Applied mathematics in engineering, management and technology 4(4) 2016:

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1 The effect of relationship marketing on customer loyalty, quality of communication and services (Case study: life insurance companies in the city of Isfahan) Zohreh Haghshenas Jazi 1, Seid Mohammad Reza Mirahmadi 2 1. Master of Business Administration, Department of Management, Islamic Azad University, Mobarakeh Branch, Isfahan, Iran. 2. Assistant professor, Department of Management, Islamic Azad University, Mobarakeh Branch, Isfahan, Iran. Abstract The current changing environment has caused manufacturing and service businesses focus on customers and competition. Companies should monitor the interactions with customers and create value for them through understanding their needs satisfied them they provide. The concept of customer retention, relationship marketing is a good way to achieve this goal with its previous customers can be retainedand through loyalty and company profitability to improve their service quality. Therefore, in this study we tried to evaluate the effect of relationship on loyalty, relationship quality and customer service are examined. In this context, the main theory of relationship marketing and service quality, relationship quality and customer loyalty and five sub-factors hypothesis customer loyalty, relationship marketing, relationship marketing factors on relationship quality, relationship marketing factors on quality of service, the quality of the customer relationship life insurance is raised customer loyalty results suggest that any agent relationship marketing, customer loyalty is relatively weak effect. Relationship marketing is relatively moderate effect on the quality of the relationship and the quality of service is relatively good, relatively modest effect on the quality of service quality and the quality of the relationship is relatively weak effect on customer loyalty. The third hypothesis, relationship marketing factors and assumptions fourth on the highest quality of service, customer relationship quality on customer loyalty are the least effect. Keywords: relationship marketing, service quality, relationship quality, customer loyalty 1. Introduction Today, intensified competition in the areas of production and services around the world has increased compared to the past, retain customers and increase loyalty has become more difficult and demands they can help increase customer loyalty. With competitive markets and the continuously varying environment, companies have realized the fact that in the past only with a growing economy and emerging markets are facing; Each customer has its own value and must be fought to gain market share (HaghighiKafash, 2010). In the current period, committed a client has found a special place and the growth of the customer and he makes effective communication with customers within an organization, collaboration and external, are its supporters. Therefore, only customers who have a sense of belonging and profitability and long life, are capital for the Companies. (Tsoukatosand Rand, 2006). Increased competition, the ability of companies to maintain their profitability under pressure and in fact, with changes in the structure of the industry and its saturation occurred, the nature of competition has changed. The aim of relationship marketing, satisfaction of mutual relations with key partners, in order to earn and keep the business in the long run is with them. Maintain loyal customers for the companies concerned to maintain and develop their competitive position in the market, seen as a strategic challenge. Companies that are not only looking for short sale and long-term customer satisfaction through the provision of goods and services with superior value and distinctive, attempted the day, naturally have more influence in the target market and customers will be more loyal than other competitors (Huber et al., 2001). Relationship marketing is the way that insurance companies are able to achieve competitive advantages and increase customer loyalty benefit from it. Due relationship marketing to create, develop and maintain successful 30

2 exchanges focused on good customer relationships and strives to customers, suppliers and other stakeholders during coordinate marketing activities and by building financial ties, social and structural provide leads to customer loyalty. On the other hand, insurance companies must have noticed that the quality of relationships and quality of service are also important and effective role in customer loyalty (Samadi, 2013). When relationships with customers, have a high quality, customer trust and of having an affair with his seller are satisfied. Maintain long-term relationships with customers and increase customer satisfaction and loyalty are strongly linked to the profitability of the company (Sweeney and Soutar, 2011). Life insurance penetration rate, one of the most basic indicators of development of countries considered. Today, the increasing demand for life insurance, cannot be just like the old method used to reduce the price of insurance, But the development of life insurance is the need to create a peaceful environment and good relations with the creation of such a market environment can be pushed into the performance and dynamics. Insurance is symmetrical development with economic development. Improve the economic situation, increase exchanges and improve standards of living will lead to progress and development of insurance (Sepehrdost and colleagues, 2013). In this article we have tried to identify as the latest trends in marketing, relationship marketing trends and describes its components and customer-centric, the outcome of the thinking for insurance companies and mutual customer realized. In this regard, this study reviews effect of relationship marketing on customer loyalty, quality of communication and services in the insurance companies and finally the results of this research in an effort to provide effective solutions to achieve increased levels of customer loyalty in the company. 2-literature research Now service changes that have not experienced before in its history. These changes also impact on industry structure and competitive nature have been tremendous. Not surprisingly, in this turbulent environment of accelerating change, institutions have been forced to change the way your reaction to the market, so that focus less on products and more on customers and relationships, and rather than short-term perspective, to take the long-term perspective. Intensity of competition and complexity, many organizations are forced to accept a new world of marketing, relationship marketing has replaced the aggressive marketing strategies, marketing leads them towards defensive strategies. In today's complex economy competitive market and the ability to attract and retain customer loyalty has been raised as a crucial factor for many organizations. The initial approach about customer loyalty, repeat purchase, or could repurchase the product is concentrated. In business services organizations to reasons such as: fewer customers, most of the services by their continued importance of maintaining and strengthening long-term relationships with customers, closer and deeper relationships with customers and professionals to customers, resulted in to pay attention to factors affecting customer loyalty to these organizations is very important. One of the most important factors in the formation of customer loyalty to the service organization, perceptions of face to face interaction with service providers (Salar, et al., 2012). The benefits of relationship marketing, companies chose this method to move, because in the new conditions of the last marketing technique loses effectiveness and lower profitability.more mature markets with intense competition and supply and demand are much more abundant. In these circumstances, new customers are hard to find and therefore an urgent need to maintain current customers and businesses to be felt strongly in the company. In this regard, relationship marketing by creating and maintaining long-term relationships with existing customers, attract new customers to reduce costs and thereby increase the company's profitability (Alishiri et al., 2012). Although the share of life insurance in the insurance market today is not so important, but the trend is growing, so that in the not too distant future access to the appropriate position, is to be expected that by using relationship marketing to attract customers and build confidence among life insurance can be taken. The development of life insurance is very important to raise social welfare.life insurance, creating prosperity for society socially and economically, life insurance and accumulated reserves, as an agent can play a constructive role in promoting national production. Life insurance due to significant benefits that are of particular importance is in the (health, et al.,2008). Through internal research and external related to the topic are as follows: 31

3 CiprianMatis and LiviuIlies (2014) on article examines customer relationship management in insurance companies to create a better relationship with the customer's loyalty. This article notification service to customers in payment deadlines and renewal insurance policies, facilities or reward due to the length of customer contracts and services to inform customers about new products, promotional offers and so on can be studied. The result was that with greater customer awareness and better quality of service and provide more convenience, greater customer loyalty. As well as research as a model for the impact of relationship marketing on customer loyalty by Michelle Toedt (2014) was performed. This article is to assess whether a customer relationship management and relationship marketing creates loyalty was not to be. The result showed that there is a direct connection between communication and sales performance and relationship quality has a positive effect on customer loyalty. And live customer relationship marketing research entitled: Is customer satisfaction and confidence really to serve as confounding variables? By Ari Warokka et al (2013) was performed. This article compares traditional marketing to relationship marketingand stated that traditional marketing is focused on maximizing profits but relationship marketing to build strong relationships and lasting partnership between the organization and the customer as well as to maximize the benefits of all-round relations. Vazifehdust and Memarian (1392) to investigate the relationship between ethical behavior dealer satisfaction, trust and loyalty of policyholders in life insurance.alishiri and colleagues (2012) examined the effect of relationship marketing based on customer loyalty Balan's Kerman travel agency.in this study, the RE model to study the foundations of relationship marketing agency in the form of trust, commitment, conflict management and communications was used. The results showed that, under the influence customer loyalty and relationship quality indicators are variables of trust and commitment, as well as conflict management and communication has a direct impact on customer loyalty. Ghazi Zadeh and colleagues (1390) examined the effect of relationship marketing on customer loyalty using the model developed their relationship.the result of this was that three of the financial, social and structural links with effective link connection quality and emotion and the same sense influences the quality of communication can lead to customer loyalty. Finally, concluded that there is a significant positive relationship between relationship marketing and customer loyalty. AbbasiLarakīs (2011) examined the effects of relationship marketing and its impact on customer loyalty entrepreneurial life insurance company to pay Omidiyeh city. The purpose of this article, the cause-effect relationship between types of marketing, service quality and relationship quality and customer service and customer loyalty and customer requirements to sample the study of entrepreneurial insurance customers. Inventory research methods and data analysis methods of structural equation modeling was used, the results showed that the entrepreneurial life insurance Omidiyeh relationship marketing, positive impact on customer loyalty. 3. Conceptual model and research hypotheses Based on the discussion about the impact on customer loyalty, relationship marketing, relationship quality and service, we recommend the following hypothesis:.h Factors on customer loyalty, relationship marketing, relationship quality and service quality was significant. H1 :factors was significant relationship marketing on customer loyalty. H2 :factors on the quality of the relationship was significant relationship marketing. H3 :significant impact on service quality, relationship marketing factors. H4 :Its quality has a significant impact on customer loyalty. H5 :service quality on relationship quality was significant. Figure 1 shows the conceptual model. This model, based on the theory and study of Tung and Wei Yu, 2012 is proposed. Relationship marketing agents 32

4 Figure (1): Model study (Tung and Wei Yu, 2012). 4. Research Methodology The aim of the present study, an applied research and the nature, correlation. A questionnaire was used for data extraction which contains 35 questions. The questionnaire used in this study was developed in two parts. To confirm the validity of the comments advisors and experts and Cronbach alpha reliability that was approved by a factor of 926/0. In this study, life insurance customers of insurance companies in the city as the population is considered thataccording to the formula of the infinite number of 384 people was designed. The collected data were analyzed by spss software and amos. In this study, the Kolmogorov - Smirnov normality Get latest data collected by questionnaire about the main variables have been used. To prioritize the importance of each variable dimensions Friedman test was used. The Cronbach's alpha coefficient of each dimension of the table (1) is estimated more than 70/0. Table 1: Cronbach's alpha coefficient of each dimension Cronbach's alpha variables 0/819 Relationship marketing 0/780 Loyalty 0/797 Its quality 0/711 the quality of service 0/926 Total 5. Findings Descriptive analysis of demographic data indicates that 52/1 percent of women and 47/9 percent are men. In the frequency distribution of the sample based on age younger than 21 years of 10/4 percent (21-30) of 23/2%, in the age group (31-40) of 25/3%, in the age group (41-50) of 12/8%, in the age group (51-60) age group above 60 years of 11/2% and 17/2% respectively. Most of the sample, about 35/7 percent of the diplomas, and graduate least 10/4 percent of the sample are higher. As well as to characterize the variables studied, the average of each of the dimensions and implications of the study is specified in the table below. Standard deviation 0/78 0/81 0/57 0/71 Table 2. Descriptive statistics Variables average number /06403 / /3840 3/ Relationship marketing Loyalty Its quality the quality of service 33

5 6. Test the hypothesis Hypothesis 1: Factors significant impact on customer loyalty relationship marketing. The effect of relationship marketing on customer loyalty 0/20 bigger than 1/96 t calculated that the amount is calculated so to ensure that there is no statistically significant relationship 0.95 null hypothesis is rejected. And due to the existence of positive and significant correlation coefficient can be significantly affected by relationship marketing on customer loyalty and accordingly we confirmed our first hypothesis. Hypothesis 2: the quality of relationship marketing relationship was significant. The effect on the quality of relationship marketing relationship 0.13 calculated that the amount is greater than 1/96 t is calculated. So to ensure that there is no statistically significant relationship 0.95 null hypothesis is rejectedand due to the existence of positive and significant correlation coefficient can be significantly affected by the quality of relationship marketing relationship and on this basis can we confirmed the second hypothesis. Hypothesis 3: relationship marketing factors significant impact on the quality of service. The effect of relationship marketing on service quality calculated 0.50T value greater than 1.96 is calculated that T value greater than 1.96 is calculated. So to ensure 0.95 that there is no statistically significant relationship null hypothesis is rejected and due to the existence of positive and significant correlation coefficient can be significantly affected by the quality of service there is relationship marketing and on this basis we can confirmed the third hypothesis. Hypothesis 4: customer relationship quality on customer loyalty significant impact on life insurance. Quality effect on customer loyalty customer relationship life insurance is calculated 0.51 that the amount t is calculated greater than 1/96. So to ensure 0.95 that there is no statistically significant relationship, null hypothesis is rejected. And according to existence of a significant and positive sign and significant correlation coefficient can be said there is direct and significant connection of the quality of the customer relationship on life insurance customer loyalty; and accordingly we confirmed our forth hypothesis. Hypothesis 5: quality of service on relationship quality was significant. Impact of service quality on communication quality calculated 0/55 that T value is calculated greater than 1.96, So to 0.95 ensure that there is no statistically significant relationship, null hypothesis is rejected. And according to existence of a significant and positive sign and significant correlation coefficient can be said there is direct and significant connection of the quality service on quality of relationship; and accordingly we confirmed our fifth hypothesis. Table 3. Table path Test result T Path Constructions Structural Effect coefficient Accepted hypothesis 2/74 0/13 Quality customer relationship Marketing agents Accepted hypothesis 11/40 0/50 the quality of service Marketing agents Accepted hypothesis 11/45 0/51 customer commitment Quality customer relationship Accepted hypothesis 11/74 0/55 Quality customer relationship the quality of service Accepted hypothesis 4/49 0/20 customer commitment Marketing agents 7. Conclusions and recommendations Given that today's customer plays a very important role in the growth and survival of businesses, including service businesses and also because of the increasing intensity of competition in the various industries that reduces customer loyalty is relative to its suppliers, the question of how to communicate with customers and maintaining long term relationship Among the most important issues affecting the durability and stability and profitability of their companies are competitive. So the concept of relationship marketing principles in its 34

6 comprehensive form of government departments and private and developed a template based organizational culture should be taught to employees. Companies and service agencies should be through open communication channel with your customers and increase their financial interests and social ties and structures to try to increase the level of trust and commitment and their loyalty and thereby maintain long-term relationship with their customers. Since, in this study a positive effect on customer loyalty, relationship marketing linkages, quality of service and quality relationship confirmed. Thus, according to results presented suggest that: Offersaccording to the first hypothesis According to the first hypothesis: relationship marketing factors have a positive impact on customer loyalty, it can be said that financial ties include price incentives to companies that encourage their customers to buy products or services. Given the crucial role of financial relations, the managers of the insurance companies offer discounts and rewards to the pricing strategies used in premium payment and installment payment terms to its customers to provide premium. There is a positive relationship between reasonable prices, and loyalty, such actions can be added through service perception, increase trust and commitment, satisfaction, and thus provide insurance customer loyalty. Structural link to add value to our customers, strengthening their relationship with the customer, this leads to increased customer satisfaction and thus increase the loyalty of them. For example, through the creation of computer-based communication infrastructure and provided the conditions to customers with less time and energy to do their shopping; The managers of insurance companies recommended by providing new information to clients, their immediate answers to questions and complaints, creating various communication channels and establish sales channels and offering diverse products through structural bonding, enhance their customers' trust,increase their commitment to the company and through the creation of their satisfaction provide grounds for their loyalty. Social bonds reflect the interpersonal relationships between buyers and sellers. When relationships with customers have high quality, clients rely seller and of having with him a sense of satisfaction and their sense of loyalty towards him. Suggestions based on the second hypothesis According to the second hypothesis: relationship marketing factors have a positive impact on relationship quality, the managers of insurance companies is proposed to hold training courses to improve sales skills, improve public relations and teaching in methods of communicating to staff these centers and through this social ties, has won the trust of customers, and they are more committed to providing a basis for customer loyalty. The structural link, companies according to customer needs, providing custom services and special; thus leading to the delivery of high quality services and develop long-term relationships with trust, satisfaction and commitment. When selecting and using social bonds, companies have realized the importance of our customers and established a friendly relationship with them and try to respond to specific demands. On the other hand, when customers are aware of the considerations friendly, willing to show the opportunities and services offered by the company; As a result, the possibility of cooperation in the future will increase. Also, when there is close interaction between buyer and seller, they are interdependent and impress each other to satisfaction, commitment and trust. As the first hypothesis stated in the financial, financial strategies used by the company, incentives cost and pricing strategies that help random clients become regular customers and increase the number of visiting and buying them; In the meantime, customers can now identify other products and feel satisfaction, trust and commitment to acquire the company. The structural link, companies according to customer needs, customized service and special offer, resulting in the delivery of high quality services and develop long-term relationships with trust, satisfaction and commitment. Recommendations based on third hypothesis The third hypothesis: relationship marketing factors on the quality of service was significant; it could be said, because sales staff are in direct contact with customers, play an essential role in ensuring customer satisfaction. Attitude, selling skills and personality traits affect sales staff on customer satisfaction, Managers of insurance companies have to keep customers and provide better service, most attention to the needs, opinions and objections in relation to service their clients and with the problems and address the comments and the level of customer satisfaction by enhancing the quality and speed of service, a good help to preserve them. Cheerful and 35

7 appropriate staff to respond to customers and serving them on time, the necessary consultationsmakes positive view on the company's customer service. Recommendations based on forth hypothesis Based on the fourth hypothesis: relationship quality has a positive effect on customer loyalty, given the direct impact on customer satisfaction and loyalty, it is suggested insurance companies periodically to measure their customer satisfaction. Maintaining customer relationships through a central organization apart from maintaining the relationship between the seller, is a very important factor. For this purpose, you must fill out a questionnaire about the frequency and type of design specifications and from the insurers viewaware of rate satisfaction of services. Also according to customer confidence in the company, positive impact on customer loyalty, it is proposed to raise the confidence of the insurance company, with more effort to fulfill its obligations and consider the reaction of customers and meet their wants and needs and respond to it,this assures customers that are important for insurance companies and your insurance company and the customer is committed to focusing on their profits, they were there for the benefit and satisfaction. If customers to be satisfaction, confidence and commitment to a company; To increase the price of goods or services is less sensitive to the day, their purchase intention for future purchases rise and encourage others to buy the company Recommendations based on fifth hypothesis Fifth hypothesis: the quality of service is a significant impact on relationship quality, service quality, customer's overall assessment of a company by three factors: the quality of staff interaction with customers, the physical environment and additional services will be assessed. Judgment about the quality of services provided to customers are doing, often at the discretion of the individual service provider is concerned. As a result, service firms that are looking for success, significant efforts should be made to employment, education and motivation of its staff to operate. It is recommended that professional insurance agents are qualified because a positive impact on the quality of services. When salespeople are experts in their work, customer service quality, will have more confidence. The attitudes of staff who play a vital role in their interaction with customers, can be effective in the success of service. The behavior of employees in the service should be serious in dealing with customers and their conformity be considered. The general recommendation is that the conceptual foundations of relationship marketing at its most pervasive in government agencies and private and the development of a template-based organizational culture should be taught to employees. Companies and institutions through the creation of services should open communication channels with their customers and increase their financial interests and social and structural links, try to increase the level of trust and commitment and their loyalty towards their long-term relationships with our customers and thereby maintain. sources 1. AbbasiLarakīs, d. F. (2011). "The effects of relationship marketing and its impact on customer loyalty for insurance companies Mrkarafryn city Omīdīyeh". Islamic Azad University, Yazd. Journal of Islamic Azad University of Yazd, Department of Management, No. 4, pp Alishiri, b., FaturehBonab, d. AS. Abdullah, h. (2012). "The effect of relationship marketing based on customer loyalty Balan Kerman travel agency" Bulletin of Economics and Business, Issue 1, Pages European Scientific Journal, vol.1, PP Ghazi Zadeh, M., Tarzan Begay, AS. F. And Abbaspoor, M. (2011). "The effect of relationship marketing on customer loyalty using the model developed relationship marketing". Shahed University, Science Journal, Vol. XVIII, No. 47, pp Huber, F., Herrmann, A. and Morgan, R. (2001), "Gaining competitive advantage through customer value oriented management", European Journal of Business and Management,,13(2), pp Real shoemaker, d. Akbari, M. Poor dumb, n. (2010). "Factors affecting the loyalty of the insured (Case Study: Iran Insurance Company)". Journal of the insurance industry, Issue 1, Pages Salar, j., sazevari, m., Haddadi, Sh. (2012). "Survey of CRM in relationship marketing" Marketing and Management Conference on Emerging Trends in the market, Payam Noor University of Mazandaran, Issue 1, Pages

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