SAMUEL Josephine
Department of Marketing, Faculty of Administration and Management
Rivers State University Port Harcourt
josephine.samuel@ust.edu.ng
NWOKAH N. Gladson
Department of Marketing, Faculty of Administration and Management
Rivers State University Port Harcourt
DIDIA James U. D.
Department of Marketing, Faculty of Administration and Management
Rivers State University Port Harcourt
HARCOURT Horsfall
Department of Marketing, Faculty of Administration and Management
Rivers State University Port Harcourt.
Abstract
This study examined the relationship between commitment and customer retention in insurance companies in Rivers State, Nigeria, focusing on customer satisfaction, repeat purchase rate, customer lifetime value, and customer advocacy as measures of retention. Utilizing a quantitative approach, the research distributed 184 copies of questionnaire, and yielded 98 usable responses. The analysis employed Spearman’s rho correlation to assess the relationships among the variables. The findings revealed significant positive correlations between commitment and customer satisfaction (rho = 0.552, p < 0.05), repeat purchase rate (rho = 0.641, p < 0.05), customer lifetime value (rho = 0.561, p < 0.01), and customer advocacy (rho = 0.421, p < 0.05). These results indicate that higher levels of commitment are associated with increased customer satisfaction, repeat purchase rates, lifetime value, and advocacy, suggesting that commitment plays a crucial role in enhancing customer retention within the insurance sector. The study’s insights are supported by relationship marketing theory and social exchange theory, which emphasize the importance of commitment in fostering strong customer relationships. This research contributes to the understanding of customer retention dynamics in Nigeria’s insurance industry, highlighting the need for companies to prioritize commitment in their strategies to cultivate enduring customer relationships and improve overall retention rates.
Keywords: Commitment, customer retention, customer satisfaction, repeat purchase rate, customer lifetime value, customer advocacy