Impact of Relationship Marketing Dimensions on Word-of-Mouth Communications in the Insurance Industry in Nigeria
Keywords:relationship marketing; WOM communication; customer loyalty; insurance industry; Nigeria
Insurance plays a prominent backbone in a country’s economic growth through its financial
intermediary role. Although previous researchers have examined the different factors that influence
customers’ satisfaction and patronage of insurance such as corporate image, fair premium, prompt
settlement of claims, etc., not much has been achieved as demand for insurance still remains at a low
ebb. Thus, insurance industry in Nigeria has achieved below its potential in its one century years of
existence. This paper examines the impact of relationship marketing on word of mouth (WOM)
communication in the insurance industry in Nigeria. Population of study comprises all insurance
consumers in Lagos metropolis. Data was collected through the completion of questionnaire distributed
to a sample of 400 policy holders selected via convenience sampling technique. Correlation and
regression analyses were applied on the data collected using SPSS version 20 software. Findings
indicated that relationship marketing components were positively correlated with WOM
communication. The R-squared statistic revealed that 67.5% variance in the dependent variable was
explained by variances in the independent variables collectively. The paper therefore recommends that
insurance firms in Nigeria should adopt relationship marketing strategy to earn customer satisfaction
whose consequences are both customers’ positive WOM communication and loyalty.
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