The Impact of Advertising on Customer Patronage in the Insurance Sector

Abstract

This study examined the impact of advertisement on customer patronage in the Nigerian insurance. industry. It was guided by four research questions and one hypothesis. Questionnaire was used for data collection and 400 respondents participated in the study. Descriptive statistics such as frequencies, percentage and tables were used to present the data collected; while the hypothesis was tested using the Chi-square at 0.05 level of significance. The result of the study revealed the following as various advertising options in Nigeria: paid search advertising, social media advertising, outdoor advertising, broadcast advertising, print advertising and native advertising; arranged in the order of frequency of use. The result of this study further revealed that advertisement, to a large extent attracts new clients and aids in the reviving of dormant clients as well as influence demand in the insurance sector. Based on these findings, it was concluded that advertisement has significant impact on customer patronage in the insurance sector and it was recommended, among other things that management of insurance companies must advertise their products benefits to encourage patronage from potential customers as well as existing and dormant customers. This is because advertisement has proven to be a major means by which potential customers learn about the existence of companies and their service offerings; new and existing customers get acquainted with the company and their offerings and dormant customers get re engage to the company.