THE EFFECT OF SERVICE FAILURE, RECOVERY EFFORTS, & REGRET ON SWITCHING INTENTION TO AXA MANDIRI LIFE ASSURANCE CUSTOMERS IN SURABAYA

Abstract

This study aims to analyze the effect of service failure and recovery efforts on switching intention mediated by regret on AXA Mandiri life insurance customers in Surabaya. The sampling technique used is non-probability with purposive sampling. The sample currently used is 150 respondents. The requirements of the respondents in this study are at least 18 years old, domiciled in Surabaya, are customers of AXA Mandiri insurance, and have experienced service failure. The data analysis technique used is SEM with the LISREL program. The results of this study indicate that service failure has a positive and significant effect on regret, but has a negative and insignificant effect on switching intention. Recovery efforts have a negative and insignificant effect on regret and negative and insignificant effect on switching intention. Service failure has a positive and significant effect on switching intention through regret, while recovery efforts has a negative and insignificant effect on switching intention through regret and positive and significant effect on switching intention. Suggestions from researchers for AXA Mandiri Surabaya insurance is that companies need to develop strategies to prevent service failures and apply appropriate and effective recovery efforts so that they can reduce regrets that result in switching intention.