Assessing the Relationship Between Service Quality and Customer Satisfaction in the Malaysian Automotive Insurance Industry
Globalization and open market system have created the complex competitive environment not only for the manufacturing sector but also for the service sector. The necessity to own a car coupled with affordable prices across the globe due to innovative production cost in the automotive industry has s...
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| Main Authors: | , |
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| Format: | Article |
| Published: |
IDOSI Publications,
2014
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| Subjects: | |
| Online Access: | http://library.oum.edu.my/repository/943/1/library-document-943.pdf http://library.oum.edu.my/repository/943/ |
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| Institution: | Open University Malaysia |
| Summary: | Globalization and open market system have created the complex competitive environment not only
for the manufacturing sector but also for the service sector. The necessity to own a car coupled with affordable
prices across the globe due to innovative production cost in the automotive industry has surged in the last two
decades. Every car owner is legally bound to have car insurance, be it in the developed countries or developing
countries. By servicing their customer base with superior and professional service, many insurance companies
are able to reap a huge profit. Satisfying their customer is essential in every service industry and since these
issue plays a critical role for the insurance companies, assessing the relationship between service quality and
customer satisfaction can help managers to meet the needs’ of customer better by providing superior service.
The main aim of this study is to assess the relationship between service quality and customer satisfaction in
the Malaysian Automotive Insurance industry. A total of 650 online structured questionnaires were mailed to
respondents from five car insurance directories and 380 respondents replied to the questionnaire. Data collected
were analyzed using Pearson Correlation and Multiple Regression Analysis. The results indicate that good
relationship exists between service quality dimensions (reliability, empathy, assurance, responsiveness and
tangibility) and customer satisfaction. This study could benefit other financial service companies to gauge and
enhance their customer satisfaction level with improved service performance. (Abstract by authors) |
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