Modelling the service antecedents of favourable and unfavourable behaviour intentions in life insurance services in India : An SEM study

Purpose – The purpose of this paper is to identify and discuss the key conceptual and empirical inter‐relationships between service encounter variables of perceived agent service quality, overall customer satisfaction and perceived value and their relationships with behavioural outcomes of repurchase, recommendation and complaint intentions in the life insurance services in India. Design/methodology/approach – A total of 258 valid responses were generated from existing customers of life insurance services on the selected variables. The relationships were tested by structural equation modeling using AMOS version 4.0. The initial hypothesized model was rejected and a model was modified till acceptable fit was achieved. Findings – The results provide empirical support for the comprehensive nature of direct and indirect effects of service quality, value perceptions and overall satisfaction on future behavioural intentions (BI). The study identifies the key agent service quality attributes of product knowledge, empathy, reliability and trust as important antecedents of favourable behavioural outcomes. Agent service quality, satisfaction and value perceptions have significant affect on recommendation intentions. Originality/value – This is the first study using multivariate and composite model of inter relationship of service encounter constructs and their affect on both favourable and unfavourable BI.