【2021/07/01 Vol. 28, No. 3】
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“Customer Relationship Development: An Empirical Study on Insurance Industry in Taiwan”
Author: Yung-Ching Ho, Hsiu-Ju Lu
Keywords: Relationship Marketing, Relationship development, Customer Satisfaction, Transitive Trust, Trust
Abstract: How to establish, develop and maintain long-term customer relationship is important to the company. Trust is the basis of long-term customer relationship and it increases customer satisfaction, loyalty and buying more product/service. Relevant researches of trust conducted in the past is plenty and mainly adopts the cross-sectional perspective. This study takes the dynamic perspective to research how the antecedents affect trust in different customer relationship phases (awareness, exploration, expansion, commitment). In order to understand how trust affects the two outcomes in different customer relationship phrases, satisfaction factored into two separate constructs: satisfaction with the relationship and satisfaction with the results. Relationship investment has a large, direct effect on seller objective performance. This study provides for salespeople and managers to think how to adopt strategies in different customer relationship phases to get the most reward. The results show that the effect of antecedents differs in different customer relationship phases. Transitive Trust is the most critical antecedent, the next are expertise, guanxi between salesperson and customer, gratitude. Mediating effect of trust on satisfaction with the relationship is obvious to satisfaction with the results. When managing customer relationship, the company adopts appropriate strategies in different customer relationship phases would get most relationship investment reward. Finally, this study provides several implications and suggestions in theories, practices and future research.
“Testing A Hypothesized Customer and Business Partner Co-Creation Marketing Model”
Author: Chyi Jaw, Kuei-Ju Chi, Yu-I Lee
Keywords: Business Partner Co-creation, Customer Co-creation, Co-creation Benefits
Abstract: In recent years, co-creation has become an important approach of business innovation. With the majority of the previous research focusing on customer co-creation, business partner co-creation has received significantly less attention in the past. It is very rare to find the research results in literature regarding the comparison between customer and business partner co-creation. In order to explore the connotation of the values arise from different co-creations, the present research tries to build a hypothesized model to describe the co-creation marketing values of both sources customer co-creation and business partner co-creation. The results of our empirical study prove that co-creation (as opposed to internal innovation) significantly raises consumers’ product benefit perceptions, company evaluations, and purchase intention. This investigation evidences the different effects of both co-creation sources and proposes a two-stage marketing value model of co-creation. Our research complements the shortcomings of previous empirical studies that are mostly limited to customer co-creation and makes the research in this field more comprehensive and complete. Finally, this study contributes to invaluable strategies for open innovation decisions in practice.
“On the Factors Affecting the Surrenders Behavior of US Life Insurance Contracts”
Author: Mi-Hsiu Chiang, Li-Xin Huang, Kuan-Hsun Lin
Keywords: Surrender/Lapse rate, Interest Rate Hypothesis, Emergency Fund Hypothesis, Policy Replacement Hypothesis
Abstract: In support of prior empirical findings that document lapsation as driven by both endogenous and exogenous factors, in this article we consider lapsation as jointly determined by the policy holders’ voluntary surrender and non-voluntary lapse rates. By verifying the Interest Rate Hypothesis, the Emergency Fund Hypothesis, and the Policy Replacement Hypothesis (PRH) that are pertinent to the life-insurance lapsation literature, our empirical findings suggest that the PRH can best explain the termination behavior in the American life insurance market after the subprime mortgage crisis. Further empirical outcomes confirm that both real and nominal per capita incomes consistently exhibit negative effects on the voluntary surrenders. These effects are statistically significant and attest to the voluntary surrenders’ immunization of money illusion with rising nominal incomes. That is, a policy holder’s voluntary surrender would entail he/she possesses higher financial literacy. Under alternative measures of surrender/lapse either by their cash-value or termination-rate in total, lapse activities are found to be significantly and negatively related to the unemployment rate and the percentage total population of aged 65 and over—suggesting that in times of economic uncertainty, a decrease in the policy holders’ lapse rate translates into a sustaining demand for life insurance protection.
“On the Way to A Personal Brand: Exploring the Influence of the Insurance Salesperson’s Image Management on Customer Orientation Behaviors”
Author: Kuo-Hsiung Chang, Yun-Chia Tang, Yi-Shan Lin
Keywords: innovative, self-efficacy, expected image gains, expected positive performance outcomes, customer orientation
Abstract: Customer orientation is considered as an important issue for researchers, however, when we discussed customer orientation, much of existing research focus on why companies or organizations execute customer orientation or how to affect salesperson customer orientation behaviors, less of existing research argues from salesperson’s image management viewpoint. Therefore, this research is aimed at why salesperson has customer orientation behaviors from image management viewpoint. Whether salesperson’s image management: “expected image gains” and “expected positive performance outcomes” would affect the salesperson customer orientation behaviors, and the antecedents of salesperson customer orientation behaviors are “customer orientation as a job requirement,” “customer orientation as innovative” and “self-efficacy.” The empirical context is provided by quantitative research, paid through the paper questionnaire, sample from insurance business’s salesperson, with the effective response rate 150 out of 200. After we examine the effects of the research, we find that salesperson’s image management positively affects salesperson customer orientation behaviors, and all of the antecedents of salesperson customer orientation behaviors positively affect salesperson’s image management except self-efficacy which doesn’t affect expected image gains. Finally, the implications of the findings from this research for both academic and practitioner are discussed.