Abstract:
With the intense competition and increasing globalization in the financial markets, financial managers must develop customer-oriented strategies in order to compete -successfully in the competitive business environment. Numerous studies have shown that financial organizations' profitability is closely associated with customer retention (Garland, 2002; Anderson; Reich held and Sasser, 1990). Maintaining an existing customer is five times cheaper than obtaining a new one as the advertising, sales, and set-up costs can be amortized over a longer customer lifetime (Morgan, 2007; Clemes, Gan and Zheng, 2007; P Achheld and Sesser, 1990).
The insurance industry is a very competitive industry. They must develop strong relationships with their customers in order to compete successfully. However, customers are also more prone to change their automobile insurance behavior when they can purchase nearly identical financial products provided by the competitive companies. The Researcher has identified that Sri Lankan automobile insurance consumers are not brand loyal, and are switching to new brands continuously or they have an intention to switch (Brand switching behavior). Therefore, it is significant to identify the dimensions that lead consumers for the switching behavior in automobile insurance Sri Lankan insurance service providers sector.
This study has mainly focused on identifying demographic characteristics and other factors that influence the consumers in switching the service provider and identify the relationship between the factors that influence customers’ switching behavior in the automobile insurance to delve into finding out the likeliness of switching the service provider.
