The effectiveness of brand experience as a differentiator in the South African insurance industry

Abstract

Purpose: This study investigates the effectiveness of brand experience as a differentiator in the South African short-term insurance industry. Design/Methodology/Data Collection: This paper reviewed available literature in the fields of brand experience, brand differentiation, brand distinctiveness as well as the South African short-term insurance industry. A quantitative approach was used in order to prove the effectiveness of brand experience as a differentiator. The data was collected through a snowball sample using the Qualtrics online platform with a total of 101 responses received. Structural equation modelling was used to analyse the relationship between the variables identified in the study. Key findings:  Brand distinctiveness and brand personality have a positive effect on brand experience.  A decrease in brand differentiation however has a high likelihood of resulting in an increase in brand experience. The same applies the other way round.  A combination of brand personality, education, employment status and consequences of brand experience affect brand distinctiveness positively. Implications: A highly competitive market as well as changing customer demands have resulted in marketers being challenged to develop strategies that will enable brands to connect both rationally and emotionally with their customers. Brand experience is crucial in achieving this. Research Limitations: The study only focussed on short-term insurance policy holders based in Johannesburg and excluded the rest of the country. Further research could consider looking at the rest of the country