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Effects of perceived cost, service quality, and customer satisfaction on health insurance service continuance

Author

Listed:
  • Taghreed Abu-Salim

    (Australian University of Wollongong in Dubai)

  • Okey Peter Onyia

    (Australian University of Wollongong in Dubai)

  • Tina Harrison

    (University of Edinburgh Business School)

  • Valerie Lindsay

    (American University of Sharjah)

Abstract

This paper aims to contribute to the universal discourse on financial services continuance behavior by examining the impact of service cost on customers’ service-quality perception and service continuance intention. It presents the results of an empirical study that has explored the impacts of service cost, service quality, and customer satisfaction on health insurance customers’ behavioral intention toward continuing or discontinuing with their service providers. Very few studies had examined the impact of service cost on service-quality perception. Our study attempts to fill that gap. A sample of 820 customers was surveyed, and 624 usable responses were analyzed with ANOVA, standard multiple regression, and logistic regression. Our findings indicate that, although highly satisfied health insurance customers will most likely retain their current service providers, customer dissatisfaction does not necessarily lead to discontinuance. Our results also provide some operational implications for health insurance managers, with strategies for reducing attrition and improving customer retention.

Suggested Citation

  • Taghreed Abu-Salim & Okey Peter Onyia & Tina Harrison & Valerie Lindsay, 2017. "Effects of perceived cost, service quality, and customer satisfaction on health insurance service continuance," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(4), pages 173-186, December.
    • Handle: RePEc:pal:jofsma:v:22:y:2017:i:4:d:10.1057_s41264-017-0035-4
    DOI: 10.1057/s41264-017-0035-4
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    3. Lova Rajaobelina & Line Ricard, 2021. "Classifying potential users of live chat services and chatbots," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(2), pages 81-94, June.
    4. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2021. "Explicating the role of emerging technologies and firm capabilities towards attainment of competitive advantage in health insurance service firms," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    5. El Barachi, May & Salim, Taghreed Abu & Nyadzayo, Munyaradzi W. & Mathew, Sujith & Badewi, Amgad & Amankwah-Amoah, Joseph, 2022. "The relationship between citizen readiness and the intention to continuously use smart city services: Mediating effects of satisfaction and discomfort," Technology in Society, Elsevier, vol. 71(C).
    6. Muhammad Anshari & Munirah Ajeerah Arine & Norzaidah Nurhidayah & Hidayatul Aziyah & Md Hasnol Alwee Salleh, 2021. "Factors influencing individual in adopting eWallet," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(1), pages 10-23, March.
    7. Pradeep Kautish & Arpita Khare & Rajesh Sharma, 2022. "Health insurance policy renewal: an exploration of reputation, performance, and affect to understand customer inertia," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(3), pages 261-278, September.
    8. Nicolet, Anna & Perraudin, Clémence & Krucien, Nicolas & Wagner, Joël & Peytremann-Bridevaux, Isabelle & Marti, Joachim, 2023. "Preferences of older adults for healthcare models designed to improve care coordination: Evidence from Western Switzerland," Health Policy, Elsevier, vol. 132(C).
    9. Christian Eckert & Christof Neunsinger & Katrin Osterrieder, 2022. "Managing customer satisfaction: digital applications for insurance companies," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(3), pages 569-602, July.
    10. Balan Sundarakani & Okey Peter Onyia, 2021. "Fast, furious and focused approach to Covid-19 response: an examination of the financial and business resilience of the UAE logistics industry," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(4), pages 237-258, December.

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