Designing an Electronic Word-of-Mouth Marketing Model in the Insurance Industry Using a Hybrid Approach
Keywords:
data-driven theory, automotive industry , new product development , marketing intelligence, data-driven, insurance industry, Electronic word-of-mouth marketing (eWOM)Abstract
This study aims to design and explain a comprehensive electronic word-of-mouth (eWOM) marketing model for the Iranian insurance industry using a mixed-methods approach. The research is fundamental in purpose and mixed in method. In the qualitative phase, a systematic grounded theory approach (Strauss & Corbin) was employed through semi-structured interviews with 10 academic experts and insurance managers; data were analyzed via open, axial, and selective coding, with inter-coder reliability confirmed by Cohen’s kappa of 0.869. In the quantitative phase, data were collected from 213 insurance customers using a researcher-developed questionnaire and analyzed through structural equation modeling with SmartPLS. Construct validity and reliability met accepted thresholds. Results indicate that eWOM effectiveness has a strong positive effect on buyers’ tendencies, emotions, and thoughts (β=0.685, p<0.01). Customer loyalty necessity also showed a significant effect (β=0.271, p<0.01), whereas ease of use was not significant (β=-0.108, p>0.05). Buyers’ tendencies significantly influenced customer interaction and commitment (β=0.526, p<0.01). Customer interaction and commitment significantly reduced advertising costs (β=0.579, p<0.01) and increased sales and profitability (β=0.668, p<0.01). The moderating role of infrastructure was not supported. The proposed model demonstrates that effective eWOM—anchored in customer loyalty and interaction—can substantially enhance marketing efficiency, reduce costs, and improve sales performance in the insurance industry.
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