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Customer and Sales Orientation of Franchising-Based Insurance Agent Format: Their Effects on Customer Trust, Identification, and Intention to Renewal Contract : focused on the social exchange theory

The Korean Journal of Franchise Management / The Korean Journal of Franchise Management, (E)2508-4593
2024, v.15 no.3, pp.1-15

Lee, Yong-ki

Abstract

Purpose: The insurance market is steadily growing, with General Agencies (GA) experiencing rapid sales increases. GAs need marketing strategies to boost contract renewal intentions by effectively managing customer relationships. This study examines the impact of perceived customer orientation and sales orientation on customer trust, identification, and renewal intentions with GA insurance planners. Research design, data, and methodology: The study surveyed customers who subscribe to insurance products from GA-affiliated insurance planners. Out of 615 respondents, 251 valid responses were analyzed using frequency analysis, measurement models, and structural equation modeling (SEM) with SmartPLS 4.0. Result: The study revealed that customer orientation positively affects cognitive trust and sense of identification. In contrast, sales orientation did not significantly impact customer trust or identification. Additionally, customer trust positively influences sense of identification, and both trust and identification positively affect the intention to renew the contract. Conclusions: Implementing a customer-oriented marketing strategy is essential for providing tailored customer management services and maintaining or improving the quality of customer relationships for insurance planners. Given that insurance products require long-term management, it is crucial for planners to build trust, enhance customer identification, and offer continuous customer management to meet customers' needs effectively.

keywords
고객지향성, 판매지향성, 고객 신뢰, 일체감, 재계약 의도, Customer Orientation, Sales Orientation, Customer Trust, Identity, Repurchase Intentions

The Korean Journal of Franchise Management