Background and Purpose: An increasing number of insurance companies and the intensity of competition in this field require research on customer perceptions of the components of insurance services and insurance company. The objective of this study was to examine the conceptual model and to study the relationships between customer perceptions of the innovation, reputation, adequacy of premium, and adequacy of information about the coverage of insurance services.
Design/Methodology/Approach: The research model was tested with structural equation modelling (SEM) with a sample of 200 Slovenian users of insurance services.
Results: The results indicated that higher perceived innovation of insurance company was associated with higher perceived reputation of insurance company. In addition, higher perceived reputation of insurance company 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.
Conclusion: The original contribution of this article is also the highlighting of relationship between perceived reputation of insurance company, perceived adequacy of information about the insurance premium and 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.
Abratt R. & Kleyn N. (2012). Corporate identity corporate branding and corporate reputations: Reconciliation and integration. European Journal of Marketing 46(7/8) 1048-1063 http://dx.doi.org/10.1108/03090561211230197
Alhabeeb M. J. (2002). Perceived product quality purchase value and price. Allied Academies International Conference. Academy of Marketing Studies. Proceedings 7(1) 9-14.
Anderson J. & Gebing D. W. (1988). Structural equation modeling in practice: a review and recommended twostep approach. Psychological Bulletin 103(3) 411-423 http://dx.doi.org/10.1037/0033-2909.103.3.411
Babić-Hodović V. Mehić E. & Arslanagić M. (2011). Influence of Banks’ Corporate Reputation on Organizational Buyers Perceived Value. Procedia - Social and Behavioral Sciences 24 351-360 http://dx.doi.org/10.1016/j.sbspro.2011.09.063
Bagozzi R. P. & Yi Y. (1988). On the evaluation of structural equation model. Journal of the Academy of Marketing Science 16(1) 74-94 http://dx.doi.org/10.1007/BF02723327
Bentler P. M. (1990). Comparative fit indexes in structural models. Psychological Bulletin 107(2) 238-246 http:// dx.doi.org/10.1037/0033-2909.107.2.238
Bezenić D. (2006). Interdependence of life insurance service quality and premium. Tržište 18(1-2) 67-80.
Bollen K. A. (1989). Structural Equations with Latent Variables. Wiley-Interscience Publication.
Bontis N. & Booker L. D. (2007). The mediating effect of organizational reputation on customer loyalty and service recommendation in the banking industry. Management Decision 45(9) 1426-1445 http://dx.doi. org/10.1108/00251740710828681
Bromley D. B. (2001). Relationships between personal and corporate reputation. European Journal of Marketing 35(3/4) 316-334 http://dx.doi. org/10.1108/03090560110382048
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 http://dx.doi.org/10.1037/h0048255
Chang K. C. (2012). How reputation creates loyalty in the restaurant sector. International Journal of Contemporary Hospitality Management 25(4) 536-557 http://dx.doi.org/10.1108/09596111311322916
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) 53-63.
Chibuike I.-E.R. (2011). Corporate Reputation & Firm Performance: Empirical Literature Evidence. International Journal of Business and Management 6(4) 197-206 http://dx.doi.org/10.2139/ssrn.1659595
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 http://dx.doi.org/10.1016/j.jretconser.2011.06.004
Chun R. (2006). Innovation and Reputation: An Ethical Character Perspective. Creativity and Innovation Management 15(1) 63-73 http://dx.doi.org/10.1111/j.1467-8691.2006.00369.x
Costa-Font J. & Garcia J. (2003). Demand For Private Health Insurance: How Important Is The Quality Gap?. Health Economics 12(7) 587-599 http://dx.doi.org/10.1002/hec.756
Costinel D. Anca D. & Florin Lucian I. (2011). Duality asymmetry and the placebo effect of the sale price. The relationship between the perceived prices and perceived value of products in the marketing literature. Romanian Journal of Marketing 4 23-30.
Courtright J. L. & Smudde P. M. (2009). Leveraging Organizational Innovation for Strategic Reputation Management. Corporate Reputation Review 12 245-269 http://dx.doi.org/10.1057/crr.2009.18
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 http://dx.doi.org/10.1007/BF02310555
Damanpour F. & Gopalakrishnan S. (1998). Theories of organizational structure and innovation adoption: the role of environmental change. Journal of Engineering and Technology Management 15(1) 1-24 http://dx.doi.org/10.1016/S0923-4748(97)00029-5
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. & Räthke-Döppner S. (2010). The quality of insurance intermediary services-empirical evidence for Germany. Journal of Risk and Insurance 77(3) 667-701 http://dx.doi.org/10.1111/j.1539-6975.2010.01361.x
Fombrun C. J. (1996). Reputation: realizing value from the corporate image. Boston: Harvard Business School Press.
Fombrun C. J. Gardberg N. A. & Sever J. W. (2000). The reputation quotient: A multi-stakeholder measure of corporate reputation. The Journal of Brand Management 7(4) 241-255 http://dx.doi.org/10.1057/bm.2000.10
Fornell C. & Lacker D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18(1) 39-50 http://dx.doi.org/10.2307/3151312
Gatti L. Caruana A. & Snehota I. (2012). The role of corporate social responsibility perceived quality and corporate reputation on purchase intention: Implications for brand management. Journal of Brand Management 20(1) 65-76 http://dx.doi.org/10.1057/bm.2012.2
Graham M. E. & Bansal P. (2007). Consumers‘ Willingness to Pay for Corporate Reputation: The Context of Airline Companies. Corporate Reputation Review 10 189-200 http://dx.doi.org/10.1057/palgrave.crr.1550052
Gulati N. C. (2007) Principles of insurance management New Delhi: Excel Books.
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.
Hanif M. (2010). Factors Affecting Customer Satisfaction. International Research Journal of Finance and Economics 60 44-52.
Hansen H. Samuelsen B. M. & Silseth P. R. (2008). Customer perceived value in B-t-B service relationships: Investigating the importance of corporate reputation. Industrial Marketing Management 37(2) 206-217 http://dx.doi.org/10.1016/j.indmarman.2006.09.001
Helm S. (2011). Employees‘ awareness of their impact on corporate reputation. Journal of Business Research 64(7) 657-663 http://dx.doi.org/10.1016/j. jbusres.2010.09.001
Henard D. H. & Dacin P. A. (2010). Reputation for Product Innovation: Its Impact on Consumers. Journal of Product Innovation Management 27(3) 321-335 http://dx.doi.org/10.1111/j.1540-5885.2010.00719.x
Hillestad T. Xie G. & Haugland S. A. (2010). Innovative corporate social responsibility: the founder‘s role in creating a trustworthy corporate brand through „green innovation“. The Journal of Product and Brand Management 19(6) 440-451 http://dx.doi.org/10.1108/10610421011085758
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 http://dx.doi.org/10.4018/joeuc.2000100102
Jöreskog K. G. & Sörbom D. (2002). LISREL 8: structural equation modeling with the SIMPLIS command language. Lincolnwood: Scientific Software International.
Kay J. (1995). Foudations of Corporate Success. Oxford: Oxford University Press.
Keh H. T. & Xie Y. (2009). Corporate reputation and customer behavioral intentions: The roles of trust identification and commitment. Industrial Marketing Management 38 (7) 732-742 http://dx.doi.org/10.1016/j.indmarman.2008.02.005
Keller K. L. & Aaker D. A. (1998). The Impact of Corporate Marketing on a Company‘s Brand Extensions. Corporate Reputation Review 1 356-378 http://dx.doi.org/10.1057/palgrave.crr.1540057
Khan A. M. & Manopichetwattana V. (1989). Innovative and non-innovative small firms: Types and characteristics. Management Science 35(5) 597-713.
Kutty S. K. (2008). Managing life insurance. New Delhi: Prentice-Hall.
Ladhar R. & Morales M. (2008). Perceived service quality perceived value and recommendation. A study among Canadian public library users. Library Management 29 (4/5) 352-366 http://dx.doi.org/10.1108/01435120810869129
Laforet S. (2011). A framework of organisational innovation and outcomes in SMEs. International Journal of Entrepreneurial Behaviour & Research 17(4) 380-408 http://dx.doi.org/10.1108/13552551111139638
Lien T. B. & Yu C. C. (2001). An Integrated Model for the effects of perceived product perceived service quality and perceived price fairness on customer satisfaction and loyalty. Journal of Consumer Satisfaction Dissatisfaction and Complaining Behaviour 14 125-140.
Lorin Purcărea V. Raluca Gheorghe I. & Mădălina Petrescu C. (2013). The Assessment of Perceived Service Quality of Public Health Care Services in Romania Using the SERVQUAL Scale. Procedia Economics and Finance 6 573-585 http://dx.doi.org/10.1016/S2212-5671(13)00175-5
Lovelock C. H. (1999). Developing Marketing Strategies for Transnational Service Operations. Journal of Services Marketing 13(4/5) 278-289 http://dx.doi.org/10.1108/08876049910282538
Mulej M. (2000). Dialektična in druge mehkosistemske teorije. [Dialectical and other softsystems theories]. University of Maribor Faculty of Economics and Business.
Mulej M. (2013). Dialectical Systems Thinking and the Law of Requisite Holism Concerning Innovation. Litchfield Park: Emergent.
Nunnally J. C. (1978). Psychometric Theory. New York: Mc-Graw-Hill Book Company.
Oh H. (2003). Price fairness and its asymmetric effects on overall price quality and value judgments: the case of an upscale hotel. Tourism Management 24(4) 387-399 http://dx.doi.org/10.1016/S0261-5177(02)00109-7
Ottenbacher M. & Gnoth J. (2005): How to Develop Successful Hospitality Innovation. Cornell Hotel and Restaurant Administration Quarterly 46(2) 205-222 http://dx.doi.org/10.1177/0010880404271097
Ou W.-M. & Abratt R. (2006). Diagnosing the Relationship between Corporate Reputation and Retail Patronage. Corporate Reputation Review 9(4) 243-257 http:// dx.doi.org/10.1057/palgrave.crr.1550032
Parasuraman A. Zeithaml V. A. & Berry L. B. (1985). A Conceptual Model of Service Quality and Its Implications for Future Research. The Journal of Marketing 49(4) 41-50 http://dx.doi.org/10.2307/1251430
Pomering A. & Johnson L. W. (2009). Constructing a corporate social responsibility reputation using corporate image advertising. Australasian Marketing Journal 17(2) 106-114 http://dx.doi.org/10.1016/j. ausmj.2009.05.006
Rahman M. S. Khan A. H. & Haque M. M. (2012). A Conceptual Study on the Relationship between Service Quality towards Customer Satisfaction: Servqual and Gronroos’s Service Quality Model Perspective. Asian Social Science 8(13) 201-210 http://dx.doi.org/10.5539/ass.v8n13p201
Schumacker R. E. & Lomax R. G. (2004). A beginner‘s guide to structural equation modeling. London: L. Erlbaum. Simpson P. M. Siguaw J. A. & Enz C. A. (2006). Innovation orientation outcomes: the good and the bad. Journal of Business Research 59(10-11) 1133-1141 http://dx.doi.org/10.1016/j.jbusres.2006.08.001
Sureshchandar G. S. Chandrasekharan R. & Anantharaman R. N. (2002). Determinants of customer-perceived service quality: A confirmatory factor analysis approach. The Journal of Services Marketing 16(1) 9-34 http:// dx.doi.org/10.1108/08876040210419398
Sweeney J. C. Soutar G. N. & Johnson L. W. (1999). The role of perceived risk in the quality-value relationship: A study in a retail environment. Journal of Retailing 75(1) 77-105 http://dx.doi.org/10.1016/S0022-4359(99)80005-0
Šebjan U. (2013). Zaznana povezanost med komponentami zavarovalne storitve pri uporabnikih dopolnilnega zdravstvenega zavarovanja [Perceived Relationships among Components of Insurance Service for Users of Complementary Health Insurance Service]. Management 8(4) 291-307.
Šebjan U. & Bastič M. (2013). Komponente storitve in njihov pomen pri zamenjavi zdravstvene zavarovalnice [Service components and their importance in health insurance changes]. Naše gospodarstvo 59(3-4) 14-25 http://dx.doi.org/10.7549/ourecon.2013.3-4.02
Šebjan U. Bastič M. & Tominc P. (2013). Key factors of decision-making of users for complementary voluntary health insurance . Actual Problems of Economics 10(148) 558-566.
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 Hoboken: John Wiley & Sons. de Vaus D. A. (1995). Surveys in Social Research 4th ed. Sydney: Allen and Unwin Pty Ltd.
Vicente S. (2009). The moderating effect of the technological level of industry on the relationship between innovation and corporate reputation. International Entrepreneurship and Management Journal 5(4) 515-526 http://dx.doi.org/10.1007/s11365-009-0127-2
Walsh G. & Beatty S. E. (2007). Customer-Based Corporate Reputation of a Service Firm: Scale Development and Validation. Journal of the Academy of Marketing Science 35(1) 127-143 http://dx.doi.org/10.1007/ s11747-007-0015-7
Wang C. L. & Ahmed P. K. (2004). The development and validation of the organisational innovativeness construct using confirmatory factor analysis. European Journal of Innovation Management 7(4) 303-313 http://dx.doi.org/10.1108/14601060410565056
Walsh G. Beatty S. E. & Shiu E. M. K. (2009). The customer-based corporate reputation scale: Replication and short form. Journal of Business Research 62(10) 924-930 http://dx.doi.org/10.1016/j.jbusres.2007.11.018
Walsh G. Shiu E. & Hassan L. M. (2014). Replicating validating and reducing the length of the consumer perceived value scale. Journal of Business Research 67(3) 260-267 http://dx.doi.org/10.1016/j.jbusres.2013.05.012
Winkleman M. (1999). The right stuff: Survey on corporate reputation. Chief Executive (US) 143 80-81.
Wu S.-I. & Lin C.-L. (2011). The influence of innovation strategy and organizational innovation on innovation quality and performance. International Journal of Organizational Innovation 3(4) 45-81.
Yaşlıoğlu M. Özaslan Çalışkan B. Ö. & Şap Ö. (2013). The Role of Innovation and Perceived Service Quality in Creating Customer Value: A Study on Employees of a Call Center Establishment. Social and Behavioral Sciences 99(6) 629-635 http://dx.doi.org/10.1016/j.sbspro.2013.10.533
Zabala I. G. Panadero L. M. & Gallardo C. M. Amate M. Saanchez-Galindo I. Tena & I. Villalba. (2005). Corporate reputation in professional services firms: Reputation management based on intellectual capital management. Corporate Reputation Review 8 59-71 http://dx.doi.org/10.1057/palgrave.crr.1540239
Zeithaml V. A. (1988). Consumer Perceptions of Price Quality and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing 52(3) 2-22 http://dx.doi.org/10.2307/1251446
Zweifel P. & Eisen R. (2012) Insurance Economics Berlin: Springer.