Assessing the Relationship Between Service Quality and Customer Satisfaction in the Malaysian Automotive Insurance Industry

• Main Authors: Anantha Raj A. Arokiasamy, Huam , Hon Tat
• Format: Article
• Published: IDOSI Publications, 2014
• Subjects: HB Economic Theory; HB615 Entrepreneurship; HC Economic History and Conditions
• Online Access: http://library.oum.edu.my/repository/943/1/library-document-943.pdf; http://library.oum.edu.my/repository/943/
• Institution: Open University Malaysia

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)