Influence of distribution channels on consumer purchase behavior in the life insurance industry: a case of Britam Life Assurance Company Kenya
Date
2021
Authors
Magati, Steve K. B.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Industry reports have shown that consumer dissatisfaction with the quality of service and product offering among insurance firms has been growing. This has been occasioned, in part, by the limited knowledge on the role of distribution channels towards consumer purchase behaviour within the life insurance firms in Kenya. This study sought to establish the effect of the various distribution channels adopted on life insurance consumer purchase behavior. The specific objectives of the study were determining the impact of; direct distribution channels, bank-led distribution channels, electronic distribution channels, and agency-led channels on consumer purchase behavior. The study adopted a descriptive research design. The population of the study was life insurance customers within Britam Insurance Limited. The sample respondents were 398 customers who were selected to participate in this study. The research utilized a structured questionnaire in the data collection with Google forms being used to administer the questionnaire. The collected data were screened and coded into SPSS version 25 for subsequent quantitative analysis. The study relied on descriptive analysis, correlational analysis, and regression analysis. This study utilized bar graphs, charts, and tables in the presentation of the results. The study achieved a 92% response rate, and the results indicate that most of the life insurance customers have had a policy for more than four years. The study noted a positive correlation between direct distribution channels, bank-led distribution channels, electronic distribution channels, and agency-led channels. The regression results indicate there is a positive and significant relationship between distribution channels and consumer purchase behavior within life insurance customers. The study concludes that direct-distribution channel, bank-led distribution channel, and agency-led distribution had a significant influence on consumer purchase behavior at Britam Life Assurance Kenya. The study concludes that electronic distribution channels did not have a significant influence on consumer purchase behavior at Britam Life Assurance Kenya. The study recommends that insurance firms should enhance the offering of services through widening the branch network, which can expand direct distribution. The study further recommends that insurance firms should foster partnerships and alliances with commercial banks to stimulate the demand for life products through commercial banks. Further, the study recommends that insurance firms should train and equip their agents with relevant practices and skills that can enhance their reliability and convenience in service offering.
Description
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Keywords
Distribution channels, Consumer purchase behavior, Britam Life Assurance Company Kenya