HUE UNIVERSITY
UNIVERSITY OF ECONOMICS
FACULTY OF BUSINESS ADMINISTRATION
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GRADUATION THESIS
IMPROVING INDIVIDUAL CUSTOMER LOYALTY TO LIFE INSURANCE BRAND AT PRUDENTIAL LIFE INSURANCE COMPANY LIMITED - HUE BRANCH
DANG THI THANH HUONG
Hue, May 2021
HUE UNIVERSITY UNIVERSITY OF ECONOMICS
FACULTY OF BUSINESS ADMINISTRATION
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GRADUATION THESIS
IMPROVING INDIVIDUAL CUSTOMER LOYALTY TO LIFE INSURANCE BRAND AT PRUDENTIAL LIFE INSURANCE COMPANY LIMITED - HUE BRANCH
Student performance: Instructor:
DANG THI THANH HUONG Associate Professor, Dr. NGUYEN DANG HAO Class: K51B KDTM
School year: 2017 – 2021
Hue, May 2021
Thank You
To complete and carry out this thesis well, in the past time I have received a lot of attention and help from teachers, from the internship unit - Prudential Life Insurance Company Limited - Hue Branch, family and friends.
First of all, I would like to sincerely thank the teachers in the Faculty of Business Administration - Hue University of Economics for their enthusiastic help, creating conditions for me to have time to approach the real environment, creating the most favorable conditions during the learning process at school and doing well this thesis.
In particular, I would like to express my gratitude to Mr. Nguyen Dang Hao, who has enthusiastically instructed and guided me throughout the 3-month graduation internship and equipped me with the missing knowledge to complete this thesis.
Finally, I would like to thank the Board of Directors of Prudential Insurance Company Limited.
– Hue branch, the staff in the company have guided, helped enthusiastically and created favorable conditions in the process of collecting data, meeting customers for investigation. Special thanks to Ms. Le Thi Mai Trang - Head of Sales Department (J2F) for enthusiastically teaching me the knowledge and skills that I still lack, guiding me on how to take care of customers, how to advise customers on products. From there, helping me gain the knowledge and skills to complete this thesis well.
Thank you very much!
Hue, May 2021 Student made
i
Dang Thi Thanh Huong
INDEX
THANK YOU i
TABLE OF CONTENTS ........................................................................................................................
LIST OF ABBREVIATIONS vi
LIST OF TABLES vii
LIST OF CHARTS iix
PART I: INTRODUCTION 1
1. Reason for choosing topic 1
2. Research objective 3
2.1. General objectives: 3
2.2. Specific objectives 3
2.3.Research question 3
3. Research object and scope 3
3.1. Research subjects: 3
3.2.Survey subjects: 4
3.3.Scope of research: 4
4. Research methods 4
4.1.Data collection method: 4
4.1.1.Secondary data collection method: 4
4.1.2. Primary data collection method: 4
4.2.Data analysis method: 7
4.2.1. Secondary data analysis method: 7
4.2.2. Primary data analysis method: 7
5. Topic layout 11
6. Research process 12
PART II: RESEARCH CONTENT AND RESEARCH RESULTS: 13
CHAPTER 1: THEORETICAL AND PRACTICAL BASIS OF INDIVIDUAL CUSTOMER LOYALTY TOWARDS A BRAND 13
1.1. Theoretical basis 13
1.1.1.Concept, characteristics, role, classification and significance of life insurance 13
1.1.1.1.Concept of life insurance: 13
1.1.1.2.Characteristics of life insurance: 14
1.1.1.3. Classification of life insurance: 15
1.1.1.4.Role: 16
1.1.1.5.Meaning: 17
1.1.2.Customer loyalty to the brand: 18
1.1.2.1.Concept of loyalty: 18
1.1.2.2.Customer concept: 18
1.1.2.3.Brand concept: 19
1.1.2.4.Customer loyalty to the brand: 20
1.1.3. Factors affecting customer loyalty to a brand
Brand: 21
1.1.4.The relationship between customer satisfaction and loyalty: 23
1.1.5. Research models on customer loyalty to brands:24 1.2. Proposed research model 28
1.3. Scale design 31
CHAPTER 2: FACTORS AFFECTING INDIVIDUAL CUSTOMER LOYALTY TO LIFE INSURANCE BRAND AT PRUDENTIAL LIFE INSURANCE COMPANY LIMITED - HUE BRANCH: 35
2.1. Overview of Prudential Life Insurance Company Limited - Hue Branch: 35 2.1.1. General introduction of Prudential Life Insurance Group: 35
2.1.2.General introduction to Prudential Vietnam life insurance 35
2.1.3.Branch of Prudential Insurance Company Limited: 37
2.1.4. Management structure, functions and tasks of each department in Prudential Life Insurance Company Limited - Hue Branch 37
2.1.5.Financial situation of the company 39
2.1.6. Business performance of Prudential Life Insurance Company Limited in the period 2018 - 2020: 40
2.1.7. Customer life insurance contract retention rate from 2018 - 2020: 42
2.1.8.Target customers: 43
2.2. Policies affecting customer loyalty 43
2.3. Results of evaluating factors affecting individual customers' loyalty to life insurance brands at Prudential Life Insurance Company Limited - Hue Branch 47
2.3.1.Descriptive statistics: 47
2.3.2.Evaluation of the reliability of the scales (Cronbach's Alpha) 53
2.3.2.1.Evaluating the reliability of independent variable group scales: 53
2.3.2.2.Evaluation of the reliability of dependent variable scales: 56
2.3.3.Exploratory factor analysis EFA of variables: 56
2.3.3.1.Extracting the main factors of the independent variables in the scale: 56
2.3.3.2.Extracting key factors of individual customer satisfaction with the brand
Life Insurance: 58
2.3.3.3.Extracting the main factors of individual customers' loyalty to life insurance brands: 58
2.3.4. Confirmatory factor analysis CFA 59
2.3.4.1.Evaluation of model suitability: 59
2.3.4.2.Evaluation of the reliability of the scale: 61
2.3.4.3.Convergent validity test: 61
2.3.4.4.Uniqueness: 63
2.3.4.5.Distinguishing value: 63
2.3.5. SEM linear structural model analysis: 64
2.3.5.1.SEM model analysis 1: 65
2.3.5.2.SEM model analysis 2nd time: 67
2.3.6.Bootstrap Test: 72
2.3.7. Individual customers' evaluation of life insurance brands at the Company Limited
Prudential Life Insurance – Hue Branch: 73
2.3.7.1. Individual customers' assessment of the "Corporate Image" scale 73
2.3.7.2.Individual customer assessment of the “Responsiveness” scale 74
2.3.7.3.Individual customers' assessment of the "Brand reputation" scale 75
2.3.7.4.Individual customer assessment of the “Brand recognition” scale
................................................................ ................................................................ ...................................76
2.3.7.5. Individual customer evaluation of the “Staff” scale 77
2.3.8.Analysis of differences between individual customer groups towards the brand in satisfaction assessment: 78
2.3.8.1.Gender differences in satisfaction assessments 78
2.3.8.2.Age differences in satisfaction ratings: 78
2.3.8.3.Occupational differences in satisfaction ratings: 79
2.3.8.4. Differences in the use of life insurance products in satisfaction assessment: 79
2.3.8.5.Differences in collection in satisfaction assessment: 79
2.3.8.6. Differences in participation in life insurance companies in satisfaction assessment: 79
2.3.9.Analyzing the differences between individual customer groups in loyalty assessments 80
CHAPTER 3: SOME SOLUTIONS TO IMPROVE INDIVIDUAL CUSTOMER LOYALTY TO THE LIFE INSURANCE BRAND AT PRUDENTIAL LIFE INSURANCE COMPANY LIMITED - HUE BRANCH: 81
3.1. Orientation 81
3.2. Solutions to enhance individual customers' loyalty to life insurance brands at Prudential Life Insurance Company Limited - Hue Branch 82
3.2.1. Solution on “Corporate Image”: 82
3.2.2. Solution on “Responsiveness”: 83
3.2.3. Solution on “Brand reputation”: 84
3.2.4. Solution on “Brand Identity”: 85
3.2.5. Solution on “Staff”: 85
PART 3: CONCLUSION AND RECOMMENDATIONS: 87
1. Conclusion: 87
2. Recommendation: 88
3. Limitations of the topic 89
REFERENCES 90
APPENDIX 95
LIST OF ABBREVIATIONS
BHNT: Life insurance
LLC: Limited liability company with one member
Insurance contract: Insurance contract
Insured: Insured person
STBH: Insurance amount
DNBH: Insurance company
BMBH: Insurance buyer
KH: Customer
PhD student
TVV: Consultant
CSKH: Customer care
VCSH : Owner's equity
DT: Revenue
Insurance Business Activities: Insurance business activities
LN : Profit
BTC: Ministry of Finance
EFA : Exploratory Factor Analysis
KMO: Kaiser – Meyer – Olkin
CFA : Comparative Fit Index
SEM : Structural Equation Modeling