UNIVERSITI TEKNOLOGI MARA
DETERMINING FACTOR INFLUENCING CUSTOMER RETENTION OF INSURANCE
PRODUCTS AND SERVICES:
A CASE OF SIXMA GROUP
MOHD NAZIB BIN CHE DIN MOHAMAD AZMIL BIN JAMSARI
MUHAMMAD LUQMAN BIN SULAIMAN AZARI
Dissertation submitted in partial fulfillment of the requirements for the degree of Master in Business Administration
Arshad Ayub Graduate Business School
December 2018
AUTHOR’S DECLARATION
I declare that the work in this thesis was carried out in accordance with the regulations of Universiti Teknologi MARA. It is original and is the results of my own work, unless otherwise indicated or acknowledged as referenced work. This thesis has not been submitted to any other academic institution or non-academic institution for any degree or qualification.
I, hereby, acknowledge that I have been supplied with the Academic Rules and Regulations for Post Graduate, Universiti Teknologi MARA, regulating the conduct of my study and research.
Name of Student : Mohd Nazib Bin Che Din Student I.D. No. : 2017685874
Signature of Student : ………..
Name of Student : Mohamad Azmil Bin Jamsari Student I.D. No. : 2017862546
Signature of Student : ………..
Name of Student : Muhammad Luqman Bin Sulaiman Azari Student I.D. No. : 2017639804
Signature of Student : ………..
Programme : Master in Business Administration Faculty : Arshad Ayub Graduate Business School
Thesis : Determining Factor Influencing Customer Retention of Products and Services: A Case of Sixma Group
Date : December 2018
ABSTRACT
This study sets out to understand the variables influencing customer retention for a company that is involved in the insurance and Takaful services specifically, Sixma Group Sdn Bhd. The objectives of this study are to carry out the situational analysis for Sixma Group, to identify the factors that influence customer retention towards products and services and to recommend viable strategies for Sixma Group based on the findings of the study. The target respondents were those who do have insurance or Takaful policies in general and a total of 105 questionnaires were collected through a convenient sampling method. The data collected were interpreted by using four methods namely reliability test, descriptive analysis, Pearson correlation analysis and regression analysis. From the findings of this study, it was found that there is strong significant relationship between reputation with customer retention. The key findings in this study provide significant insights regarding the effects of price, service and reputation on customer retention in the insurance and Takaful industry. For future researchers, it is possible to replicate and compare this study in other service sectors such as banking and financial institutions.
ACKNOWLEDGEMENT
Alhamdulillah, all praise to Allah, the most merciful and the most benevolent for giving us the opportunities in completing this research paper on time in order to fulfil the graduation requirement of the Master in Business Administration. It would be impossible for us to complete this study without the grace and help of Allah S.W.T.
First of all, we want to thank and express our deepest appreciation to our research supervisor, Professor Dr. Rosmimah Mohd Roslin for her valuable guidance and advice.
She inspired us greatly to work on this project. Her willingness to motivate us contributed tremendously to our project. Without her encouragement, suggestions, ideas and comment throughout this study, this research could not be completed.
We would also like to thank Universiti Teknologi Mara (UiTM) for providing us with the facilities in order to complete this project. Our acknowledgement also goes to top management of Sixma Group Agency especially Tn Hj Nik Muhammad Azlan bin Nik A Rahman for his continuous support throughout this study. We dedicate this research to our beloved family and friends for their understanding and support for us in completing this project.
TABLE OF CONTENTS
Page
AUTHOR’S DECLARATION II
ABSTRACT III
ACKNOWLEDGEMENT IV
TABLE OF CONTENTS V
LIST OF TABLES VIII
LIST OF FIGURES IX
LIST OF SYMBOLS X
LIST OF ABBREVIATIONS XI
CHAPTER ONE: INTRODUCTION 1
1.1 Pre-amble 1
1.2 Background of Study 1
1.3 Background of the Insurance Industry 2
1.4 Background of Company 5
1.5 Problem Statement 6
1.6 Research Objectives 8
1.7 Research Questions 8
1.8 Scope of Study 8
1.9 Limitation of Study 8
1.10 Significance of Study 9
1.11 Definition of Terms 9
CHAPTER TWO: LITERATURE REVIEW 11
2.1 Pre-amble 11
2.2 Background of Research 11
2.3 Concept and Key Definitions 11
2.3.1 Customer Retention 11
2.3.2 Price 13
