Evaluation of the Role of Electronic Word-of-Mouth Marketing in the Development of Insurance Services Using the Structural Equation Modeling Approach

Abstract

The aim of the present study is to evaluate the role of electronic word-of-mouth (eWOM) marketing in the development of insurance services using a structural equation modeling approach. Data collection in this study was conducted using both library research and field methods. The data collection tool in the quantitative section was a researcher-made questionnaire, which was developed based on the results of the qualitative section and distributed among 210 participants using non-probability random sampling. Qualitative data analysis was performed using inductive qualitative content analysis, while quantitative data analysis involved descriptive statistics. To examine the research questions, inferential statistics and the partial least squares (PLS) method were employed using SPSS and SMARTPLS software. The results of the study indicate that eWOM marketing, customer loyalty, and customer engagement are key factors in improving business performance. On the other hand, ease of use and infrastructure did not have a significant impact on the outcomes. These findings can assist companies in designing effective strategies for attracting and retaining customers and enhancing profitability. Additionally, the results of this study help insurance companies leverage eWOM as a powerful tool for customer acquisition and retention. By strengthening trust, transparency, and positive interactions with customers, insurance companies can improve their market position and achieve long-term success.