Designing and Explaining the Customer Loyalty Model in Insurance Industry (Case Study: Karafarin Insurance Company)

Today, organizations seek to identify and apply effective methods and models for generating loyalty. They seek to satisfy the customers beyond their own expectation and to achieve loyalty through long-standing and profitable contact. In this study of customer loyalty model in insurance industry, the relation between the quality of tangible and intangible services and customers’ attitudinal and behavioral loyalty has been studied. The survey population is customers of Karafarin Insurance Company in Mashhad, Iran. 188 holders of the three classes of property, liability, and personal insurance were randomly chosen. Data were analyzed via path analysis method, using Smart-PLS software. Results show that the proposed model fits the data. Moreover, not only the relation between service quality and customers’ satisfaction but also the inevitable role of customers’ satisfaction in generating attitudinal and behavioral loyalty has been demonstrated.