* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Cross-cultural Communication Education: The AIDA Model
Affiliate marketing wikipedia , lookup
Sales process engineering wikipedia , lookup
Marketing communications wikipedia , lookup
Target audience wikipedia , lookup
Marketing channel wikipedia , lookup
Ambush marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Marketing research wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Target market wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Marketing strategy wikipedia , lookup
Advertising campaign wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Green marketing wikipedia , lookup
Sensory branding wikipedia , lookup
International Association for the Study of Insurance Economics études et Dossiers études et Dossiers No. 369 World Risk and Insurance Economics Congress 25-29 July 2010 Singapore Working Paper Series of The Geneva Association The Geneva Association - General Secretariat - 53, route de Malagnou - CH-1208 Geneva Tel.: +41-22-707 66 00 - Fax: +41-22-736 75 36 - [email protected] - www.genevaassociation.org International Association for the Study of Insurance Economics Études et Dossiers Études et Dossiers No. 369 World Risk and Insurance Economics Congress 25-29 July 2010 Singapore February 2011 Working Paper Series of The Geneva Association This document is free to download from The Geneva Association website, www.genevaassociation.org © Association Internationale pour l'Etude de l'Economie de l'Assurance The Geneva Association - General Secretariat - 53, route de Malagnou - CH-1208 Geneva Tel.: +41-22-707 66 00 - Fax: +41-22-736 75 36 - [email protected] - www.genevaassociation.org The Geneva Association Working Paper Series “Études et Dossiers” appear at irregular intervals about 10 – 12 times per year. Distribution is limited. The “Études et Dossiers” are the working paper series of The Geneva Association. These documents present intermediary or final results of conference proceedings, special reports and research done by The Geneva Association. Where they contain work in progress or summaries of conference presentations, the material must not be cited without the express consent of the author in question. This document is free to download from The Geneva Association website, please visit: www.genevaassociation.org Layout & Distribution: Valéria Kozakova © The Geneva Association - Association Internationale pour l'Etude de l'Economie de l'Assurance The Geneva Association________________________Etudes et Dossiers no. 369 Group Insurance Marketing in Taiwan: A Case Study Yaolung J. Hsieh 1, National Chengchi University, Taiwan ABSTRACT Utilizing a longitudinal case study approach, we found that factors contributing to the success of group insurance marketing included good use of resources, flexibility, efficient information searching, and strategic orientation. We also found that the group insurance marketing process of the company under study, in general, matched the relationship marketing process. Furthermore, guanxi, a distinct feature of Chinese culture, played a significant role in influencing the group insurance marketing performance in the past ten years for the company. Although the importance of guanxi depends on the size of the firms an insurance company is dealing with, its value should not be underestimated. Trust normally comes before a business relationship is established and is reinforced through superior after-sale services. Apart from providing theoretical and managerial implications, we also present the study’s limitations and suggestions for future research. Key words: group insurance marketing, relationship marketing, guanxi, trust, Taiwan 1 The author thanks Miss Z. L. Song and Miss Z. C. Cheng for their assistance. Document free to download www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 INTRODUCTION Group insurance is beneficial for employers, employees, and insurance companies. For employers, group insurance provides more risk pooling or premium averaging; for insurance companies, the administration costs of group insurance are lower than those of individual insurance; for employees and their families, group premiums are lower than what they would have to pay for individual policies (Pauly et al., 1999), and they often have more confidence in insurance companies selected by their employers. Group insurance is designed so that employers can get widespread insurance coverage for their employees at a reasonable cost, which also helps improve employee benefits and morale, helping companies retain talented professionals (Yearian, 2003). A review of the literature, however, indicates that research on group insurance marketing is very limited. Except for a handful of trend studies and simple descriptive studies conducted by the Life Insurance Marketing and Research Association (LIMRA), academic research on group insurance marketing is scarce. Furthermore, studies on group insurance marketing have been conducted mostly in Western countries. Because of the increasing importance of Asia in the world economy and because of the benefits of group insurance for employers, employees, and insurance companies, it is essential to explore group insurance marketing in this region. To fill the gap in the research, we adopt a case study approach to evaluate how one successful insurance company in Taiwan markets its group insurance products and services. A case study approach can capture reality in greater detail and allow the researcher to investigate a contemporary phenomenon in its real-life context when phenomenon and context cannot be separated (Yin, 2003). We assumed that a successful Document free to download 2 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 group insurance marketer would be capable of establishing its competitiveness through effective marketing strategies—particularly relationship marketing strategies (to be discussed below) in the services industries (Berry and Parasuraman, 1991; Ennew and Waite, 2007; Grönroos 1995; Hsieh, 2004, 2009; Morgan and Hunt 1994). There are important theoretical and practical implications to understanding how successful group insurance marketers apply relationship marketing strategies. Consequently, the purposes of this study were to examine how a particular Taiwanese life insurance firm succeeded in group insurance marketing and how its strategies involved relationship marketing. The rest of this paper is organized as follows. First, we review the relevant literature and then introduce this study’s methodology. Next, we present the results and discuss their theoretical and managerial implications. Finally, we consider this study’s limitations and make suggestions for future research. LITERATURE REVIEW Given the broad benefits group insurance brings to all sides, its importance cannot be overstated. However, since most group insurance policies are one-year contracts, many group insurance underwriters face the challenge of renewing their contracts every year. Employers typically look for ways to improve their current plan design, service satisfaction, or insurance rates of their policies. To meet market competition, group insurance rates continue to drop, sometimes even in cases where claims experiences have been poor (Muncil, 2009). This is especially true in Taiwan. According to statistics from the Taiwan Insurance Institute (2010), group life insurance premiums have been flat in the past few years (see Table 1). [Place Table 1 here] Document free to download 3 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 To succeed—or at the very least survive in such a competitive market—group insurance markets have to find effective marketing strategies that help them identify target markets, satisfy customer needs, and enhance customer relationships. However, research into effective group insurance marketing is scarce. Given that group insurance marketing involves services marketing and industrial marketing, and that the framework of relationship marketing is more suitable in these fields (Berry and Parasuraman, 1991; Ennew and Waite, 2007; Grönroos 1995; Hsieh, 2004, 2009; Morgan and Hunt 1994), we discuss this framework as follows: The Framework of Relationship Marketing Unlike production, sales, or marketing orientations, partnering orientation or relationship marketing drives the sales force to focus on long-term buyer and seller needs and to build strong relationships with customers in order to create value for both parties (Weitz and Bradford, 1999). This perspective is especially true for service offerings with low economies of scale (Johnson and Selnes, 2004), for services that are complex and delivered over a continuous stream of transactions (Berry, 1983; Levitt, 1983), and for situations where many buyers are relatively unsophisticated regarding the service (Ghingold and Maier, 1986), such as with insurance service (Crosby and Stephens, 1987). Since customer relationships are so vital, but yet subject to change, it is important to investigate the dynamic nature of customer relationships (Johnson and Selnes, 2004) and the relationship marketing process (Eiriz and Wilson, 2006; Mitussis et al., 2006). Mitussis and colleagues (2006) propose that one of the primary reasons why many businesses fail to implement customer relationship management (CRM) is that they are incapable of systematically engaging in what is known as “relationship processes.” Eiriz Document free to download 4 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 and Wilson (2006) also stress the importance of relationship processes, which include relationship establishment, development, maintenance, and termination, in addition to relationship rationale and structures. In emphasizing the significance of developing a relationship with customers, Peppers and colleagues (1999) propose four key steps for implementing a relationship marketing program: identifying customers, differentiating between them, interacting with them, and customizing products or services to fit each customer’s needs. Emphasizing the dynamic nature of exchange relationships between buyers and sellers, Johnson and Selnes (2004) propose a typology of exchange relationships, which consists of acquaintances, friends, and partners. Parity products, differentiated products, and customized products are delivered respectively to the three types of buyers with different levels of relationships with sellers. Competitive advantage at the acquaintance level is gained by delivering satisfaction and at the friendship level by delivering satisfaction plus trust. Commitment is required, in addition to satisfaction and trust, to create competitive advantage with customers at the partnership level. In response to these proposals, this article presents a four-step framework of relationship marketing for group insurance marketers (see Figure 1). [Place Figure 1 here] This long-term and partnering-oriented (Weitz and Bradford, 1999) framework includes the investigation of after-sale services and takes into account the dynamic nature (Johnson and Selnes, 2004) and the importance (Eiriz and Wilson, 2006; Mitussis et al., 2006) of relationship processes. We assumed that a successful insurance company would be capable of identifying, Document free to download 5 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 segmenting, and satisfying its target customers as well as maintaining and enhancing relationships with them. Understanding how successful insurance companies apply relationship marketing has important theoretical and pragmatic implications. We also used the following research questions as guidelines to assist in the collection of data: 1. Why was the insurance company under study successful in group insurance marketing? 2. How did the insurance company market its group insurance products and services and how did this marketing process reflect relationship marketing? METHODOLOGY According to Yin (2003) and others (Merriam, 1998), the case study approach is preferred when “how” and “why” questions are being posed, when the relevant behaviors cannot be manipulated, and when the focus is on contemporary events. The current study uses a case study methodology precisely because the goal is to examine a particular insurance company’s real-life behaviors that cannot be manipulated and see how it succeeded in Taiwan using relationship marketing. As suggested by Yin (2003), the single-case study is an appropriate design under five circumstances: first, when it provides a critical test of a well-formulated theory; second, when it represents an extreme or unique case; third, when it is a representative or typical case; fourth, when it is a revelatory case; fifth, when it is longitudinal. The insurance company under study not only had been the group insurance market leader in Taiwan for the past ten years, but also was perceived by consumers as the number one insurance brand for 11 executive years (Lee and Din, 2010; Lin, 2010). Furthermore, we had been studying this company since 2000. Consequently, it played the critical role of Document free to download 6 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 testing the theory of relationship marketing, was a unique case, was revelatory in nature, and was longitudinal. According to Yin’s (2003) framework, six sources of evidence are most commonly used when carrying out case studies: documentation, archival records, interviews, direct observations, participant observations, and physical artifacts. Since these sources of evidence are complementary, and because a good case study includes as many sources as possible, we collected all six types of evidence. We interviewed eight managers in charge of group insurance marketing in this company during three periods - 2000, 2004, and 2010. We approached the managers with questions about the company’s successful marketing strategies and their marketing processes. We also interviewed two employees in change of group insurance from the company’s corporate customers. We approached the employees with questions about the company’s service quality and their level of satisfaction. Non-participant observations were used when we visited this company with students (more than four times) and lectured for their sales force (more than 30 times) from 2000 to 2007. Participant observations were used when we looked at the company’s website for group insurance products and services and subsequently asked related questions of the business employees when we met in person. In March, 2010, we also invited the company’s chief manager of group insurance marketing to deliver a three-hour lecture on their group insurance marketing, which was recorded and transcribed. The chief manager also answered several questions about its success in group insurance marketing during the lecture. We collected other documentation, such as the guidelines of group insurance marketing used as on-the-job training materials and other internal resources used to help Document free to download 7 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 the sales force communicate with customers. Archival records such as survey data collected by print media Management Magazine, The Common Wealth, and Newsweek Asia, were also gathered. Physical artifacts, such as the promotional materials and lists of product categories, were also compared with data collected from the five other sources. As suggested by Yin (2003) and others (Merriam, 1998), this paper documents the research procedures (see Table 2) and develops a case study database to establish its reliability. Furthermore, we collected evidence from a variety of sources and established a chain of evidence to enhance construct validity. To verify its internal validity, pattern matching and explanation building were carried out. [Place Table 2 here] FINDINGS After analyzing all six types of data, we present our findings as follows, in the order of the research questions proposed previously. Factors Contributing to Success Factors contributing to the success of the insurance company involve good use of resources, flexibility, efficient information searching, and strategic orientation. Good use of resources. The life insurance company under study belonged to a financial holdings company and was able to make good use of resources under this company. These resources helped the company gain the opportunity to meet key persons in potential customer companies and close deals. Subsidiary organizations, such as a hospital, a real estate firm, a bank, an investment company, a brokerage firm, and a property and casualty company, became this insurance company’s reliable customers. Through the help of these subsidiaries, the company found it easy to approach and close Document free to download 8 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 deals with customers. The current department manager of group insurance marketing recounted the following experiences: It took us more than five years to close the deal with the YD Company, who had more than 50,000 employees. Following formal procedure, our group insurance proposal was always turned down. After I took the position as group insurance manager, I was determined to close the deal with this company and decided to make some strategic changes. After several communications, the senior manager in our bank was willing to help and he collaborated with the property and casualty company and group insurance department to visit this company. Because our bank gave loans to this company and we were one of its biggest shareholders, its senior managers surely would see us. After further arrangements, I was able to see its general manager and financial executive officer as well as some middle managers and junior managers. In other words, we kind of reversed the process of meeting their key persons. These contacts established our mutual trusts and we, of course, were able to close the deal with this company without any difficulty. I once visited a travel agency to discuss collaboration of travel insurance projects for its customers. The boss had been bothered by backbone problems for a year, and I happened to know a very good doctor in the hospital of our financial holdings. Following my recommendation, he went to see the doctor. He recovered after two visits and was very thankful. I asked him a favor for return, that is, to buy group insurance policy from us. After a short period of time, he gave me a call and asked for the contract because the deadline of his company’s current group insurance policy is approaching. It appeared to be common for employees in this company to share resources with one another, especially when they had good guanxi (personal relationships). In the words of one informant: After a casual conversation with the boss of a small-sized firm around the airport, I aroused his motivation to purchase group insurance. I passed this business opportunity to a local agent as a return of favor because he took me to the high-speed rail station and provided good services a while ago. After two visits, the deal was closed and he made a handsome commission. (M, Senior Manger) All the managers interviewed in the past ten years emphasized the importance of guanxi when doing business with small-sized firms. These firms usually don’t require bidding because of their size and lack of experts capable of conducting careful group insurance analysis. Consequently, they often buy group insurance from those insurers that Document free to download 9 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 they keep good relationships with. Because small firms contributed greatly to this insurance company’s profits, the company devoted a significant effort to accumulate this form of social capital. The importance of guanxi, however, is not limited to small firms. A local sales manager reported his opinions of guanxi and price as follows: We classified our target markets in terms of the size of the company. If it is a small-sized firm and we have good relationships, the price is not of concern. If it is a medium-sized firm, both guanxi and price matter. If the firm has more than 1,000 employees, we, of course, need to have guanxi; nevertheless, the price is even more important than guanxi. The rank of people in the company you know is the critical factor to close a deal in group insurance marketing. The higher the rank of the people you have relationships with, the better chance that you will succeed. My marketing strategy is to identify the size of potential customers first, then look for mutual friends who can introduce me to the potential customer. The higher the rank of the person in the company introduced by this mutual friend, the better the chance of success. Otherwise, I have to offer lower prices in order to close the deal. Guanxi is very important in group insurance marketing. To have qualified employees accumulate and exploit its resources, the company relied upon on-the-job training facilities, in addition to attractive salaries and benefit packages. The company had three educational centers located in northern, central, and southern Taiwan – the biggest educational facilities among Taiwanese insurance firms. We were able to access the physical facilities (including classrooms, dorms, and recreational facilities) in these three centers the company’s headquarters when employees were given on-the-job training. Furthermore, to improve its employees’ skills and knowledge, the company provided intranet systems with online learning programs and customer information searching services. The sales and on-the-job training performance was evaluated periodically and linked to the company’s reward mechanism. Because it was the largest life insurance company and carried a good reputation, the size and the reputation of the company might be its best resources. Both informants from big corporate customers and group insurance marketing managers interviewed Document free to download 10 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 emphasized the mutual benefits of doing business with one another. The following excerpts from interviews with a senior insurance manager and a large customer revealed the benefits of two big firms becoming business partners: Senior insurance manager: When I walk on the street and see all those big names become our customers, I have a sense of achievement. Similarly, those mangers in the YD Company told me that they felt proud to do business with big insurance companies like us. Large customer: We not only are a big firm but also have good reputation. Therefore, many insurance firms like to sell us insurance policies, even though they have to lower their prices. They can brag about doing business with us and use us as a live advertisement. It is a sense of mutual benefits. We, of course, like to buy insurance from big firms with good reputations. We usually have fewer arguments when making claims with big insurance companies. That is because we have mutual understanding that both of us need to take responsibilities to maintain our reputation. Flexibility. Our findings indicated that the major products provided to group insurance customers changed very little during the past ten years. These products involved three main categories: life insurance, health insurance, and accident insurance. However, customized combinations of insurance policies were provided to customers based on their needs. Insurance companies also provided Internet-based service to satisfy customers’ needs. Furthermore, compared to individual insurance, the pricing strategy of group insurance was more flexible. Apart from mortality rates, interest rates, and loading, the pricing of group insurance also took into account factors such as the insurance records of the target company, the products it sold, its size, and the contents of coverage. In addition to 80 group insurance sales representatives, the company used more than 26,000 sales agents and other channels (i.e., brokers) to help find potential customers and satisfy their needs. The company was also flexible in approaching key persons in target companies, as revealed in previous section. Efficient information searching. This insurance company appeared to have clear and Document free to download 11 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 efficient group insurance marketing guidelines for sales people. These guidelines were gathered mainly from successful Japanese companies through a variety of channels, such as company visits, invited speeches, collaboration projects, and so forth. The group insurance marketing process of this company involved eight stages: (1) analyzing markets; (2) searching for potential customers; (3) analyzing potential customers and preparing materials; (4) writing proposals; (5) presenting proposals and analyzing competitors; (6) earning the trust of potential customers (especially the key man); (7) closing deals and signing contracts; and (8) providing after-sale services (to be discussed below). Because all the employees in group insurance marketing relied on guanxi, they were able to dig out true and useful information through communication with key people. To avoid making the other party to lose face, Taiwanese are often reluctant to reject other people’s offers in person or to reveal the true cause of turning down a business proposal. Only those who have guanxi with key persons within target organizations can explore the real causes for purchasing or not purchasing an insurance policy. Being able to collect this critical information helped the company overcome potential obstacles and close deals, which eventually contributed to its successful marketing performance. Strategic orientation. There has been a clear purpose of group insurance marketing in the past ten years – to help identify the target market for worksite marketing. Consequently, making profits was not of primary concern to the group insurance department. The key performance index used for the group insurance department included performance by the group insurance department, such as group insurance sales volume and level of satisfaction; the index also included performance measures such as Document free to download 12 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 insurance sales volume by sales reps who were involved in worksite marketing, which was related to group insurance. With this purpose in mind, the group insurance marketing department worked hand-in-hand with those sales reps who were involved in worksite marketing for the past 10 years. For example, the group insurance department hired a Japanese manager in order to develop Japanese worksite markets in Taiwan. In the words of one informant: I have a Japanese manger in my department, and he is very useful in developing Japanese customers in Taiwan. The strength of this Japanese manger is that he shares a lot of interests with potential Japanese customers. They can chat with each other and enjoy their conversation. This process builds trust with customers and it is very easy to sell the policies after trust has been established. (M, Senior Manager) This company also paid close attention to external influences, such as the rise of labor costs in Taiwan and the moving out of Taiwanese small- and medium-sized firms to Mainland China and southeast Asian countries. To follow this market trend, the company established its subsidiaries in these countries and used group insurance marketing as a cornerstone to enhance worksite marketing performance. Given that reputation is a big strength in attracting and developing relationships with customers, the company was willing to sacrifice short-term profits to maintain its reputation. A senior manager recounted his experience as follows: I encountered an awful experience last year when dealing with a dentist case. Given that dentists are low risk customers, we are happy to have them as our customers. When we signed contracts with the hospital, however, it was beyond our belief that a dentist, in addition to the hospital that he belongs to, can join other groups, such as dentist association, to enjoy the benefits of group insurance. We ignored the fact that, apart from NT$ 7 million insured under the hospital, this dentist was also insured NT$ 6 million under the dentist association. Three months after he was covered by our group insurance policy, he was dead. The claim department in our company argued that we should cancel the policy because they did not tell us the whole truth. Nevertheless, my view is that group insurance is different from individual insurance. Individual insurance can control each individual’s risk, but group insurance has to assume the risks from former insurers. To maintain our reputation, we eventually Document free to download 13 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 paid the claim of NT$ 13 million. We, of course, intended to persuade them to improve their structure and lower the coverage for each dentist when renewing the policy. Marketing Strategies The group insurance marketing process adopted by this company, in general, matched the framework of relationship marketing. A comparison of this company’s marketing process to the framework of relationship marketing is presented in Table 3. [Place Table 3 here] It’s clear that, through good use of its resources, flexibility, efficient information searching, and strategic orientation, the insurance company was able to identify suitable and profitable target markets, satisfy their needs and preferences, and maintain and enhance customer relationships. According to the theory of relationship marketing, not all customers are good customers. Consequently, it may come to a point where a company has to decide which customer relationship to terminate. Our data revealed that both premium and claim experience were taken into account when deciding which customer relationship to be terminated. This company normally gave up customers who did not want to pay reasonable premiums and customers who had poor claim experiences (i.e., they were risky or the claims were too expensive). Because of this marketing process, the company established good reputation among its (potential) customers, and this reputation emphasized further the importance of after-sale services. Claim services, without a doubt, are the most important after-sale service in the insurance industry. The dentist case discussed previously is a good demonstration of how Document free to download 14 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 the company cared about after-sale services. Its customers also reported their satisfaction with the company. One customer recounted her experience as follows: According to my experiences in the past few years, the insurance company provides efficient claim services. Furthermore, the insurance company offers on-site sales reps to take care of claim issues and to respond to other problems that our employees encounter. (F, 58, large-sized firm) However, individual sales reps sometimes made mistakes because they considered their personal benefits when providing claim services. The following case provided by a senior manager demonstrates the importance of on-the-job training in educating sales reps to be customer-oriented: Some sales reps perceive giving claims to beneficiaries as an opportunity for individual insurance sales. For instance, some employees of our group insurance customers died last year when they were on duty. After the claims were approved by our claims department, our sales rep thought this was a good opportunity to sell individual insurance, therefore he gave the claims to beneficiaries without informing their personnel manager. This was not right. The personnel manager of this corporate customer was hoping that our sales rep could accompany him to give the claims to beneficiaries. This case indicates that there is still room for improvement when it comes to teaching our sales reps what customer orientation is. Investigation of these factors contributing to the company’s success indicated that to carry out group insurance marketing process or relationship marketing, the company also relied upon internal marketing and marketing mix, as well as periodical evaluation and control. Internal marketing is defined as “attracting, developing, motivating, and retaining qualified employees through job-products that satisfy their needs,” (Berry and Parasuraman, 1991, p. 151) and it appeared to be critical for the implementation of relationship marketing and for the success of this company. Internal marketing involved recruiting appropriate sales people with attractive salaries, providing effective on-the-job training and benefit packages, and employing an efficient performance-evaluation index. Document free to download 15 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Customized marketing mixes helped the company successfully carry out its group insurance marketing strategies. For instance, the company successfully used customized products and pricing; flexible communication skills in approaching target markets or closing deals; and multiple channels that helped to explore target markets and satisfy their needs. Periodical evaluation and control ensured the company overcame potential obstacles and boosted morale in a timely manner. For instance, the new department manager of group insurance quickly realized the problem of reaching key people in YD Company, and effective solutions were proposed to close the deal. According to the data, we revised the framework of relationship marketing for group insurance marketers, as seen in Figure 2. [Place Figure 2 here] DISCUSSION Utilizing a longitudinal case study approach, we found that factors contributing to the success of group insurance marketing included good use of resources, flexibility, efficient information searching, and strategic orientation. We also found that the group insurance marketing process of the company under study, in general, matched the relationship marketing process. Furthermore, guanxi, a distinct feature of Chinese culture, played a significant role in influencing the group insurance marketing performance in the past ten years for the company. Although the importance of guanxi depends on the size of the firms an insurance company is dealing with, its value should not be underestimated. Trust normally comes before a business relationship is established and is reinforced through superior after-sale services (Hsieh, 2009). Document free to download 16 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Since case studies, like experiments, can be generalized to theoretical propositions but not to populations or universes (Yin, 2003), we discuss both theoretical and managerial implications of this particular study and make suggestions below. Theoretical Implications Given that there was a lack of literature in the field of group insurance marketing, we relied upon relationship marketing literature to propose our research framework. The literature of relationship marketing indicated that strong relationships with customers (Weitz and Bradford, 1999) and a well-executed relationship marketing process (Eiriz and Wilson, 2006; Mitussis et al., 2006) are essential to success in the services industries in general and in the insurance industry in particular. Furthermore, since customer relationships are important, but sometimes unstable, it is important to investigate the dynamic nature of customer relationships (Johnson and Selnes, 2004). We were able to examine the dynamic nature of the case company’s relationships with its customers through a longitudinal study. We found that the level of relationships of the case company with customers—according to the typology of exchange relationships proposed by Johnson and Selnes (2004)—was like that between friends and partners. It delivered customized products to its customers and built its competitive advantage through delivering satisfaction plus trust, and worked hard toward the partnership level, which requires commitment. Our findings also echoed arguments that strong relationships with customers (Weitz and Bradford, 1999) and a well-executed relationship marketing process (Eiriz and Wilson, 2006; Mitussis et al., 2006) are essential if an insurance company is to succeed in group insurance marketing. Furthermore, internal marketing, marketing mix, and periodic Document free to download 17 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 evaluation and control are critical in relationship marketing. Our primary contribution is that we compared the factors that contributed to our case company’s success with the relationship marketing literature and proposed an integrated framework of group insurance marketing. This framework is more theoretically sound than any other framework in the literature and more pragmatically implementable (to be discussed below). However, given that the findings of a single-case study cannot be generalized to other populations or universes, further investigation of the relationships between variables within the framework is encouraged. Managerial Implications Although not every insurance company has as many resources or is as capable of employing marketing strategies as the case company, the factors that contribute to the success of group insurance marketing still offer important implications for other insurance companies. For example, strategic orientation requires an insurance company pay close attention to external influences and maintain strong long-term relationships with profitable customers. Strategic orientation also helps it identify qualified personnel and critical information about customers, at the same time providing efficient approaches to collect this type of information, which are essential for successful implementation of group insurance marketing. Successful group insurance marketing requires the effective use of resources, no matter how many or few resources an insurance company has. Flexibility is critical in conducting business in China or Taiwan (Hsieh, 2004) and enables an insurance company to adjust its strategies and methods of communication in a timely manner. The case company has been successful in the past ten years; however, it needs an Document free to download 18 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 integrated framework like the one proposed in this study to enhance its marketing performance. For instance, the mistakes of sales reps who provided claims to beneficiaries may hinder the case company’s relationships with customers and its marketing performance. However, following the framework of group insurance marketing can reduce these problems. The framework starts with an inspection of external factors that may influence a company’s group insurance marketing. For instance, by following market trends, the case company was able to identify its targets in Taiwan as well as in Mainland China and southeast Asian countries. Then relationship marketing can be carried out. To enhance the effectiveness of the relationship marketing process, an insurance company needs to have well-executed internal marketing and customized marketing mixes. Furthermore, to detect mistakes in a timely manner and to implement immediate adjustment, an insurance firm needs periodical evaluation and control, as well as instant feedback. Limitations and Suggestions Because of the weakness of a single-case study in generalizing its findings to populations or universes, we encourage a multiple-case study to be conducted. A second case company with a comparable market share or a similar customer base, or a third one with poor performance in group insurance marketing can provide further evidence to improve the framework. The corporate customer informants that we interviewed were mainly from large firms. Given that firms with different sizes may demonstrate different purchasing behaviors, it is necessary to explore perspectives of small firms and medium firms if we are to have fuller evidence to support our framework. Document free to download 19 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Our data were also limited to Taiwan. Given the rise of China’s economy and the opportunity it brings, it is valuable to explore the perspectives of group insurance customers in China and the marketing strategy used to create, maintain, and enhance relationships with them. Document free to download 20 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 REFERENCES Berry, Leonard L. and A. Parasuraman (1991), Marketing Services—Competing through Quality, The Free Press, A Division of Macmillan, Inc., New York. Berry, Leonard L. (1983), “Relationship Marketing,” in Emerging Perspectives on Services Marketing, L. L. Berry, G. L. Shostack, and G. D. Upah (Eds), Chicago: American Marketing Association, 25-8. Crosby, Lawrence A. and Nancy Stephens (1987), “Effects of Relationship Marketing on Satisfaction, Retention, and Prices in the Life Insurance Industry,” Journal of Marketing Research, XXIV(November), 404-411. Eiriz, Vasco and Dom Wilson (2006), “Research in Relationship Marketing: Antecedents, Traditions and Integration,” European Journal of Marketing, 40(3/4), 275-291. Ennew, Christine and Nigel Waite (2007), Financial Services Marketing: An International Guide to Principles and Practice, 2007, Elsevier Ltd. Ghingold, M. and K. C. Maier (1986), “Questioning the Unquestioned Importance of Personal Service in Services Marketing: Discussion and Implication,” paper presented at American Marketing Association Services Conference, Boston, MA. Grönroos, Christian (1995), “Relationship Marketing: The Strategy Continuum,” Journal of the Academy of Marketing Science, 23(4), 252-254. Hsieh, Yaolung J. (2004), Life Insurance Marketing, 3rd edition, Hwa-Tai Publishing Company, Taipei, Taiwan. Hsieh, Yaolung J. (2009), “Marketing strategies of Million Dollar Round Table Members,” The Third ACE International Conference Proceedings, Hong Kong, China. Johnson, Michael D. and Fred Selnes (2004), “Customer Portfolio Management: Toward a Dynamic Theory of Exchange Relationships,” Journal of Marketing, 68(April), 1-17. Lee, Y. P. and Y. S. Din (2010), “Survey of Consumers’ Ideal Brands”, Management Magazine, January, 32-40. Document free to download 21 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Levitt, Theodore (1983), “After the Sale Is Over,” Harvard Business Review, 61(September-October), 87-93. Lin, Y. H. (2010), “CIC Have Been Selected as the Best Brand by Consumers for 11 Executives Years,” The United Daily News, Jan. 4, AA1. Merriam, S. B. (1998). Qualitative Research and Case Study Applications in Education (2nd ed.). SF: Jossey-Bass Publishers. Mitussis, D., L. O’Malley and M. Patterson (2006), “Mapping the Re-engagement of CRM with Relationship Marketing,” European Journal of Marketing, 40(5/6), 572-589. Morgan, Robert M. and Shelby D. Hunt (1994), "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing, 58 (July), 20-38. Muncil, C. (2009), “New Options Arise from Competition,” Best’s Review, 110(5), 63. Pauly, M., A. Percy, and B. Herring (1999), “Individual versus Job-based Health Insurance: Weighing the Pros and Cons,” Health Affairs, 18(6), 28-44. Peppers, D., M. Rogers, and B. Dorf (1999), “Is Your Company Ready for One-to-One Marketing?” Harvard Business Review, January/February, 151-160. Weitz, B. A. and Kevin D. Bradford (1999), “Personal Selling and Sales Management: A Relationship Marketing Perspective,” Journal of the Academy of Marketing Science, 27(Spring), 241-254. Yearian, T. (2003), “Executive Benefits Should Be Needs Based,” Journal of Financial Service Professionals, 57(4), 22-23. Yin, Robert K. (2003). Case Study Research: Design and Methods (3rd ed.). Thousand Oaks, CA : Sage Publications. Document free to download 22 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Table 1. Group Insurance Premium in Taiwan Year/Month Group Insurance Premium 2000 15,765 2001 18,194 2002 20,189 2003 21,948 2004 22,425 2005 23,477 2006 22,503 2007 22,689 2008 21,217 2009/1-10 16,327 Unit: NT$ Million; US$ 1 = NT$ 32 Source: Taiwan Insurance Institute Document free to download 23 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Identifying the target market Segmenting target customers and analyzing their needs Satisfying customers Maintaining, enhancing, and terminating customer relationships Figure 1. Relationship Marketing Framework Document free to download 24 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Table 2. Research Procedures of Current Study Conducted literature review on group insurance marketing and relationship marketing Proposed research questions Conducted participant and non-participant observations Acquired documentation, physical artifacts, and archive records Proposed interview questions and conducted in-depth interviews Invited a three hour lecture regarding group insurance marketing Analyzed and compared data Wrote the paper Document free to download 25 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Table 3. A Comparison of the GI Marketing Process and the Framework of RM The GI Marketing Process The Framework of RM 1. Analyzing markets Identifying the target market 2. Searching for potential customers Identifying the target market 3. Analyzing potential customers Segmenting target customers and analyzing and preparing materials their needs 4. Writing proposals Satisfying (potential) customers 5. Presenting proposals and Satisfying (potential) customers analyzing competitors 6. Earning the trust of potential Satisfying (potential) customers customers (especially the key man) 7. Closing deals and signing contracts Satisfying (potential) customers 8. Providing after-sale services Maintaining, enhancing, and terminating customer relationships Document free to download 26 www.genevaassociation.org The Geneva Association________________________Etudes et Dossiers no. 369 Environmental Influence Feedback Internal Marketing Identifying the target market Segmenting target customers and analyzing their needs and preferences Feedback Marketing Mix Satisfying customers Maintaining, enhancing, and terminating customer relationship Evaluation and control Figure 2. Framework of Group Insurance Marketing Document free to download 27 www.genevaassociation.org