The Role of Relationship Marketing on Customer Advocacy: An Empirical Investigation from Insurance Companies
Year: 2024
Type: article
Study design: Observational Study
Abstract: Customer advocacy has compelling evidence in the business sector that may influence prospective customers to purchase a company's products and services. It is a recommendation of a product, service, or brand based on its performance that spreads by word-of-mouth. The insurance penetration in Nigeria, which is less than 1%, reflects a lack of client advocacy for insurance. Disseminating favorable information based on user experience impacts purchasing decisions, leading to increased revenue and profitability. The present research seeks to determine the impact of Relationship Marketing (RM) characteristics on consumer advocacy. The study used a survey research design. The survey included 375,000 estimated insurance service consumers in Lagos State, Nigeria. A sample of 1,650 customers was picked from certain Local Government Areas in Lagos State using a non-probability sampling method. An adapted and validated questionnaire on relationship marketing and market penetration in the insurance industry was used. The Cronbach’s Alpha coefficient for the constructions varied from .76 to .90. One thousand six hundred fifty questionnaires were distributed, and 80% of them were completed and returned. The data were examined using descriptive statistics and multiple regression analysis for inferential statistics. The study indicates that relationship marketing has a substantial impact on customer advocacy in the insurance sector. The research recommends that insurance professionals use relationship marketing to impact customer advocacy in the insurance industry.
Source: Marketing and Branding Research
Institutions: Babcock University, Caleb University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4407918800