Validation of multiple-item scale for measuring service quality in life insurance business: structural equation modelling approach

Abstract

The purpose of this paper is to validate the multiple-item scale for measuring service quality in a way that it predicts customer satisfaction and patronage intentions in life insurance business in India. It has used structural equation modelling approach going after the model development strategy, which takes account of proposing a basic structural model framework and subsequently it improves the framework through modifications of competing structural models for arriving at the best-fit structural model. The multiple-item scale for measuring service quality in life insurance demonstrates good psychometric properties based on findings from a variety of reliability and validity tests and builds on the research already conducted on the topic. This study has established that a satisfied life insurance customer is not necessarily a loyal one as the best-fit structural model does not include patronage intention. Based on the significant relationships observed in the best-fit structural model, content, welcome and alignment are identified as the main factors of service quality in life insurance business; and service quality has not been found to be leading to customer satisfaction significantly. This study suffers from methodological limitations associated with convenience sampling and anonymous survey-based research.