The objective of the present study is to compare and analyze the
service quality perceptions of customers about the public sector
and private sector insurance companies. The study also seeks to
find the relevant dimensions of the SERVQUAL/SERVPERF scale in
insurance industry in Indian context. Exploratory factor analysis
was used. As a result five factors were extracted using the methods
of principal component analysis. The five factors extracted in case
of public sector insurance company explained 78.34% of the
variance; where as five factors extracted in case of private sector
insurance company explained 77.07% of the variance. Regression
results show that except tangibility dimension, beta coefficient
values for other four dimensions of service quality namely;
empathy, reliability, assurance, responsiveness are higher in case
of public sector insurance companies.Results of t-test led to the
inference that there is significant difference in the service
quality perceptions of public and private sector insurance
companies
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