A Study on Impact of Service Quality on Customer Satisfaction (Special Reference to Life Insurance Companies in Sri Lanka)
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Date
2020
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Uva Wellassa University of Sri Lanka
Abstract
The insurance industry has recorded a high growth rate in Sri Lanka in recent years. The
delivery of high-quality service is vital to success in service industries. All business
entities are trying to attain customer fulfilment over improved service quality. Service
quality denotes of a firm’s performance. Customers are likely to choose an insurance
company that has a high quality of service such as provide complete information about
the product and services, a well-known and positive corporate image, handle the
complaints. Service quality is a recent and more dynamic decisive issue in marketing
thought. Customer’s perceptions about life insurance seem to have been largely ignored
by life insurance companies in developing countries. Therefore, to understand and
identify the relationship between customer satisfaction and service quality dimensions in
the insurance industry, this research selected a quantitative research method. A sample of
100 customers who have life insurance policies in the top five insurance companies which
are lapsed within one year was selected by using stratified random sampling and
questionnaires were administrated to collect primary data. Further to analyse the impact,
both descriptive and inferential techniques were used. The Pearson’s correlation analysis
and regression analysis were used to identify the relationship and impact of service
quality on customer satisfaction in the insurance industry. The findings of the study
indicated that all SERVQUAL dimensions have a significant effect on the level of
customer satisfaction in the Life Insurance Industry. Further, it was identified that the
most influential dimension which contributed to customer satisfaction was the tangibility,
responsiveness, assurance, and empathy. In the study, continuous improvements of
service quality dimensions are recommended to maintain a competitive edge to get and
retain strong loyal customers by keeping them at a satisfactory level in the Life Insurance
Industry.
Keywords: Service quality, Customer satisfaction, Insurance industry, Service quality
dimensions
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Keywords
Business Management, Marketing, Financial Management, Insurance industry