The Effect of Perceived Quality, Perceived Cost and Repurchase Intention in the Insurance Industry

This study aims to investigating the effect of perceived quality and perceived cost on the perceived value by customers and their repurchase intention in the insurance industry. To this aim, the clients of Mellat and Iran Insurance Companies in the city of Ramsar were taken as the statistical population. The size of the population, selected based on simple random sampling, was calculated at 382 individuals using the Cochran Formula. For data collection purposes, a questionnaire was utilized with a Cronbach-Alpha value of 0.932. Finally, for the purpose of data analysis and testing the research hypotheses, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM) were utilized. As data analysis results indicate, the perceived quality of insurance impacts the functional, social and affective emotional values of customers. The perceived cost of insurance affects only the functional perceived value by the customer. In addition, the perceived functional and emotional values of insurance influence the intention of clients regarding the repurchase of insurance services. However, social value does not affect the repurchase intention of insurance services clients.