Abstract:
Motor insurance has become highly competitive portion in the insurance sector. Day
by day competitiveness goes up and market share also becoming larger. Due to
competitiveness many insurance companies try to tap even untouched highly emotional
areas. Motor insurance can be delivered very instantly as well as customer can switch
also very instantly to other competitive company. Therefore most of the large scale
organization highly focus on existing customer retention than attract new customers. In
that view insurance companies are following so many strategies to grab the market
towards them. This study is investigated the study on customer behavior based on
service factors and its impact on customer retention of motor insurance industry.
The study accompanies with quantitative research approach. Primary data as well as
secondary datahad been practiced by this study. Structured questionnaire was used as
the method of data collection and questionnaire consist with two parts as personal
information of the respondent and research information. Questionnaire included 26
questions with five Likert scale ranging from strongly disagree to strongly agree. It has
been conducted pilot test to test the reliability of the questionnaire. Convenience
sampling method was used to make the sampling framework selected 200 motor
insurance customers in Trincomalee district as the sample of this study. Collected data
were analyzed using SPSS 22.0 analysis. The data were measured using descriptive
statistics, conelation and regression analysis.
It has been tries to identify service convenience, customer satisfaction, payment equity,
switching cost and trust and customer retention has good reliability and high level.
Subsequently, it has strong positive relation with customer retention. Furtherrnore,
above independent variables significantly influenced customer retention. Results
showed that these service factors are highly influencing changed customer behavior and
its impact on customer retention of motor insurance industry. This research contribution
for insurance providers. Therefore, insurance providers should pay their attention on
these factors when designing appropriate marketing strategies.
