The relationship of governance mechanisms and customer loyalty in insurance industry: the difference of internet insurers and traditional insurers
by Heng-Li Yang, Ya-Ling Wu
International Journal of Services and Standards (IJSS), Vol. 4, No. 3, 2008

Abstract: Governance mechanisms could establish institutional interactions across customer relationship maintenance. This study aims to develop and empirically test a model exploring the long-term relationship of insurance company and customers. Data were collected online and via paper questionnaires from customers of the insurance industry in Taiwan. According to the results, four governance mechanisms (explicit contract, implicit contract, bonding, and trust) have significant positive impacts on customer loyalty. Gaining a steady and collaborative relationship with customers would need to apply governance mechanisms and personalised information technology. It would become a future standard of insurance services.

Online publication date:: Fri, 27-Jun-2008

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