Evaluation of Quality Function Deployment System on Customers’ Patronage: An X-Ray of Nigerian Insurance Industry

Abstract

This study was conducted to x-ray the nexus between Quality Function Deployment System and Customers Patronage in the operations of insurance company in Nigeria with primary objective of investigating how insurance companies can employ quality function deployment factors to improve customers’ patronage in the face of economic crisis and environmental change. Survey method was used to collect primary data through administration of questionnaires on 278 respondents from the selected insurance companies. Regression analysis, ANOVA and standardized regression analysis were used to analyze the formulated hypotheses. The findings showed that (R²=0.865, Adj. R²=0.825, F-test=1242.8, P< 0.000, for Hypothesis 1); (R²=0.883, F-test=1263.4, P< 0.000 for Hypothesis 2) all the hypotheses were statistically significant at 5% level indicating  that QFD compliance is very keen  factor to customers’ loyalty and patronage. Also, QFD variables have positive impact on customer patronage in the selected insurance companies. Therefore, the authors recommended that, flexibility in payment structure, fulfillment of claim and voice of customer satisfaction, should be reviewed from time to time by the management as major factors that will increase the rate of insurance patronage in Nigeria and this will ensure companies survival in time face of economic depression and build golden image in the faces of potential customers.

Keywords: Quality function Deployment, customers patronage, customers loyalty and Voice of customer satisfaction.