Impact of Social Media Marketing on Life Insurance Recommendations: The Role of Consumer Perception.

Abstract

The study aims to investigate the role of consumer perception in the impact of social media marketing on the intention to recommend life insurance. By determining the relationship among variables, the researcher can help insurance companies improve profitability, attract new customers, and increase insurance penetration in Sri Lanka. The study analyzed the impact of social media marketing on the intention to recommend and the mediating role of consumer perception using various statistical techniques. The researcher used SmartPLS software for structural equation modeling to achieve the best results. The existing life insurance customers in the Colombo District are the study’s target population. Data was collected from 390 life insurance customers in the Colombo District, Sri Lanka, using a structured questionnaire. Results revealed that social media marketing (SMM) has a positive and significant impact on customer perception, and customer perception has a positive and significant impact on the intention to recommend. Insurance providers must focus on technology adoption and social media marketing strategies to retain and attract new customers. The research was conducted in the Colombo District; thus, future researchers are encouraged to evaluate the results from every district. Insurance companies should focus on effective social media marketing strategies that positively shape consumer perception to drive the intention to recommend and ultimately increase customer acquisition and retention.