oa Journal of Economic and Financial Sciences - The influence of trust, commitment and conflict-handling on customer loyalty : a parallel investigation

Volume 6, Issue 1
  • ISSN : 1995-7076



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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