Service Quality and Customer Loyalty of Selected Insurance Companies in Nairobi City County, Kenya
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Date
2023
Authors
Murerwa, Gatwiri Loise
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The insurance industry in Kenya has been steadily growing in the last few decades with
many insurers understanding the importance of customers and the need for competitive
advantage. In today’s competitive and first paced environment, customer loyalty has
often been cited as a significant factor. Customer loyalty is beneficial to company’s
performance. Delivery of quality service leads to customers satisfaction enabling
customer loyalty. The main objective of the study was to investigate the effect of service
quality on customer loyalty of selected insurance companies in Nairobi City County,
Kenya. The specific objectives were; to establish the impact of service reliability on
customer loyalty of selected insurance companies in Nairobi County, Kenya, to
determine the impact of service responsiveness on customer loyalty of selected insurance
companies, to assess the impact of service assurance on customer loyalty of selected
insurance companies, and to examine the impact of service tangibility on customer
loyalty of selected insurance companies. The study was anchored on relationship
marketing theory, social exchange and commitment trust theory. The study adopted a
descriptive research design. The research utilized both secondary and primary data. The
researcher used a descriptive research technique to complete their project. Primary data
was be collected using questionnaires. The study sample size was 105 General and life
Insurance companies operating in Nairobi County. Simple random sampling procedure was
used to select the sample size for this study. A plot study was conducted before data
collection. Data collection instruments were survey questionnaires for quantitative data. Data
was entered into SPSS for analysis. Data was evaluated using mean, standard deviation
and regression analysis. The study discovered that service quality had a positive and
significant effect on client loyalty in a sample of insurance businesses in Nairobi City
County, Kenya. According to the research, the organizations that embraced provided
solid services that satisfied their consumers, resolved complaints efficiently, and
deepened their relationships. According to the survey findings, businesses were fairly
attentive to the needs, difficulties, and complaints of their customers in terms of how they
treated them. It would be established that the firms had a strong commitment to service
assurance, which resulted in enhanced customer satisfaction and retention rates. The
results showed that there is a significant and positive relationship between service quality
an, satisfaction and loyalty. The study recommends that new technology and innovations
should be invested towards increasing service quality levels in insurance company. The
research proves that assurance, reliability and tangibility and responsiveness have strong
influence on customers’ loyalty level in selected insurance companies in Nairobi City
County. Thus, study concluded that service quality, if managed effectively, can
contribute significantly towards customer loyalty.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of Degree of Master of Business Administration (Strategic Management) of Kenyatta University, June 2023.
Keywords
Service Quality, Customer Loyalty, Insurance Companies, Nairobi City County, Kenya