The Application of Relationship Marketing in Insurance Businesses in Developing Countries. Evidence from Albania and Kosovo. Barriers and Challenges


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Authors

  • Dr. (C) Bledi BEZO University College of Business
  • Dr. Bajram R. Hasani FRON PARK Company
  • Dr. Ledia Sula University College of Business
  • Prof. Dr. Liljana Elmazi (Billa) University of Tirana

Keywords:

Relationship Marketing Management, Customer Relationship, Insurance Services, Albania, Kosovo, Customer Loyalty, CRM, Friedman Test, Neural Network

Abstract

In recent times, managers have increasingly recognized the strategic importance of retaining
existing customers as a vital determinant of organizational competitiveness and long-term sustainability.
The benefits of cultivating a loyal customer base such as reduced churn, increased profitability, and stronger
brand advocacy - are well established in marketing literature. Customer loyalty is largely built upon the
quality and continuity of the relationship between the customer and the organization.
The deeper and more sustained this relationship is the greater the mutual value it generates.
This study aims to emphasize the importance of relationship marketing management in the context of the
insurance sector in Albania and Kosovo, with a specific focus on how Customer Relationship Management
(CRM) practices influence customer satisfaction and behavioral loyalty. Using a quantitative research
design, data were collected through structured questionnaires administered to customers and employees
from selected insurance companies in both countries. A purposive sampling method was employed to
ensure the inclusion of respondents with direct experience in insurance services, while a sample of over
400 respondents (300 customers and 100 employees} was analyzed using SPSS version 25.
The study employed the Friedman test to evaluate the significance of differences in customer awareness
across various CRM practices, and a Neural Network Model to predict customer satisfaction based on
demographic and behavioral factors. The Friedman test results revealed that CRM attributes are not
perceived equally; the most influential factor in customer awareness was identified as “CRM enhances
customer loyalty.”
These findings suggest that successful CRM implementation in the insurance sector depends not only on
technological tools but also on human interaction, service accessibility, and a personalized approach to
client engagement. Therefore, insurance companies in Albania and Kosovo are recommended to invest in
customer-centric CRM strategies, staff training, and targeted communication campaigns that enhance
awareness and trust among customers.

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Author Biographies

Dr. (C) Bledi BEZO, University College of Business

Tirana, Albania

Dr. Bajram R. Hasani, FRON PARK Company

CEO and Owner of FRON PARK Company, ex Minister of Trade and Tourism, Republic of Kosovo

Dr. Ledia Sula, University College of Business

Head of Management Department, Tirana, Albania

Prof. Dr. Liljana Elmazi (Billa), University of Tirana

 Albania Faculty of Economics, Marketing - Tourism Department, Tirana, Albania

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Published

2025-07-12

How to Cite

BEZO, D. (C) B., Hasani, D. B. R., Sula, D. L., & Elmazi (Billa), P. D. L. (2025). The Application of Relationship Marketing in Insurance Businesses in Developing Countries. Evidence from Albania and Kosovo. Barriers and Challenges . International Journal of Advanced Natural Sciences and Engineering Researches, 9(7), 115–126. Retrieved from https://as-proceeding.com/index.php/ijanser/article/view/2751

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