Academic journal article Journal of Emerging Trends in Economics and Management Sciences

The Role of Personal Selling in Enhancing Client Satisfaction in Nigerian Insurance Market

Academic journal article Journal of Emerging Trends in Economics and Management Sciences

The Role of Personal Selling in Enhancing Client Satisfaction in Nigerian Insurance Market

Article excerpt

Abstract

Nigerian insurance industry is beset with a number of challenges, the most prominent is the low awareness level among the insuring public. This may be resolved through effective personal selling as promotional tool for insurance services. Personal selling is a unique element of marketing, it does not only create awareness and provide information about the features of the products; it also adopts individualistic approach that is designed to meet specific need of prospects and specific market segments. This study will be useful to insurance and marketing practitioners who wish to understand why there is variation in the demand for similar products of different producers. It will arouse the reasons for constant review and update of marketing strategies as response to changes in the business environment.This paper examines the roles of personal selling in enhancing clients' satisfaction in Nigeria insurance market. A descriptive cross-sectional survey research was adopted and 110{One Hundred and Ten} respondents from selected insurance firms were randomly selected. Data procedures were done using descriptive and inferential statistical instruments while independent T-test was used to test the hypotheses. Findings revealed that personal selling strategy is the most beneficial marketing communication tool that should be embraced by Nigerian firms. It may also be used to improve the image of the industry.

Keywords: insurance, personal selling, sales promotion, marketing communication and technical selling

INTRODUCTION

A product that is well conceived and produced through the combination of the most modern technologies and the best of inputs cannot sell itself. There is the need for the existence of such product to be made known to the target market. A good or service should respond favourably to the marketing mix which will result to the full performance of any good or service in the market. However, an important element of the marketing mix is promotion, otherwise known as marketing communication. This is the element that brings the existence of product or service to the awareness of consumers or clients. It further educates potential and actual buyer of a product on the usage, benefits, availability, price and other features of the product.

The New Zealand Qualification Authority, (2008) described personal selling as retail and wholesale activities in which a salesperson actively presents products to customers in seeking to make a sale. It could also be defined as a two-way flow of communication between a potential buyer and a salesperson that is designed to identify the potential buyer's needs, match these needs to one or more of the firm's products or services and convince the buyer to purchase the product.

Considering the nature of insurance product and the way it is perceived by the general public, particularly in Nigeria, personal selling seems to be a useful promotional tool for it. Avila, Inks and Avila, (2006) argued that for years the insurance industry has placed great emphasis on personal selling and the ability of an agent to use a process to generate sales.

STATEMENT OF THE PROBLEM

Insurance, despite its socio-economic responsibility of providing cushions against risks faced by individuals and corporate organizations, Nigerians still do not consider it attractive. The sales recorded by service firms like insurance companies depend on the acceptability of the service offered. Expectedly, consumers will only accept quality products capable of satisfying their wants. The challenge faced by the Nigerian insurance firms therefore is how to convince the consumers of insurance service of the quality of their offerings and persuade them to buy. Nigerian insurance industry is beset with a number of challenges (Gbede, 2003). The most challenging is the low awareness level among Nigerians couple with the poor image that characterized the industry. Nigerians do not know anything about insurance, they did not trust insurance". …

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