THE EFFECT OF SERVICE MARKETING MIX ON SALES PERFORMANCE: THE CASE OF OROMIA INSURANCE COMPANY, ADDIS ABBA

Abstract

The aim of this study is to investigate the effects of service marketing mix elements on sales performance in the case of Oromia Insurance Company. To achieve the study objectives, explanatory research design along with quantitative approach was applied. A sample of 253 employees of Oromia Insurance Company was selected through stratified random sampling method. Survey questionnaire was used to collect primary data and a total of 241 valid responses were obtained for analysis. SPSS version 20.0 was used to process quantitative data. Both descriptive and inferential analyses were used to attain the intended objectives. The results of regression analysis, showed that all the seven dimensions of service marketing mix elements namely product, price, place, promotion, people, process and physical evidence had positive and significant effect on sales performance of Oromia insurance company in Addis Ababa. Price had relatively the highest effect on sales performance (B=0.288, p < .05) followed by place (B=0.192, p< .05) and product (B=0.130, p < .05). Whereas, physical evidence (B=0.094, p < .05) and promotion (B=0.056, p < .05) showed the least effect. Therefore, the results of this study revealed that service marketing mix elements have positive and statistically significant effect on sales performance of Oromia insurance company. Thus, it can be recommended that the organization should work on its service marketing mix elements in order to improve its sales performance.