The impact of perceived service quality on the behaviour of repurchase, level of customer loyalty and word of mouth communication; a study on customers having car insurance policy

The aim of this study is to examine the effect of perceived service quality on re-purchase behaviour, customer loyalty level, and word of mouth communication. For this purpose, firstly concepts related to perceived service quality, re-purchase behaviour, customer loyalty, and word of mouth communication were discussed. Using scales developed in the literature, the perception of customers who own car insurance policies about service quality, re-purchase behaviour, customer loyalty level, and word of mouth communication was determined. Lastly, the effect of perceived service quality on re-purchase behaviour, customer loyalty level, and word of mouth communication was studied. The population of this study is individuals inhabiting in the city center of Düzce, and who have purchased car insurance policies at least once. In this context, we carried an evaluation by conducting a poll 407 individuals. We applied Factor, Multiple Linear Regression, Correlation, Frequancy, ANOVA, and T-test analyses on data obtained by using quantitative methods. The SPSS package program was used for the analysis of the data. As a result of the factor analysis, perceived service quality dimensions were grouped according to the four following factors: physical characteristics, reliability, confidence and emphaty. Other variables of research, such as re-purchase behaviour, customer loyalty level, and word of mouth communication, were seperately grouped according to one single dimension. Multiple Linear Regression analyses concluded that the perceived dimensions of service quality (physical characteristics, reliability, confidence, emphaty) had an effect on customer re-purchase behaviour, customer loyalty, and word of mouth communication. Apart from these analyses, there were significant differences between demographics and the sub-dimensions of perceived service quality. Keywords: Perceived Service Quality, Re-Purchase, Level of Customer Loyalty, Word of Mouth Communication, Car Insurance.