Path analysis of perceived service quality, satisfaction and loyalty in Greek insurance

Purpose - The purpose of this article is to investigate the path service quality → customer satisfaction → loyalty, at the level of constructs, drawing from the Greek insurance industry. Design/methodology/approach - A SERVQUAL type service-quality instrument is developed for Greek insurance. Confirmatory and exploratory factor analyses are used to determine the scale's dimensionality. Path analysis is utilized to examine a model linking service quality, customer satisfaction and loyalty at the level of constructs' individual determinants. Findings - SERVQUAL's dimensionality is not confirmed. A non-tangibles, tangibles structure exists in Greek insurance. "Tangibles" does not affect customer satisfaction while WOM is an antecedent of repurchasing intentions. Satisfaction does not directly influence the latter. Research limitations/implications - This study suffers the limitation that it tests the fit of the model within the limits of a single service industry. Another limitation is availability sampling. However, the satisfactory fit of the estimated model allows for the study to be a reliable comparison basis for future research. Practical implications -Insurance managers may use GIQUAL for measuring the quality of insurance services offered. They must improve the intangible rather than the tangible elements of service and direct their support mechanisms towards developing customers willing to engage in positive WOM. The proposed model can be used to provide comparable findings across sectors, countries and time provided that, in each case, an appropriately customized SERVQUAL type scale is used. Originality/value - This study explores the service quality, satisfaction, and loyalty path at the level of specific dimensions drawing from Greek insurance.