Time-varying effects in the analysis of customer loyalty: A case study in insurance

Guillén, Montserrat; Nielsen, Jens Perch; Scheike, Thomas; Pérez-Marín, Ana M.

doi:10.1016/j.eswa.2011.09.045

Cited by 49 publications

(43 citation statements)

References 44 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…By tradition, customer loyalty is divided into two components one is based on behavior and the other is based on attitudes (Guillén et al 2011). Due to the rapid development of the service industry in recent years, it is evident that the exploration of customer loyalty has evolved from tangible product brands into intangible service sectors, and from actual purchasing behavior into composite measures of behavior and attitude (Lin 2012).…”

Section: Loyaltymentioning

confidence: 99%

Analyzing the Influence of Ethical Sales Behavior on Customers Loyalty through Customer Satisfaction and Trust in Insurance Company

Pezhman¹,

Javadi²,

Shahin³

2013

IJARBSS

View full text Add to dashboard Cite

The purpose of this study is to analysis of a model for investigation the influences of ethical sales behavior on customer loyalty in insurance industry with a case study in Parsian Insurance Company in Iran. The theoretical topics collected by means of library and Internet and the data was obtained from questionnaire. To analyze the data, the structural equation modeling embedded in the AMOS software was applied. The results of analyzing data reveal that the presented model is an appropriate model for investigation the influence of ethical sales behavior on customer loyalty in insurance company. Results also show that the salesperson's ethical behavior has an important influence on customer satisfaction from salesperson and their trust to the seller. Ethical behavior also has great impact on customer loyalty to the insurance; however this influence is not proven directly, it is mediated by customer satisfaction and trust to the salesperson. International Journal of Academic Research in Business and Social SciencesSeptember , Vol. 3, No. 9 ISSN: 2222 755 www.hrmars.com/journals Introduction Nowadays economical countries are moving toward service industries. In this regard, we could point to the insurance industry, which is operating in various branches throughout the world. On the other hand, the customer ability of selection among various companies has led to more competition in the market of this industry. Customer satisfaction is also not enough for companies, since it is not the sign of repurchasing, and so companies are looking for developing the loyalty among their customers. Loyal customers by their repurchasing, advertising with the word of mouth and … consider as a profitable and long-term investments for companies. On the other hand, in services, the effect of ethical sales behavior observe far greater than sales of tangible goods. Ethical sales behavior could name as a non-price factor, however it has a high financial impact. The focus on building successful customer relationships puts salespeople in a critical strategic position relative to the customer (Alrubaiee 2012; Hansen and Riggle 2009). Also it could nominate as a means of differentiation to achieve higher revenue growth and improved market share. In this way, the purpose of this study is to propose and analysis of a model for investigation the influences of ethical sales behavior on customer loyalty in insurance industry with a case study in Parsian Insurance Company in Iran.

show abstract

Section: Loyaltymentioning

confidence: 99%

Analyzing the Influence of Ethical Sales Behavior on Customers Loyalty through Customer Satisfaction and Trust in Insurance Company

Pezhman¹,

Javadi²,

Shahin³

2013

IJARBSS

View full text Add to dashboard Cite

show abstract

“…Guillén et al investigate time-varying effects in the analysis of insurance customer loyalty. Their results showed that the kind of contracts held by customers and the concurrence of an external competitor have strongly influence on customers loyalty; but those factors become much less significant some months later [27].…”

Section: Related Workmentioning

confidence: 98%

Predicting Behaviors Of Insurance Costumers By Using The Genetic Algorithm

Bagheri

Ziaratban

Tarokh

2015

J. Math. Computer Sci.

View full text Add to dashboard Cite

Improving customers' satisfaction, retaining loyal customers, and acquiring new customers are the most important goals of companies. Because of existing competition conditions among insurance industries, especially in optional insurances such as vehicle body insurance, implementing policies which have benefits for both customers and insurance companies can increase the corporation profitability and customers' satisfaction. In this paper, general policies of vehicle body insurance in Iran are investigated. In this way, a non-linear function (Cj) is proposed to separate profitable and harmful customers. This function is based on some insurance features of customers such as age of a vehicle, vehicle price, vehicle type, and number of years without accident. Customers are categorized based on the calculated values of Cj in which all parameters are optimally set. The parameters have to be set in the training phase to calculate reliable Cj values for customers. Parameters of Cj are set so that in a subset of the customers of the training set for which the value of Cj is greater than a threshold (Th), the number of profitable customers and disadvantageous customers should be maximized and minimized, respectively. A customer with positive M (monetory) value is a profitable customer. To optimize this multivariable problem with large number of parameters, the genetic algorithm is used. After optimizing the parameters in the training phase by using GA, the behaviors of the customers in the test set are predicted. In the prediction phase, it was estimated that a costumer is profitable or not, even he had accidents and received recompenses from the company. If a customer is predicted as profitable, the company allows him to enjoy some discounts. In the current Iranian insurance policies, all discounts are canceled for next insurance year if a customer has accidents and gives recompense from the company. By implementing the proposed policy, the customers' satisfactions are increased and also more new customers are acquired from other insurance companies.

show abstract

“…Schweidel et al (2011) observe the same phenomenon in data from a multi-line insurance provider in Denmark, which took into account historical information and anticipated lapses. Guillen et al (2012) find future profit prospects in a similar context to be very informative (see also Guillen et al 2011;Guelman et al 2012). Kaishev et al (2013) present a profit model specifically designed for products for which the profit consists of a stochastic income at the point of sale, minus the cost of contacting a specific customer and the stochastic cost generated by the customer's actions.…”

Section: Literature Reviewmentioning

confidence: 99%

Price and Profit Optimization for Financial Services

Bolancé

Guillén

Nielsen

et al. 2018

Risks

View full text Add to dashboard Cite

Prospective customers of financial and insurance products can be targeted based on the profit the provider expects to earn from them. We present a model for individual expected profit and two alternatives for calculating optimal personalized prices that maximize the expected profit. For one of these alternatives, we obtain a closed-form expression for the price offered to each prospective customer; for the other, we need to use a numerical approximation. In both approaches, the profits generated by prospective customers are not immediately observed, given that the products sold by these companies have a risk component. We assume that willingness to pay is heterogeneous and apply our methodology using real data from a European insurance company. Our study indicates that a substantial boost in profits can be expected when applying the simplest optimal pricing method proposed.

show abstract

Time-varying effects in the analysis of customer loyalty: A case study in insurance

Cited by 49 publications

References 44 publications

Analyzing the Influence of Ethical Sales Behavior on Customers Loyalty through Customer Satisfaction and Trust in Insurance Company

Analyzing the Influence of Ethical Sales Behavior on Customers Loyalty through Customer Satisfaction and Trust in Insurance Company

Predicting Behaviors Of Insurance Costumers By Using The Genetic Algorithm

Price and Profit Optimization for Financial Services

Contact Info

Product

Resources

About