Perception of Service Quality and Loyalty among Customers of Insurance Companies: Comparative Analysis of Nile, Nyala and Awash Insurance
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Date
2011-06
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Addis Ababa University
Abstract
The aim of this study was to: a) Compare perception of insurance service quality among
insurance customers and b) to determine the relationship between (if existed) service quality and
loyalty. Data were collected using questionnaire from six branches of insurance customers (20
customers from each insurance company). Service quality was measured using seven dimensions
which were: Access quality, Infrastructure quality, Responsiveness, Competence, Courtesy,
Problem Solving quality and Credibility. Data were analyzed using gap analysis, factor analysis,
and correlation analysis. Respondents in the three insurances reported low levels of perceived
service quality. However, compared to service quality of Nile and Nyala insurance, Awash
insurance reported better perceived service quality. In Nile insurance, Competence and
Credibility dimensions are related to loyalty dimensions. In Nyala insurance, Responsiveness
dimension is related to loyalty dimension. Finally, in Awash insurance, Responsiveness and
Courtesy dimensions are related to loyalty dimensions. The three insurance managers should
recognize the importance of service quality in service delivery and implement appropriate
customer oriented strategies. The managers should recognize the importance of problem solving
quality and improve ways to address complaints and provide solutions to customers’ problems.
Moreover, managers should work to improve the service qualities of their respective insurances
to be competitive in the market.
Keywords: Service Quality, Service quality dimensions, Insurance, factor analysis, Gap
analysis, Correlation analysis.
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Keywords
Service Quality, Service quality dimensions, Insurance, factor analysis, Gap analysis, Correlation analysis