The interrelationship between service quality, relational benefits, customer satisfaction and behavioural intentions in the South African short–term insurance industry
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South African short-term insurers operate in a highly competitive market but do not successfully differentiate themselves from competitors. One way differentiation can be achieved, is to adopt a customer-focused approach where short-term insurers engage in CRM initiatives such as providing quality services and relational benefits to satisfy customer needs and subsequently retain customers over the long term. This study investigates the effect of service quality and relational benefits on customer satisfaction, as well as the effect of customer satisfaction on behavioural intentions in the short-term insurance industry. A quantitative, descriptive research design was followed and convenience sampling was used to select respondents. Data was collected by means of self-administered surveys from shortterm insurance customers in Gauteng, South Africa. The results of the structural equation model indicate that service quality and relational benefits have a significant effect on customer satisfaction, which in turn has a significant effect on customers’ behavioural intentions. The paper also offers several managerial implications.