Study of factors affecting customer patronage: engagement model of health insurance

Purpose Improving health outcomes requires a robust health-care service model that delivers cost-efficient services and increase customer patronage. The purpose of this study is to examine how service quality and convenience influence perceived value, satisfaction and customer patronage of health insurance policyholders. Based on contemporary research, this study further investigates the moderating role of trust, inertia, insurer type and word-of-mouth (WOM) on relationship between satisfaction and customer patronage. Design/methodology/approach This study conceptualized the dimensions of SERVQUAL and SERVCON as drivers of perceived value leading to satisfaction and finally customer patronage in presence of four moderators. To test the hypotheses, data from 500 consumers who had a running health insurance policy was collected and analyzed using partial least square path modeling. Findings The results of this study showed service quality and convenience dimensions significantly affected perceived value. Perceived value strongly influenced satisfaction and customer patronage intentions. Satisfaction had a significant positive effect on patronage. WOM and trust moderated the satisfaction–patronage relationship for recommendation intention but not repurchase intention. The moderators had an indirect bearing on customer patronage. Social implications Such an engagement ecosystem can be considered to be a revolution, as it will change the way businesses are conducted and how stakeholders interact with one another. Originality/value This study adapts and integrates the SERVQUAL and SERVCON models to health insurance domain. Second, this study conceptualizes a modified view of post-benefit convenience relevant for health insurance as policy renewal intention rather than returns/exchanges. This addresses a gap in the SERVCON scale's applicability to insurance services. This study also makes a novel attempt of examining implication of WOM and trust in health insurance domain.