Original Research
Customer loyalty in the South African long-term insurance industry
Submitted: 17 January 2013 | Published: 29 April 2013
About the author(s)
Leon du Plessis, Department of Business Management, University of Johannesburg, South AfricaMornay Roberts-Lombard, Department of Marketing Management, University of Johannesburg, South Africa
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.
Keywords
Metrics
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Crossref Citations
1. Customer relationship management systems for customer retention in a life insurance organisation in South Africa
Michael Twum-Darko, Raafiq Abrahams
EUREKA: Social and Humanities issue: 2 first page: 3 year: 2023
doi: 10.21303/2504-5571.2023.002751