Service Quality, Customer Satisfaction and Customer Loyalty at Twifo-praso District Health Insurance Scheme

Abstract

ABSTRACT This study sought to assess the effect of service quality on customer loyalty at Twifo-Praso District Health Insurance Scheme in the Central Region of Ghana. It also assessed whether state of customer satisfaction mediate such supposed predictive relation or not. The study employed the explanatory research design. The population included 33,129 registered subscribers at said authority. A sample size of 395 respondents was targeted based on a recognized scientific formula. The respondents were selected through the systematic sampling technique. Structured questionnaire was used for the primary data collection. Statistical Package for Social Sciences application was used for the primary data processing and analysis. It was discovered that the predictors accounted for 24.0% positive variance in customer loyalty. It was also found that reliability and tangibles made significant positive contributions to predicting the 24.0% variance in customer loyalty. Customer satisfaction did not mediate the predictive relation between service quality and employee loyalty at Twifo-Praso District Health Insurance Scheme. The study concluded that the key component of service delivery that can significantly affect customer loyalty at Twifo-Praso District Mutual Health Insurance Authority was reliability of the staff and empathy. Furthermore, if customers are not satisfied with the services provided at Twifo-Praso District Mutual Health Insurance Authority, it does not guarantee customers being loyal to the scheme even if the services provided are of utmost quality. The study recommended that management of the Twifo-Praso District Mutual Health Insurance Authority must put in place well-structured customer loyalty programs to win, maintain and expand its client base