Trust In Insurance Company

By ANTECEDENTS, CONSEQUENCES AND MEDIATING ROLES OF TRUST IN RELATIONSHIPS BETWEEN CUSTOMERS AND INSURANCE COMPANIES IN THAILAND Dr.Terdsak Rojsurakitti The Institute of International Studies Ramkhamhaeng University

B uilding and maintaining enduring relationships with customers of service industries is increasingly important in the field of relationship marketing. M odels of business relationships have recently used the central concept of trust. Previous studies were limited to the nature and antecedents of trust and overlooked the importance of including the operational consequences of trust useful to managers. O ur perspective takes into account the interest of managers of acting upon antecedents of trust to influence sales performance and to reduce conflicts in business relationships. T he aim of this dissertation is to demonstrate the antecedents of trust, the consequences and mediating roles of trust in relationships between customer and insurance company in Thailand. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 1 Introduction

This study dealt with the role of trust on the relationships marketing between insurance companies and customers. Our prime objective was to study the role of trust as a mediating construct between a number of antecedents and consequences. The specific research objectives 1.To study the relationship between the specific investments and the customer’s trust in the insurance company. 2.To study the relationship between the information sharing and the customer’s trust in the insurance company. 3.To study the relationship between the expertise of the salesperson and the customer’s trust in the salesperson. 4.To study the relationship between the power of the salesperson and the customer’s trust in the salesperson. 5.To study the relationship between the frequency of formal contacts and the customer’s trust in the salesperson. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 1 Purpose of study

6.To study the relationship between the frequency of informal contacts and the customer’s trust in the salesperson. 7.To study the relationship between the customers’s trust in the salesperson and the customer’s trust in the insurance company. 8.To study the relationship between the customers’s trust in the insurance company and the performance of the adopted product. 9.To study the relationship between the customers’s trust in the insurance company and the level of conflicts between the customers and the insurance company. 10.To study the effect of the mediating roles of salesperson’s trust in the relationship between the salesperson antecedent constructs and the customer’s trust in the insurance company. 11.To study the effect of the mediating roles of insurance company’s trust in the relationship between the insurance company antecedent and consequence constructs. 12.To study the effect of the mediating roles of insurance company’s trust in the relationship between the salesperson and consequence constructs. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 1 Purpose of study

C onceptual f ramework of T rust Conceptual framework of Trust

B to B sales Factory sales Duty Free TV sales Salesperson expertise The Institute of International Studies Ramkhamhaeng University Salesperson power Trust in the salesperson Formal contacts Informal contacts Trust in the company Performance Conflicts between customer&company Specific investments Information sharing CHAPTER 1 Conceptual Framework

PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University O ur model looked in turn at, the effects of specific constructs on trust and at the consequences of trust on performance and conflicts. Our model was tested using empirical data on business relationships between insurance companies and customers of insurance industry. The understanding in the relationships marketing help marketing managers to retain and strengthen relationships between insurance companies and their existing customers more closely to them. CHAPTER 1 Significance for study

Literature Review PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 2 Literature Review

Morgan and Hunt (1994) defines Trust as the conviction of the reliability and the integrity of a relationship partner. Doney and Cannon (1997) “We define trust as the perceived credibility and benevolence of a target of trust.” Berry (1996) “the inherent nature of services, positions trust as perhaps the single most powerful relationship marketing tool available to a company”. Sirdeshmukh, Singh, and Sabol (2002) noted, the trust of relationship exchange can be classified into faith in the firm and in the salesperson Schurr and Ozanne (1985) Company Trust “The belief that a party’s word or promise is reliable and that a party will fulfill his or her obligations in an exchange relationship.” Doney and Cannon (1997) Salesperson trust defined as the consumers' degree of reliance on salesperson that influences customers' purchase decisions, and trust toward salespeople comes from personal characteristics and relational conditions. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 2 Literature Review

The antecedents of trust Specific investments in production manufacturing equipment by suppliers to meet the demand of buyers have been shown by Ganesan (1994) to increase confidence in the manufacturer. Jasper and Oullette, 1994; Montoya-Weiss et al., 2003; Roselius, 1971 found that relevant information is likely to enhance confidence in their decision making. The degree of expertise of the salesperson is related to his or her knowledge about the allowable conditions of the sales transactions. From the buyer’s point of view, this expertise is related to the salesperson’s credibility to deliver promises and to be diligent and professional. (Doney and Cannon, 1997; Siguaw, Simpson and Baker, 1998). PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 2 Literature Review

With more authority within his or her organization, the salesperson will more easily deliver his or her promises. A more powerful salesperson is likely to be perceived to be more credible by the buyer. (Doney and Cannon, 1997). Doney and Cannon (1997), The more frequent the contacts between a buyer and a salesperson, the more the buyer will know the salesperson and the more he or she will be able to predict the salesperson’s behavior and therefore develop more trust in the salesperson. Through a process of development of expectancies, formal contacts as well as informal contacts (social meetings outside the office) should have a positive effect on trust of the buyer in the salesperson (Doney and Cannon, 1997). PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 2 Literature Review

The consequences of trust Performance measures are of interest to managers who would like to know the effects of their decisions on the economic performance of their company. Further, the high frequency of new product offers, justifies the study of the impact of trust on this measure of success. The degree of trust between suppliers and buyers is related to the level or degree of conflict of interests or lack of coordination (Anderson and Narus, 1990). PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 2 Literature Review

The mediation effects of trust Aulak, Kotabe and Sahay (1996) have empirically found a mediating role of trust on the relationship between specific investments and performance. The mediation effects of trust in the salesperson and in the company The origin of trust lies among individuals and since individuals conduct inter-organization relationships, trust may be extended to organizations (Hosmer, 1995). Doney and Cannon (1997) the salesperson is a central interface between the buyer and the supplier. The first mission of the salesperson is to persuade potential buyers to buy the products of his or her company. However, when businesses start to develop a partnership, the salesperson’s role is modified to facilitate the development of trust (Swan and Nolan, 1985). PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 2 Literature Review

The mediation effects of trust in the salesperson and in the company When a supplier is little known to the buyer, the behavior of the salesperson serves as an indication of the values and ways of doing business of the supplier. Thus, trust in the salesperson is a condition for the buyer to develop trust in the supplier (Chow and Holden, 1997). Trust is transferred from a well-known group or individual to a related less well-known group or individual (Strub and Priest, 1976). The process of transfer of trust or distrust may occur both ways trust and distrust in the salesperson may be transferred to or from the supplier. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 2 Literature Review

POPULATION SAMPLE ANALYSIS S M L The Institute of International Studies Ramkhamhaeng University 20 40 120 10 34 24 7 12 10 2 4 10 3 4 2 6 5 3 20 40 120 10 34 24 7 12 10 CHAPTER 3 Methodology

1.Are there a positive relationship between the specific investments and the customer’s trust in the insurance company? 2.Are there a positive relationship between the information sharing and the customer’s trust in the insurance company? 3.Are there a positive relationship between the expertise of the salesperson and the customer’s trust in the salesperson? 4.Are there a positive relationship between the power of the salesperson and the customer’s trust in the salesperson? 5.Are there a positive relationship between the frequency of formal contacts and the customer’s trust in the salesperson? 6.Are there a positive relationship between the frequency of informal contacts and the customer’s trust in the salesperson? PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 3 Research Questions

7.Are there a positive relationship between the customer’s trust in the salesperson and the customer’s trust in the insurance company? 8.Are there a positive relationship between the customer’s trust in the insurance company and the performance of the adopted product? 9.Are there a negative relationship between the customer’s trust in the insurance company and the level of conflicts between the customers and the insurance company? 10.Are there positive effects of the mediating roles of salesperson’s trust in the relationship between the salesperson antecedent constructs and the customer’s trust in the insurance company? 11.Are there positive effects of the mediating roles of insurance company’s trust in the relationship between the insurance company antecedent and consequence constructs? 12.Are there positive effects of the mediating roles of insurance company’s trust in the relationship between the salesperson and consequence constructs? PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 3 Research Questions

PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University NH1: There are a negative relationship between the specific investments and the customer’s trust in the insurance company. RH1: There are a positive relationship between the specific investments and the customer’s trust in the insurance company. NH2: There are a negative relationship between the information sharing and the customer’s trust in the insurance company. RH2: There are a positive relationship between the information sharing and the customer’s trust in the insurance company. NH3: There are a negative relationship between the expertise of the salesperson and the customer’s trust in the salesperson. RH3: There are a positive relationship between the expertise of the salesperson and the customer’s trust in the salesperson. CHAPTER 3 Hypotheses

PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University NH4: There are a negative relationship between the power of the salesperson and the customer’s trust in the salesperson. RH4: There are a positive relationship between the power of the salesperson and the customer’s trust in the salesperson. NH5: There are a negative relationship between the frequency of formal contacts and the customer’s trust in the salesperson. RH5: There are a positive relationship between the frequency of formal contacts and the customer’s trust in the salesperson. NH6: There are a negative relationship between the informal contacts and the customer’s trust in the salesperson. RH6: There are a positive relationship between the informal contacts and the customer’s trust in the salesperson. CHAPTER 3 Hypotheses

PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University NH7: There are a negative relationship between the customer’s trust in the salesperson and the customer’s trust in the insurance company. RH7: There are a positive relationship between the customer’s trust in the salesperson and the customer’s trust in the insurance company. NH8: There are a negative relationship between the customer’s trust in the insurance company and the performance of the adopted product. RH8: There are a positive relationship between the customer’s trust in the insurance company and the performance of the adopted product. NH9: There are a positive relationship between the customer’s trust in the insurance company and the level of conflicts between the customer and the insurance company. RH9: There are a negative relationship between the customer’s trust in the insurance company and the level of conflicts between the customer and the insurance company. CHAPTER 3 Hypotheses

PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University NH10: There are a negative effect of the mediating roles of salesperson’s trust in the relationship between the salesperson antecedent constructs and the customer’s trust in the insurance company. RH10: There are a positive effect of the mediating roles of salesperson’s trust in the relationship between the salesperson antecedent constructs and the customer’s trust in the insurance company. NH11: There are negative effects of the mediating roles of insurance company’s trust in the relationship between the insurance company antecedent and consequence constructs RH11: There are positive effects of the mediating roles of insurance company’s trust in the relationship between the insurance company antecedent and consequence constructs. NH12: There are negative effects of the mediating roles of insurance company’s trust in the relationship between the salesperson and consequence constructs. RH12: There are positive effects of the mediating roles of insurance company’s trust in the relationship between the salesperson and consequence constructs. CHAPTER 3 Hypotheses

B to B sales Factory sales Duty Free TV sales Salesperson expertise The Institute of International Studies Ramkhamhaeng University Salesperson power Trust in the salesperson Formal contacts Informal contacts Trust in the company Performance Conflicts between customer &company H1+ H2+ H3+ H4+ H5+ H6+ H7+ H8+ H9- PREVIOUS NEXT Specific investments Information sharing CHAPTER 3 Conceptual Framework

The Institute of International Studies Ramkhamhaeng University The mediating roles of trust in the salesperson Trust in the company Salesperson antecedent The mediating roles of trust in the salesperson The mediating roles of trust in the company The mediating roles of trust in the company Company antecedent Salesperson antecedent Consequence construct Consequence construct H10+ H11+ H12+ PREVIOUS NEXT CHAPTER 3 Conceptual Framework

Our model was tested using empirical data on business relationships between customers and insurance companies. Specifically, the population of the study was defined as all customers that buy insurance from 1. The industry type only in Life Insurance not cover in Property/Casualty Insurance. 2. The type of customer, where the major types are ordinary, personal accident, group, and credit, in this study we cover only ordinary life insurance. 3. The type of distribution channel, the life insurers use one or more of three types of distribution systems such as personal selling, financial institutions and direct response. In this study we cover only personal selling by agent. 4. The duration of payment premium, where the major types are first year premium and renewal premium. In this study we cover both of them. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 3 Research Design

This study was conducted in Thailand; thus, those instruments needed to be translated into Thai language. Content validity was assessed by five experts. A pilot study was conducted by using 30 questionnaires. The main purpose of the pilot study was to evaluate the validity and reliability of questionnaires. To test our theoretical framework, quantitative data collected from the customer survey in Thailand were used. Sample units consisted of random customers to complete the survey questionnaire. Finally, to test the hypotheses, the multiple linear regressions were used. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 3 Research Design

The survey method used the life insurance companies' customer databases as a sampling frame. The sample was randomly drawn from the life insurance companies' customer databases. All 500 life insurance companies' customers were selected. The questionnaires were mailed to the life insurance companies' customers. The cover letter explained the purpose of the study, ensured confidentiality, and thanked the participants for their willingness to be a part of the project. Out of a total of 500 questionnaires, 218 were returned for a response rate of 43.6%.Then the missing data questionnaires were excluded, finally 200 questionnaires were usable in this study. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 3 Sampling Frame

Data Analysis Methods Mean values and univariate descriptive statistics were first used. To test the hypotheses, multiple linear regressions were performed to estimate the relationships in our theoretical model. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 3 Analysis Methods

Analysis and Results PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Analysis and Results

Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted COMP1 84.1333 102.4644 .4161 .8774 COMP2 84.3667 100.9299 .5651 .8731 COMP3 84.2000 100.9931 .6522 .8715 COMP4 84.9000 103.4724 .4959 .8754 TRUST5 84.1333 100.5333 .6106 .8720 TRUST6 84.0333 103.1368 .5540 .8742 TRUST7 83.8667 100.3264 .5943 .8723 TRUST8 84.3333 98.9885 .6652 .8702 SPERS9 85.0333 101.4126 .5563 .8735 SPERS10 85.1333 104.1885 .4069 .8774 SPERS11 84.0000 102.6897 .4986 .8751 SPERS12 84.2667 105.6506 .3066 .8799 SPERS13 85.0000 103.5172 .3388 .8799 SPERS14 84.9000 98.9897 .5656 .8727 SPERS15 84.6667 105.8851 .2626 .8814 SPERS16 84.5333 105.0161 .3072 .8802 TSALES17 84.9333 98.5471 .5697 .8726 TSALE18 85.0000 108.5517 .1707 .8823 TSALE19 84.5667 102.667 .4931 .8752 TSALE20 84.6000 101.5586 .558 .8735 PERFOR21 83.8333 99.4540 .6452 .8708 PERFOR22 84.4000 100.1103 .5465 .8734 CONFL23 85.7667 106.6678 .1800 .8847 CONFL24 85.5333 108.8092 .0848 .8866 Reliability Coefficients N of Cases = 30.0 N of Items = 24 Alpha = .8807 Table : Reliability analysis In this study, we obtained a Cronbach’s alpha coefficient of over .88 for these items. Conclusion: Cronbach’s alpha coefficient > .6 means, it has reliability. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Analysis and Results

PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University Table: Demographic profile of Respondents From table presents frequency and percentage of respondent’s demographic characteristics The respondents’ age ranged from 21-30 years was 56.5%. The respondents’ gender was male 19% and female 79%. Marital status was single 54%, married 42%. The income per month was 20,000-40,000 baths 55%. Most of them graduated in Bachelor degree 81% and Master degree 12%. CHAPTER 4 Analysis and Results

Hypothesis testing1 PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing1: Test statistic Sig =.000<  at .05, Decision: Reject Null Hypothesis1 Conclusion: The consumer’s trust in the insurance company is positively related to specific investments. Finding: In this study the result is correlated to the study by Ganesan (1994), stated that investments in specific manufacturing equipment by suppliers to meet the demand of buyers have been shown to increase confidence in the manufacturer. Further, Doney and Cannon (1997) indicate that buyers perceive an increasing opportunity cost for the manufacturer when higher specific investments are involved. Buyers perceive a lower risk of opportunistic behavior and an evidence of benevolence on the part of the supplier. It is an important managerial decision of the insurance company to engage in specific investments. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing2: Test statistic Sig =.000<  at .05, Decision: Reject Null Hypothesis2 Conclusion: The consumer’s trust in the insurance company is positively related to information sharing. Finding: In this study the result is correlated to the study by Strub and Priest(1976), When sharing confidential information with the buyer, the supplier is at risk of being more vulnerable. This action is a strong signal of goodwill on the part of the supplier. Futher, Auklah, Kotabe and Sahay (1996) conducted an empirically successful test of this relation. The inclusion is also relevant from a managerial point of view, since sharing information with customer is a strategic marketing decision of insurance company. The willingness of the insurance company to share confidential information with the customer is a tangible indication of goodwill. This cooperative behavior goes further than a perceived or expected trust of the customer in the insurance company. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing3: Test statistic Sig =.000<  at .05, Decision: Reject Null Hypothesis3 Conclusion: The consumer’s trust in the salesperson is positively related to the expertise of the salesperson. Finding: In this study the result is correlated to the study by Doney and Cannon(1997; Siguaw, Simpson and Baker(1998), The degree of expertise of the salesperson is related to his or her knowledge about the allowable conditions of the sales transactions. From the customer’s point of view, this expertise is related to the salesperson’s credibility to deliver promises and to be diligent and professional. It is potentially useful for the marketing decisions of insurance company. By improving the expertise of the salesperson, an insurance company may improve the customer’s degree of trust in the salesperson. The insurance company may also increase the customer’s trust in the salesperson by implementing a corporate communication program focused on the expertise of the salesperson. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing4: Test statistic Sig =.033<  at .05, Decision: Reject Null Hypothesis4 Conclusion: The consumer’s trust in the salesperson is positively related to the power of the salesperson. Finding: In this study the result is correlated to the study by Doney and Cannon(1997), With more authority within his or her organization, the salesperson will more easily deliver his or her promises. A more powerful salesperson is likely to be perceived to be more credible by the customer. In managerial point of view, as for expertise, power is controllable by the insurance company. Sales policies of the insurance company may objectively increase the power of the salesperson by allowing salespersons to make more independent decisions. The insurance company may also increase the customer’s trust in the salesperson by developing a communication program focused on the power of the salesperson. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing5: Test statistic Sig =.000<  at .05, Decision: Reject Null Hypothesis5 Conclusion: The consumer’s trust in the salesperson is positively related to the frequency of formal contacts. Finding: In this study the result is correlated to the study by Doney and Cannon (1997), formal contacts between salesperson and customer within the professional framework should have an impact on trust. The more frequent the contacts between a customer and a salesperson, the more the customer will know the salesperson and the more he or she will be able to predict the salesperson’s behavior and therefore develop more trust in the salesperson. In the management of the sales force, allocating resources is a major responsibility of managers and the frequency of formal contacts between salespersons and the customer is also a key decision-making variable in the management of the salesperson. Therefore, the frequency of formal contacts between salespersons and customer may not only have a short-term effect on sales but may also contribute to building trust in the salesperson. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing6: Test statistic Sig =.026<  at .05, Decision: Reject Null Hypothesis6 Conclusion: The consumer’s trust in the salesperson is positively related to the frequency of informal contacts. Finding: In this study the result is correlated to the study by Doney and Cannon(1997), informal contacts as well as formal contacts should have a positive effect on trust of the customer in the salesperson. However, this relationship was not found statistically significant in this study. From a managerial viewpoint, it is potentially useful for an insurance company to know if supporting informal relationships between salespersons and customer is valuable. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing7: Test statistic Sig =.000<  at .05, Decision: Reject Null Hypothesis7 Conclusion: The consumer’s trust in the insurance company is positively related to the consumer’s trust in the salesperson. Finding: In this study the result is correlated to the study by Doney and Cannon (1997) trust is first developing between individuals and the salesperson is the contact point between the company and the customer. The salesperson is therefore an important source of trust for the customer. Moreover, when a company is little known to the customer, the behavior of the salesperson serves as an indication of the values and ways of doing business of the company. Thus, trust in the salesperson is a condition for the customer to develop trust in the company (Chow and Holden, 1997). Trust is transferred from a well-known group or individual to a related less well-known group or individual (Strub and Priest, 1976). In management, we expect the two sources to be related, and we therefore expect that trust in the salesperson will be a determinant of trust in the insurance company PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing8: Test statistic Sig =.000<  at .05, Decision: Reject Null Hypothesis8 Conclusion: The consumer’s trust in the insurance company is positively related to the performance of the adopted product. Finding: In this study the result demonstrated that the role of trust as an antecedent of the performance of an insurance company has been confirmed. In other study is different from our study because we are concerned in study by the performance of new products or new brands frequently offered by insurance company to customer. Performance measures are of interest to managers who would like to know the effects of their decisions on the economic performance of their company. Further, the high frequency of new product offers, justifies the study of the impact of trust on this measure of success. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing9: Test statistic Sig =.274>  at .05, Decision: Do not Reject Null Hypothesis9 Conclusion: The consumer’s trust in the insurance company is negatively related to the level of conflicts between the consumer and the company. Finding: In this study the result demonstrated that the consumer’s trust in the insurance company is negatively related to the level of conflicts between the consumer and the company. The direction of the causal relationship between trust in the company and conflicts is debated. The degree of trust between company and customer is related to the level or degree of conflict of interests or lack of coordination (Anderson and Narus, 1990). With respect to conflicts, they have negative as well as positive aspects. Some level of conflicts may be beneficial, since when they are solved, they may help to avoid stagnation and contribute to the development of a business relationship (Deutsch, 1960; Anderson and Narus, 1990). Thus, reduction of conflicts may not always be appropriate and therefore this construct may not be adequately modeled as a linear consequence of trust in the company. The level of conflicts is important to managers, since a moderate level of conflicts may have positive effects, but a high level of conflicts may be detrimental to the performance of an insurance-customer relationship. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing10: Test statistic Salesperson expertise Sig =.001<  at .05, Decision: Reject Null Hypothesis10 in the salesperson expertise Test statistic Salesperson power Sig =.013<  at .05, Decision: Reject Null Hypothesis10 in the salesperson power Test statistic Formal contact Sig =.036<  at .05, Decision: Reject Null Hypothesis10 in the formal contact Test statistic Informal contacts Sig =.935>  at .05, Decision: Do not Reject Null Hypothesis10 in the informal contact Conclusion: There are a positive effect of the mediating roles of salesperson’s trust in the relationship between the salesperson expertise, salesperson power , formal contacts and the customer’s trust in the insurance company. There are a negative effect of the mediating roles of salesperson’s trust in the relationship between the informal contacts and the customer’s trust in the insurance company. Finding: In this study the result demonstrated that there are a positive effect of the mediating roles of salesperson’s trust in the relationship between the salesperson expertise, salesperson power, formal contacts and the customer’s trust in the insurance company. Further more, there are a negative effect of the mediating roles of salesperson’s trust in the relationship between the informal contacts and the customer’s trust in the insurance company. There are limited studies in this issue. In managerial point of view, since the tangible contact of the customer with the company is occurring through the salesperson, suggestion is that trust in the salesperson will be antecedent to trust in the supplier. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing11: Test statistic specific investment Sig =.020<  at .05, Decision: Reject Null Hypothesis11 in the specific investment Test statistic information sharing Sig =.046<  at .05, Decision: Reject Null Hypothesis11 in the information sharing Conclusion: There is positively effect from customer trust in company in relationship between company antecedents both specific investments, information sharing and consequen ce of company. Finding: In this study the result is correlated to the study by Aulak, Kotabe and Sahay (1996) have empirically found a mediating role of trust on the relationship between specific investments and performance. In management, the inclusion of consequences of trust in our model is also required because we are also interested to test its mediating role. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

Hypothesis testing12: Test statistic Salesperson expertise Sig =.000<  at .05, Decision: Reject Null Hypothesis12 in the salesperson expertise Test statistic Salesperson power Sig =.002<  at .05, Decision: Reject Null Hypothesis12 in the salesperson power Test statistic Formal contact Sig =.588>  at .05, Decision: Do not reject Reject Null Hypothesis12 in the formal contact Test statistic Informal contacts Sig =.964>  at .05, Decision: Do not Reject Null Hypothesis12 in the informal contact Conclusion: There is positively effect from customer trust in company in relationship between salesperson expertise and salesperson power and conseque nce of company. There is negatively effect from customer trust in company in relationship between formal contact, informal contacts and conseque nce of company. Finding: In this study the result demonstrated that there is positively effect from customer trust in company in relationship between salesperson expertise and salesperson power and conseque nce of company. Further more, there is negatively effect from customer trust in company in relationship between formal contact, informal contacts and consequen ce of company. There is limited research in the mediating role of the customer’s trust in the company to support the study. In managerial point of view, trust in the company may operate through a more complex mode and its effect will show in the long run. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 4 Results and finding

T he current research reveals that trust was found empirically related to some antecedent variables. Specific investments by the insurance companies were related to trust, as well as the effect of information sharing on trust. Trust in the salesperson was found empirically related to the expertise of the salesperson. Expertise and power in salesperson had an impact on the credibility dimension of trust in the salesperson. The frequency of formal and informal contacts had an impact on trust in the salesperson. The relationship between trust in the salesperson and trust in the insurance companies was confirmed as anticipated. This relationship is the strongest of our model. The impact of trust in the insurance companies on performance was confirmed, but not in conflict between customer and insurance company. The mediating roles of trust in the salesperson and trust in the insurance companies were formally tested. Trust in the salesperson was found to be a mediator of trust in the insurance companies for expertise, power and formal contact, but not in informal contact in Thailand. The trust in the insurance companies had mediating role between its antecedents and consequences. Moreover they had moderating role in relationship between salesperson expertise, power and company consequent as well. PREVIOUS NEXT The Institute of International Studies Ramkhamhaeng University CHAPTER 5 Summary

& THANK YOU QUESTION&ANSWER The Institute of International Studies Ramkhamhaeng University

TERDSAK ROJSURAKITTI Doctor of Philosophy Program in Business Administration (English Program) The Institute of International Studies Ramkhamhaeng University, Thailand; Master Degree in Business Administration, Thammasat University, Thailand; Doctor of Medicine, Chiang Mai University , Thailand; “ WORKING EXPERIENCE ” Vice President-Managed Care, American International Assurance Company, Limited. A Member of American International Group,Inc; Medical Advisory Committee of The Thai Life Assurance Association. The Institute of International Studies Ramkhamhaeng University

Trust In Insurance Company

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Trust In Insurance Company