘For Better
For Worse’] just before the referendum [where voters were asked to endorse an 18 arti-
cle reform package that allegedly would replace the current system of parliamentary
310 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

democracy]. I have heard about its CEO. She is from Izmir [Izmir is known as the epitome
of Turkey’s most liberal city and the dissident of growing conservatism in Turkey]. Also,
Yılmaz Özdil [a dissident journalist and writer, who is also from Izmir] has supported the
brand with a column. I appreciate their sincerity and courage to tell their truth by tak-
ing the risk of 50% reduction in sales [Here 50% implies her idea about the total rate of
conservatives in Turkey]. (Female, 37 years, academician)

When we evaluate contemporary political conditions, the advertisement for the

Women’s Day was quite courageous just before the referendum… That’s why I won-
dered if they broadcasted the whole thing on TV. I would even think that it might be a
political advertisement if I did not see Filli Boya at the end of the ad. (Male, 30 years,
academician)

Apart from being a dissident in a conservative society and male-dominated

culture, the brand was perceived to be a symbol of sincerity because of its
previous advertisements on TV without its logo to draw attention to the vio-
lence against women.

Just think that you paid millions for appearances on prime time TV advertisements for all
major national TV channels, but don’t mention your sales proposition. You don’t show
your brand! You do not even use your logo! You only try to destroy prejudices; to cre-
ate awareness about violence against women. It is really risky. (Female, 28 years, public
worker)

Recent advertisements do not include any sale[s] effort. The brand doesn’t foreground its
logo, slogan or product. (Male, 26 years, student)

There are also a small number of informants who are skeptical about the
brand and its social responsibility campaigns about women. One of them
emphasised that today almost all companies are aware of real-time social
media marketing and use it effectively.

Today all brands prepare new advertisements special to Women’s Day, Mother’s Day etc.
Now, I don’t follow and watch these ads because I lost my belief about their sincerity.
Because, nowadays these ads are very common… I have some doubts about the brands
that are using social responsibility campaigns. I don’t buy Filli Boya because of its effort
in this field. (Male, 39 years, academician)

This statement reflects a general attitude towards companies using social

responsibility campaigns rather than brands themselves. The same respond-
ent also expressed his doubts specific to the brand:

In such a sensitive issue [implying positive gender discrimination], I don’t feel that it [the
brand] was so sincere. I know what it is really about, actually [implying profit]. This issue
is not related to making advertisement, it is actually related the extent to which it has been
applied in social life, or in everyday life. (Male, 39 years, academician)
Advertisement Really Dead? 311

Another academician also depicted a similar response pattern towards

the brand and also social responsibility projects. He claimed that all of these
efforts are useless, and the only thing it helps is making more money:
[Implying the women house painters projects] I have never seen a woman in Turkish rural
who has a job as house painter. Have you? These projects never work on rural area. [It]
cannot create a difference. Filli Boya doesn’t have to show off through its ideals, if they
were really sincere, they could make an ad just after the project, not before. Thus we could
see really how many women had employed within this project as house painter. I know
the ad, but I don’t have any idea about the real results of this project. (Male, 39 years,
academician)

This expression implies that the respondent does not believe in both the
sincerity and functionality of awareness-generating ads and social responsi-
bility projects.

Competitive Information

Drawing upon the respondents’ perceptions, we could depict the brand’s posi-
tion in the market and its product characteristics. Although these associa-
tions are not as strong as the women’s issues, perceptions are distinctive and
worth discussing.

Market Leader Brand

Almost one-third of the participants had an overall image of the Filli Boya
as a market leader brand.

It is like a sector giant. What Coca Cola means in the coke sector, it is the same for the Filli
boya in paint sector … It looks like the best paint brand in Turkey. (Female, 22 years, student)

[Filli Boya is] a leading paint brand. (Male, 39 years, academician)

Involvement levels of all respondents towards the product – the paint –

was low. For instance, it is interesting that the market position of the brand is
known by one-third of the participants. Moreover, they have also commented
on the quality of the product.

It is a quality brand. (Male, 26 years, student)

It evokes quality. (Female, 35 years, worker)

When I compared with other competitor paint Filli Boya is better I think. (Male, 37 years,
academician)
312 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

How could they be aware of its quality and market position? Here, it could
be assumed that stronger associations related to the brand may create a halo
effect on the general brand image and this effect may also create perceptions
about other areas such as product characteristics. In fact, the statement of a
female worker (it evokes quality) clearly implies this proposition.

Filli Boya and the Competitors

Research findings revealed that Filli Boya could differentiate itself from its
competitors in a favourable manner. And this differentiation appears to be
based mainly on positive gender discrimination messages in TV ads. As one
male participant expressed it:

As different from others (referring the competitors), Filli Boya has a mission on women’s
issues. (Male, 38 years)

Opinions of other participants also provided a similar insight:

I think the main difference of this brand is its’ perspective on women’s issues and giving
priority to these issues. (Male, 26 years, student)

I think the main difference of the brand is to have a voice for women… It is an unexpected
behaviour for a paint brand on Women’s Day (referring to the most recent TV ad on
Women’s Day), so it deserves a different place… (Male, 26 years, student)

I do not separate a brand from its competitors because the brand has prepared an advertisement
for Women’s Day. But this women employment project is unique. (Male, 39 years, academician)
[Referring to works on positive gender discrimination] It is a social revolution… Here
the company deals with social issues. There are perhaps 50 competitor paint brands on
the market. None of them interested (in social issues), only Filli Boya [was] interested in
[social media]. (Male, 28 years, academician)

There were two participants who clearly emphasised difference between

brands in terms of marketing communication efforts. One of them (male, 28
years) compared the ads of Filli Boya with other paint brands:

Other brands’ ads are just about painting and product features. Their main messages
always look like that: I am the quality, choose me, buy me! I think the elephant in Filli
Boya logo already makes a difference. Filli Boya is different. It is different in a favourable
manner. When I think Filli Boya, I don’t remember just painting things. I feel that they
are [the brand] far more than that.

Another respondent expressed the difference about marketing commu-

nication efforts. This difference also constitutes the basis of his emotions
towards the brand:
Advertisement Really Dead? 313

Filli Boya is different from others with regard to marketing communication efforts.

Everything they [the brand] do adds value. ‘Woman House Painters’ ad (and project)
made me feel very emotional as a man. I cannot even predict how women feel. It is an
important work, to provide a profession. Furthermore, it is a very traditional man’s job.
Trying to overcome existing prejudices is not an easy thing to do. Someone may easily ask
that why does a paint brand behave like this? But these are important works, good works.
The perception it created is: Filli Boya is a modern brand. (Male, 28 years, academician)

About the difference, an informant (male, 37 years) emphasised that

despite the brand using different ads and has a different image, he cannot per-
ceive difference in terms of product. His expression is a kind of confirmation
about previous findings showing that Filli Boya includes meanings related
to positive gender discrimination rather than features related to the product
and brand. This finding also indicates low `levels of involvement towards the
product among respondents.

Advertising Effects

During interviews, all respondents were encouraged to recall the advertise-

ments, to share and rate their perceptions of ads, their affective connections
to the brand and also the purchase intentions. Thus, under this heading we
tried to distinguish advertising effects of brand on participants. The findings
of the study demonstrated that except awareness-generating ads, ad recall
rates were significantly low. However, aided ad recalls produced much better
results and all participants expressed feelings and thoughts.
Firstly, we should mention that especially the former logo of the brand
(using a striped elephant) was easily remembered and easily described.

I don’t remember the other brands so clearly, but I remember the logo of Filli Boya since
my childhood: an elephant and a brush as its tail. (Female, 22 years, student)

From the past, I remember Filli Boya name and logo. There was an elephant and there
was something like brush on the nose of elephant. (Male, 30 years, academician)

As can be seen, the image of former logo was described in a detailed way.
This may be due to the compatibility of this logo with the name of the brand.

The name of the brand is also easy to say, it is memorable. (Male, 26 years, student)

Secondly, the awareness-generating ads were easier to remember when

compared with others. All of the respondents clearly indicated their aware-
ness about these ads.
314 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

Ads of the brand were about women’s issues lately. I remember, women house paint-
ers [ad], schools supporting for women (ads), women employment (ads)… These are the
things I remember best. (Female, 22 years, student)

There were three respondents who depicted previous advertisements

partially:

Thinking about Filli Boya, what comes directly to my mind is: Exclude Colors From Life,
What’s Left! (By singing the jingle background). I have positive feelings. (Male, 28 years,
academician)

I remember: Exclude Colors From Life, What’s Left! There was Fahir Atakoğlu (a Turkish
composer) in this ad. (Male, 38 years, academician)

There was an original advertisement, flying colors; there was humor in it as well. They
had used a traditional house painter man stereotype. After than I remember ‘Exclude
colors from life, what’s left!’ (Male, 30 years, academician)

There may be three underlying reasons for easily remembering awareness-

generating ads: First, ads could be evaluated as remarkable. Second, time
effect may help us understand this result, since the latest ads of the brands are
awareness-generating ads. Third, participants’ high level of involvement in
gender issues may also lead to this result. Doubtlessly, a deeper investigation
about advertising effects would reveal more sound information.
Regarding advertising effectiveness, we can also mention ‘ad liking’ of
respondents as one of the commonly used indicators. We see that recent
advertisements of the brand mainly evoked positive or attractive emo-
tions among almost all viewers. Just three examples of them are worth
mentioning:

[Referring to latest ads] Communication activities touch people’s emotions. (Male, 26

years, student]

Ads for women were really remarkable. I like advertisements because it really supported
people who needed it, bread, a job… (Female, 28 years, public worker)

In my opinion, their women house painters project had an incentive dimension for people.
We could feel that ‘Yes, we can do it!’ This ad could pass people positive emotions such
as hope, such as motivation… This ad is one step ahead of the others. (Male, 30 years,
academician)

Additionally, few of the participants highlighted the possible risks of these

advertisements. For example, one of them admitted that this is an effort for
increasing awareness for a social issue, and he appreciated this work of the
brand. However, he also told that these ads could create an illusion in peo-
ple’s mind as if now the problem was completely over. He implied that when
Advertisement Really Dead? 315

someone voiced a problem concerning a social issue, we feel a relief from

burden that we carry. But, practically it does not affect directly to the prob-
lem; the problem is not solved. He attracted attention to the topic with the
following statement:

Ad does not offer a solution, but the way it presents the problem is equivalent to the solu-
tion. (Male, 30 years, academician)

Another respondent also emphasised upon a similar issue in ads carrying

social responsibility messages:

This campaign just seems to be able to create awareness. But I don’t think they can change
it. It can create awareness, but can it actually make a difference on this matter? I am not
sure at all. The man who considers the woman as a secondary citizen also will appreci-
ate the ad. But in the action, he will still remain the same. (Male, 38 years, academician)

In addition, advertisements are assumed to have effect on favourable

behavioural intentions towards the brand over time (Spears & Singh, 2004),
such as recommending the brand to others, telling positive things about
the brand and buying intention. The findings contain rich information
about the views of the participants with regard to these effects. Most of
them expressed their positive attitudes towards the brand both openly and
implicitly. As an example, one of them openly expressed his feelings about
the brand:
Among other brands, it looks like not only more qualified but also warmer. (Male, 37
years, academician)

Another respondent stated that she would recommend the brand to others:

Perhaps, I can recommend Filli Boya to others. Despite that I don’t remember previous
ads; I think their works on women could be impressive on my decision subconsciously.
This is why my attitude is favorable [for them]. They did a good job in women’s issues.
(Female, 35 years, worker)

Here she drew attention to the brand’s awareness-creating effort. A similar

response came from another participant:
They have a clear attempt to creating employment for women. This is a concrete step.
So, I can prefer brand in order to support this attempt. (Female, 37 years, academician)

As observed, the advertising effect here is the brand’s preference. The justi-
fication behind her decision was that she wanted to support a functional social
responsibility project which deemed appropriate to her own values. Indirectly,
we could also interpret the relative importance of social responsibility project,
316 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

rather than advertising. Another male respondent stated this implication

clearly as follows:

I don’t buy Filli Boya because of its ads. But I can buy Filli Boya because of its social
responsibility project [referring to women house painters campaign]. Just for this reason.
Because the only way of decreasing violence against women is to make them employed.
All other methods will be useless. (Male, 39 years, academician)

As could be seen, Filli Boya managed to gain attention and acceptance of

the participants who approach skeptically to such things. Even a person who
expressed negative attitudes towards advertisements and critiqued most of
the social responsibility projects for being useless could express a preference
towards the product.
An important point that should be emphasised here is that consumers may
behave differently than in actual shopping and consumption environments.
As one of our respondents expressed:

In the commercials, Filli Boya is the most active company. But, of course, it does not
mean that we always support it because of good advertising. I don’t exactly remem-
ber when the last time I painted my house was, but I think we bought Marshall. I
usually work with a painter man and he generally decides to paint brand to be pur-
chased. He does not offer a choice, also we don’t want to involve. (Male, 33 years,
public worker)

To summarise, Filli Boya could be evaluated as a successful brand in terms

of all levels of advertising effectiveness from ad liking to buying intention.
On the whole, this final statement most clearly reveals the subject:

If we put all paint boxes side by side, I would buy Filli Boya. It sounds warmer. Until
today, I thought that I like the company because of its logo. But now I realize that it may
due to previous advertisements… Even though I am always defensive toward ads, the
brand might create good feelings on me. (Male, 30 years, academician)

CONCLUSION
This case depicts the marketing communication of an unusual brand, Filli
Boya, in the paint industry. The purpose of this study was to provide a better
understanding of how TV advertisement, the so-called ‘traditional and bor-
ing’ communication tool, could still be effective when integrated into the con-
temporary marketing approaches in the world of not only advertising clutter
but also ad resistance.
Advertisement Really Dead? 317

Strategically, the success of Filli Boya lies in incorporating contemporary

marketing philosophy such as corporate social responsibility, and marketing
communication trends, such as real-time social media marketing.
Practically, the difference created by Filli Boya could be explained by three
factors. First of all, the company systematically used cohesive and consistent
marketing communication messages and integrated them into different com-
munication channels to send the target market a clear, a consistent message
about their image. As seen in this case, marketing communication of Filli
Boya always created positive value in the minds of consumers. From the very
beginning, the company adopted effective message strategies in all forms of
its marketing communications. By using it in a consistent and continuous
way, these strategies helped the brand in invoking positive feelings and trans-
ferring them to produce quality and brand perceptions.
The second factor behind brands’ success is to exhibit its sincerity and deci-
sive position clearly in every single step. As one of these steps, the company never
mentioned its name in TV advertisements for Özgecan out of respect for the
case itself. Although a few skeptical responses were received claiming that the
brand exploited the Özgecan case in order to raise its own reputation, mainly
this decision was perceived as a sincere attempt because – as another step -
Filli Boya had never used a hard sell approach in its marketing communica-
tion, and never provided detailed information about the product and product
features. Instead, they have generally used more indirect and emotional mes-
sages. The consistency among these two steps helped the brand in convincing
the audience about its sincerity. Creating an in-house agency is another step,
indicating the brand’s sincerity. With this decision, the brand has taken the
responsibility of direct communication, implying that brand takes commu-
nication tasks seriously. Furthermore, we know that its CEO actively works
within this advertising agency. Finally, with the brand values defined by the
company such as positive gender discrimination, the brand takes a risk of
being against dominant political and ideological discourse. Again, this atti-
tude could be regarded as a sign of sincerity. So, it is foreseen that all these
factors imbue a holistic effect on consumer perceptions about sincerity.
Third, and finally, Filli Boya used TV advertising in the most proper way
for its purpose. TV advertisement that the brand used in the Özgecan case
was first on national TV channels in terms of advertisement format. No logo,
no company name, no advertiser was mentioned in the ad. The goal was two-
fold: on the one hand, the brand didn’t exhibit its name out of respect for the
case itself, and on the other hand, the hashtag helped people connect around
ideas presented in the case across social media. So, the company had man-
aged to create a viral campaign on social media through TV ads. This form of
318 ÇIĞDEM BAŞFIRINCI AND GÜLCAN ŞENER

advertising was not only new as a format but it also included a new applica-
tion in terms of media planning, which is called ‘road blocking advertising’.
So, the ad (a total black screen with a hashtag: forÖzgecan) was seen on all
(30) TV channels at 9:00 pm, and the brand ensured that everyone had seen
the ad. Thus, increased attention was created for both case and the adver-
tiser. All these factors facilitated the growth of related content across social
media for both the Özgecan case and Filli Boya. From that day on, Filli Boya
has maintained its stance consistently by developing not only women-based
social responsibility projects but also using challenging TV ads. These ads
perform as a tool that launches discussions on social media.
While it is possible to discuss the success of the brand on the axis of social
responsibility and real-time social media marketing, considered all together it
could be claimed that the deserved triumph of Filli Boya is specifically a result
of how it used TV ads. At first glance, this claim may not seem plausible for
a brand which has a contemporary marketing philosophy. But the factor that
moves Filli Boya one step further than other brands is its success in advertise-
ments. In other words, as emphasised in the Findings section, today neither
preparing social responsibility projects nor preparing new advertisements
special to the agenda help companies to achieve greater competitiveness and
business success, since all these modern approaches are very common today.
Of course, the desired position of Filli Boya is mainly supported by corporate
social responsibility, real-time social media marketing and a sincere intent
behind all these efforts. However, without TV ads, the brand would not have
been in the same place today. Thus, aside from all other desired effects, Filli
Boya has shown us that TV ads still could be used effectively, creatively and
integratedly despite all the criticism about being too ordinary and traditional.
Showing readers that advertising is still functional when used properly and
creatively, this case study offers many useful lessons for those who wish to
create communication efficiency through advertising.

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buyuk-sanayi-kurulusu/2016/. Accessed on May 30, 2017.
Yüzbaşıoğlu, S. (2012, May 18). Şirketler ‘magazin aşkı’ peşine düştü. Retrieved from https://
www.dunya.com/ozel-dosya/isim-iletisim/sirketler-039magazin-aski039-pesine-dustu-
haberi-174434. Accessed on May 31, 2017.
CHAPTER 7.3
WORD-OF-MOUTH MARKETING

Renan Tan Tavukçuoğlu

ABSTRACT

People tend to rely on the recommendations of people they know more

than any other advertisement medium. Friend-recommendation and online
reviews are the primary criteria considered before making most purchase
decisions. Increase in the number of media channels, having too many prod-
uct options to choose from and the massive amount of advertisement pieces
lead the way to the success of word of mouth once again. With recent devel-
opments in technology and increase in the number of social media tools and
users, word-of-mouth marketing (WOMM) became more important than
ever. There are many ways to empower positive word of mouth on behalf of
corporate brands. The present chapter aims to summarise the key points of
WOMM and provide the readers with a roadmap and tools for successful
WOMM applications.

INTRODUCTION
Even those deaf to the bragging cries of the marketplace will listen to a friend.
—Paddi Lund (Cited in Silverman, 2011, p. 24)

Marketing Management in Turkey, 321–349

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181022
321
322 RENAN TAN TAVUKÇUOĞLU

Word-of-Mouth Marketing (WOMM) is defined as the act of communication

between consumers on behalf of a product or a service (Silverman, 2011).
Although any business action that earns a customer recommendation can be
seen as an act of WOMM, in the world of creative campaigns and engage-
ment techniques, WOMM is more about harnessing the power of people to
build brand awareness (Wommapedia, n.d.).
In their day-to-day lives, people talk about schools, washing machines,
restaurants, movies, shampoos and everything else. These daily conversa-
tions generate over 3.3 billion brand impressions each day (Word of Mouth
and the Internet, 2011). These conversations determine what customers buy.
WOMM is among the best, most influential and credible communication
styles a brand can get. It’s not a Business to Consumer (B2C) communica-
tion but Consumer to Consumer (C2C) one (Sernovitz, Godin, & Kawasaki,
2006). As you can see in Fig. 1, people take actions more readily based on
the recommendations of people they know and trust them the most. If the
company can get consumers talk among each other about the brand, it means
that it has the new prime-time covered.
Word-of-mouth marketing is subjective by definition, and that is why it is suc-
cessful (Trusov, Bucklin, & Pauwels, 2009). In today’s world, people can access
more information than they need. What consumers need are experience-driven
comments, recommendations and warnings. This is provided by WOMM.

Fig. 1.  Advertising Trust and Response per Global Consumers

(Marketing Charts, 2015).
Word-of-Mouth Marketing 323

Word of mouth (WOM) has an impact on diffusion and sales. This chapter
aims to outline how it works. For this purpose, first the history of WOM and
its value will be explored. Following these, how WOM is used in the world, its
applications and fundamental elements of WOMM will be explained using
examples and case studies. The place of WOM in Turkey will also be dis-
cussed by referring case studies based on the author’s own practice. Finally, a
roadmap will be provided for the readers.

HISTORY OF WOMM
The history of WOMM is as long as the history of humanity (Silverman,
2011). We see the very first example when Eve offers that piece of juicy and
delicious fruit to Adam. However, since its use as a marketing tool emerged
with the rise of communication tools and their frequency, too many messages
targeting the same people at the same time creates unwanted communications.
Marketing guru Godin (2012) refers to the current communication method
as disturbing. The company, as a brand, appears to a consumer at a time
when it is not expected and welcomed. The company, as a brand, pokes peo-
ple, which is not really the nicest way of communicating. What the company
should do instead is create relationships, try to understand its audience and
act accordingly.
At times of single company with few products, not much communication
was needed. Customers bought ‘it’. As choices increased, customers bought
what they ‘trusted’. Then came desires. Customers started to ‘fancy’ some
brands and that’s the outcome of advertising era. With rise in individualism,
customers ‘preferred’ some brands over others. Advertising and marketing
have always been a mirror of social and political canvas (Firat & Venkatesh,
1993). Then came a stage where customers have to ‘like’ what they buy.
Products need to serve a purpose and be likable as well as define who are
their purchasers. And today customers buy what they are allowed to contrib-
ute (Silverman, 2011). Co-creation is extremely valuable today. Again, it’s all
about being human.
Rogers and Shoemaker (1971) introduced the Diffusion of Innovation
Theory that explains how, why and at what rate new ideas and technology
spread. The theory shows how a product can be adopted by different cat-
egories and/or customer types and how to engage as a business with differ-
ent types of people. Rogers and Shoemaker (1971) state that it is extremely
important for the companies to change their media and communication strat-
egies according to different types of customers they are facing.
324 RENAN TAN TAVUKÇUOĞLU

Today, with the given technology, getting to know the target audience is
pretty easy. Brands can track online conversations, foresee trends, understand
expectations and analyse segments. Drafting 360º communication strategy
requires flexibility and change. Digital gains more share of the pie each day
(IAB Turkey, 2015). Media buying is changing. Brands need to stay relevant.
Messages need to be given at the right place and at the right time. Brands
ignoring these facts are to be ignored themselves.
One important tip about this marketing tool is to distinguish between
online and offline WOMM (De Bruyn & Lilien, 2008). It is extremely impor-
tant to distinguish the online world from the offline. Dependence on the data
from the online world can be misleading at times that requires a decision for
the general market, including the offline world.
‘What’ you say to ‘who’ and ‘when’ matters highly.

VALUE OF WOMM

Getting people to talk often, favorably, to the right people in the right way about your
product is far and away the most important thing that you can do as a marketer.
—(Silverman, 2011, p. 6)

Word-of-mouth marketing comes from a person we know or from a source

we trust (Silverman, 2011). It is not a monologue travelling from the cor-
porate world to the consumer but a conversation among real consumers.
WOMM has several advantages over traditional methods: (1) It is perceived
as more credible and honest, (2) it saves time and money and (3) it makes
people feel smart.
What is the true value of WOM, online and offline, relative to other mar-
keting media? This has been the ultimate question for the WOMM world for
a long time. In 2014, Word of Mouth Marketing Association (WOMMA)
unveiled a third-party research to measure the precise return on WOMM.
Before this study, consistent measurement of WOMM was lacking. Although
WOMM is believed to be a strong business driver, difficulty in measuring pre-
cise return on WOMM has been the largest obstacle for marketers embrac-
ing online and offline WOMM. There’s been no major independent study
quantifying WOM’s impact across categories and using market mix modeling
(WOMMA, 2014)
Major brands, including AT&T, Discovery Communications, Intuit,
PepsiCo and Weight Watchers, participated in the study and contributed their
Word-of-Mouth Marketing 325

Fig. 2.  Return on Word-of-Mouth Study (WOMMA, 2014).

326 RENAN TAN TAVUKÇUOĞLU

confidential business data and funding. Results showed that WOMM had a
total marketplace impact of $6 trillion, and it was found that the effect of a
WOMM impression is anywhere from five to 100+ times more valuable than
a paid media impression (WOMMA, 2014). Furthermore, WOMM is found
to work hand-in-hand with paid advertising, amplifying its impact by 15%.
Two-thirds of this social influence happens offline (face-to-face or over the
phone) and one-third online (through social media of various kinds, includ-
ing social networking sites, ratings and reviews, blogs and the like). For fast
moving consumer goods (FMCGs), offline WOM is worth five times more
than a paid media impression. For higher consideration categories it’s more
than 100 times more valuable. WOMM drives a significant portion of sales
– 13%. WOM has a more immediate impact than traditional media. About
90% of online WOM impact is in the first two weeks. About 73% of offline
WOM impact is also in the first two weeks (WOMMA, 2014) (see Fig. 2).

WOMM ACROSS THE WORLD

People talk about brands under two conditions: either they’re very good, or
they’re very bad (Escalas, 2004). This is the organic way of people talking.
Under the ‘marketing’ hat, I use tools to make this happen – of course in a
positive way. Based on my years of experience in the field, I have created a
formula for WOMM success:
WOMM = Experience/Expectation.

A GREAT EXAMPLE
Here is the summary of the greatest customer service story I’ve heard:

About six weeks ago during my kids’ spring break I was in Los Angeles on business, so
we decided to send my wife and my two kids up to Amelia Island Plantation to the Ritz-
Carlton. There they did what a lot of people do when they drive somewhere on vacation,
which is, they forgot to bring some of the stuff home. What they left behind was my son’s
effectively teddy bear/blanket.

I came home and when I was putting him to bed the first night, it turns out we didn’t
have his Joshy. He was inconsolable, so I did what a lot of dads do when your son is
inconsolable, which is, I made up a big whopper a big lie and told him that surely Joshy
just wanted to stay on the vacation for a few extra days and go play golf and hang by the
pool and things like that. When I [told] my wife what happened, she said, well we just got
Word-of-Mouth Marketing 327

a phone call, they found him in the laundry, which [was] great. So now I call[ed] up there
and ask[ed] to speak to someone about this to give them sort of my imaginative idea. A
couple [of] days later in the mail [came] Joshy with a photo of him hanging around the
pool with sunglasses, having dinner, another one working at the office to pay for the extra
day of stay, Joshy decided that since he was going to be at the hotel for a few more days
that he would get in some much-needed relaxation. (Hurn, 2012)

This is a great example of experience exceeding way beyond expectation. It’s

when the company gives people more than what they expect so that they end
up talking about the company. And the shortcut comes from inside: feelings.
Feeling important, smart, useful, like a part of a team and an insider triggers
WOMM (Silverman, 2011). What consumers truly value can be complicated.
Value attribute determines WOMM. Almquist, Senior, and Bloch (2016) tested
different industries with different value elements. They showed that right value
combinations for a good or a bad service pay off in stronger customer loyalty,
greater consumer willingness to try a particular brand and sustained revenue
growth. Below you can see the Elements of Value Pyramid created by Almquist
et al. (2016) on which the results of this study are based (see Fig. 3).
This great study suggests the fact that the elements of value approach
extend Maslow’s (1943) Hierarchy of Needs. Being who you are, where you
live and what you do determines your priorities and what’s important to
you as a consumer. Companies that performed well on multiple elements of
value have more loyal customers than the rest. Strong performance on mul-
tiple elements correlates closely with higher and sustained revenue growth as
well as market share growth (Almquist et al., 2016). These results show how
important what people feel are? They talk when they feel. Finally, one of the
most important outcomes of the study is that no other elements can make up
for a significant shortfall in quality. This outcome leads us to Godin’s (2012)
Circles of Marketing.

THE MOST IMPORTANT DETAIL: MID CIRCLE

One thing to always keep in mind is that if the company has a bad product
or service, no one can help it. Godin (2012) puts this in a way that every mar-
keter should take a printout and frame it as I have done (see Fig. 4).
He simply tries to say that marketing is not the very first thing a company
should go right after its launch. There’s a lot the company needs to cover
before that. In order for WOMM to happen, company needs to pave the way
towards perfection for the goods and services it provide.
328 RENAN TAN TAVUKÇUOĞLU

Fig. 3.  Elements of a Value Pyramid (Almquist et al., 2016).

Good examples of this theory are proven by good movies and brilliant
books (Liu, 2006). No good book or a good movie goes unrecognised. It
may take some time but at the end, when it hits the right crowd, it spreads
Word-of-Mouth Marketing 329

Fig. 4.  The Circles of Marketing (Godin, 2012; used with author’s permission).

like a wildfire. The sooner the customers discover, the sooner the profits soar.
As we all know, time is money. Decision speed is the time it takes for the cus-
tomer to go from initial awareness to enthusiastic full use and recommenda-
tion of the product or the service. WOMM practitioners can help shift the
adaptation curve towards left a little bit, which means time and money for
the producer.
The amount of time required to make a decision on a product is the most
powerful determinant for the success of marketing (Silverman, 2011). The
speed of decision-making is more powerful than positioning, image, value,
customer satisfaction, guarantees or even product superiority, since it forces
the buyer to organise these factors and many more into the best possible com-
binations. WOMM works as an acceleration system and can cut the decision-
making time to half (Silverman, 2011). Therefore, it is extremely important
to support the company’s marketing with WOMM. Next section looks at how
to do WOMM correctly.
330 RENAN TAN TAVUKÇUOĞLU

THE FIVE Ts OF WOMM

My WOMM practice for the last 12 years always included the sequence devel-
oped by Sernovitz (2012). The sequence involves five Ts (see Fig. 5). With our
client brand, we need to determine the following:
TALKERS: We have to define our audience. We’re not doing mass com-
munication here. We’re not targeting everyone or talking to everybody. We
know who we want as a customer, ideally for a long time.
TOPICS: We tailor the conversations so that we control the topic.
Especially when you work for slightly controversial products such as food,
etc., you need to make sure that no one shifts from your conversation topics,
so you need to set them concretely.
TOOLS: When we first started implementing WOMM campaigns in
Turkey back in 2005, there was no popular use of social media. Few compa-
nies just started using Twitter. Facebook became popular in 2007. It wasn’t
until 2010 that social media usage became a phenomenon and that’s when our
measurements became easy. However, online tools are not the only ones you
can use to measure return on investment (ROI). They help the message travel
fast but it does not guarantee the effective landing. Incorporation of both
online and offline tools is important.
TAKING PART: WOMM declares the end of a brand–consumer commu-
nication era. No more monologue by the brand – conversation is demanded.
Brands are expected to talk, especially when they are asked. Manners always
apply in marketing too. If you open the door for communication, you need
to respond.
TRACKING: This part is the one that would change in a speed of light
if not before the publication of this book. It became so easy to track what
people are saying about you. In a recent play, a famous actor told on the stage
that 10 years ago they used to send out the bell boys after the play was over
among the crowd to test the reactions (A. Poyrazoğlu, personal communica-
tion, 2015). And this was only a decade ago. Today, in 2018, the reactions are
at our fingertips, in real time. A summary of the five Ts can be seen in Fig. 5.

CASE STUDY: EBEBEK

Here, I would like to elaborate on the details of a baby diaper campaign that
we designed in April 2017 for Ebebek’s brand: baby&me, and how we applied
the five Ts of marketing. We are really lucky to have good solution partners
Word-of-Mouth Marketing 331

Fig. 5.  Five Ts of WOMM (Sernovitz, 2012).

such as Migros and ebebek for years now. We do not only pick the right con-
sumers within the big data but also keep track of ROI by the tools they pro-
vide. We collaborate and reach the prime prospects within 100% target range.
Entering a well-established market is a challenge but ebebek has a strong
brand reputation and trust supporting it. Insights from this high-priority cat-
egory users told us about the consumers willing to shift brand and those not
willing to shift: the younger the baby, the less the possibility of willingness to try
something new. So we decided to come out with the Size 4 communication plan:
TALKERS: Mothers who are not hesitant to purchase different diaper
brands of size 4.
TOPIC: Benefit, benefit, benefit, plus community engagement motivations.
TOOLS: Competitions, events, live chats, discount coupons and surveys
to be distributed.
TAKING PART: All comments and messages were answered within a 24
hours. Community dynamics were recognised and acted upon.
TRACKING: We used online monitoring tools; however, we also did
manual tracking for the sake of increasing engagement as well as coming up
332 RENAN TAN TAVUKÇUOĞLU

with real numbers. The impression doesn’t count in WOMM, so we were after
organic and unique engagements.
Within eight weeks of the campaign period, we had a daily agenda where
we asked mothers to co-create content. They used and distributed the materi-
als they received in their kit. We did not only ask for their feedback but also
collected feedback from their friends through surveys that we asked them to
distribute.
Net Promoter Score (NPS) is a loyalty and growth indicator (Reichheld,
2003) and it is an extremely important indicator for newcomers to the mar-
ket. Since this was a launch product, we didn’t wait until the end of the
campaign to measure NPS but acted early. This allowed us to redesign some
of the messages. At the end of the day, the most important key performance
indicator (KPI) is ‘sales’. We believe in the power of real mothers and real
conversations. Social media engagement is always ‘nice to have’ but you
never know how much of it converts to sales unless you design it that way.
High-involvement categories, such as baby products, benefit highly from
organic WOMM (Lee-Thomas, Mullen, & Fraedrich, 2011). Market share
distribution will be the indicator of success in real experiences, recommenda-
tions and WOMM (see Fig. 6).

WOMM IN TURKEY
Word-of-mouth marketing is a multi-million dollars industry in the United
States as well as in Europe. However, in Turkey, the industry has not estab-
lished itself yet. There aren’t many players in the market (Seven, 2012).
Increasing numbers of digital agencies do a lot of work but don’t perform
holistic WOMM services.
To reach a holistic WOMM, we must start with a community! A commu-
nity is a group of people with diverse characteristics who are linked by social
ties and share common perspectives (MacQueen et al., 2011). McMillan and
Chavis (1986) identified four elements of the sense of community: member-
ship, influence, integration and fulfillment of needs, shared emotional con-
nection. No brand-supported community can be as strong as an independent
one. By definition, communities cannot be generated by profit-seeking
brands. Groups of people created and managed by brands can be used for
‘loyalty programs’.
After working with Turkish consumers and brands for 12 years, it was
my decision to form an independent women’s community that would be
Word-of-Mouth Marketing 333

Fig. 6.  ebebek Baby&Me WOMM Campaign, 2017.

managed as a real community so that brands could also benefit from it. Our
WOMM community of WOM Angels, Tavsiye Melekleri, was founded in
2012 as a women’s community in light of the community realities described
above.
Globally, women take decisions for the purchases of 94% of home fur-
nishings, 92% of vacations, 91% of homes, 60% of automobiles and 51% of
consumer electronics (Silverstein & Sayre, 2009). After working with different
segments of consumers for years and under the light of consumer research,
we concluded that women are the most important segments of WOM. We
believe in the power of women in terms of both economic and social impact.
Back in 2012, when we started Tavsiye Kanalı, Turkey’s most influential com-
munity and WOMM agency, this was the reason given. Our women’s com-
munity can do many things besides participating in WOMM campaigns of
Tavsiye Kanalı and events at Tavsiye Evi.
We wanted to name the community in a way to motivate as well as to
be self-explanatory. So we called the members: WOM Angels who help each
other to make life easier and better. This is our motto. We help each other
for a better world. This psychology worked extremely well in recruiting data.
We did not need to introduce any product campaigns to start building the
community. Whoever discovered our platform, started sharing messages and
social media posts saying: ‘I became an angel, why don’t you join me!’ Today
we have roughly 100,000 members from 81 cities of Turkey, and we believe in
334 RENAN TAN TAVUKÇUOĞLU

the power of each and every one of them. A similar community operating in
the United States called BzzAgent operates in a similar way:

When we started BzzAgent, we believed in the myth of the influential. It took nearly a
year of campaigns and thousands of interactions with BzzAgents for us to understand
that mavens and high-profile influential are effective in specific ways and in particular
categories, but that most of the time, everyday people are better. They are the ones who
are having word-of-mouth interactions that generate results-creating awareness, changing
perceptions and driving sales. They are the ones who make and break products and ser-
vices every day. Ask yourself, when was the last time you were influenced by an influencer?
Not recently, I bet. (Balter & Butman, 2005, p. 92)

Not everyone has a tendency to register with communities such as

BzzAgent or WOM Angels. The ones who register though are measured to be
above-influential. We exactly witness this being true in Turkey. Members of
such communities have about three times more social impact than an average
social media user (Trusov et al., 2009).
Here is a list of some of the firms that we have been serving since 2012:
Migros, Profilo, ebebek, L’Oreal, Philips, Doğan Kitap, Ülker, Tefal,
Rowenta, Bosch, Pınar, Eker, Dimes, Viko Panasonic, Silk’n, Doğtaş,
Waternet, Vitra, English Home and Sanofi. Industries we work include
FMCG, retail, publication, electronics, household appliances, furniture and
pharmaceutical OTCs.

HOW WE DO IT
Word-of-mouth marketing is not and should not be a campaign type. Rather it
should be an overall strategy (Allsop, Basset, & Hoskins, 2007). Putting the con-
sumer first and really understanding their needs requires collective effort within
a company. Here is a sample route map for success that I share with my clients.
We came up with this list for WOMM success under the light of the results of 12
years of WOMM campaign designs and implementations through our practise.

10 STEPS TO WOMM SUCCESS

1. Determine prime prospects.

2. Measure current NPS. To do this, one has to ask people to rate how likely
they are to recommend a service or product to their friends on a scale of
0 to 10. NPS is then calculated by subtracting the percentage of detrac-
tors (0–6) from the percentage of promoters (9–10).
Word-of-Mouth Marketing 335

3. Listen to these consumers’ organic conversations. Conduct as many

focus groups as necessary to understand all segment needs. These focus
groups seek different outcomes than traditional research. The product
is not evaluated. Rather the conversations are the prime topic of these
research studies. The messages that the brands favour do not always stick
the most. Once the product is in the hands of the consumer, it is not in
the hands of the company anymore. In order to manage this relationship,
co-operation and co-creation are the keys.
4. In order to create and accumulate brand enthusiasts, brands need to be
real, sincere and determined. Determined for cooperation, co-creation
and sustainable dialogue. They need to work with people who under-
stand community dynamics. Loyalty programmes do not serve as com-
munity management.
5. Real products, real people, real comments. At this point, the company
should not go after millions. In today’s communication world, brands are
mostly tricked by numbers. Digital reach, especially triggered by prizes, is
not the happy sign of profit or increase in market share. Company’s KPIs
should be set wisely.
6. Create relationships with your prime prospects. Our experiences in the
field showed that this is not always possible to do in-house for big firms
as they may not have the priority to invest in systems and/or people to
create relationships with the customers. However, if this task is assigned
to some of the employers or agencies, it pays off. This helps the company
to form much-needed long-term conversations, since once the conversa-
tions start, people expect them to go on.
7. Work with functioning communities. Experiences from our practice
showed that quantity does not always lead to quality. Having a large
database doesn’t mean that these people would respond as if they were a
community.
8. Have people start ‘talking’ about your product. Brands that are not
talked about cannot grow!
9. Measure. After the company implements WOMM strategies for a signifi-
cant period, it should start measuring NPS on regular basis, as well as
conduct post-surveys.
10. The company always needs to be flexible for change after it gets the
results from these measurement studies.

To repeat, WOMM must be a holistic effort (Kozinets, De Valck, Wojnicki, &

Wilner, 2010). Below is an ideal scenario and dream of a traditional advertiser:
The brand’s target market realises the ATL communication as soon as it
airs. BTL communication is also realised and absorbed. The consumer goes
336 RENAN TAN TAVUKÇUOĞLU

and buys (either as a first trial or buys more) the product, and she not only
uses it herself but starts promoting willingly to her friends whom she finds
relevant, with her own words that she knows they need to hear.
And here are some facts:

• Word-of-mouth marketing campaign success increases by 30% if you send

out products to women right before you start traditional communication
(Lopez & Sicilia, 2013). We have experienced it in numerous campaigns
that we have conducted over the years.
• Women don’t care about BRANDS. They care about BENEFITS (Kotler &
Armstrong, 2010).
• Average response rate in our WOMM studies is 60%. This rate of engage-
ment can be reached by no other media (De Bruyn & Lilien, 2008).
• Investment in WOMM is much more valuable and is for long-term than a
30-second TV spot, a print ad or an outdoor communication. It offers the
most effective ROI measurement (Libai, Muller, & Peres, 2013).

How Our Community Works with Brands

Word-of-mouth marketing is not mass communication; rather it targets only

the core audience (Trusov et al., 2009). We work with prime prospects and
aim for the spill-over effect. WOMM is an integral part of a 360º communica-
tion plan (Kozinets et al., 2010). It’s an amplifier. We can only work with the
brands who understand the essence of WOMM.
The following is our business flow at Tavsiye Kanalı from A to Z in imple-
menting WOMM campaigns:

• We receive the brief of the brand.

• We determine KPIs together.
• We conduct a pre-survey to determine the right audience.
• We invite couple of small groups for further investigation and test messages.
• We draft a kit. We include conversation trigger elements as well as a eight-
week-long agenda.
• Real women and real experiences are targeted. We don’t only work with
bloggers as we know that micro-influencers are six times effective than
Influencers (n.d.) with number of followers (Main, 2017).
• We assign missions to our members.
• Individual response is another key to our success. All Direct Messages (DMs)
and messages are to be answered within 24 hours (12 hours is the better time).
Word-of-Mouth Marketing 337

• We encourage consumer-generated content creation. Women do online

research before they decide to purchase an item. They don’t like to read
texts. Video content is a shortcut for success. We create online content as
well as invite our users to do so.
• All campaign content should be Search Engine Optimization (SEO)-
friendly.
• After eight-week period is over, we conduct a post-survey and can report:
increased awareness, change in purchase intent, coupon redemption rates,
the number of blogs, tweets, Instagram and Facebook posts with our cam-
paign hashtag.
• We ask open-ended questions. After analysing each one of them we make
suggestions for strategy, trends and actions to be taken.
• NPS is a key indicator that we focus on. We also comment on the needs of
the brand to blossom, features to polish and things to keep doing better in
the long run.

Case: L’Oreal

We have partnered with L’Oreal for many campaigns. Here, I would like
to outline the details of a launch campaign in 2015: L’Oreal Excellence
Intense.
TALKERS: Women who dye their hair at home using different brands of
hair dye, determined via a survey among our database (see Fig. 7).
SES: A, B, C1, talkative opinion leaders who attend ‘gün’s’ weekly social
gatherings.
TOPIC: Amazing bright and shiny colours achieved by this new hair
dye. One colour of their choice, determined by a second survey, sent to their
addresses.
TOOLS: Kit, magnet, one original size, colour of their choice hair dye, 10
discount coupons, one magazine to read while waiting, one pen for crossword
puzzle (see Fig. 8).
TAKING PART: Our members were asked to visit the brand website and
share testimonials online (see Fig. 9). Istanbul residents were invited to a
party hosted by L’Oreal at Tavsiye Evi (see Fig. 10).
TRACKING: Coupon redemption was again above average as always. We
used online monitoring tools, but we also did manual tracking and observed
the positive influence on our members for receiving the product kit right
before the advertisements started.
338 RENAN TAN TAVUKÇUOĞLU

Fig. 7.  Participants.

Fig. 8.  Tools Shown by a Participant.

Word-of-Mouth Marketing 339

Fig. 9.  Testimonials of a User.

Fig. 10.  Hashtags to spread the word

340 RENAN TAN TAVUKÇUOĞLU

Case: Philips Lumea

With this Philips campaign, Tavsiye Kanalı was one of the first agencies to
use micro-influencers in Turkey in April 2016. During and after their trial,
testimonial videos were shot and broadcasted on YouTube. The most impor-
tant KPI for the brand was for Philips Lumea to appear on the screen with
consumer-generated content when women searched for the category, which
was accomplished (see Fig. 11).

Tavsiye Kanalı Operations

As a company, we do not work with a product if we tried and did not like
the product. Once we ensure the quality, the rest lies in the hands of the con-
sumer. For a successful WOMM campaign, one must proceed with a purpose
behind it (Wommapedia, n.d.). The aim should be to provide insight into the
dynamic world of WOMM, rather than creating a buzz around a specific
brand. Moreover, understanding how advocacy works is a must as well as

Fig. 11.  A Sample Post by a Campaign Participant of Philips Lumea, 2016.

Word-of-Mouth Marketing 341

figuring out the ways to provide consumers with ways to express their opin-
ions in accomplishing the reach and the return that brands are looking for. To
reach propensity one must grow the experience.
Objectives of our brands vary. Some examples are as follows:

• Overcome first trial barrier.

• Convert from the competitor brand.
• Increase in social media appearance.
• Increase the number of organic positive online reviews.
• Shortening the time for adoption in the case of starting a new segment.
• Increase the level of loyalty.
• Be a topic of daily conversations.
• Increase sales by the power of recommendation.
Silverman (2011) also emphasised the situations that are benefitted from
WOMM as: credibility problems, breakthroughs, marginal improvements,
needs in a large number of trials over time, mature products with new stories,
unfair competitive practices and restrictions.
Following is Tavsiye Kanalı’s operation flow designed for the needs of our
brands’ WOMM needs:
Survey. Among 100,000+ women, we need to find out who fits the target
market definition by first conducting a generic and unbranded survey. They
answer what type of skin or hair they have, how often they use butter, what
brand of detergent they buy from, where, and how often, etc. So now, we
know who to invite for the next steps.
Research. WOMM research is different from traditional research. In the
first half of our sessions, we just listen to organic responses without introduc-
ing any message, brand or product. In the second half, after we introduce our
concept, we seek answers to different questions, such as the following:

• What is ‘the one thing’ that you would tell your friend about this product?
• How do you think your friend will be convinced to buy this product?
• What are the things that you like the most about this product that you
would share with your friends?
• How and where would you feel more comfortable to talk about this prod-
uct with your friends?
• In case we send it to you as a kit, what else would you like to see inside the
box?
• Would you buy it? Why?
• What else would you like to know about this product?
342 RENAN TAN TAVUKÇUOĞLU

Tip: High-involvement categories prove to be more successful than low-

involvement categories in terms of campaign results. Baby products, children
products and beauty products prove to be the highest involvement categories
whereas cheap and low-involvement category products need more creativity.
Kit preparation. Along with the results of our own WOMM focus groups,
we collect all product information, briefs and online chat analysis. This is
when we sit down to come up with the creation of messages that ‘stick’ and
tools to spread them. The objective of the brand determines the channels and
the tools we will use.
After the approval of the brand, we produce and mail kits to 1,000–3,000
women to test and try for eight weeks.
Campaign period. WOMM campaigns mostly last for eight weeks. In the
case of books, beauty products, etc. it takes longer to test, or for products
that are stored for a longer period, we extend the time to 10 weeks, sometimes
to 12 weeks to see the results. Within this period, one consumer is asked to see
many people from different environments. We wish for and want dispersion.
One person reaching out to colleagues only is not enough. We would like
to follow them throughout different social occasions where they get to meet
family, friends and even talk to strangers about our products/services.
One member of our community can attend to maximum two WOMM
campaigns within the same period. We give equal opportunity to all mem-
bers; however, they also need to be active in answering surveys so that we get
to pick the right crowd for the campaign.
During the campaign period, we have an agenda for each day. We interact
with our crowd, give missions, execute competitions, invite them for events
and ask for videos, pictures and testimonials. We maximise benefits out of
this mutual relationship investment. Most is manual work, even though we’re
dealing with a digital world dominantly.
Reporting. ROI is to be measured by estimations on TV, print and outdoor.
However, with WOMM, all is measurable if you do it correctly. Online KPIs
such as blog posts, tweets, Instagram and Facebook impressions, comments
and engagement are easy to measure and report. However, with WOMM, our
intention is to speed up the decision process through spillover effect. At this
point, our retail solution partner Migros is of great help. For example, once we
worked with an ice cream brand in the month of Ramadan; we used gift cards
to upload free products. And later we could track how many more of the same
flavour or different flavours of ice cream these loyalty cardholders purchased.
Word-of-mouth marketing promises something different; we promise
results and we’re determined to see what works and what doesn’t. Along
Word-of-Mouth Marketing 343

with measuring the results we always put on our analysis and make sug-
gestions for a better world for our brands. We can look through the eyes
of the brand as well as from the eyes of consumer. That’s the value of our
reports.

One Unique Medium: A WOMM House: Tavsiye Evi

Facts:

• Face-to-face communication is more effective than online communication

when it comes to WOMM (Brown, Broederick, & Lee, 2007).
• Women in Turkey are accustomed to home gatherings. We call them ‘gün’.
• Brands value the conversations taking place at güns.
• Direct and meaningful contact with consumer is essential for loyalty.
• Real women and real experiences beat any form of advertising.
Under the light of these facts, in 2013, we opened a WOMM House in
Istanbul (see Fig. 12). Tavsiye Evi is a unique platform where online initia-
tives meet with the offline world. All sections of the house are decorated with
different brands: furniture, mother and baby room, bathroom appliances,
lighting and kitchen appliances of all sizes. Anything needed and used in a
real house is placed by brands at our WOMM House. You can check out the
videos from our YouTube channel: Tavsiye Evi (see Fig. 12).1

How Do We Use Tavsiye Evi?

After conducting our surveys, we invite some members of our community
for focus groups. We seek for real insights and also construct our campaign
packages through co-creation.
After the kits are sent out, we again invite participants to share experi-
ences, and we shoot testimonial videos. These videos are used both in our and
the brand’s social media channels. We also live broadcast the events, so the
members who cannot attend have the option to watch them online.
Tavsiye Evi is our hub for the community. It’s a house of experience as
well as a community-enhancement place. We not only perform events for the
brands but also do more for ourselves such as book clubs, invite authors for
chats, invite doctors to enlighten us about different topics, etc. We also shoot
videos for our community members who have their own start-ups. We help
them promote themselves via videos we shoot for them.
344 RENAN TAN TAVUKÇUOĞLU

Fig. 12.  A Photograph from Tavsiye Evi.

In short, we are a real community, doing real work for real women. We
advise all brands in the market to try to do the same. WOMM was present in
the past, it is still in our lives, and will never go away.

WHAT PEOPLE TALK ABOUT AND SHARE

Word-of-mouth marketing is more about psychology than it is about marketing.
It’s not necessary that people talk about how good is a product or a service but
more about themselves. A study done by Berger and Schwartz (2011) outlined
the drivers of immediate and ongoing WOM, and here is my intake:

Social currency: We share things that make us look good and smart.
Triggers: We talk about things that are on top of our minds.
Emotions: Excitement activates people.
Remarkable: Not every product is as talkable as Apple products or new
cars, but we can also make a blender talkable.
. Storytelling: A story that everyone is willing to pass along is not enough.
You need networks to transfer. Psychological drives are important to
determine and use, as sharing isn’t luck but it’s technology.
Word-of-Mouth Marketing 345

Our tendency is to think that interesting products get more WOMM share.
Berger and Schwartz (2011) proved that this is true but only for a short term.
One sudden spark is not enough for sustainability. The more the company
cues its product, the more people talk about it. The tools company provides
also count. Our clients mostly question the extra items we suggest, includ-
ing WOMM kits. This study contains a good analysis of the promotional
giveaways that are associated with increased WOM. In summary, the more
the companies put their brands in dialogue circulation, the more they grow.
Brands who are not talked about, cannot grow.

A STEP-BY-STEP ‘HOW TO GUIDE

Below is a list of questions derived from my experience in the field. These
15 questions are aimed to help brands and practitioners to start a healthy
WOMM initiative.

1. What are your goals with implementing this WOMM campaign?

2. What messages do you aim to convey?
3. What is your breakthrough message?
4. Why should consumers buy you?
5. Who do you want to be talking about your product?
6. What is the current situation in the market?
7. What are you doing and what are your competitors doing in terms of
marketing and advertising?
8. What is your target market talking about you, about your competitors,
and about the overall segment you serve?
9. Do you have benchmark studies?
10. Which communication channels will you be using?
11. Which channels does your target audience interact with the most?
12. How are you going to measure the outcome?
13. How will you respond?
14. Is your team on board?
15. Are you ready for a change?

WOMM TOOLKIT
Below are my suggestions to follow before starting WOMM, during and after
it is completed.
346 RENAN TAN TAVUKÇUOĞLU

And never forget: The most effective WOMM is credible, respectful, social,
measurable and repeatable.

Table 1.  WOMM Toolkit.

Before: You should have these handy before you start anything
1. A product/service that performs what is promised along with an up and running
website with all features working, especially ‘contact us’ section (hotlines, call centres,
Q&A, etc.).
2. Team members who share the same values with the corporation. Each and every staff
member is the most important representative of your brand.
3. Like-minded agencies to work with (video testimonials, support content, etc.).
4. Experts with current know-how in technology as well as communication. Outsource and
get consulting.
5. KPIs and measurement tools figured out. Reports with strong action plans are your best
friend.
During: Once you open the door for conversation, you are expected to respond
1. You should have all relevant hashtags and keywords recognised by the social media
tracking tool you will be using.
2. You can conduct as many relevant surveys as possible with this crowd.
3. You interact with your audience on a real-time basis and manage some of the contents
manually. Invest, it pays off.
4. Analyse the crowd.
5. Understand what sticks, what stays and what travels.
After: Now is the time to measure your ROI.
Measure:
1. Volume
2. Reach
3. Engagement
4. Other KPIs such as coupon redemption, survey rates, etc.
5. Cost compared with other communication channels

SUMMARY AND THE FUTURE OF WOMM

Word of mouth is the oldest form of marketing; however, it is still powerful –
even more powerful than ever. People distrust the marketing messages they see
every day. We live in a crowded world where the amount of data we produce
doubles every year (Schilling, 2013). There are too many companies offering
too many similar products within the very similar price range. Meanwhile,
everything is getting ‘smart’.
Word-of-Mouth Marketing 347

In the midst of this rapid change, isn’t it amazing to see how WOMM
still counts? We’re talking about a phenomenon that goes back to the begin-
ning of humanity. That’s because technology improves but not much changes
about human nature. We still act with feelings and it is likely that in the future
we will do the same. It’s very important to keep up with the new technologies;
however, WOMM will keep its valuable part – if not gain more.
Soon it might be impossible to fool the Internet with fake IDs and fake
comments, as they will not be valued anymore. Whereas the face-to-face com-
munication would endure regardless of the speed and variety in the digital
world, it is also evident that the future of online WOMM will be increasingly
trustworthy. It is the technology that is changing. Humans and feelings are
intact since the beginning and will be until the end.
We, WOMM practitioners, had some hard times back when social media
was not around. With social media rising, our measurement techniques
also improved. Now after a campaign we can easily say how many people
were exposed to a message and how many responded. At the end of the day,
SALES and PROFIT are the things that matter. This is what we always keep
in mind, and advise our clients too.
I would strongly suggest anyone from any industry to read and understand
the essentials of this long-living strategy: WOMM.

NOTE
1. https://www.youtube.com/user/tavsiyeevi

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Summary.pdf
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 SECTION 8
DIGITAL COMMUNICATION
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CHAPTER 8.1
A SURVEY OF MARKETING
MANAGEMENT FOR THE VIDEO
GAMES INDUSTRY IN TURKEY

Sercan Şengün

ABSTRACT

This chapter analyses the marketing management practices for the video
games industry in Turkey. To identify the extended value chains and define
the critical success factors in this local environment, we invited the members
of OYUNDER – Game Developers, Designers and Publishers Association
in Turkey – to participate in an online survey. The following three main
research questions guided this survey: (1) How video game developer com-
panies resolve marketing decisions, decide on their marketing mix and create
marketing plans; (2) how they perceive the importance given to marketing
in their industry and (3) how they measure and judge the success of their
marketing activities. Results indicate that Turkish video game developers
are predominantly male and young. They organise and work in small teams.
They lack marketing planning as indicated by actualised versus expected
revenues and marketing spendings. Only 23.7% of the p­ articipants report
employing marketing-related staff and their opinions of marketing-related
business partners – such as advertising and PR  agencies  – are negative

Marketing Management in Turkey, 353–387

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181024
353
354 SERCAN ŞENGÜN

due to these institutions’ perceived lack of industry experience. The devel-

opers mainly use social media channels and digital advertising for their
marketing needs. Above-the-line advertising is the least used channel, with
content, influencer and below-the-line marketing channels ranging in the
middle. They report confidence in managing campaigns for social media,
digital marketing and content marketing. However, they believe that they
lack the skills to manage above-the-line and below-the-line marketing
activities, reporting lack of capital and human resources as the main barri-
ers. Although they believe that marketing can help them reach new custom-
ers, they are also afraid to take risks and admit to being conservative in
marketing practices.
Keywords: Video game; video game industry; marketing; marketing
management; indie

There are conflicting reports about the size of the video game market in Turkey
and even less information about the industry. Various reports put the number
of gamers in Turkey between 22 to 29 million, and yearly revenues between
USD 464 and 755 million (Gaming in Turkey, 2016). The market is expected
to have a compound annual growth rate of 16% by 2018 (Newzoo, 2015).
However, it has also been reported that in 2015 only 5% of this total revenue
was earned by the local industry – the rest was distributed among international
companies (AA Anadolu Agency, 2016). Turkish gamers are reported to pre-
fer competitive and free-to-play games that are localised into the Turkish lan-
guage (Kahraman, 2015). This language preference may initially be accepted
as an advantage for local video game developers. However, in a web article
based on content analysis of comments in Turkish videogaming websites, I
highlighted how Turkish gamers were over-critical about video games released
by local developers, especially on the issues of originality, quality, perceptions
of the local industry, lack of Turkish support (sometimes even in the naming
of the video game or the development company) and pricing (Şengün, 2014).
Research about the video game industry in Turkey is even more scarce. In
a previous study, Yilmaz and Cagiltay (2005) catalogued the video games pro-
duced in Turkey between 1980 and 2005 and report roughly 25 video games
with a total sales of less than five digits. In 2012, TUDOF – the now dispersed
federation of digital games in Turkey that was affiliated with the Ministry of
Youth and Sports – published a report claiming that there were only 20 devel-
oper companies in Turkey with the number of team members surpassing 10
Marketing Management for Video Games Industry in Turkey 355

(TUDOF, 2012). In a more recent study, Tuker, Yilmaz, and Cagiltay (2015)
separate the timeline of industry in various levels: (1) the 1980s, during which
no production within Turkey is mentioned, (2) the 1990s, during which 10
video games and five companies are mentioned and (3) the 2000s, during
which 24 new video games and 12 new companies are mentioned. The study
also summarises the 2010s till 2013, in which they mention six new video
games and five new companies. They report that as of 2013, there are around
1,000 professionals working in the industry.
All of these statistics point to a young but vibrant industry, wherein con-
sumption is high but local production is low due to the inadequacy of exper-
tise and resources. Previous research highlights the challenges of marketing in
emerging and small-sized organisations, with an emphasis on uncertainty and
turbulence (Gruber, 2004). These challenges are (1) lack of trust in company’s
own abilities, (2) lack of structure for marketing teams, (3) lack of experience
in marketing, (4) lack of finances and human resources and (5) hard-to-­satisfy
demands of high effectiveness from marketing activities. The motivation
behind this research is to determine how Turkish video game developers – as
a part of an emerging industry – experience and handle these challenges.
This chapter is organised as follows: first, I define and discuss the literature
for some main concepts that affect Turkish video game industry; second, I
summarise the methodology of this research; third, I present and analyse the
results and finally, I conclude with a discussion.

LITERATURE REVIEW
The literature review specifically begins by defining the dichotomy of indie
(short for independent developer) vs AAA (or triple A)* identities of video
game developer companies. Understanding this distinction is crucial since
it governs the many subsequent approaches, definitions and aspects of the
industry. Next, previous research about the industry itself and the marketing
practices within it are provided.

Indie vs AAA Characteristics

Indie is a hard-to-define term that has gained popularity primarily after the
mobile gaming era (yet used as early as 2003) (Michael, 2003). It is typically

*
https://en.wikipedia.org/wiki/AAA_(video_game_industry)
356 SERCAN ŞENGÜN

used to define individuals or small teams that lack access to serious funding
and are independent of big production cycles such as collaborations with
publishers and distributors (Mathews & Wearn, 2016). The term is often used
as opposed to AAA video games that are developed with crowded teams
through the funding of publishers or distributor companies. Many AAA
video games are also accepted to be the superstar titles that drive the sales
of video game consoles or related hardware (Binken & Stremersch, 2009).
Since video games are often cited as a part of creative industries (Tschang,
2007, 2009), this indie freedom from commercial structures might indicate
more risky and creative products than the AAA industry can afford (Caves,
2000). However, Zackariasson and Wilson (2012, p. 58) assert that this indie
creativity in production is not permeated to marketing efforts which ‘are still
following a traditional and rather uncreative pattern’.
One of the reasons for the emergence of indie video game production is
the shift in ‘political economies and practices of game making [since] the
cultures of game playing have aged, matured, and diversified’ (Simon, 2012,
p. 2). However, the growing ease of access to video game development tools
and communities is also identified as a democratisation of development
processes (Ruffino, 2012). The indie identity provides an easy access to the
global industry for video game developers from emerging regions, since small
development groups can gain recognition through small, creative and com-
pact productions. Judging by the statistics about the industry from previous
studies, it seems possible to hypothesise that Turkish video game develop-
ment scene still exhibits indie characteristics of small groups, low funding,
and under-emphasis on traditional marketing channels.

THE VIDEO GAMES INDUSTRY AND MARKETING

Various research document the formation, history and the current state of
the industry (Nichols, 2014; Zackariasson & Wilson, 2012). Following are
the highlights that emerge as the discussion points regarding success on the
business side of the video game industry: (1) Understanding the competi-
tions among gaming hardware producers and their effects (Williams, 2002),
(2)  ­creativity and innovation in video game production cycles (Gallagher
& Park, 2002; Tschang, 2007) and (3) interactions of player communities
and video game producers in the digital era (Arakji & Lang, 2007; Burger-
Helmchen & Cohendet, 2011; Jöckel, Will, & Schwarzer, 2008). Overall,
the proposed model for success comprises (1) choosing right platforms
Marketing Management for Video Games Industry in Turkey 357

to publish video games at the right time (2) with a product created by
a well-managed creative and innovative team while (3) constantly getting and
listening to feedback from the target player-base. It should be noted that this
formula focusses mainly on the business side and omits issues such as good
game design, engaging content, art, etc.
As Marchand and Hennig-Thurau (2013, p. 141) point out, as opposed to
‘more established entertainment industries such as movies and music, limited
scholarly research in marketing has addressed the processes that create value
for companies and consumers in the context of video games’. The American
Marketing Association defines marketing as ‘the activity, set of institu-
tions, and processes for creating, communicating, delivering, and exchang-
ing offerings that have value for customers, clients, partners, and society at
large’ (American Marketing Association (AMA), 2013). Thus, marketing is
implemented deep inside any business or industry model and is offered as a
part of the value-making process. Although big studios and AAA producers
generally employ dedicated in-house teams for marketing and PR – as well
as working with outside agencies – indie video game developers typically pri-
oritise production over communication activities. This results in unbalanced
business practices in which indie video game developers have trouble raising
the awareness of consumers about their products.
Keith (1960) identifies the following four eras of marketing in companies:
production-oriented, sales-oriented, marketing-oriented and marketing-
controlled. In this regard, the efforts of indie video game developers are man-
aged somewhere between production- and sales-oriented approaches in which
marketing and consumer communication are not the first priority. There is
little research on the effectiveness of what marketing mix works best for video
games industry. According to a previous study done by Mathews and Wearn
(2016), gamers trust the opinions of family and friends the most, followed by
the opinions of YouTubers. The same study marks TV advertisements as the
least trusted marketing message outlets for video games. Social media promo-
tions, gaming websites, gaming magazines, developers’ websites and gaming
expos, all have mixed results in-between.
Furthermore, within the last few decades, video games primarily have become
digitally distributed products. Entertainment Software Association reports that
physical distribution of video games declined from 71% to 44% between 2010
and 2015 (Entertainment Software Association (ESA), 2016). This increase in
digital distribution results in an increasingly global audience for video game
companies and consolidates marketing efforts to digital platforms (especially
social media channels) which are accessible by a wider audience, especially for
indie video game developers (Marchand & Hennig-Thurau, 2013).
358 SERCAN ŞENGÜN

METHOD
In order to understand how Turkish video game developers manage market-
ing activities, we conducted an online survey (see Appendix A) in cooperation
with OYUNDER. The online survey was announced among 161 members of
the association through e-mail lists and social media channels. The associa-
tion endorsed the privacy and anonymity of the provided data to ensure the
authenticity of sensitive information such as revenues and budgets. Over the
course of three weeks in May 2017, 97 members of the association completed
the online survey, which takes around 30 minutes to finish.
Before distributing the survey to all members, however, eight association
member companies – including the companies of the association’s board of
directors – were asked as a preliminary test group to take the survey to estab-
lish face validity. The preliminary participants as subject-matter experts were
asked to comment whether the survey can ‘represent adequately the total
universe of appropriate questions’ as face validity by definition and whether
the survey appeared ‘practical, pertinent, and related to the purpose’ as face
validity by appearance (Mosier, 1947, p. 192).
The survey was divided into six sections of roughly five minutes each (see
Appendix A). The first three sections were designed to gather information
about the company’s production and marketing teams and activities.

Section 1A: The participants were asked questions about how they defined
their own company as well as providing data about the size of their teams, the
percentage of women team members, average team age, the platforms they
work on, the revenue models for their games, the number of releases (total
and in 2016 only), total sales and download numbers (total and in 2016
only) and core target audience. Although not a direct scale adaptation,
while asking the participants to define their target audience, we used con-
cepts from Frazier and Walfried’s (1996) target market focus scale. This
scale defined target markets such as a small number of potential customers,
narrow spectrum of consumers and niche customers.

Section 1B: In this section the participants were asked questions about who
makes marketing decisions in their company, the educational background
of the decision makers, the size and positions of their marketing teams,
the amount of hours spent for marketing activities by non-marketing team
members, revenues (total and in 2016 only), marketing spendings (total and
in 2016 only), their ratios, projected numbers for 2017 and their marketing
planning periods.
Marketing Management for Video Games Industry in Turkey 359

Section 1C: In this section, the participants were asked questions about
which above-the-line, below-the-line, social media, digital, influencer, con-
tent marketing and sponsorship channels were used by them. They were
also asked to report their budget allocation for these channels. Finally, they
were asked which marketing-related institutions and agencies they worked
with (current or in the past), the marketing tools they used and the support
they received for their marketing activities from the state, private or crowd-
funding sources.

The following two sections were designed to measure the participants’ per-
ceptions of the relationship between marketing practices and the industry in
general.

Section 2A: The participants were asked to rate the effectiveness of above-
the-line, below-the-line, social media, digital, influencer, content market-
ing and sponsorship marketing channels within their industry. Ad medium
effectiveness on sales impact scale from King, Reid, and Morrison (1997)
was used to assess the perceptions of medium effectiveness for marketing
outlets within the video games industry. Originally, this scale was used to
measure the opinions of specialists on various advertising outlets. In our
adaptation of the scale, we asked the participants to rate an advertising
medium depending on its ability to (a) impact buyer behaviour, (b) increase
sales (and downloads) and (c) deliver product messages. Additionally, this
question was augmented by the ad medium effectiveness on targeting scale
from the same study, adding the ratings for the ability to (d) reach the tar-
get audience and (e) cost per target reached efficiently. The participants
were also asked to rate how industry-specific factors that were out of their
­control (user reviews, being featured in online shops, piracy and clone
games) affected their business and marketing efforts.

Section 2B: In the beginning of this section, the participants were asked to
define their target audience in more detail – specifying player profile, geo­
graphy and language. Next, the participants were asked questions about
their perceptions of the company’s marketing capabilities. They defined their
beliefs about barriers to better marketing, their expertise in above-the-line,
below-the-line, social media, digital, influencer, content and sponsorship
marketing channels, their expertise in product release time frames and their
risk-taking behaviours in marketing practices. To understand how partici-
pants rate the adequacy of their marketing skills and resources, we used
Song and Parry’s (1997a, 1997b) adaptation of Cooper’s (1979) marketing
360 SERCAN ŞENGÜN

skills and resources scale. Originally, this scale asks the participants to rate
the adequacy of the skills and resources of marketing research, sales force,
distribution and advertising/promotion teams of the company. We limited
this scale to marketing teams only. To question the perceptions of par-
ticipants about their company’s marketing management and strategies,
Andrews and Smith’s (1996) risk-taking scale was used. Instead of ask-
ing the participants to rate marketing activities of a single product, the
participants were asked to rate the play-it-safe, risk-taker and conservative
behaviour of all marketing activities of the company. Finally, to under-
stand how fast changing the video games industry was in terms of cus-
tomer composition and preference, we used the market turbulence scale by
Jaworski and Kohli (1993). At the end of this section, the participants were
also asked to arrange the importance of product features for marketing
within the ­industry.

The final section was designed to assess how the participants evaluated the
results of their marketing activities and outcomes.

Section 3: In this section the participants were asked questions about how
they assess the results of their marketing activities by rating the importance
of factors such as publicity value, conversion to sales, raising brand aware-
ness, raising traffic to all products, creating a loyal player base, providing
market insight, growing business partners, growing market share and cost
per target effectiveness. Finally, they were asked whether they ever made or
purchased marketing research, and participated in any marketing training.

The survey was conducted in Turkish. We asked respectively sales and

marketing, marketing or brand managers in the company to take the survey.
If none of these positions existed, we asked for the person in charge of
marketing decisions to participate.

RESULTS
Section 1A: Identities of Video Game Development Companies

As predicted, the Turkish video game development scene exhibits (1) an indie
identity, (2) with low revenues and marketing budgets, (3) organised in mainly
male, young and small teams (4) while developing freemium video games for
mobile platforms.
Marketing Management for Video Games Industry in Turkey 361

The participants’ self-definition of their companies and their reported

team sizes constructed the overall indie identity of the local industry
(see  Fig.  1); 40.2% of the participants defined themselves as amateur indi-
vidual developers. Merged with a ratio of 19.6% for professional individual
developers (those who don’t have other jobs but only develop games), indi-
vidual developers totaled to almost 60%. Indie groups were around 20% of
the participants (14.4% with no funding, 5.2% with funding). Only 6% of
the participants defined themselves as big studios. Among support (5.2%)
and other (9.2%) groups were publishers, freelancers and licensors. Almost
half of all participants (48.5%) defined themselves as one-person teams. The
percentage discordance with the individual developer definition may result
from one-person teams occasionally teaming up with other freelancers. In all,
38.1% of the participants had between 2 and 10 members, 7.2% had between
11 and 25 members, while the rest had more than 25 members in their teams.

Fig. 1.  The Video Game Developers’ Report of Their Team Sizes and Their
Definitions of the Company.
362 SERCAN ŞENGÜN

Analysis of other reported data complemented the indie tendencies of the

industry (see Table 1). The sample mean of the percentage of women members
in all teams was only x = 8.31, indicating very few female workforce overall.
The number of video games released in 2016 and at all times was surprisingly
high (x = 2.00 and x = 6.60). There was a discordance between reported
values of revenues, marketing budgets (both actualised and expected) and
their ratios. For example, the ratio of expected revenue versus planned mar-
keting budget in 2017 was in line with the reported ratios (16.70% vs 13.04%).
However, the reported revenues and marketing budgets in 2016 were discord-
ant. Although case by case analysis might prove otherwise, this indicated a
lack of planning for marketing budgets in video game industry in which the
actualised spendings exceed the planned ones. The teams with no market-
ing team members (n = 74) reported x = 14.30 hours per month (roughly
two working days and 9.5% of total working hours) spent on marketing. The
teams with at least one marketing team member on the other hand (n = 23)
reported employing x = 1.91 team members for marketing.
The companies were dominantly developing for three platforms;
Android (78.2%), iOS (56.4%) and PC (47.3%) – which pointed to a
mobile- and PC-oriented industry. The rest of the platform statistics were:
browser (14.6%), other mobile (5.5%), PlayStation (3.7%), XBox (3.6%),
other console (1.8%) and platforms not listed (7.3%). In terms of revenue
models, the freemium and free with ads models were dominant: free with

Table 1.  Measures of Central Tendency for Developer Teams in Turkey.

(See Appendix B for Dispersion Statistics).
(N = 97) x

Percentage of women in the team 8.31

Average age of the team 25.75
Amount of video games released so far 6.60
Amount of video games released in 2016 2.00
Total downloads/sales so far (million) 2.67
Total downloads/sales in 2016 (million) 0.18
Number of team members for marketing (n = 23) 1.91
Number of hours non-marketing team members spend for marketing activities 14.30
in a month (n = 74)
Ratio of marketing budget to revenue 16.70
Revenue in 2016 (million TL) 0.24
Marketing budget in 2016 (million TL) 0.28
Revenue expectation in 2017 (million TL) 0.46
Marketing budget expectation in 2017 (million TL) 0.06
Marketing Management for Video Games Industry in Turkey 363

ads (69.1%), freemium or free-to-play (60%), premium (40%) and games-

as-service (3.6%).

Section 1B: Statistics for Marketing Planning and Management

Second, we gather data about marketing planning and management within

Turkish video game developer companies. As predicted, the developers take
marketing decisions in-house mostly without any marketing team members
(see Fig. 2) or an outside consultancy (such as agencies) (see Fig. 3).

Fig. 2.  Results from Various Marketing Management-Related Questions Regarding

(1) the Decision Makers, (2) Their Education, (3) Budget Planning Periods and
(4) Definitions of the Main Target Audience.

Fig. 3.  Marketing Positions and Partners İnside and Outside the Company.
364 SERCAN ŞENGÜN

A total of 67.7% companies made marketing decisions either as a team

or through a senior manager without involving a marketing team. Among
the decision makers, few came from a background of marketing (15.2%) or
­business (18.2%).
The most prominent marketing positions available in development compa-
nies were product, social media and marketing managers. The least available
positions were of marketing analysts and brand-related jobs. This was in line
with the observations about the marketing activities in the industry where
brand-building practices and marketing analysis were not strong. In terms of
outside cooperations, video game development companies primarily sought
freelancers. Although some participants tried working with advertising and
PR agencies in the past, these partnerships did not last. As an open-ended
question, we queried why companies terminated their cooperations with tra-
ditional marketing agencies, and received seven replies. The themes of these
replies were: (1) lack of experience for video game industry on agency side,
especially due to the belief that they ‘focus on ineffective methods’, (2) lack
of steady income and (3) lack of need for continuous business relationships,
since developer companies sought the help of agencies only shortly before
product releases.
In defining their target audience, the developers mainly targeted regular
(77.3%) or casual (68.2%) gamers. Male gamers (59.1%) were slightly more
targeted than females (45.5%). The importance of the rest of the categories
were students (45.5%), teens (12–18) (40.9%), hardcore gamers (36.4%), par-
ents (31.8%), professional gamers (22.7%), kids (3–8) (13.6%) and a­ dolescents
(8–12) (13.6%). In terms of language and geographical targeting, Turkey
(72.7%) and English-speaking gamers (72.7%) were in the lead followed by
North America and Europe (45.5%), Turkish-speaking gamers (36.4%),
Arabic-speaking gamers (22.7%), East Asia (China, Japan, Korea, etc.)
(13.6%) and others (mainly reported to be Russian-speaking gamers) (4.6%).

Section 1C: Channel Use

In terms of channel use, the participants avoided traditional marketing chan-

nels and instead focussed on digital advertising and low-key channels such
as influencers (see Table 2). The participants scored various marketing chan-
nels on a 4-point Likert scale (Likert, 1932) as never use (scored 1), rarely
use (scored 2), frequently use (scored 3) and always use (scored 4). Ranking
these channels according to their mean scores revealed the methods that
video game developer companies mainly used for their marketing activities;
Marketing Management for Video Games Industry in Turkey 365

Table 2.  Use of Marketing Channels for Video Game

Developers in Turkey.
Channels Never Rarely Frequently Always x s
(1) (2) (3) (4)

Above-the-line channels 1.26 0.46

  TV ads 88.5% 11.5% – – 1.11 0.32
  Movie ads 96.2% 3.8% – – 1.04 0.20
  Radio ads 96.2% 3.8% – – 1.04 0.20
  Print ads in gaming press 57.7% 30.8% 11.5% – 1.54 0.69
  Print ads in other press 61.5% 26.9% 3.8% 7.8% 1.57 0.88
Below-the-line channels 1.42 0.58
 Outdoor 88.5% 11.5% – – 1.11 0.32
 Stands 84.6% 15.4% – – 1.15 0.36
  Participations in events 61.5% 23.1% 15.4% – 1.54 0.75
  Participations in industry fairs 42.3% 30.8% 23.1% 3.8% 1.89 0.90
Social media channels 2.41 1.03
 Facebook 3.9% 3.9% 30.8% 61.5% 3.48 0.77
 Twitter 15.4% 38.5% 23.1% 23.1% 2.55 1.02
 LinkedIn 53.9% 30.8% 7.7% 7.7% 1.70 0.93
 YouTube 15.4% 23.1% 38.5% 23.1% 2.70 1.01
 Google+ 65.4% 15.4% 7.7% 11.5% 1.67 1.06
 Instagram 30.8% 23.1% 26.9% 19.2% 2.35 1.12
  Product/company blog 46.2% 15.4% 23.1% 15.4% 2.07 1.15
  Product/company website 23.1% 15.4% 26.9% 34.6% 2.74 1.17
Digital channels 1.97 0.99
  Video game-related networks 34.6% 23.1% 23.1% 19.2% 2.27 1.14
  Other digital networks 38.5% 42.3% 11.5% 7.7% 1.90 0.91
  In-app cross-marketing 50.0% 34.6% 7.7% 7.7% 1.74 0.92
Influencer marketing 1.52 0.69
 Blogger 57.7% 26.9% 11.5% 3.9% 1.62 0.85
 Podcast 80.8% 11.5% 7.7% – 1.28 0.61
 YouTuber 34.6% 30.8% 23.1% 11.5% 2.10 1.02
 Cosplayer 76.9% 19.2% 3.9% – 1.26 0.51
  Other celebrities 65.4% 34.6% – – 1.35 0.48
Content marketing 1.96 1.03
  Publishing a demo 50.0% 30.8% 19.2% – 1.70 0.78
  Early access 65.4% 19.2% 7.7% 7.7% 1.59 0.94
  Releasing a free version 34.6% 34.6% 23.1% 7.7% 2.02 0.94
  Releasing developer videos 53.9% 19.2% 26.9% – 1.73 0.86
  Blogging during production 73.1% 15.4% 7.7% 3.9% 1.42 0.80
  Trailer/teaser videos 26.9% 7.7% 38.5% 26.9% 2.67 1.15
  Concept art and other visuals 53.9% 7.7% 23.1% 15.4% 2.02 1.20
  Public beta testing 53.9% 19.2% 15.4% 11.5% 1.85 1.06
 Competitions 69.2% 19.2% 3.9% 7.7% 1.49 0.88
 Crowdfunding 92.3% 3.9% – 3.9% 1.17 0.62
366 SERCAN ŞENGÜN

social media promotion and advertising (x = 2.41, s = 1.03), digital advertis-

ing (x = 1.97, s = 0.99), content marketing (x = 1.96, s = 1.03), influencer
marketing (x = 1.52, s = 0.69), below-the-line advertising (x = 1.42, s = 0.58)
and above-the-line advertising (x = 1.26, s = 0.46). Among all participants,
only one had reported using sponsorship, but did not elaborate on the details.
The participants were also asked whether they have received any outside
support for their marketing activities from three sources: the state, private
funding and crowdfunding. Only one out of 97 participants reported receiv-
ing funding from all three sources (Ministry of Economy, KOSGEB and
Kickstarter respectively). Among the others, 91.8% (n = 89) never applied
for a state funding and 7.7% (n = 7) applied but was rejected; 83.5% (n = 81)
never applied for a private funding and 15.4% (n = 15) applied but was
rejected. No participant except one made any crowdfunding campaigns.
Finally, the participants were asked to rank the seven main marketing
channels in terms of how they allocate their marketing budgets. Weighted
arithmetic mean values for each channel were then calculated and a joint
ranking emerged as social media marketing (X w = 1.64), digital adver-
tising (X w = 2.50), influencer marketing (X w = 2.96), content marketing
(X w = 3.32), below-the-line (X w = 4.82), above-the-line (X w = 5.14) and
sponsorships (X w = 5.61).

Sections 2A and 2B: Analysis on Beliefs About Marketing and Industry

We queried about the beliefs of Turkish video game developers towards cer-
tain marketing channels and their own marketing capabilities in general. As
predicted, the developers were (1) cautious towards traditional marketing
channels, and (2) insecure about their own skills and creativity in marketing.
The participants were asked to score the six abilities of seven main market-
ing channels on a 5-point Likert scale as no effectiveness (scored 1), slightly
effective (scored 2), moderately effective (scored 3), effective (scored 4) and
very effective (scored 5). The abilities to rank were: ability to impact buyer
behaviour, ability to increase sales and downloads, ability to deliver product
messages, ability to increase market share, ability to reach the target audi-
ence and cost per target reached efficiently. The resulting alpha (α) values
(Cronbach, 1951; Peterson, 1994) were all within the range of ‘almost perfect
agreement’ benchmark (Landis & Koch, 1997); above-the-line (α  =  0.92),
below-the-line (α = 0.96), digital marketing (α = 0.93), social media market-
ing (α = 0.94), influencer marketing (α = 0.93), content marketing (α = 0.93)
and sponsorships (α = 0.95).
Marketing Management for Video Games Industry in Turkey 367

Consequently, mean values for each channel and ability combinations were
calculated (see Table 3) to reveal interesting results. First, although influencer
marketing is deemed very important for the video game industry, the develop-
ers rather direct their budgets to digital marketing. Second, although spon-
sorships are deemed as more effective than above-the-line and below-the-line
marketing in many abilities, video game developers were again dubious about
this practice in budget allocation. Developers assumed above-the-line adver-
tising to be the least effective one in both reaching target audience and cost
per target efficiency. Social media marketing performed high scores in almost
all categories, while influencer marketing is rated to be the most effective one
in impacting behaviour.
To understand the self-confidence of each company in their marketing
skills and abilities, we asked the participants to answer various questions on
a 5-point Likert scale as strongly disagree (scored 1), disagree (scored 2), neu-
tral (scored 3), agree (scored 4) and strongly agree (scored 5). Additionally,
we used Pearson’s Chi-square test (Pearson, 1900) to determine whether the
answers to the questions had correlation with various other variables, such as
(a) team size, (b) median age of the team, (c) number of video games released
so far, (d) number of downloads or sales achieved, (e) the size of marketing
team and (f) ratio of marketing budget to revenue. The measures of central
tendency and the significant results for Chi-square tests for each question are
provided in Table 4.
According to the results, video game developers perceive the biggest barri-
ers for better marketing as lack of capital (x = 3.68), lack of human resources
(x = 3.64), lack of knowledge and expertise (x = 3.18), lack of state support

Table 3.  Mean Values for the Beliefs of Video Game Developers About
Each Channel and Ability Combinations Out Of 5-Point Scale.
x Impact Increase Deliver Increase Reach Cost per Overall
Buyer Sales Product Market Target Target Average
Behaviour Messages Share Audience Efficiency

Above-the-line 2.77 3.05 2.73 2.82 2.36 2.27 2.67

Below-the-line 2.63 2.59 2.64 2.55 2.81 2.55 2.63
Digital marketing 3.73 4.09 3.73 4.00 4.14 3.77 3.91
Social media 3.95 4.14 3.86 4.14 4.41 4.14 4.11
marketing
Influencer marketing 4.27 4.09 3.86 3.95 4.05 3.77 4.00
Content marketing 3.36 3.05 3.86 2.82 3.41 3.41 3.32
Sponsorships 2.95 2.59 2.55 2.77 2.86 2.55 2.71
368 SERCAN ŞENGÜN

Table 4.  The Measures of Central Tendency and the Significant

Results for Chi-Square Tests for Questions About Self-Confidence
in Company’s Marketing Skills and Abilities.
Question x s χ2 p

The barrier for us to make better marketing is 3.68 1.46

the lack of capital
   Marketing team size 23.64 <0.05 (0.023)
The barrier for us to make better marketing is 3.18 1.44
the lack knowledge & expertise
  Team size 16.17 <0.05 (0.039)
The barrier for us to make better marketing is 3.05 0.99
the lack of state support
The barrier for us to make better marketing is 3.64 1.26
the lack of human resources
   Marketing team size 32.12 <0.01 (0.009)
The barrier for us to make better marketing is 2.41 1.29
the lack of channels
The barrier for us to make better marketing is 2.86 1.39
the lack of trust and interest in marketing
Our company has enough expertise in above- 2.14 1.39
the-line marketing
Our company has enough expertise in below- 2.36 1.47
the-line marketing
Our company has enough expertise in digital 3.36 1.33
marketing
Our company has enough expertise in social 3.86 1.04
media marketing
  Team size 16.30 <0.05 (0.038)
   Number of video games released so far 51.99 <0.05 (0.041)
   Total number of downloads or sales so far 75.79 <0.05 (0.040)
Our company has enough expertise in influencer 3.14 1.21
marketing
Our company has enough expertise in content 3.50 1.44
marketing
   Ratio of marketing budget to revenue 55.54 <0.05 (0.049)
Our company has enough expertise in 2.32 1.17
sponsorships
Our company has enough expertise in marketing 2.59 1.33
during the pre-release time frame
   Marketing team size 30.61 <0.05 (0.015)
Our company has enough expertise in marketing 3.73 1.28
during the release time frame
   Number of video games released so far 40.65 <0.05 (0.044)
Marketing Management for Video Games Industry in Turkey 369

Table 4.  (Continued)

Question x s χ2 p

Our company has enough expertise in marketing 3.91 1.02

during the post-release time frame
We take risks in marketing decisions 3.18 1.50
We take risks in marketing ideas 2.86 1.39
We think conservatively in marketing planning 3.77 1.07
   Number of video games released so far 53.78 <0.05 (0.029)
In our industry, the channels to reach our 3.27 1.24
audience keep changing
Our customers constantly expect new marketing 3.36 1.18
activities
We keep reaching out to the same audience with 2.77 0.75
our marketing activities
We can reach to customers who have never played 4.05 0.95
our video games with our marketing activities
Our audience is distributed across many channels 3.77 1.15
Our company keeps developing itself in marketing 3.55 1.22
Our company has the resources to develop itself 3.27 1.28
in marketing

(x = 3.05), lack of trust and interest in marketing (x = 2.86) and lack of

channels (x = 2.41). There were significant correlations between some per-
ceptions and other variables. The companies with bigger marketing teams
perceived the lack of human resources (p = 0.009) and the lack of capital
(p = 0.023) as less important barriers. Similarly, the companies with bigger
team size perceived the lack of knowledge and expertise (p = 0.039) as less
important barriers. Both of these correlations were unsurprising, as with bet-
ter funding came bigger teams and more expertise. The participants perceived
their marketing skills higher in social media marketing (x = 3.86), content
marketing (x = 3.50), digital marketing (x = 3.36), influencer marketing
(x  =  3.14), below-the-line (x = 2.36), sponsorships (x = 2.32) and above-
the-line (x = 2.14). The teams with higher team sizes (p = 0.038), releases
(p =  0.041) and downloads (p = 0.040) perceived themselves more skillful
in social media marketing. Teams with higher marketing budget to revenue
ratios (p = 0.049) perceived themselves more skillful in content marketing.
Companies with more releases and downloads mean wider player base who
would be more active in social media channels, providing the team with nec-
essary experience in social media marketing.
370 SERCAN ŞENGÜN

The developers reported more marketing expertise in post-release

(x = 3.91), release (x = 3.73) and pre-release (x = 2.59) periods. This indi-
cates that the teams started considering marketing close to release dates and
did not allocate enough resources to marketing during development phases.
Companies with bigger marketing teams perceived significantly higher skills
during pre-release (p = 0.015), which indicated that human resources might
be the deciding factor in pre-release marketing. Companies with higher video
game releases perceived significantly higher skills during release (p = 0.044),
which indicated that marketing during the release of a video game became
more effective with growing experience.
Participants perceived marketing mainly as a way to reach customers who
have never played their video games before (x = 4.05). They also believed
these customers to be distributed over many marketing channels (x = 3.77).
The developers admitted thinking conservatively while making marketing
plans (x = 3.77). Those who have released more games perceived themselves
to be significantly more conservative (p = 0.029). This may be due to pursuing
ineffective methods or insufficient results of marketing activities in previous
releases. Participants reported taking risks in marketing decisions (x = 3.18);
however, this might be a misunderstanding on question wording to indicate
marketing itself as a risk, since the same audience reported taking less risks
in marketing ideas (x = 2.86). The developers were under the impression that
their customers constantly required new marketing activities (x = 3.36) and
that they had to switch between channels to reach them (x = 3.27). In spite of
all the disadvantages and negativity, participants rated their development in
marketing skills (x = 3.55) and resources (x = 3.27) significantly high.
Additionally, we asked the participants to rank the importance of video
game features regarding marketing messages. The developers ranked the fea-
tures from the most important to the least as follows: scores and comments
(x = 3.13) (most ranked 1st and 3rd), visuals (x = 3.23) (most ranked 2nd
and 4th), technology (x = 3.86) (most ranked 1st, 4th and 7th), platforms
(x = 4.09) (most ranked 2nd), genre (x = 4.18) (most ranked 1st and 7th),
multiplayer capabilities (x = 4.86) (most ranked 7th), online capabilities
(x = 5.09) (most ranked 6th) and made in Turkey message (x = 7.55) (most
ranked 8th). This ranking indicates the developers’ belief that video game
marketing is mostly word-of-mouth- and visual-based.

Section 3: Analysis of the Criteria of Success for Marketing Activities

Finally, we asked the participants questions about how they measure the suc-
cess of their marketing activities. First, we asked them to rank the importance
Marketing Management for Video Games Industry in Turkey 371

of some outcome criteria in determining the success of a marketing campaign

(see Table 5). Then we asked the participants whether they have conducted
any marketing research, purchased any marketing reports or research or
­participated in a marketing training.
The participants rated ‘creating a loyal player base’ as the most important
criteria in determining the success of marketing campaigns (x = 4.43). This
was in line with the previous finding about the revenue models, wherein the
video game developers primarily used free with ads, free-to-play and free-
mium models. Since there isn’t an initial purchase in accessing these games,
their financial success mostly depended on players sticking to playing with
them for long periods of time. The rest of the factors were ranked as: conver-
sion to sales and download (x = 4.24), raising brand awareness (x = 4.23),
cost per target effectiveness (x = 4.04), grow market share (x = 3.99), provide
market insight (x = 3.82), publicity value (x = 3.76), raising traffic to all prod-
ucts (x = 3.76) and grow business partners (x = 3.28). In the rest of the rank-
ing, the high valuation of brand awareness was interesting, since previously
video game developer companies were found not to employ brand-related

Table 5.  Ranking the İmportance of Outcome Criteria in Determining

the Success of Marketing Campaigns.
Criteria Very Unimportant Neutral Important Very x s
Umimportant (2) (3) (4) Important
(1) (5)

Publicity value – 4.8% 19.1% 71.4% 4.8% 3.76 0.63

Conversion – – 4.8% 47.6% 47.6% 4.24 0.59
to sales and
downloads
Raising brand – 4.8% – 61.9% 33.3% 4.23 0.69
awareness
Raising traffic to – 14.3% 23.8% 33.3% 28.6% 3.76 1.03
all products
Creating a loyal – – – 57.1% 42.9% 4.43 0.49
player base
Provide market – 9.5% 19.1% 52.4% 19.1% 3.82 0.85
insight
Grow business 4.8% 23.8% 23.8% 33.3% 14.3% 3.28 1.13
partners
Grow market – 4.8% 14.3% 57.1% 23.8% 3.99 0.77
share
Cost per target – 4.8% 23.8% 33.3% 38.1% 4.04 0.91
effectiveness
372 SERCAN ŞENGÜN

personnel. However, this selection might be perceived to be analogous to

‘­creating a loyal player base’.
Among the participants, 89.7% (n = 87) reported having never conducted
any marketing research. The companies who conducted marketing research
produced brand awareness reports (n = 1), industry reports (n = 2), mar-
ket share research (n = 4) and product- focus groups (n = 3). Only 9.3%
(n  =  9) of the participants reported buying an outside marketing research
or report; 46.4% (n = 45) of the participants have reported never attending
a free or paid marketing training; 34% (n = 33) reported participating in free
marketing training, and only 19.6% (n = 19) reported participating in a paid
marketing training.

CONCLUSION
The aim of this research was to understand how Turkish video game devel-
opers managed marketing. Towards this end, we invited the members of
OYUNDER to participate in an online survey, which was guided to explore
this processes in three main themes: (1) resolving marketing decisions and
plans, (2) perceptions of the importance of marketing and channels for the
industry and (3) measuring the success of marketing activities.
In parallel with previous research that defines Turkey as a high-­
consumption, low-production market for video games, Turkish development
teams displayed small and indie characteristics as part of an emergent indus-
try. High-budgeted productions with large teams, funded by publishers or
other sources were painfully few. Although indie production methods allow
more creativity, they also encapsulate less marketing-oriented approaches.
This resulted in cases where many marketing management decisions were
taken i­n-house by non-marketing management staff. Frequently, the utilised
business models omitted traditional marketing supply chains, creating an
industry that is not penetrated by traditional marketing and PR actors.
First (in Section 1A), we analysed the self-reported characteristics of
Turkish development teams. Turkish video game developers mainly com-
prised males (only 8% of the workforce was reported to be females), young
(average age roughly 26 years), small (86.6% had fewer than 10 ­members) and
productive (on average released two games in 2016, and six in all time) teams.
Second (in Sections 1B and 1C), we analysed their marketing practices. The
video game developers displayed a lack of marketing planning as indicated
by actualised and expected revenues, marketing spendings and their ratios.
Marketing Management for Video Games Industry in Turkey 373

Only 23.7% of the participants reported employing marketing-related staff

(around two people on average per company). Overall, their opinions of mar-
keting-related business partners, such as advertising agencies, were negative
due to the lack of industry experience in these institutions. The developers
mainly used social media channels and digital advertising for their market-
ing needs. Above-the-line advertising was the least used channel, with con-
tent, influencer and below-the-line advertising in the middle. This was in line
with developers’ beliefs about marketing channels with small disparities. For
example, although influencer marketing was believed to be highly effective, in
reality it was not used frequently by participants.
In terms of marketing self-confidence (in Sections 2A and 2B), video game
developers reported a lack of capital and human resources as the main barriers.
They were confident in social media, digital and content marketing; however,
they believed that they lack the skills to manage above-the-line and below-
the-line activities. Overall, they believed that marketing can help them reach
new customers, but they were also afraid to take risks and admitted to being
conservative.
Finally, when analysing the success of their marketing activities
(in Section 3), video game developers rated ‘creating a loyal player base’ as
the most important factor. This was in line with the dominant revenue models
used by these companies. Among the participants, almost 90% reported never
conducting any marketing research and almost half of the participants never
participated in a marketing training.
These results present an interesting case of an emerging industry and its
relationship with marketing practices. Since video games are inherently digital
products, their marketing activities in parallel frequently avoided traditional
marketing channels. Instead, a prominent amount of their marketing budgets
were targeted toward digital advertising, social media activities and commu-
nity building in digital distribution channels. These activities occasionally rely
on less known but perceived to be the most effective channels such as YouTube
influencers, cosplayers, bloggers, fan sites and other types of content marketing.
Although each industry is unique in its own dynamics, the analysis reaf-
firms the journey of an emerging industry from a production- and sales-­
oriented one to a marketing-oriented one. From these results, it is possible to
come up with recommendations for developer companies, state bodies and
nongovermental organizations (NGOs) to facilitate this journey.

(a) Promoting diversity in production teams, especially increasing female

workforce who could supply various perspectives in business and market-
ing decisions.
374 SERCAN ŞENGÜN

(b) Matchmaking among individual developers to create more strong teams

in terms of human resources, resulting in more time and effort in market-
ing practices.
(c) Industry professionals and video game-related NGOs collaborating with
educational instutitions in training more marketing staff with industry
knowledge.
(d)  NGOs and educational instutitions creating short-term educational
­programmes for local development teams about marketing practices.
(e) Finally, the state bodies supporting not only the production cycles but
also the marketing efforts of local developers.

However, these recommendations are not meant to suggest that an

aspired-to version of a local indie industry should have AAA characteris-
tics. Instead, I seek to demonstrate that even smaller emerging business struc-
tures need to find ways to implement marketing in their everyday businesses
to achieve success. The study showed that the video game developers had
­little doubt that certain marketing methods could improve their businesses;
however, they mainly lacked funding, expertise and human resources to uti-
lise them efficiently. The efforts of various state bodies and social initiatives
such as associations could direct these companies from more production- and
sales-oriented approaches towards more marketing-oriented and marketing-­
controlled ones.

ACKNOWLEDGMENTS
I am grateful for the gracious support of OYUNDER – Game Designers,
Developers, Producers & Publishers Association – in the distribution and
the facilitation of the survey among their members and social media chan-
nels. This work reflects only the author’s views and OYUNDER is not
responsible for any use that may be made of the information contained
herein.

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Marketing Management for Video Games Industry in Turkey 377

APPENDIX A:
SURVEY ABOUT MARKETING ACTIVITIES
AND MANAGEMENT
The survey was conducted in Turkish. The below English translation is sup-
plied by the author.

Section 1A

Q.1.  How do you define your company?

a.  Student individual developer (e.g. I develop video games individu-
ally during my education.)
b.  Amateur individual developer (e.g. I develop video games individu-
ally while working for another job.)
c.  Professional individual developer (e.g. I develop video games indi-
vidually as a full-time profession.)
d.  Indie group (e.g. We develop video games as a small group with our
own funding.)
e.  Indie group with investment (e.g. We develop video games as a small
group with an outside investment.)
f.  Big studio (e.g. We are a local big studio or a local office of an inter-
national studio.)
g.  Support (e.g. We provide support services to the industry other than
development.)
h.  Other, please specify: ___________
Q.2.  What is the size of your team?
a.  1
b.  2–10
c.  11–25
d.  26–99
e.  100+
Q.3.  What is the approximate percentage of women in your team?
Q.4.  What is the approximate average age of your team?
378 SERCAN ŞENGÜN

  Q.5. Please select the platforms that you mainly develop video games for?
(You can make multiple selections.)
a.  PC
b.  Mobile iOS
c.  Mobile Android
d.  Mobile other
e.  Console playstation
f.  Console XBOX
g.  Console other
h.  VR/AR
i.  Browser (e.g. Facebook, etc.)
j.  Other, please specify: ___________
 Q.6. Please select the revenue models that you mainly use in your video
games? (You can make multiple selections.)
a.  Game as service (GaaS) (e.g. memberships)
b.  Premium (e.g. pay once)
c.  Freemium or free-to-play (e.g. in-app purchases)
d.  Free with ads
  Q.7.  How many video games have you released so far?
  Q.8.  How many video games have you released in 2016?
 Q.9. What is the total units of downloads/sales your video games have
achieved so far?
Q.10. What is the total units of downloads/sales your video games have
achieved in 2016?
Q.11. While developing video games, which target audience are you aiming at?
a.  All kinds of players
b.  Our pre-existing audience
c.  Niche (specific) audience
d.  Casual (non-hardcore gamer) audience

Section 1B

Q.12.  Who makes the marketing decisions in your company?

a.  Marketing team
b.  A senior manager, since there is no marketing team
Marketing Management for Video Games Industry in Turkey 379

c.  All together as a team

d.  We don’t do marketing
e.  Other, please specify: ___________
Q.13. What is the educational background of the person in your company
who takes marketing decisions?
a.  Sales & marketing
b.  Business & management
c.  Software development & IT
d.  None of the above
Q.14.  How many people are in your marketing team?
Q.15.  Which of the below positions exist in your company?
a.  Marketing manager/director
b.  Sales and marketing manager/director
c.  SEO manager/director
d.  Brand manager/director
e.  Social media manager/director
f.  Brand/marketing strategist
g.  PR/media relations manager/director/editor
h.  Content marketing manager/director/editor
i.  Marketing researcher/analyst
j.  Product manager
k.  None of the above
Q.16. If there is no marketing team in your company, what is the total
amount of hours spent by other teams members for marketing activi-
ties during a month?
Q.17. What is the approximate ratio of your marketing budget to your
­revenue?
Q.18.  How much was your approximate revenue in 2016 in Turkish Liras?
Q.19. How much was your approximate marketing spendings in 2016 in
Turkish Liras?
Q.20. How much do you expect your approximate revenue to be in 2017 in
Turkish Liras?
Q.21. How much do you expect your approximate marketing spendings to be
in 2017 in Turkish Liras?
380 SERCAN ŞENGÜN

Q.22.  During which periods do you plan your marketing budget?

a.  We don’t do marketing
b.  We don’t do planning for marketing
c.  We plan our marketing budget per product
d.  We plan our marketing budget in quarters (3 months)
e.  We plan our marketing budget yearly

Section 1C

Q.23. 
Which of the below above-the-line channels do you use? (Never/
Rarely/Frequently/Always)
a.  TV ads
b.  Movie ads
c.  Radio ads
d.  Print ads in gaming and industry channels
e.  Print ads in other channels
Q.24. 
Which of the below below-the-line channels do you use? (Never/
Rarely/Frequently/Always)
a.  Outdoor (billboard, etc.)
b.  Stands (@shopping malls, etc.)
c.  Participation in events (festivals, concerts, etc.)
d.  Participation in industry fairs
Q.25. Which of the below social media channels do you use? (Never/Rarely/
Frequently/Always)
a.  Facebook
b.  Twitter
c.  LinkedIn
d.  YouTube
e.  Google+
f.  Instagram
g.  Product/company blog
h.  Product/company website
Q.26. 
Which of the below digital channels do you use? (Never/Rarely/
Frequently/Always)
a.  Video game related networks (video game websites, etc.)
b.  Other digital networks (news websites, etc.)
c.  Cross-marketing (inside other video games, etc.)
Marketing Management for Video Games Industry in Turkey 381

Q.27. Which of the below influencer channels do you use? (Never/Rarely/

Frequently/Always)
a.  Blogger
b.  Podcast
c.  YouTuber
d.  Cosplayer
e.  Other celebrities
Q.28. Which of the below content marketing channels do you use? (Never/
Rarely/Frequently/Always)
a.  Publishing a demo
b.  Early access
c.  Releasing a free version
d.  Releasing ‘developer videos’ during production
e.  Blogging during production
f.  Publishing trailer/teaser videos
g.  Publishing concept art and other visual products
h.  Public beta testing
i.  Competitions in the digital channels
j.  Crowdfunding
Q.29.  Have you ever made a sponsorship agreement? If so, please specify.
Q.30. Please arrange the below channels in the order of the budget you allo-
cate for them. (If you don’t do marketing or don’t have a marketing
budget, you can do the arrangement depending on your foresight.)
a.  Above-the-line (TV, radio, etc.)
b.  Below-the-line (Outdoor activities, etc.)
c.  Digital marketing (Digital ad networks, etc.)
d.  Social media marketing (Facebook, etc.)
e.  Influencer marketing (Blogger, YouTuber, Cosplayer, etc.)
f.  Content marketing (Demo, video, etc.)
g.  Sponsorship
Answer selections for Qs. 31 and 32.
a.  Advertising agency
b.  Media buying agency
c.  PR/media relations agency
d.  Video game specialised communication/advertising agency
e.  Design agency
f.  Freelancer consultants
g.  None of the above
382 SERCAN ŞENGÜN

Q.31. Please choose the institutions that you currently work with. (You can
make multiple selections.)
Q.32. Please choose the institutions that you previously worked with but are
not working currently. (You can make multiple selections.)
Q.33. If you made a selection in the previous question, please specify your
reasons for not working with these institutions anymore.
Q.34. Are there any tools you use for your marketing activities (e.g. social
media management tools, media monitoring, etc.)
Answer selections for Qs. 35–37.
a.  No, we never applied for.
b.  No, we applied for but didn’t get it.
c.  Yes, please specify the programme and the amount: ___________.
Q. 35.  Have you ever received state support for your marketing activities?
Q. 36.  Have you ever received private support for your marketing activities?
Q. 37. Have you ever received crowdfunding support (e.g. Kickstarter) for
your marketing activities?

Section 2A

Answer selections for Qs. 38–44. (No Effectiveness/Slightly Effective/

Moderately Effective/Effective/Very Effective)
a.  Ability to impact buyer behaviour
b.  Ability to increase sales/downloads
c.  Ability to deliver product messages
d.  Ability to increase market share
e.  Ability to reach the target audience
f.  Cost per target efficiently reached
Q.38. Considering the video games industry, what do you think about the
effectiveness of above-the-line marketing?
Q.39. Considering the video games industry, what do you think about the
effectiveness of below-the-line marketing?
Q.40. Considering the video games industry, what do you think about the
effectiveness of digital marketing?
Q.41. Considering the video games industry, what do you think about the
effectiveness of social media marketing?
Marketing Management for Video Games Industry in Turkey 383

Q.42. Considering the video games industry, what do you think about the
effectiveness of influencer marketing?
Q.43. Considering the video games industry, what do you think about the
effectiveness of content marketing?
Q.44. Considering the video games industry, what do you think about the
effectiveness of sponsorship marketing?
Q.45. 
Considering the video games industry, what do you think about
the effectiveness of the below content marketing activities? (No
Effectiveness/Slightly Effective/Moderately Effective//Effective/Very
Effective)
a.  Publishing a demo
b.  Early access
c.  Releasing a free version
d.  Releasing ‘developer videos’ during production
e.  Blogging during production
f.  Publishing trailer/teaser videos
g.  Publishing concept art and other visual products
h.  Public beta testing
i.  Competitions in the digital channels
j.  Crowdfunding
Q.46. Below are some factors which are out of control of developers. What do
you think about the effectiveness of these factors? (No Effectiveness/
Slightly Effective/Moderately Effective/Effective/Very Effective)
a.  User scores in online shops (e.g. Steam, AppStore, etc.)
b.  User reviews in online shops (e.g. Steam, AppStore, etc.)
c.  Being featured in online shops
d.  Piracy
e.  Clone video games

Section 2B

Q.49. Which target audiences are you aiming at? (You can make multiple
selections.)
a.  Professional gamers
b.  Hardcore gamers
c.  Regular gamers
d.  Casual gamers
384 SERCAN ŞENGÜN

e.  Female gamers
f.  Male gamers
g.  Students
h.  Kids (3–8 years)
i.  Adolescents (8–12 years)
j.  Teens (12–18 years)
k.  Parents
l.  Others, please specify: ___________

Q.50. Which target audiences are you aiming at? (You can make multiple
selections.)
a.  Turkey
b.  Turkish-speaking audiences
c.  English-speaking audiences
d.  Arabic-speaking audiences
e.  North America and Europe
f.  East Asia (China, Japan, Korea, etc.)
g.  Other, please specify: ___________

Q.51. Please indicate how much you agree with the below statements: ‘The
barrier for us to make better marketing is …’ (Strongly Disagree/
Disagree/Neutral/Agree/Strongly Agree)
a.  Lack of capital
b.  Lack of knowledge & expertise
c.  Lack of state support
d.  Lack of human resources
e.  Lack of channels
f.  Lack of trust and interest in marketing

Q.52. Please indicate how much you agree with the below statements: ‘Our
company has enough expertise in the below marketing channels …’
(Strongly Disagree/Disagree/Neutral/Agree/Strongly Agree)
a.  Above-the-line
b.  Below-the-line
c.  Digital marketing
d.  Social media marketing
e.  Influencer marketing
f.  Content marketing
g.  Sponsorship
Marketing Management for Video Games Industry in Turkey 385

Q.53. Please indicate how much you agree with the below statements: ‘Our
company has enough expertise in the below marketing time frames …’
(Strongly Disagree/Disagree/Neutral/Agree/Strongly Agree)
a.  Pre-release
b.  Release
c.  Post-release
Q.54. 
Please indicate how much you agree with the below statements:
(Strongly Disagree/Disagree/Neutral/Agree/Strongly Agree)
a.  We take risks in marketing decisions.
b.  We take risks in marketing ideas.
c.  We think conservatively in marketing planning.
d.  In our industry, the channels to reach our audience keep changing.
e.  Our customers constantly expect new marketing activities.
f.  We keep reaching out to the same audience with our marketing
activities.
g.  We can reach to customers who have never played our video games
with our marketing activities.
h.  Our audience is distributed across many channels.
i.  Our company keeps developing itself in marketing.
j.  Our company has the resources to develop itself in ­marketing.
Q.55. Please arrange the below properties of video games according to their
usability in marketing messages.
a.  Technology
b.  Visuals
c.  Scores and comments
d.  Genre
e.  Online capabilities
f.  Platforms
g.  Multiplayer capabilities
h.  The fact that it is made in Turkey

Section 3

Q.56. Please rate the importance of below factors in deciding the success of

your marketing activities. (Very Unimportant/Unimportant/Neutral/
Important/Very Important)
386 SERCAN ŞENGÜN

a.  Publicity value
b.  Conversion to sales/downloads
c.  Raising brand awareness
d.  Raising traffic to all of our products
e.  Creating a loyal player base
f.  Provide market insight
g.  Grow business partners
h.  Grow market share
i.  Cost per target effectiveness
Q.56. Which of the below marketing research have you done so far? (You can
make multiple selections.)
a.  We have done none
b.  Brand awareness
c.  Industry/market report
d.  Market share
e.  Product-focus group
f.  Other, please specify: ___________
Q.57.  Have you ever purchased a marketing research?
a.  No
b.  Yes, please specify: ___________
Q.58.  Have you ever participated in a marketing training?
a.  No, never.
b.  Yes, to free training
c.  Yes, both to free and paid training
Marketing Management for Video Games Industry in Turkey 387

APPENDIX B:
DISPERSION STATISTICS FOR TABLE 1

(N = 97) Range (x) x s s2

Percentage of women in the team 60 8.31 15.49 240.00

Average age of the team (years) 25 25.75 6.79 46.12
Amount of video games released so far 100 6.60 15.03 225.80
Amount of video games released in 2016 20 2.00 3.33 11.09
Total downloads/sales so far (milllion) 65 2.67 9.75 –
Total downloads/sales in 2016 (million) 8.5 0.18 1.13 –
Number of team members for marketing (n = 23) 39 1.91 6.94 48.14
Number of hours non-marketing team members 240 14.30 41.45 1718.51
spend for marketing activities in a month (n = 74)
Ratio of marketing budget to revenue 50 16.70 21.11 445.42
Revenue in 2016 (million TL) 4.5 0.24 0.84 –
Marketing budget in 2016 (million TL) 4.5 0.28 0.09 –
Revenue expectation in 2017 (million TL) 6.0 0.46 1.15 –
Marketing budget expectation in 2017 (million TL) 6.0 0.06 0.14 –
This page intentionally left blank
CHAPTER 8.2
MARKETING IN COOPERATION
WITH TECHNOLOGY TO FORM
NEW DIRECTIVES IN CONSUMER
LIFE

Mustafa Özgür Güngör

ABSTRACT

For the last several decades, technology has been playing an important role
in changing the lives of consumers with an unexpected speed of innovative
developments. Most of them were disruptive and had shaped not only the
behaviour of consumers, but also empowered them to search for better prod-
ucts and services. These changes took place in media, communication, and
information management of socialisation and collaboration. The digitisa-
tion revolution is a continuum until people and machines embrace a com-
mon ground for improving the lives of consumers. There were three stages
of this movement. In the first stage, Turkish perspective was in alignment
with the world where new channels of communication were established with
support of Internet and information management. Marketing technology
tools such as customer relationship management and call centre systems
were discovered. In the second stage, continuous learning from the best uses

Marketing Management in Turkey, 389–407

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181025
389
390 MUSTAFA ÖZGÜR GÜNGÖR

and implementations has started. The ultimate goal became total customer
satisfaction. Many improvements and innovative services, such as omni-
channel marketing, took place for achieving this goal. Today, in the third
stage, new marketing tools are being developed on the basis of integrated
machine learning, such as analysis of customer conciseness, prediction of
behaviour and perceptive marketing, which will be used extensively through
digital platforms, new media, social web and in everyday devices for tar-
geted marketing. In this chapter, a broader look is taken and an explana-
tion is made for what has happened through these periods of intersection of
marketing science and information technology. Moreover, ongoing changes
which have given a new impetus to consumer life are addressed with respect
to marketing management literature.
Keywords: Marketing; technology; consumer behaviour; innovation;
machine learning

INTRODUCTION
Discussions about how marketing is affected by technology began a while ago.
In the pre-Internet era, consumers were already in communication with brands
but had fewer interactions with brand communities just because of inadequacies
in mediums. They were mostly dependent on more conventional ways to recall
the value offered by the firm (Zaltman, 2003) such as broadcasted advertise-
ments, personal meetings with marketers, contribution to interest groups, cold
calls with their service providers and paper-based give and take of messages.
In fact, the approach has long been discussed, starting from the 1960s
(Howard & Sheth, 1969), based on the ground of perceptual constructs and
learning subsystems of the buyer, up to the 1990s with conversion to cus-
tomer value management that includes many complicated evaluations of
these messages and their feedback (Gale, 1994). Howard and Sheth (1969,
pp. 96–97) underlined this issue as follows:

Brand comprehension is a cognitive state of the buyer that reflects the extent to which he
has sufficient knowledge to establish well-defined criteria for identifying the brands he
encounters and to have available the words for discussing a particular brand, but not for
evaluating it. Information affects attitude through brand comprehension.

On the other hand, these have been the commonly used ways where
communication frequency and direction was mostly limited by the amount
of time and consumer interest in the brand. As discussed by Gale (1994),
Marketing and Technology Directives in Consumer Life 391

two of the seven tools listed to understand customer value were directly
influential in the equation: perceived quality of the profile and the value
map of the customer. As will be explained in the first part of this chapter,
the pre-Internet era was more defined by socioeconomical analysis and fal-
lacies of marketing strategies such as belief in rational and linear thinking
process of consumers, their capability to explain decision-making for a
brand, effective measurement of the memory and the experience correla-
tion about a product or service. Internet introduced additional tools to
make these approachable.
Total progress about the enablement of the Internet has taken years. From
the late 1990s to 2005, it was growing from the technical side, providing
businesses more options to reach their customers, and extending marketing
capabilities and sales functions through web presence. In this chapter, this is
explained in the stage one of this movement where technology and consumer
behaviour have acted closely in the change.
From 2005 onwards, the infrastructure of the Internet for both wired and
wireless channels has grown with exponential momentum. Each innovation
item in this perspective speeded up the interactivity between businesses and
their customers. The discussion about this second stage is presented in depth
in the following pages, but some prominent examples are briefly listed below:

• Scaling up the bandwidth of communication

• More user-friendly interfaces
• Users actively adapted to using new tools made available to them with a
higher adaptation rate than previous decades
• Raising importance of customer relationship management (CRM)
• Omni-channel marketing principles
• Better after-sales services for long-term customer value
Therefore, with the classification of convergence cycles between technol-
ogy and marketing phenomena, the following different stages of this evolu-
tion are identified so far. The first one is the transition from conventional to
digital that had covered many initial improvements. The second contained the
ways of increasing channels of communication with the digestion of these
into marketing strategies. Finally, the third stage is the use of more advanced
technologies such as machine learning, which is on the verge of delivering
more integrated services through better analytics and the integration of aug-
mented reality with brands and customers for their mutual benefit.
Any emerging market is no different from the emerged markets on the basis
of implementation of probability and know-how for consumer analytics,
392 MUSTAFA ÖZGÜR GÜNGÖR

integration of machine learning into discovery of consumer mindset and

development of new tools and techniques to reach and build a sustainable
relationship with a targeted marketing effort. The difference mainly comes
from the quality of creation and sterilisation of data for the use of for-profit
and non-profit organisations. All markets have variations, but it is a new area
of research to understand deeply how consumers are behaving with the use
of fMRI or enablement of artificial intelligence to mimic decision-making
process.
Nevertheless, emerging markets have significant economical constraints,
similarities in the anticipation of changes in the distribution of wealth, pric-
ing and promotional strategies to stay with consumer. In this theoretical
chapter, a brief history is presented, and the disruptive change in market-
ing caused by imperatives of technology is also explained. In brief, emerging
markets are mostly correlated with fluctuations in the major 20 economies of
the world since the volumes of business transactions are highly definitive as
briefly explained by Mody (2013):

… the German economy is similar to that of Japan – dependent on exports, running

current account surpluses, and generating limited international growth spillovers – the
contrast with the United States is marked. The United States is characterized by more
reliance on domestic consumption and, as a consequence, persistent current account defi-
cits but high international growth spillovers….

These spillovers from emerged countries affect the follower economies not
only with the increase in capabilities but also implications of similar strate-
gies taken from these global leaders to local businesses.
As far as the Internet and all associated socio-technological advances are
concerned, cascaded effects in strategies are carried over from the emerged
to emerging markets. Another important remark in this perspective is put
forward by Manyika et. al. (2016), with an underlying claim about ‘the flow’
in relation with ‘trade surplus’:

Countries cannot afford to shut themselves off from global flows. Given their role in
substantially raising gross domestic product (GDP) and boosting productivity growth,
there is too much value at stake. But the goal is much broader than simply running a
trade surplus… Narrow export strategies often ignore the real value of globalization: the
flow of ideas, talent, and inputs that allow companies to innovate in new ways and raise
productivity in the economy.

This movement is still in action, and it is effective worldwide. All markets

have these constructs, which are discussed in detail, but there will obviously
be variations in some of its applications and in claims made for the emerged
and emerging markets. The overall picture of technological waves of change
Marketing and Technology Directives in Consumer Life 393

and cumulative effects of these in conjunction with consumer behaviour

are reflected in Fig. 1. These tides, causing upshifting of consumer capa-
bilities, are in correlation with innovation and were directed by customer
orientation.
In Fig. 1, the timeline shows decades, and differences in marketing per-
spectives moving from product era to customer era are listed, and addi-
tional changes within customer capabilities in this era are also noted.
Based on these, technological factors affecting as major waves and their
consolidated stages of convergence with marketing practices are drawn.
Moreover, each wave has an initial impact at the emerged world, which is
then followed by Turkish market adaptation; all these are explained with
flow of diffusion. Each flow is representing a cycle of levels following one
another: anticipation of technology, localisation of services and adapta-
tion of consumer.
However, the big tide includes a series of waves, and therefore it is called a
‘stage’. There are three major stages taken into consideration in this chapter,
covering the last several decades of huge impact with changes in both axes.
These stages of evolution and their incremental contribution to consumer’s
life are discussed in the following sections with details.

Fig. 1.  Stages of Evolution with Convergence of Marketing and Technology.

394 MUSTAFA ÖZGÜR GÜNGÖR

STAGE 1: MARKETING WORLD FACED WITH AN

UNEXPECTED CHANGE
The pre-Internet era was quite complex and long enough to work on different
strategies of marketing such as buyer–seller relationships, segmentation, loyalty,
consumer attitude formation and influence and mental models of customer
decision-making (Zaltman, 2003). Yılmaz (2011, p. 60) explains that consumer
heuristics is a way that is often used by many customers in case no additional
data is required for a mental process. Moreover, many derivatives related with
competition from promotional Attention, Interest, Desire and Action (AIDA)
model to analyse brand equity were to be used as measures of better manage-
ment. Based on these, organisations were moving in multiple and mostly desig-
nated ways in relative nature of competition with advantages and disadvantages.
Entering a new market, placing positioning strategies, marketing mix mod-
ifications from 4Ps (Product, Price, Place and Promotion) to 4Cs (Customer,
Cost, Convenience, and Communication) (Lauterborn, 1990), respective con-
troversial moves against competitors, or using techniques for building a better
value chain (Porter, 1985) were already well anticipated. Businesses in emerged
markets were using these marketing tools extensively, but these tools were con-
ventional and still powerful as to meet with their needs. The Turkish business
landscape was more or less similar to other emerging markets (Tek, 2006). The
technology wasn’t there yet to make a significant impact on mainstream mar-
kets and all actors were using marketing tools of the past with convenience.
Conversion from product era to consumer era was gaining momentum
as changing perspective of organisations to a more customer-oriented mar-
keting mindset. However, development of a customer involvement profile was
studied theoretically in marketing departments, and practitioners were using
these with simple calculation models such as elaboration likelihood model,
and recognition and recall tests. Individual measures for customer involve-
ment and reaching to cognitive stages of any significant customer were still
away from discussion. Under these circumstances, expansion of Internet
and technologies directly related to it, such as emergence of e-business
and e-commerce, the discovery of new media and new ways of socialisation
have triggered many changes.
The physical world of business started to move into the cyber space where
any service from the globe was made available. By gaining customers from all
over the world, the requirement for having related services and organisational
functions for a complete change became prominent. E-business, by definition,
represents this evolution in the life of an organisation, from how it could be
producing and delivering the product to people with perfection integrated
Marketing and Technology Directives in Consumer Life 395

with services. In addition, it is also important to attain cyber capabilities, such

as websites for presenting detailed information about anything related to the
brand and its services, electronic messaging for a continuous dialogue with
the representatives of the brand and ubiquity of the organisation at any time
regardless of time zones.
While such a cyber change was in action, e-commerce emerged and took
over regarding how consumers behaved in the virtual world. Thus, e-com-
merce was in alignment with the change in progress but was also able to be
self-critical because the way in which it dealt with overall sales processes
meant access to more individual data of customers and opened new ways
for the measurement and management of loyalty. Many researchers have
been studying these areas to understand how to build better customer
relations (Campbell, 2003; Gale, 1994; Prahalad & Ramaswamy, 2000;
Zaltman, 2003) and the generation of more revenue based on improve-
ment in communication and offerings (Matthing, Sanden, & Edvardsson,
2004; Yılmaz 2011) with this service-dominant logic of marketing (Lusch
& Vargo, 2006) from the early years of the 21st century.

STAGE 2: CONVERGENCE OF TECHNOLOGY INTO

MARKETING STRATEGIES
With a splendid customer-oriented perspective, organisations then concen-
trated on making technological advances work for them. In the beginning,
it was thought of as a one-way street of using advancements in their favour,
but subsequently and unexpectedly quickly, these tools started to transform
businesses (Davenport & Kirby, 2015). It could be explained briefly as the
convergence of marketing-related technologies into organisations with effects
first on tactical procedures and then climbing up to strategical levels. In the
end, the outlook turned out to be from the top to the bottom for a number of
business transformations in alignment with customer-oriented and technol-
ogy-embedded ways of competition as explained below.
An important change in approaching the consumer was the understand-
ing of new media. The amount and the variety of media content increased
inevitably as the channels of communication restructured by the Internet and
its content delivery mechanisms for the screens (notebook/desktop computer,
television, mobile handset and tablet computer) of consumers became the
centre of gravity in marketing strategies. The amount of time a consumer
spent in front of these screens was far less when they were used only for
396 MUSTAFA ÖZGÜR GÜNGÖR

business purposes. Since the nature of this use turned out to be more social
and personal, each of these screens became more sensitive for marketeers for
delivery of any direct message to its individual recipient.
Taking it from the foundational construct of Holbrook and Hirschman
(1982), experiences of consumers that stimulate feelings, fun and fantasies
related with brand and services would easily be available for the masses.
Therefore, content became the king of this virtual world of business. The
management of a dialogue with the outer world of any organisation moved
to be based on it, and this methodology started to be used for bonding rela-
tions with brands. Content led to more consumption by amplifying word-
of-mouth effect as indicated by the results (Dhar & Chang 2009; Duan,
Gu, & Whinston, 2008; Ma & Atkin, 2017; Ye, Law, Gu, & Chen, 2011)
from various industries. As production of more new media content took
place, omni-channel marketing became necessary (Baxendale, Macdonald,
& Wilson, 2015). All these changes were mostly disruptive for many sectors
and rapidly affected the way they conducted relationships with customers
and partners.
Customer relations are always important for any organisation since most
of the revenue always has been bounded with the retention habits of loyal
groups against paying four times more to gain new ones. The Internet and
its multiple effects in reshaping businesses also enabled reaching a much
wider range of customers, keeping in touch with dialogues and understand-
ing each and every customer to personalise according to their preferences
and to customise for their individual needs. However, this required new
technologies at both ends: human interaction with high-performance call
centres and specialised CRM system.
New and critically important invention of advanced customer analytical
techniques and their consistent evaluation emphasised more concentration
on knowing and keeping almost all members of a supply chain in compe-
tition. As a result, customer satisfaction which is based on the mediation
effect of relationship quality became a practical leverage provided by power-
ful CRM strategies. The use of more quantitative approaches to investigate
customer expectations opened up potentials for higher customer satisfaction.
Organisations evolved more distinctively in serving their customers in a bet-
ter way to remain competitive. Some significant examples are in the finance
and telecom sectors of Turkey. Starting in 2000 up to 2005, a bank in the lead
with innovative customer services, which was backed up by independent tech-
nology powerhouse of their holding group, was also providing extensive call
centre functionalities. It was just like in the telecoms industry, with the first
mover leading the way. However, after 2005, several follower banks gained
Marketing and Technology Directives in Consumer Life 397

momentum to follow closely the leader for the perceived innovativeness meas-
ures for customers.
By 2010, all major actors in the banking sector were aligned with the use
of similar technology, leading to fierce competition to satisfy their custom-
ers. Around the same time in Turkey, the telecoms industry had similar chal-
lenges and evolution in a more concentrated way. Three major actors and
emerging corporate service providers had enabled call centre services, busi-
ness analytics and improved customer relations on the same level to stay in
competition. Since the widespread of technological infrastructure gained
momentum, consumers became more capable of reaching brands through
their virtual presence. This growth also ignited many online businesses to take
the centre stage, such as market places (large online retailers), vertical virtual
stores (food delivery and vertical retailers), information brokers (insurance
and price comparison) and brick and mortars (online electronic shops), to
move faster in this gold rush. The impact has been huge, but the next tide, i.e.
mobility, was even more challenging.
Mobility became the mainstream and took Internet-based technologies at
higher levels and affected consumer behaviour in a different way not only
because it provided ubiquity of services but also because it fostered new
forms of socialisation not discovered before. Customers became more influ-
ential and powerful with the capacity of simultaneous and real-time com-
munication with the brand. They increased the level of their voices with the
use of brand communities more effectively by just being online everywhere.
Mobility was connecting more people in different geographies for advocating
the same cause, defending their rights or searching for an adjustment for the
misuse of any product and service.
Following this movement, social–local–mobile (SoLoMo) was the newest
form of mobile-centric and socialised customer informing about local preci-
sion of services. As claimed by Çobanoğlu and Kesici (2014, p. 159),

SoLoMo enables companies/brands to provide the right offers at the right time, at the
right place to the right customers via mobile devices by melting mobile marketing activi-
ties, location based services and social media in the same pot. Thus, targeted marketing
activities can be fulfilled with a well-spent budget.

The change of SoLoMo customers were bringing in challenges for brands

to keep the track of many inter-customer dialogues, customer-to-public mes-
saging and local effects of each of such transmission of information. With
the process of observation and the work of understanding, this enormous
amount of bi-directional content required more intelligent tools and tech-
niques that included cutting-edge technology with a marketing mindset.
398 MUSTAFA ÖZGÜR GÜNGÖR

In parallel with SoLoMo, the emergence of ‘hyperlocals’ was another

transformation in conversion between consumers and brands because it was a
change from old-fashioned blogging to microblogging where texting became
an easy way to gather people around any possible subject. Blogging is a way
to express ideas and thoughts while discussing a topic in depth and with a
longer form of textual and visual content. It is a determinant of content-
driven era of consumer, back in the early 2000s. However, Twitter service,
Whatsapp platform and similar online services opened up microblogging
world of sharing and small-talk discussions among huge number of people in
real time. This rapid movement started in 2010 and still on gave any customer
the ability to build a marketing channel of its own through content-sharing
platforms by which it could be distributed worldwide in seconds. This kind of
socialisation and social networks were non-existent before. Firms were still
lacking the ability to understand this progress to handle change in the power
of consumers.
In contrast to the argument that millennials are considered less loyal to
brands but more loyal to themselves, brands are required to use technology
more effectively than signalling marketing messages to an outer space where
it wouldn’t be heard for light years. By the end of 2020, all these will be work-
ing with the consumer community. Since fear-of-missing-out (FOMO) is
already critical for millennial consumers, these platforms and different forms
of social networking would be indispensable for organisations to speak up
and send their messages directly to consumers.
The concept of FOMO was telling the marketing world that it would be
all about the person who uses social networking to complete self-esteem and
actualisation of personality not only with its presence in the old-fashioned
physical world but also in the virtual world. In 2016, Facebook, a social net-
work site, had more than 1.25 billion users, which was more than 15% of
world population. Similarly, the number of users on Twitter, a microblogging
site, representing most of the trend watchers of the globe, increased rapidly to
325 million.
The level of social interaction, and its integration with mobile commerce,
influences customers’ intentions to purchase (Wang & Yu, 2017). This is an
axiom known for a long time, and there have been different ways to make it
available in this century. New business models to make these services sus-
tainable are required in communicating with this new form of consumer. In
today’s business environment the management of social interactions with the
brand is a must, but it only enables keeping up with your competitors. The
next stage is to make social interactions more sophisticated, explicitly avail-
able and integrated with complex information systems. It will be designed
Marketing and Technology Directives in Consumer Life 399

at the enterprise level from top to bottom, injecting this into the mindset of
organisation as a culture for survival. This discussion takes us to the frontiers
of marketing and technology diffusion in the following part of this chapter.

STAGE 3: DEMYSTIFICATION OF CONSUMER

CONSCIOUSNESS WITH MACHINE-LEARNING
It is clear that the consumer is under attack from many simultaneous mes-
sages from organisations and their offerings. Understanding what the con-
sumer is thinking and continuous analysis of their perceptions about the
brand are critical for the evaluation of products and services. Enablement of
machine-learning techniques and using big data provide new potential areas
for research of customer consciousness as an emerging area for continuous
innovation. Unification of studies about consumer behaviour and machine-
learning are subject to trigger more advanced outcomes.
Marketing functions of organisations act for ‘consumer consciousness’
gain customers. Thinking out-of-the-box in organisations is for onboarding
importance to build not only new products and services but also to differenti-
ate the firm with unique ways of doing business. From generation of new ideas
to delivering newly designed products and services in the market, customer
involvement is critical in improving offerings. The concept of value co-crea-
tion with customers and customer involvement into the innovation process
provide a useful reference guide for firms to assess the power of ideas from
their customers who are willing to drive innovation as a main stakeholder.
In this context, innovation is considered as a mandatory element of man-
agement strategies and core values for sustaining competitiveness (Krause,
2004). It is widely acknowledged by industry and academics that organisations
should transform themselves in an innovation-oriented manner to remain
competitive and capture signals of markets to manoeuvre easily to align with
new changes and challenges of markets. For these innovation-oriented organi-
sations, cultivating customer-centric activities to make use of insight from cus-
tomer responses is one of the most important issues (Bennett & Gabriel, 1999;
Chase, 1997), and there is a considerable interest in the potential of ‘co-
creation’ either individually or in the context of community. Co-creation
is viewed as an aspect of marketing competence for engaging with cus-
tomers and developing collaborative knowledge about offerings of any
organisation so that processes generate knowledge about loyal customers
(Campbell, 2003).
400 MUSTAFA ÖZGÜR GÜNGÖR

From this perspective, ‘customer’s advisory’ contains unconditionally pro-

vided cues from customers to revolutionise existing products and services as
well as opening dors to new product ideas. In addition, numerous studies
underline that the transfer of information from such consumer consciousness
or similar cognitive representations specifically for origins of products and
services are substantially influential (Hong & Wyer 1989; Shimp, Samiee, &
Madden, 1993). Therefore, this kind of knowledge transfer is a complicated
process of the consumer mind and is based on learning theory, sociological
factors and cognitive iterations (Gregan-Paxton & John 1997). As innova-
tiveness is a critical key to remain in competition for globalised markets, this
opportunity is unmistakable for organisations. For this reason, the use of
customer’s advisory requires both organisational responsiveness and empa-
thy to understand the customer’s response by determining the magnitude of
its influence and cognitive perceptions regarding the brand associated with
its bundled offerings, as stated in a delicate way in ‘service dominant logic of
marketing’ (Lusch & Vargo, 2006) for consumer mind, and capability to turn
that information into knowledge for evaluation of services.
Nearly two decades ago, the invention of the Internet and its inevitable
expansion has changed many aspects of technology and human life. One of
those evaluations is the impact of discrete computational power on artifi-
cial intelligence, more precisely machine-learning techniques, of the previ-
ous decade. Capacity for more computation and modelling of conventional
regression and nonlinear models were upscaled through the use of Internet
connectivity and distributed computing. Furthermore, this not only enabled
more investigation of structured data but also opened up new possibilities for
analysing unstructured and complex data forms such as limited texts, voice
recognition, multi-language combinations, discrete event collections, chats,
microblogs and messages. This power of computation is also beneficial for
understanding huge amounts of information silos which were not available
20 years ago.
Another evaluation was the invention of virtualisation of many human
activities taking place every day. However, either structured or unstructured,
this amount of information is still in need of analysis with the support of
machines for prediction and prescription in a very efficient manner. These
advances in machine-learning have three significant dimensions for practi-
tioners to determine the next-generation marketing communication strategies
and to understand consumer behaviour for more innovation in services.
First one is the application of functional magnetic resonance imaging
(fMRI) data, which offers multiple possibilities of pre-testing and classifying
marketing communications using unbiased pattern of recognition algorithms
Marketing and Technology Directives in Consumer Life 401

(Calvert & Bremmer, 2012). These algorithms support analysis of brain

responses to brands, products and marketing messages by identifying the pat-
terns of brain activity that characterise positive or negative perception.
By this approach, practitioners are enabled with a new communication
path for better campaigns because they have the chance to discover new
trends of services using responses that match the desired pattern of brain
activity without requiring collection of further physical or virtual feedback.
The application of these brain-imaging techniques in marketing science
will provide much greater accuracy of prediction for the acceptance of new
brands, products and effectiveness of campaigns. Moreover, the collection of
structured big data at a speed makes it easily accessible and reusable for more
difficult processing requirements. Big data tools are more advanced for infer-
ence of insights based on these patterns of information.
Second, in order to derive better predictions of customer behaviour,
machine-learning algorithms are usable for classifications into the consumer
mind, clustering of similar purchase behaviours and customer recommenda-
tion patterns. These processes can be modelled by advanced tools available
with major software vendors. This direction of change within an organisation
has impacts on both human resources and strategic mindset of the business
by employing these methods throughout the enterprise (Davenport & Kirby,
2015). Many integrative models efficiently combine statistical big data analy-
sis, and artificial intelligence approaches and have been studied for more than
a decade. However, computational power and distributed software services
are becoming more efficient and recently available for many developers in the
form of platform-as-a-service (PaaS). In parallel, many organisations are cur-
rently evaluating their capacity for enabling PaaS for business needs. Using
this combined data set of structured and unstructured big data to understand
and mimic consumer cognition about brands and services will suggest better
predictions and prescriptions for innovation.
The third dimension, ‘semantic social web’, is becoming one of the most
valuable resources for mining sentiments of consumers for improving suc-
cess rates in CRM. It is not only helpful in the preparation of more influen-
tial campaigns but also provides better tracking of recommendations about
products, investigation of trends in public opinion through influencers and
efficient text filtering to avoid inappropriate content to protect brand values.
Therefore, insights obtained from this intelligent social web are now extremely
valuable for marketing researchers.
On the other hand, different parts of these contents are very unstructured
and not simply understandable for quantitative analysis. Enabling text min-
ing algorithms to make explicit and autonomous classifications as well as
402 MUSTAFA ÖZGÜR GÜNGÖR

targeted and self-learning clustering for the acquisition of more meaningful

data are challenges to be solved. Using human supervision and then crunch-
ing the data in machine-learning tools will lead to more efficient understand-
ing of consumer behaviour. This movement takes information science into
dealing with more marketing-specific problems, which were mostly analysed
with foundational qualitative methods. Since there was not enough capacity
for continuous analysis of behavioural streams of customer interactivity with
brands, it was hard to compute large parametric models in the past.
In Turkey, pioneers of stepping into this third stage are not only larger
financial institutions and big telecom companies but also online retailers that
are required to keep their floating customers while trying to compete with a
tight margin. This narrow lines of profitability in retailing when compared
with banking and communication services pushed actors more to the edge in
the adaptation of more manageable intelligence in understanding customers
through machine-learning and using innovative forms of loyalty extension by
mobile applications, calibrated campaign management, intensive rewarding
and more higher margined cross-selling.
One significant example is the loyalty software platform of a major retailer
where customer data, payment processing services, cross-retailer incentives and
multi-service-integrated applications entered into the market and delivered to
masses with exponential stickiness and started digging enormous amounts of
customer data instantly. Following this example, food delivery broker, another
leader in online brokerage market, started to integrate data analytical services
for its clients. In addition to its recommendation engine, the enablement of
gamification of loyalty was started with a retail transaction and ended with
simplified payment to fulfill the needs of its users and clients simultaneously
with more intelligence. There are banks making their manoeuvres to semantic
web-based prediction for discovering credibility of individuals and small- to
medium-size enterprises by using not only data collected from their branches
but also the data which was presented by different sources, both private and
public. For complementing this action, a large bank has initiated mobile pay-
ment services; similarly, another important actor of this sector has employed
mobile loyalty and payment application and advertised a new mobile software
platform to serve any customer, not limited to its own customer, ubiquitously.
More organisations are heading in this direction for the future.
For a last couple of decades, the number of mobile subscriptions has
exploded from zero to seven billion, which led to the development of new tech-
niques in electronic commerce and also different applications in this virtual
space, leading to numerous new analysis and capabilities of how people make
purchase decisions. In addition to these, the modelling of customer behaviour
Marketing and Technology Directives in Consumer Life 403

became more open to the use of multiple data sources from image processing
of visual recordings in store to post-purchase trails left in mobile shopping.
Thus, with the explanation of flow of shopping process, made in each decision-
turning point of customer, to be redesigned of the total AIDA model towards
increasing the satisfaction or focusing on the overall experience with the brand.
On this path, the next invention would be the using of these real-time feeds,
added by semantic social web and the İnternet of Things into machine-learning
to derive decisions of keeping customers more satisfied, and therefore more
loyal, in association with all physical and virtual experiences with the brand.

CONCLUSION
The importance of a theory comes from its power of expansibility into dif-
ferent perspectives for understanding matters of the universe. In this perspec-
tive, the theory of ‘marketing myopia’ (Levitt, 1960) explains the problem
about how industries are managed by selling rather than marketing, by which
the needs of customers are more in focus. This mistake relates to the foresight
width of management for understanding changes and defining the areas to
concentrate for keeping or increasing the revenue. A permanent evolution
of brands is only possible with a broader definition of industries for their
proposed values to have more advantages for growth. In this chapter, this
challenge was addressed by different stages of marketing and technology con-
vergence. A solution is discussed based on service-dominant logic of mar-
keting (Lusch & Vargo, 2006) with the use of ‘customer’s advisory’ from all
responses collected from virtual and physical mediums, together with effecting
factors of change.
Integrating customers into the innovation process lowers the barrier to
adopt change. Prahalad and Ramaswamy (2000) suggest that companies
have to recognise that customer is becoming a partner in creating value, and
need to learn how to harness customer competence. According to McCosh,
Smart, Barrar, and Lloyd (1998), the company must be close to its custom-
ers, partly to respond to their expressed needs, so that it can work out what
they want in the future. Matthing et al. (2004) suggest that the value of cus-
tomer involvement in new service development resides in the opportunity
to facilitate proactive learning about the customer, and to understand and
anticipate latent customer needs. In order to make this work, the most criti-
cal for researchers was e-commercialisation. It was an unexpected speed of
improvements for classical marketing theories to have the chance of practical
tests by the data collected through trails of customers left in websites, mobile
404 MUSTAFA ÖZGÜR GÜNGÖR

applications and their social web. Today, this type of data is to be drilled
down and added to the mindset of any organisation dealing with a large
number of consumers.
Engagement with customers for facilitation of innovation by developing
collaborative knowledge about products and services gains importance. This is
also a significant marketing competence of successful companies which could
be characterised as innovation-oriented organisations. Machine-learning
methods, such as classification, regression, clustering and cross-validation,
are powerful tools used with big data mining for large databases and give
researchers opportunities to gain new insights into consumer behaviour.
There are many practitioners in this domain, both from the academia and the
business world, and increasing number of initiatives and many research com-
panies trying to solve more problems, which are becoming epidemic, in giving
meaning to all forms of unstructured data flooding e-commerce pipelines,
social media, mobile applications, gamification platforms and overloaded
content generation.
The accuracy of prediction and interpretation of results for different cases
by just using computational power is another important complementation
for better decision-making. From this perspective, the focus of innovative-
ness to remain competitive pushes firms to develop new perspectives in con-
sumer behaviour analysis, whereby ‘customer’s advisory’ is the core to pull
this stakeholder group to the process of creativity with additional power of
machine-learning that leads to detailed analysis of consumer decision-mak-
ing processes. Moreover, it also becomes possible to make predictions about
consumer behaviour by reading the mind of consumer through these models.
Customer consciousness is made up of a web of complex events, anticipa-
tions and collection of messages about brands which deliver many services.
Although it is hard to model this exactly, machine-learning techniques and
big data are promising the future to make it more productive as a driver of
innovation.
Many of the factors driving emerging economies are similar to Turkish
markets and are explicitly discussed in the Global Information Technology
Report. Enriquez et al. (2015, p. 62) as a conclusive point have also stated that
‘Governments may consider how to support this group so that they become
part of the Internet society and benefit from projected growth’. Therefore,
it is not only the people, academicians and businesses of any country that
are responsible for making use of technology for growth but governmental
actions are also critically important to support this perspective. These actions
include increasing the quality of the educational system, judicial independ-
ence, ease of venture capital availability, having better management schools,
Marketing and Technology Directives in Consumer Life 405

empowering mobile communication, increasing the workforce with more

knowledge-intensive jobs and more intellectual training of Turkish people
in comparison with the international rankings mentioned in the Global
Information Technology Report (2015, p. 249).
Turkish companies are more concentrated on increasing sales through devel-
oping new assessment methods to reach different customer segments mainly
based on pricing (Manavgat & Kaya, 2016), rather than working on huge piles
of refined data, since collection of data and sterilisation for an explicit analysis
are definitely harder despite all advantages provided by e-commerce tools and
techniques. Based on the explanations given in above sections, for the first two
stages of this convergence, both loyalty and retailing, stronghold of the mar-
ket data analysis, have always stayed in the shadow instead of building more
targeted marketing plans. From this time onward, Turkish organisations might
look ahead by using the methods employed all over the emerged economies to
understand customer behaviour from deep data analytics and to build lever-
ages for competition in domestic and international markets.
This undisputable volume of data, new generation of customers and
their evolved capabilities, competition-aware firms and service-based focus
on business are expanding the canvas for the future. Management, market-
ing and technology are in intersection and merging with more advancements
coming from all axes to reach customer, to act with partners, to stand tall in
the market and to manage resources more effectively. Even governments are
more, so to say, citizen-oriented. From a broader perspective, the sustainabil-
ity of such a movement depends on more sophisticated analytics based on the
facts, assumptions and limitations discussed in this chapter.

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 SECTION 9
DELIGHTS OF THE TURKISH
MARKET
This page intentionally left blank
CHAPTER 9.1
WHEN DELIGHTS TURN BITTER:
CONSUMER RESISTANCE IN
TURKEY

Melike Demirbag-Kaplan

ABSTRACT

Consumer resistance has been a popular research area in the previous dec-
ades, and concepts such as boycotting, brand avoidance, voluntary simplic-
ity and anti-consumption appeared to be hot topics in exploring the ways
the consumers resist market dominance in the postmodern culture. However,
research on this topic in the Turkish (and partly Eastern) context is very
limited, inhibiting our understanding of the topic in different economic and
cultural settings. Through a comprehensive discussion that provides institu-
tional-, structural- and community-level perspectives relating to consumer
resistance phenomena in Turkey, a developing country with historical and
cultural roots in both the East and the West, the chapter intends to equip
scholars and practitioners with a better insight to conceptualise this phe-
nomenon as well as to formulate further studies and marketing strategies.
Keywords: Consumer resistance; anti-consumption; boycotts; Turkey

Marketing Management in Turkey, 411–430

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181027
411
412 MELIKE DEMIRBAG-KAPLAN

INTRODUCTION
Consumer resistance has been of significant interest for researchers for at least
two decades not only because it offers a novel lens to explore consumption
dynamics in a postmodern marketing environment, which is characterised by
significant shifts in power relations, but also due to the fact that a variety of
forms of resistance have the potential to severely damage the reputation and
brand image of the target business, to impede its strategic objectives and even
to drive the organisation out of a particular segment or market. This chapter
addresses consumer resistance in the Turkish context by providing a multi-
tude of perspectives to explore the antecedents, performance and outcomes
of resistant behaviour in an emerging economy.
The importance of investigating consumer resistance in Turkey lies in two
dimensions relevant for a broader debate over resistant ideologies. The first is a
practical purpose, in which I will try to summarise the history of resistant behav-
iours in the Turkish marketplace that will also serve as a timeline to understand
the evolution of consumer mindset in recognising the individual’s own power in
initiating change. The second contribution arises from a more theoretical debate
that focuses on the socio-cultural context in which these behaviours occur, par-
ticularly shaped by political ideologies that represent the polarised society of
Turkey (and to some extent the Middle East) in the wake of the millennium, with
a potential to stream the discussion of consumer resistance into a channel that
essentially differs from that of Western experiences.
With these considerations in mind, the chapter is organised as follows:
I will first deliver a brief introduction on the concept of consumer resist-
ance and provide a clarification on interrelated, overlapping or misused
conceptualisations, such as anti-consumption and boycotting, from the
recent literature on the topic. The review section will then delve into the
nature of consumer resistance utilising the continuum approach (Fournier,
1998), providing information on the forms of mobilising anger and frustra-
tion at each step, such as complaints, boycotts, culture-jamming or anti-
brand communication, as well as delineating between several dimensions
that might be present, such as active versus passive, or individual versus
collective resistance.
Obviously, such a discussion is indispensable for motivational factors
that lead to resistant behaviours. In this context, in addition to the factors
that are widely acknowledged in (mostly Western) literature, the chapter will
try to explore and present the dynamics that are unique to the Turkish con-
sumptionscape in facilitating consumer resistance towards particular brands.
This section will therefore focus on how demographics, cultural macro- and
When Delights Turn Bitter: Consumer Resistance in Turkey 413

micro-spheres, regionality, political polarisation in domestic and interna-

tional affairs, formation and reformation of identity and morality as affected
by local and global environmental forces shape consumer reactions, and give
rise to instances of resistance by using cases from distant and recent history.
Analysis of these cases will provide a deeper insight into the factors that con-
tribute to consumer resistance, the ways and channels through which the reac-
tions are mobilised, corrective measures that are taken by the organisations
and global effects of the resistance on the Turkish market. A comprehensive
discussion that intends to provide new understandings on consumer resist-
ance, particularly based on the two aforementioned dimensions will conclude
the chapter.

BACKGROUND
Consumer resistance is defined as ‘a motivational state leading to variable
manifestations of opposition and which is triggered by certain factors linked
to corporate behaviours and marketplace practices’ (Roux, 2007, p. 69), and
arises when a consumer opposes ‘the culture of consumption and the market-
ing of mass-produced meanings’ (Peñaloza & Price, 1993, p. 123) by reacting
to a particular brand, organisation or any norms and devices that are con-
sidered to signify a system of market domination (Cherrier, Black, & Lee,
2011). In this context, consumer resistance is a broad domain that encom-
passes a wide range of practices from active behaviours, such as boycotting
or voluntary simplification, to more passive ones, such as avoidance of a par-
ticular brand, a product or a product category in general (Hogg, Banister, &
Stephenson, 2009; Close & Zinkhan, 2009).
Scholarly interest in consumer resistance is rooted in consumer activism,
which became quite widespread, especially among hippie groups in the late
1970s, but it was only by the 2000s when the scope of the domain dramatically
expanded, as consumers became much more aware of the negative effects of
consumerism on global economics, politics, cultures and the environment, and
started to take part in various movements and groups such as Buy Nothing
Day, Anti-Valentines, PETA, Voluntary Simplification or CittáSlows. In par-
allel, there has been a growing body of scholarly works to cover such a variety
of practices, particularly in the last decade; however, the predominant focus is
still on one specific form of action, that is boycotting behaviour (Chalamon,
2011). Disproportionate attention devoted to boycotts as if it encompasses
the ultimate manifestation of consumer resistance, unfortunately gives rise to
414 MELIKE DEMIRBAG-KAPLAN

misused conceptualisations within the domain, which requires a clarification

of several concepts.
First of all, it is worth mentioning that consumer resistance is not limited to a
set of attitudes and actions that the consumers undertake just because they had
an unpleasant experience with a particular product or service leading to dissat-
isfaction. While these behaviours are also included in the resistance literature,
such as consumer complaints and negative word-of-mouth (Hirschman, 1970),
consumer resistance rather refers to a general headline that covers several active
or passive behaviours which emerge as consumers’ response to varying forms
of corporate dominance (Peñaloza & Price, 1993). In other words, resistance is
present when the consumer opposes or tries to escape from the dominant force
exercised by market actors, behaviours or devices (Roux, 2007). Consumer
resistance is also different from anti-consumption, which has been a hot topic
in literature in the last decade. Anti-consumption refers to ‘a continuum of
responses that consumers have towards traditionally marketed products, rang-
ing from non-consumption to active rejection’ (Lee, 2006, p. 73), and accord-
ing to Lee, Roux, Cherrier, and Cova (2011), it is a rather grand theory that
focusses on the processes of consumption. On the other hand, consumer resist-
ance constitutes a part of anti-consumption, where the highlights of research
evolve around power asymmetries in the marketplace (Foucault, 1982).
According to Fournier (1998), consumer resistance may be expressed as a
continuum that ranges from less potent and defensive behaviours, such as
avoiding the consumption of a particular product, to more potent and offen-
sive behaviours, such as active rebellion, which is usually realised in the form of
company boycotts (Fig. 1). While other models of consumer resistance are also
present in literature, this framework provides an easily understandable basis in
classifying possible routes that consumers take to resist market dominancy.
Following Fournier’s (1998) model, we can then offer a review of studies
that focuses on alternative forms of resistance, leading from avoidance to
active rebellion.

AVOIDANCE BEHAVIOURS
To begin with, some consumers may adopt a relatively more passive attitude
in reacting to market forces and resort to avoidance behaviour in favour of
alternative products or brands. Brand avoidance is a special form of reaction
to consumerism, in which individual concerns for consumption of target-
specific brands or products (Iyer & Muncy, 2009), including public goods
When Delights Turn Bitter: Consumer Resistance in Turkey 415

Weak INTENSITY OF RESISTANCE Strong

Large SCOPE OF RESISTANCE Narrow

Avoidance Behaviors Minimisation Behaviors Active Rebellion

• Brand avoidance (e.g. Lee, • Downsizing & Voluntary • Consumer boycotts (e.g.
Motion and Conroy, 2009) simplicity (e.g. Elgin and Friedman, 1985)

• Distaste toward other Mitchell, 1977) • Culture-jamming (e.g.

preferences (e.g. • Coping strategies (e.g. Rumbo, 2002)
Richardson and Turley, Roux, 2007) • Anti-brand communication
2006) • Creative or alternative (e.g. Hollenbeck and
consumption (e.g. Holt, Zinkhan, 2006)
2002) • Protests or events (e.g.
Kates and Belk, 2001)

Fig. 1.  Continuum of Consumer Resistance. Source: Adapted from

Fournier (1998); Lai & Aritejo (2010).

and services, which are offered for free (Demirbağ-Kaplan & Kaplan, 2011).
According to Lee et al. (2009), brand/product avoidance of this type may
stem from three main reasons: The first of these is the avoidance behaviour
that occurs as a result of a negative experience with the performance of a
product or a brand, and is therefore called experiential avoidance. This type
of avoidance is more in line with the classical studies of consumer resistance,
such as asserted by Hirschman (1970) that consumers would try to make their
dissatisfaction known (voice), switch the brand for other alternatives (exit)
or remain passive and keep on buying the brand (loyalty). Another form of
experiential avoidance may occur when the consumer perceives the brand to
a lack of utilitarian value/worth to the consumer, even before using it, which
is labelled as deficit-value avoidance (Lee et al., 2009).
Secondly, individuals may refuse to consume a product or brand, as they are
concerned with an identity conflict. In other words, if the product is attributed
to an undesirable identity symbol or with a negative reference group, brand
avoidance can occur (Englis & Solomon, 1995; Hogg & Banister, 2001), and
the consumers would refuse to consume the brand because they actually reject
the identity attached to it. Finally, it may be the case that consumers reject a
416 MELIKE DEMIRBAG-KAPLAN

product or brand based on their moral and ideological stances (Kozinets &
Handelman, 2004). Named as moral avoidance, this may result from a reaction
towards company’s policies and strategies (for instance, in the 1990s, the global
boycott campaign of Nike after the company was known to employ children
in the Third World) or a hostility towards country of origin of the product (for
example, Coca-Cola boycotts based on anti-Americanism). Similarly, consumer
judgements that are based on the idea that foreign purchases are not compat-
ible with patriotic or religious values can lead to moral avoidance (Klein, 2002;
Lee et al., 2009; Sandıkcıi & Ekici, 2009). Over-commercialism of a brand and
ill-favoured marketing efforts, involvement of a company in unethical busi-
ness, or any action that is perceived to disrespect human, animal and environ-
mental rights may be considered as other reasons (Demirbağ-Kaplan, Atik, &
Gürkaynak, 2011; Friedman, 1985; Micheletti, 2003). Moral avoidance may
also overlap with voluntary simplicity, behaviour and identity avoidance
(McDonald, Oates, Young, & Hwang, 2006).

MINIMISATION BEHAVIOURS
Apart from avoiding a target product or brand, consumers may choose to
resort to minimising consumption in a variety of ways. In this regard, volun-
tary simplicity, which refers to a lifestyle of minimal, ethical and ecological
consumption, is probably the most studied consumer resistance behaviour.
Voluntary simplifiers are ‘individuals who have freely chosen a frugal, anti-
consumer lifestyle that features low resource utilisation and low environmen-
tal impact’ (Mcdonald et al., 2006), which is based on material simplicity
(non-consumption-oriented patterns of use), self-determination (desire to
assume greater control over personal destiny), ecological awareness (recogni-
tion of the interdependency of people and resources), human scale (a desire
for smaller-scale institutions and technologies) and personal growth (a desire
to explore and develop the inner self) (Elgin & Mitchell, 1977, p. 5). According
to Leonard-Barton and Rogers (1980, p. 28), it is ‘the degree to which an indi-
vidual consciously chooses a way of life intended to maximise the individual’s
control over his own life’, and may be characterised with behaviours such as
abandoning luxury and frills, preferring natural and simpler products and
consuming as less as possible (Elgin, 1981; Shaw & Newholm, 2002).
Coping strategies, on the other hand, refer to an individual’s implementation
of particular tactics to thwart the influence and persuasion attempts of the
marketers, with possible aims to struggle with, to oppose or to delay them
When Delights Turn Bitter: Consumer Resistance in Turkey 417

(Fournier, 1998). Roux (2007) states that this reaction is initiated as the
consumers perceive the influencer and/or the elements of influence to be
incongruent with individual aspirations for freedom of choice, autonomy in
decision-making and willingness to cooperate or not with a market partner. To
this aim, consumers may develop a variety of understandings and behaviours
to combat and minimise personal interaction with market elements that they
perceive to be manipulative, such as advertising campaigns, commercial offers,
sales techniques and store atmospherics and brands (Banikema & Roux, 2014).
Minimisation behaviour can also come in the form of creative and reflexive
resistance to consumption, where consumers may elaborate on alternative ways
of engaging with the market in order to regain their sovereignty (Holt, 2002).
As Arnould and Thompson (2005, p. 871) note: ‘The marketplace has become
a pre-eminent source of mythic and symbolic resources through which [con-
sumers] construct narratives of identity… [where they not only] actively rework
and transform symbolic meanings’, but also engage in everyday practices using
‘marketplace cultures [to] define their symbolic boundaries through an ongoing
opposition to dominant lifestyle norms and mainstream consumer sensibilities’
(Arnould & Thompson, 2005, p. 874). In doing so, the authors conclude, consum-
ers develop creative and sophisticated ways in order to frequent their channels to
resist the market place ideology. Some examples include online communities for
modifying commodities, such as cars, pharmaceutical products, furniture and
works of art (Hewer & Brownlie, 2010; Nakajima, 2012; Sawhney, Verona, &
Prandelli, 2005;). Such ‘craft consumers’ (Campbell, 2005), who strive to play
an active role in producing and crafting the things they consume, can be increas-
ingly found in Do it Yourself (DIY) communities (Orton-Johnson, 2014), IKEA
hackers (Koniorczyk, 2015), consumer food co-ops and community-supported
agriculture (Renting, Schermer, & Rossi, 2012), second-hand markets (Guiot &
Roux, 2010) and collaborative consumption and sharing practices (Belk, 2014).
Not surprisingly, social media platforms play a dominant role in enhancing the
transformation of consumers into prosumers, crafters and innovators by offering
new dimensions and qualities of interactivity (Kozinets, Hemetsberger, & Schau,
2008; Napoli, 2010).

ACTIVE REBELLION
Consumer resistance in its most active and collective form is achieved in the
final end of resistance continuum, which is usually labeled as active rebel-
lion. The most common and therefore widely studied form of active rebellion
418 MELIKE DEMIRBAG-KAPLAN

within the consumption contexts is consumer boycott. Formally, a consumer

boycott refers to ‘an attempt by one or more parties to achieve certain objec-
tives by urging individual consumers to refrain from making selected pur-
chases in the marketplace’ (Friedman, 1985, p. 97). Boycotts may stem from
social, political or environmental concerns, and may target individual per-
sons, companies, organisations or countries usually with an apparent purpose
of inflicting some economic loss; however, as many researchers observe, most
boycotts are actually symbolic and are instrumentalised to serve the expres-
sive function of making a social or political statement, regardless of whether
or not they make the target economically suffer (Friedman, 1999; Kozinets &
Handelman, 2004). In doing so, consumers may make their demands and
outrage known by the public, with the expectation that this will compel the
target to change its objectionable behaviour.
Apart from boycotts, mobilisation of anger and frustration may also come
in forms of protests (Kates & Belk, 2001), culture-jamming (Rumbo, 2002) and
anti-brand communication (Hollenbeck & Zinkhan, 2006). Culture-jamming
refers to organised, social activist efforts that aim to encounter the bombard-
ment of consumption-oriented messages in the mass media (Carducci, 2006),
and it is a specific term that has been coined by the activist group Negativland
to describe a variety of activities that they undertook in the early 1980s, such
as billboard alteration and other forms of media sabotage (Dery, 1993). With
the advent of media technologies and availability of desktop publishing soft-
ware for ordinary consumers, culture-jamming turned into a new and crea-
tive avenue, where offended individuals can artistically express their dislike
and resentment towards particular brands and entities. As a genre of New
Media Activism (Lievrouw, 2011), the Internet and social media serve as a
perfect medium for culture jammers to organise and perform such activities,
and make their struggle for a radically pluralistic society known to public.
In addition to alteration of marketing symbols and texts, such as advertise-
ments, logos or slogans, and anti-brand websites built around these hoaxes,
including stories of hatred, also signify a new era of active rebellion that aims
to inflict damage on the reputation and power of dominant market entities
(Krishnamurthy & Kucuk, 2009).
While the continuum model provides an easily understandable framework
in classifying possible ways to resist market actors, the literature offers other
categorisations of consumer resistance, such as individual versus collective
actions (Cherrier, 2009), for personal versus societal purposes (Iyer & Muncy,
2009), being reformist versus radical (Peñaloza & Price, 1993) or objecting sin-
gle actors versus the system in general (Iyer & Muncy, 2009). Antecedents of
resistance, such as dissatisfaction and discontent (Zavestoski, 2002), skepticism
When Delights Turn Bitter: Consumer Resistance in Turkey 419

(Fournier, 1998), cynicism (Dobscha & Ozanne, 2001), need for self-expression
(Gould, Houston, & Mundt, 1997) and need for uniqueness (Austin, Plouffe, &
Pander, 2005), in addition to several demographic variables, such as educa-
tional level and age (Friestad & Wright, 1994), are also well studied in the lit-
erature. Moreover, actual and possible consequences of consumer resistance
appear to be another important stream of research in this domain, focussing on
the effects of firm performance, brand image and reputation, consumer percep-
tions of marketing claims, alternative modes and channels of consumption and
how the market actors react to these changes.
As detailed in this review, an overwhelming majority of these studies are
carried out in Western contexts, that is, in developed markets and democra-
tised societies, where the experiences and practices of resistance are much
more institutionalised on political, social and economic scales. A study on the
practices of consumer resistance in less developed and democratised econo-
mies therefore stand as a new channel with the potential to provide novel
insights into the topic. To this aim, the next section provides a selection of
consumer resistance stories from Turkey, a developing country with historical
and cultural roots in both the East and the West, yet differing from both in
several economic, social and political aspects.

CONSUMER RESISTANCE IN TURKEY

Several notions related to consumer resistance, boycotts for instance, are inher-
ently Western, as they are the byproducts of capitalism. However, resistance
that uses economic power as a form of coercion was also present in the East,
and Turkey is no exception. Historical accounts as early as the 16th century
indicate collective movements in Central Anatolia as part of Jelali Rebellions,
with significant numbers of reaya (peasants obliged to cultivate a certain
amount of land) abandoning their land without permission and becoming
çift-bozan (farm-breakers), a status highly unwelcomed by the Ottoman Rule,
as it severely damages the economic order. While farm-breaking is mostly
considered an inevitable result of failed economic, social and judicial system
and the suffering it has caused, for several authors it also involved a motiva-
tion to resist the Ottoman Rule, as a significant number of farm-breakers also
joined the rebels (Ceylanlı, 1995; Kayaoğlu, 2012). Obviously, such move-
ments were not organised in the fashion of modern consumer resistance,
which required another three centuries to pass in the Turkish context. By this
time, consumers’ use of their economic power as a tool to resist a particular
420 MELIKE DEMIRBAG-KAPLAN

company, local administration or country, in short, an authority that they

perceive to be ill-doing for any reason, started to become much more institu-
tionalised in the West.
Boycott, similar to the experiences of other countries, was not only the
oldest but also the most frequent tool of consumer resistance in Turkey.
Therefore, this section will first provide examples of active consumer rebel-
lion throughout the modern history of Turkey, and then expand the discus-
sion into other practices relevant to consumer resistance, such as avoidance
and minimisation behaviours.
The first record of a framed practice of consumer resistance dates back to
1908, which was carried out against the stores and products of the Austro-
Hungarian Empire, just after it annexed Bosnia and Herzegovina on October 6,
1908. This first boycott in the Ottoman lands, which is known as ‘the Ottoman
Fez Boycott’, initially targeted fez (a headdress in the shape of a close-fitting
skull cap) products imported from Austria at that time, but soon became wider
to target all Austrian and Bulgarian stores and covered a variety of products
such as basic food items and clothing. The expansion of the boycott was orches-
trated by the Committee of Union and Progress (İttihat ve Terakki Cemiyeti),
which was in power along with the Sultan, immediately after the proclama-
tion of constitutional monarchy for the second time, and the boycott actually
attempted to show that the Empire was also capable of waging an economic
war against its opponents. The boycott lasted for four months with the support
of media, port workers, students and merchants (Quataert, 1987), and led to a
partial success such as some clauses of economic gain in an agreement signed
with Austria in February 1909. It resulted in an economic loss of 100 million
French Francs for targeted businesses; however, it also had a negative impact on
the Ottoman economy, as there was a statistically significant reduction in trade
with Austria–Hungary due to the boycott, which contributed to an increase in
prices, and hence the inflation during the period of resistance. The fez boycott
also led to flourishing of the Ottomanism idea and the need for a new economic
order that is built on nationalistic values, mobilising a variety of political fac-
tors that were quite novel to the Empire by that time (Cetinkaya, 2013).
In the following decades, boycotts were in full swing throughout the world
as a form of global political and economic resistance, but Turkish consumer
movement remained quite silent during that time, particularly due to inter-
nal problems endured during the foundation of new republic. Boycotts were
again popularised in Turkey in the end of the 1960s, influenced by the pro-
tests of 1968, but now assumed a new meaning that mainly referred to boy-
cotting classes by university students, who demanded more freedom and
autonomous universities.
When Delights Turn Bitter: Consumer Resistance in Turkey 421

The first consumer boycott that attracted a wide participation was held
against Coca-Cola and Pepsi in 1990, and had an economic character. Due
to fierce competition between Coca-Cola and Pepsi over the Turkish market,
both companies had to cut their prices in the previous years, which became
economically unsustainable and followed by a 100% increase in price in the
Spring of 1990. This sharp increase caused a very unfavourable reaction in
the market, particularly on the side of retailers who asked for a proportion-
ate increase in profit margins, a demand which was turned down by the cola
companies. In return, retailers organised a boycott, refusing to sell cola prod-
ucts, which immediately expanded to restaurants, cafes, pastry shops, school
canteens and touristic businesses. With the support of retailer and consumer
associations, the boycott gained a new perspective to include all exported
products. On May 4, 1990, a congress was held in Ankara, and Cemal
Tarcan, the vice president of the General Confederation of Tradesmen and
Craftsmen of Turkey, sent the following message to all members: ‘The right-
ful resistance initiated in Izmir in order to protest the arbitrary price increases
and unfair practices of foreign producers is supported with all means’. The
boycott was reinforced with protests and events all around the country, such
as members of the Socialist Party burning exported cigarettes and spilling
cola down in the streets, and consumer associations distributing ice sherbets
for free in open markets with the slogan ‘Farewell to Cola, hello to sherbet’
(Cumhuriyet, 1990). The boycott ended within a few weeks, as the companies
agreed to decrease their prices and increase retailer margins.
In less than a decade, Turkey entered a new phase of consumer boycotts,
which were mainly sparked due to political tensions. In 1998, a boycott
against Italian companies and products was triggered shortly after PKK
leader Abdullah Ocalan fled from Syria to Italy and was taken into police
custody in Rome, but the extradition demand by the Turkish Government was
not accepted by the Italian Government. While the political tension between
two countries escalated, several trade unions and associations, including
The Union of Chambers and Commodity Exchanges of Turkey (TOBB),
launched a boycott of Italian products. The boycott included raising con-
sumer awareness for not buying products and brands of Italian origin, the
decision of the Turkish Federation of Merchants and Retailers, representing
1,50,000 stores, ‘not to sell’ Italian products, and TÜRSAB Association of
Turkish Travel Agencies to cancel all tourist tours to Italy. The result was an
economic loss of USD 1.2 billion on the Italian side in the first three months
of 1999; decreased passenger traffic between Turkey and Italy to a point that
Turkish Airlines and Alitalia stopped Istanbul–Rome flights for about three
months due to ‘no passengers’ (Vatan, 2006); and even Turkish companies
422 MELIKE DEMIRBAG-KAPLAN

with Italian-sounding brand names suffered harshly due to the boycott. For
instance, Bellona, a furniture company, had to make nation-wide newspaper
announcements, stating that it was founded on 100% Turkish capital, high-
lighting that ‘they are not an Italian firm as some may think, and never had
any links to any Italian firm or capital’, although the brand name may sound
so. Similarly, Italian–Turkish partnerships such as Türk-Pirelli Tires empha-
sised the fact in full-page ads in national newspapers that the protests actually
harmed Turkish workers employed by Pirelli and the Turkish economy in
general (Öğüt, 2011).
The impact of the Italian boycott was profound, leading to a fresh under-
standing in the collective memory that most international political crises
should be responded with consumer boycotts of the firms and products
of the target country beyond other legal and political measures. This, for
instance, became apparent every time the French Senate approved a draft law
criminalising the denial of the Armenian Genocide, leading to boycott calls
in 2001, 2006 and 2011 (Asbarez, 2001; Hürriyet, 2006; Hurriyet Daily News,
2011). Another frequent target for boycotts was Israeli firms, or the brands
that have apparent or alleged Jewish capital, following the escalation of ten-
sion between Turkey and Israel after events such as the Mavi Marmara inci-
dent in 2010 (Haberler.com, 2011), and the Israeli offensive against Gaza in
2014 (Daily Sabah, 2014). In all these boycotts, nationalistic and/or religious
character was quite intense, most of the time serving to consumers’ need to
express their ethno-religious identity. In the same manner, the boycotts were
generally short-lived, rather offering an avenue for consumers to outburst
their anger, as well as strengthening their belongingness with the social group
that defines itself with a particular political, religious or patriotic ideology.
Boycotting as an expression of socio-political identity developed into a new
form as a consequence of societal polarisation during the Gezi Events. The
events started as a peaceful sit-in at Istanbul’s Gezi Park in late May 2013 by a
handful of activists who demonstrated against an urban redevelopment plan
launched by the government. However, following the brutal police crackdown
on activists, it mushroomed into huge nation-wide protests against the ruling
party as well as its ideology and supporters. Boycotts and protests against
firms and brands were an integral part of the events, and followed a two-way
course: On the one side, there were protesters who boycotted firms and organ-
isations that refrained from helping activists or supporting Gezi, and on the
other, government supporters who boycotted the brands that were perceived
to be aligned with Gezi protesters. Boycotted firms broadly fell into any of
the following three categories. The first category included cafés, restaurants
or stores that were located on the sites of clashes, particularly Taksim area,
When Delights Turn Bitter: Consumer Resistance in Turkey 423

and either helped or refused to help the protestors. In this context, Starbucks,
Mado Patisserie and Kızılkayalar Hamburger Kiosk became the target of
protests and boycotts, as they did not let in injured protesters, or refused to
sell them food and drinks. On the other hand, Divan Hotel was boycotted by
government supporters because it provided the protesters a safe harbour. The
second category consisted of media companies, such as CNN Turk, NTV
and Haberturk, which received negative reaction for limited coverage of the
events, and perceived to be underrating the seriousness of Gezi. Finally, the
third category included companies which were not directly involved in pro-
tests; however, the public perceived that they either supported the government
or the protesters. Doğuş Holding, for instance, with all its affiliated compa-
nies, was boycotted by Gezi supporters, while Koc Holding and companies
became the target of protests of the ruling party and its followers. For both
groups, there appeared long lists of companies to be boycotted, which were
mostly circulated via social media. Some brands even appeared in both the
lists (Cengiz, 2014). While the economic impact of these boycotts is not fully
known, some recent studies have shown that the brand image of boycotted
companies was seriously damaged, leading to a decline in consumer prefer-
ences (Karaca, 2016; Okan & Yalman, 2013).
Besides the boycott that was strengthened by political identity, a variety
of other sensitivities also lead to consumer resistance in Turkey. For exam-
ple, sexist expressions that companies use in their marketing messages have
recently become a major cause of protests and boycotts. In 2015, Doğadan,
an herbal tea company, received a hostile reaction from consumers for their
advertising campaign titled as ‘What do women want?’, portraying women as
ever-complaining, conspicuously consuming and over-demanding individu-
als. The company immediately became the target of boycotts in the social
media, and had to withdraw the campaign with a public apology (Radikal,
2015). Koton’s depiction of children in sexy outfits outburst a similar anger in
2014 (Kıvanç, 2014). Again, very recently, Oysho, a Spanish clothing retailer
that is well known with its lingerie line in Turkey, was caught between two
fires when a group of consumers taut the company when the staff allowed
stray cats in the stores during cold winter nights. Photos of cats sleeping on
garments began to circulate in social media, unexpectedly giving rise to a
harsh reactions by others, accusing the company for not caring about the
hygiene and health of their consumers. A short-lived social media battle was
contested between the two groups, one protesting Oysho, using the hashtag
#oyshodanalışverişyapmıyoruz (We are not buying from Oysho), and the
other group praising the company and protesting the consumers who accused
the company (http://www.patiliyo.com/oysho-kedileri/ (2017)).
424 MELIKE DEMIRBAG-KAPLAN

Apart from boycotts, other forms of active rebellion are also on rise in
Turkey, particularly after Gezi, which broadened the understanding of the
power of alternative media in enhancing the accessibility of shocking repre-
sentations of the consumptionscape. Examples of culture-jamming have been
present ever since, such as #FakyuNükleer, which is a play on the billboard
advertisements of Akkuyu Nuclear Plant, the centre of a hot debate, the first
of its kind in Turkey.
As clearly seen in these examples, the advancement of Web 2.0 tools
increases the prevalence and impact of active rebellion practices, in a vein
similar to global experience (Kozinets & Handelman, 1998). Nevertheless, it
should also be noted that these boycotts and protests are generally short-lived
and far from inflicting an economic loss on the target company. In addition,
overall participation to such boycotts is limited, as a study by Çarkoğlu and
Kalaycıoğlu (2015) revealed that 68% of Turkish consumers had never par-
ticipated in a protest or boycott against a company for either political, ethical
or environmental reasons, and would not do so as they do not believe in the
effectiveness of such practices.
This being said, increasing connectedness of Turkish consumers with the
world has the potential to enhance rather passive or individual forms of con-
sumer resistance if not active rebellion. In this context, minimisation behav-
iours are growing steadily, most of the time organised around social network
platforms (Erdoğmuş & Karapınar, 2015). For instance, Facebook groups on
voluntary simplicity, permaculture workshops and agro-ecotourism, by which
the volunteers can spend some time to contribute and experience a ‘simpler’
and ‘productive’ life are increasing day by day. Some examples include https://
www.facebook.com/sadeyasamgrubu and TA-TU-TA Ecologic Farmyard
Visits Network (www.tatuta.org). These activities are generally organised by
associations that are devoted to anti-consumerist lifestyles, such as Yeryüzü
Association and Buğday Association for Ecological Living. DIY networks
are also becoming very popular, again utilising social media networks for
sharing information, communicating with members and organising activities
and meetings. Of such networks, DIY Türkiye is very active on Facebook and
YouTube, and Makers Türkiye provides a vast network for students, teachers,
designers, engineers and other interested parties to come together to share
DIY projects, as well as organising workshops, training programmes, confer-
ences, fairs and contests, with around 50,000 followers on Facebook.
Finally, avoidance behaviours that represent consumer resistance on a
rather individual scope are also commonplace, although research on these
behaviours is limited in the Turkish context. Of those available, reasons
behind brand avoidance in Turkey emerges as the focus, and the studies
When Delights Turn Bitter: Consumer Resistance in Turkey 425

conclude that the dynamics stated in the present literature similarly prevail
for Turkish consumers (e.g. Demirbağ-Kaplan, Atik, & Gürkaynak, 2011;
Sandıkcı & Ekici, 2009; Ventura, 2013).

DISCUSSION
This chapter addresses consumer resistance in the Turkish context by draw-
ing from a variety of cases that happened in the recent decades. The cases
presented in this chapter were intended to provide an outlook on the ante-
cedents, acts and outcomes of resistant behaviour in an emerging economy,
and to explore as to what extend these are similar to the experiences of the
West, which has been surveyed to a great extent over the past few years. In the
light of these cases, several important remarks can be made with regard to
consumer resistance in Turkey.
First, it is important to note that resistant practices in Turkey as a reaction
to escape from the dominance of the market are almost nonexistent before
the 1980s, with records of only a few instances in this respect. This may be
attributed to several reasons, including a period of harsh economic and social
turmoil that the country endured after the foundation of the Republic in 1923,
and the choice of a state-led close economy until the mid-1980s. The transfor-
mation of the economic model into a market-oriented economy by this time
not only increased the availability of Western goods and services but also
played a role in enhancing Western-style consumption and consumer roles.
Therefore, it is not surprising that practices of consumer resistance began to
pace around this period, particularly in the form of consumer boycotts.
Another finding is that consumer resistance bore a character that devel-
oped on patriotic and religious identities, which most of the time run parallel
to political orientation. In this context, it was collectivist sensitivities that
rather triggered participation in resistant behaviours. Again, this ties well
into the highly collectivist culture of Turkey, which has been lagging behind
its Western counterparts in democratisation, liberalisation and individualisa-
tion processes. The prompting role of unions and associations in these cases
might also be considered in a similar vein. At this point, the Gezi Events
of 2013 might be considered a milestone, which highlighted the demands of
Westernised young masses to become a part of the say in Turkey’s future,
including their roles in the Turkish consumptionscape, which were assumed
but designed to be rather passive until then. Along with the capabilities gen-
erated by the new media, consumer resistance took a new turn after this
event in both character, i.e. as an avenue of expressing more individualistic
426 MELIKE DEMIRBAG-KAPLAN

sensitivities, values and lifestyles, and form, i.e. new ways of resisting the mar-
ketplace besides consumer boycotts. The impact of social media networks
became quite profound in creating awareness and promoting alternative con-
sumer identities, as well as shifting power from the market to consumers in
equipping them with novel methods to resist market dominance, such as vol-
untarily simplistic lifestyles, DIY networks, culture-jamming and brandalism
(brand vandalism).
On a final note, it should be mentioned that research on consumer resist-
ance in Turkey lags behind what actually happens in the market. A keyword
search on Scopus, utilising consumer resistance, boycott, animosity and
avoidance and ‘Turkey’ gave only six results, of which three were on boycott-
ing behaviour, in addition to 11 papers that focussed on ‘consumer ethnocen-
trism’ and ‘Turkey’. The results are discouragingly similar on the Dissertation
Database of Turkish Higher Education Council (YÖK Tez Merkezi), with
only two graduate theses and a PhD dissertation on the topic, which all
were written after 2016. Nevertheless, this also signifies the existence of vast
research frontiers that could be explored in the future studies with regard to
dynamics and consequences of consumer resistance in Turkey.

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CHAPTER 9.2
THE MYSTIQUE OF LUXURY
PRODUCTS

Meltem Kiygi-Calli

ABSTRACT

The spending capacity of the middle-income class increases with growing

economies. With this increase, luxury goods are not only consumed by rich
people alone. For this reason, luxury brands are expanding their target
population and enriching their products and services accordingly. Thus,
the luxury market which addresses the middle- and upper-middle-income
groups is changing and its importance is increasing. In this chapter, the
definition of luxury, the classification of luxury goods, the requirements of
the luxury marketing mix (product, price, distribution and promotion) and
applied strategies are examined. This chapter also covers how luxury prod-
ucts have authentic features, premium and masstige brands, fake luxury
products that are the exact copies of original luxury brands, and how and
why this fake luxury market grows. At the end of the chapter, the luxury
market in Turkey, which has been growing rapidly, especially in recent
years, is examined in detail and all the features of the market are presented.
It is expected that this market will continue to grow in the future, as a large

Marketing Management in Turkey, 431–453

Copyright © 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-78714-557-320181028
431
432 MELTEM KIYGI-CALLI

number of tourists from nearby regions, Central Asia and Arab countries
come to Turkey to buy luxury branded products and services.
Keywords: Luxury products; luxury marketing mix; counterfeiting;
premium products; masstige products

INTRODUCTION
Fine Feathers Make Fine Birds (English proverb).

Compared to many other industries, the luxury industry is a matchless sec-

tor. This industry is expected to keep growing due to the dramatic economic
developments in emerging markets. For hundreds of years, all over the world,
people have satisfied themselves by owning appealing stuff. Consequently,
luxury consumption has been a question of debate and dispute.
The word ‘luxury’ has been defined in various ways in previous studies.
The Latin origin of the word is ‘luxus’ and its meaning can be defined as
‘exuberance, superabundance, sumptuousness and soft living.’ Vigneron and
Johnson (1999) defined this word as the top level of high-quality brands which
have diversified values in different categories such as physical and physiologi-
cal. From another point of view, 95% of luxury products are accessible for
only 5% of the community and these products are produced in limited quan-
tities (Savitha & Sathyanarayan, 2014). In this regard, luxury goods actuate
differences in the community.
Heine’s (2012) basic definition of luxury is ‘Luxury is anything that is
desirable and more than necessary and ordinary’. The indication of a clear
distinction between what is necessary and what is already a luxury is very dif-
ficult. Owing to the fact that this indication depends on consumer evaluations
and the economic, cultural and social environments in which consumers live.
Therefore, these factors might result in a subjective indication of the bound-
ary between the necessary product and the luxury product. Luxury is also a
relative term. This means that while a branded car Volkswagen could be seen
as a luxury car for a student, a Mercedes might be an ordinary car for a rich
person (Heine, 2012). Thus, there are ongoing discussions on the exact defini-
tion of ‘luxury’ and consequently there is no consensus on its definition in
the literature.
The Mystique of Luxury Products 433

HSBC (2012) published a document named ‘Consumer in 2050’, which

stated that spending on luxury products is expected to increase in countries
which have growing economies because the population with average income
will have higher spending capacity. The greatest share of luxury expenses is
taken by industries, including entertainment, technology, cultural activities,
food and tourism. ‘Consumer in 2050’ contains some long-term suggestions
and makes various predictions for industries which are anticipated to increase
their luxury expenses. Leisure activities such as vacations, eating, travelling
and hedonism are anticipated to be linked with luxury in the future.
Nowadays, wealthy people are not the only consumers of luxury prod-
ucts. There are many significant elements which lead to the actual increase
of luxury consumption. One of the most important ones is the promotion of
luxury products to middle- and upper-middle-income population (Savitha &
Sathyanarayan, 2014). The numbers from the luxury consumption markets in
Turkey and the rest of the world predict a tendency to increase in the amount
of luxury consumption made by the upper-middle-income population, and
also some variations in the consumption behaviours of luxury product con-
sumers. Many luxury firms have extended their product ranges (e.g. cosmet-
ics, perfumes) and also expanded their brand portfolios to become more
accessible (Truong, McColl, & Kitchen, 2009).
In this chapter, the definition and types of luxuries are discussed. In addi-
tion, marketing mix elements of luxury products are investigated. Moreover,
authenticity of luxury, premium and masstige brands is discussed in detail.
Furthermore, counterfeiting in the luxury industry is also examined. In addi-
tion to these subjects, the luxury market in Turkey is discussed. How the digi-
tal age affects the production of luxury products and consumption habits is
also explored in this chapter.

LUXURY PRODUCTS
The definition of luxury products covers different products. Luxury products
are differentiated according to market segments as luxury products, services
and real estate, branded versus unbranded luxury products, private versus
public luxury products, B2B versus B2C luxury products, founder-independ-
ent versus founder-dependent luxury products, uni-regional versus multi-
regional luxury products and contemporary luxury products versus luxury
antiquities (Heine, 2012).
434 MELTEM KIYGI-CALLI

Luxury products, services and real estate: Luxury services and real estate
are distinct luxury segments.
Unbranded luxury products: These are products which are made by crafts-
men. This chapter considers only branded luxury products.
Private versus public luxury products: Most of the time the term ‘luxury
product’ refers to private luxury, which is owned by a person or a private
organisation. Public luxury may refer to national monuments or alter pieces
(Heine, 2012).
B2B versus B2C luxury products: B2C luxury products refer to personal
luxury products which are used by end consumers in their daily life. There
are also luxury-specialised suppliers who supply industrial products to firms.
Founder-independent versus founder-dependent luxury products: The manu-
facturers of luxury products should possess a distinct brand personality. An
artist could become a brand as he or she may only create founder-dependent
products. The luxury art market is a distinct luxury segment. This is also true
for other industry segments such as (fashion) designer products.
Uni-regional versus multi-regional luxury products: Uni-regional luxury
products are only available in specific regions.
Contemporary luxury products versus luxury antiquities: Contemporary
luxury products are new products. An antique car might be an example of
luxury antiquities.
In addition, luxury products are also categorised as personal versus impersonal
luxury products, publicly versus privately consumed luxury products, accessible
versus exceptional luxury products, unique pieces, limited editions, expanded-
diffusion products and conspicuous versus understated luxury products.
Personal versus impersonal luxury products: Consumers use personal luxury
products to manage their self-image and build up a personal connection with
these products (Heine, 2012). Examples of personal luxury products might
be glasses and watches. Examples of impersonal luxury products might be
bathroom equipment and garden furnishing.
Publicly versus privately consumed luxury products: Publicly consumed
products such as cars are visible to others. On the other hand, products such
as home entertainment systems are privately consumed products because
other people cannot see them unless the owner of the product permits it.
Accessible versus exceptional luxury products: Some luxury products, such
as perfumes or high-end cosmetics, can be affordable for many income lev-
els. These kinds of products are called accessible luxury products. But some
luxury products are privileged to a small number of people.
Unique pieces, limited editions, expanded-diffusion products: The products
in these categories are the nirvana of the luxury segment. These products are
The Mystique of Luxury Products 435

regarded as masterpieces of an artist due to their uniqueness and perfection.

The French word ‘griffe’ is used to describe these products because of their
art masterpiece characteristics. The biggest names of haute couture clothing
such as Chanel and Christian Dior can be regarded as specific examples of
these types of products (Kapferer, 2001). Highly limited-edition products are
also very close to the ideal of griffe products. They are not unique but their
rarity brings them close to the ideal level. Their production processes deter-
mine their value and rareness. These luxury products are produced through
a high degree of handwork and highly skilled craftsmanship. Gucci Bamboo
bags and prêt-à-porter in the fashion segment are specific examples of these
limited-diffusion products (Heine, 2012). There are some luxury products
that have a similar production process to mass-market serial production but
are produced at lower volumes. Dolce & Gabbana jeans and Porsche automo-
biles are specific examples of these products (Heine, 2012).
Conspicuous versus understated luxury products: Luxury products can be
categorised according to their degree of conspicuousness. Some producers
use symbols of wealth in their products such as big logos or other specifica-
tions. These wealth symbols justify the high prices set by the producers and
urge consumers to buy the expensive product with the wealth symbol despite
there being a higher quality complementary product without wealth symbols
at better prices in the market.
Luxury products have their matchless characteristics and they are clas-
sified in different ways. In the literature, some studies suggest that products
are categorised into three distinctive types according to their availability by
considering the price and production quantities. These are available luxury
goods, mid-level luxury goods and unavailable luxury goods.
Available luxury products: These luxury goods are low priced and available
for most of the community.
Mid-level luxury products: Mid-level luxury goods are more difficult to
afford for customers with a limited budget. Only available for a certain share
of population.
Unavailable luxury products: These products are produced using special
processes and their prices are high. Therefore, they can only be bought by
upper-class consumers.
The products with very high prices can be afforded only by the upper-
class consumers and these products specifically provide social prestige to
their owners (Vickers & Renand, 2003). Concerning the levels of income, the
group with the highest income comprises individuals who spend the highest
amounts on luxury products. Wealthy consumers have the spending power
to buy luxury products and use these products actively in their daily lives.
436 MELTEM KIYGI-CALLI

Consumers who have lower spending power can afford to buy fewer luxury
products for purposes such as using the product and being recognised by
wealthy people (Husic & Cicic, 2009).

THE LUXURY MARKETING MIX

Marketing management of luxury trademarks requires particular mecha-
nisms unlike the ones used for the mass market. The usual marketing funda-
mentals are not applicable for luxury brands. The luxury strategy aims at high
prices, high costs, fine work and limited distribution, less effort on promotion
and simple advertising. Luxury goods can only be expensive. The manufac-
turing of these products must occur at an elevated standard, including both
the raw material quality and workmanship quality. Another important fac-
tor in selling luxury products is indisputable prices. The aim of the pricing
is mainly to give the most expensive acceptable price so that the customer
is willing to pay for the item. It must be remembered that the difference in
luxury products is their unavailability to the mid-class buyer. Higher supply
of the good both contradicts the consideration of luxury and contravenes the
demand of consumers. Price can be considered an invisible wall that separates
the undesired customers of luxury products from the targeted customers. The
control of luxury products includes certain approaches such as high prices,
low effort on promotion or limited distribution to lower the availability of the
good. The consumer needs to expend much effort to get the luxury product.
Since the customers desire to expend effort, the luxury brand must appeal to
them in some way. That brand must have an effective personality. The market-
ing mix elements are discussed in detail below.

Product Policy

Luxury products have to meet consumer expectations in order to be successful

in the market. In order to understand consumer expectations, luxury brands
have to employ market research. The perceived quality of the products is very
important for luxury products. The quality of the products is reinforced by
warranty and packaging (Kotler, Keller, Brady, Goodman, & Hansen, 2009).
Hence, the packaging is one of the instruments used in communication and is
very important for luxury brands. In order to have a perception of high quality
for luxury products or brands, firms have to invest in innovation and creativity.
The Mystique of Luxury Products 437

In the market, the marketing strategies for luxury goods are specified depend-
ing on the segment. One of these strategies is improvement of iconic products,
which typify the brand signature (Fionda & Moore, 2009). Chanel N°5 perfume
is one example of iconic products (Heine, 2012). These are undeniably real works
of art. The logic behind the improvement of iconic products is to certify their per-
fection and to improve the luxury brand image of the company, which also trig-
gers the consumer’s willingness to buy other products that the company supplies.
According to Heine (2012), ‘Luxury brands are regarded as images in the
minds of consumers that comprise associations about a high level of price,
quality, aesthetics, rarity, extraordinariness and a high degree of non-functional
associations’. Companies build their brands to differentiate their products in
the eyes of targeted consumers by creating an image in their minds that identi-
fies the product. A luxury brand should be evaluated through characteristics
such as price, quality, aesthetics, rarity, extraordinariness and symbolism.

Price Policy

Setting high prices as a marketing method makes the brand to be thought

of as being rare. Thus, discounts may damage the image of luxury brands
(Keller, 2009). Pricing of products is one of the main parameters that indi-
cates the quality and prestige (Keller, 2009). Therefore, luxury brands have to
consider that discounts may increase their sales in the short term but decrease
them in the long term. As a result, it is suggested to increase prices every year
to achieve an increase in demand (Kapferer & Bastien, 2009).
Vigneron and Johnson (1999) categorised luxury products and found that
the interests of hedonists and perfectionists mostly focus on the satisfaction
from the use of these kinds of products, and they also do not consider price
to be as important as the quality, the features and the performance of the
product. These consumers have a distinct idea of what they desire, and they
consider price as an indicator of quality. The Veblen effect, snob effect and
bandwagon effect are obvious when considering consumers who take price
as the most significant factor. They perceive higher price as an indicator of
higher prestige. They often buy scarce products so that they can underline
their status. The impact of the above-mentioned effects on consumers is
explained by Vigneron and Johnson (1999) as follows:

The Veblen effect – perceived conspicuous value. The main purpose of

Veblenian consumers is to impress other people. Therefore, they consider
price to be important, thinking that it is a proof of prestige.
438 MELTEM KIYGI-CALLI

The snob effect – perceived unique value. Snob consumers consider price as
an indicator of uniqueness and prevent using popular brands to experi-
ment with inner-directed consumption.
The bandwagon effect – perceived social value. Compared with snob con-
sumers, bandwagon consumers consider price as a less important factor for
indicating prestige, but they give more importance to the effect they have
on other people while consuming prestige products.
The hedonic effect – perceived emotional value. The main aims of Hedonist
consumers are their own emotions and satisfaction. Thus, they will attach
less importance to price for indicating prestige.
The perfectionism effect – perceived quality value. Perfectionist consumers
trust their own thoughts on the quality of products, and may consider price
as another indicator of quality.

Luxury brands take advantage of the Veblen and snob effect: the more
expensive the price, the better the Veblen customers can show their wealth
and the better snobs can show off their status because only a small group of
people have the spending power to buy these products (Vigneron & Johnson,
1999). Furthermore, this method triggers consumers into buying quickly.
It also guarantees the durableness and value of luxury goods. For exam-
ple, for porcelain and wristwatches, like several other luxury product types,
it is known that the value of the product increases with time. That makes
some customers buy these goods primarily as an investment. Alongside their
real price, it is really important for brands to associate their products with
very high prices in the minds of customers. Thus, they put some really very
expensive products on the market. These expensive products are the ones
with the highest prices in their class, and in this way they attract some atten-
tion and respect. Nevertheless, for many luxury brands, the highest share of
revenue comes from less expensive products such as accessories (Kapferer &
Bastien, 2009).
The superlative pricing method has some disadvantages as well.
Firstly, high prices make a product economically unavailable for large
numbers of consumers and there is also a level that makes the product
inaccessible for almost everyone. Besides, prices are also associated with
real product excellence. If the price becomes illogical for the value of
the product, the brand becomes more attractive for Veblen and snob
customers. But this attractiveness does not provide a loyal customer
base, because the high pricing method can always be copied (Kapferer &
Bastien, 2009).
The Mystique of Luxury Products 439

Distribution Policy

Distribution principles have a great effect on the rareness dimension. Luxury

brands manage their accessibility and have discriminating distribution
(Fionda & Moore, 2009; Keller, 2009). The basic principle behind luxury
distribution also suggests that buying luxury goods should be difficult for
consumers (Kapferer & Bastien, 2009). This basic policy also recommends
that luxury shops should not be opened everywhere but instead only in repu-
table shopping areas, possibly together with other luxury brands (Berthon,
Pitt, Parent, & Berthon, 2009). In addition, customers have to overcome
time-related boundaries: if a product is considered to be rare, then it is only
acceptable if it cannot be consumed immediately.
There are waiting lists for several luxury products such as Hermés
Kelly Bags (Heine, 2012). With this system, even loyal consumers have
to be patient for nearly a year before they get their order delivered,
which increases their appetite and excitement of expectation (Nueono &
Quelch, 1998). In addition to its effect on rarity, specific distribution also
focusses on developing symbolic benefits. The distribution plan guaran-
tees enjoyable shopping experiences by providing upper-class services
(Keller, 2009), and the aesthetics of luxury goods are strongly dependent
on the way they are presented.
Wholesale selling is still the most significant selling channel in the personal
luxury products market (D’Arpizio, Levato, Zito, & De Montgolfier, 2015).
According to Bain and Company’s report (D’Arpizio et al., 2015), wholesale
captures 66% of the total luxury market. On the other hand, the share of
retail sales continues to increase. The share of online sales of luxury brands is
decreasing overall, with a very inconsistent performance: The biggest brands
are performing better with established direct online and omni-channel plat-
forms but many brands still fall behind, especially European brands. The per-
formance of airport retail sales has also increased to luxury globe-trotters. In
2015, it represented 6% of the global luxury market.

Communication Policy

Different luxury product producers believe that the consumers of these prod-
ucts are from the upper-income classes. Hence, the managerial practice of
luxury product companies is mainly based on this assumption (Dubois &
Duquesne, 1993). For example, media planning gives primacy to ‘luxury
440 MELTEM KIYGI-CALLI

store’ publications (e.g. Vogue) (Husic & Cicic, 2009). Additionally, their
stores are placed in first-class locations.
Unlike mass-market brands, an increase in the awareness of luxury brands
does not necessarily lead to growth but rather to a decrease in demand.
Increasing awareness attracts bandwagon consumers who buy luxury prod-
ucts primarily because their role models do so. But this situation disturbs
the original consumers who buy these products to separate themselves from
other consumers (Leibenstein, 1950). Because of this reason, making invest-
ments in brand awareness can result in reduction of product benefits for indi-
vidualistic clients. There are more appropriate communication methods for
reputable brands such as direct marketing and particularly private activities.
However, bulk mail or television advertisements are not favourable marketing
methods for reputable brands (Belz, 1994).
On the other hand, major brands try to achieve maximum brand aware-
ness beyond their target group. To do this, they apply more widely used and
even aggressive methods for communication (Kapferer & Bastien, 2009).
Advertising in magazines and sponsoring can be counted as typical market-
ing activities of star brands. Several luxury fashion brands consider catwalk
shows as an important communication tool for promoting the prestige of
the brand. Celebrity endorsement and public relations are some of the other
general communication tools (Fionda & Moore, 2009). For instance, Italian
luxury brand Versace used Madonna, Demi Moore and Halle Berry in its
print advertisements (Okonkwo, 2006).

AUTHENTICITY IN THE LUXURY INDUSTRY

The luxury industry is becoming more professional, and this reduces the
authenticity of luxury brands. However, marketing academics consider
authenticity as an important parameter for clients in developed societies
(Leigh, Peters, & Shelton, 2006), because these clients desire to get away from
commercialisation (Grayson & Martinec, 2004) and they seek meaning and
‘real’ experiences to escape instability, increasingly open societies and the
recognised rise in corporate manipulation and shiftiness (Beverland, 2005).
Thus, ensuring authenticity is a major difficulty facing luxury brands in the
future.
The desire to escape commercialisation results in the increasing impor-
tance of authenticity (Leigh et al., 2006). Therefore, providing authentic-
ity is one of the challenges of luxury brands. Authenticity is a perception
The Mystique of Luxury Products 441

(Heine, Phan, & Atwal, 2016). The factors that may affect the perception of
authenticity may change from culture to culture.
There are varied viewpoints regarding authenticity. These are ‘pure
authenticity’, ‘approximate authenticity’ and ‘moral authenticity’. Pure
authenticity includes ‘an ongoing loyalty to traditions and the place of
origin’ (Beverland et al., 2008). An example of this would be a company
that started producing a product a long time ago, and through protecting
its traditions ensures that the product has remained basically the same as
its original form. In approximate authenticity, the condition rendering an
object authentic is ‘if it resembles historical significations’, which is based
on the clients’ memories of how things ought to be (Beverland et al., 2008).
An example of approximate authenticity is where a company which had
started producing a product a long time ago continues its traditions, devel-
ops the product and improves production procedures but nonetheless the
product sold today still resembles the original. In moral authenticity, cli-
ents who are searching for moral authenticity are more concerned about
purposes, means and ends rather than traditions in brands that are genu-
ine in their intentions. These companies create products not just to satisfy
customer desires or for financial reasons but because they have an intimate
belief in what they do. They are motivated by ambitious creators who are
involved in every possibility and love their jobs. Consequently, this results
in limited production. Therefore, the contrast of moral authenticity must be
with mass production. For instance, Château d’Yquem, which is located in
Bordeaux, is one of the world’s most famous vineyards. Château d’Yquem
is a luxury wine brand. The statement ‘Château d’Yquem Lur-Saluces’ is
written on every bottle of Yquem (Heine & Petersen, 2015).

PREMIUM AND MASSTIGE BRANDS

The pricing of premium products is determined so as to be in the highest
or close to the highest in their category. But market customers with aver-
age income can still pay for them, mainly because they are low-ticket prod-
ucts. Mass prestige or masstige goods are placed at ‘a point between mass
and class’: Researchers have studied some adjustment strategies for masstige
(Silverstein & Fiske, 2003), which point out methods uniting high quality
with affordable price premiums to increase the sales to average-class clients
(Truong et al., 2009). From time to time, they use terms such as ‘democratisa-
tion of luxury’ or ‘bandwagon luxury consumption’ to name these methods
442 MELTEM KIYGI-CALLI

(Kastanakis & Balabanis, 2012). They define masstige products as ‘premium

but attainable’ products.
Masstige strategies usually bank on logo-typed reasonably priced
accessories (e.g. Hermès), ‘junior’ product ranges which are produced on
a bigger scale and sold for fashion purposes (e.g. Marc by Marc Jacobs)
or downscale extensions (Nueono & Quelch, 1998; Parguel, Delécolle, &
Valette-Florence, 2016).
Some researchers claim that masstige strategies can soften the effect of
brands’ image (Silverstein & Fiske, 2003; Truong et al., 2009), particularly
when prestige brands are compared with luxury brands and depending on the
product category (Dall’Olmo Riley et al., 2013).
Average-class consumers are searching for higher quality and taste, and
their numbers are increasing. Luxury products are produced not only for the
upper-class consumers but also for mass-market consumers (Silverstein &
Fiske, 2003). This is also the case in Turkey. Due to the increased numbers
of average-class consumers, luxury brands sell several masstige products to
these consumers.

COUNTERFEITING IN THE LUXURY INDUSTRY

Penz and Stöttinger (2005) define counterfeiting as ‘the production and sale
of fake products, which seem identical to the original product’. The trade-
mark is registered to another party and it violates the rights of the company
which has the original trademark (Chaudhry & Walsh, 1996). Although the
demand for counterfeit luxury brands is usually referred to as ‘unethical’,
there is an increasing demand for such products. The buyers of these fake
products usually buy these products knowing that they are fakes. Therefore,
they are not defrauded when buying them. The terminology of deceptive and
non-deceptive counterfeits was specified by Grossman and Shapiro (1988).
If the consumer of the product knows that they are purchasing fakes, this
is called non-deceptive counterfeit. According to research, most counterfeit
products are sold in a non-deceptive way. Buyers can understand that the
product is fake due to significantly low quality, low price and a non-author-
ised outlet. It is important to understand extensively the reasons behind the
informed buying of counterfeits (Ryan & Deci, 2000).
Sometimes it is possible for branded luxury products to be sold decep-
tively. Their quality may be very good in some instances (Gentry, Putrevu, &
Shultz II, 2002). These may be distributed by legitimate channels or by
The Mystique of Luxury Products 443

disrespectable distributors. As a matter of fact, the aspects of the counterfeit

version can be very close to the original.
Most people who purchase fake products would not have purchased the
products if they had to pay full price. Nonetheless, counterfeit products make
the original brand’s image more accessible (Green & Bruce, 1997), and they
decrease the distinctive features of the original product (Berman, 2008).
These are the commonly discussed issues about counterfeit products.
The proliferation of counterfeit products can also influence the perception
that the brand is rare. But this is a two-sided situation, because these products
may also increase the reliability of the original brand by completely being a
prestigious luxury product (Barnett, 2005). Bian and Veloutsou (2007) noted
that counterfeiting can be considered an indicator of success of the original
brand, because counterfeits spread only if the original brand is well estab-
lished, well known, liked and respected.
The Organization for Economic Cooperation and Development (OECD,
2016) has estimated the global trade in counterfeit goods to be worth approx-
imately $500 billion a year. Original brand manufacturers struggle to eradi-
cate counterfeit products. However, they cannot be successful without taking
into account the consumer demand. One of the most important factors that
leads to an increase in counterfeit production is the demand for counterfeits,
especially in the luxury products market. Consumer demand for counterfeit
luxury products might be viewed as unethical; however, the demand is grow-
ing. Consumers engage with original brands and counterfeits via new media
and the Internet. These channels are new distribution channels for fake prod-
ucts to address and reach consumers. Additionally, these are low-cost distri-
bution channels which are used to reach billions of people all over the world.
Sellers of counterfeit products have shifted from traditional distribution
channels to the above-mentioned new distribution channels. Therefore, these
new channels are speeding up sales of counterfeit products. In order to fight
counterfeit products, original brand manufacturers take into account various
prevention strategies. However, some companies fear alerting consumers with
the announcements that their brand is exposed to counterfeiting, which may
affect the consumers’ brand perception negatively.
The Washington Post conducted a study entitled ‘Social media and luxury
goods counterfeit: A growing concern for government, industry and con-
sumers worldwide’. In this study, it is mentioned that there are 20,892 fake
Instagram accounts (see Fig. 1) selling counterfeit luxury goods of top brands
such as Chanel, Prada, Louis Vuitton, Fendi, Gucci, Dior, Celine, Hermes,
Rayban / Oakley, and Bvlgari (Brandbastion, 2016).
444 MELTEM KIYGI-CALLI

Fig. 1.  Account Selling Counterfeit Products. Source: Brandbastion, 2016.

LUXURY MARKET IN TURKEY

Turkey is considered to be a high-context market where consumers are espe-
cially accepting internationally successful branded products. Consumers in
high-context countries are typically averse to taking risks when selecting
products. Turkey is one of the emerging markets where most of the world’s
leading luxury brands have branches. Turkish consumers like to buy products
based on history and reputation rather than price. New products that have
no international cachet do not generally become successful in high-context
countries.
The luxury market in Turkey has been growing with increase in per capita
income, participation of women in the workforce, fashion awareness and
brand interest in Turkey. It increased by an average of 10% per annum in
the 2010–2014 period and reached the level of YTL 5.3 billion (on average,
The Mystique of Luxury Products 445

1 YTL = $0.46 in 2014) (Deloitte, 2015). Traditional luxury categories are

fashion, jewelry and tableware. There are also non-traditional categories such
as cars, hotels and travel. The biggest share in the luxury market belongs to
fashion, accessories, jewelry and watches. According to the report of Deloitte
(2015), the size of the luxury market is expected to increase by an annual
average of 7% and it will reach to YTL 7 billion by 2018 (it is forecasted
that, on average, 1 YTL = $0.31 in 2018). The fastest-growing category is
expected to be accessories, jewelry and watches. More female professionals
are paid higher in the work force and this has a significant effect on household
purchasing ability.
In Turkey, the upper-income class consists of both old money holders and
the nouveau riche, and there is a significant difference in how they spend
their money. There are many businessmen and tradesmen, land and property
owners, CEOs of top 500 companies, high-class government bureaucrats, pop
and media stars. Istanbul is the city where most of these people live, while
the remainder live in other big cities such as Ankara, Izmir, Gaziantep and
Adana. Those that live in Istanbul live in million-dollar mansions along the
shores of Bosphorus and in new suburbs. They tend to socialise in top-class
restaurants and travel abroad (Thompson, 2006).
People who have a larger cultural background are more actively involved
in high art and are interested in ballet and opera. But on the other hand,
people who are economically rich but have a poor cultural background are
the willing consumers of nightclubs. Both groups prefer French and Italian
clothing brands such as Prada, Ermenegildo Zegna and Versace. Most of
them tend to drive foreign cars or sport utility vehicles (SUVs) and are also
interested in yachting and golf (Thompson, 2006).
There are also different groups of customers such as a young, educated and
Westernised group and middle-aged urban professionals’ group who work in infor-
mation technology and finance sectors. These groups prefer luxury consumption
as long as they can pay for it. They follow foreign high-class fashion brands, prefer
famous sushi restaurants in Istanbul and travel abroad a few times each year.
Consequently, high-class urban Turkish consumers are pleased to show
their high-level sense of fashion and the flamboyant and flashy goods they
possess. This significant consumption is an important means of differenti-
ation for these diverse social groups. The consumption of famous brands,
especially foreign brands is quite high.
Turkey is a country which physically and culturally connects East and West,
and is one of the industry’s markets which has the highest growth rate. Prada,
Hermès, Louis Vuitton, Gucci, Chanel, Tod’s, Ralph Lauren and Armani have
opened two or more luxury stores in Istanbul in the last seven years (Paton, 2015).
446 MELTEM KIYGI-CALLI

Ermenegildo Zegna and Burberry also have stores in Istanbul (Paton, 2015).
Several famous names have opened their outlets in the Western-style shopping
malls: Kanyon, Akasya Mall and Zorlu Centre. In April, Soho House (see Fig. 2),
a private members’ club for creative people, with a London origin, opened an
outpost in the same place as the former American Consulate. The building is a
19th-century palazzo and has been restored to have baths, a Cowshed-brand spa
and a pool at the rooftop from where Golden Horn can be seen (Paton, 2015).
Both in and around Turkey, due to fluctuations in political and economic areas,
the tourist activities and local consumption have shown a small decrease. Many
brands had high appetite to have a footprint here. But because of these reasons,
political and economic fluctuations, are now cutting back a bit.
Istanbul is a trend-maker city full of young, educated and technologically
informed consumers. It is now a destination of many international travel-
lers. These travellers have brought many labels such as Tom Ford, Salvatore
Ferragamo, Michael Kors and Harvey Nichols to Turkey (Paton, 2015). Most
of the time, Western brands have served for powerful local companies or joint
venture operators. In 2014, boutiques in coastal resorts were badly affected

Fig. 2.  Soho House in Istanbul. Source: Baştürk, 2015.

The Mystique of Luxury Products 447

when the European Union and the United States imposed sanctions on Russia
because of its military intervention in Ukraine. But many retailers in Istanbul
said that traffic from Central Asia and the Persian Gulf has never been that
strong. Visitors from nearby regions are highly influenced by Turkish TV
series, which lead them to spend more time in Turkey. The total expendi-
ture of these visitors is about 20% of the retail consumption (Gehaney &
Bigan, 2014). For instance, between 2008 and 2010, Aşk-ı Memnu (Forbidden
Love), which is one of the most successful TV series, was broadcast in Turkey.
Afterwards, it was sold to foreign TV channels and was broadcast in different
countries such as Iran, Pakistan, Bulgaria, Israel and Ukraine (Real Estate
News Turkey, 2016).
Foreign luxury brands, just like local luxury brands, are eager to centralise in
place where the visitors are more sophisticated and where a wealthier Turkish
population is present. Many people looked to the West for imaginative inspira-
tion. But Turkish national identity and design heritage are displayed in Turkey
and there is an increasing appetite for these products. Local designers say that
craftsmanship, which contains traditional materials, colours and styles, has
caused a significant increase in demand coming from foreigners and those
closer to home. Luxury brands have become more accessible for the Turkish
upper-middle class and these people are eager to know and wear them. They
are curious and keep following trends, fashions and styles from all around the
world. Luxury tourism is another fast-growing division of the luxury industry.
In recent years, Turkey achieved a positive reputation for being an attractive
point for luxury tourism, especially for people from Arab countries.
Turks love to consume luxury products, especially in the cosmetic, fashion
and food industry. The world’s leading luxury brands struggle with counter-
feit products in the market. Maybe because of the gap in laws, the counterfeit
branded luxury product industry is also huge in Turkey. Fake products, which
are produced in Turkey, cannot be distinguished from the original branded
products. Consumption of counterfeit products means breaking the laws, and
this also increases arguments about ethical issues and concerns (Garcia-Ruiz &
Rodriguez-Lluesma, 2014).

Luxury Brands in the Digital Age

If a product is produced industrially, it can be partially customised or per-

sonalised. Even though personalisation is much more common for ‘mass-
produced’ items, cutting edge personalisation is also developing because of
the demand for ‘experiential luxury’, the change from ‘having to being’.
448 MELTEM KIYGI-CALLI

Brands are also searching for new approaches to enhance the brand–
client relationship by triggering the emotions and ‘personalising’ things. The
development of information network has increased the digital participation
of brands in order to know consumer preferences. In practice, this develop-
ment allows brands to aim communication on individual basis, to provide
privately prepared goods for each client, thus increasing customer satisfac-
tion levels and perceived product value – at least in theory. To promote digital
relationship, many high-street stores email digital receipts to their customers
and expect commitment from their customers while gaining control over cus-
tomer details.
While the consumption of traditional luxury goods and services is slowly
ending, a large number of studies claim that the world of luxurious expe-
rience has begun. Over time, it has been seen that all trends that influence
marketing, such as personalisation, environmentalism, social responsibility
industry and Internet of objects, deeply affect the luxury segment as well.
In this context, luxury brands have started to market luxury products pro-
duced by different production methods and all this directs customers towards
different consumption habits. First, there was a movement in the smart

Fig. 3.  Atasay Smart Jewelry Bracelet. Source: Atasay, 2017.

The Mystique of Luxury Products 449

watch category. Swatch, Fossil and Michael Kors cooperated with technol-
ogy giants such as Intel and Google, and launched new smart watch models
(Bloomberg, 2017). For example, Michael Kors, one of the most prominent
players in the luxury segment of bags and watches in Turkey, entered the
luxury and smart segment by embellishing models with precious stones and
using the Android Wear operating system in their products (VR World, 2015).
Turkish jewelry brand Atasay (2017) has invested in wearable technology and
brought together terms such as ‘smart, luxury and technology’ in the cat-
egories ‘Smart Jewelry’ and ‘Smart Business’. In the ‘Smart Jewelry’ product
category, there are necklaces, wristbands (see Fig. 3) and rings that contain
personal messages, videos and visuals on them. In the ‘Smart Business’ col-
lection, wrist pins and rings with personal information replace the printed
business cards (Atasay, 2017).
After smart watches, the famous pencil brand Montblanc made its pres-
ence felt in 2016 in the smart luxury segment with notebooks and pencil sets
named ‘Augmented Paper’. With the Montblanc Hub application, users can
transfer and share notes written with pencil to digital media by electromag-
netic resonance (Montblanc, 2017). Besides, products can recognise hand-
writings written in 12 different languages. In addition to these, Louis Vuitton,
which is one of the most important brands of the luxury segment, designed a
special suitcase from the lightweight yet extremely durable, high-tech material
for the hybrid vehicle BMW i8 (Louis Vuitton, 2017).

SUMMARY
Since the spending power of the middle-class population has increased, the
consumption of luxury products is expected to increase in the countries with
growing economies. In recent times, luxury goods are not only consumed by
the wealthy population but also by middle and upper-middle classes. There
are several important factors that cause actual increase in the consumption
of luxury products. Advertising luxury goods to the middle and upper-middle
class is one of the most significant factors. The data obtained from the mar-
kets of luxury consumption in Turkey and the rest of the world predict that
the luxury consumption made by upper-middle-class population tend to grow
with variations in their habits towards luxury products. Several luxury brands
have become more accessible, and therefore they have expanded their product
range (e.g. cosmetics, perfumes, etc.) and widened the brand portfolio of the
company.
450 MELTEM KIYGI-CALLI

In this chapter, definition of luxury and types of luxury products were dis-
cussed. Luxury products are differentiated according to market segments. In
addition, luxury products have their matchless characteristics and are classi-
fied in different ways. In the literature, some studies suggest that luxury prod-
ucts are categorised by considering the price and the production amount.
These categories were discussed in detail in this chapter.
The marketing management strategies of luxury consumption are differ-
ent than the marketing management strategies of mass products market. It
is not possible to apply the traditional marketing management strategies on
luxury consumption markets. In this chapter, the marketing mix elements,
which are product policy, price policy, distribution policy and communica-
tion policy, were discussed in detail. Moreover, authenticity in the luxury,
premium and masstige brands was examined. Furthermore, counterfeiting
in the luxury industry was also discussed. In addition, the luxury products
market in Turkey was examined. How the digital age affects the production
of luxury products and the consumption habits was also explored in this
chapter.
Turkey is a point of connection between East and West in both physical and
cultural ways, and its luxury market has a very high growth rate. In Turkey, with
increase in per capita income, number of working women, fashion knowledge
and brand interest, the luxury market continues to expand. Fashion, accessories,
jewelry and watches are the elements which make the highest contribution to
luxury consumption in the country. The number of female professionals having
higher income has increased, and its effect on the purchasing power of the house-
hold is substantial. The world’s major luxury brands have opened their branches
in Turkey, which is one of the growing markets. In the last seven years, luxury
brands have opened two or more new luxury shops in Istanbul. Based on these
observations, history and reputation of products are considered very important
by the Turkish consumers. In high-context countries, including Turkey, new prod-
ucts generally do not attain success if they have no international prestige.

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INDEX

above-the-line, 354, 359, 366–67, Arnould, E.J., 156, 159, 417

369, 373 assets, 23, 54, 56, 67, 70, 168, 176
academician, 18, 21, 53, 234, 290, audience, 155, 189, 207, 284, 288,
308–16, 404 301, 304, 317, 323, 330,
active rebellion, 414–15, 417–18, 424 357, 367, 369–70
activities, interests and opinions Augmented reality (AR), 26
(AIO), 116 awareness-generating ads, 311, 313–14
advertisements, 6–7, 33–34, 110,
113, 127, 154, 166, 255, behaviours
299–301, 303, 305, 307, ethical, 35–36
309–19, 337 resistant, 7, 412, 425
newspaper, 14–16, 18 unethical, 33–35
advertiser, 284, 300, 304, 317–18 below-the-line channels, 359,
advertising effects, 313–15 366–67, 369, 373
agriculture industry, 180–81, 187 Birth of Omni-Channel Marketing, 6
agriculture, 177–82, 193 Brandbastion, 444
AIO. See activities, interests and brand
opinions (AIO) avoidance, 160, 411, 414–15, 424
Airbnb, 52–53, 56, 58, 60, 66, 71 awareness, 68, 155–57, 299, 301,
alternatives, evaluation of, 124, 129–31 322, 371, 440
AMA. See American Marketing communities, 90, 92, 144, 155–57,
Association (AMA) 160–64, 390, 397
American Marketing Association communities, virtual, 155
(AMA), 33 community members, 156, 160
anti-consumption, 411–12, 414 comprehension, 390
apps, branded, 157, 248, 252, 255 consumer-generated, 155, 157
AR Experimental Marketing divorce, 160
(AREM), 26 engagement, 144–45, 148–49,
AR. See Augmented reality (AR) 157, 159
AREM. See AR Experimental iconic, 146, 158
Marketing (AREM) image, 109, 150, 157–58, 211,
Armstrong, 106, 115–16, 119–20, 213–15, 276, 290, 301, 303,
130, 277, 279, 281, 283, 336 412, 419, 423
455
456 INDEX

interactions, 156 CBR, 155, 159–60. See

likability, 157 consumer-brand
love, 144–45, 149–53, 160–62 relationships (CBR)
loyalty, 113, 144–45, 148–50, in turkey, 145
157, 159 channels, 167, 248–52, 254–60,
management, 117, 159, 256 264–65, 342, 345, 364–67,
managers, 147, 158, 360 369–70, 372, 412–13,
market leader, 311 417, 419
name, 128, 166, 207, 302, 422 digital, 277, 365
new, 301–2, 401 multiple, 248–50, 256, 259,
original, 443 262–64
passion, 160–61 Chatterjee, P., 260
perceptions, 127, 147, 317, 443 Cherrier, H., 414
personality dimensions, 118, city branding, 199, 201, 204
145, 147 co-creation, 76, 93, 97, 323, 335,
personality, 117–18, 144, 146–48, 343, 399
154 collaborative consumption, 52,
products, 151, 232, 432 72, 417
recognition, 62, 69, 71 communication, anti-brand, 412,
relationships, 5, 148, 150, 155, 415, 418
158, 300 communication channels, 247–49,
reputable, 440 275, 280, 282, 317, 345–46,
romance, 160 395
sales, 148, 171 mass, 252, 261
satisfaction, 149–50 communication tools, integrated
social, 304 marketing, 293
strategies, 293, 301 communities, 31, 53–56, 60–61, 67,
trust, 144–45, 148–50, 159 71–72, 91–92, 155–56, 158,
values, 317, 401 160–62, 332–35, 342–43,
brand image of turkey, 200, 206 356, 432, 435
branding, 117, 201, 204, 210–11, anti-brand, 157–58
213, 281, 307 companies
nation, 199, 201 development, 289, 354, 364
branding strategies, 204, 206, electricity distribution, 186–87
211–12, 214–15 foreign, 18–19, 170
businesses, international, 173–74 incumbent, 56–57, 69
business ethics, 4, 29–32, 34 international, 4, 82, 182, 354
business models, 51, 59, 67, 69, 173, private, 186
249–50 public, 186
business world, 29–30, 87, 94, 404 responsible, 40, 308–9
Index 457

sharing, 56–57, 61, 64–65 consumerism, 60, 109, 413–14

successful, 124, 404 consumer markets, 5, 276
turkish, 18, 32, 157, 167–68, 193, consumer mind, 400–401
281, 288, 421 consumer motivations, 156, 263
competition, unbranded, 169, 181, 184 consumer perceptions, 35, 317, 419
competitive advantage, 22, 94, 99, consumer products, 9, 11
167, 172, 175–76, 192, consumer protection, 34, 53
202, 209 consumer resistance, 7, 411–15,
competitive assets, 171–75, 178, 181, 417–20
183–84, 192–94 in turkey, 411–13, 415, 417,
competitive dynamics in turkey, 167, 419–21, 423
169, 171, 173, 175, 177, consumers
179, 181, 183, 185, 187, average-class, 442
189, 191, 193 bandwagon, 438, 440
competitive dynamics of turkey, ethical, 36–37
5, 168 fellow, 227, 231–33
competitive pressure, global, 174–76, individual, 90, 131, 418
178, 193 luxury product, 433
competitors, international, 171, snob, 438
173–75 upper-class, 435, 442
computers, 184–85, 277–78, 294–95 consumer’s expectations, 42, 115,
consumer activism, 39, 413 134, 436
consumer associations, 421 consumers’ perceptions, 35–36
consumer behaviour, 23, 108, 110, consumption behaviours, 37–38,
122, 124–25, 160, 237, 113–14, 119, 233, 433
248–49, 257, 389–91, 393, consumption values, 108,
399–400, 402, 404 contender, 166, 168, 176, 191
analysis of, 404 content development companies,
consumer behaviour literature, 288
149, 223 content marketing, 276, 287, 354,
consumer boycotts, 415, 418, 359, 365–69, 373
421–22, 425–27 context, turkish marketing, 4–7,
consumer–brand relationships 9, 12
(CBR), 144 context of turkey, 158, 230
consumer communities, 398 corporate social responsibility,
consumer consciousness, 399–400 29–31, 33, 35, 37–39, 41,
consumer culture, 4, 18, 225, 309 301, 317–18
consumer ethics, 4, 29–30, 34–35 counterfeiting, 432–33
consumer expectations, 115, 436 counterfeit products, 35, 447
consumer insight, 76, 86–87, 90, 106 countries,
458 INDEX

developed, 3, 5, 24, 68, 171, domestic production, 186

174–75, 184 dynamics, competitive, 168, 171, 178
developing, 23–25, 30, 42, 64, 68,
275, 411, 419 EM. See emerging markets (EMs)
high-context, 444 eMarketer, 277
Critical & Crowd Companies, emerging countries, 3–5, 167–69,
54–55 171, 173–75, 177, 193–94
cross-channel, 248, 250, 260, 265 emerging markets (EMs), 166
cross-channel information search, emerging markets, 4–5, 21–22, 24,
259, 262, 264 75–76, 168–70, 175–76,
cross-channel purchase intention, 183, 200, 249, 391–92, 394
264–65 Ensari, M. Ş., 168, 175–76, 193
cultural values, 18, 25, 108–9, 283 enterprises, 173, 182–83, 186, 398, 401
culture, European capital of, 214 entertainment, 129, 157–58, 229,
culture-jamming, 412, 415, 231, 233, 263–65, 289,
418, 424 293, 433
customer data, 257, 264, 402 environment, 11, 23, 29, 33, 37,
customer experience, 86, 251, 63–64, 72, 171, 208, 210,
255, 264 342, 413
customer involvement, 394, 399, ESOMAR. See The European
403 Society for Opinion and
customers, 56–57, 59–61, 71, 174, Marketing Research
182, 184–85, 188–89, (ESOMAR)
233–38, 250–56, 289–90, ethical problems, 31, 33, 35
322–23, 369–70, 391, ethics, 4, 20, 29–32, 36
394–400, 402–7 EU. See European Union (EU)
customer service, 156, 176, 258 The European Society for Opinion
and Marketing Research
decision-making process, 37, 109, (ESOMAR), 78
128–30, 249, 251, 255, 260, European Union (EU), 78
392, 404 evaluation, post-purchase, 129, 133–34
decision process, 33, 130, 342 events, branded, 294–95
destination marketing, 199, 201 experiential consumption, 224, 227,
development, sustainable, 37–38, 233, 237
208, 213 experiential marketing, 224, 276,
development of marketing practices 289, 293
in turkey, 9, 12, 19, 21 experiential purchases, 223, 225
Digital Environment, 4, 9 experientialism, 6, 223, 225
direct investments, foreign, 10, export, 18, 22, 176, 178–80, 184,
179–80, 182–83, 186 188, 190–91, 392
Index 459

FDI. See foreign direct investments IMC, 6, 275–76, 279–81, 283–84,

(FDIs) 291
Filli Boya brand, 301, 306–7 imports, 5, 178–79, 184–85, 187–88
Filli Boya, 6 impulse, 120, 128–29
firms, 10, 23, 29–30, 32, 34–36, 38, index, turkish Consumer
190, 398–99, 404, 422, Confidence, 132
434, 436 indie video game developers, 357
foreign direct investments (FDIs), 10 individual developers, 361
foreign products, 12, 14, 19 industrialisation, 4, 167, 178,
Fournier, 144, 148, 153, 159, 412, 182–83, 208
414–15, 419 industry
funding, 326, 356, 361, 366 emerging, 355, 373
local, 182, 354, 361
gender, 6, 41, 109, 112, 115, 129, manufacturing, 179, 182
151, 238–39 mining, 182–83
Gilovich, T., 226 paint, 301–2, 316
global brands, 18, 146, 159, 175, telecoms, 396–97
190, 254 travelling, 228
global competition, 174, 180–81, videogames, 7
187–88, 193 industry professionals, 86–87, 96, 99
pressure of, 171–72, 174, 178–79, influencer marketing, 83, 365–67,
190, 192 369, 373
global information technology integrated marketing
report, 404–6 communication, 6,
globalisation, 11–12, 20, 23, 166–68, 275–77, 279, 281, 283, 285,
171, 173, 175, 199, 287, 289, 291, 293–97
208–9, 214 international markets, 173–75, 188
governments, 11, 16, 40, 53, 67, 69, internet, 21, 60–62, 64, 131, 149,
71, 167, 169, 181, 186, 200, 155, 276–77, 279, 294–95,
202, 404–5, 422–23 391–92, 394–96
groups Ipsos research labs, 77, 94, 96–97
product-focus, 372 Ipsos turkey, 91–93
social, 109–11, 260, 422, 445
learning process, 120–21, 125,
heterogeneity, 169, 177, 184–85 127, 240
human resources, lack of, 367–69 local businesses, 171, 174–75,
191, 392
image, 111, 115, 202–3, 205, 210, local companies, 166–69, 171, 173,
275, 280, 311, 313, 317, 175, 178, 180, 182–84,
329, 437, 442 193–95, 281, 446
460 INDEX

local governments, 200, 204, 212–13 market characteristics, unique,

logo, brand’s, 302 21–22
love-brand, 145, 149, 151, 153–54, 160 market environment, 171
loyalty, 148–50, 159, 332, 341, 343, marketers, 19–20, 91–92, 116–17,
394–95, 402, 415, 441 119, 130, 133–34, 240–41,
luxury, 116, 225, 416, 432–33, 436, 275–76, 279, 283, 287, 289
439, 449–50 marketing
luxury brand image, 437 activities, 14, 155, 188, 353, 355,
luxury brands, 431, 433, 445, 447–53 358–60, 362, 364, 366,
luxury consumption markets, 433, 369–70
449–50 analytics, 86–87
luxury goods, 431, 435–39, 449 better, 359, 367–68
luxury industry, 432–33, 440, 447 budgets, 360, 362, 366, 373
luxury market, 7, 431, 433 campaigns, 16, 371
luxury products, 185, 431–36, channels, 6, 248, 250, 364–66,
439–40, 442, 447, 449–50 370, 373, 398
branded, 434, 442 communication efforts, 145, 276,
consumed, 434 312–13
consumption of, 449 communication mix, 275–76,
contemporary, 433–34 280–81
exceptional, 434 communications, 6, 19, 146, 154,
founder-dependent, 433–34 159, 28, 259, 283, 302–3,
impersonal, 434 316–17
multi-regional, 433–34 decisions, 33, 353, 358, 360, 364,
personal, 434 369–70, 373
production of, 433 departments, 20, 83, 91, 93,
public, 433–34 280–81, 394
unbranded, 433–34 development of, 9, 12, 21
understated, 434–35 digital, 280, 354, 366–69
luxury products market, 443 ethics, 4, 29–30, 33
exploration-oriented, 171
M&A. See mergers and acquisitions history of turkey, 4, 16
(M&A) lack of trust and interest in, 368–69
machine-learning, 399–400, 402–4 management in turkey, 3–4, 9, 29,
management, customer relationship, 51, 75, 199, 223, 247, 275,
86, 257, 389, 391 299, 321, 411
market mix elements, 23, 171, 279–80,
global, 23, 171, 175–76, 200 433, 436
local, 166, 173–75, 178–79, 286 mix, 18, 20, 23, 170–71, 185,
new, 23–24, 167, 173, 394 187–89, 192, 280, 294, 353
Index 461

models, 10, 20, 23 multichannel customer

planning, 363, 369, 372 management, 250
practices, 6, 12–13, 15–16, 18–21, multinational companies, 4–5, 14
170, 187, 354–55, 359, 393
research, 76, 78, 83, 87, 89, 98, 360 neoliberal policies, 11–12, 18–19, 21
skills, 172, 359, 367, 369–70 Neslin, S. A., 248, 250, 259
strategies, 5, 18, 23, 167, 171, 200, new technologies, 76, 81, 91, 93–96,
292, 391, 395 99, 255, 257
team members, 362–63 NGO. See Nongovernmental
team size, 367–68 organizations’ (NGOs)
tools, 155, 204, 294, 323–24, 359, Nongovernmental organizations’
394 (NGOs), 32
traditional, 90, 93
training, 360 OECD. See Organization for
marketplace, 21, 35, 71, 113, 158, Economic Cooperation
234–35, 321, 414, 417–18 and Development
market research, 76, 82, 84–86, (OECD)
88–93, 147, 436 omni-channel retailing, 249–52, 264,
market research companies aid, 77, 92 omni-channel, 247–52, 257, 264
market researchers, 96–97 online brand communities, 155–56, 160
market research industry, 75, 77–78, online channels, 248–50, 254, 260,
82–83, 97–99 264–65
market research model, 95 online research, 77, 79–81, 83, 337
market research sector, 76, 78 online shops, 359
market share, 78, 190, 236, 250, 281, online stores, 247, 251–52, 260–61
335, 366, 371 organisations, 24–25, 33, 40, 59, 86,
market size, 82, 187, 280, 282 90, 93, 275, 277, 279–81,
MAsstIgE brAnds, 431, 433, 441 394–96, 398–402, 404,
material purchases, 223, 412–13, 418
mergers and acquisitions (M&A), 97 Organization for Economic
mobile applications, branded, 157, Cooperation and
248 Development (OECD), 37
mobile devices, 61, 247, 251, 254–56, Ottoman empire, 12–15, 40, 213, 237
261, 397 Ottoman market, 12–13
modern Turkey, 9, 11
money, 53, 57–58, 65, 71, 81, 224, paint brand, 305, 308–9, 312–13, 316
226, 232, 239, 247, 309, payment methods, 67, 248, 252–53,
311, 324, 329 258, 261
movies, 5, 111, 199–200, 204, 206, physical stores, 247, 251, 254,
227, 238–40, 284, 322, 357 258–59, 264
462 INDEX

place branding, 199, 201–6, 210, expensive, 435, 438

212–16 fake, 442–43, 447
main challenges of, 203 fishing, 178–79
place branding campaigns, 199–200 iconic, 437
place brands, 202, 214 industrial, 282, 434
Place Marketing, 199, 201–2 low-involvement, 126–27
policy makers, 52, 56, 68, 70–71 manufacturing, 179
positive attitudes, 35, 38, 40, 113, masstige, 432, 442
115, 315 new, 18, 123, 166–67, 171, 192,
positive gender discrimination, 264, 283, 399, 434, 444
308–9, 312–13, 317 optical, 184–85
practices, unethical, 32, 34–35 original, 442–43
price, high, 435–38 particular, 414
product brands, 202, 264 standard, 166–67, 172
product categories, 126–27, 150, 261, tobacco, 294
264, 294, 303, 413, 442 traditional, 190, 192
product characteristics, 129, 308, product sales, 280
311–12 product/service, 172, 346
product era, 24, 393–94 product strategies, 109, 189
product information, 156, 250, 255, product symbolism, 107
258, 260, 342 purchase behaviours, 36, 262–63, 401
production
local, 15, 179, 182, 355 raising brand awareness, 360, 371
mass, 23, 25, 441 regulations, 32, 42, 53, 56, 69–71,
sustainable, 37 193, 213, 276, 294–95
production processes, 435 Republic of turkey, 4, 31, 38,
production volumes, 178–79 182, 199
product lifecycle, 126–28 research
product online, 249, 253 companies, 80–81, 84, 86, 91–92,
product placement, 206, 276, 284, 94–95, 147, 282, 404
294 customer-to-customer
product purchases, 35, 265 interaction, 234
product quality, 40, 172, 175 designs, 76, 90, 96–97, 99,
products 129, 282
agricultural, 22, 177, 181 methods, 75, 78, 88, 99
beauty, 342 provider, 80–81, 83, 86–87
chemical, 184–85 qualitative, 307
consumed, 434 Research World, 95
ethical, 40 resistance, 150, 300, 316, 412–15,
expanded-diffusion, 434 418–21
Index 463

resources Small and medium-sized enterprises

cultural, 200 (SMEs), 166
natural, 167, 186, 192–93, 200, 208 social interactions, 56, 230, 233, 236,
restaurants, 193, 205, 228, 231, 233, 239–40, 276, 289, 398
235, 237–38, 289, 293, 322, social issues, 30, 112, 116, 309, 312,
421–22 314–15
retail brands, 258, 265–66 social media, 155–57, 204–5, 248,
retail Channels, 6, 247, 252, 255, 251–52, 257–58, 260–61,
258, 264 277–78, 291–93, 303–7,
retailers, 34–35, 67, 128, 231, 234, 317–18, 359, 423
249–50, 252–56, 258–59, social media channels, 343, 354,
265, 421, 447 357–58, 365, 369
multi-channel, 249–50, 253–54, 256 social media marketing, 21, 366–69
retailing, multi-channel, 250, 252, real-time, 299, 301, 310, 317–18
256, 264 social media tools, 7, 204, 291–92, 321
revenues, 277, 358, 362, 367–68, social media usage, 20–21, 330
395–96, 403, 438 social media users, 21, 334
role, social, 114–15 social status, 57, 114–15
Source, secondary, 299, 306–7
search engine optimisation (SEO), 215 sponsorship marketing channels, 359
sectors, FMCG, 81, 86–87, 91, 97 sponsorships, 280, 294, 366–69
SEO. See search engine optimisation strategies, survival, 168–69
(SEO) surveys, 65, 81, 83, 87, 277, 282,
service industry, 179, 224 331–32, 337, 341–43, 346,
service providers, 57, 60, 70, 224–25, 353, 358, 360
233, 390 world values, 63
services, renter, 59, 66–67 sustainable consumption, 29–30, 37–38
servicescapes, 233–34
global, 237 target audience, 281, 301, 324,
sharers, 53–54, 61–62 358–59, 364, 366–67
sharing branded content, 289 technology, mobile, 52, 254–55,
sharing economy, 4–5, 51–57, 54, 57, 257–58, 265
59–61, 59–63, 64, 65, 68 Technology Directives in Consumer
companies, 54, 56, 60, 62, 65, 69, Life, 391, 395, 397, 399,
71–72 401, 403
in turkey, 4–5, 51–53, 55, 57, 59, term market research, 75–76, 94
61, 63, 65, 67, 69, 71 tourist attraction, 206, 214
platforms, 53, 55–57, 59, 61–63, TUAD. See The Turkish Researchers’
67–72 Association (TUAD)
startups, 52, 67, 69–70 Turkey ministry, 179–80, 186
464 INDEX

Turkish brands, 5–6, 144, 157, 159, industry, 353–54, 356–57, 359–60,
192, 292–93, 300–301 362, 364, 367
Turkish consumer behaviours, 5, 115 in turkey, 353–55, 357, 359,
Turkish consumers, 5–6, 114–16, 126, 361, 363, 365, 367,
128–29, 132, 147, 150–51, 369, 371, 373
229–30, 238, 424–25 virtual reality (VR), 96
preferences of, 249, 260, 264 volume, import and production,
Turkish paint industry, 299–300 178–79
Turkish people, 41, 64, 68, 159, 167,
189, 228, 230, 240–41, women in turkey, 343
276–77, 282 Women’s day, 306, 310, 312
Turkish video game developers, 353, women’s issues, 305–9, 311–12,
355, 358, 366, 372 314–15
TV advertisements, 299–300, 303–4, WOMM. See Word-of-Mouth
307, 316–17, 357 Marketing (WOMM)
WoMMa, 324–26
User Generated Content (UGC), 204 WoMM campaigns, 333, 342, 345
Word-of-Mouth Marketing
video game, 354–57, 362, 367–70, (WOMM), 280, 321–25,
developer companies, 353, 355, 327, 329, 331–37, 339, 341,
364, 371 343–45
developers, 356, 361, 365, 367, world markets, 190
371–74 world population, 30, 398