Developing an Understanding of Effective Factors Influencing on Customers Switching in Insurance Industry

Document Type : Research Paper

Authors

1 Assistant Professor, Al-Zahra University, Faculty of Social Sciences and Economics, Department of Management

2 Student of Ph.D. in Information Technology Management, Islamic Azad University, Science and Research Branch of Tehran, Tehran, Iran.

Abstract

Corporations and organizations know that customer retention results in more profits. Moreover, an increase in competition leads to higher churn rate. So, the study of factors which affect customer switching intention is important both for researchers and practitioners of this field. The present research focuses on the study of effective factors on customers switching in insurance industry to determine which factors decrease lost customers and to what extent. First, factors such as service quality, appropriate prices, customer satisfaction, customer loyalty, switching cost and customers switching have been extracted through a review of literature, and based on these factors, a structural equation model has been developed. The analysis of the model, which based on partial list square method, shows that different factors of relation marketing, that is the offered service quality, price and loyalty affect the switching intention. The results of this research provides useful insight for insurers, policy holders and marketing researchers in insurance industry, so they can reduce customers churn by realizing the factors that affect customers switching.

Keywords

References

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Quarterly Journal of Brand Management
Volume 2, Issue 1 - Serial Number 3
October 2015
Pages 135-158

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