The objective of this study was to examine the conceptual model and to study the relationships between customer perceptions of the benefits of sales promotion, quality, adequacy of premium, and adequacy of information about the coverage of insurance services. The research model was tested with structural equation modeling (SEM) with a sample of 200 Slovenian users of insurance services. The results indicated that higher perceived benefits of sales promotion were associated with higher perceived quality of insurance services. In addition, higher perceived quality was associated with higher perceived adequacy of information about the coverage and the premium for insurance services. The study also found that higher perceived adequacy of premium was associated with higher perceived adequacy of information about the coverage of insurance services.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Alhabeeb M.J. 2002. Perceived product quality purchase value and price. Academies International Conference. Academy of Marketing Studies 7 (1): 9-14.
Anderson J. Gerbing D.W. 1988. Structural equation modeling in practice: a review and recommended two Babin B.J. Darden W.R. Griffin M. 1994. Work and/or fun? Measuring hedonic and utilitarian shopping value. Journal of Consumer Research 20 (March): 644-656.
Benazić D. 2006. Interdependence of life insurance service quality and premium. Tržište 18 (1-2): 67-80.
Beneke Đ. Flynn R. Greig T. Mukaiwa M. 2013. The influence of perceived product quality relative price and risk on customer value and willingness to buy: a study of private label merchandise. Journal of Product & Brand Management 22 (3): 218-228.
Bentler P.M. 1990. Comparative fit indexes in structural models. Psychological Bulletin 107 (2): 238-246.
Bollen K.A. 1989. Structural Equations with Latent Variables. Wiley-Interscience Publication.
Byrne B.M. 2001. Structural Equation Modeling with AMOS. Basic Concepts Applications and Programming. New Jersey: Lawrence Erlbaum Associates.
Campbell D.T. 1960. Recommendations for APA test standards regarding construct trait or discriminant validity. American Psychologist 15 (8): 546-553.
Chandon P. Wansink B. Laurent G. 2000. A benefit congruency framework of sales promotion effectiveness. Journal of Marketing 64 (4): 65-81.
Chapman J. Wahlers R. 1999. A revision and empirical test of the extended price-perceived quality model. Journal of Marketing Theory and Practice 7 (3) 53-64.
Chen P.-E. Lee C.-C. Lee C.-F. 2011. How does the development of the life insurance market affect economic growth? Journal of International Development 27 (7): 865-893.
Chen H.G. Liu J.Y.C. Sheu T.S. Yang M.H. 2012. The impact of financial services quality and fairness on customer satisfaction. Managing Service Quality 22 (4): 399-421.
Chi T. Kilduff P.P.D. 2011. Understanding consumer perceived value of casual sportswear: An empirical study. Journal of Retailing and Consumer Services 18 (5): 422-429.
Costa-Font J. Garcia J. 2003. Demand For Private Health Insurance: How Important Is The Quality Gap?. Health Economics 12 (7): 587-599.
Crews T. 2010. Fundamentals of Insurance. South-Western Cengage Learning: Mason.
Cronbach L.J. 1951. Coefficient alpha and the internal structure of tests. Psychometrika 16 (3): 297-334.
Cummins J.D.Doherty N.A. 2006. The Economics of Insurance Intermediaries. Journal of Risk and Insurance 73 (3): 359-396.
Darke P.R. Chung C.M.Y. 2005. Effects of pricing and promotion on consumer perceptions: it depends on how you frame it. Journal of Retailing 81 (1): 35-47.
DelVecchio D. Puligadda. S. 2012. The effects of lower prices on perceptions of brand quality: a choice task perspective. Journal of Product & Brand management 21 (6): 465-474.
Dunn S.C. Seaker R.F. Waller M.A. 1994. Latent variables in business logistics research: scale development and validation. Journal of Business Logistics 15 (2): 145-172.
Eckardt M. Rathke-Doppner S. 2010. The Quality of Insurance Intermediary Services-Empirical Evidence for Germany. Journal of Risk and Insurance 77 (3): 667-701.
Eling M. Schmeiserb H. 2010. Special Issue on the Credit Crisis and Insurance. The Geneva Papers 35: 9-34.
Flis S. 1999. Zbrani spisi o zavarovanju Slovensko zavarovalno združenje. GIZ: Ljubljana.
Fornell C. Lacker D.F. 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18 (1): 39-50.
Ganguli S. Roy S.K. 2010. Service quality dimensions of hybrid services. Managing Service Quality 20 (5): 404-424.
Gayathri H. Vinaya M.C. Lakshmisha K. 2006. A pilot study on the service quality of insurance companies. Journal of Services Research 5 (2): 123-138.
Gera R. 2011. Modelling the service antecedents of favourable and unfavourable behaviour intentions in life insurance services in India: An SEM study. International Journal of Quality and Service Sciences 3 (2): 225-242.
Gronroos C. 1984. A service quality model and its marketing implications. European Journal of Marketing 18 (4): 36-44.
Gulati N.C. 2007. Principles of insurance management. Excel Books: New Delhi.
Hair J.F. Anderson R.E. Tatham R.L. Black W.C. 1998. Multivariate Data Analysis with Readings 5th ed. New York: Prentice-Hall International Englewood Cliffs.
Hair J.F. Black W.C. Babin B.J. Anderson R.E. 2010. Multivariate data analysis. New Jersey: Prentice Hall.
Harmon S.K. Hill C.J. 2003. Gender and coupon use. Journal of Product & Brand management 12 (3): 166-179.
Harris L.C. Goode M.M.H. 2004. The four levels of loyalty and the pivotal role of trust: a study of online service dynamics. Journal of Retailing 80 (2): 139-158.
Hirschman E.G. Holbrook M.B. 1982. Hedonic consumption: emerging concepts methods and propositions. Journal of Marketing 46 (3): 92-101.
Hoxmeier J.A. Nie W. Purvis G.T. 2000. The impact of gender and experience on user confidence in electronic mail. Journal of End User Computing 12 (4): 11-21.
Hussels S. Ward D. Zurbruegg R. 2005. Stimulating the Demand for Insurance. Risk Management and Insurance Review 8 (2): 257-278.
Jamal A. Peattie S. Peattie K. 2012. Ethnic minority consumers’ responses to sales promotions in the packaged food market. Journal of Retailing and Consumer Services 19 (1): 98-108.
Joreskog K.G. Sorbom D. 2002. LISREL 8: structural equation modeling with the SIMPLIS command language.
Lincolnwood: Scientific Software International. Kramaric T.P. Galetic F. 2013. The Role of the Overall Economic Development on the Insurance Market Growth-Evidence of the European Union. Journal of Applied Finance and Banking 3 (3): 157-168.
Kumar V. Madan V. Srinivasan S.S. 2004. Price discounts or coupon promotions: does it matter? Journal of Business Research 57 (9): 933-941.
Kumar R. Singh M. 2010. Using SERVQUAL Model for Comparative Service Quality Analysis of the Indian Nonlife Insurance Sector. Paradigm (14) 2: 1-19.
Laroche M. Pons F. Zgolli N. Cervellon M.-C. Kim C. 2001. Consumers use of price promotions: a model and its potential moderators. Journal of Retailing and Consumer Services 8 (5): 251-260.
Laroche M. Pons F. Zgolli N. Cervellon M.-C. Kim C. 2003. A model of consumer response to two retail sales promotion techniques. Journal of Business Research 56 (7): 513-522.
Lovelock C. Wright L. 2002. Principles of service marketing and management. Prentice Hall: Upper Saddle River.
Matzler K. Wurtele A. Renzl B. 2006. Dimensions of price satisfaction: a study in the retail banking industry. International Journal of Bank Marketing 24 (4): 216-231.
Nunnally J. C. 1978. Psychometric Theory. Mc-Graw-Hill Book Company: New York.
Nusair K. Yoon H.J. Naipaul S. Parsa H.G. 2010. Effect of price discount frames and levels on consumers’ perceptions in low-end service industries. International Journal of Contemporary Hospitality Management 22 (6): 814-835.
Parasuramanom A. Zeithaml V. Berry L. 1985. A Conceptual Model of Service Quality and Its Implications for Future Research. Journal of Marketing 49 (4): 35-48.
Parasuramanom A. Zeithaml V. Berry L. 1988. SERVQUAL: A Multiple Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing 64 (1): 12-40.
Rao A. Monroe K.B. 1988. The moderating effect of prior knowledge on cue utilizations in product evaluations. Journal of Consumer Research 19 (2): 253-264.
Sandhu H.S. Bala N. 2011. Customers’ Perception towards Service Quality of Life Insurance Corporation of India: A Factor Analytic Approach. International Journal of Business and Social Science 2 (18): 219-231.
Sanjeev A. Kenneth T.R. 2002. Cross-national applicability of a perceived quality model. The Journal of Product and Brand Management 11 (4/5): 213-236.
Schumacker R.E. Lomax R.G. 2004. A beginner’s guide to structural equation modeling. London: L. Erlbaum.
SIA - Slovenian Insurance Association. Statistical Insurance Bulletin 2009. 2009. Retrieved January 17 2015 from http://www.zav-zdruzenje.si/wp-content/uploads/2012/11/Statisticni-zavarovalniski-bilten-2009.pdf.
SIA - Slovenian Insurance Association. Statistical Insurance Bulletin 2013. 2013. Retrieved August 21 2013 from http://www.zav-zdruzenje.si/portfolio/statisticni-zavarovalniski-bilten-2013/.
SIA - Slovenian Insurance Association. Statistical Insurance Bulletin 2014. 2014. Retrieved January 19 2015 from http://www.zav-zdruzenje.si/wp-content/uploads/2014/07/Statisticni-zavarovalniski-bilten-2014.pdf.
Siddiqui M.H. Sharma T.G. 2010. Measuring the Customer Perceived Service Quality for Life Insurance Services: An Empirical Investigation. International Business Research 3 (3): 171-186.
Šebjan U. Bastič M. 2013. Service Components and Their Importance in Health Insurance Changes. Naše gospodarstvo 59 (3-4): 14-25.
Tsao Y.-C. Sheen G.-J. 2012. Effects of promotion cost sharing policy with the sales learning curve on supply chain coordination. Computers & Operations Research 39 (8): 1872-1878.
Ulbinaite A. Kucinskiene M. 2013. Insurance service purchase decision-making rationale: expert-based evidence from Lithuania. Ekonomika 9 (2): 137-155.
Vaughan E.J. Vaughan T.M. 2008. Fundamentals of Risk and Insurance. John Wiley & Sons: Hoboken. de Vaus D.A. 1995. Surveys in Social Research 4th ed. Allen and Unwin Pty Ltd: Sydney.
Verma H.V. 2012. Services Marketing. New Delhi: Person Education.
Walker J. Baker J. 2000. An exploratory study of a multiexpectation framework for services. Journal of Services Marketing 14 (5): 411-431.
Walsh G. Shiu E. Hassan L.M. 2013. Replicating validating and reducing the length of the consumer perceived value scale. Journal of Business Research 31 May: 1-8.
Ward D. Zurbruegg R. 2000. Does Insurance Promote Economic Growth? Evidence from OECD Countries. The Journal of Risk and Insurance 67 (4): 489-507.
Weng J.T. de Run E.C. 2013. Consumers’ personal values and sales promotion preferences effect on behavioural intention and purchase satisfaction for consumer product. Asia Pacific Journal of Marketing and Logistics 25 (1): 70-101.
Williams C.A. Smith M.L. Young P.C. 1998. Risk Management and Insurance. Boston: Irwin/McGraw-Hill.
Yoo D.K. Park J.A. 2007. Perceived service quality. Analyzing relationships among employees customers and financial performance. International Journal of Quality & Reliability Management 24 (9): 908-926.
Zeithaml V.A. Bitner M. 2000. Service Marketing. McGraw- Hill: New York.
Zweifel P. Eisen R. 2012. Insurance Economics. Springer: Berlin.