Paper info: Drivers of Customer Perceived Value in B2B Insurance Services - Defining the Needs of Small and Medium Sized Enterprises
Title
Drivers of Customer Perceived Value in B2B Insurance Services - Defining the Needs of Small and Medium Sized Enterprises
Authors
Hanna-Riikka Kuokkala and Raimo Voutilainen
Place of Publication
The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.
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Abstract
ABSTRACT
Understanding the basis of customer value is perceived as an important source for competitive advantage and the foundation for long-term buyer-supplier relationships. Despite the fact that creating customer value is considered important in business relationships, only few suppliers can define the value of their products and services for their customers. The purpose of this study is to identify what creates value for small and medium-sized enterprise (SMEs) customers in the field of business-to-business insurance services.
A case study approach was chosen due to the nature of the research. For this study fourteen interviews were conducted with representatives from three insurance companies and nine SMEs. Six value dimensions were identified from the results: the value of the insurance company, the value of property-casualty insurances, the value of life insurances, the value of the account manager, the value of personal/online services and the value of damage compensation. The value of the overall relationship was further analyzed through the four exchanges of the IMP Group‟s interaction process model: product/service exchange, information exchange, financial exchange and social exchange. The results indicate that considering business-to-business insurances, value seems to be highly related to the contact person, and the social exchange with the account manager, since they provide personal service including the application of knowledge and skills for the benefit of the customer.
This study contributes to the understanding of what creates value for SMEs in their relationship with their insurance company. By identifying the most important drivers of value, insurance companies can focus on improving their way of operating to better fulfill the needs of this customer segment.
Keywords: Customer perceived value, relationship value, insurance services, SMEs
Understanding the basis of customer value is perceived as an important source for competitive advantage and the foundation for long-term buyer-supplier relationships. Despite the fact that creating customer value is considered important in business relationships, only few suppliers can define the value of their products and services for their customers. The purpose of this study is to identify what creates value for small and medium-sized enterprise (SMEs) customers in the field of business-to-business insurance services.
A case study approach was chosen due to the nature of the research. For this study fourteen interviews were conducted with representatives from three insurance companies and nine SMEs. Six value dimensions were identified from the results: the value of the insurance company, the value of property-casualty insurances, the value of life insurances, the value of the account manager, the value of personal/online services and the value of damage compensation. The value of the overall relationship was further analyzed through the four exchanges of the IMP Group‟s interaction process model: product/service exchange, information exchange, financial exchange and social exchange. The results indicate that considering business-to-business insurances, value seems to be highly related to the contact person, and the social exchange with the account manager, since they provide personal service including the application of knowledge and skills for the benefit of the customer.
This study contributes to the understanding of what creates value for SMEs in their relationship with their insurance company. By identifying the most important drivers of value, insurance companies can focus on improving their way of operating to better fulfill the needs of this customer segment.
Keywords: Customer perceived value, relationship value, insurance services, SMEs