Confidence model, Transformational leadership of executives, And Service marketing strategy affecting the image perception of insurance brokerage business

Abstract

          The objectives of this research were: (1) to explore the factors affecting the perception of the insurance brokerage business image; (2) to examine the causal relationship to the perception on image of insurance brokerage business; and (3) to propose the model of the insurance brokerage image perception.

          This research was a mixed method, quantitative and qualitative research, with content analysis to develop a model of causal factors influencing the perception on image of insurance brokerage business. The population was insurance brokers who were members of the Association of Insurance Brokers. The sample size in quantitative method was determined by cluster random sampling for 444 units of analysis and the instruments used for data collection were a 5-point rating scale questionnaire. Meanwhile, the qualitative method applied a purposive sample selection of 15 persons from insurance brokers of the Association of Insurance Brokers. Statistics used in the analysis data were frequency, percentage, mean, Standard Deviation and testing of the causal factor correlation model.

          The results of the research revealed that: the factors affecting the perception on image of the insurance brokerage business were (1) the transformational leadership of executives’ factors; (2) Service marketing strategy model factors; and (3) factors of trust in the organization were consisting of competence, promise and friendliness. Furthermore, the structural equation model or the causal relationship indicated that the perceived image of insurance brokers was consistent with the empirical data. The level of trust in the organization had a high effect on the image of the organization (r=0.90), while the transformational leadership of executives and service marketing strategies had a low effect on the image of the organization (r=0.16 and r= 0.18 respectively). This relationship can be illustrated as an equation as follows: Corporate Image (I) = 0.908* Confidence (T) + 0.161* Leadership (TL) + 0.185* Marketing Strategy (C). The transformational leadership, corporate image, and organizational trust can predict the perception on image of insurance brokers with 87 percentage of prediction capability at statistical significance level of 0.05. The results of the study can be further utilized in corporate image development planning of insurance brokerage business by prioritizing on building employee confidence, defining appropriate service marketing strategy as well as creating transformational leadership of executives.