The Effects of Advertising Media on Sales of Insurance Products: a Developing-Country Case

The effects of advertising media on sales of insurance products: a developing-country case

S.A. Aduloju
Department of Insurance and Actuarial Science,
University of Lagos, Lagos, Nigeria

A.O. Odugbesan
Formerly of Department of Business Administration, University of Lagos,
Lagos, Nigeria, and

S.A. Oke
Department of Mechanical Engineering, University of Lagos, Lagos, Nigeria

Abstract
Purpose
– Characterized by declining goodwill and exemplified sharp drop in gross premium, the
Nigerian insurance industry, in recent times, has experienced turbulent economic challenges that necessitated re-engineering of its core activities. However, advertising and sales are core activities,

which are important predictors of stability and growth in the insurance industry. Consequently, the purpose of this paper is to examine the impact of advertising on sales of insurance products.
Design/methodology/approach
– An empirical investigation is carried out using a survey that

utilizes questionnaires, interviews, and field observation as major research instruments. A total of 71 insurance companies in Nigeria, which represent the total operating insurance companies in Nigeria at the time of study, were surveyed. With 100 scientifically selected subjects sampled, descriptive analysis was employed to understand the relationship and the strength of such relationships.

Findings
– It was found that advertising had effects on sales volume and improved public image.
However, the choice of advertising medium, the message, and the format are critical ingredients of a successful advertising program in the insurance industry.

Research limitations/implications – The insurance industry in Nigeria was studied from a holistic viewpoint due to the need to present reliable and detailed information for decision makers.
However, limitation in achieving this relates to the reluctance of respondents to release information for
the

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