Original Research

Customer loyalty in the South African long-term insurance industry

Leon du Plessis, Mornay Roberts-Lombard
Acta Commercii | Vol 13, No 1 | a167 | DOI: https://doi.org/10.4102/ac.v13i1.167 | © 2013 Leon du Plessis, Mornay Roberts-Lombard | This work is licensed under CC Attribution 4.0
Submitted: 17 January 2013 | Published: 29 April 2013

About the author(s)

Leon du Plessis, Department of Business Management, University of Johannesburg, South Africa
Mornay Roberts-Lombard, Department of Marketing Management, University of Johannesburg, South Africa


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Abstract

The primary objective of this study is to investigate the influence of selected independent variables, two-way communication and conflict handling on intentional customer loyalty via Customer Relationship Management (CRM) as the intervening variable within the South African long-term insurance environment. Primary data were gathered using a questionnaire, with items referring to Customer Relationship Management, customer loyalty, two-way communication and conflict handling. The sample consisted of 254 customers in four customer walk-in centres of a long-term insurance provider in South Africa. Data were factor-analysed. One independent variable, conflict handling, exerted a statistically significant positive influence on the intervening variable (CRM), whilst two-way communication exerted a statistically significant negative influence on the intervening variable. This variable (CRM) positively influenced the dependent variable (customer loyalty). If long-term insurance organisations communicate timeously and accurately, and are skilled in conflict handling, greater loyalty will be created amongst customers. The study revealed that the majority of customers (51.53%) strongly agree that two-way communication is an important dimension that underpins Customer Relationship Management and their relationship with a long-term insurance organisation. The empirical results indicate a negative relationship between the perceived two-way communication by a long-term insurance organisation and CRM at the insurance provider in South Africa. In terms of conflict handling, the study revealed that the majority of customers (45.69%) strongly agree that conflict handling is an important dimension that underpins Customer Relationship Management and their relationship with a long-term insurance organisation. The empirical results indicate a positive relationship between perceived conflict handling by a long-term insurance provider and CRM at the organisation in South Africa. Finally, the empirical results indicate a positive relationship between Customer Relationship Management and intentional customer loyalty at a long-term insurance provider in South Africa.


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