The Effect of Employee Brand Activism on Customer Purchasing Behaviour and Customer Loyalty: A Case Study of the Life Insurance Sector in Ghana

Abstract

Insurance is a mechanism by which an individual or organization can exchange its uncertainty for greater certainty. It is among the most complex financial products that many consumers purchase in their lifetime (Tennyson, 2011, Tania Driver, 2018, Nesleha & Urbanovsky, 2016, McCormack et al., 2009). An employee in this sector is part of the product; in many cases, they are the product. Their know-how, skills, and experience are what the customers are buying, and the various methods of interaction with the employees can determine their success or failure. The involvement between the customers and a life insurance company employee frequently leads to a conversation about taking out a new policy or supplementing an existing one. The study presents an analysis of the effect of employee brand activism on customer purchasing behavior and customer loyalty in the life insurance sector in Ghana. The study delves into two major theories: Social Identity Theory and Planned Behaviour Theory. Through a mixed method approach, this study seeks to address the research objectives. Specifically, to identify the factors that influence the effectiveness of employees' brand activism in shaping customer purchasing behavior and customer loyalty, analyze the relationship between employee brand activism, customer purchasing behavior, and customer loyalty, and assess the impact of employee brand activism on customer purchasing behavior and customer loyalty. The study utilized interviews and questionnaires to capture insights from customers and employees of Starlife Assurance Company Limited. One employee was interviewed through purposive sampling, and 150 customers participated in the survey. Thematic analysis was employed for interview data, while means and standard deviation were used for questionnaire responses. The study findings show that employee brand activism significantly influences customer purchase behavior but has a moderate effect on loyalty. The main drivers would be related to brand value congruence, authenticity of communication, and participation in social causes. Activism was very strongly positive in relation to purchasing behavior, while it affected loyalty moderately.