Effect of Customer Relationship Management on Customer Behaviors with the Mediating Role of Customer Value Creation in the Insurance Industry: A Case Study of Karafarin Insurance

Abstract

The service industry is highly competitive. In order to provide value-added services, many companies rely on customers as powerful tools for solidifying company performance through discourse, participation, and social presence. In this Research, the main purpose was to study the effect of Customer Relationship Management on customer behaviors with the mediating role of customer value creation in the insurance industry (Case Study: Karafarin Insurance). The research method employed in this study was a descriptive-survey, and the statistical population consisted of 800 employees from branches of Karafarin Insurance. A sample of 260 individuals was selected as the statistical sample using the simple random sampling method, with appropriate allocation determined by referring to the Morgan Table. For data collection, the Customer Relationship Management questionnaire by Sin et al. [1], the Customer Value Creation questionnaire by Kalra & Kalra (2010), and the Consumer Behavior questionnaire by Lerman (2006) were employed. Data was analyzed using descriptive and inferential statistics, and utilizing the SPSS and PLS softwires. The analysis showed that Customer Relationship Management and its components (focusing on key customers, organizational Customer Relationship Management, knowledge management, technology-based Customer Relationship Management) have an effect on customer behaviors and customer value creation. The Findings demonstrate that customer value creation have effect on customer behaviors. The Sobel test results also indicate that customer value creation plays a mediating role between Customer Relationship Management and customer behaviors.