The Effect of Marketing Expenditures on Business Performance: Time Series Analysis on Causality


Büyükdağ N., Kaya A., Kitapcı O.

JOURNAL OF APPLIED ECONOMICS AND BUSINESS RESEARCH, vol.9, no.4, pp.197-211, 2019 (Peer-Reviewed Journal) identifier

  • Publication Type: Article / Article
  • Volume: 9 Issue: 4
  • Publication Date: 2019
  • Journal Name: JOURNAL OF APPLIED ECONOMICS AND BUSINESS RESEARCH
  • Page Numbers: pp.197-211
  • Keywords: Marketing Expenditures, Net Profit, Profit Per Share, Vector Autoregressive Model, Business Performance, CUSTOMER RELATIONSHIP MANAGEMENT, PROMOTE ECONOMIC-GROWTH, LIFE-INSURANCE, NATIONAL CULTURE, GLOBALIZATION, DETERMINANTS, INNOVATION, SYSTEMS, PRICES, RISK
  • Akdeniz University Affiliated: Yes

Abstract

This study examines the effect of marketing expenditures in the insurance sector on business performance. The original point of the study is; first study conducted in the insurance sector in terms of marketing expenditures and business performance, examining the marketing performance of the unsought products and investigating the marketing expenditures related to the insurance sector in terms of Islamic regions and unlike other business performance indicators, investors' profit per share are also taken into consideration. The vector autoregressive model was applied. According to the results of the study, marketing expenditures have a significant and positive effect on the net profit and profit per share variables. Moreover, the relationship between these variables is bidirectional. In other words, while the increase in marketing expenditures increases the net profit and earnings per share, the increase in the net profit and per share enhances the increase in marketing expenditures. In addition, marketing expenditures started to have a high impact on net profit and earnings per share as of the second period, while marketing expenditures started to have a high impact on net profit and per share as of the third quarter. As a result, the effect between the variables appears in the short term.