IMPACT OF SERVICE QUALITY ON SMALL AND MEDIUM ENTERPRISES INTENTION TO PURCHASE INSURANCE IN KADUNA STATE
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Date
2017
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Abstract
The important roles that SMEs and insurance are playing towards achieving economic growth
had been widely acknowledged. Between the duo, a symbiotic relationship exist. The entrance of
so many players into the insurance industry should be a source of joy to SMEs in Nigeria as they
are exposed to a myriad of risks. In order to achieve the mutual benefits that exist between them,
insurance firms as a matter of fact, should provide quality service. For over two decades, it has
been acknowledged that service quality has become a great differentiator as well as the most
powerful competitive weapon which many firms in the service arena possess. This study
therefore investigated the impact of insurance firms‟ service quality on SMEs‟ intention to
purchase insurance in Kaduna state. Survey research design was employed in the study which is
cross sectional in nature. Primary data was collected through self administered questionnaire
issued to the respondents using stratified sampling technique. The data was collected from a
sample of 174 out of a total population of 201 SMEs operators in Kaduna state. Descriptive and
inferential statistics were used to analyze the data collected for the study with the aid of
Statistical Package for Social Science (SPSS) version 20. Gap and multiple regression analyses
were used for the hypotheses formulated for the study. The findings revealed that SMEs are
willing to purchase insurance but the level of the quality of service provided by the insurers in
the state is discouraging. The study recommended that drastic efforts should be made by the
insurers to improve their services in terms of reliability, assurance, empathy and responsiveness
that will meet the expectations of SMEs in the state.