Nigeria Journal of Risk and Insurance Vol. 11 No.

1 (2021)

THE IMPACT OF ADVERTISING ON CUSTOMER PATRONAGE IN THE

INSURANCE SECTOR

Olowokudejo Folake Feyisayo (Ph.D.)

[email protected]
Department of Actuarial Science and Insurance, Faculty of Management Sciences,
University of Lagos

Abstract
This study examined the impact of advertisement on customer patronage in the Nigerian insurance.
industry. It was guided by four research questions and one hypothesis. Questionnaire was used
for data collection and 400 respondents participated in the study. Descriptive statistics such as
frequencies, percentage and tables were used to present the data collected; while the hypothesis
was tested using the Chi-square at 0.05 level of significance. The result of the study revealed the
following as various advertising options in Nigeria: paid search advertising, social media
advertising, outdoor advertising, broadcast advertising, print advertising and native advertising;
arranged in the order of frequency of use. The result of this study further revealed that advertisement,
to a large extent attracts new clients and aids in the reviving of dormant clients as well as influence
demand in the insurance sector. Based on these findings, it was concluded that advertisement has
significant impact on customer patronage in the insurance sector and it was recommended, among
other things that management of insurance companies must advertise their products benefits to
encourage patronage from potential customers as well as existing and dormant customers. This is
because advertisement has proven to be a major means by which potential customers learn about
the existence of companies and their service offerings; new and existing customers get acquainted
with the company and their offerings and dormant customers get re engage to the company.
Keywords: advertising, customer patronage, insurance sector, Chi-square

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Introduction

The insurance industry, the world over has experienced remarkable growth. Concurrent with the

growth has been significant changes within the industry and although the future of insurance

industry in Nigeria appears bright, there still exists a myriad of problems resulting in low

consumption of insurance products (Enitilo, Ajayi & Famuagun, 2017). This problem seems to be

even more pronounced because of the low level of awareness among the populace which is a major

reason why insurance has remained one of the least purchased items within the financial market.

According to Ackah and Owusu (2012), people have very low access (about 4.1%) to insurance

and unfortunately, the insurance industry over the years have not fully employed the tools of

advertisement as a measure of deepening penetration and increasing patronage; rather, they have

relied on regulators to ensure their survival (Daniel,2015). This has led to sub-optimal performance

and many companies struggle to deliver on customer expectations (Olowokudejo & Adeleke,

2011), especially in view of the generally negative attitude of Nigerians towards insurance (Yusuf,

Gbadamosi & Hamadu, 2009). A good promotional programme is therefore needed to reach the

customer and also to motivate them for more understanding in order to increase patronage.

The very essence of being in business, by any business entity, including insurance companies is to

make profits. In order to remain in business, customer patronage is important for the organization

must generate enough sales from her products/services to cover operating costs and realize

reasonable profits. Advertising plays a crucial role for any business to boost its performance

because it is a powerful promotional tool for attracting customers to the product. Advertising is an

attractive way to communicate and convey the message to the audience. It is a dominant and

leading weapon in all marketing tools due to its positive impact on customers’ patronage (Adeolu,

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Taiwo & Matthew, 2005) but advertising today is no longer a mere tool of marketing; it is a

business, a creative process, a social phenomenon, and a fundamental ingredient of a free

enterprise system.

According to Kotler and Armstrong (2008), advertising can be traced back to the very beginnings

of recorded history. It is a part of our everyday life. It is all around us. We cannot escape looking

at it or listening to it. Even if we are not consciously looking at it or listening to it, the message of

advertising reaches and influences us. It is often recorded somewhere at the back of our minds and

is recalled when we are buying something or looking for a particular service (Zhao, Butt, Murad,

Mirza & Abdulaziz, 2022) hence the choice of advertising medium, the advert message, and the

advert mode are critical ingredients of a successful advertising program in the insurance industry.

The general objective of this study is to examine the impact of advertising on customer patronage

in the insurance sector. Specifically, the study seeks to: Determine the various advertising options

in Nigeria; Determine the options that are more frequently used in the Insurance sector; Examine

the extent to which advertising attract new clients in the insurance sector and examine the impact

of the extent to which advertising revive dormant clients in the insurance sector. To achieve these

objectives, the following research questions are asked: What are the various advertising options in

Nigeria?; Which of these options are more frequently used in the insurance sector?; To what extent

does advertising attract new clients in the insurance sector?; To what extent does advertising revive

dormant clients in the insurance sector?

And the following Research hypothesis is postulated: Advertising has no significant impact on

customer patronage in the Insurance sector.

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Against this background, the present study is undertaken to examine the impact of advertising on

customer patronage in the insurance sector. This paper is divided into 6 sections, this introduction,

the literature review, the methodology, discussion of findings followed by the conclusions,

recommendations.

Literature Review

Companies devote a considerable amount of money to achieve the best results from their

advertisements as the pressure on companies to advertise as well as the pressure on advertising

companies to increase the effectiveness and reach of advertisement is growing every day.

Advertising is very important in our society. According to Robinson, cited in Ashkan (2016),

advertising is a prominent feature of modern business operations. It is a viable tool to place a

product at the top of the mind of potential customers as one can encounter advertising messages,

while watching TV, reading magazines, listening to the radio, surfing the internet, or even simply

while walking down the street, as advertisement has a stimulating influence on purchasing

behavior of the customer. This tradition of making advertisements available at every turn is further

fueled by the urge of marketers to reach a large number of people so that their product may receive

optimum exposure in order to create brand loyalty, deter entry of new companies and consequently

increase sales revenue and profits of the organization (Ashkan,2016)

Idris (2018) adopted the Ajzen’s theory of planned behavior (TPB) to describe northern Nigerians’

acceptance and patronage of insurance services and found that religious values, subjective norms

and behavioral control factors do not account for poor acceptability and patronage rather poor

marketing strategies plays an important role in the persistence of such negative occurrence, as such

the role of advertising cannot be overemphasized. Advertising is an informative or persuasive

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message carried by a non-personal medium and paid for by an identified sponsor used to persuade

an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or

services. Corporate advertising can tell a story about a company as a whole, large organizations

may need to use corporate ads to simplify their image in the minds of key constituents and to show

what unifies the company, despite the geographical spread and variety of its businesses, to

establish the brand, build awareness and give the brand a larger-than life image (Adeneye, 2017).

Throughout the range of modern businesses, advertising can play an essential role in the success

or failure of a given enterprise. The ability to reach audiences, convey messages, and create an

overall image for an individual or business are powerful tools, and some companies may even

spend most of their budgets on advertising efforts in an attempt to use these tools to their fullest

advantage.

Customers have become increasingly demanding and competitive activities have increased

(Fagbemi & Olowokudejo, 2014) also insurance services are homogenous and the boundaries

between the offerings of different service providers are becoming increasingly blurred (Fagbemi

& Olowokudejo, 2016) as only a very slight difference exists in the services provided by the major

players in the insurance industry. A great deal of an agent or firm's success depends on the skill

with which prospects are approached and handled (Olowokudejo & Adeleke, 2011), and the very

best insurance agents in operation know that the creation of positive impressions and the

establishment of credibility are essential ingredients for success. On their own, agents must use

various methods to achieve these goals of making the right impression and maintaining trust

throughout the sales and consultation process. But this requires personal attention, and can only

be delivered to a limited number of prospects at any given time. Insurance industry advertising,

then, addresses the need for creating positive impressions and establishing credibility in the

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absence of the actual agent (Shahram, Narges & Ensieh, 2013). Owolabi and Magbagbeola (2011)

examined the impact of advertising on the sales of insurance products in sub-Saharan Africa and

found that the advertising of insurance products lead to more sales. Based on the results obtained

from the correlation coefficient performed on the sales figures and advertising expenditures

obtained from the insurance companies, it was inferred that advertising expenditures and sales are

positively correlated. This means an increase in advertising expenditure will lead to an increase in

sales. It was also discovered that out of the various advertising media employed by the company,

posters and bill boards offered the highest degree of exposure for the products. Consumers also

attested to the fact that the advertisement of insurance elicits a feeling of warmth and cheerfulness

towards the products, hence encouraging them to consume more of the products (Owolabi &

Magbagbeola, 2011).

Insurance industry advertising accomplishes the task of reaching out to those prospective clients

who would otherwise be left to approach insurance agents and brokers on their own, unprompted.

Able to present solutions to those who may have no other method of arriving at a sound answer

for their insurance questions, such advertising serves as the broad public face of a company and is

the first point of contact that will be established between a client and the agency from which a

policy or package is purchased. insurance industry advertising has its roots in the establishment of

a relationship between clients and companies. Far from being a simple gimmick to increase sales,

it sets the stage for future interactions and aids the course of contract development (Shahram et al.,

2013). This function is not only an essential one; it is also able, in many cases, to help catalyze the

process of selling insurance. While agents and firms without extensive advertising, or any

advertising at all, must often rely on performing each step of the trust building process manually,

truly excellent insurance advertising campaigns can make this process move much more quickly,

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allowing for a higher volume of more successful sales. Great insurance industry advertising has a

great deal to do with establishing an image and distributing it to prospective clients, but it is also

a way to streamline insurance sales itself, providing a compounded benefit that makes working in

the modern market without considerable advertising efforts somewhat difficult (Fofie, 2016).

Adeneye (2017) posit that there was significant relationship between advertisement and

performance of insurance industry in term of sale and investment in the industry. Aduloju,

Odugbesan and Oke (2009) found that advertising had effects on sales volume and improved

public image. However, the choice of advertising medium, the message, and the format are critical

ingredients of a successful advertising program in the insurance industry.

Embracing the necessity of advertising and following through with the creation of high quality,

carefully-prepared campaigns is a great way for modern insurance agents and companies to expand

their business and take advantage of the powerful possibilities in forming and conveying targeted

messages about the benefits and wisdom of retaining insurance. Enitilo, Ajayi and Famuagun

(2017) evaluated the influence of promotional activities on consumers’ patronage of insurance

business in Ado-Ekiti metropolis, Nigeria. The result indicated that though personal selling, sales

promotion and direct marketing have significant impact on consumer patronages, there is a strong

and positive relationship between advertising and consumer patronages. The research concluded

that knowing how to use this information by prospective marketing manager, insurance brokers,

insurance agents and other insurance practitioners in the effectiveness of insurance operations

depends on the understanding of some key driving force such as culture, trust, information

technology, publicity (timing, duration and cost) and customer relationship strategy. Delafrooz,

Zendehdel and Fathipoor (2017) found that social media usage has a chain relation in the supply

channel of Iran and Asia insurance companies and creation of this chain relation will make

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customers loyal to sale representatives of insurance companies and will improve representatives’

performance and brand sale of Iran and Asia insurance companies.

Social media landscape is fast changing due to the low cost of innovation. Many social media and

online marketing agencies actually are more innovative and ahead of the curve of social media for

marketing purposes. Two frameworks are relevant to this study trying to make sense of social

media landscape. One is the social graphics framework of Carlene Li and Jeremiah Owyang which

argued that instead of studying the demographic, geographic, or psychographic profiles of

customers, businesses need to develop social graphics to determine which websites the customers

visit, the customers' social behaviors online, the social information and people that customers rely

on and the potential customers' social influence. Another is the Social Feedback Loop which links

consumer purchase funnel with social media. The purchase funnel concept assume that customers

live in a vacuum and after a customer purchases and use the product, he will form opinions and

spread ‘word of mouth’ about the product. Some of the experience after purchase will be

materialized and posted online, which will loop back to other customers' purchase decision making

process. This social feedback cycle is driven mostly by word-of-mouth; the word-of-mouth is

further driven by actual use, trial, or sampling experience (Pan & Crotts,2012). However, all the

theories discussed above are hinged on the Nelson's theory of advertising. This theory believes

that advertisement among other things confer a level of ‘legitimacy’ and ‘quality’ on the

product/service being advertised. This is because consumers would rationally infer that companies

will only spend significantly on advertising of high-quality products since only high-quality brands

can guarantee a significant number of repeat purchases and as such generate the money spent on

advertising and the expected profit. As such the clientele base on insurance companies are

increased and consequently the market share, sales and profit.

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Research Methodology

The study adopted a descriptive survey research design due to the nature of the study and available

data as the design permitted the collection of original data from a portion of the population to

examine the characteristics and opinions of the population.

The population of this study consists of 51 insurance companies operating in Nigeria as at

December, 2020. Using purposive sampling technique, ten (10) insurance companies with their

head offices in Lagos state, Nigeria were selected. The companies selected are AIICO Insurance

Plc.; Leadway Assurance Company; Custodian and allied insurance; Cornerstone Insurance Plc.;

AXA Mansard Insurance; African Alliance Insurance Plc.; Lasaco Assurance Plc.; FBN Insurance;

NEM Insurance; Sovereign Trust Insurance Plc. The choice of these companies was as a result of

their gross premium and market share capabilities as documented by the Nigeria Insurers

Association (2020); as well as the availability and accessibility to the company’s data. The sample

population was drawn from Lagos metropolis because Lagos state houses the largest number of

insurance companies within the West-African region. From this sampling frame, the purposive

sampling technique was used to select 20 members of staff as well as 20 customers from each

company, thereby selecting a total number of two hundred (200) staff and two hundred (200)

customers that make up the sample size of 400 respondents used in the study.

The data collection instrument for this research work is the questionnaire. Different questionnaires

were developed for staff and customers of the selected insurance companies. The questionnaires

comprised two sections: the first section sought information on the demographic data of the

respondents. The second section comprised items that are meant to elicit responses regarding the

variables that constitute the research questions formulated to guide the study. Given that most of

the item in the questionnaire are targeted at examining respondents’ perceptions of the study
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variables, the five-point Likert scale was used ranging from ‘strongly agree’, ‘agree’, ‘undecided’,’

disagree’ and ‘strongly disagree’.

Chi-square analysis was used to test the validity of the stated hypotheses at 0.05 levels of

significance. Collected raw data were analyzed with the aid of Statistical Package for Social

Sciences (SPSS) using frequency table and percentage. Chi-square was used to test the study

hypothesis.

Data Presentation and Analysis

A total of 458 questionnaires were distributed to both customers and employees of insurance

companies and 400 were retrieved and thus constituted the actual sample of the study. The data

was collated, analyzed and presented below:

Table 1: Respondents Age classified by gender

Gender Male Female Total

Age
F % F % F %
≤ 30 years 41 10.3 93 23.3 134 33.5
30≥ 40 years 56 14.1 82 20.6 138 34.5
40 ≥ 50 years 39 9.8 49 12.3 88 22
>50 years 23 5.8 19 4.8 42 10.5
Total 159 39.8 241 60.3 400 100
Source: Field survey, 2021 (f=frequency; %=percentage)

Table 1 above presents the age group of the respondents according to their gender. There are 159

(39.8%) male and 241 (60.3%) female out of which, 134 (33.5%) are less than 30 years of age,

138 (34.5%) are within the age range of 30 but less than 40 years, 88 (22%) were within the age

group 40 but less than 50 years and 42 (10.5%) are above 50 years and above. The sample is

representatives in terms of gender and age.

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Table 2: Respondents Educational qualification classified by Years of experience

Year of experience ≤5 years >5 ≤10 >10 ≤20 >20 years Total
years years
Educational
Qualification F % F % F % F % F %
OND/NCE 41 10.3 33 8.3 12 3.0 7 1.8 93 23.3
B.Sc./HND 77 19.3 92 23.0 39 9.8 11 2.8 219 54.8
MBA/MSC 26 6.5 14 3.5 23 5.8 1 0.3 64 16.0
Others 11 2.8 5 1.3 4 1.0 3 0.8 23 5.8
Total 156 39.0 144 36.0 78 19.5 22 5.5 400 100
Source: Field survey, 2021 (f=frequency; %=percentage)

Table 2 presents the respondents’ educational qualification which by the year of working

experience. As shown in the table above, 93 (23.3%) of the respondents had OND/NCE has the

highest educational qualification. Of this group, 42(10.3%) had worked in their respective

organizations for less than 5 years; 33(8.3%) had worked for 5 years but less than 10 years. In the

table 12 (3.0) had been working in their respective institutions for 10 years but less than 20 years

while 7(1.8%) had 20 years and above years of working experience. A total of 219 respondents

(54.8%) had B.Sc./HND which is the group with the highest number of participants while 77

(19.3%) with B.Sc./HND had less than 5 years; 92 (23.0%) with B.Sc./HND and its equivalent has

5 years but less than 10 years, etc. This shows that the data studied comprises individual with

different working experience and academic attainment.

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Research question 1: What are the various advertising options available to insurance

companies in Nigeria?

Table 3: Table showing respondents’ opinion of the various advertising options

STATEMENTS SA A D SD Total Percentage in
agreement (%)
Paid search advertising F 195 190 8 7 400 96.3
% 48.8 47.5 2.0 1.8 100
Outdoor advertising F 177 211 9 3 400 97.1
% 44.3 52.8 2.3 0.8 100
Broadcast advertising F 199 178 20 3 400 94.3
% 49.8 44.5 5.0 0.8 100
Print advertising F 179 201 12 8 400 95.1
% 47.8 50.3 3.0 2.0 100
Display advertising F 212 178 7 3 400 97.5
% 53.0 44.5 1.8 0.8 100
Native advertising F 199 178 20 3 400 93.3
% 49.8 44.5 5.0 0.8 100
Social media advertising F 178 201 1 20 400 94.8
% 44.5 50.3 0.3 5.0 100
Source: Field survey, 2021 (F=frequency; %=percentage)

Table 3 above presents the respondents’ opinion of the various advertising options in Nigeria. All

the items in the table receive a high rate of agreement with an average of more than 94%. The table

shows that the respondents identified the following as options used for advertisement: Paid search

advertising (96.3%); Outdoor advertising (97.1%); Broadcast advertising (94.3%); Print

advertising (95.1%); Display advertising (97.5%); Native advertising (93.3); Social media

advertising (94.8%). This result concludes that insurance companies in Nigeria use different

medium for advertisement.

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Research question 2: Which of these options are more frequently used in the insurance
sector?
Table 4: Respondents opinion about the frequency of use of the various advertisement
options available to the insurance sector
Statements SA A D SD Total Percentage Rank
agreement
(%)
Paid search advertising F 275 111 13 1 400 96.6 1st
% 68.8 27.8 3.3 0.3 100
Outdoor advertising F 170 216 5 9 400 96.5 2nd
% 42.5 54.0 1.3 2.4 100
Broadcast advertising F 117 267 4 12 400 96.0 4th
% 29.3 66.8 1.0 3.0 100
Print advertising F 262 121 7 10 400 95.8 5th
% 65.5 30.3 1.8 2.5 100
Social media advertising F 170 216 5 9 400 96.5 2nd
% 42.5 54.0 1.3 2.4 100
Native advertising F 162 216 13 9 400 94.5 6th
% 40.5 54.0 3.3 2.4 100
Source: Field survey, 2021 (F=frequency; %=percentage)

Table 4 above presents the ranking of the various advertisement options based on frequency of

use. As indicated in the table, insurance companies use paid search advertising more than every

other option (96.6%). Social media advertising and Outdoor advertising (96.5%) ranked second.

Broadcast advertising ranked third; print advertising ranked fourth with 95.4%.

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Research Question 3: To what extent does advertising attract new clients in the insurance
sector?
Table 5: Respondents opinion on the extent to which advertising attract new clients in the
insurance sector
Statements SA A D SD Total Percentage
agreement (%)
Advertising helps generate brand awareness F 169 211 17 3 400 95.0
and increase new client engagement % 42.3 52.8 4.3 0.8 100
Positive advertising techniques allow new F 266 118 5 11 400 96.0
clients to trust the company more easily. % 66.5 29.5 5.3 2.8 100
Advertising accelerates the regular F 192 179 21 8 400 92.8
acceptance of new products and lifts the % 48.0 44.8 5.3 2.0 100
level of acceptability of established products
Advertising motivates new clients to spend F 124 270 2 4 400 98.5
more by conveying useful information, % 31.0 67.5 0.5 1.0 100
about product and service choices
Source: Field survey, 2021 (F=frequency; %=percentage)

Table 5 presents the respondents’ opinion on the extent to which advertising attracts new clients

in the insurance sector. Respondents’ claim are as follows: Advertising helps generate brand

awareness and increase new client engagement (96%); Positive advertising techniques allow new

clients to trust the company more easily (95.0%); Advertising accelerates the regular acceptance

of new products and lift the level of acceptability of established products (92.8%); Advertising

motivates new clients to spend more by conveying useful information about product and service

choices (98%).

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Research Question 4: To what extent does advertising revive dormant clients in the
insurance sector?

Table 6: Table showing the respondents opinions on the extent to which advertising revive
dormant clients in the insurance sector
Statements SA A D SD Total Percentage
agreement (%)
Advertising encourages dormant F 162 216 13 9 400 94.5
customers to come back for a repurchase % 40.5 54.0 3.3 2.4 100
Advertising re-engages dormant clients F 117 267 4 12 400 96.0
and drives additional sales and site traffic. % 29.3 66.8 1.0 3.0 100
Advertising establishes emotional F 262 111 7 20 400 93.3
connections with dormant clients % 65.5 27.8 1.8 5.0 100
Advertising influences client needs and F 162 216 13 9 400 94.5
demand for a product % 40.5 54.0 3.3 2.4 100
Source: Field survey, 2021 (F=frequency; %=percentage)

Table 6 shows the respondents opinions on the extent to which advertising revives dormant clients

in the insurance sector. Advertising encourages dormant customers to make an initial purchase and

come back for a repurchase (94;5%) Advertising re-engages dormant clients with a company’s

program and also help drive additional sales and site traffic (96.0%); Advertising establishes

emotional connections with dormant clients (93.3%); Advertising influences prediction of client

needs and demand for a product (94.5%).

Test of hypothesis
Table 7: The Result of X2 on the impact of advertising and customer patronage
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 17.331a 15 .0218
Likelihood Ratio 16.670 15 .0304
Linear-by-Linear
.321 1 .0271
Association
N of Valid Cases 400
a. 18 cells (75.0%) have expected count less than 5. The minimum expected
count is 1.03.

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The hypothesis seeks to test whether advertisement has any impact on customer patronage of

insurance company in Nigeria. Using SPSS version 21, the analysis indicates that the P-value

(0.0218) is less than the level of significance (α = 0.05) as proposed in this study. Following the

rule, we reject the null hypothesis and concluded that advertising has significant impact on

customer patronage in the Insurance sector.

Discussion of Findings

Findings show that advertisement creates awareness which helps in reducing the obscurity of

insurance products. This implies that, awareness plays a significant role in influencing patronage

of insurance policy considering its stimulating influence on the purchasing behavior of the

customer. This result supports that of previous empirical studies such as Amaefula, Okezie and

Mejeha (2012); Yakubu, Buadu, Joy and Yeboah (2016); Daniel (2015) and Daninga and Qiao

(2014), who in their respective studies also found awareness as a driver of patronage of insurance

policy. People need to be aware of the different policies, its affordability, its benefits, etc. to

encourage and influence their buying decision. Social media has proven to be very useful in terms

of the reach, the spread and the low cost of reaching a large number of people thereby supporting

the finding of Yong and Zainal (2021).

This mammoth surge of advertisements is basically to fulfill the urge of marketers to reach out to

a large number of people so that their product may receive optimum exposure. In agreement with

Ashkan (2016); Ozga, (1999) and Sundarsan, (2007), advertisement creates a mass mode of

communication, creates brand loyalty, deters entry and consequently increases sales revenue and

profits of the organization thereby causing impact on the business cycle. Likewise, in agreement

with Bies, Bronnenberg and Gijsbrechts, (2021), findings also show that it also influences the

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perception of quality by creating an illusion of the product quality thereby encouraging potential

customers to shift loyalty from the brands they normally patronize to the brands that advertise.

Conclusion

Based on the results above, this study concluded that advertisement has significant impact on

consumer patronage of insurance sector. Result of the study revealed the following as various

advertising options in Nigeria: paid search advertising, social media advertising and outdoor

advertising, broadcast advertising, print advertising, and native advertising; arranged in the order

of frequency of use. Advertising motivates new clients to spend more by conveying useful

information about the product which helps in service choices; Advertising encourages dormant

customers to come back for a repurchase by re-engaging them. This drives additional sales and

site traffic.

Advertising helps generate brand awareness and increase new client engagement. Advertising

accelerates the regular acceptance of new products and lifts the level of acceptability of established

products. New clients also tend to trust the company more easily when exposed to good

advertisement. of the company

Advertising which adopts digital tools are unlocking new opportunities for insurers, since

consumers now use one or more digital channel at least once throughout their shopping journey.

The creation of value increases as companies restructure their processes and organization around

social engagement. Raising awareness of social tools and media is now giving way to engagement,

empowerment and accountability by once again putting individuals at the heart of the system.

Thus, organizations seek new ways to engage customers efficiently and effectively with

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personalized messages, and improve speed, service and consistency to raise satisfaction, using

digital tools to improve journeys. The result of this study has clearly shown that creating awareness

through various advertising media attract customers to the insurance sector.

Recommendations

Based on the objectives and outcomes of the study, management of insurance companies must

advertise their products benefits to encourage new patronage, encourage existing customers

as well as re engage dormant customers in the sector as this is a major means by which new

customers get acquainted with the company and their products and new products gets

introduced to new and existing clients of the company. Insurance companies should reel out

messages that can put them in the minds of the people so that they can have a good share of

their pockets while increasing the volume of transaction for higher profits as well as

increasing their market share within the industry.

The study also recommends that companies in the insurance sector should take advantage of

the increased digital awareness of existing and potential customers and adopt diverse digital

and online media to advertise, as the findings of this study shows that the two most preferred

advertising options in Nigeria are paid search advertising and social media advertising thus it

is obvious that online adverts are better appreciated and higher rated than the traditional medium

of advertisement. This will help improve customer knowledge, improve customer

satisfaction and attract more customers to the insurance market.

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