African Journal of
Marketing Management

  • Abbreviation: Afr. J. Mark. Manage.
  • Language: English
  • ISSN: 2141-2421
  • DOI: 10.5897/AJMM
  • Start Year: 2009
  • Published Articles: 153

Full Length Research Paper

A conceptual framework proposition for customer loyalty in the short-term insurance industry - A South African perspective

Lauren Strachan1 and Mornay Roberts-Lombard2*
  1Department of Marketing Management, University of Johannesburg, South Africa. 2C-Ring 607, Kingsway Campus, Auckland Park, Johannesburg, 2006, Gauteng Province, South Africa.
Email: [email protected]

  •  Accepted: 05 August 2011
  •  Published: 31 August 2011



The purpose of the study was to investigate CRM and its influence on customer loyalty at selected short-term insurance providers in Gauteng. The target population included all South Africans who currently have a policy with at least one of the selected short-term insurance providers, namely: Outsurance, Santam, Telesure and Hollard. The convenience sampling method was applied and samples of 500 respondents were selected. Personal interviews were conducted with respondents and a structured questionnaire was used for the gathering of data.The statistical analysis that was used in the study included a multiple regression analysis to test the hypotheses formulated for the study and an analysis of variance test (ANOVA). The study indicated that a significant positive relationship exists between conflict handling and CRM at four selected short-term insurance providers. It was also indicated that a significant negative relationship existed between commitment and CRM. It was evident that no relationship existed between trust and two-way communication and CRM. The study also revealed that a strong relationship existed between CRM and customer loyalty at the four selected short-term insurance providers in South Africa.


Key words: Short-term insurance organisation, customer relationship management, customer loyalty, trust, commitment, two-way communication, conflict handling.