The Effect Of Customer Satisfaction On Behaviorai Intentions A Study On Consumer Behavior Of Car Insurance Consumers In Melbourne, Australia

Abstract

It has often been argued that customer satisfaction can contribute signifcantly to a companys success in a variety of ways. This research aims to investigate the efect of customer satisfaction on behavioural intentions. Two determinants of behavioral intentions examined in this study namely repurchase intentions and positive word-of-mouth communication. The model has been tested using surveyed data from 546 car insurance consumers in Melbourne, Australia. The empirical results of this study show that the higher the level of satisfaction, the higher the consumers intentions to repurchase and inform positive information about the purchased product and company to other people. This means that the more satisfed the consumers the more likely they are to repurchase car insurance from the same company and more likely to do positive word-of-mouth communication. Thus, behavioral intentions expressed by consumers depend on their levels of satisfaction. Hence, the company might maintain their existing customers and atract new consumers to achieve better fnancial performance. Discussion and managerial implications are provided based on research results.