Academic journal article International Journal of Marketing Studies

The Effect of Services Marketing Mix Dimensions on Attracting Customers and Retaining Them: The Case of Jordanian Insurance Companies

Academic journal article International Journal of Marketing Studies

The Effect of Services Marketing Mix Dimensions on Attracting Customers and Retaining Them: The Case of Jordanian Insurance Companies

Article excerpt

Abstract

This study aims at diagnosing services marketing mix dimensions and their effects on attracting customers and retaining them. The questionnaire was distributed to 150 customers from 15 different companies; 107 questionnaires were returned and 100 of them were usable. The study used SPSS to analyse the results to reach the result that there is a positive effect for the services marketing mix dimensions; physical evidence, service providers and process of service providing and their effect on attracting customers and retaining them and establishing mutual trust between insurance companies in the research sample. The research recommends the insurance companies should foster and enhance the process of retaining the current customers and searching for new ones. Also, providing new services that meet and exceed the customers' need achieves mutual benefits for both companies and customers.

Keywords: services marketing mix, Jordanian insurance companies, attracting, retention, Amman

1. Introduction

Services marketing mix is considered one of the most important tools that of marketing process that measures customers' satisfaction. Moreover, It considers as one of the influencing strengths in achieving a material returns for the customer institutions, profitability, obtaining a competitive advantage, and gaining customers loyalty and trust to be loyal for the company and its products, this shows the success of marketing process in competition environment (Bu-Moarafi, 2006). Marketing mix is not a theory, but a conceptual framework that determines the principal decision making managers make in configuring their offerings to suit consumers' needs (Goi, 2006).

Borden (1964) has developed the concept of services marketing mix for the first time in the 1960s. Since then, he defined the elements of marketing mix (Product, Price, Place (distribution), and promotion) in which specialized only with industrial sector. This due to his addressing the marketing mix for trainable items, meanwhile he didn't include services that have high degree of intangibility. Later on, McCarthy (1964) came with a developed model for service marketing mix, in which he mentioned the point that this mix is not fit all institution, meanwhile each institution can adapt and modify it in way fits its conditions, and it's potential. Upon that, service marketing mix became a concept that contains seven elements, in which three of these elements were added to suite the nature of service activity, namely: physical evidence, service providers, and process of service providing (Lovelock & Wirtz, 2011).

1.1 Study Problem

Many previous studies have proved that insurance companies in Jordan are not able to fulfil the society's demands of insurance services. These companies started to work for seller's market in which it is contrary to the nature of other institutions and companies that work at the same field in other parts of the world. This in the time that the Jordanian government is seeking to join World Trade Organization (WTO) this to increase the number of institutions and private companies as well increase the intense competition between all of them (Auboin & Engemann, 2013). This competition cannot be faced unless new creative methods of effective marketing mix and service performance adapted.

1.2 Study Questions

The problem of the study aims to fulfil the following questions:

1.2.1 The First Main Question

Do services marketing mix dimensions effect customers' attraction and retention in Jordanian insurance sector? This question includes the following sub-questions:

1. Does physical evidence affect attracting customers and retention them (establishing positive relations with customers, trust) in insurance companies?

2. Do service providers affect attracting customers and retaining them (establishing positive relations with customers, trust) in insurance companies?

3. Do processes of service providing affect attracting customers and retention them (establishing positive relations with customers, trust) in insurance companies

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