Loyalty intentions and selected relationship quality constructs : the mediating effect of customer engagement

Abstract

PURPOSE : The purpose of this paper is to assess the mediating effect of customer engagement on the relationships between selected relationship quality and value antecedents (commitment, customer satisfaction, trust and customer value), and the consequence (loyalty intentions) within the short-term insurance industry. DESIGN/METHODOLOGY/APPROACH : A descriptive research design that is quantitative in nature was followed and 491 responses from insurance customers were analysed. FINDINGS : Short-term insurers should facilitate customer engagement by implementing strategies that foster customer commitment, ensure customer satisfaction, build trust and create customer value. Facilitating customer engagement may lead to stronger loyalty intentions amongst customers towards the short-term insurer. RESEARCH LIMITATIONS/IMPLICATIONS : The investigation offers a greater understanding of the relevance and importance of the customer engagement theory and the impact it may have in strengthening the relationships between factors of the relationship marketing domain and customer loyalty. PRACTICAL IMPLICATIONS : From a managerial perspective, it is evident that short-term insurers should facilitate customer engagement carrying out strategies that foster customer commitment, ensure customer satisfaction, build trust and create customer value. ORIGINALITY/VALUE : Building on the work of earlier relationship and quality management scholars, the study provides new insight into the role and relevance of relationship quality and value factors and customer engagement, while simultaneously being assessed for their contribution to customer loyalty.