oa Journal of Economic and Financial Sciences - The influence of trust, commitment and conflict-handling on customer loyalty : a parallel investigation
|Article Title||The influence of trust, commitment and conflict-handling on customer loyalty : a parallel investigation|
|© Publisher:||University of Johannesburg|
|Journal||Journal of Economic and Financial Sciences|
|Affiliations||1 University of Johannesburg, 2 University of Johannesburg and 3 University of Johannesburg|
|Publication Date||Apr 2013|
|Pages||195 - 215|
|Keyword(s)||Commitment, Conflict-handling, Customer loyalty, Customer Relationship Management (CRM), Life insurance industry, Non-life insurance industry and Trust|
The primary objective of this article is to compare the influence of trust, commitment, and conflict-handling on customer loyalty through the intervening role of Customer Relationship Management (CRM) in the life and non-life insurance sector of South Africa. Primary data was gathered using a questionnaire. The sample consisted of 254 life insurance and 400 non-life insurance customers in South Africa. Multiple regression analysis was used to test the hypotheses. For the life insurance component of the study, trust, commitment and conflict-handling exerted a statistically significant positive influence on CRM. CRM also positively influenced customer loyalty. For the non-life insurance component of the study, no significant relationship exists between trust and CRM. A significant positive relationship does exist between conflict-handling and CRM, while a significant negative relationship exists between commitment and CRM. Therefore, life and non-life insurance providers should retain and develop loyal customers by being trustworthy (giving and keeping promises, providing quality services and illustrating a respect for customers), committed (enhanced segmentation of the customer base and increased customer surveys), and, lastly, by resolving conflicts in a timely and acceptable manner, limiting the difficulties and disappointment experienced by the customer.
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