DOCSLIB.ORG

Exploring Satisfaction and Retention Strategies for Generation Y Customers Edmund Ehichioya Otaigbe Walden University

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Exploring Satisfaction and Retention Strategies for Generation Y Customers Edmund Ehichioya Otaigbe Walden University Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2018 Exploring Satisfaction and Retention Strategies for Generation Y Customers Edmund Ehichioya Otaigbe Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Advertising and Promotion Management Commons, Marketing Commons, and the Social and Behavioral Sciences Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Edmund Otaigbe has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Christopher Beehner, Committee Chairperson, Doctor of Business Administration Faculty Dr. Frederick Nwosu, Committee Member, Doctor of Business Administration Faculty Dr. Gergana Velkova, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2018 Abstract Exploring Satisfaction and Retention Strategies for Generation Y Customers by Edmund Ehichioya Otaigbe MBA, University of Benin, 2005 BEng, Federal University of Technology, Akure, 1999 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University April 2018 Abstract Firms in the service industry have experienced a 15-30% drop in customer satisfaction ratings and an estimated $10 billion annually due to the unpredictable tendencies of one of the most significant and fastest growing consumer segments in the marketplace, Generation Y customers. The distinctive behavior of this sizeable generational cohort may be reshaping the business landscape of the 21st century regarding how consumers will relate to service providers in the future. Using the theory of customer satisfaction management system, the purpose of this multiple case study was to explore the customer satisfaction strategies that business leaders in southern Nigeria use to retain Generation Y customers. The participants included business leaders who have successfully retained Generation Y customers by applying customer satisfaction business strategies in Akwa Ibom state, Nigeria. The data were collected through semistructured one-on-one interviews with 3 business leaders from different sectors of the service industry. To enhance the credibility and trustworthiness of the interpretations, methodological triangulation of the data sources and member checking were used. The process of data analysis included word frequency analysis, coding of related phrases, identification of patterns, and generation of themes around the codes. The themes that emerged from the study were (a) positive brand image creation, (b) social media as an enabler, and (c) quality service and timely delivery. This study may create awareness for business leaders on how to satisfy and retain Generation Y customers. This awareness has the potential of promoting positive social change among business leaders because of the significant contribution profitable businesses bring to the societies and communities. Exploring Satisfaction and Retention Strategies for Generation Y Customers by Edmund Ehichioya Otaigbe MBA, University of Benin, 2005 BEng, Federal University of Technology, Akure, 1999 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University April 2018 Dedication I dedicate this study to the Almighty God who has been very generous with all the graces required to complete this project. To my support system anchored by dear wife, Bosede, and our adorable children Ose, Ehi, Deba, and Ik, for your encouragement and understanding especially for the long hours and days I have deprived you all my presence in pursuit of this goal. I also dedicate this study to all researchers, business leaders and institutions that are committed to making a positive change in the world by continually seeking out business problems and helping to find solutions. Acknowledgments I thank my Committee Chair, Dr. Christopher Beehner, for his guidance and encouragement that saw me to the finish line. I also thank my previous Chair, Dr. Charlene Dunfee for starting the journey with me. I wish to appreciate my second committee member (SCM), Dr. Frederick Nwosu, and my university research reviewer (URR), Dr. Gergana Velkova, for the invaluable feedback and direction that enriched my academic experience. I will also like to thank Dr. Susan Davis, for her excellent leadership as the Program Director for the DBA program at Walden University. A special thank-you to all my other instructors, faculty staff, classmates and the entire Walden community for helping to create a perfect ecosystem for learning and development. I also acknowledge and thank my extended family members, mentors and friends for their support and encouragement. Table of Contents Section 1: Foundation of the Study .................................................................................. 1 Background of the Problem ....................................................................................... 1 Problem Statement ..................................................................................................... 3 Purpose Statement ..................................................................................................... 3 Nature of the Study .................................................................................................... 4 Research Question ..................................................................................................... 5 Interview Questions ............................................................................................. 5 Conceptual Framework .............................................................................................. 6 Operational Definitions .............................................................................................. 7 Assumptions, Limitations, and Delimitations ............................................................. 8 Assumptions ........................................................................................................ 8 Limitations .......................................................................................................... 8 Delimitations ....................................................................................................... 9 Significance of the Study ........................................................................................... 9 Value of the Study to Businesses ......................................................................... 9 Contribution to Business Practice ....................................................................... 10 Implications for Social Change .......................................................................... 10 A Review of the Professional and Academic Literature............................................ 10 Customer Satisfaction Management System ....................................................... 13 Supporting and Rival Theories ........................................................................... 16 Customer Satisfaction and its Dimensions .......................................................... 19 i Service Quality and Customer Satisfaction ......................................................... 25 Service Quality and Market Segmentation.......................................................... 26 Generation Y Purchase Behavior........................................................................ 27 Customer Engagement through Satisfaction ....................................................... 30 Customer Satisfaction through Loyalty Programs ............................................... 33 Customer Retention ........................................................................................... 35 Gap in Literature to Improve Business ............................................................... 39 Transition ................................................................................................................ 40 Section 2: The Project ................................................................................................... 41 Purpose Statement ................................................................................................... 41 Role of the Researcher ............................................................................................. 42 Participants .............................................................................................................. 43 Research Method and Design ................................................................................... 45 Research Method ............................................................................................... 45 Research Design ................................................................................................ 46 Population and Sampling ......................................................................................... 48 Ethical Research .....................................................................................................
Load more

Recommended publications
  • The Relationship Between Customer Relationship Management Usage, Customer Satisfaction, and Revenue Robert Lee Simmons Walden University
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Walden University Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2015 The Relationship Between Customer Relationship Management Usage, Customer Satisfaction, and Revenue Robert Lee Simmons Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Robert Simmons has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Ronald McFarland, Committee Chairperson, Doctor of Business Administration Faculty Dr. Alexandre Lazo, Committee Member, Doctor of Business Administration Faculty Dr. William Stokes, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2015 Abstract The Relationship Between Customer Relationship Management Usage, Customer Satisfaction, and Revenue by Robert L. Simmons MS, California National University, 2010 BS, Excelsior College, 2003 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University September 2015 Abstract Given that analysts expect companies to invest $22 billion in Customer Relationship Management (CRM) systems by 2017, it is critical that leaders understand the impact of CRM on their bottom line.
    [Show full text]
  • The Effect of Relationship Quality on Customer Advocacy: the Mediating Role of Loyalty
    IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 10, Issue 4 (May. - Jun. 2013), PP 41-52 www.iosrjournals.org The Effect of Relationship Quality on Customer Advocacy: The Mediating Role of Loyalty 1Susanta, 2Taher Alhabsji, 3M.S. Idrus, 4Umar Nimran 1 Social and Political Science Faculty, UPN “Veteran” Yogyakarta University, Indonesia 2,4 Administrative Science Faculty, Brawijaya University, Indonesia 3Economics and Business Faculty, Brawijaya University, Indonesia Abstract: Advocacy is a strategic choice for companies responding to the new reality that customers power increased. Potential customers see information from peers or even strangers as less biased and reliable than those of an economic entity. Thus, the information conveyed by a satisfied customer is more believable than that delivered by the business entity. Customer advocacy is very important in the company's efforts to get new customers. Based on social exchange theory, advocacy can be generated from the satisfaction, trust, commitment and loyalty. The purpose of this study was to analyze the influence of satisfaction, trust and commitment to loyalty and its impact on customer advocacy. The hypotheses were tested with structural equation modeling using survey data from 178 customers of a commercial bank in Indonesia. Satisfaction and commitment have direct effect on advocacy, but trust hasn’t. Loyalty mediates the relationship between trust and advocacy, while commitment has the greatest effect on advocacy. Findings hold implications for future research as well as for managerial practice Keywords: advocacy, commitment, loyalty, satisfaction, trust. I. INTRODUCTION Marketing mix management paradigm has dominated the thinking and practice of marketing from 1950 until at least the mid-1990s.
    [Show full text]
  • The Relationship Between Customer Relationship Management, Employee Retention, and Revenue
    Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2020 The Relationship Between Customer Relationship Management, Employee Retention, and Revenue Bui Thanh Van Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Finance and Financial Management Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Bui Thanh Van has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. James Glenn, Committee Chairperson, Doctor of Business Administration Faculty Dr. Lisa Cave, Committee Member, Doctor of Business Administration Faculty Dr. Kenneth Gossett, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer and Provost Sue Subocz, Ph.D. Walden University 2020 Abstract The Relationship Between Customer Relationship Management, Employee Retention, and Revenue by Bui Thanh Van MS, University of Applied Sciences and Arts Northwestern, 2009 BS, University of Tasmania, 2000 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University Nov 2020 Abstract Downsizing campaigns and employee layoffs can result in poor customer service leading to service revenue losses. Understanding lost service revenue predictors is critical for leaders and managers to maintain and increase organizational growth and financial performance.
    [Show full text]
  • The Effect of Relationship Marketing on Customer Retention in the Jordanian’S Pharmaceutical Sector
    International Journal of Business and Management; Vol. 10, No. 3; 2015 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education The Effect of Relationship Marketing on Customer Retention in the Jordanian’s Pharmaceutical Sector Abdallah Q. Bataineh¹, Ghaith M. Al-Abdallah1, Hanadi A. Salhab2& Amer M. Shoter3 ¹ Department of Marketing, Faculty of Economics and Administrative Sciences, Applied Science University, Jordan 2 Department of Marketing, Faculty of Economics and Administrative Sciences, Tabook University, Saudi Arabia 3 Noorsat Company, Business Development Director, Jordan Correspondence: Abdallah Q. Bataineh, Department of Marketing, Faculty of Economics and Administrative Sciences, Applied Science University, Amman, Jordan. E-mail: [email protected] Received: January 13, 2015 Accepted: February 2, 2015 Online Published: February 27, 2015 doi:10.5539/ijbm.v10n3p117 URL: http://dx.doi.org/10.5539/ijbm.v10n3p117 Abstract The major aim of this study is to analyze the effect of relationship marketing factors on customer retention through relationship quality in the Jordanian’s pharmaceutical business sector. This study adopted the customers' view; the retail pharmacists who are dealing directly with the pharmaceutical companies' suppliers. The theoretical framework of this study has been tested using data gathered from the questionnaires directed to a total sample of 500 retail pharmacies located in Amman and Zarqa. The statistical results indicated that communication significantly and negatively
    [Show full text]
  • Impact of Customer Satisfaction, Brand Image and Advertisements on Brand Loyalty of “Sting (Energy Drink)” with Special Focus on Karachi
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by International Institute for Science, Technology and Education (IISTE): E-Journals European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.6, No.37, 2014 Impact of Customer Satisfaction, Brand Image and Advertisements on Brand Loyalty of “Sting (Energy drink)” with Special Focus on Karachi Ahsan Jamal Baig (Corresponding Author) MS-Management Sciences, Mohammad Ali Jinnah University, Pakistan House no. S-2/180, Saudabad, Malir Town, Karachi, Pakistan Email: [email protected] Abdul Rahim Batavia MS-Management Sciences, Visiting Faculty, Mohammad Ali Jinnah University, Pakistan Email: [email protected] Abstract The purpose of this research is to identify the impact of brand image, customer satisfaction and advertisements on brand loyalty of Sting (energy drink) with special focus on Karachi and this impact has been seen by the data obtained from the consumers of Karachi, Pakistan. For this purpose, primary data were collected through closed- ended questionnaire and secondary data were collected through research paper, articles, and books. Respondent’s age was more than 18 years which includes families, working women, employees, university students & other persons. A sample of 200 individuals were collected by using non-probability sampling technique i.e. Convenience sampling. To analysis the data SPSS software has been used. Several test like, Reliability test, Correlation and Regression Analysis, ANOVA and Coefficients were applied to analyze the impact of independent variables i.e. brand image, customer satisfaction and advertisement on dependent variable, brand loyalty.
    [Show full text]
  • A CUSTOMER RETENTION STRATEGY Ruchi*1 1Asst. Prof
    ISSN: 2249-7196 IJMRR/ May 2014/ Volume 4/Issue 5/Article No-9/624-631 Ruchi / International Journal of Management Research & Review CUSTOMER RELATIONSHIP MANAGEMENT: A CUSTOMER RETENTION STRATEGY Ruchi* 1 1Asst. Prof, Satyawati College (Eve.), University of Delhi, Delhi, India. ABSTRACT Customer relationship management solutions provide you with the customer business data to help you provide services or products that your customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and better understand who your customer are. This paper explores the advantage of the model of CRM in getting, keeping & growing strategy. However, there is a tremendous amount of confusion regarding its domain and meaning. This paper also explains the conceptual foundations of CRM by examining the literature on relationship marketing and other disciplines that contribute to the knowledge of CRM. Keywords: CRM Model, Game changer& key strategies with CRM. INTRODUCTION CRM is the short form for Customer Relationship Management . It entails all characteristic of communication that a corporation has with its client, whether it is sales or service-related. While the term customer relationship management is most frequently used to explain a business-customer relationship, CRM system is used in the same way to handle business links, clients, contract wins and sales leads. *Corresponding Author www.ijmrr.com 624 Ruchi / International Journal of Management Research & Review Customer Relationship Management is often consideration of as a business policy that enables businesses to: know the customer Retain customers through better customer experience Magnetize new customer Win new clients and contracts Boost profitably Reduce customer management costs Business frequently looking for ways to personalize online experience through tools such as help-desk software, email organizers and dissimilar types of enterprise applications.
    [Show full text]
  • The Impact of Customer Loyalty Programs on Customer Retention
    International Journal of Business and Social Science Vol. 6, No. 8(1); August 2015 The Impact of Customer Loyalty Programs on Customer Retention Dr. Sima Ghaleb Magatef Dr. Elham Fakhri Tomalieh Marketing Assistant Professor Marketing Department Faculty of Administrative and Financial Sciences University of Petra Amman 11196 Jordan Abstract The goal of this study is to obtain a deep understanding of the impact of customer loyalty programs on customer retention. This study was applied to Jordanian customers. The study investigates the impact of independent variable; loyalty programs: point system, tier system reward, charges an upfront fee for VIP benefits and non- monetary programs, on the dependent variable: customer retention. To achieve the objective of the study, a survey was conducted to collect data from the sample. In total (350) questionnaires were distributed randomly to Jordanian customers who could be reached by the researchers, and were contacted through friends, relatives, students and local malls. The participants had different social, educational, and occupational backgrounds. Response rate was (81.14%) Percent. The findings clearly show: there is significant evidence of the effect of all loyalty programs on building and maintaining customer retention. The major effect was for Tier system reward followed by charge Up-front fee for VIP benefits, and then point system, the weakest effect was for Non-monetary programs. Keywords: Loyalty programs: point system, tier system reward, charges an upfront fee for VIP benefits, non- monetary programs, customer retention 1. Introduction The use of loyalty programs as a powerful tool of relationship marketing is becoming popular to encourage customer loyalty. (Roking 2005).
    [Show full text]
  • The Impact of CRM on Customer Retention
    2006:02 PB MASTER’S THESIS The Impact of CRM on Customer Retention Arezu Ghavami Alireza Olyaei Social Science and Business Administration Programmes Department of Business Administration and Social Sciences Division of Industrial Marketing and e-Commerce CONTINUATION COURSES Supervisor: Esmail Salehi Sangari 2006:02 PB • ISSN: 1653 - 0187 • ISRN: LTU - PB - EX - - 06/2 - - SE The Impact of CRM on Customer Retention Supervisor : Dr. Salehi Advisor : Dr. Abili Arezu Ghavami Alireza Olyaei Social Science and Business Administration Programs Lulea University of Technology Department of Business Administration and Social Sciences Division of Industrial Marketing and e-Commerce Acknowledgments With every step forward we achieve the understanding as to the sweetness of endeavor to gain knowledge and to explore and find facts, through which we will learn to appreciate the beauty of search for knowledge and exploration of mysteries. We thank Lord the Almighty to have bestowed such consciousness and chance to have disclosed this fact to us with the firm intention to continue this endeavor onward. We acknowledge our thanks and appreciation for the esteemed people who have graciously helped us in this challenge. First of all, we extend our deepest gratitude to Professor Esmail Salehi-Sangari, who was the supervisor for this thesis, for all his continuous support and guidance. Then we would like to thank our advisor Dr. Khodayar Abili for his useful advices and encouragement. Finally we would like to give our deepest thanks to our close ones, colleagues and friends who have effective role in our success and our findings in genuine thinking : Again Dr. Salehi, Mr.
    [Show full text]
  • Social Media, Customer Engagement and Advocacy: an Empirical Investigation Using Twitter Data for Quick Service Restaurants
    The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/0959-6119.htm Social media, customer Social media engagement and advocacy An empirical investigation using Twitter data for quick service restaurants 1247 C.M. Sashi, Gina Brynildsen and Anil Bilgihan Received 2 February 2018 Department of Marketing, Florida Atlantic University, Boca Raton, Florida, USA Revised 9 April 2018 1 September 2018 18 September 2018 Accepted 17 October 2018 Abstract Purpose – The purpose of this study is to examine how social media facilitates the process of customer engagement in quick service restaurants (QSRs). Customers characterized as transactional customers, loyal customers, delighted customers or fans, based on the degree of relational exchange and emotional bonds, are expected to vary in their propensity to engage in advocacy and co-create value. Design/methodology/approach – Hypotheses linking the antecedents of customer engagement to advocacy are empirically investigated with data from the Twitter social media network for the top 50 US QSRs. Multiple regression analysis is carried out with proxies for advocacy as the dependent variable and connection effort, interaction effort, satisfaction, retention effort, calculative commitment and affective commitment as independent variables. Findings – The results indicate that retention effort and calculative commitment of customers are the most important factors influencing advocacy. Efforts to retain customers using social media communication increase advocacy. Greater calculative commitment also increases advocacy. Affective commitment mediates the relationship between calculative commitment and advocacy. Practical implications – Fostering retention and calculative commitment by using social media communication engenders loyalty and customers become advocates. Calculative commitment fosters affective commitment, turning customers into fans who are delighted as well as loyal, enhancing advocacy.
    [Show full text]
  • Relationship Marketing As an Orientation to Customer Retention: Evidence from Banks of Pakistan
    International Business Research; Vol. 12, No. 7; 2019 ISSN 1913-9004 E-ISSN 1913-9012 Published by Canadian Center of Science and Education Relationship Marketing as an Orientation to Customer Retention: Evidence from Banks of Pakistan Benazir Solangi1, Urooj Talpur2, Sanober Salman Shaikh3, Tania Mushatque4 & Muhammad Asif Channa5 1Department of Public Administration, Shah Abdul Latif University Khairpur, Pakistan 2Department of Economics, University of Sindh, Jamshoro, Pakistan 3IBA, Sindh University, Jamshoro, Pakistan 4Institute of Information Technology, University of Sindh, Jamshoro, Pakistan 5Business Administration, Sindh University Campus Dadu, Pakistan Correspondence: Sanober Salman Shaikh, Institute of Business Administration, Faculty of Commerce and Business Administration, University of Sindh, Allama I.I. Qazi Campus, 76080, Jamshoro, Pakistan. Received: April 16, 2019 Accepted: June 17, 2019 Online Published: June 27, 2019 doi:10.5539/ibr.v12n7p133 URL: https://doi.org/10.5539/ibr.v12n7p133 Abstract This study aims to underpin the relationship marketing as an orientation to customer retention. Further, this study undertakes the case study of banking sector from Sindh province, Pakistan. The reason of conducting this study was to analyze the impact of relationship marketing on customer’s retention in the banking sector. Relationship marketing is getting more attention and popularity around the world and helps in developing customers satisfaction and loyalty. Quantitative research approach was used to measure the response of the sample. A field survey was conducted from customers of 20 banks operating in Larkana. An adopted questionnaire was used with five variables, four independent (Trust, commitment, communication and conflict handling) to predict one dependent variable (Customer retention) at 5-point Likert scale.
    [Show full text]
  • Customers As Assets
    CUSTOMERS AS ASSETS Sunil Gupta SUNIL GUPTA is Meyer Feldberg Donald R. Lehmann Professor of Business and DONALD R. LEHMANN is George E. Warren Professor of Business at f Columbia Business School, Columbia University, New York, NY 10027. All correspondence should be sent to the first author at [email protected] ABSTRACT Customers are important intangible assets of a firm that should be valued and managed. Although researchers and practitioners have recently emphasized customer relationships and customer lifetime value, these concepts have had limited impact on the business and investment community for two main reasons: (a) they require extensive data and complex modeling, and (b) researchers have not shown a strong link between customer and firm value. We address these two issues in this article. First, we show how one can use publicly available information and a simple formula to estimate the lifetime value of a customer for a publicly traded firm. We illustrate this with several examples and case studies. Second, we provide a link between customer and firm value. We then show how this link provides guidelines for strategic decisions such as mergers and acquisitions as well as for assessing the value of a firm even when the traditional financial approaches (e.g., price–earnings ratio) fail. © 2003 Wiley Periodicals, Inc. and Direct Marketing Educational Foundation, Inc. f JOURNAL OF INTERACTIVE MARKETING VOLUME 17 / NUMBER 1 / WINTER 2003 Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/dir.10045 9 JOURNAL OF INTERACTIVE MARKETING Intangible assets, and in particular, brands and of customer data as well as sophisticated models customers, are critical to a firm.
    [Show full text]
  • An Empirical Analysis of the Strategies Undertaken by Insurance Companies in Saudi Arabia to Enhance Customer Loyalty and Customer Retention
    International Journal of Economics MANAGEMENT and JOURNALS Management Sciences managementjournals.org Vol. 1, No. 11, 2012, pp. 20-25 AN EMPIRICAL ANALYSIS OF THE STRATEGIES UNDERTAKEN BY INSURANCE COMPANIES IN SAUDI ARABIA TO ENHANCE CUSTOMER LOYALTY AND CUSTOMER RETENTION Dr. Abdalelah S. Saaty Dean, College of Business (C.O.B.) Rabigh, King Abdulaziz University, Jeddah, Saudi Arabia E-mail: [email protected] ABSTRACT Customer loyalty and customer retention is very important for the success of an organization. The present study is devoted to investigate the measures used by insurance companies in Saudi Arabia in enhancing the customer loyalty and customer retention. The study is based on primary data collected from 80 employees of insurance companies in Saudi Arabia. The findings of the study show that the insurance companies in Saudi Arabia are using appropriate incentives to build customer relationship to enhance customer loyalty and customer retention. The reason for concentration of demand to motor insurance and health insurance is other than loyalty and retention measures taken by the insurance companies. A recent study shows that people reluctant to buy insurance other than compulsory insurance is the fact that they consider insurance against the Islamic principles (Sharia’h). Keywords: Insurance, Customer Loyalty, Customer Services, Customer retention, Saudi Arabia, Sharia’h INTRODUCTION Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. Many customer relationship management (CRM) programs, particularly cross selling initiative are aimed at growing the number of loyal customers a brand has.
    [Show full text]