THE EFFECT OF MARKETING STRATEGY ON CUSTOMER SATISFACTION: THE CASE OF SELECTED INSURANCE COMPANIES IN ADDIS ABABA

Abstract

A number of insurers are competing and offering the customers a plethora of products. Customers are demanding quick and better service from the service providers. Hence, the main objective of this study is to examine and analyze the effect of marketing strategy on customer satisfaction in Ethiopia: the case of selected insurance companies in Addis Ababa. The research design used was descriptive and explanatory in nature. Primary data were collected through a structured questionnaire distributed to 384 customers (in which 320 was received back). Data were processed via SPSS software and analyzed through descriptive (frequency, percentage, mean and standard deviation) and inferential statistics (regression analysis). Regression analysis was used to find the effect of marketing strategy (production strategy, price strategy, promotion strategy & distribution strategy) on customer satisfaction. The result of the study showed that marketing strategy has a positive and significant effect on customer satisfaction. Therefore, insurance companies need to make a thorough market research to understand the needs of the customers and accordingly launch the products to match with customer’s expectation The quality, transparency & integrity to acquire & retain customers in the long term must be upgraded by the insurance companies to survive competition in the market in order to deliver their product to the target potential customers.