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An efficiency comparison of direct and indirect channels in Taiwan insurance marketing

Chiang Ku Fan (Graduate Institute of Finance and Insurance, Shih Chien University, Taipei, Taiwan, Republic of China)
Shu Wen Cheng (Graduate Institute of Finance and Insurance, Shih Chien University, Taipei, Taiwan, Republic of China)

Direct Marketing: An International Journal

ISSN: 1750-5933

Article publication date: 16 October 2009

4008

Abstract

Purpose

The purpose of this paper is to compare the efficiency of bancassurance, an indirect marketing channel formed through the creation of subsidiaries, with an insurer's own team, a direct marketing channel, in the Taiwan insurance sector.

Design/methodology/approach

This paper uses the Charnes, Cooper, and Rhodes (CCR) model to measure the decision‐making units' (DMU) operating efficiency.

Findings

The three major findings are: the efficiency score of a direct marketing channel is significantly higher than that of a comparable indirect marketing channel. The efficiency relationship between the indirect marketing channel and the direct marketing channel is independent. A marketing efficiency evaluation, when divided into different marketing channels for evaluation, provides meaningful results for marketing decision‐makers.

Originality/value

By comparing the efficiency between two different insurance marketing channels, managers in life insurance companies can make a more informed choice.

Keywords

Citation

Ku Fan, C. and Wen Cheng, S. (2009), "An efficiency comparison of direct and indirect channels in Taiwan insurance marketing", Direct Marketing: An International Journal, Vol. 3 No. 4, pp. 343-359. https://doi.org/10.1108/17505930911000900

Publisher

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Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

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