Service Marketing Mix and Customer Satisfaction: An Empirical Study on Motor Insurance Industry in Sri Lanka.

Abstract

The insurance industry is one of the fasters growing service sector in Sri Lankan context. When marketing this service, due care is to be taken in the quality of the service and customer satisfaction in order to enhance the customer loyalty towards the service. Therefore, it is very much important to blending all the 7Ps of service marketing in their marketing management activities to retain the existing customers as well as to attract potential ones. This study aims to test the impact of extended marketing mix towards customer satisfaction with related to the motor insurance industry in Sri Lanka. The target population of the study was the customers of five insurance companies those are residing in Western province. The sample size was determined as 300, and convenience sampling method was applied to collect data from the respondents with a structured questionnaire. Multiple regression statistics were used to identify the relationship between the elements of services marketing mix and customer satisfaction. Findings revealed that price, promotion, process, people and physical evidence have a positively significant effect towards the consumer satisfaction. Product and place were found having no significant impact on customer satisfaction. Results provide real insight for decision-makers to understand what actually influenced for customers to turn towards insurance industry in Sri Lankan context.