Investigating Managerial Decision Constructs in Automotive Dealerships Using Confirmatory Factor Analysis

Knowing your clients’ wants and staying current with changing market trends are crucial for the profitability of any product sales or service firm. Organizations across sectors are increasingly depending on statistical and probabilistic approaches to acquiring and retaining consumers. Dealers serve as an intermediary between manufacturers and customers, influencing the customer experience and product reach significantly. There are numerous efforts to build client bases and generate sales in industries such as electronics, autos, and Fast-Moving Consumer Goods (FMCG). To acquire a better understanding of such dynamics, structured data models are used to quantitatively correlate product sales and service performance. This study intends to identify the balanced scorecard aspects that influence the performance of automobile dealerships based on user impressions. Based on Confirmatory Factor Analysis (CFA), the study identifies sixteen statistically significant balanced scorecard components with a demonstrable impact on dealer performance.