Business and Economics Research Journal

1029-1038

Authors: Bozena Leven

The middle-income trap (MIT) describes systemic growth obstacles shared by various countries that occur typically at the middle-income level of their development. The following analysis relies on Rostow’s classification of the stages of economic development. We focus on Rostow stages three and four, where moving from labor intensive, import and foreign direct investment (FDI) driven growth to reliance on high value-added output and exports with embedded high content of capital and technology can render sustainable long-term growth problematic. To examine MIT we study Poland, which has relied on relatively low labor costs, imported technologies, funding from the European Union and FDI to attain middle-income status. A recent slowing in Poland’s growth may signal that it has exhausted some of these growth factors and is more vulnerable to MIT. To assess this vulnerability, we analyze changes in Poland’s factor productivity, investment patterns, FDI, labor force educational attainments, new technology/product development, imports, export diversification, product complexity, and other factors. We conclude that certain conditions consistent with MIT are gaining importance in Poland and represent a challenge to its future economic growth.

1051-1070

Authors: S. Cagri Esener

By focusing on the investigation of long-term, this study aims to examine the relationship between public revenue, government expenditure and economic growth while bearing Wagner’s Law, Peacock-Wiseman’s Displacement Effect, Classical and Keynesian View on fiscal policy in mind. We employed the bootstrap panel Granger causality methodology to analyze the variables and found different linkages between both revenue and spending versus gross domestic product ratios but also some relations within and vice versa. We took a sample of 22 developing and developed countries which are noticeable with their economic activities in the recent era of globalization for the period of 1985-2017. According to the empirical results, for the growth front; public revenue independent variable is much more related or integrated with the dependent GDP variables for some countries while expenditure is also important as a deterministic factor for some others. On the other hand, for the revenue and expenditure case, the results indicate an evidence of a unilateral relationship for four countries which are supporting spend-tax and one other has bidirectional interaction that associated with fiscal synchronization hypotheses. Conspicuously, triggering affection through government expenditure to revenue and a both-way interaction between public revenue to gross domestic product can be expressed.

1085-1093

Authors: Omer Iskenderoglu, Saffet Akdag

The detection of price bubbles, which are expressed as increases in asset prices due to speculative movements, can provide information regarding potential financial imbalances that may arise in the future. Upon considering that the Mortgage crisis, which is the last international financial crisis and affected the whole world, was caused by the price bubbles in the housing prices, it is of economic importance to determine whether or not such bubbles occur in the housing prices on the national scale. This study aims to determine whether or not price bubbles occur in housing prices in Turkey. In this context, it is tried to be examined whether or not price bubbles occurred in Turkey via the Sup-Augmented Dickey-Fuller and the Generalized Sup-Augmented Dickey-Fuller tests utilizing the monthly data of the real hedonic housing price index obtained from the cities of Ankara, Istanbul, and Izmir over the period from January 2010 to December 2018. According to the study results in both test results, the existence of housing price bubbles in the cities of Istanbul and Izmir is detected. The Sup-Augmented Dickey-Fuller test results indicate that housing price bubbles occur in Ankara, whereas no housing price bubbles are detected in the city according to results obtained from the Generalized Sup-Augmented Dickey-Fuller test.

1109-1125

Authors: Erkan Ozdemir, Gamze Akcay

Biological sex is a demographic variable whose effect has been examined in consumer researches for many years. However, the effect of gender identity, defined as the existential femininity or masculinity of individuals, has started to be examined in consumer researches since the 1960s. In the literature, there are studies investigating the effect of biological sex on consumers’ impulse buying behavior. However, studies investigating the effect of gender identity on consumers’ impulse buying behavior and whether this effect differs in terms of biological sex are quite limited. The aim of this study is to investigate the effect of gender identity on the consumers’ impulse buying behavior and whether the effect of gender identity on the consumers’ impulse buying behavior differs in terms of biological sex as a moderator variable. Research data were collected from consumers in Bursa via face to face survey method. The data obtained were evaluated by structural equation modeling to determine the effect of gender identity on impulse buying behavior. As a result of the analysis, it was found that feminine gender identity positively affected impulse buying behavior, whereas masculine gender identity did not affect impulse buying behavior. In the research, biological sex was also analyzed. As a result of the analysis, it was found that according to females, the feminine and masculine gender identity were not effective on impulse buying behavior. In addition, it was found that according to males, feminine gender identity was effective on the impulse buying behavior and masculine gender identity was not effective on impulse buying behavior.

761-776

Authors: Gamze Oz-Yalaman, Deniz Sevinc, Guven Sevil

One of the most important goals of policy-makers is to achieve macroeconomic stability, which could significantly be affected by output volatility. In an effort to provide insights with regard to macroeconomic stability, this study aims to model the volatility of output by using univariate GARCH models and to examine the impact of government size on output volatility by using extensive data set from eight different classifications of world economies for the period between 1960 and 2017. The study also employs the Granger Causality Analysis to determine the direction of this relationship. The results provide strong evidence for a negative relation between government size and output volatility. Output volatility is largely dependent on its own shocks and negatively influenced by outside shock as government size. Moreover, confirming Keynesian Hypothesis, the results show that there is mostly one-way causality from government size to output volatility. The results are robust in terms of different classifications of world economies, different measurements of output volatility,different methodologies and controlling for the effect of different sets of exogenous variables.

789-806

Authors: Ali Ilhan, Metin Ozdemir

After the global financial crisis, it has been seen that many emerging markets like Turkey have developed policy frameworks that allow for price stability and financial stability taken together. The CBRT has implemented new policy mix since November 2010, in response to need to respond flexibly to the problems faced by orthodox inflation targeting and the changes in global capital flows. In this study, it is aimed to evaluate the policies implemented under new policy mix. Analyzing the monetary policy and macroprudential policy practices within the framework of new policy mix, it has seen that policies have shown a successful performance in achieving the intermediate targets that determined in line with financial stability. On the other hand, it should be noted that policymakers -to keep single digit interest rates permanent and sustain economic growth- ignored the internal risks of the new policy mix and delayed the steps that required for normalization of monetary policy. However, the use of macroprudential policy for the purpose of economic growth has created policy dilemmas due to an unstable course of economic growth that caused by to the rise in inflation rate and changing the global policy environment. Although the new policy mix has seen to be successful in achieving financial stability, it has to be stated that due to the delay in normalization and the lack of price stability make it a victim of its own success.

823-832

Authors: Huseyin Tastan, Arifenur Gungor

The aim of this study is to investigate the relationship between the slowly moving long-run component of daily volatility of Turkish stock market and a set of monthly macroeconomic variables. In the first stage, we estimate the long-term volatility of BIST100 index using GARCH-MIDAS (Mixed Data Sampling) method. Subsequently, we examine the relationship between the long-term volatility component and interest rate, USD/TL exchange rate, inflation rate, CDS premium, real sector confidence index and the volatility of S&P500 index using an autoregressive distributed lag (ARDL) model. Empirical results suggest that the most significant macroeconomic variable affecting the long-run volatility of BIST100 index is the exchange rate. Also, we show that the long-run volatility of BIST100 index is positively associated with both CDS premium and the volatility of S&P500. Finally, we find that an increase in real sector confidence index leads to a decrease in the long-run component of the BIST100 index volatility.

845-853

Authors: Yasemin Deniz Koc, Sibel Celik, Hakan Celikkol

The index type created from the stocks of companies operating in accordance with Islamic principles is called “participation index”. In this study, whether the inclusion of companies operating in Borsa Istanbul National Market and in accordance with Participation Banking principles in the BIST Participation 30 Index had an effect on the price of stocks, was analyzed with the event study method. As a result of the analysis, it was observed that the cumulative abnormal returns had been on decline before the companies were included in the participation index, and the decline continued on the day of the event and the following days. The findings obtained are meaningful and typical for all relevant economic units, especially for investors and market makers.

867-883

Authors: Alparslan Serel, Huseyin Guvenoglu

The monetary authorities are trying to be effective on the real economy with their monetary policies. Monetary policies affect economic activities through monetary transmission mechanism. In the literature, it is seen that monetary policy transmission channels are gathered under five different headings as interest rate channel, asset prices channel, exchange rate channel, credit channel and expectation channel. In order for the monetary authorities to reach their desired targets on economic activities, it is important to determine which transmission channel operate effectively. In this study, the effectiveness of the bank credit channel in Turkey, vector autoregression (VAR) with the help of the method, 2011: 01-2018: 12 period were analyzed using monthly data. The findings of the analysis show that the bank credit channel in Turkey is effective.

903-913

Authors: Ali Ihsan Akgun, Nurhan Ture

The role of stress in accounting profession has been examined in behavioral accounting literature in many studies conducted over the last three decades. The purpose of this study is to determine the relationship between personality and perceived stress level on the independent public accountants in Turkey by using Eysenck personality type used to identify the personality characteristics of the independent public accountants and the stress level scale to determine the sources of stress and to specify behavior types in stressful events. Our research findings establish that there is a significant difference between personality type and perceived stress level. In addition, there is a negative relationship between extraverted personality attribute and perceived stress level and a positive relationship between intraverted personality attribute and perceived stress level.

587-596

Authors: Fatma Kizilkaya, Mehmet Dag

Energy is considered a necessary and important input for social and economic development. Growth and energy consumption can cause each other. In this study, the causality relationship between energy consumption and growth in Newly Industrialized Countries (NIC) is analysed using annual data from the period 1971-2014. In this study, firstly the cross-sectional dependence of the series is investigated. The findings show that there is cross-sectional dependence in the series. Then the causality relationship between the series is examined using bootstrap causality test developed by Konya (2006). The results show that the neutrality hypothesis is valid for Brazil, Indonesia, India, Mexico, Malaysia, Thailand, Turkey and South Africa, and the growth hypothesis is valid for China and Philippines.

617-628

Authors: elim Demez, Oktay Kizilkayb, Mehmet Dag

Abstract The impact of financial development on economic growth in the globalized world economy is a much-emphasized issue in the economic literature. The theoretical and empirical studies on the subject generally reveal that an advanced financial system will increase the economic growth by providing functionality to the markets or that economic growth will bring about the development of the financial system. In addition to these two perspectives, in the literature, there are few approaches suggest that there is no relationship between financial development and economic growth. Also, empirical studies examining the relationship between financial development and economic growth require different results regarding the relationship between variables, analysis periods and the econometric method used. In this study, the relationship between financial development and economic growth in Turkey was examined by Hacker and Hatemi-J (2012) bootstrap causality test using quarterly data 2006Q1-2018Q2 period. From total domestic loans that variables are taken to represent financial development, only one-way causality to economic growth was found. These results indicate that supply-leading hypothesis is valid in Turkey.

649-669

Authors: Hakan Ulucan, Cemil Ciftci

The main aim of this study is to present general development of wage inequalities in Turkey in the period from the second half of 2000s, and analyze the effects of significant rise of university education on wages. In this framework, Ordinary Least Squares and Quantile regression methods are conducted by using Household Labor Force surveys of Turkstat from 2007-2017 period. The primary findings of the study are: (i) the between the top ten percentile and the bottom ten percentile (90-10 wage ratio) decreases, (ii) The increases in the minimum wages converge lower wage groups the top, (iii) Quantitative increases in the university education lowers the effect of university education on wages. The last finding indicates that problems exist in qualitative side of university education despite increases in the quantitative side. Besides, the increases in the demand for educated labor fall behind those in supply inducing a negative pressure on wages of educated labor force. The findings of the study are very important for the policies aimed at structural transformation of Turkish economy.

687-698

Authors: Sefika Nilay Onatca Engin, Cansu Unver Erbas, Ahmet Gokhan Sokmen

Capital structure decisions are an important issue that should be emphasized in order to enable enterprises to continue their activities and grow in a healthy manner. The purpose of this study is determining the capital structure and evaluating which capital structure theory fits the firms’ attitude. Knowing the characteristics of the determinants of capital structure and how they affect the capital structure will enable capital structure decisions to be taken more effectively. For this purpose, panel data analysis was carried out by using the balance sheets and income statements data of 186 manufacturing companies, whose shares are traded in İstanbul Stock Exchange between the years 2009-2016. The results of the analysis indicate that firms firstly use internal funds. External funds are used only when internal funds are insufficient. The results of the analysis show that these firms’ attitudes are fit with the pecking order theory.

709-722

Authors: Ilksun Didem Ulbegi

The aim of this study is to reveal the direct, indirect, and total effects between the supervisor integrity perceptions of employees, trust in supervisor, and organizational citizenship behaviors. In this respect, the data is collected using a convenience sampling method from 413 banking employees working in Adana. To begin with, the confirmatory factor analysis is conducted in order to examine the validity of the proposed model in the study and showed that the model has a very good model fit. In the study, in order to reveal the reliability of the scales, Cronbach Alpha internal consistency coefficient and composite reliability coefficient are used and identified that the scales used in the study are reliable. Moreover, using correlation analysis the relationships between the variables are revealed statistically significant. Subsequently, structural equation modeling and bootstrapping method are used in order to test the proposed hypotheses in the context of the research model and revealed the direct, indirect, and total effects between the variables. In this regard, the model proposed in the research frame established a very good model fit. Study results revealed that the perceptions about the supervisor integrity have an effect on the employees’ organizational citizenship behaviors in addition to this there is a partial mediation effect of trust in supervisor in this relationship. These study results are discussed in the context of previously conducted studies and theoretical framework.

735-748

Authors: Ali Acaray

The success of organizations requires employees to perform the desired behavioral outcomes. However, employees’ expected behavioral outcomes depend on many factors. The combination of these factors in an interactional process is an important issue. The purpose of this paper is to examine the mediating role of psychological well-being and work engagement on the effect of organization-based self-esteem on job performance. The sample of the study consisted of 370 employees from various companies such as food, cleaning and cosmetics. The data collected by convenience sampling method was applied to correlation and regression analyzes. The findings of the study revealed that organization-based self-esteem had a positive effect on job performance and psychological well-being and work engagement had a mediating role in this relationship. In addition, there was serial mediating effect of psychological well-being and work engagement on the relationship between organization-based self-esteem and job performance. Based on these findings, suggestions for practical applications were recommended.

297-312

Authors: Manuel Salazar Fernández, Ahmad Abu-Alkheil, Ghadeer M. Khartabiel

Due to current environment awareness, there has been an increase in investment opportunities concerning mutual funds with a focus on environmental issues. This paper analyzes the performance and risk sensitivities of German green mutual funds in comparison with their German socially responsible investment (SRI) and conventional peers. We also evaluate the results of the German green mutual funds in different market conditions. Because of this, we use and compare this performance during three periods, differentiating crises and non-crisis periods. In order to implement this analysis, we apply a CAPM-1 factor and a Carhart 4-factor methodology and find that in the full sample period 2007–2018 period, environmental funds had lower performance than conventional funds and SRI funds with similar characteristics. However, if we focus on crisis and non-crisis periods, the results change. During the financial crisis (2007–2009), green funds achieved adjusted returns slightly better than their peers; in the Eurozone sovereign debt crisis (2010-2012), the results are again similar to the results from the full sample period. And during the non-crisis period, they are not significantly different from conventional mutual funds, but they perform better than SRI mutual funds.

327-339

Authors: Selahattin Guris, Nazan Sak

Abstract Increased economic growth causes an increase in the amount of harmful gases released by the use of fossil fuels due to the increase in production amount. This effect, known as the greenhouse gas effect, is recognized as one of the main causes of global warming worldwide. According to the environmental Kuznets curve, economic growth increases the release of environmental pollutants, but after a certain economic growth, the growth and development of countries, the increase of environmental awareness, the use of environmentally friendly technologies and renewable energy sources decrease the release of harmful substances. In this study, the factors affecting the carbon dioxide emission by using the data of the period of 1993-2014 of the 32 OECD countries were analyzed by non-additive fixed effect panel regression model. In the study, it was found that the increase in energy usage increased the amount of emission, but the rate of urbanization, renewable energy consumption, commercial openness and increase in financial development decreased the amount of emissions. As a result of the analysis, the validity of the Environmental Kuznets curve hypothesis in different quantiles in the OECD countries was examined and it was determined that the functional form of the relationship between the amount of carbon dioxide emission and economic growth was in N form. Although the functional shape of the Environmental Kuznets curve is N, it is found that there is no turning point in the models, but there is a twist point. The results show that the amount of emission at the twist point does not decrease, but continues to increase by changing the slope at this point.

357-372

Authors: Mikail Kar

The aim of this study is to analyze the economic effects of regulation in mobile telecommunications markets with the example of Number Portability in Turkey. In this study, switching costs as a factor preventing competition and mobile number portability as an example of regulation are taken into consideration. Switching costs affect the price elasticity of the consumer negatively and the loyalty of the customer positively, creating dependence and inertia, directing the consumer to buy again from the same firm, even if they are not satisfied with the current situation. Regulatory authorities in mobile telecommunications markets where these costs are observed are seeking to reduce these costs by implementing mobile number portability and create a more competitive structure. Examples from the world show that the effects of this regulation vary from country to country. In the empirical analysis, the long-term relationship between price and quantity in the Turkish Mobile Telecommunications Market is determined by cointegration with structural breaks analysis and the effect of the regulation on this relationship is examined. Considering the cost and goals, it was concluded that the regulation in Turkey creates a positive effect as a right and policy that promotes competition, but does not achieve its purpose.

1-12

Authors: Kamalbek Karymshakov, Burulcha Sulaimanova, Dastan Aseinov

This paper aims to study the determinants of innovation activity of small and medium-sized enterprises in five small post-Soviet countries. Empirical analysis is based on the data from the fifth wave of the Business Environment and Enterprise Performance Survey. Innovation of SMEs is measured with five innovation practices. For each aspect of innovation probit model is applied. Estimation results shows that experience of managers has curvilinear effect on the innovation in SMEs. Moreover, foreign participation, export orientation and competitiveness in sectors are indicated as important condition for innovation by SMEs. Competition forces firms to innovate in order to survive, while openness of the economy provides with exporting opportunities and participation of the foreign capital. Especially the latter factor may significantly reduce costs of innovation through technological transformation from abroad.

27-40

Authors: Serhat Duranay, Gamze Gocmen Yagcilar

The study, which was conducted in Turkish Banks between 2002-206, has three main objectives: (i) to examine the Total Factor Productivity (TFP) of deposit banks operating in Turkey, (ii) to compare the productivity changes of banks that listed and non-listed listed on the stock exchange, and (iii) to evaluate the relationship between the change in productivity and shareholder returns of the listed banks. In this way, the hypothesis that “the shareholder returns of banks with increased productivity also increase” will be tested. In line with the stated objectives, the productivity change of 22 banks between examined period was measured by using the Malmquist TFP index. There was no significant difference between the productivity changes of the listed and non – listed banks. Then, for the period 2007-2016, the shareholder returns and productivity changes of 10 banks listed in the stock exchange were calculated. While there was no significant relationship between total factor productivity and shareholder returns, it was observed that the change in technical efficiency had a positive and significant effect on it. However, regression analyzes were repeated using control variables (market return, book value/market value, return on assets) to test this relationship. After repeated regression analysis, it was concluded that the relationship is disappeared.

55-75

Authors: Ali Ulvi OZGUL, Ibrahim Korkmaz KAHRAMAN

This research, which takes stock market index data as input in contrast to De Bondt and Thaler’s (1985) classical approach for testing overreaction hypothesis on a micro scale via individual stocks, is aimed at analyzing reactions of the market in aggregate and portfolio groups, which are represented by indexes. The shock-filtering procedure is based on 50-day window, encompassing observations from 60 days to 11 days prior to an observation as suggested by Lasfer et al. (2003) while volatility has been estimated through Exponentially Weighted Moving Average (EWMA) method. Indexes resembling each other and significantly differing from others in terms of their reaction on the day of shocks, which are detected by a different threshold have been determined. The analysis implemented separately for two subperiods outputs findings which support the validity of underreaction on all indexes except XUSIN within 2000-2008, in line with the reference researches on indexes. This result is, however valid only for positive shocks. The cautious behavior against good news disappears in the second subperiod (2009-2018). This variation can be regarded as a sign of our market’s progress in terms of information efficiency. Putting forth no significant over or underreaction of indexes to shocks, this paper shows results in compatible with the Efficient Market Hypothesis (EMH) which asserts just and timely reactions to shocks.

95-113

Authors: Ahmet Calik

It is well known that sustainability strategies have moved further and further up over the past decade due to help companies to improve the effectiveness of their marketplace and perform better in their operations. For companies, sustainability would gain long-term consequences such as getting greater profits and creating their own consumer path. The Triple Bottom Line (TBL) is a key element of the companies to achieve social, environmental, and economic benefits. Supplier’s performance directly affects a company’s performance not only environmental or economic issues but also sustainable issues. Thus, Sustainable Supplier Selection (SSS) has become the highly relevant topic and many authors and researchers have focused on this subject. This study investigates a hybrid multi-criteria decision making (MCDM) framework based on TBL to determine sustainable suppliers. After construction of hierarchy, the integrated fuzzy MCDM algorithm is implemented. At first, Fuzzy Analytical Hierarchy Process (FAHP) is used for obtaining the weights of the main criteria and related sub-criteria. Then, fuzzy TOPSIS method is applied for ranking the suppliers. Additionally, interval type-2 fuzzy sets (IT2FSs) that express uncertainty better than traditional type-1 fuzzy sets are used for selecting an appropriate supplier. The proposed approach is validated an actual case situation in Konya.

131-148

Authors: Zafer Adiguzel

If the companies in the service sector do not express themselves correctly and do not provide the required service, they fall behind in the competition race and have to leave the sector. Thus, the effect of leadership within senior managers on employees is reflected in organisation performance, which gain more importance every day. The purpose of this study is to analyse the relationships between the variables of leader effectiveness, learning orientation and effective communication, and team creativity and service innovation. As a result of our analyses, it was determined that leadership effectiveness and learning orientation have a positive impact on effective communication, team creativity, and service innovation. This indicates that if an organisation has effective leadership and learning orientation, it positively contributes to effective communication, team creativity, and service innovation in the service sector. 348 questionnaires collected from white-collar employees were used for evaluation; factor and reliability analysis were conducted on the Likert scale questions; correlation analysis was carried out to examine the relationships between variables; regression analysis was performed to test the hypotheses.

167-186

Authors: Didem Ozturk Cifci

In this research, it is aimed to determine the effect of leader-member exchange on work engagement and the mediating role of psychological empowerment on this effect. The hypotheses formed within the framework of the research model were evaluated by using the data set from 186 participants working in textile sector and the statistical analysis programs. As a result of statistical analysis, the research findings showed that the effect of the leader-member exchange on work engagement and psychological empowerment and finally psychological empowerment on work engagement. The result of the study also confirm the fully mediating role of psychological empowerment in the positive impact of leader-member exchange on employees’ work engagement, expressed in the main hypothesis of the study. It can be interpreted that the fully mediating role, verified by the research results, allows leaders to delegate authority to their subordinates with the sense of confidence created by the leader-member exchange and increase the engagement of psychologically empowered employees with this authority transfer. In the discussion and conclusion part of the study, the obtained results were compared with the literature.

203-218

Authors: Seval Aksoy

The aim of this study was to determine the teachers’ trust in their colleagues and their loneliness at work and their impact on their identification with their organizations. The research’s data was collected from the teachers working in public schools in Kadıköy District of Istanbul in 2016-2017 academic year by using a questionnaire. The collected data were interpreted using SPSS and SEM statistical programs. According to the results, there were significant relationships between trust in colleagues and loneliness at workplace, and loneliness and organizational identification at workplace, as well as trust and organizational identification among colleagues. In addition, the main motivation of the study is the mediation effect of loneliness at workplace and it has been determined that there is a full mediation effect between trust and organizational identification for colleagues.

233-243

Authors: Mustafa Emre Civelek, Adnan Veysel Ertemel

This paper attempts to clarify the underlying mechanism behind purchase decision on B2C e-commerce web sites. Research question of the study is to investigate the interaction between brand equity, perceived value and purchase intention in B2C e-commerce context by specifically questioning the direct and indirect effects within the process. Firstly, the hypotheses in the conceptual model were tested. Secondly, post-hoc analyses were conducted to clarify the mediator roles of perceived value and brand loyalty. Sub dimensions of brand equity are namely brand awareness, brand association and brand loyalty. As a result of post-hoc analyses, partial mediator roles of perceived value and brand loyalty have been proved for each variable. But the most prominent finding of this study is the disappearing of the relations between brand associations and brand loyalty and between perceived value and purchase intention after including all the variables into the global research model. This result, particularly, supported the joint mediator roles of perceived value and brand loyalty.

259-276

Authors: Meltem Kiygi Calli, Semih Kilic

The purpose of this study is to determine the effects of different packaging designs on consumer purchase intention and to determine the most effective packaging design. For this purpose, different factors in the packaging design are determined and the effect of each factor on the consumers’ purchase intentions is investigated. In this study, the factors of the packaging design are the shape, color of the packaging and the writing style on it. In order to determine the most important factor of the packaging design, which affects the consumers’ purchase intentions, online survey method is applied and data are collected. Different packaging designs are generated and the respondents are asked to rate the different design combinations according to their purchase intention. Data are analyzed by part-worth conjoint analysis method. As a result, the packaging design, which has an effect on consumers’ preferences and purchase intentions and has the highest importance rate, has been determined for the organic soap product. It has been analyzed whether the benefit factor differs according to the demographic characteristics of the participants. Additionally, the market segments obtained by benefit-based segmentation, one of the market segmentation methods, are also investigated in this study.