Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
Efficiency of Relationship Marketing on Insurance Services Market –
European Perspective
Slawomir Smyczek* and Justyna Matysiewicz**1
Relationships between insurance companies and customers present a very dynamic,
yet not entirely recognized category (Korenik, 2006; Hulme and Thankom, 2009,
Polanski, 2014). Over the last decade of changes in the economic climate because of
financial crisis have seen rapid growth in insurance industry with legislation limiting
and controlling different activities of particularly insurance companies. Financial crisis
has result also in decreasing trust of customers to whole financial sector. All those
changes influence very strongly on nature and structure of relationship between
insurance companies and customers. As a result, the literature lacks a complex and
clear way of showing this phenomenon, which could allow assessment of activities
related to relationship marketing. The purpose of the paper was to evaluate the
effectiveness of relationship marketing activities of insurance companies on European
markets. Very important purpose of paper was also description of the dimensions and
strength of relationships between insurance companies and customers.
JEL Codes: M31, D12, and D14
1. Introduction
According to Caceres et al. (2007) there is general agreement in the relationship-marketing
literature that the quality of the relationship between the parties involved is an important
determinant of the permanence and intensity of the relationship and the consequent success of
relationship-marketing practices. Although academics recognize the importance of relationship
marketing, there is little empirical evidence regarding the nature and extent of the overall impact of
relationship-marketing practices on relationship-quality outcomes (Gwinner et al., 1998).
High relationship quality means that the customer is able to rely on the salesperson's integrity and
has confidence in the salesperson's future performance, because the level of past performance
has been consistently satisfactory. Relationship quality is a higher-order construct that consists of
several distinct dimensions (Dwyer et al., 1987). Although the dimensions vary depending on each
study's specific context, researchers typically conceptualize relationship quality as a higher-order
construct composed of commitment, satisfaction, and trust (Ulaga and Eggert, 2006). For example,
Dorsch et al. (2002) conceptualize relationship quality as being indicated by trust, commitment, and
satisfaction on the part of the buyers. Finally, more recently, relationship quality has been
described as a higher-order construct with trust and commitment as first-order constructs.
One of the most critical elements in insurance services market such, is development of consumer
relationships. The complexity of services and long-term nature of relationships in insurance
services sector mean that effective and satisfactory relationships are of the greatest importance in
marketing of those institutions.
1
*Prof. Slawomir Smyczek Ph.D, University of Economics in Katowice, Department of Consumption Research, 1 Maja
50, 40–287, Katowice, Poland, slawomir.smyczek@ue.katowice.pl
**Justyna Matysiewicz Ph.D, University of Economics in Katowice, Department of Market Policy and Marketing
Management, 1 Maja 50, 40–287, Katowice, Poland, justyna.matysiewicz@ue.katowice.pl
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
According to the principles of relationship marketing, successful business relationships enhance
client satisfaction and thus enhance the performance of firms. In the past, relationship satisfaction
has been conceptualized as a prerequisite for relationship quality. Crosby and Stevens (1987:404411) identified three levels of relationship satisfaction: interactions with personnel, core service,
and the organization. Some studies have investigated the relationship between service quality and
consumer satisfaction, and although they have highlighted the antecedent role of consumer
satisfaction in perceptions of service quality (Bolton and Drew, 1991). Chumpitaz et al. (2007),
presents study posited relationship satisfaction as a cumulative affect developed over the course of
a relationship - not as the outcome of a specific transaction. Furthermore, satisfaction is widely
accepted among researchers as a strong predictor for behavioural outcomes such as repurchase
intentions, word-of-mouth, or loyalty (Liljander and Standvik, 1995; Racald and Gronroos, 1996).
Morgan and Hunt (1994) consider that the commitment-trust tandem is the indivisible axis that
leads to the efficiency, productivity and effectiveness of relationships. The basis for maintaining
relationships is the keeping of promises, so that if a promise is not fulfilled the tourist will not repeat
the purchase of a product or the consumption of a service, so the relationship will come to an end.
Some authors consider that commitment is the highest level of relational bond (Dwyer, Schurr and
Oh, 1987; Achrol and Mentzer, 1995; Morgan and Hunt, 1994). Commitment between the parties
arises when one of them considers that its relationship with the other is so important that it is
worthwhile making the maximum effort to maintain it indefinitely (Dwyer et al., 1987). The essence
of commitment between the parties is the adoption of a long-term orientation of the relationship, a
desire to make short-term sacrifices in order to obtain long-term benefits (Wetzels et al., 1998).
Together with commitment, the other key element for the insurance services institutions to be able
to maintain long-term relationships is the consumer’s trust (Ravald and Gronroos, 1996; Rusbult,
1980). According to Morgan and Hunt (1994) it is the basic element that will permit the promises
and the relationships to be established and maintained. Trust implies that the good intentions of the
firm are not questioned by the customer, that the promises made do not generate uncertainties in
the purchaser and that the communication between the parties is honest open and frequent (Berry,
1995). Trust has been defined as 'an individual's general expectation as to whether another's word
can be trusted (Czepiel, 1990).
The main aim of paper was to investigate relationship between insurance companies and
customers as well to evaluate the effectiveness of relationship marketing activities of insurance
companies on European markets. Very important purpose of paper was also description of the
dimensions and strength of relationships between insurance companies and customers on the
European markets.
The following hypothesis is therefore proposed: the most essential factors in creating the European
consumer’s relationship with insurance companies is satisfaction with cooperation with the this
institution and effectiveness of relationship marketing on this market is moderate.
Four countries in Europe were chosen as subjects of the comparative analysis: Germany, Poland,
Slovakia, and UK. Two of them are “old” EU members, and two “new” once, as well, two have
already Euro, and two not. It is necessary to add that financial sector is characterized by great
resource symmetry in the relation: organization – consumer, high level of concentration, high
frequency of consumer-organization contacts and full customers' freedom in the choice of a service
provider. Choice of insurance sector was deliberate, as, on the one hand the focus was put on
sector characterized by great resource symmetry in the relation: organization – consumer; on the
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
other hand the authors wanted to concentrate on sector which represent relatively high level of
degree of concentration, relatively often frequency of consumer-organization contacts and
customers' freedom in the choice of a service provider.
Thus, there were initial tests performed in the form of an online survey consisting of a standardized
questionnaire including 8 substantial questions and 7 ones referring to respondents’ particular. The
test tools were constructed on the literature based assumption that the relationship between the
individual client and supplier of products is determined, and characterized at the same time, by 4
main groups of factors – dimensions of relations: (1) the consumer’s involvement in the contacts
with a insurance institution – refers to the activities of the consumer in order to make a relation with
the unit, (2) the insurance service institution’s involvement in the relationship with the consumer –
refers to the activities of the insurance services institution in order to make relation with the
consumer, (3) the consumer’s satisfaction with the institution’s activities/services, and (4) the
consumer’s confidence to the insurance service institution.
Research was finance by National Center of Science (NCN) based on decision number DEC2013/11/B/HS4/01470.
The research results confirm that one of the most essential factors in creating the consumer’s
relation with insurance services institutions is satisfaction with cooperation with insurance services
institution. However, the involvement of the institution itself has a great influence on the relation
strength. Also dependence of relation strength from the consumer’s confidence to the insurance
service institution may be defined as quite strong. The survey showed that regarding both preferred
and rejected professional institutions the respondents who highly evaluated three out of four relation
determinants perceive their relations as strong. Yet, rather weak relations prevail with the
respondents who attributed low marks to the determinants. Results of research can be applied by
managers of insurance service institutions, particularly by departments responsible for creation
long-tem and durable relationship with consumers.
2. Literature Review
Over the past 15 years, a major shift has occurred in the ways that companies deal with their
customers and suppliers (Christopher et al, 1991; Ellram 1995; Han et al 1993). This change has
come about as companies have recognized that sustainable competitive advantage in the global
economy increasingly requires companies to become trusted participants in various networks or
sets of strategic alliances (Morgan and Hunt 1994; Ganesan 1994). Relationship marketing has
emerged over the years as an exciting area of marketing that focuses on building long-term
relationships with customers and other parties (Chumpitaz et al 2007). As Grönroos observed that
(...) establishing a relationship, for example with a customer, can be divided into two parts: to
attract the customer and to build the relationship with that customer so that the economic goals of
that relationship are achieved.
The fundamental principles upon which relationship marketing is based are mutual value creation,
trust, and commitment; the greater the level of customer satisfaction with the relationship - not just
the product or service - the greater the likelihood that the customer will be loyal to the company
providing that service or the product. The objective of relationship marketing is to achieve high
levels of customer satisfaction through collaboration of the parties involved (Payne 1996).
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
Relationship marketing has been conventionally defined as "developing," "maintaining," and
"enhancing" customer relationships (Parasuraman et al 1991). The popularity of relationship
marketing stems, in part, from the assumption that building customer relationships will lead to
increased benefits for the organization in the form of customer satisfaction, loyalty, word-of-mouth,
and increased purchases. In the current literature, several different approaches have been used to
identify these variables and to study their impact on relational outcomes (Wong and Sohal 2006).
Researchers in the area have addressed topics such as how companies benefit from building longterm relationships (Parasuraman et al 1991) customer motivations for maintaining relationships
(Bendapudi. and Berry 1997; Sheth. and Parvatiyar 1995); the role of relational bonds in the
development of customer relationships (Smith 1998), and the relational benefits customers receive
from service relationships (Gwinner et al 1998).
The new economies now calculate on service industries. There is a shift to service economy from
industrial economy. In this labour intensive sector relationship plays an important role. The major
service organizations like banks, insurance companies, hospitals, hotels, IT and telecoms requires
regular interaction of marketers and customers, so that the bond and understanding between both
will become strong.
In the article authors want to concentrate mainly on insurance service sectors. Insurance service
companies have three important characteristics: knowledge intensity, low capital intensity, and a
professionalized workforce (Von Nordenflycht 2010). Being provided by highly educated people,
they involve a significant degree of customization, interaction, discretionary effort and personal
judgment by the professionals delivering the service. What is more these kind of services are
provided within the constraints of professional norms of conduct. For gaining and sustaining
competitive advantages, such characteristics imply that strategies of insurance services companies
mainly emerge from managing intellectual capital embedded in social exchange relationships with
clients, peers, educators, and professional associations (Reihlen and Apel, 2005).
Advantages from based on relationship marketing on insurance services market can be seen in
categories which start when passing the single transactions to the ground of long-lasting relations:
mechanism of reduction of uncertainty of a customer connected with the transaction, mechanism of
growing efficiency of interaction between the firm and a customer mechanism of meeting the social
needs on the emotional level. The basic advantage flowing from the application of based on
relationship marketing is limitation of costs which are the results of loosing the customers and the
necessity of getting new ones. One of the most important factors influencing the total amount of
profit from service is the length of lasting of relations. The essential issue is identification of the way
of lengthen of that period.
According to Chumpitaz et al (2007) there is general agreement in the relationship-marketing
literature that the quality of the relationship between the customer involved is an important
determinant of the permanence and intensity of the relationship and the consequent success of
relationship-marketing practices. Although academics recognize the importance of relationship
marketing (Berry 1995; Goff et al1997), there is little empirical evidence regarding the nature and
extent of the overall impact of relationship-marketing practices on relationship-quality outcomes
(Gwinner et al 1998).
High relationship quality means that the customer is able to rely on the salesperson's integrity and
has confidence in the salesperson's future performance, because the level of past performance
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
has been consistently satisfactory. Relationship quality is a higher-order construct that consists of
several distinct dimensions (Dwyer 1987).
Although the dimensions vary depending on each study's specific context, researchers typically
conceptualize relationship quality as a higher-order construct composed of commitment,
satisfaction, and trust (Ulaga and Eggert 2006). For example, Dorsch et al. conceptualize
relationship quality as being indicated by trust, commitment, and satisfaction on the part of the
buyers. Similarly, Crosby et al. identify satisfaction and trust as key constituents of relationship
quality. Finally, more recently, relationship quality has been described as a higher-order construct
with trust and commitment as first-order constructs (Hewett et al 2002; Hibbard et al 2001). In line
with these previous studies, present research focuses on trust, commitment, and satisfaction as
key characteristics of relationship quality.
According to the principles of relationship marketing, successful business relationships enhance
client satisfaction and thus enhance the performance of firms. In the past, relationship satisfaction
has been conceptualized as a prerequisite for relationship quality. Crosby and Stevens identified
three levels of relationship satisfaction: interactions with personnel, core service, and the
organisation. In their study of insurance customers, Crosby and Stevens found that all three levels
contribute to overall satisfaction with the relationship.
Satisfaction with the relationship is important, but satisfaction per se does not automatically lead to
repurchase (Reichheld and Aspinall 1993). Some studies have investigated the relationship
between service quality and consumer satisfaction, and although they have highlighted the
antecedent role of consumer satisfaction in perceptions of service quality (Bolton and Drew 1991).
Chumpitaz Caceres et al (2007) presents study posited relationship satisfaction as a cumulative
affect developed over the course of a relationship - not as the outcome of a specific transaction.
Furthermore, satisfaction is widely accepted among researchers as a strong predictor for
behavioural outcomes such as repurchase intentions, word-of-mouth, or loyalty (Liljander and
Standvik 1995; Bowen and Brown 1995; Ravald and Grönroos 1996). Recent findings provide
evidence of a positive direct relationship between relationship satisfaction and loyalty (Ping 1999).
Morgan and Hunt consider that the commitment-trust tandem is the indivisible axis that leads to the
efficiency, productivity and effectiveness of relationships. The basis for maintaining relationships is
keeping of promises, so that if a promise is not fulfilled the customer will not repeat the purchase of
a product or the consumption of a service, so the relationship will come to an end (Moliner 2007).
Some authors consider that commitment is the highest level of relational bond (Dwyer et al 1987).
Commitment between the parties arises when one of them considers that its relationship with the
other is so important that it is worthwhile making the maximum effort to maintain it indefinitely
(Dwyer et al 1987; Gundlach et al 1995; Morgan. and Hunt 1994). The essence of commitment
between the parties is the adoption of a long-term orientation of the relationship, a desire to make
short-term sacrifices in order to obtain long-term benefits (Dwyer et al 1987).
The literature has established two dimensions of commitment: affective commitment and calculated
or cognitive commitment (Geysken et al 1996; Wetzels 1998). Affective commitment is based on
emotional motives, like the feeling of belonging and respect for the other party (Geysken et al
1996). Cognitive commitment is an exercise in economic calculation, and two types can be
distinguished: negative and positive. Cognitive commitment is negative when the relationship is
maintained due to the costs and penalties associated with abandoning it (Young and Denize 1997).
As soon as alternatives appear, relationships based on negative commitment will dissolve (Rusbult
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
1980). The commitment is positive if the motive for remaining in the relationship is the possibility of
obtaining economic gains or benefits. It is said that this commitment is based on cognitive value
(Ravald and Grönroos 1996). In study, it is used satisfaction, trust, and commitment as main
measurements of relationship quality, and here define trust and commitment as a consumer's
enduring desire to continue a relationship with a PSF accompanied by customer's willingness to
make efforts at maintaining it.
Together with commitment, the other key element for the insurance services companies to be able
to maintain long-term relationships is the customer’s trust (Morgan. and Hunt 1994). According to
Morgan and Hunt (1994) it is the basic element that will permit the promises and the relationships
to be established and maintained (Berry 1995). Trust implies that the good intentions of the travel
agency are not questioned by the customer, that the promises made do not generate uncertainties
in the purchaser and that the communication between the parties is honest open and frequent
(Czepiel 1990). Trust has been defined as 'an individual's general expectation as to whether
another's word can be trusted (Rotter 1967).
3. Research Methodology
The main aim of research was determining the groups of factors creating relationships between
consumers and insurance services institutions. Identifying the groups of factors was supposed to
be the basis for creating the relation of a consumers and insurance services unit from the point of
view of a consumer. Very important goal of research was to evaluate the effectiveness of
relationship marketing activities of insurance companies on European markets as well description
of the dimensions and strength of relationships between insurance companies and customers on
the European markets.
The following hypothesis is therefore proposed: the most essential factors in creating the European
consumer’s relationship with insurance companies is satisfaction with cooperation with the this
institution and trust to insurance company. It is important to assume that effectiveness of
relationship marketing on this market is moderate.
Four countries in Europe were chosen as subjects of the comparative analysis: Germany, Poland,
Slovakia, and UK. Two of them are “old” EU members, and two “new” once, as well, two have
already Euro, and two not. It is necessary to add that financial sector is characterized by great
resource symmetry in the relation: organization – consumer, high level of concentration, high
frequency of consumer-organization contacts and full customers' freedom in the choice of a service
provider. Choice of insurance sector was deliberate, as, on the one hand the focus was put on
sector characterized by great resource symmetry in the relation: organization – consumer; on the
other hand the authors wanted to concentrate on sector which represent relatively high level of
degree of concentration, relatively often frequency of consumer-organization contacts and
customers' freedom in the choice of a service provider.
Thus, there were initial tests performed in the form of an online survey consisting of a
questionnaire including 8 substantial questions and 7 ones referring to respondents’ particulars
(questions about gender, age, educational background, income, tangible personal property, place
of residence, number of persons in a household). The test tools were constructed on the literature
based assumption that the relationship between the individual client and supplier of products or
services is determined, and characterized at the same time, by 4 main groups of factors –
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
dimensions of relations: (1) the consumer’s involvement in the contacts with a insurance services
institution – refers to the activities of the consumer in order to make a relation with the unit, (2) the
insurance services institution’s involvement in the relationship with the consumer – refers to the
activities of the insurance services institution in order to make e relation with the consumer, (3) the
consumer’s satisfaction with the institution’s activities/services, (4) the consumer’s confidence to
the insurance services institution.
Very important part of the questionnaire used in testing consumer were 2 questions in the form of
the Likert scale meant to constitute the basis for constructing the relation model. Both questions
contained identical sets of statements. The former referred to the company from all investigated
markets related to the consumer in the tightest way, whereas the latter referred to the one with
which the consumer’s relation is the weakest. Identification of the first company included
determination of the company with which the consumer would continue the relations if he/she had
to limit themselves to buying services of just one entity. The second company – representing the
weakest relation with the consumer – was chosen on the basis of indicating the company whose
services would to be given up first by the consumer if it was necessary.
Except for standard analyses of basic distributions, in order to identify the factors forming the
relations of companies with their consumers on selected markets the data from the Likert scale
was used and principal component analysis (PCA), being one of the factor analysis techniques,
performed. The next step in the analyses made was evaluation of the relation between four
consumer-company relation factors assumed (satisfaction, confidence, company’s and consumer’s
involvement) and the strength of this relation expresses by the readiness to maintain the contact in
future and tendency to recommend the company to others. Synthetic variables (accumulated
marks) were introduced by summing replies within each of four relation determinants separately.
The last step in testing was analyzing the replies to the questions about the features of the
consumer-friendly company. Apart from determining the average mark for weighting each feature
the analysis of main components was performed in order to define the factors having impact on
perception of the company by its consumers.
The survey comprised 600 adult respondents (in other words, individual consumers) in each
country: Germany, Poland, Slovakia, and UK. In total there were 2,400 respondents. Research
were conducted from period at the beginning of April and the end of May 2014.
After the collection, all questionnaires were subject to screening and verification in terms of
information completeness, correctness and reliability. This helped to reveal arithmetic mistakes,
record inaccuracies, as well as logical and systematic errors, i.e. errors which distort data in a
biased way (e.g. contradictory answers to questionnaire questions, etc.). The questionnaire
verification ensured and enhanced credibility of the data through the exclusion of erroruneslycompleted questionnaires. As a result, 1,792 questionnaires were approved for further analyses
and the data were grouped at a national level, which allowed for the comparison of insurance
markets in each investigated country.
4. Results of Research and Discussion
All respondents declared taking advantage of services rendered by insurance services institutions.
Firstly, the respondents were asked to point out the insurance services institutions with which they
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
have the strongest relations. Such unit was called “the preferred insurance service unit”. Next, the
respondents were asked to point out the insurance services institutions to be given up first if there
was a need. Such unit was called „the rejected insurance service unit”. According to the
methodology there was assumed that the replies to these questions would enable to draw
conclusions about the units characterized by the strongest and weakest (the preferred and rejected
insurance service ones) relations with the respondents.
The nature and evaluation of the relation between the unit and its consumers were based on the
replies referring to several aspects of such a relation: a chance that in two years the respondent
would be still the client of this unit and would recommend it to friends, a level of confidence to the
particularly insurance services unit and the extent of meeting the respondent’s expectations by the
services.
The strength of relation with the preferred unit, measured with the average mark for individual
aspects of the relation, is – according to the expectation – stronger than in case of the unit
declared to be given up by the respondents. However, contrary to the suppositions, there is no big
difference in marks: it is only for Germany - 1.52 points, Poland - 1.79, Slovakia - 1.72, the United
Kingdom - 1.58 points for insurance services institutions for a declaration (range 1–7) that the
respondent would still be the client in two years and for Germany - 1.66 points, Poland - 1.84,
Slovakia - 1.87, the United Kingdom - 1.69 points ones for the readiness to recommend the unit to
the friends. In case of the rejected units – 4 points, being in the very center of the scale, was the
most frequent mark.
The impurities between the preferred and rejected insurance services units are even smaller in
case of the questions about the confidence to the insurance services unit and level of meeting the
respondent’s expectations by the unit’s services (they are about Germany - 1.43 points, Poland 1.57, Slovakia - 1.55, the United Kingdom - 1.64 points. The most frequent and central marks (the
dominant and median) were 4 (for all investigated markets) for the rejected insurance services
units and 5 in case of insurance institutions for the preferred ones (with the exception in case of the
mark referring to meeting the respondent’s expectations, that was lower by 1 point).
It is worth noticing that the average marks for the rejected insurance services units are above the
centre of the scale and dominants and medians are placed right in the middle. This shows that the
insurance services units likely to be given up by the clients are rather “average” that „bad”. On the
other hand, the average marks for the preferred insurance services units from all investigated
countries are above 6, which shows their very good perception by the respondents.
The essential aim of research was determination of the impact of four hypothetically defined factors
onto the strength of the relation between the consumers and insurance services unit, both the
preferred one and the one likely to be given up first. Referring to indicated units the respondents
were asked to characterize their mutual relations in four initially assumed aspects, namely
confidence, satisfaction, the insurance services unit’s and consumer’s activities. The 7-point Likert
scale including these four aspects/determinants of the relation with the set of appropriate
statements was used for this purpose. Firstly, the average marks for synthetic variables
characterizing the above mentioned determinants of relation and its strength were calculated.
Table 1. The average marks for relationship determinants and relationship strength on
insurance market in Europe
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
The average marks for relationship determinants
The average
(scale 4–28)
of
Marks for
relationship
The
health
The unit’s
strength
consumer’s
Satisfaction
Trust
care units
activity
(scale2–14)
activity
P*
R**
P
R
P
R
P
R
P
R
Germany
15.645 14.886 11.453 10.274 19.872 12.880 25.017 22.394 8.712 6.303
Poland
19.886 16.017 16.275 14.670 23.280 16.235 22.394 15.365 10.303 7.287
Slovakia
20.037 18.249 16.005 15.897 21.927 11.387 20.689 18.547 9.984 6.349
United
12.956 1.771 18.301 17.070 21.017 15.997 20.429 17.501 7.989 6.748
Kingdom
* Preferred unit
** Rejected unit
The average marks for the strength of the relation and the strength of impacts of the determinants
are obviously higher for the preferred insurance services units than for rejected ones. The
difference is the slightest for the consumer’s activity, and the greatest in case for satisfaction. This
means that the supremacy of the preferred insurance services units over the rejected ones lies
mainly in greater satisfaction of the consumers with the services rendered by higher evaluated
professional services units.
The average marks for individual determinants for the rejected insurance services unit do not vary
much – the difference between the highest and lowest average is no more than 4 points for all
countries. The situation is different in case of the preferred insurance services units. The strongest
influence on relation with insurance institution units in Poland, Slovakia and the UK has satisfaction
with cooperation between customer and insurance services unit while in Germany trust play the
most significant role in creation such relationship. However, for German customers satisfaction got
also very high score, very close to trust.
Such distributions of the average marks may indicate that the most decisive factor influencing the
evaluation of the relation of the consumers with the insurance services unit is the satisfaction of the
consumer whereas the weakest factor is the consumer’s activity towards the insurance services
unit.
The tests results confirm the weakest influence of the consumer’s activity on the relation strength.
In case of the preferred insurance services units over the half of relations made is evaluated as
strong relations (69.2% for Germany, 64.7% for Poland, 59.9% for Slovakia, and 61.7% for the
UK), and only 11.2% for Germany, 10.9% for Poland, 13.1% for Slovakia, and 10.9% for the UK as
weak ones. The majority of positive relations is made with the unit with which the cooperation is
characterized as satisfactory (72.9% for Germany, 80.2% for Poland, 79.2% for Slovakia, and
81.1% for the UK) and based on confidence (65.4% for Germany, 60.6% for Poland, 58.9% for
Slovakia, and 75.4% for the UK). The share of the respondents attributing high marks to
satisfaction and confidence is similar to the percentage of the people evaluating the relation with
the insurance services unit as strong. Thus, they are essential and necessary factors in the
process of building the strong relation. Half of the insurance services units evaluated positively is
highly active towards the clients whereas every fifth insurance services units creates conditions for
the clients to become active. Over the half of the preferred insurance services unit’s consumers
assess their activity towards the units as moderate. Lack of convergence in distribution of the
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
consumer’s activity and relation strength confirm the assumption about the weakest influence of
this factor on the relation with the insurance services unit.
Among the rejected insurance services units the percentage of the consumers taking up
cooperation with the unit is very similar (around 50% for Germany and the UK and around 45% for
Poland and Slovakia) as in case of the preferred ones. Nevertheless, there is a majority of the
consumers showing low activity towards the insurance services unit over those strongly engaged in
such cooperation (36.6% vs. 13.4% for Germany, 40.1% vs. 19.4% for Poland, 38.7% vs. 12.8%
for Slovakia, and 40% vs. 15.3% for the UK). As far as perceiving the remaining relation
determinants with the rejected insurance services unit, the moderate marks prevail. The replies
gathered indicate that rejection of the insurance services units results from the fact the
respondents evaluated them as „average” not „bad”. The strength of relation with the insurance
services unit to be given up first was assessed much worse than the level of its determinants. Over
the half (57.9% for Germany, 52.6% for Poland, 58.4% for Slovakia, and 67.4% for the UK) of the
respondents perceive their relations as weak and only 9% for Germany, 7.3% for Poland, 7.5% for
Slovakia, and 5.1% for the UK as strong.
Therefore, the conclusion may be drawn that the consumers evaluating the insurance services unit
as average would be willing to give up its services if alternative (better in subjective feeling)
treatment offers appeared. On the other hand such distribution of marks may imply the existence of
other (apart from four tested) factors to have an influence on the weakness of relation with the
rejected insurance services unit (ex. nature of treatment, that may be permanent and form stronger
relation with the unit or occasional, which determines weaker bonds).
Analyzing the relationship between all four relation dimensions/determinants and its strength it was
stated that in both cases, namely in case of positively evaluated and rejected insurance services
units (the insurance services units of strong and weak relations with their consumers), there is a
statistically significant dependence between these variables, although the strength of this bond is
different for different factors.
Table 2. Spearman rank correlation coefficient
Country
The unit’s
activity
The consumer’s
activity
Satisfaction
Trust
P*
R**
P
R
P
R
Germany
0.751
0.533
0.382
0.350
0.749
0.450
0.657 0.433
Poland
0.738
0.504
0.371
0.241
0.720
0.308
0.643 0.510
Slovakia
0.704
0.497
0.407
0.345
0.778
0.311
0.614 0.467
United Kingdom
0.728
0.451
0.369
0.198
0.756
0.285
0.602 0.478
*P – preferred organization
**R – rejected insurance services institution
P
R
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
5. Conclusions
The research results confirm that one of the most essential factors in creating the consumer’s
relation with the insurance services institutions is satisfaction with cooperation with the insurance
services unit for all investigated countries. However, in Germany trust more significant role in
creation relationship between insurance services unit and customer. It is also necessary to
underline that the involvement of the unit itself has a great influence on the relation strength. Also
the dependence of the relation strength from the consumer’s confidence to the insurance services
unit may be defined as quite strong.
The survey showed that regarding both preferred and rejected insurance services units the
respondents who highly evaluated three out of four relation determinants perceive their relations as
strong. Yet, rather weak relations prevail with the respondents who attributed low marks to the
determinants.
As it was initially assumed the consumers’ involvement has the weakest influence on building the
relations with insurance services units. Correlation all investigated countries indices this influence
as moderate. According to the research, the respondents perceiving their relations with the
insurance services units as strong dominate in all three groups of respondents, namely those
highly, moderately and weakly involved in contacts with their preferred insurance services units.
Regarding the units to be given up first, significant disproportions between the evaluation of the
relation strength were recorded only with the respondents highly involved in their contacts with the
insurance services units. The distribution of marks with moderately and weakly involved consumers
was similar.
From the academic point of view, our research examines relevant issues in the field of the
considered knowledge. These issues concern, among others, the role of the consumer’s
involvement in the contacts with a insurance services institution, the insurance services institution’s
involvement in the relationship with the consumer, the consumer’s satisfaction, as well the
consumer’s confidence to the insurance services institution in creating long-term and durable
relationship on insurance services market.
From the managerial perspective, the present study brings several contributions to relationship
marketing of insurance companies. The findings of this study indicate that insurance services
institutions have successfully focused on the creation and maintenance of long-term relationship
implied in the treatment of consumers. The investments made to increase consumer satisfaction
and confidence will also enhance consumers to continue relation with insurance services
institutions and willingness to recommend this institutions to other friends and relatives.
Nonetheless, it should be remembered that this research has some limitations, which, however,
can be turned into opportunities for future research. The key limitation of this study refers to the
choice of insurance sector which is characterized by the highest level of customers retention and
the greatest involvement on the part of consumers. Apart from that, research was conducted only
in for European countries in virtual environment by using online survey. However, role of particular
determinates creating long-term relationship on insurance services market may be different among
consumers who do use Internet. We believe that the future focus on a different services context, as
well as on customers from different cultures, and on non-Internet population will contribute to better
understanding of consumers relationship with services institutions.
Proceedings of Annual Tokyo Business Research Conference
9 - 10 November 2015, Shinjuku Washington Hotel, Tokyo, Japan, ISBN: 978-1-922069-88-7
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