Norjan Binti Saleem

CUSTOMER SATISFACTION TOWARD AGENTS AT ETIQA BANDAR BARU KLANG
NORJAN BINTI SALEEM 2008525101
BACHELOR OF BUSINESS ADMINISTRATION (HONS) INSURANCE FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA KAMPUS BANDARAYA MELAKA
NOVEMBER 2010
CUSTOMER SATISFACTION TOWARD AGENTS AT ETIQA BANDAR BARU KLANG
NORJAN BINTI SALEEM 2008525101
Submitted in Partial Fulfillment of the Requirement for the Bachelor of Business Administration (HONS) Insurance
FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA KAMPUS BANDARAYA MELAKA
NOVEMBER 2010
BACHELOR IN BUSINESS ADMINISTRATION (HONS) INSURANCE FACULTY OF BUSINESS MANAGEMENT UNIVERSITY TECHNOLOGY MARA MELAKA
DECLARATION OF ORIGINAL WORK"
IM, NORJAN BINTI SALEEM, MATRIX NO. 2008525101
Hereby, declare that, This work has not previously been accepted in substance for any degree, locally or overseas, and not being consonantly submitted for this degree or any other degrees. This project paper is the result of my independent work and investigation, except where otherwise stated. All verbatim extracts have been distinguished by quotation marks and sources of my information have been specifically acknowledged.
Signature
Date
...
LETTER OF SUBMISSION November 2010
The Head of Program Bachelor of Business Administration (Hons) Insurance Faculty of Business Management Universiti Teknologi MARA 75300 Bandaraya Melaka Melaka
Dear Sir, SUBMISSION OF PROJECT PAPER Attached is the project paper titled CUSTOMERS SATISFACTION TOWARD AGENTS AT ETIQA BANDAR BARU KLANG to fulfill the requirement as needed by the Faculty of Business Management, Universiti Teknologi MARA Thank You.
Yours sincerely
NORJAN BINTI SALEEM 2008525101 Bachelor of Business Administration (Hons) Insurance
ACKNOWLEDGEMENT First of all I would like to praise my grateful of Allah S.W.T for giving me the strength and patience to complete the project paper. Alhamdulillah, with the grace and blessings of the Almighty ALLAH S.W.T, I direct to complete this research, which could have not been proficient without HIS willing. My sincere gratitude goes to my dedicated advisor, Miss Nurul Aida Harun for always spending time with me to contribute her idea and guided me to perform this report until complete. Through her help, comments, ideas, and suggestions I have benefited extremely and her steady support from the beginning until now is much appreciated. I would also like to express my gratitude to my second examiner, Prof. Madya Hj Ahmad Bin Wahid for her guidance and advises towards my project paper. I also would like to extend my appreciation also goes to staff Etiqa Bandar Baru Klang especially Mr. Azhari Ismail which is my supervisor and truly grateful to all respondent for their cooperation by completing my questionnaire. Lastly, I would like to thanks to my beloved family, and anyone who had already give me a lot of their support, assistance and encouraging me to complete this research study. May the kindness and help given would be bless by God.
Thank you.
TABLE OF CONTENTS Acknowledgement Table of Contents List of Tables List of Figures Abstract
1 Chapter 1 Introduction
iv v vii viii ix
1.1 Introduction 1.2Background of Study 1.3 Problem Statement 1.4 Research Question 1.5 Research Objectives 1.6 Scope of Study 1.7 Significance of Study 1.8 Limitations of Study 1.9 Definitions of Term 1.10 Theoretical Framework
2 Chapter 2 Literature Review
1 6 10 14 15 16 17 18 20 25
2.1 Customer Satisfaction 2.2 Factor That Affect Customer Satisfaction 2.3 Importance of Customer Satisfaction 2.4 Quality Service 2.5 Insurance
3 Chapter 3 Research Methodology
25 27 30 31 37
3.1 Introduction 3.2 Research Design 3.3 Sampling 3.4 Data Collection Method 3.5 Data Analysis
4 Chapter 4 Finding & Analysis
39 39 41 42 47 49 49 50 56 57 59
4.1 Introduction 4.2 Reliability 4.3 Respondent Profile 4.4 Descriptive Analysis 4.5 Descriptive Statistic
4.6 Regression
5 Chapter 5 Conclusion & Recommendation
5.1 Introduction 5.2 Conclusion 5.3 Recommendation

Bibliography Appendices Appendix A Appendix B Appendix C
61 61 64
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LIST OF TABLES Table 1.1 Numbers of Licensed Direct Insurers and Professional Reinsurer in Malaysia Numbers of registered agents Numbers of agent by country in Malaysia Life Insurance Companies in Malaysia rank according to their size of market share. Statistic on malpractices by the agents/agency leaders and action taken Realibility Statistic Frequency of Respondent by Education Rule of Thumb Level of customer satisfaction towards agent at Etiqa Bandar Baru Klang Mean & Std. Deviation for Dependent Variable. Coefficients (a) Factor That Influence the Customer Satisfaction 2
Table 1.2 Table 1.3 Table 1.4
3 4 8
Table 1.5
12
Table 4.1 Table 4.2 Table 4.3 Table 4.4
49 54 56 56
Table 4.5
57 59
Table 4.6
LIST OF FIGURES Figure 1.1 Figure 2.1 SERVQUAL model for Theoretical Framework The Kano Model of Customer (Consumer) Satisfaction. Frequency of Respondent by Gender Frequency of Respondent by Race Frequency of Respondent by Age Frequency of Respondent by Income Frequency of Respondent by Status Frequency of Respondent by became a Customer Mean of Five Dimension for Customer Satisfaction 25 27
Figure 4.2 Figure 4.3 Figure 4.4 Figure 4.5 Figure 4.6 Figure 4.7
50 51 52 53 54
55
Figure 4.8
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ABSTRACT Insurance is about helping people to protect their assets, maintain their lifestyles and build better future to them. Customer is an asset company so they become important to know about their needs and wants for quality in their products and services. Therefore, if the companys apparent performance exceeds a customers expectations, then the customer will satisfy and if not then the customer will dissatisfied. The research is conducted to study the customers satisfaction towards agent at Etiqa Bandar Baru Klang. Furthermore, research objectives for this study are to identify the level of customer satisfaction towards service provided, the level of service quality provided by agent at Etiqa Insurance & Takaful and to identify the most important factors that will influences customer satisfaction. The frequency, descriptive analysis, and regression from Statistical Package for Social Sciences (SPSS) been used in this research, a clear findings and result will be observed. The findings showed that most of the customers were satisfied with the services provided by the agent at Etiqa Insurance & Takaful. Overall, the most of customer are satisfied with the services provide by agent at Etiqa Insurance & Takaful, but they need to overcome the weakness with the service provided by agent. Hence, in order to improve and overcome the weakness to increase the customer satisfaction, the researcher gives some recommendations and suggestions after the final analysis have been made.
CHAPTER 1 INTRODUCTION
[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]
CHAPTER 1: Introduction 1.1 Introduction Insurance is about helping people to protect their assets, maintain their lifestyles and build better future to them. It also can be defined as transfer of risk to the insurer, will help to bear the losses that insured had been burden and been agrees to compensate the losses. Without insurance the insured, business enterprise or other party will have to burden the risk on self which will be costly. Insurance also can remove fear and worry for losses of individuals, business enterprise or others and in the same time insurance also have other benefit such as saving, social benefit, and investment funds. There are two classes of insurance such as life insurance and general insurance. The risk have been covered by life insurance such as sickness, old age, premature death and others will be occur to all of us but the risk covered for general insurance such as motor vehicles, marine and aviation, burglary and others may or may not be occur the losses. Types of insurance include property and casualty, life, health, disability, and long-term care insurance. The insurance company not selling their products to the client or customer, they will make the process of proposal form, documentation, handling the claim, give
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training and motivation talk and other service. Customer can buy the insurance products through the agent for individual and broker for company to protect their life or losses. McKay (2008) says that the Insurance agents may be referred to as insurance sales agents, help clients choose insurance policies that suitable their needs. The clients of insurance agent include individuals and families as well as businesses. Beside that, Captive agents work for an insurance company, and only sell that company's products and for the Independent insurance agents, or brokers, represent several companies. Customer have their right to choose the suitable products and service by the insurance company and agent, they must make the decision voluntarily and not forcedly. But customer can get the advice from the agent about the product and services of the insurance company and will be the financial planning services such as retirement planning.
Company Insurers and Professional Reinsurance Brokers Loss Adjuster Insurance Agency Number 46 33 36 More that 100
Table 1.1: Numbers of Licensed Direct Insurers and Professional Reinsurer in Malaysia
According to Bank Negara on 2009 Annual Reports state that; there are 46 insurers and professional reinsurance in Malaysia. Beside that, there are 33 licensed insurance brokers, 36 Adjusters Company and more than 100 insurance agencies operating in Malaysia insurance industry.
Insurance Life insurance General insurance
Numbers of registered agent 80,078 35,930
Table 1.2: Numbers of registered agents Therefore, the numbers of registered agent in the insurance company reach 80,078 for life insurance and 35,930 for general insurance in the year 2009. The statistics show that the insurance industry had generated a huge number of customer and agent in Malaysia. Agent should be registered with the mandatory insurance associations under the act and not directly supervised by the bank. The Life Insurance Association of Malaysia for the life insurance agents and Persatuan Insurans Am Malaysia for general agents need been registered under this act. The minimum requirement for a new agent was raised to the Sijil Pelajaran Malaysia (SPM) but all agents are required to pass the compulsory Pre-Contract Examination for Insurance Agents (PCEIA) conducted by the Malaysian Insurance Institute (Annual Report of Bank Negara 2005).
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Now days, the numbers of agent been slowly decrease in the 2009 and we also have been heard about the problem behavior of the agent in the insurance industry such as given false information to the customer to get the business from them. They also take advantage to the customer that does not have good knowledge about the product and service of insurance, they reach the target and commission with misleading. The geographical distribution of agents is as below:
No. of Agents State/Years Johore Kedah Kelantan Melaka N.sembilan Pahang Penang Perak Perlis Sabah Sarawak Selangor Terengganu WP K.Lumpur WP Labuan Singapore 2008 5,444 1724 702 1498 1420 1616 3746 3163 120 2161 2782 7585 598 6118 30 59 2009 5194 1624 649 1417 1347 1473 3562 2891 124 1939 2360 7193 556 5553 29 19
Table 1.3: Numbers of agent by country in Malaysia

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This table shows the numbers of agent by country in Malaysia, the higher number of agent in Selangor and Johor. The large numbers of agent in the Malaysia need to improve their service because sometimes agent do their job only for part time so that they lack of time to gain the knowledge through training provided by the insurance company. Therefore that, this research to determine whether service provide by the agent are satisfy by the customer.
1.2
Background of study The company is registered under the 1984 Takaful Act of Malaysia, its structure is that of a Modified Takaful whereby the surplus from its operations are divided 80% policyholder and 20% shareholder for life operations and 50% each for nonlife products. The board of directors is selected by the shareholders (the Malaysian National Insurance Company and the Malaysia Islamic Economic Development Foundation). The company has 511 employees and provides individual life, group life, fire, motor, marine and aviation products through banking cooperative, agents and direct distribution Mayban Fortis Holdings Berhad was formed in 2001 as collaboration between Malaysia's largest local bank, Malayan Banking Berhad (Maybank) and Fortis International NV, one of the largest providers of integrated financial services in Europe. With a stake of 70% by Maybank and 30% by Fortis, the partnership saw the grouping of all Maybank's insurance companies under Mayban Fortis Holdings Berhad.
Mayban Fortis
MNI
Takaful
Etiqa Insurance & Takaful 6
In 2005, Mayban Fortis grew significantly with the acquisition of Malaysia National Insurance Berhad, Malaysia's largest national insurer and its subsidiary, Takaful Nasional Sdn Bhd, Malaysia's premier Takaful provider. Financially, the merger catapulted Mayban Fortis to the position of second largest insurer in Malaysia. At the end of 2007, the merger effort with Malaysia National Insurance and Takaful Nasional culminated in the rebranding of the entire Insurance and Takaful group to the new brand name - Etiqa. Etiqa will be the single master brand for all conventional and Takaful businesses under Mayban Fortis. An ongoing corporate streamlining exercise will see the eventual grouping of five operating entities under two anchor subsidiaries for Conventional and Takaful respectively: Malaysia National Insurance Berhad, now known as Etiqa Insurance Berhad, and Takaful Nasional Sdn Bhd, renamed as Etiqa Takaful Berhad. (Source adapted from www.etiqa.com.my) The insurance company makes the process of documentation of the claim for general and life insurance. Beside that, they also do the service such as renew insurance, issue the cover note, make a quotation for the general insurance and also increase the sales production of the agent. Customer and agent came to the Etiqa to get the service at the counter such as make a payment, check the production of agent, print income statement, ask for policy link, and send the proposal form and others.
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Rank Companies 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Great Eastern Prudential ING AIA Allianz HLA Maybank Life Am assurance UNI Asia Life MAA MCIS Zurich CIMB Aviva TM Asia Life Etiqa MANU Life TOTAL
2009 Market Share 359.6 231.6 168.9 160.8 119.4 100.2 65.4 63.2 57.4 57.4 46.2 29.4 28.9 28.8 26.3 1543.5 23.1% 14.9% 10.9% 10.3% 7.7% 6.4% 4.2% 4.1% 3.7% 3.7% 3.0% 1.9% 1.9% 1.9% 1.7% 97.5%
Table 1.4: Life Insurance Companies in Malaysia rank according to their size of market share. (Source: Life Insurance Association Malaysia, LIAM)
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Table 1.0 above shows the market share of all Life Insurance Companies in Malaysia market share for the year 2009. During 2009 shows that ETIQA INSURANCE & TAKAFUL BERHAD is not listed from the top 10 rank as it is currently rank 14 from overall life insurance companies in Malaysia with total amount of 280,800 market share with holding only 2% from overall market share accumulate. This shows that ETIQA INSURANCE & TAKAFUL BERHAD is still in growth stage in marketing theories and need take necessary steps to be most preferred companies in wealth management such as rebranding. To ensure the growth of, ETIQA INSURANCE & TAKAFUL BERHAD the companies has to do aggressive marketing in order to be well known and to ensure the brand is always in clients mind so that ETIQA INSURANCE & TAKAFUL BERHAD will be more effective and aggressive in the market. To maintain all this insurance company must have great agents to influence the customers that insurance is the one of important thing to have in the life and give the good service to them. As foundations, the insurance company must select good agents to represent their company and give good training to the agents. The training provided is about the company product, about the self confidence and the marketing strategic so they will have good knowledge to influence the customer. For the agents, they must work hard to ensure that all the policies are properly sell and in the same time need to give the good service to the customer.
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Appreciate all the benefit and training given by the company and agents are bound to reach their budget for each financial year end. 1.3 Problem statement According to Bank Negara on 2009 Annual Reports state that the numbers of registered agent in the insurance company reach 80,078 for life insurance and 35,930 for general insurance in the year 2009. So it show there are many of agent in our country but whether the number of agent are satisfaction with the service been provided to the customer. However, this study will be show to us whether customer satisfaction with the agent that given services to them. The research problem is the customer satisfaction towards the agent service such as detail information about the products. Midwest news stated that journal insurance department American Mutual of Illinois (2010) by the insurance journal. Specifically, the agents and company failed to inform the service members that they were purchasing life insurance and misrepresented the life insurance as a savings plan. Since the customer had been complaining about the information given by agent not detail and clarity, this will make problem during the customer ask for claim. Problem can be arise when the services that provided by the agent at Etiqa Bandar Baru Klang to the customer was misleading that been show in the statistic on malpractices by the agent to the customer. Agent work as an advisor to the
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customer and help customer for given clarity information about the product and risk been covered in the policy. The agent must act professional and friendly to the customer, not being selfish to get the business from customer. Besides that, agent will receive the commission or bonus when they get the business from the customer, agent no supposedly to being selfish to receive a commission or bonus by given false information or misleading. It will become the bad reputation when the agents not explain properly about the product and services to the customer, so the reputation of insurer and agent need to been aware. Beside that they need to been friendly and comfortable to the customer when sell the policies not been annoying to them. According to the Dr Jaafar Che Mat, director of Tuanku Jaafar Hospital (HTJ) say that patient should be allowed to get rest and treatment at the hospital in peace and the insurance agents can discuss matter with their client after they discharged.
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The statistic on malpractices by the agents/agency leaders and action taken by the company for the period from 1stJuly 2009 to 30th June 2010
UNDER INVESTIGATION 49
NO 1
OFFENCE Misleading & False Information
TOTAL TERMINATED 54 5
Misappropriation of premium
13
3 4
ROP/ROC Involve with other Takaful
25 28 20
LAST WARNING 8
Breaches
and
19
16
unethical behavior
Table 1.5: Statistic on malpractices by the agents/agency leaders and action taken. According to Head, Intermediaries, Benefit, and Remuneration Administration, the table show about the offence of agent for 1 year. The offence of misleading was the top mistake has been done by the agent and it will make the bad reputation of customer towards agent or insurer. The statistic on malpractices show the mistakes or offence been made by agent to the customer and insurance company. Increasing of the malpractices will give bad impact to the insurance company because the level of customer satisfaction will be low. This study is to
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determine the satisfaction of customer towards the service provided by the agent, because this statistic been show that several mistakes made by agent and do not be professional. When this happen customer not satisfy with the service by agent and the sales of agent also will decrease and in the same time the insurance company will get the impact by the customer which they will put the blame to the insurance company and the production of the insurance company may be decrease cause of the bad reputation. This research is to look the level satisfaction of the services provided by the agent at the insurance company. As the research could present significant findings on the reality of the satisfaction of the service provided. The services is in term of help client choose insurance policies, explanation of the products, collected money on the behalf of the customer, help their clients fill out the necessary forms to obtain the desired insurance.
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1.4
Research Questions
This study will explore the research questions such as: 1.4.1 What are the levels of customer satisfaction towards services provided by agent at Etiqa Insurance & Takaful? 1.4.2 What is the level of service quality provided by agent at Etiqa Insurance & Takaful? 1.4.3 What are the most factors that influence customer satisfaction towards services provided by agent at Etiqa Insurance & Takaful?
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1.5
Research objectives
This study is to explore the customer satisfaction among the agent towards services provided by agent at Etiqa Bandar Baru Klang. The following will be the objectives of the study: 1.5.1 To identify the level of customer satisfaction towards service provided by agent at Etiqa Insurance & Takaful. 1.5.2 To identify the level of service quality provided by agent at Etiqa Insurance & Takaful. 1.5.3 To identify the most factors that influences the customer satisfaction towards services provided by agent at Etiqa Insurance & Takaful.
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1.6
Scope of study
This research focus on the customer satisfaction towards agents which provided services to customer. The target respondent is the customer at Etiqa Bandar Baru Klang and 50 customers will be participated in this survey. Even though there are more than 20 insurance organizations in Malaysia, for this research purposes, the researcher only focus on once insurance organization in this research. This study focus on customer at Etiqa Bandar Baru Klang located at Jalan Tiara 2A/KU1 Bbk Commercial Centre Bandar Baru Klang.
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1.7
Significant of study
The significant of survey on this level satisfaction customer towards agents to the services provided by the Etiqa Bandar Baru Klang.
1.7.1
Student This research will help the student to gain knowledge and information about the agent and also provides them knowledge about the right of customer. This research also can help the student to take as a reference to make their survey or research.
1.7.2
Etiqa agent To giving them the information about the customer satisfaction and perception to the agent, so they can improve the behavior and attitude also gain more knowledge about the products and services.
1.7.3
Etiqa (company) This study will determine the customer satisfaction towards agent, so it advantage to the company to highline their problem and dissatisfaction by the customer to the agent services.
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1.7.4
Researchers This study giving the opportunity to the researcher to analyze, observe and interpret data collected. Beside that, the researcher will improve the communication skill and gain new knowledge.
1.8
Limitation of study
1.8.1
Cost limitation
During the practical training the researchers need to see the advisor to get the information and advice from the lecture. The cost of transport to see the advisor is a bit expensive which two times every month needs to see the advisor and the cost of printed the research report and proposal also expensive.
1.8.2
Time limitation
The duration of the practical training was relatively short which starting on June until October and in the same time need to complete the research too. They need longer time to get more sources to provide best result of finding to this study and lack of time doing the project paper because the researches need to join the activities and event at the practical training.
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1.8.3
Location limitation The location between University Technology Mara Malacca and the researcher house and working place is far so it will make the pressures to the researcher because need to manage time properly and in the same time need to complete the thesis.
1.8.4 Lack of Experience
The more experiences in conducting research can gain of knowledge and good research also quality. The researcher does not have much experience to conduct the research and need carefully to organize the research, beside that the researcher has limited resources and information because some journal, articles are private.
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1.9
Definition of terms
1.9.1 Insurance
Insurance is an agreement or deal, called an insurance policy, in which the insurer agrees to pay the insured of any loss suffered by accident or death called an insurance premium whereby a group of individuals facing similar risks can share the accidental losses of the unlucky few by the transfer of such risks to the insurer who agrees to reimburse the losses. The losses covered by the policy may include property damage or loss from accident, fire, theft or intentional harm; medical costs and others.
1.9.2
Agent An agent is some one who is authorized to act on behalf of another or represents an insurer and insurance agent may be authorized to request insurance business, collect premium and issue cover notes on behalf of the insurers. Agents are required to pass an examination known as Pre Contract Examination (PCE) before they can register with approved by PIAM or LIAM. There are different kinds of agent such as corporate agent, dual agent, foreign agent and independent agent.
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1.9.3
Customer A customer refer as a client, buyer or purchaser is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier or seller. This is typically through purchasing or renting goods or services, it also includes by extension any entity that uses or experiences the services of another. Beside that, a customer may also be a viewer of the product or service that is being sold despite deciding not to buy them. However, customer also has a more generalized meaning as in customer service and a less commercialized meaning in not-for-profit areas. It also implies a narrowly commercial relationship involving the purchase of products and services. However, some situation or environment, in which the emphasis is on being helpful to the people one is dealing with rather than on commercial sales, comfortably use the word customer to both internal and external customers.
1.9.4 Satisfaction The level of customer approval or satisfied when comparing a product's or service performance with his or her expectations. Also could refer to discharge, extinguishment, or retirement of an obligation to the acceptance of the obligor, or fulfillment of a claim. While satisfaction is sometimes
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1.10
Theoretical Framework
Tangibles
Reliability
Responsiveness
Customer Satisfaction
Assurance
Empathy
INDEPENDENT VARIABLE
DEPENDENT VARIABLE
Figure 1.1: SERVQUAL model for Theoretical Framework
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SERVQUAL model developed by Parasuraman & Zeithaml (1985, 1986, 1988, 1991, 1993, 1994; 1990). The SERVQUAL models purposes five dimensions such as: Tangibles the appearance of the physical facilities and materials related to the service. Reliability the ability to perform the service accurately and dependably. Responsiveness the willingness to help customers and provide prompt service. Assurance the competence of the system and its security, credibility and courtesy. Empathy the ease of access, approachability and effort taken to understand customers requirements. The SERVQUAL model can identify level of service quality experienced by customer is to determine the gap between their expectations and perceptions to the service that they receive from a specific service provider (Donnelly and Dalrymple, 1996). However this model can help to determine the quality of service provide by agent to the customer at Etiqa Bandar Baru Klang. The quality of service can determine the customer satisfaction by identify their service quality provided by agent to the customer. This model can identify by the responsiveness agent to help the customer by handling the problem arise by the customer and give accurate knowledge and information, the physical facilities and also the system of insurance are suitable to given the information about the customer requirements.
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equated with performance, it implies compensation or substitution whereas performance denotes doing what was actually promised.
1.9.5
Customer satisfaction Customer satisfaction can be experienced in a variety of situations and connected to both goods and services. It is a highly personal estimation that is greatly affected by customer expectations. Satisfaction also is based on the customers experience of both contacts with the organization and personal outcomes. It also can be defining satisfied customer within the private sector as one who receives significant added value. A customer may be satisfied with a product or service, an experience, a purchase decision, a salesperson, store, service provider, or an attribute or any of these. Customer satisfaction differs depending on the situation and the product or service. Instead, they focus on the customers entire experience with an organization or service contact and the detailed assessment of that experience.
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CHAPTER 2 LITERATURE REVIEW
CHAPTER 2:
Literature Review
2.1
CUSTOMER SATISFACTION
According to Hewlett-Packet (1992) ,defines customer satisfaction as a customer who recommend the product that been used to other people especially their own relatives, it also happened because of that exacting customers own practice in using the product and recommending the product to others.
It was developed by Oliver (1997) said that the customer satisfaction is the consumers fulfillment response, the degree to which the level of fulfillment is pleasant or unpleasant. It can determine whether they satisfied the service with friendly and respectful by the service provider.
According to Cardozo (1965) stated that; in maintaining a long term relationship between the customer and the firm itself, its main to them to have this kind of behavior from the customer. Beside that, they will build good environment and also get the advantage from the long term relationship for continues make a sales or business with customer.
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However, according to Murthy D. N. P.,. (2004) customer dissatisfaction can guide to the customers switching to a competitor or the company losing latent new customers due to negative word-of-mouth effect. The unpleasant or unimpressive of the service, the customer have the good reason to switching other competitor.
Kotler (2000) defines that a person feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations. However Hoyer and MacInnis (2001) said that, satisfaction can be related with feelings of acceptance, happiness, relief, excitement, and delight.
Customer satisfaction generally means customer reaction to the state of fulfillment, and customer judgment of the fulfilled state (Oliver, 1997). The main factor determining customer satisfaction is the customers own perceptions of service quality (Zeithamal & Bitner, 1996). In this study, we shall define service quality as the customers satisfaction or dissatisfaction produced by their experience of purchase and use of the service (Parasuraman, Zeithamal, & Berry, 1988).
Johnson and Fornell (1991) said that as a customers overall assessment of the performance of a close by the date. In additional, as an overall evaluation that is built up over time, satisfaction typically mediates the effects of product quality,
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service quality, and price or payment equity on loyalty (Bolton and Lemon (1999), Fornell (1996). Oliver (1999) also said it also contains a significant affective component, which is produced through repeated product or service usage.
Acoording to the Boulding (1993) influence the customer behaviors that help a firm, such as optimistic word of mouth and repurchase. However, Verhoef (2003) argues that longitudinal data that combine survey measures with subsequent behavior should be used to launch a contributory relationship between perceptions and behavior.
2.2
FACTORS THAT AFFECT CUSTOMER SATISFACTION
(Naoki Kano, 1984) has introduced a model; The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are apparent by customers and their effect on customer satisfaction.
Figure 2.1: The Kano Model of Customer (Consumer) Satisfaction.

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According the model show that: The Kano Model of customer satisfaction divides product attributes into three categories such as: 2.2.1 Threshold Attributes Threshold (or basic) attributes are the probable attributes of a product and do not provide an opportunity for product differentiation. Increasing the performance of these attributes provides retreating returns in terms of customer satisfaction; however the absence or poor performance of these attributes results in excessive customer dissatisfaction.
2.2.2
Performance Attributes Performance attributes are those for which more is generally better, and will recover customer satisfaction. On the other hand, an absent or weak performance element reduces customer satisfaction of the needs customers verbalize; most will fall into the category of performance attributes. These attributes will form the weighted needs against which product concepts will be evaluated. The price for which customer is willing to pay for a product is directly tied to performance attributes.
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2.2.3
Excitement Attributes Excitement attributes are unspoken and unexpected by customers but can result in high levels of customer satisfaction, though their deficiency does not lead to dissatisfaction. Excitement attributes often satisfy real needs of which customers are presently unaware. In a competitive marketplace where manufacturers products provide similar performance, providing excitement attributes that address unknown needs can supply a competitive benefit.
There are many factors that affect customer satisfaction. According to Hokanson (1995), these factors include friendly employees, courteous employees, knowledgeable employees, helpful employees, accuracy of billing, billing timeliness, competitive pricing, service quality, good value, billing clarity and quick service. Their customers needs and wants to achieve customer satisfaction need to satisfy by the organization, (La Barbera and Mazursky, 1983). Refer to Kotler (2000) the form taken by human needs as they are shaped by culture and individual personality
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2.3
IMPORTANCE OF CUSTOMER SATISFACTION
Importance of customer satisfaction because as a key reason for customer defection or discontinuation of purchase will influences repurchase intentions whereas dissatisfaction. La Barbera and Mazursky (1983).
Positive effect on an organizations profitability came from the customer satisfaction. According to Hoyer and Maclnnis (2001) satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth .
Clarke (2001) said that customer satisfaction is really no more than the price of contact to a category. For satisfaction to be successful, it must be able to form loyalty amongst customers. There is increasing recognition that the ultimate objective of customer satisfaction measurement should be customer loyalty, Sivadas and Baker-Prewitt (2000).
Quoted from McIlroy and Barnett (2000), an important concept to consider when rising a customer loyalty programmed is customer satisfaction. Satisfaction is a determine of how well a customers potential are met while customer loyalty is a measure of how likely a customer is to repurchase. Loyalty is weak because even if customers are satisfied with the service they will continue to defect if they
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believe they can get better value, convenience or quality elsewhere. In other words, we can have satisfaction without loyalty, but it is hard to have loyalty without satisfaction.
Mark Smith (2004) said that humanizing customers' satisfaction with service is a swiftly growing corporate preference and companies are increasing investment in tracking customer satisfaction. While only few companies able to systematically identify how to change service for the better service.
According to the John White (2000) in the article said that a good method to establish whether our customers are satisfied with us has been to ask them. Beside that, the business needs to guarantee that its employees have the skill and motivation to create and continue customer loyalty and need to educate employees to change their behavior, and show them which behaviors are required training, developing and rewarding them for doing so.
2.4
QUALITY SERVICE
According to the Herfled (1999), In order for agents to be responsive to the presale, during-sale, and after-sale service needs of their local clients, agencies must invest in training programs in which their agents are comfortable using the technological resources made readily available to them. Agent training in
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technology is important, because this same technology now makes it possible for customers to purchase insurance through alternate delivery systems that may not even require an agent.
The operationalization of customer outlook is probably another critical difference between the two concepts. Potential that motivate customer satisfaction are based on predictions of what is likely to happen during a transaction while outlook that drive service quality evaluations are based on customer desires and wants, and are motivated by what a consumer believes a service provider should offer state by Parasuraman (1988).
The finding by Zeithaml (1996) found that respondents loyalty to the company based on the service quality has a strong positive effect and a negative effect on propensity to switch. It means that the service quality have the positive effect to gain the loyalty from customer. Lehtinen and Lehtinen (1982) suggested that service quality consists of the equipment used (physical quality), the reputation of the company (corporate quality), and the dealing between contact personnel and customers (interactive quality) and it be state by Grnroos (1984) suggested that quality is a function of
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what the customer actually gains (technical quality) and the way the service is given (functional quality).
Quoted from Van Mannen and Schein (1979) state that; the authors suggestions for humanizing organizational service performance may involve the need for increased attempt at socialize new employees during the early training period.
According to the Wagner, Hollenbeck, Ashforth and Saks (1996) say that organizational socialization has been characterized by a number of academic scholars as basically the process by which employees learn, appreciate, and internalize an organizations goals, values, social knowledge, and expected behaviors. Since so much has been discussed about the importance of service quality and the need to improve on it, a re-examination of how that increase has been measured is in order.
According to Parasuraman (1985, 1988), say that service quality has been assessed, measured and perceived in various forms by several noted marketing scholars.
High levels of service quality should result in highly satisfied consumers state by Spreng and Singh (1993), it means the service to the customer must be very
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well to increase the customer satisfaction and fulfill the desires and needs of customer. In this intelligence, assessments of satisfaction are a useful finishing check on the quality delivery process. Though, a service quality approach such as SERVQUAL can assist in the improvement of quality delivery to help guarantee that the finishing check indicates satisfied rather than dissatisfied claimants.
Donnelly (1995) said these pressures arise internally from an actual desire to improve quality of services provided to communities, others are imposed through corporate initiatives like customer charters or through and increase in consumer activism. A customers satisfaction with individual service encounters will affect the customers satisfaction or dissatisfaction with the generally service experience (Johnston, 1994).
Lewis and Booms (1983) said that service quality is a measure of how well the service level delivered matches customer expectations delivering quality service means in compliance to customer expectations on a steady basis. But Zeithaml (1981) said that the firm may find difficult to understand how consumers identify their services and estimate service quality because most services cannot be counted, measured, inventoried, tested, and established in advance of sale assure quality.
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Service quality theory (Oliver, 1980) predicts that if performance does not meet their hope and quality increases as performance exceeds expectations so the clients will critic the quality is low. For this reason, customers expectations provide as the foundation on which service quality will be evaluated or judge by customers and as service quality increases, satisfaction with the service and intentions to recycle the service increase.
Quality and customer service have been recognized as serious designed issues in the 1990s for both public and private sector organizations (Donnelly, Wisniewski, Dalrymple and Curry, 1995). Parasuraman (1994) and Zeithaml (2000) suggested that customer satisfaction was a function of the difference between what they had predictable to get from the service and what them visible about the service that they had actually expected. A latest study by Zeithaml (2000) is known several aspects of the relationship between perceived service quality and profitability. The study confirmed the linkages between service quality and customer satisfaction, and between service quality and loyalty and on the 1993 Zeithaml state that, these expectations came from word-of-mouth promotion about the service that a customer has heard, past experience, the promises prepared about the service by its advertisements and by its sales representatives.
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Parasuraman (1991) planned the SERVQUAL scale, which consisted of the five dimensions of reliability, responsiveness, assurance, empathy and tangibility to estimate the gap between customers expectations of service and their perceptions of the actual service delivered. There was an "increasing awareness of the importance of service, customer operations, and customer contact" (Johnston, 1999). Service quality has been shown to have a direct relationship to company performance. It may be useful to describe what constitutes poor service quality. Parasuraman (1985) said that the list problems with service delivery and define all of these problems as differences or gaps. First, there is a gap between what the customer wants and what service providers think the customer wants. Second, there are problems translating the expectations of the customer into the design of the service. Third, the design of service systems does not always direct to the delivery of the service as designed. Finally, there is the problem of promising more than the service provides. Juran (1992) defined quality as fitness for use and Gronroos (1984) defined service quality as being a judgment the customer makes when he compares his outlook to the perception of the service he has just established which is related definition by Parasuraman (1985) define service quality as the point to which the service meets or exceeds customer expectations.
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2.5
INSURANCE According to the Bank Negara Malaysia, dialogue session with insurers and Takaful Operators say that; the meeting was also updated on other anti fraud initiatives jointly undertaken by Bank Negara Malaysia and the insurance and Takaful industries. Cooperation with law enforcement agencies and relevant trade associations was added improved during the year through regular dialogue, the sharing of information systems and exchange of experiences in struggle fraud. Such initiatives are ultimately aimed at putting in place effective mechanisms and the necessary infrastructure to support efforts to combat insurance fraud that result in losses to the industry, which if left unchecked, could unfavorably impact the premium rates borne by consumers.
According to the Bank Negara Malaysia, Dialogue with Insurers and Takaful Operators (2002) state that; highlighted the importance of responsible behavior by insurers and Takaful operators as well as their agents in their contact with customers. The dialogue also discussed on various initiatives to further strengthen the resilience of the industry, moving onward.
According to the Bank Negara Malaysia (2003),state that; insurance agents remain an important intermediary in the general insurance sector to offer personalized service for the convenience of policy owners as well as value-added
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services such as advice on insurance products and in providing assistance in claims handling. Customers have the option to use the services of agents to meet their insurance requirements and insurance products it also include financial advisory to their clients. Becoming a financial advisor is an important potential area that has wonderful growth opportunities.
Quoted from Datuk Chor Chee Heung, (2009) by the star mail state that; Many Malaysians will continue to attach with their motor insurance agents if the services rendered are outstanding. According to insurance department by the American Mutual of Illinois, Andrew M. Haley of Chicago and Joseph J. Haley (2010) on the Midwest news by the insurance journal. Specifically, the agents and company unsuccessful to inform the service members that they were purchasing life insurance and misrepresented the life insurance as a savings plan.
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CHAPTER 3 RESEARCH METHODOLOGY
CHAPTER 3: RESEARCH METHODOLOGY 3.1 INTRODUCTION Research methodology and design explains the way on how the researcher gathers data and information while conducting the research. It is an important stage in research process because this stage will give the researcher the ideas and assumptions to clarify the objectives, problem statements and research questions. In this research, the researcher will use one method of gathering data, which is primary data and Data can be obtained from the primary or secondary sources. Primary data refer to information obtained first hand by the researcher on the variable of interest for the specific purpose of the study. Secondary data refer to information gathered from sources already existing (Sekaran, 2007).
3.2
Research Design This research is conducted as a descriptive study. As stated by Sekaran (2007) it is undertaken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation. Descriptive study are undertaken in organization to learn about and describe the characteristic of a group of employees, as for example, the age, educational level, job status, and length of
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service working in the system. The goal of a descriptive study is to offer to the researcher a profile or to describe important aspects of the phenomena of interest from an individual, organizational, industry-oriented, or other perspective.
3.2.1
Population In this research, the researcher would like to determine the factors that will influence the customers level of satisfaction when in their course of employment as scope of the research is at Etiqa Insurance & Takaful Bandar Baru Klang Branch. Etiqa Insurance & Takaful is a suitable area to distribute the questionnaires and gather relevant data as this area mostly consist of customer which comes from different background. Thus it is easier for me to get as various point of view or opinion.
3.2.2 Time frame This research conducted from July 2010 until October 2010 which determined the period to conducted the research, during this period the researcher gather the information to be analyzed and interpret in the research in order to achieve the research objectives.
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3.3
Sampling According to Sekaran (2003), sampling been used for the purpose of selecting a sufficient number and elements from the population, so that a study of a sample and understanding for its properties and characteristic to the population elements. The way in which samples are taken will determine the rightness of the survey results and its generality. In this research, probability sampling will be used in order to collect data from the targeted population and sample size.
3.3.1
Sampling technique The sampling technique is going to be decided by the researcher is the non probability with the convenience sampling. Malholtra (2003) stated that convenience sampling is a non probability sampling technique that attempts to obtain a sample of convenient elements and he further explain that the sampling units are accessible, easy to measure and cooperative.
3.3.2
Sample size The number of elements to be included in this study is called as a sample size. The sample size will be calculating, the most appropriate sample must be determined as sample size increases. When the sample is too large they might be lead to inefficiencies and wastage of resources and when the sample be too small they might yield information or not valid for making inferences about the
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population. The researcher must create a balance between cost and the sample size that will enable them to make reasonably correct and exactly generalizations (Malhorta, 2004). The sampling size would be 50 customers or respondents from the population of 1000 customers, taken at the Etiqa Bandar Baru Klang Branch. The selected 50 customers is the sample for the research.
3.4
Data Collection Method In order to get all data needed to conducts the research need to used and utilized both primary data and secondary data to collect, gather and obtain information in terms of primary data by using the questionnaire. Despite the fact that will collect the primary data through questionnaire, it also needs to sort out other secondary information so that the statement and report are accurate at the time being. This research also been used various secondary data including searching information on the internet, journals and book. Previous journals and articles that had been done and published is one of the most important information that can used to construct the literature review and used the data as an evidence to support ideas, theories and finding in the study. Several reference text from the magazines, articles and newspaper which contains relevant information also used as a guide in completing this research.
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3.4.1
Primary data Apart from the individuals who provide information when interviewed, administered questionnaires, or observed. Primary data can be examined by four main primary sources of data such as individuals, focus group, panels and unobtrusive methods. By the way in this research uses of primary data is limited. This research is more focuses on the secondary data. i. Questionnaire
The researcher will provide a selection of question which will be distribute among the customer, later the questionnaire will be collected after the customer have done answering it, as a result, the researcher has obtain the information from the questionnaire. In this research, the questionnaire comprises of 7 sections. Section A for demographic factors, Section B-F for independent variable and Section G for dependent variable. Section A This section will focuses on demographic factors and the personal data of each respondent will highlight on the questionnaire. It be speared by categorized as gender, age, marital status, number of children, range of income, highest completed level of education, number of years became an
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customers. The nominal scale will be used in this questionnaire which provides the respondents to choose the answer. Section B In this section, the questions on quality of service provide by agents at Etiqa Insurance & Takaful will issue. The Likert scale is designed to examine how strongly subject agree and disagree with statements on a 5point scale. In this section the independent variable will be test for quality service such as tangible which identifies the equipment and comfortable places to given the information. Section C In section C, The Likert scale is designed to examine how strongly subject agree and disagree with statements on a 5-point scale. The questions on quality of service provide by agent at Etiqa Insurance & Takaful will issue on the independent variable will be test for quality service such as reliability which provide the services at the time agent promise to the customer. Section D In this section, the questions on quality service will be test for responsiveness which determines the willingness to help the customers.
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The Likert scale is designed to examine how strongly subject agree and disagree with statements on a 5-point scale. Section E The Likert scale is designed to examine how strongly subject agree and disagree with statements on a 5-point scale. Meanwhile, section E will be subjected to the questions on quality service on the assurance which determines the competence of the system and its security, credibility and courtesy. Section F The question in section F is designed to determine the ease of access, approachability and effort taken to understand customers requirements. This section also will use the Likert scale. Section G This section will be subjected to the level of customer satisfaction towards agent by the service provided to the customer and the Likert scale is used to answering the questionnaires. In this section the dependent variable will be test in this section.
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ii.
Secondary data
Secondary data are indispensable for most organizational research. Secondary data refer to information gathered by someone other than researcher conducting the current study. Data can be internal or external to the organizational and accessed through the Internet or published information. There are several sources of secondary data, including books and periodicals, government publications of economic indicators, census data. The advantage of seeking secondary data source is saving in time and costs of acquiring information. However, secondary data as the sole source of information has the drawback of become obsolete and not meeting the specific needs of particular situation or setting. Hence, it is important to refer to sources that offer current and up-to-date information. Internal sources The researcher gathers information from the Etiqa Insurance & Takaful Berhad through the information sources. External sources Media The sources collected in an article from newspaper, magazine, books and others.
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Journal/magazine/newspaper/textbooks This is the main source from market research and academic periodical. E.g.; journal, book, previous theses and past research papers.
Online electronic database from website From the internet, information can be taken from the articles or ejournal published by other people and it the information from the internet is very important to furnish this research. Beside that we also can gather the information through website Universiti Teknologi Mara (UiTM). 3.5 Data Analysis When the data are obtained by the questionnaire, they need been analyze, edit and access the data using the statistical computer programmed which is a SPSS. The data or information will be coded using a standard software packages for data analysis resulting from the research that been done. The SPSS software package version 14 will be used for the purpose of data analysis.
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3.5.1
Procedures of Data Analysis From the survey, 50 customers will be selected as respondent. The SPSS will be use in analyzing data from the question or raw data. In order to determined the relationship between the dependent variable and independent variable, and descriptive statistics analysis are use to identify the level of customer satisfaction and service quality towards agent.
3.5.2
Frequency Distribution The frequency will shows exact figures on the questionnaire that been given to the respondent on gender, age, marital status, number of children, range of income, highest completed level of education, number of years became an customer at Etiqa Insurance & Takaful.
3.5.3
Descriptive Statistic As mentioned earlier, the researcher is using the descriptive statistic to identify the level of customer satisfaction and also the rank of the service quality in identifying the most influential factors in the service quality by the agent at Etiqa Insurance & Takaful.
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CHAPTER 4 FINDING &ANAYLSIS
CHAPTER 4: FINDINGS AND ANALYSIS
4.1
INTRODUCTION This fourth chapter will focus on the findings of the research and represents the finding and analysis on a study of customer satisfaction towards agents at Etiqa Bandar Baru Klang. All the findings are based on the answer given by the respondents through questionnaire. The respondents are customer of at Etiqa Bandar Baru Klang. The information obtained will help to achieve of the objective on the research conducted.
4.2
REALIBILITY
Reliability Statistics Cronbach's Alpha .954 N of Items 20
Table 4.1: Realibility Statistic Cronbachs alpha is a reliability coefficient that indicates how well the items in a set are positively correlated to one another. An Uma Sekaran (2003) state that reliabilities less than 0.60 are considered to be poor, those in range 0.70 are
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acceptable and those are over 0.80 is good. According to the above results, it clearly indicates that Cronbachs alpha for the 20-item is 0.954. Thus, internally consistency reliability of the measures used in this study can be considered acceptable and good. 4.3 RESPONDENTS` PROFILE ANALYSIS 4.3.1 Gender
Figure 4.2: Frequency of Respondent by Gender Figure 4.2 shows the distribution of respondents based on gender. Table 2 found that the highest is female which the percentages are 62% for 31 respondents.
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4.3.2 Race
Figure 4.3: Frequency of Respondent by Race
According to the Figure 4.3, the majority of the respondents are Malay (82%), followed by Chinese (12%) and Indian (6%).
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4.3.3 Age
AGE
Frequency Valid 20-30 YEARS OLD 31-40 YEARS OLD 41-50 YEARS OLD 50 ABOVE Total 13 23 11 3 50 Percent 26 46 22 6 100
Figure 4.4: Frequency of Respondent by Age Figure 4.4 show the frequency of respondent by age out of 50 respondents, 23 respondents or 46% are aged 31-40 years old. This range of age represents the majority of respondents which participated in this research. The second highest is respondents aged under 20-30 years old which is 26% or 13 respondents and the third highest is repondents aged between 41-50 years old which is 11 respondents or 22% of the repondents. The lowest is respondent aged under 50 above which is 3 respondents or 6% of the total number of respondents.
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4.3.4 Income
Figure 4.5: Frequency of Respondent by Income From Figure 4.5 , the highest percentage of income level are 52% (26) of the respondents earned from RM1000 to RM3000, while the lowest percentages of income level are 4% (2) of the respondents earned from RM5001 and above. 4.3.5 Status
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Figure 4.6: Frequency of Respondent by Status Figure 4.6 shows the distribution of respondents based on marital status. The highest frequencies are married, 33 respondents while the lowest frequencies are single, shows 16 respondents and widowed 1 respondent.
4.3.6 Level of Education
EDUCATION
Valid SPM/STPM MATRICULATION/FOUNDATION /CERTIFICATE DIPLOMA BACHELOR/ DEGREE MASTER & ABOVE Total Frequency 16 3 18 11 2 50 Percent 32 6 36 22 4 100
Table 4.2: Frequency of Respondent by Education According to the table 4.2, it was found that the highest percentages are 36% (18) of the respondents possessed a Diploma, while 4% (2) of the respondents possessed a Master are the lowest.
4.3.7 Years becomes a Customer
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Figure 4.7: Frequency of Respondent by became a Customer Figure 4.7 showed the frequency distribution of number becames a customer each repondents at Etiqa Bandar Baru Klang. From the table above, we can see the repondents be a customer in Etiqa for more than 4 years is the highest frequency.This group consists 26 respondents or 52% out of total number of 50 repondents and the second highest is respondents less than 3 years which is 32% or 16 repondents. The lowest with 2 repondents and 4% of the total respondents are respondents that became as a customer more than 10 years.
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4.4
Descriptive Analysis
NO 1 2 3 MEAN 1.00-2.33 2.34-3.67 3.67-5.00 LEVEL LOW MEDIUM HIGH
Table 4.3: Rule of Thumb 4.4.1 To determine the level of customer satisfaction towards agent at Etiqa
Bandar Baru Klang.

Descriptive Statistics Minimum Maximum 1.00 5.00
N CUSTOMER SATISFACTION Valid N (listwise) 50 50
Mean 3.4800
Std. Deviation .81416
Table 4.4: Level of customer satisfaction towards agent at Etiqa Bandar Baru Klang. Table 4.4 show the data descriptive statistic for overall customer satisfaction. Generally the customer satisfaction towards agent at Etiqa in the medium level with the value mean 3.4800.
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4.5
Descriptive Statistics 4.5.1 To determine the level of service quality towards agent at Etiqa Bandar Baru Klang
Descriptive Statistics Tangibles Reliability Responsiveness Assurance Empathy Mean 3.12 3.375 3.555 3.4867 3.34 Rank 5 3 1 2 4
Table 4.5 : Mean & Std. Deviation for Dependent Variable.
Figure 4.8: Mean of Five Dimension for Customer Satisfaction
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Figure 4.6.1 show the mean of Five Dimension for Customer Satisfaction with the highest mean is 3.55 which is Responsiveness, followed by Assurance with mean value of 3.48, Reliability with mean 3.37, Empathy with the mean value 3.34 and the lowest mean with mean value of 3.12. The highest factor that leads to the customer satisfaction is Responsiveness Dimension. Dimension,Assurance Dimension and Reliability
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4.7
Regression 4.7.1 To determine the most factor that influence the customer satisfaction
Coefficientsa Unstandardized Standardized t Coefficients Coefficients B 1 (Constant) 0.001 Std. Error 0.351 0.123 0.127 0.148 0.121 0.136 0.301 0.12 0.147 0.113 0.115 0.297 Beta 0.004 0.997 0.027 0.384 0.164 0.197 0.239 0.26 0.796 3.053 0.004 1.136 0.262 1.518 0.136 1.861 0.069 0.157 0.876 3.304 1.139 1.53 2.352 0.377 0.002 0.261 0.133 0.023 0.708
Model
Sig.
Tangible 0.032 Reliability 0.388 Responsiveness 0.168 Assurance Empathy (Constant) Reliability Responsiveness Assurance Empathy (Constant) 0.183 0.253 0.047 0.397 0.167 0.173 0.271 0.112
0.394 0.163 0.186 0.256
Reliability 0.471 0.102 Assurance 0.247 0.093 Empathy 0.278 0.116 a. Dependent Variable: mean_G1
0.467 0.266 0.263
4.624 0 2.659 0.011 2.407 0.02
Table 4.6: Coefficients (a) Factor That Influence the Customer Satisfaction
From the table 4.6, it is to find which factor that most influence customer satisfaction based on service quality. Customer satisfaction is a dependent variable meanwhile tangibles, reliability, responsiveness, assurance and empathy which are
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independent variable. Based on table 10, there are three Model which are Model 1, Model 2 and model 3, in model 1 show all the independent variable but in Model 2 and Model 3, tangible and responsiveness have been rejected. Model 3 show three independent variable not been rejected which are realibility, assurance and empathy. It show that this realibility variable is significance at level 0, assurance at the level 0.011 and empathy 0.02 meawnwhile there are significance because the level of significance is below than 0.05.
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CHAPTER 5 CONCLUSION & RECOMMENDATION
CHAPTER 5: Conclusion And Recommendations 5.1 Introduction This chapter may represent the recommendation and conclusion for a study on customer satisfaction towards agents in Etiqa Insurance & Takaful. The researcher has used SPSS version 16.0 to analyze the data and to find the result on the on customer satisfaction towards agents in Etiqa Insurance & Takaful as show in the chapter four. This conclusion section becomes the focus point to propose recommendation for improvement on customer satisfaction towards agent at Etiqa Bandar Baru Klang.
5.2
Conclusion This chapter present the conclusion of the study based on research objective and answer the objectives and will follow by the recommendations for future research and improve the service. From this research, there are 3 objectives that need to be achieved. The first objective was to identify the level of customer satisfaction toward service provided by agent at Etiqa. The second objective is to identify the level of service quality provided by agent at Etiqa and to identify the most factors that influence the customer satisfaction towards services provided by Etiqa. Nowadays, the successful of the organization or insurance company not depend on the sales, production, profit or members of the company but its depending on
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the customer satisfaction. Customer is an asset of company so the top management, staff and especially agent should take initiative to know more about their customer needs and wants. This will ensure the customer loyalty with the company and feel more appreciated and important in the company. As conclusion, this research found that customer is satisfied with the services provided by agent and most of the respondent are neither satisfied with the agent of Etiqa but the service still need improvement to get the highly satisfaction of customer. By determine the level of customer satisfaction it would make the company improve their service and can emphasize more on the attributes that contributes to high customer satisfaction. According to the research objective 1, the result of this research shows that the levels of customer satisfaction are in the medium level by using the descriptive analysis and based by the rule of thumb. It means that the first objectives was answered where the level of customer satisfaction are in the medium level which should be improve the service of agent in the Etiqa so that their can achieve high level of the customer satisfaction. The researcher suggested that Etiqa also can provide training to enrich the knowledge of the agent so that they will have enough knowledge and good service compared other insurance companies. Second research objective 2, based on table 9 in the chapter 4 show the level of service quality towards customer satisfaction is Responsiveness
Dimension,Assurance Dimension and Reliability Dimension. The performance

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factor includes tangible, reliability, responsiveness, assurance and empathy which in the medium level and the factor of tangible and empathy need to be improve. It means Etiqa customer is satisfied with the service quality of the agent in the Etiqa. Thus, customers are expected to receive the good services and modern looking equipment. Third research objectives, is to identify the most factors that influence the customer satisfaction towards services provided by Etiqa which is the realibility, assurance and empathy. Based on table 10 the most factor are realibility, assurance and empathy that not been rejected. Its means that the factor of the tangible and responsiveness need to be improve. It means agent of Etiqa is not providing good service in the independent of responsiveness and tangible whichmean Etiqa have problem in handling the customers and providing physical facilities.
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5.3
Recommendations
Based on the results, we can conclude that although most of the respondents are satisfied with their agent Etiqa Insurance & Takaful provide you with the best facility, services. The organization or agents need to be aware that the satisfaction of the customer always changing due to their level of expectations. For this reason, some recommendations have been highlighted for agents and organizations to maintain the customer satisfaction and also to improve the service of the agent at Etiqa Bandar Baru Klang.
5.3.1
Communicate with customer The finding on table 9 shows that empathy dimension mean value is 3.34 which are the second lowest than others. It means the agent of Etiqa has a problem communicate with the customer, therefore their need to improve the communication skills. Their need to communicate more with their customer because this will help agent at Etiqa understand the customer specific needs of the product and can help them to choose the suitable product that suit with their needs. In the same time they can build long term relationship with customer and will enhance the Etiqa image and reputation.
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5.3.2
Improve the physical facilities and tools or equipment The tangible dimension mean value is the lowest than other show on table 9. It means that the agent of Etiqa and company need to improve their physical facilities which make the agency has a modern looking equipment and comfortable place to give the information. The researcher also recommends providing the pamphlet or brochures to the customer and more convenience environment for further information.
5.3.3
Overcome the weakness Based on the research, tangibles and responsiveness are fewer factors that influence customer satisfaction, so that the agents at Etiqa should overcome the weakness and take action because the level of customer satisfaction will increase if the overcome it. To overcome the responsiveness weakness, should improve their performance with give intensive training because it will make agent at Etiqa become more effective and efficient. In the same time Etiqa can gain customer loyalty and also good perception to the Etiqa. By that, Etiqa should always give training to the agents about customer service by giving the information on how to make a better way of friendly with customer and can facing the complaint or problem from the customer in efficiently. Etiqa should also make sure the agent have improved their knowledge and good interaction skill by giving them training. Beside that Etiqa agent
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need should improve their environment facilities because this is important elements that attract Etiqa customer more comfortable.
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LaBarbera, P. A. & Mazursky, D., 1983, A Longitudinal Assessment of Consumer Satisfaction, Dissatisfaction: the Dynamic Aspect of Cognitive Process, Journal of Lehtinen, J.R. and Lehtinen, O. (1982), Service quality: a study of quality dimensions, unpublished working paper, Service Management Institute, Helsinki. Lewis, R.C. and Booms, B.H. (1983), "The marketing aspects of service quality", in Berry, L., Shostack, G. and Upah, G. (Eds), Emerging Perspectives on Services Marketing , American Marketing Association, Chicago, IL, pp. 99-107. Marketing Research, Vol. 20, November, pp. 393-404. Mathew Joseph, George Stone, Krista Anderson, (2003), Journal of Small Business and Enterprise Development Vol. 10, No. 1, pp. 81-92. Mohd Rizaimy Shaharudin, Khaizir Muzani Md. Yusof, Shamsul Jamel Elias & Suhardi Wan Mansor( 2009) Factors Affecting Customer Satisfaction in After-Sales Service of Malaysian Electronic Business Market ,Canadian Social Services, Vol.5 ,No.6 .10-18. Moon-Koo Kima, Myeong-Cheol Parkb, Dong-Heon Jeonga, (2004),The effects of customer satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services, Telecommunications Policy 28, page 145159. Moss, Hollye K. (2007) Improving Service Quality with the Theory of Constraints , Journal of Academy of Business and Economics. Murthy D. N. P., et. al. (2004). Product warranty logistics: Issues and challenges. European Journal of Operational Research. Volume 156, Issue 1, 1 July 2004, Pages 110-126.
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Parasuraman, A., Zeithaml, V. and Berry, L., "SERVQUAL: A MultipleItem Scale for Measuring Consumer Perceptions of Service Quality", Journal of Retailing, Vol.64 (1), 1988, 1240. Qualitative Market Research: An International Journal, 4 (3), pp. 160-168. Service Quality, Customer Satisfaction, and Store Loyalty, International Journal of Retail & Distribution Management, 28 (2), pp. 73-82. Sivadass, E. & Baker-Prewitt, J. L., 2000, An Examination of the Relationship Between Spreng, R.A. and Singh, A.K. (1993), An empirical assessment of the SERVQUAL scale and the relationship between service quality and satisfaction, in Cravens, D.W. and Dickson, P. (Eds), Proceedings of the 1993 American Marketing Association, American Marketing Association, Chicago, IL, pp. 1-6. Verhoef, Peter C. (2003), Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development, Journal of Marketing, 67 (October), 3045. Warren J S Staples & Prof. John F Dalrymple (2008) Assessing Call Centre Quality using the SERVQUAL Model, Centre for Management Quality Research, RMIT University, Australia. Zeithamal, V. A., & Bitner, M. J. (1996). Services marketing. New York: McGraw-Hill. Zeithaml, V.A, Berry, L.L. and Parasuraman, A. (1996), The behavioral consequences of service quality. Journal of Marketing, Vol. 60, pp. 31-46.
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Website Annual Report Bank Negara 2009 (www.bnm.gov.my) Dawn Rosenberg McKay, Insurance agent: Career Information (http://careerplanning.about.com/cs/occupations/p/insurance_sales.htm) February (2007) Improving Quality and Access to Services and supports in Vulnerable Neighborhoods (www.cssp.org) John J. White, The Importance of Customer Satisfaction - Why You Should Focus and Train Your Employees, (http://ezinearticles.com/?The-Importance-of-CustomerSatisfaction---Why-You-Should-Focus-and-Train-Your-Employees&id) Life Insurance Association Malaysia, LIAM (www.liam.org.my) Mark Smith, (http://www.allbusiness.com) PIAM Annual Report 2009(www.piam.org.my) Wikipedia; the Free Encyclopedia; Retrieved on August 7, 2008 ;( http://en.wikipedia.org)
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APPENDIX I
Dear Sir/ Madam/ Miss:
As part of the course requirement for BBA from University Technology Mara (UiTM), I am conducting a research regarding: CUSTOMER SATISFACTION TOWARDS AGENT AT ETIQA BANDAR BARU KLANG
All the information that has been collected will strictly confidential and will be used for academic purpose only. The precision of this study would depend on the response and feed back from the respondents.
The questionnaire consists of seven sections. Please complete all the section given.
Thank you very much for your time and cooperation. Sincerely,
.. (Norjan Binti Saleem) Bachelor of Business Administration (Hons) Insurance UiTM kampus Bandaraya Melaka
SECTION A (DEMOGRAPHIC) PLEASE TICK () FOR THE ANSWER. 1) Gender Male 2) Race Malay Chinese 3) Age 20 30 years old 31- 40 years old 41 50 years old 50 above 4) Income per month Less than RM1000 RM1000 RM3000 RM3001 RM5000 RM5001 above Indian Other __________ Female
5) Marital Status Single Married Widowed
6) Your level of education SPM/ STPM Matriculation/Foundation/Certificate Diploma Bachelor/Degree Master & above
8) Number of years becomes a customer 0 3years 4 6years
7 10years
10 years above
SECTION B: (TANGIBLES) PLEASE CIRCLE () FOR THE ANSWER. 1 Strongly disagree 2 Disagree 3 Moderate 4 Agree 5 Strongly agree Strongly disagree 1 Disagree 2 Moderate 3 Agree 4 Strongly agree 5
The agency has modern looking equipment and comfortable place to give the information. The agent provides pamphlet or brochures to the customer for the further information. Materials provided such as pamphlet, statements, brochures are associated with the service provided.
1 1
2 2
3 3
4 4
5 5
SECTION C: (RELIABILITY) PLEASE CIRCLE () FOR THE ANSWER. 1 Strongly disagree 2 Disagree 3 Moderate 4 Agree 5 Strongly agree Strongly disagree 1 1 1 1 Disagre e 2 2 2 2 Moderate 3 3 3 3 Agree 4 4 4 4 Strongly agree 5 5 5 5
When the agent promise to do something by a certain time they will do so. When a customer has a problem, the agent will show a sincere interest in solving it. Agent will provide their services at the time they promise to do so. Have an incentive to help in order to solve your problem.
SECTION D: (RESPONSIVENESS) PLEASE CIRCLE () FOR THE ANSWER. 1 Strongly disagree 2 Disagree 3 Moderate 4 Agree 5 Strongly agree Strongly disagree 1 1 1 1 Disagree 2 2 2 2 Moderate 3 3 3 3 Agree 4 4 4 4 Strongly agree 5 5 5 5
The personnel in the agency/branch and agent tell you exactly when services will be performed. Agents give promptly service to your requirement. Agents are always willing to help you. The whole procedure will be smoothly if you provide all the information that insurer requires.
SECTION E: (ASSURANCE) PLEASE CIRCLE () FOR THE ANSWER. 1 Strongly disagree 2 Disagree 3 Moderate 4 Agree 5 Strongly agree Strongly disagree 1 1 1 Disagree 2 2 2 Moderate 3 3 3 Agree 4 4 4 Strongly agree 5 5 5
You feel safe and comfortable in your dealings with the agent. Agents have the knowledge to answer your questions. Agents are consistently courteous when dealing with you.
SECTION F: (EMPATHY) PLEASE CIRCLE () FOR THE ANSWER. 1 Strongly disagree 2 Disagree 3 Moderate 4 Agree 5 Strongly agree Strongly disagree 1 1 1 Disagree 2 2 2 Moderate 3 3 3 Agree 4 4 4 Strongly agree 5 5 5
Agent has understood your specific needs of the product. Help you to choose insurance policies that suit their needs. Many efforts taken by the agent to understand the customers requirements.
SECTION G: (CUSTOMER SATISFACTION) PLEASE CIRCLE () FOR THE ANSWER. 1 Strongly dissatisfied 2 Dissatisfied 3 Neither satisfied nor dissatisfied 4 Satisfied 5 Strongly satisfied Strongly disagree 1 1 1 Disagree 2 2 2 Moderate 3 3 3 Agree 4 4 4 Strongly agree 5 5 5
How you satisfied were you with the quality of service by the agent? Are you satisfied with your current agent at Etiqa Insurance & Takaful Agent Etiqa Insurance & Takaful provide you with the best facility, services and remuneration as compared to other agent companies.
Thank you for your support and cooperation
APPENDIX II
Reliability Statistics
Cronbach's Alpha .954 N of Items 20
Frequency Table
GENDER Cumulative Percent 38.0 100.0
Frequency Valid MALE FEMALE Total 19 31 50
Percent 38.0 62.0 100.0
Valid Percent 38.0 62.0 100.0
RACE Cumulative Percent 82.0 88.0 100.0
Frequency Valid MALAY INDIAN CHINESE Total 41 3 6 50
Percent 82.0 6.0 12.0 100.0
Valid Percent 82.0 6.0 12.0 100.0
AGE Cumulative Percent 26.0 72.0 94.0 100.0
Frequency Valid 20-30 YEARS OLD 31-40 YEARS OLD 41-50 YEARS OLD 50 ABOVE Total 13 23 11 3 50
Percent 26.0 46.0 22.0 6.0 100.0
Valid Percent 26.0 46.0 22.0 6.0 100.0
INCOME Cumulative Percent 8.0 60.0 96.0 100.0
Frequency Valid LESS THAN RM1000 RM1000-RM3000 RM3001-RM5000 RM5001 ABOVE Total 4 26 18 2 50
Percent 8.0 52.0 36.0 4.0 100.0
Valid Percent 8.0 52.0 36.0 4.0 100.0
STATUS Cumulative Percent 32.0 98.0 100.0
Frequency Valid SINGLE MARRIED WIDOWED Total 16 33 1 50
Percent 32.0 66.0 2.0 100.0
Valid Percent 32.0 66.0 2.0 100.0
EDUCATION Cumulative Percent 32.0 38.0 74.0 96.0 100.0
Frequency Valid SPM/STPM MATRICULATION/FOUNDA TION/CERTIFICATE DIPLOMA BACHELOR/ DEGREE MASTER & ABOVE Total 16 3 18 11 2 50
Percent 32.0 6.0 36.0 22.0 4.0 100.0
Valid Percent 32.0 6.0 36.0 22.0 4.0 100.0
YEARS BECOMES CUSTOMER Cumulative Percent 32.0 84.0 96.0 100.0
Frequency Valid 0-3 YEARS 4-6 YEARS 7-10 YEARS 10 YEARS Total 16 26 6 2 50
Percent 32.0 52.0 12.0 4.0 100.0
Valid Percent 32.0 52.0 12.0 4.0 100.0
Descriptive Statistics N CUSTOMER SATISFACTION Valid N (listwise) 50 50 Minimum 1.00 Maximum 5.00 Mean 3.4800 Std. Deviation .81416
Descriptive Statistics N Tangible Reliability Responsiveness Assurance Empathy Valid N (listwise) 50 50 50 50 50 50 Minimum 2.00 1.25 2.25 2.00 2.00 Maximum 5.00 5.00 5.00 5.00 5.00 Mean 3.1200 3.3750 3.5550 3.4867 3.3400 Std. Deviation .60519 .71651 .70582 .77726 .68177
Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Tangible Reliability Responsiveness Assurance Empathy 2 (Constant) Reliability Responsiveness Assurance Empathy 3 (Constant) Reliability Assurance Empathy B .001 .032 .388 .168 .183 .253 .047 .397 .167 .173 .271 .112 .471 .247 .278 Std. Error .351 .123 .127 .148 .121 .136 .301 .120 .147 .113 .115 .297 .102 .093 .116 .467 .266 .263 .394 .163 .186 .256 .027 .384 .164 .197 .239 Coefficients Beta t .004 .260 3.053 1.136 1.518 1.861 .157 3.304 1.139 1.530 2.352 .377 4.624 2.659 2.407 Sig. .997 .796 .004 .262 .136 .069 .876 .002 .261 .133 .023 .708 .000 .011 .020
a. Dependent Variable: Customer satisfaction

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CUSTOMER SATISFACTION TOWARD AGENTS AT ETIQA BANDAR BARU KLANG

NORJAN BINTI SALEEM 2008525101

CUSTOMER SATISFACTION TOWARD AGENTS AT ETIQA BANDAR BARU KLANG

NORJAN BINTI SALEEM 2008525101

FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA KAMPUS BANDARAYA MELAKA

DECLARATION OF ORIGINAL WORK"

IM, NORJAN BINTI SALEEM, MATRIX NO. 2008525101

LETTER OF SUBMISSION November 2010

NORJAN BINTI SALEEM 2008525101 Bachelor of Business Administration (Hons) Insurance

5.1 Introduction 5.2 Conclusion 5.3 Recommendation

Table 1.2 Table 1.3 Table 1.4

Table 4.1 Table 4.2 Table 4.3 Table 4.4

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

Insurance Life insurance General insurance

Numbers of registered agent 80,078 35,930

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

Table 1.3: Numbers of agent by country in Malaysia

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

Etiqa Insurance & Takaful 6

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

OFFENCE Misleading & False Information

ROP/ROC Involve with other Takaful

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

1.8.4 Lack of Experience

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

Figure 1.1: SERVQUAL model for Theoretical Framework

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

CHAPTER 2 LITERATURE REVIEW

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

FACTORS THAT AFFECT CUSTOMER SATISFACTION

Figure 2.1: The Kano Model of Customer (Consumer) Satisfaction.

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

IMPORTANCE OF CUSTOMER SATISFACTION

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]

[Customer Satisfaction towards agent at Etiqa Insurance & Takaful]