The Influence Of Internal Marketing On External Service Quality A Case Of Nyala Insurance S.C
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Date
2020-06
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Addis Ababa University
Abstract
The objective of this study is to investigate the influence of internal marketing on external
service quality in Nyala Insurance Company (NISCO).
Eventhough the growing importance of people in service sectors are supported in main
literatures there are still problems where traditional approaches of managing business that dully
focus on external customers’ satisfaction is still a believes of many firms.
The population of interest in this study was professional frontline staffs of NISCO. One hundred
sixteen questionnaires were distributed and 108 questionnaires were returned, yielding a
response rate of 93.1%. The regression analysis shows that Internal communication, Employees’
training, and Empowerment are significant to explain the variation in external service quality.
The findings reveal that there is significant influecne of internal marketing dimention: Internal
communication, Training, and empowerment; on external service quality except for one
dimention only i.e. reward/performance incentive which has insignificant influence. It is
recommended that there is need for NISCO to sensitized of their role in spearheading internal
marketing initiatives, for a more proactive approach and for effective implementation of internal
marketing strategies. The study will be of value to future scholars by stimulating further
research to develop a better understanding of internal marketing best practices applied in
Ethiopian insurance industry
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Keywords
external service quality, service, internal marketing