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DETERMINANTS ON SERVICE QUALITY THAT AFFECTING CUSTOMER’S SATISFACTION IN INSURANCE INDUSTRY

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DETERMINANTS ON SERVICE QUALITY THAT AFFECTING CUSTOMER’S SATISFACTION IN INSURANCE INDUSTRY

MODE B

NURUL NADIA BT YUSOF 2007282552

BACHELOR OF BUSINESS ADMINISTRATION (HONS) INSURANCE

FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA

BANDARAYA MELAKA

NOVEMBER 2010

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i

DECLARATION OF ORIGINAL WORK

BACHELOR OF BUSINESS ADMINISTRATION (HONS) INSURANCE FACULTY OF BUSINESS MANAGEMENT

UNIVERSITI TEKNOLOGI MARA BANDAR MELAKA

DECLARATION OF ORIGINAL WORK”

I, Nurul Nadia Bt Yusof, 880921-23-5874

Hereby, declare that,

• This work has not previously been accepted in substance for any degree, locally

or overseas and is not being concurrently submitted for this degree or any other degrees.

• This project paper is the result of any investigation work and investigation, except

where otherwise stated.

• All verbatim extracts have been distinguished by quotation marks and sources of

my information have been specifically acknowledged.

Signature: ____________ Date: _____________

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ii

LETTER OF SUBMISSION November 2010

The Head of Program

Bachelor of Business Administration (Hons) Insurance Faculty of Business Management,

Universiti Teknologi Mara, Kampus Bandaraya Melaka Melaka

Dear Madam ,

SUBMISSION OF PROJECT PAPER INS 662

Attached is the project paper titled DETERMINANTS ON SERVICE QUALITY THAT AFFECTING CUSTOMER’S SATISFACTION IN INSURANCE INDUSTRY to fulfill the requirement as needed by the Faculty of Business Management, University Technology MARA.

Thank you.

Yours sincerely,

NURUL NADIA BT YUSOF 2007282552

Bachelor of Business Administration (Hons) Insurance

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TABLES OF CONTENT

Contents Page

DECLARATION OF ORIGINAL WORK i LETTER OF SUBMISSION ii

ACKNOWLEDGEMENT iii

TABLE OF CONTENTS iv

LIST OF FIGURES v

LIST OF TABLES vi

ABSTRACT vii

CHAPTER 1 – INTRODUCTION

1.1 Background of study 1-3 1.2 Problem Statements 4-5 1.3 Research Objectives 5 1.4 Research Questions 5 1.5 Limitation of study 6 1.6 Significant of Study 7-8 1.7 Scope of Study 8 1.8 Theoretical Framework 9-10 1.9 Research Hypothesis 11 1.10 Definitions of Terms 12-13

CHAPTER 2: LITERATURE REVIEW

2.0 Literature review 14-21

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vii

ABSRACT

The important issue of this research is to determine on service quality that affecting customer’s satisfaction in insurance industry. These means is there any relationship between all the independent variables with the dependent variable. This research basically focuses on the insurance policyholder, mostly MAA Assurance policyholders’ in Johor Bahru branch. A framework was developed and tested whereby customer’s satisfaction is influenced by three elements of service quality which are service products, service delivery and service environments. There several problems for insurance industry today where most of the policyholders are not satisfied with the service given by insurance company. So that, the researcher tried to clarify what factors that can contribute to this matter. The research is being narrowed to 50 and randomly chosen respondents as the data sampling in order to identify whether the service quality dimensions has a relationship towards customer’s satisfaction. The findings and analysis were based on the data obtained from the questionnaire responses. The analysis of findings involved the use of Cronbach’s Alpha to measure the reliability of data and descriptive statistics that consist of frequency distributions. Furthermore, the correlation was used to see if there are any significance differences in the means for all variables of interest. F- Statistic has been carried out in order to determine whether there is a significant different between each individual selected demographic factors. Finally the findings of this research are useful to determine on service quality that affecting customer’s satisfaction in insurance industry.

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