The examination of social and service relational aspects on customers' retention

Abstract

Consumers are increasingly joining social networking sites (SNS) where they build online relationships with friends and brands they engage with. While SNS related studies are growing, the Middle East region still lacks a proper understanding relating to SNS effects on customer retention within a service environment. This study aims to develop the understanding pertaining to SNS relational factors and the ensuing consequence of such bonding on the social platform’s advertising value, consumers’ proneness in comparing insurance premiums and the effect on retention. An internet-based survey was filled by 297 respondents on Facebook, targeting individuals who already use an insurance company’s services. The model measured the overall experience on Facebook while integrating socialization with friends, relationship with the social network itself, SNS ad value, premium comparison, and retention and customer service. This study is amongst the first to examine the effects of relational aspects, from a peer-to-peer and peer-to-SNS perspectives, on the social ad value and the ensuing influence on price comparison propensity and the effects on customer retention in the region.