Customer Experience Management for Competitive Advantage in Iran’s Automotive Industry (Using Structural Equation Modeling Approach)

Authors

    Behnam Valinezhad Department of Business Management,Kish International Branch,Islamic Azad University,Kish Island,Iran.
    Alireza Rousta * Department of Business Management,Shahr-e-Qods Branch ,Islamic Azad University,Tehran ,Iran alirezarousta@yahoo.com
    Farzad Asayesh Department of Business Management,Shahr-e-Qods Branch ,Islamic Azad University,Tehran ,Iran.
    Asghar Moshabaki Esfahani Department Business Administration, Tarbiat Modares University, Tehran, Iran.

Keywords:

Customer Experience Management, Iranian Automotive Industry, Competitive Advantage, Structural Equation Modeling, Digital Marketing

Abstract

Objective: This study aims to design and test a structural model of customer experience management (CEM) to achieve competitive advantage in the Iranian automotive industry.

Methodology: This applied and correlational research employed a mixed-method design. In the qualitative phase, semi-structured interviews were conducted with 15 automotive industry experts, and validity and reliability were confirmed. In the quantitative phase, data were collected using a researcher-made questionnaire from 196 automotive managers selected through simple random sampling. The structural equation modeling (SEM) technique was applied using Amos software. Convergent validity was tested through average variance extracted (AVE), while construct reliability was verified by Cronbach’s alpha and composite reliability (CR). Model fit indices such as RMSEA, CFI, GFI, and AGFI were used to assess the model’s adequacy.

Findings: Results showed that all structural paths were statistically significant at the 0.05 level. Causal factors (customer relationship management, organizational learning, and lifecycle enhancement) significantly influenced the core phenomenon (employee, organizational, and customer information). The core phenomenon positively affected strategic empowerment and digital marketing strategies. Contextual factors (trust-building, participatory culture, experiential marketing) and intervening factors (automotive monopoly, regulations, traditional and risk-averse culture) also had significant positive effects on strategies. Furthermore, empowerment and digital marketing strategies enhanced brand equity, customer loyalty, and corporate social responsibility. Fit indices (CFI=0.95, RMSEA=0.071) confirmed the model’s adequacy.

Conclusion: The study confirms that effective customer experience management serves as a strategic enabler of sustainable competitive advantage in the automotive sector. Enhancing digital marketing capabilities, fostering organizational learning, and cultivating trust-based relationships are critical for success. The proposed structural model provides actionable insights for managers to strengthen customer loyalty, brand value, and overall organizational performance.

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Published

2025-10-21

Submitted

2025-02-20

Revised

2025-04-11

Accepted

2025-04-23

Issue

Section

مقالات

How to Cite

Valinezhad, B. ., Rousta, A., Asayesh, F. ., & Moshabaki Esfahani, A. (2025). Customer Experience Management for Competitive Advantage in Iran’s Automotive Industry (Using Structural Equation Modeling Approach). Dynamic Management and Business Analysis, 4(3), 91-112. https://dmbaj.org/index.php/dmba/article/view/250

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