The Effect of Satisfaction and Positive Word of Mouth on Customer Loyalty in the Life Insurance: A Study for Hanoi

Customer loyalty has been recognized as an important source of sustainable competitive advantage in customer retention, acquisition, and long-term customer relationships. In the insurance sector, Srivastava and Rai (2013) [35] argues that customer retention is very important for life insurance companies as a long-term association with customers leads to instances of cross-selling and the intention of more positive recommendations. Financial services in general and insurance services in particular are intangible and highly competitive due to being easily imitated, so loyalty becomes even more important (Alrubaiee, 2012) [2]. Accordingly, this study aims to examine the relationship between customer satisfaction and loyalty and positive word of mouth in the insurance sector to provide policy suggestions for life insurance businesses' longevity in the current context.