The Effect of Service Marketing Mix on Sales Performance: The Case of Oromia Insurance Company

Abstract

This study aimed to examine the effect of service marketing mix on sales performance. To achieve the objectives of the study and the researcher was used an explanatory research design to examine the independent variable and the dependent variable. Descriptive research design, on the other hand, was used to address the what, how, and why in order to describe a population with respect to important variables. Seven marketing mix variables were explored regarding their relationship with sales performance. The seven key factors are product, price, promotion, placement, people, process, and physical evidence. A self-administered survey was utilized to gather the data, and 151 participants participated in this study. Pearson correlation analysis and linear regression analysis were used to analyze the association and the relationships between the dependent and independent variables. Therefore, the Model Summary result, R = 0.7693 indicates the multiple correlation coefficient values, which exhibit a high degree of predictive accuracy. The R2 = 0.7754 implies that 77.5% of the variation in the dependent variable (sales performance) is explained by the independent variables (Product, Price, Place, Promotion, People, Process, Physical Evidence) but the remain 22.5 % were explained by others variables those not included under the current study. Table 4.14 also summarize the results of the Coefficients show that price, physical evidence are statistically significant. Meanwhile product (), place, promotion, people and process are significant and product is insignificant with positive relationship. Thus, this implies that there is a insignificant relationship between the predictor variables (product) and the dependent variable (sales performance). Findings from this study indicated that except product, all the predictor’s variables have a significant relationship with sales performance. Therefore, according to this study, price and physical evidence directly affected the sales performance of the insurance company in this study.