SERVICE QUALITY AND CUSTOMER LOYALTY OF SELECTED INSURANCE COMPANIES IN NAIROBI COUNTY, KENYA

Murerwa Gatwiri Loise

Student, Master of Business Administration

Kenyatta University

Reuben Njuguna

Department of Business Administration

Kenyatta University

CITATION: Murerwa, G. L., Njuguna, R. (2021). Service Quality and Customer Loyalty of Selected Insurance Companies in Nairobi County, Kenya. International Journal of Strategic Management. Vol. 10 (11) pp 1 – 12.

ABSTRACT

An endlessly fulfilled client will trust the firm and that trust will result to solid loyalty. The insurance industry has been developing gradually at rate of 14% per year and has been playing a very big role in contributing to the economic growth of the country. Despite the developments, bad perceptions of the industry by clients because of impostors and organizations that do not make good on their promises has resulted to a lot of doubt to providers of insurance. This study set to investigate the effect of service quality on customer loyalty of selected insurance companies in Nairobi County, Kenya. Specifically, it investigated the effect of service reliability and service responsiveness on customer loyalty of selected insurance companies in Nairobi County, Kenya. The study focused on relationship marketing theory, social exchange theory and commitment trust theory. Descriptive research design was adopted in the study. Questionnaires were used to collect primary data. The data collected was sorted and cleaned after which it was entered into SPSS for analysis. It was concluded that the firms embraced provided reliable services which have made the firms’ customers satisfied, handle complaints and strengthen their relationship. The study concluded further that to a moderate extent, the firms were responsiveness to customer needs, concerns and complaints satisfactorily. The study finally concluded that the firms’ customer loyalty was average as portrayed by customer trust, loyalty and sensitivity to market dynamics. The study recommends that insurance firms enhance customer participation in improving service quality since this will enhance customer satisfaction. The firms need to embrace continuous improvement on service quality by making it more reliable, valid, tangible and responsive to promote loyalty. The firms need to improve the capacity of their employees to improve service delivery to the clients.

Key Words: Service Quality, Customer Loyalty, Service Reliability and Service Responsiveness

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