Abstract
AbstractThe core objective of this paper is to examine the relationship between the Shari’ah perceptions and the customers’ switching intentions in both Takāful and Conventional Insurance. In today’s world, most of the businesses are focusing on customer retention rather than the customer acquisition. However, our current knowledge of insurance systems is unable to address the crucial issues of target achieving marketing tactics. Takāful is firming its roots in Muslim communities across the globe. As per customer satisfaction been considered as an important factor of customer switching, we have gone further and investigated the mediating role of customer satisfaction to customer switching intentions. The sample size of 400 customers of major life Insurance and family Takāful companies was taken using convenient sampling method. Mediation analysis was performed to test the mediating role of customer satisfaction in Family Takāful and Life Insurance. The impact of Shari’ah perceptions in life insurance and ...
Highlights
The business-to-business and customer-to-business relation are currently deemed as a matter of hot debate (Morgan & Hunt, 1994)
The results suggest that customer satisfaction acts as a partial mediator in between the relationship of Shari’ah perceptions and switching intentions
Pakistan is an Islamic state and majority of the population are Muslims in this regards we find that Shari’ah perceptions are not greatly impacting the customer satisfaction in conventional life insurance industry as it can be seen in family Takāful
Summary
The business-to-business and customer-to-business relation are currently deemed as a matter of hot debate (Morgan & Hunt, 1994). The impact of relationship investment and service quality on the customer satisfaction may vary in the presence of several switching barriers (Chen & Wang, 2009). According to Gwinner, Gremler, and Bitner (1998), if an insurance customer switches or quits a current service provider he/she will be penalized and would suffer a higher switching costs because by the time he/she would become old and will have to start policy from the initial level. The switching barriers are one important parameter to monitor the level of satisfaction of the insurance customers. Effective customer response mediates the characteristics of satisfaction (Oliver, 1993). Relationship marketing is another important segment based on social exchange theory and the satisfied customers intend to buy more insurance products and services from the same insurance provider
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