Antecedents and consequences of corporate reputation from a customer perspective in Takaful (Islamic insurance) industry

Abstract

The Takaful (Islamic Insurance) industry is still in infancy in the UAE. Almost eighty percent of the insurance industry is conventional, and the remaining is Takaful. A firm’s reputation is one of its most important intangibles resources, and it is a major source of competitive advantage and to improve financial performance. Many of the customers choosing their service provider consider reputation criteria among other factors. It is worth determining the antecedents and consequences of corporate reputation in the Takaful industry so that marketers can improve the reputation of their service providers and their industry by using various strategies to increase the loyalty and word of mouth among Takaful customers. The sample size is 325, and data was gathered from Takaful customers who have car Takaful policies. Scale and items for each construct were initially gathered from existing literature and then refined with the help of academic and industry experts. The measurement instrument used was analysed for reliability, convergent, and discriminant validity by means of confirmatory factor analysis. The research hypotheses were tested by using structural equation modelling. Corporate social responsibility (CSR), customer satisfaction, trust, and social media engagement proved to be most important antecedents of Takaful service providers. The findings suggest that Takaful marketers should consider in investing in effective reputation strategies to gain loyalty and perceived customer value. The study provides valuable insights into the antecedents and consequences of corporate reputation in the Takaful industry. Since this study focuses only on Takaful industry and was cross-sectional, further studies need to be done. This study found that corporate reputation is influenced by national culture, and it suggests effective strategies to improve the reputation of Takaful service providers compare to their counterparts in conventional insurance.

The Mediating Effect of Trust in the Relationship Between Reputation and Opportunism Towards Commitment to Paying Zakat

“…In addition, Kuncaraningsih and Ridla (2015) said that good corporate governance also influenced service satisfaction directly. Other antecedents are corporate social responsibility (CSR) based perceive identity, overall service quality (Yasin, 2017), ethical brand (Alwi et al, 2017), and national culture (Bhatti, 2018).…”

Forging customer satisfaction through commitment-trust factors in financial insurance services: moderating role of corporate image

“…Numerous studies have highlighted the significance of customer satisfaction and service quality (Mohd Shaladdin et al , 2018), the role of agents (Kamil and Nor, 2014), perceived cost (Edward and Sahadev, 2011) and corporate image (Bhatti, 2018), all of which have a positive impact on customer satisfaction. The findings of the previous studies noted that the strength or weakness of the relationships between the customers and the financial insurance service provider depends greatly on the corporate image of the company in the market, along with the favorable amount of service quality, perception of the cost of financial services and the agent’s trustworthiness.…”

“…The previous studies evident that the integration of service quality and perceived cost provides a basis for trust between the financial service provider and its customers (Khoa, 2020). It is also proven that financial agents’ credibility in the industry and their corporate image both contribute to higher levels of customer satisfaction (Bhatti, 2018). The current study is, therefore, one of the few to add: service quality, perceived cost and agents’ roles as the commitment–trust factors; and introducing the corporate image’s moderating role between the trust–commitment factors and customer satisfaction in Malaysia's Takaful sector. …”