Souhardya Banerjee
Saiyam Arora
FLOW OF PRESENTATION
Problem Statement
An insurance company facing stiff global
competition chipping its loyal customer base
Tough business environment
Price competitiveness need to match
customer needs for trusting relationships
To enhance the companys competitive
position in the customers mind
Company Seeking for Driving Loyalty Up
Strategy
Factor Analysis
Trust Agent
Satisfaction
Trust
Company
ShortTerm
value
LongTerm
Value
Loyalty
Beh_loyalty: (loy1+loy2+loy3+loy4)/4
Cog_loyalty : (loy5+loy6+loy7+loy8)/4
Satisfaction = (inter1 + inter2 + inter3)/3
Trust on Agent =
(rep17+rep18+rep19+rep20)/4.
Trust on company
=(prac17+prac18+prac19+prac20)/4.
Value_Shortterm = (val1+val2+val3)/3.
Value_Longterm= (val4+val5+val6)/3.
Predictor
Variable :
Satisfaction
Trust_agent
Trust_Comp
Value_ST,
Value_LT
Hypothesis :
H0 : KLPs (trust on agent, trust on company, customer satisfaction, long
term and short term value ) do not have a influence in driving up the
loyalty loyalty.
H1: KLPs (trust on agent, trust on company, customer satisfaction, long
term and short term value ) have a influence in driving up the loyalty
loyalty.
If p value > 0.05 , we accept the null hypothesis and reject otherwise
Linear
Normality
Since median comes user
+-2sigma mean. Also
std. residual is zero at
mean. Thus it is normal
Results
Adjusted R square change is 0.523 means 52.3% of main
factors are influencing
It is significant as for p < 0.05 and null hypothesis is
rejected
Cognitive Loyalty is dependent on all the independent
variables
The dependency is higher in short term value variable.
VIF< 10 that satisfies that they are not multi-collinear.
Normality
Since median comes user
+-2sigma mean. Also
std. residual is zero at
mean. Thus it is normal
Linear
Trends shows that it is
following a nearly a
linear trial.
Independent of
Errors
The linear curve shows
that it is Independent
Results
Adjusted R square change is 0.602 means 60.2% of main
factors are influencing model.
It is significant as for p < 0.05 and hypothesis is rejected
Behavioural Loyalty is dependent on all the independent
variables
The dependency is higher in satisfaction and long term value
variable
VIF< 10 that satisfies that they are not multi-collinear.
Linear
Normality
Since median comes user
+-2sigma mean. Also
std. residual is zero at
mean. Thus it is normal
Removing Outliers
Outliers present in the model as COO Distance > 0.04 for some
data points
Multicollinearity
We have
considered 0.9
as the cut-off
value. Since no
correlation
value is above
or equal to 0.9,
it can be
concluded that
significant
multicollinearity
is not present
between any of
the
independent
variables.
Therefore, it is
appropriate to
proceed with
Multiple regression
Multiple regression
observed that the models are significant (<0.05) in case of the data specific to a
ntries.
The US-specific data
ANOVAa
Model
1
Regression
Sum of Squares
423.537
df
5
Mean Square
84.707
F
125.127
Sig.
.000b
Residual
159.088
235
.677
Total
582.625
240
a. Dependent Variable: loyalty
b. Predictors: (Constant), Value_Shortterm, Satisfaction, Trust, Agent, Value_Longterm
Germany-specific data
Model
1
ANOVAa
Sum of
Squares
500.027
293.813
793.840
df
Mean Square
F
Regression
5
100.005
111.642
Residual
328
.896
Total
333
a. Dependent Variable: loyalty
b. Predictors: (Constant), Value_Shortterm, Satisfaction, Trust, Agent, Value_Longterm
Holland-specific data
Model
1
Sig.
.000b
ANOVAa
Sum of Squares
133.154
229.196
362.350
df
Mean Square
5
26.631
198
1.158
203
Regression
Residual
Total
a. Dependent Variable: loyalty
b. Predictors: (Constant), Value_Shortterm, Satisfaction, Trust, Agent, Value_Longterm
Sig.
23.006
.000b
Adjusted R Square
The US
Model Summaryb
Change Statistics
Std. Error
Adjusted R of the
R Square
Sig. F
DurbinModel
R
R Square Square
Estimate Change F Change
df1
df2
Change
Watson
1
.853a
.727
.721
.82278
.727 125.127
5
235
.000
2.170
a. Predictors: (Constant), Value_Shortterm, Satisfaction, Trust, Agent, Value_Longterm
b. Dependent Variable: loyalty
Germany
Model
1
Model Summaryb
Change Statistics
Std. Error
Adjusted R of the
R Square
Sig. F
DurbinR
R Square Square Estimate Change F Change
df1
df2
Change
Watson
.794a
.630
.624
.94645
.630
111.642
5
328
.000
1.836
Holland
Model Summaryb
Change Statistics
Std. Error
Adjusted R of the
R Square
Sig. F
DurbinModel
R
R Square Square Estimate Change F Change
df1
df2
Change
Watson
1
.606a
.367
.351 1.07590
.367
23.006
5
198
.000
2.102
a Predictors: (Constant), Value_Shortterm, Satisfaction, Trust, Agent, Value_Longterm
b. Dependent Variable: loyalty
highest value of Adj. R sq. is in case of the US, which is 0.721. i.e. 72.1% variatio
lty is explained by the IVs considered. That value is 62.4% in case of Germany.
and, however, has the adj. R sq. value just 0.351, which means there exist other
t from the IVs considered who drive the customer loyalty.
Coefficientsa
Standardi
zed
Unstandardized Coefficien
Coefficients
ts
Model
1
Beta
t
1.421
95.0% Confidence
Interval for B
Collinearity Statistics
Lower
Upper
Sig.
Bound
Bound Tolerance
VIF
.157
-.121
.745
(Constant)
B
Std. Error
.312
.220
Satisfaction
.081
.037
.115
2.172
.031
.007
.154
.414
2.418
Agent
.128
.044
.185
2.884
.004
.041
.216
.282
3.543
Trust
.158
.050
.231
3.165
.002
.060
.256
.219
4.569
Value_Shortt
.096
erm
Value_longt
.190
erm
a. Dependent Variable: loyalty
.053
.131
1.838
.067
-.007
.200
.228
4.394
.057
.278
3.341
.001
.078
.303
.168
5.958
(Constant)
Satisfaction
Agent
Trust
B
Std. Error
-.255
.237
.226
.054
.064
.053
Beta
.292
.083
t
-1.077
4.185
1.207
95.0% Confidence
Interval for B
Collinearity Statistics
Lower
Upper
Sig.
Bound
Bound Tolerance
VIF
.282
-.722
.211
.000
.120
.332
.232
4.308
.228
-.040
.168
.239
4.191
.120
.060
.151
1.980
.049
.001
.238
.194
5.145
Value_Short
.184
term
Value_longt
.110
erm
a. Dependent Variable: loyalty
.051
.218
3.626
.000
.084
.283
.313
3.195
.053
.137
2.079
.038
.006
.213
.261
3.825
l the Independent Variabless have significance values <0.05 except for the Agen
est of them are going to be part of the Multiple Regression Model.
ased on the unstandardized coefficients of the IVs, following model is made
Unstandardized
Coefficients
Model
1
B
(Constant)
Satisfactio
n
Agent
Std. Error
.236
.459
.096
.100
Coefficientsa
Standardiz
ed
Coefficient
s
Beta
.098
.515
.956
95.0% Confidence
Interval for B
Collinearity Statistics
Lower
Upper
Sig.
Bound
Bound Tolerance
VIF
.607
-.669
1.142
.340
-.101
.293
.302
3.308
.172
.082
.176
2.086
.038
.009
.335
.447
2.238
.091
.089
.097
1.023
.308
-.084
.266
.353
2.831
Value_Sh
.010
ortterm
Value_lon
.280
gterm
a. Dependent Variable: loyalty
.112
.011
.088
.930
-.211
.230
.221
4.517
.093
.316
3.025
.003
.098
.463
.293
3.415
Trust
Recommendations
Company should implement good CRM
programs to keep the customer base
satisfied
because Satisfaction and long term value
are the major factor significant in driving up
the Loyalty
More long term insurance policies to
generate high Long term value from
Customers should be included