The Effects of Service Marketing Mix Elements on Repurchase Decision :The Case of Selected Private Insurance Companies in Addis Ababa

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Addis Ababa University


The aim of this study was to investigate the effects of service marketing mix elements on repurchase decision in the case of selected private insurance companies in Addis Ababa. To achieve the study objectives, explanatory research design along with quantitative approach was applied. A sample of 315 customers of five private insurance companies namely Nyala, Nib, Awash, United (aka Hibret) and National Insurance Company of Ethiopia, were selected and contacted through convenience non-probability sampling method. Survey questionnaire was used to collect the primary data and a total of 241 valid responses were obtained for analysis. Using SPSS 20.0 statistical application software, both descriptive and inferential analysis were conducted for multiple linear regression analysis to attain the intended objectives. The results showed that all the seven dimensions of marketing mix elements namely product, price, place, promotion, people, process and physical evidence, had positive and significant effect on repurchase decision. Price had relatively the highest effect (B=0.288) followed by place (B=0.192) and product (B=0.130) at p-value < .05. Whereas, physical evidence (B=0.094) and promotion (B=0.056) showed the least effect. Therefore, the results of this study findings revealed that that marketing mix elements have positive and significant effect on repurchase decision of insurance customers at the selected private insurance share companies. Further improvement on service marketing mix strategies of the insurance companies should require to enhance repurchase decision of the existing policyholders



Marketing Mix Element, Policyholder, Private Insurance Company