THE IMPACT OF FUNCTIONAL QUALITY SERVICE DELIVERY ON CUSTOMER SATISFACTION IN NIGERIAN INSURANCE INDUSTRY: A CASE STUDY OF INSURANCE INDUSTRY IN OSUN STATE

¹Olaoye, T.B, & ²Ekundayo, O.A

¹Department of Banking & Finance, Osun State College of Technology, Esa – Oke, Osun State

²Department of Actuarial Science & Insurance, Joseph Ayo Babalola University, Ikeji- Arakeji, Osun State

Email:olaoyebolaji30@gmail.com,oaekundayo@jabu.edu.ng

ABSTRACT

This paper focuses on the impact of functional quality service delivery on customer satisfaction in Nigerian insurance industry. It aims at examining the reasons for negative perception and low patronage of customers toward the services that are provided by the insurance companies in Osun State of Nigeria. To achieve this, three hundred copies of questionnaire were administered to ten selected insurance company customers who were chosen randomly by convenient sampling technique out of the population. Data obtained were analyzed, by using, Analysis of variance (ANOVA), Multiple Regression and Correlation Analyses to ascertain the pattern of relationship between functional quality service delivery and customer satisfaction. The result showed that all the dimensions of functional quality services which are; responsiveness, assurance, reliability, tangibility, and empathy have positive and significant influence on customer satisfaction in the insurance industry. It can be concluded that, functional quality service have direct impact on customer satisfaction, Therefore, the study recommends that the management of insurance companies must place emphasis on the underlying dimension of functional quality service, in order to maintain customer satisfaction.