KNOWLEDGE MANAGEMENT IN THE PROCESS OF IMPROVING THE QUALITY OF INSURANCE SERVICES – THEORETICAL APPROACH (FIRST PART)

Jarosław Wenancjusz Przybytniowski Ph.D

Institute of Management

The Jan Kochanowski University in Kielce,

Uniwersytecka 21, 25-406 Kielce, Poland,

email: j.w.przybytniowski@wp.pl; ORCID: 0000-0001-6164-2953

Łukasz Wróbel Ph.D

Dean of the Branch of the Social Academy of Sciences in Kielce,

Kielce Business Center,

Al. Solidarności 34, 25-323 Kielce, 5th floor, room 505, Poland,

e-mail: lukaszwrobel.ilza@gmail.com; ORCID: 0000-0002-5715-6239

Abstract

The problem of knowledge and its role in the process of developing customer awareness is becoming a key subject of interest among the representatives of various academic circles. This problem is reflected in the increasing number of publications analysing various approaches to the issue of knowledge, as well as  in the number of interpretations of its definitions. Creating broad fundamentals of knowledge, i.e., the resources essential to increase competences and productivity should be the object of special care in today’s society. The essence of conscious quest for of knowledge results from appropriate development of education and its correct practical application, which is connected with the quality of services provided. This approach is influenced by the existence of interrelation between the level of knowledge acquired in a given area of activity and the development of customer awareness at each level of its realisation.

The primary aim of this paper is to study and thoroughly analyse the assessment of customer satisfaction with the provided insurance service quality using the Servqual method. Based on the above aim, the Authors adopted the thesis that knowledge and, what follows, the awareness of the knowledge possessed, are important elements mutually influencing the increase in service quality provided in the insurance sector. In the article the Authors used the knowledge in the literature and conducted the analysis of statistical data on a selected group of respondents in the area of England (UK) and Poland in the years 2022-2023.

The article is a continuation of research related to improving the quality of voluntary insurance service, presented in publications [Przybytniowski, 2010-2023].

Key words: knowledge, customer awareness, Insurance service quality

Introduction

This first part of the article presents some important issues of the problems of customer knowledge and awareness, which is connected with service quality provision. Currently, knowledge is becoming a strategic company resource, the awareness of which, gained, created and shared by means of various methods, develops proper employee behaviours and, thus, develops quality-oriented processes using new technological solutions [Ahmed; Vveinhardt; Štreimikienė; Ashraf, Channar, 2017]. In the literature, different approaches to the issue of knowledge result from its specificity connected with the skills needed to use it properly the moment the problem arises. To a large extent the problem is determined by the process of awareness [Przybytniowski, 2019, pp. 105-110; 2022, pp, 71-136; 2023, pp. 57-108] and, consequently, systematic acquisition of the elements of knowledge in the learning processes [Choo, Linderman, Schroeder, 2007, p. 918] and, also, its constant updating. The development of knowledge awareness among customers has an impact not only on the ability to use and shape it properly, but to a large extent contributes to the improvement of service quality provision. Service quality is one of the fundamental guarantees of implementing positive solutions which fosters appropriate relations with customers [Brandt, 1987, pp. 61-65; Kant, Jaiswal, 2017, pp. 411-430; Boonlertvanich, 2019, pp. 278-302]. Satisfaction with the quality of provided services contributes to the growth in customer loyalty [Alnaser, Abd Ghani, Rahi, 2018, pp. 63-72], by fulfilling their expectations, which improves the image of an organisation. While competing for the customer, the effective use of the intellectual potential improves the value of the service offer. The degree of conscious use of knowledge in quality processes has a considerable impact on achieving a high competitive position of the company [Porter, 1990], thus, contributing to the acquisition of trust among customers. This process needs constant improvement, learning about the changing needs and requirements of customers, as well as conducting current insurance market analyses [Anand, Ward, Tatikonda, Schilling, 2009, pp. 444-461; Przybytniowski, 2019, pp. 105-110; 2022, pp, 71-136; 2023, pp. 57-108].

The aim of this paper is to study and analyse the assessment of customer satisfaction with the quality of services provided in the insurance sector, using the Servqual method. The structure of the paper is based on the thesis that knowledge and, consequently, the awareness of the possessed knowledge are the elements which significantly influence the processes of quality service provision. The article uses the knowledge contained in the subject literature.

Knowledge as the growth factor of insurance service quality

Knowledge is the basic source of proper management and administration of organisation’s resources and the development of their value. Human civilisation of based on knowledge, and every person should participate actively in its development, creation and proper transfer, which generates the ability to develop the awareness of its proper use [Choo, Linderman, Schroeder, 2007, p. 918]. Creating the broad fundamentals of knowledge, i.e., the resource essential for the scientific discovery of  thinking models (consciousness) or highly abstract concepts, is becoming the basic object of making rational strategic decisions in a company, and is an important source of development of key competencies in the market of services. Concentratiopn on narrow fundamentals of knowledge has its application in the areas of dynamically developing economic reality [Peinado, Graeml, Vianna, 2018, pp. 373-389, Brandi, 2020, p. 512], which builds up a permanent competitive advantage [Porter, 1990; Bartnicki, 2000, s. 13-20] in the service sector, maintained in a long time horizon. Contrary to the concentration, knowledge diversification aims at multiplying a wide range of skills to use it in the future. It enables the organisation to avoid the negative consequences of “aging” and, hence, quick reaction to uncertainty and changes undergoing in the company environment [Przybytniowski, 2019, pp. 105-110]. This important contribution of academic circles into defining the knowledge factor has become the basis for multidisciplinary academic analyses from various research perspectives. How complex and ambiguous the concept of knowledge is, becomes clear as there are a number of definitions and synthetic presentations included in the Polish literature (Table 1).

Table 1. Review of selected definitions of knowledge in the Polish literature

Source: based on the review of the existing literature

The above definitions create a vision of the outlook of knowledge from the point of view of information possessed and the ability to generate it in a human mind. The Authors pay particular attention to the necessity of considering the knowledge factor in the reality surrounding us. The level of capabilities developed by an individual contributes to the growth of the company image quality, thus allowing for solving problems, developing proper attitudes/behaviour, and winning the competitive position in its environment. The above deliberations on knowledge are to be continued by presenting the definitions adopted by academics in the foreign literature (Table 2). Individual persons having at their disposal a certain degree of knowledge in their actions, make conscious and rational decisions, which enables them to achieve success.

Table 2. The review of selected definitions of knowledge in the English literature

Source: Based on the review of the existing literature

To sum up, according to the Authors, knowledge is a common concept. It includes in itself important attributes which are crucial aspects of social life. It has cognitive and practical value related to the phenomena surrounding us, viewed in terms of information and set in a proper context, which enables a human being to act efficiently and effectively by continuous improvement. Moreover, the general expression of perfectness becomes one of the elements of the productive use of knowledge and supply of unique values, whose essence is the level and the course of the process of insurance service quality.

1. Insurance service quality in customer awareness development

The importance of customer rights in the modern market results from adequate knowledge resources, which is reflected in the quality of service provision [Przybytniowski, 2022, pp, 71-136; 2023, pp. 57-108; Greco P., 2022, p. ]. This statement is determined by a high degree of customer satisfaction with the services of an organisation, which contributes to the introduction of important changes in quality improvement [Labarere et al., 2001, pp. 99-108; De Man et al., 2002, pp. 1109-1117; Alrubaiee, Alkaa’ida, 2011, p. 103]. The quality of service provision depends largely on several aspects:

1. Existing legal regulations regulating the analysed problems.
2. Transparency of procedures connected with the key skills of customers using the services.
3. Competences of the staff entering into direct contact with customers.

One of the conditions of positive changes in the sphere of service quality is making any changes and pursuing solutions which support building positive relations with customers while fulfilling their needs. Quality in the process of customer service is defined as a set of features characteristic for the goods or services during their acquisition, which contribute to meeting the needs of customers [Wolniak, Skotnicka-Zasadzień, 2012; Ul Hadi, Aslam, Gulzar, 2019, pp. 2-17]. The problem of quality in relation to a customer is considered in three dimensions [compare Zeithaml, Berry, Parasuraman, 1988, pp. 35-48; Parasuraman, Berry, Zeithaml, 1991, p. 431]:

1. Quality of basic product or service.
2. Technical service during the sales transaction.
3. Extended service.

The first two elements refer only to the product and the technical side of the transaction, whereas the third element  (extended service) refers to the direct contact with a customer. A similar approach is presented by K. Mazurek- Łopacińska [1997], where quality is considered in two levels. The first level refers to technical requirements of a product, while the second level includes the development of quality in all the stages of contacts with a customer. Hence, the important role is played by communication and broadly understood customer service. We can assume that product quality is connected with the element of service and communication, which is linked with the customer  having adequate knowledge and awareness accompanying it. Customer awareness is closely connected with the element of knowledge possessed. This factor has an impact on making rational choices by a customer at the moment of buying a service, as well as creating a positive image of an organisation. As the research by pollster TNS OBOP shows, the majority of Poles consider themselves conscious market participants, because they are able to assess the quality of products and take rational decisions about the purchase [http://naukawpolsce.pap.pl/aktualnosci/news,67893,rosnie-swiadomosc-konsumencka.html retrieved: 01.11.2023]. Building consumer awareness is a long-term process, and its most effective tool is knowledge and education. Consumers equipped with knowledge are ready to pursue their needs and introduce conscious changes into the quality of offered services. Being aware enables to optimise service utility for the customer, and also offers an opportunity for an organisation to efficiently distinguish itself from others, which is connected with high prestige.

Conclusion

The research conducted lets form the following conclusions:

1. The level of insurance service quality is determined by certain factors which are interconnected and function simultaneously.
2. Customer knowledge of services allows for an appropriate selection of the service to be purchased, thus resulting in deeper awareness of their expectation fulfilment.
3. The development of the service sector and the potential of entities operating in the service market are becoming a key area of knowledge-based economy, which results in the growing awareness of service buyers and, thus, in rational decision-making in the process of service provision at the proper level of knowledge possessed.

Bibliography

Ahmed R.R., Vveinhardt J., Štreimikienė D., Ashraf M., Channar Z.A. (2017), Modified Servqual Model and Effects of Customer Attitude and Technology on Customer Satisfaction in Banking Industry: Mediation, Moderation and Conditional Process Analysis, Journal of Business Economics and Management, 18(5).

Alnaser F.M.I., Abd Ghani M., Rahi S. (2018), Service quality in Islamic banks: the role of PAKSERV model, customer satisfaction and customer loyalty, Accounting, 4(2).

Alrubaiee L., Feras Alkaa’ida F. (2011), The Mediating Effect of Patient Sat- isfaction in the Patients’ Perceptions of Healthcare Quality – Patient Trust Relationship, International Journal of Marketing Studies, 3(1).

Brandi V., (2020), Conoscenza, scienza e filosofia. Profili di scienziati e filosofi della scienza da Talete alla fisica contemporanea, Petite Plaisance.

Boonlertvanich K. (2019), Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status, International Journal of Bank Marketing, 37(1).

Brandt R.D. (1987), A procedure for identifying value-enhancing service components using customer satisfaction survey data, [in:] Surprenant C. (Ed.), Add Value to Your Service, Chicago: American Marketing Association.

Choo A.S., Linderman K.W., Schroeder R.G. (2007), Method and context perspectives on learning and knowledge creation in quality management, Journal of Operations Management, 25.

De Man S., Gemmel P., Vlerick P., Van Rijk P., Dierckx R. (2002), Patients’ and personnel’s perceptions of service quality and patient satisfaction in nuclear medicine, European Journal of Nuclear Medicine and Molecular Imaging, 29(9).

Greco P., (2022), Per un’unica conoscenza, Padova University Press.

http://naukawpolsce.pap.pl/aktualnosci/news,67893,rosnie-swiadomosc-konsumencka.html.

Kant R., Jaiswal D. (2017), The impact of perceived service quality dimensions on customer satisfaction, „International Journal of Bank Marketing, 35(3).

Labarere J., Francois P., Auquier P., Robert C., Fourny M. (2001), Development of a French inpatient satisfaction questionnaire, International Journal for Quality in Health Care, 13(2).

Mazurek-Łopacińska K. (1997), Zachowania nabywców jako podstawa strategii marketingowej, Wydawnictwo akademii Ekonomicznej im. Oskara Langego we Wrocławiu, Wrocław.

Parasuraman A., Zeithaml V.A., Berry L.L. (1991), Delivering Quality Service. Balancing Customer Perceptions and Expectations, New York: The Free Press.

Porter M E. (1990), The Competitive Advantage of Nations, London: MacMillan.

Przybytniowski J.W. (2019), Metody badania jakości usług w procesie zarządzania rynkiem ubezpieczeń majątkowych, Wydawnictwo Uniwersytetu Jana Kochanowskiegow Kielcach, Kielce.

Przybytniowski J.W. (2022), Konkurencyjność rynku dobrowolnych ubezpieczeń majątkowych jednostkowych w aspekcie doskonalenia jakości usług. Ujęcie teoretyczne i praktyczne, Uniwersytet Jana Kochanowskiego w Kielcach, Kielce.

Przybytniowski J.W. (2023), Voluntary Insurance in the Process of Service Quality Improvement, Wydawnictwo RYS, Poznań.

Ul Hadi N., Aslam N., Gulzar A. (2019), Sustainable Service Quality and Customer Loyalty: The Role of Customer Satisfaction and Switching Costs in the Pakistan Cellphone Industry, Sustainability, 11.

Wolniak R. Skotnicka-Zasadzień B. (2012), The concept of study of Servqual method’s gaps, Quality and Quality, 46(4).

Zeithaml V.A., Berry L.L., Parasuraman A. (1988), Communication and control processes in the delivery of service quality, Journal of Marketing, 52(2).