Document Type : Case Study

Authors

Department of Business Management, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran

Abstract

Word of mouth is of critical importance for marketers and many scholars believe that word of mouth is one of the most effective and efficient advertising ways. Moreover, relationship marketing causes the costs of attracting new customers through long-term relationships with current customers and in this way increases firm profitability. Indeed, relationship marketing leads to customer satisfaction and loyalty through creating commitment and trust. Loyal customer also influences company’s word of mouth. Thus, this research conducted focused on studying the effect of relationship marketing on life insurance word of mouth. This is an applied research; and is a descriptive, filed study. Research statistical population was life insurance clients of Karafarin Insurance Agents in Mashhad. 384 individuals selected as research sample through simple random sampling method. Data collected through questionnaire. Questionnaire reliability measured through using Cronbach alpha. Research hypotheses also were tested by structural equation modeling (SEM). The results of analyzing research hypotheses indicated that relationship marketing directly influences life insurance word of mouth. In addition, customers’ trust also influences their satisfaction of buying life insurance. Customers’ commitment influences their satisfaction of buying life insurance; furthermore, customers’ satisfaction influences customers’ loyalty to buy life insurance. And finally, customers’ loyalty influences life insurance word of mouth.

Keywords

Abdul Mauhmin, A. G., (2002), "Effects of suppliers marketing program variables on industrial buyer relationship satisfaction and commitment", Journal of Business & Industrial Marketing, Vol. 17, No. 7, pp. 637-651.
Almani, A., Shirvani, H. A., & Gilaninia, s., (2012),"A study of factors influencing positive word of mouth in the banking industry", Middle –East Journal of Scientific Research, 11(4), pp. 454-460.
Beerli, A., Martin J. A., & Quintana, A., (2004), "Customer loyalty in the retail banking market", European Journal of Marketing, Vol. 38, No. 13, pp. 253-275.
Chen, M. F., & Mau, L. H., (2009), “The Impacts of Ethical Sales Behavior on Customer Loyalty in the Life Insurance Industry ", The Service Industries Journal, vol. 29, pp. 59-74.
Cheng, F. C., Chen, S. J., & Jian, J. L., (2013), “the influence of perceived university service quality on word-of-mouth activities-psychological contract cognition as the mediator ", conference business and information. bali july 7-9.
Cutler, F., and Armstrong, G. (2011). “Marketing principles”. Translated by Parsaeiyan, A. New World publication, second vol.
Dehdashti shahrokh, Z., Taghavi fard, M.T., and Rostami, N. (2010). “Measurement model of the effect of banks’ bran reliability on customers’ commitment and loyalty”. Journal of Iran management sciences, 5 (20). Pp. 69-88.
Dennis, L., Duffy, A. F., (2005), " The evolution customer loyalty strategy ", Journal of Consumer Marketing, Vol. 12, No. 7, pp. 284-286.
Fournier, S., & Lee, L., (2009), “Getting Brand Communities Right ", Harvard Business Review, April.
Gaurav, K., & Mohammad Khan. K., (2013), " Impact of Relationship Marketing and Perceived Service Quality on Customer Loyalty: An Agenda for Inquiry ", The International Journal Of Management, Vol 2. pp. 46-52.
Gee, R., Coates, G., & Nicholson, M., (2008), “Understanding and profitably managing customer loyalty ", Marketing Intelligence & Planning, vol. 26, no. 4, pp. 59-374.
Gordon, L., (2006), " Innovation diffusion and relationship marketing: An empirical study of factors influencing the intention to adopt the innovation of modular facility technology", Dissertation, Touro University Int.
Haji karaimi, A., Hamidizade, M.R., and Mansouri, T. (2013). “Studying and analyzing the effects of perceived justice on customers’ behavioral tendencies and quality of perceived services”. Journal of development management, 5(9). Pp. 1-27.
Hamidizade, M., Haji karimi, A., and Babaie, M. (2009). “Designing and explaining customers’ loyalty procedural model”. Journal of Business Management studies, 1(2). Pp. 133-170.
Hassan gholipour, T., Haghighi,. Barari, M., and Karimi, K. (2012). “The effect of seller professional ethic on forming sustained relationships between customer and organization”. Business management prospect, No. 9. Pp. 117-132.
Hayeri, M., Gholipour, A., and Gilani niya, Sh. (2011). “Relationship marketing”. Marketing management journal, No.8. pp. 168-191.
Heydarzade, K., Ghafari, F. and Farzane, S. (2011). “Studying the effect of brand credit on customers’ loyalty in Iran banking industry”. Management studies, No. 88. Pp. 69-88.
Hosseini, A. (2009). “Marketing, the basic requirement of innovative banking”. Welfare quarterly, No. 114. Pp. 2-4.
Ibrahimi, A., and Mansouri, S. (2013). “Studying the effect of brand mental image and service quality on relationship marketing and customers’ behavioral tendencies”. Business management perspective, No. 14. Pp. 153-170.
Jalili, N., Behboudi, M., and Najafi, K. (2014). “Revised relationship marketing model in service sector (case study: Insurance industry)”. First marketing national meeting: Opportunities and challenges.
Kazemi, M., and Khojaste, Gh. (2010). “Studying the effect of relationship marketing on customers’ trust and loyalty (Case study: Fars province Saderat Bank)”. Second international conference of financial service marketing.
Keller, B., & Scott, L., (2006), “The Impact of Internal Marketing Efforts in Distribution service operations ", Journal of business Logestics, Vol. 27, No. 1, pp. 109.
Khakhrangin, V. (2013). “Studying the effect of relationship marketing on the service and relationship quality, customer loyalty in life insurance and investment of Karafarin insurance company, Tehran”. M.A. thesis, Islamic Azad University, Tehran branch, Faculty of Management, Business group, Insurance.
Kim,W.G., Sun,B., & Kim, H.J., (2009), " Multidimensional customer based brand equity and its consequences in midpriced hotels ", Journal of Hospitality and Tourism Research, 32(20), pp. 235-254.
Kordnaeij, A., Bakhshizadeh, A., Shabany, R., (2013), “The Outcomes of Relationship Marketing Strategy in Banking Industry by Emphasizing on Word of Mouth ", International Research Journal of Applied and Basic Sciences, Vol, 4 (7), pp. 1837-1845.
Lages, L. F., Lancastre, A., & Lages, C., (2008), " The B2B-RELPERF scale and scorecard: Bringing relationship marketing theory into business-to-business practice ",Industrial Marketing Management, Vol. 37, No. 6, pp. 686-697.
Mahdavi, Gh., and Majed, V. (2011). “Analyzing effective economic, social, and psychological factors on life insurance demand in Iran”. Journal of Economic modeling studies. No. 5. Pp. 21-46.
Mehrara, M., and Rajabiyan, M. (2005). “Life insurance request in Iran and oil exporting countries”. Journal of Economic studies, 41 (74). Pp. 57-81. 
Mohammad, A. A. S., & Alhamadani, S. Y. M., (2011), "Service Quality Perspectives and Customer Satisfaction in Commercial Banks Working in Jordan ",Middle Eastern Finance and Economics, Issue 14, pp. 60-72.
Moorman‚ C.‚ Zalman‚ G.‚ & Deshpande‚ R., (1992), relationship between providesand users of market research: the dynamics of trust within and between organizations. journal of marketing research‚ vol. 29 pp. 314 -28.
Murphy, P. E., Laczniak, G. R., & Wood, G., (2007), An ethical basis for relationship marketing: a virtue ethics perspective, European Journal of Marketing, 41 (1/2), pp. 37-57.
Nayebzade, Sh., and Shahbazi, P. (2013). “Studying the relation between risk aversion and brand loyalty considering the role of customer’s trust and emotion”. Marketing management, No. 21. Pp. 15-26.
Ndubisi, N. O., (2007), Relationship marketing and customer loyalty, Marketing Intelligence & Planning, Vol. 25, No. 1, pp. 98-106.
Ogba, I., & Tan, Z., (2009), "Exploring the impact of brand image on customer loyalty and commitment in China ", Journal of Technology Management in China, 4, pp. 132-144.
Payne,A., (1994), " Relationship Marketing-making the customer count ", Managing Service Quality, Vol. 6, No. 4, pp. 29-31.
Pourzandi, M.A., and Najafi, M. (2011). “Studying the effect of e-banking service quality on customers’ satisfaction”. Management quarterly, 9(26). Pp. 29-42.
Ranjbariyan, B., and Barari, M. (2009). “The effect of relationship marketing basics on customers’ loyalty: comparing state and private bank”. Business management publication, 1(2). Pp. 83-100.
Sahin, A., Zehir, S. C., & Kitapci, H., (2011), “The Effects of Brand Experiences, Trust and Satisfaction on Building Brand Loyalty; an Empirical Research on Global Brands ". The Journal of Procedural Social and Behavioral Sciences, 20, PP. 1288-1301.
Sehat, S., Gravund, A., and Ghobadi, L. (2011). “Studying advertisement primary role in insurance industry”. Updates of insurance world, No. 156. Pp. 5-13. 
Sweeney, J., & Swait, J., (2008), "The effects of brand credibility on customer loyalty ", Journal of retailing and consumer Services, Vol. 15, pp.179-193.
Sweeny, J. C., Soutar, G. N., & Mazzarol, T., (2007), Factors influencing word of mouth effectiveness: receiver perspectives, European Journal of Marketing, 42(3/4), pp. 344-364.
Terawatanavong, C., Whitwell, G. J., & Widing, R. E., (2007), Buyer satisfaction with relational exchange across the relationship lifecycle, European Journal of Marketing, Vol. 41, No. 7/8, pp. 915-938.
Wangeheim, F. V., & Bayon, T., (2004), "The Effect of Word of Mouth on Services Switching", European Journal of Marketing, Vol. 38, No. 9.10, pp. 1173-85.
Yeh, Y.S., & Li, Y.M., (2009), " Building trust in m-commerce: contributions from quality and satisfaction ", Online Information Review, Vol. 33, pp. 1066-1086.
Zhaohua, D., Lu, Y., Wei, K. K., & Zhang, J., (2010), Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China, International Journal of Information Management, 30, pp. 289–300.