Antecedents of Insurance Agents’ Loyalty for Different Forms of Transaction-Specific Investments in the Turkish Insurance Sector

Abstract

This article's first aim is to investigate the effects of trust, satisfaction, transaction-specific investment (TSI), perceived value, and corporate reputation on loyalty in business markets. The second aim is to analyze and compare the effects of these variables on loyalty in symmetrical and asymmetrical TSIs. Prior research has examined the interactions among these constructs, mainly in relationships between businesses and consumers. In this article, we test hypotheses among these constructs using data obtained from insurance agents in a business-to-business context. The research findings show that trust, satisfaction, perceived value, and the insurance agent's perceptions of the insurance company's TSIs have a direct effect on loyalty. Trust, satisfaction, and perceived value have an effect on loyalty in both symmetric and asymmetric TSI conditions. The study suggests that managers in insurance companies should develop strong behavioral and emotional ties with agent firms as part of their relationship marketing strategy. Finally, theoretical and managerial implications of the study findings are discussed.

KEYWORDS:

• corporate reputation
• loyalty
• perceived value
• satisfaction
• transaction-specific investment
• trust