From a search in literature, the study discovers researches in insurance industry and focused on the relationship between the effectiveness of leadership in dealing insurance transaction and ensuring strong customer satisfaction. The research on the effective's leadership may affect customer satisfaction is considered important due to the increase the number of insurance company in worldwide. Leadership practices in dealing insurance transaction towards customers is the key point for them as competitor in attracting customer to purchase the product offer by each insurance company nowadays. Generally, insurance company in the worldwide selling and offering the same insurance product. That is why, necessary for them to differentiate leadership's strategy on how to handling insurance transaction by attracting customer and develop customer satisfaction in order to make it different with others. Since both dependent and independent variables is too significant, the research intends to study the effectiveness of leadership in dealing insurance transaction ensuring customer satisfaction. The importance of effective's leadership in organization has received a lot of attention by researcher to construct this study. In other words, a clearer understanding about the knowledge of effective's leadership and developing customer satisfaction may attract and guide organization to have the best practice on it in order to build strong customer satisfaction towards the product offering, to face the price war issue and to avoid stiff competition among them. The findings would help to better leadership's practices in organization focusing on insurance industry in dealing insurance transaction with customers in order to ensure strong customer satisfaction.
3.1 Effective Leadership
Effectiveness of leadership can be define as the group in organizations achieves it goals, developing teamwork that group members work well together and the group can adapt well to internal and external changes. In any business, effective leadership is important for industry to achieve success in running business. As the insurance industry, insurance leaders need to be adaptable and visionary toward the environment. Strong leadership can guide industry toward success, profitability and employee's job satisfaction. Effective leadership helps to develop happy employees. Happy employees should be with his/her job. It definitely shows the interest and positive attitude in handling job especially in handling insurance transaction with customers. Then, it will increase profitability when customers are attracting towards the services offering. It leads to the customer satisfaction because happy employees will treat their customer with best effort. It suddenly exceeds the expectation's level of customer before purchase the product or service.
Gamos logo and Ile Seo, (2009), stated that Transformational leadership affects customer satisfaction and they found out that these two factors have a huge impact on each other.
3.2 Customer Satisfaction
Customer is people who are making payment, in return either get the product or have a service. Each customer has certainly seen something in provided service or goods which make him/her come to the seller. Here, any kind of encounter between the seller and the customer is considered as an experience for the customer. If this experience is good, it will make the customer come back, otherwise, the customer will not come back again. This is a reality that the seller is the one who is eliminated if the customers spend his/her capital elsewhere.
Customer satisfaction defined as consumer evaluation after use the product or services offer by the company, generally it will compare with earlier consumer's expectations. Customer satisfaction can also be considered as a response to expectations and final results after consumption (Tese and Wilton 1988) or an emotional reaction which is caused by purchasing with prechosen standards (Hall Steer, Hartmann and skimmer, 1994). Customer satisfaction is a marketing term that determines how products or services supplied by a company meet or surpass a customer's expectation. Customer satisfaction is important because it helps marketers and business improving their business operation.
Customer satisfaction is important because it became as a key to increase profitability of insurance company. Satisfied customer will repurchase the product or services again as long as they need it.
In summary, this paper explains the relationship between the effectiveness of leadership in dealing insurance transaction with customer satisfaction. This study gives benefits for insurance company to do a few revision on the leadership skill that have been practicing in the organization as a key competence to compete each order in handling insurance transaction while achieving strong customer satisfaction. It exposed them the real competition in handling insurance transaction on how leadership play a role to manage it in attraction the customers towards the insurance products. After the organization in insurance company realize the importance of leadership in making customer attraction towards the product, they can figure out the alternative in ensuring customer satisfaction while boost up the sales of insurance products. In addition, insurance company can plan and come out new strategies to deal with people in insurance transaction. They can launch some new products to fulfil the public's need based on the customer's demand.
...(download the rest of the essay above)