Factors Affecting Customer Perceived Value of Insurance B-B Services and Its Outcomes

Purpose- This study aims at 1) understanding drivers of customers’ perceptions of value and 2) assessing the consequences of value perceptions among industrial customers of insurance services in Iran. Corporate reputation, information sharing, distributive fairness, flexibility, and customer involvement are modelled as drivers of CPV whereas Word-of-Mouth (WOM) and search for alternatives represent the effects of CPV. Methodology/Design- The literature review examines the concept of perceived value to lay the grounds for a basic understanding of the subject matter. The empirical study is based on data collection process with data collected from 36 customers (census) of Iran insurance company located at Phase 1, Toos Industrial Estate in quantitative form, achieved by a survey using a Likert seven point scale questionnaire. The goals and objectives of the study are accomplished by analyzing collected data and thereby identify key CPV drivers and key CPV consequences. The measurement model was tested in the LISREL Structural Equation Modelling and SPSS software packages. A confirmatory factor analysis and simple regression was employed for this purpose. Findings- The empirical study concluded that corporate reputation, distributive fairness and flexibility have direct and positive effect on CPV and it has also direct and positive effect on WOM and direct and negative effect on search for alternatives.

Perceived value; Relationship marketing; Service relationships, B-B relationships, Insurance industry