CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

1.2       Statement of the Problem

Even with the understanding that there is an abysmal culture of insurance in Nigeria, many insurance companies in a bid to achieve and sustain competitive advantage in the Nigerian insurance industry seem to be too busy chasing profitability even at the expense of their brand equity. They seem not to realize that competitiveness is not just about immediate rewards but certainly the impression that people and businesses hold about a given service or brand owing to the trust that they repose in it.

Customer, analysts, employees, institutions or general public decide when a company deserves their regard, association and trust depending on its service delivery towards the market and the society, and this service delivery is expected to shape the performance of the corporate entity be it an insurance company or any other form of business.

Various firms aim to achieve higher customer loyalty, trust, associated increased sales and reduced operating costs which are all benefits of brand equity. This can be achieved through truthful awareness creation or brand awareness, brand association, ethics, goodwill and having a history of excellent service delivery to various stakeholder groups thereby increasing the competitive advantage of an insurance company.

In the advanced insurance business clime the management of corporate assets like brand, identity and reputation are integrated into the managerial tactical tools to strengthen not just competitive advantage but to command impromptu demand. But in the developing countries, particularly in Nigeria the significance of corporate branding seem not to be acknowledged by the insurance practitioners; a reason why many feel that the poor performance of the insurance industry in Nigeria may not be unconnected to corporate brand equity. Hence, this research work seeks to explore the effect of brand equity measurements on service delivery in selected insurance companies in Nigeria.

1.3       Objectives of the Study

            The main objective of the study is to find out the effect of brand equity measurements on service delivery in insurance companies in Nigeria. Specific objectives are;

a)                  To examine if there is a significant relationship between brand trust and demand for insurance companies in Nigeria.

b)                  To find out the influence of brand awareness on financial performance of insurance firms.

c)                  To investigate the effect of brand association on service delivery in insurance companies in Nigeria

d)                 To explore the relationship between brand management and insurance companies profitability.

1.4              Research Questions

The study was guided by the following research questions;

1.                  Is there a significant relationship between brand trust and demand for insurance companies in Nigeria?

2.                  What is the influence of brand awareness on financial performance of insurance firms?

3.                  To what extent does brand association affect service delivery in insurance companies in Nigeria?

4.5    Research Hypotheses

The researcher intends to test the following hypotheses;

Hypothesis One:

Ho:      There is no significant relationship between brand trust and demand for insurance companies in Nigeria.

Hi:       There is a significant relationship between brand trust and demand for insurance companies in Nigeria.

Hypothesis Two:

Ho:      Brand awareness is not related to financial performance of insurance firms

Hi:       Brand awareness is related to financial performance of insurance firms

Hypothesis Three:

Ho:      There is no significant relationship between brand association and service   delivery in       insurance companies in Nigeria

Hi:       There is a significant relationship between brand association and service     delivery in       insurance companies in Nigeria.