CHAPTER THREE

METHODOLOGY

3.1 Overview

This chapter presents the methodological concerns used in conducting this research and provide a
justification for each step taken. It involves the General Research Perspectives, Data Collection,
Summary of Statistical Measurement Methods and validity and Reliability of the Research.

3.2 Research Perspectives

Research philosophy refers to the assumptions and beliefs that govern the way we view the world
(Saunders et al., 2007). Two main research philosophical views are positivism or
phenomenological perspective. Positivism has to do with the situation where knowledge or the
world is thought to exist independent of people’s perceptions of it and that science uses objective
techniques to discover what exist in the world” (Sullivan, 2001 p.47). Positivism uses logical,
quantitative, more objective scientific methods to test hypothetically-deductive generalizations.
On the other hand, phenomenological or interpretive philosophy holds that “... reality of the world
is thought to arise out of the creation and exchange of social meaning during the process of social
interactions” (Sullivan, 2001 p. 48). Phenomenological perspective uses qualitative, more
subjective, naturalistic approaches in inductively and holistically to understand human experiences
in context-specific settings (Amaratunga, Baldry, Sarshar & Newton, 2002).

In this study we have chosen positivism more than phenomenological perspective because we
believe that service quality and customer satisfaction construct as pertaining in Ghana’s insurance
industry can be examined objectively through the use of established theoretical frameworks and
structured instruments to assess and analyze it, upon which generalizations can be made from the
findings.

3.2.1 Research Philosophy

Research philosophy refers to the assumptions and beliefs that govern the way we view the world
(Saunders et al., 2007). Two main research philosophical views are positivism or
phenomenological perspective. Positivism has to do with the situation where knowledge or the
world is thought to exist independent of people’s perceptions of it and that science uses objective
techniques to discover what exist in the world” (Sullivan, 2001 p.47). Positivism uses logical,
quantitative, more objective scientific methods to test hypothetically-deductive generalizations.

In this study we have chosen positivism more than phenomenological perspective because we
believe that service quality and customer satisfaction construct as pertaining in Ghana’s insurance
industry can be examined objectively through the use of established theoretical frameworks and
structured instruments to assess and analyze it, upon which generalizations can be made from the
findings.

3.2.2 Research Purpose

The research purpose is a broad statement of what the research hopes to achieve. According to
purpose, research could be broadly divided into descriptive, exploratory and explanatory (Saunders
et al., 2000, 2007; Cooper and Schindler 2006). A descriptive research is a study that seeks to
“portray an accurate profile of persons, events or situations” (Robson 2002:59 in Saunders et al.,
2007). It involves formalizing the study with definite structures in order to better describe or
present facts about a phenomenon as it is perceived or as it is in reality.

The study is descriptive in that it seeks to describe in detail the state of customer satisfaction and
service quality in the insurance industry, thus giving an in-dept understanding of the reality of
customer satisfaction with service quality in the GII and to better understand relative importance
of service quality dimensions to the customer. Secondly, the study is explanatory since it will seek
to determine the impact of service quality on overall satisfaction and the influence of customer
demographic variables on overall satisfaction. It will also explore the relationships that exist
between customer satisfaction and customer behaviour intentions such as likelihood to recommend
and repurchase services. Thirdly, study exploratory in that it is still unknown in the Ghana’s
Insurance Industry, whether customers are satisfied and what are their perception of insurance
service quality in the GII.
3.2.3 Research Approach

Research may be deductive or inductive. Deductive research approach begins with the
development of a theory or hypothesis and later a development of a strategy to test it in a context
to verify or reject its claims. So, it is thinking from general to specific. On the other hand, the
approach is inductive where the research begins with an observation of a phenomenon in an
environment, then data is collected upon which a theory is developed or generalization is made.
Thus, thinking from specific to general.

3.2.4 Time Horizon

In terms of time horizon, research design can be longitudinal or cross-sectional. A crosssectional

study examines a particular phenomenon at a specific period of time (Saunders et al., 2007).
According to Malhotra and Birks (2007) one sample of a population can be taken and studied at a
particular time as in a single cross-sectional study or two or more samples of a target population
could be studied once as in multiple cross-sectional study.

3.2.5 Research Strategy

Research strategy is a general plan of how a researcher intends to answer the research questions.
A Researcher’s strategy will determine, to a large extent, the choice of data collection methods.
The main research strategies are action research, ethnographic studies, experiment, survey, case
study, grounded theory or archival research (Saunders et al., 2000, 2007; Cooper & Schindler,
2006; Malhotra & Birks, 2007).

3.3 Population

The target population for the study comprises all individual customers of all the insurance
companies that operate in Ghana. There is no available statistics on the total number of individual
customers in the insurance industry in Ghana. The insurance industry consists of many different
categories of players; there are as at January 2022, 3 Reinsurance companies, 22 Life Insurance
and 29 Non-Life Insurance companies. These companies are situated across different regions of
the country.

3.4 Sample Size

The study focuses on insurance companies operating in Ghana that offer both Life and Non-Life
Insurance services. The number of these companies is eleven (11). As a result of limited data on
the total population, cost and time constraints, a convenient sample size of an equal proportion of
hundred (100) customers for each of the eleven insurance companies, totaling 1100 sample size.

3.5 Sampling Method

A convenient sampling technique, which is a non-probabilistic sampling technique, will be used

to select the respondents for three reasons. First the customers are scattered across the country,
which makes it very difficult to contact each of them individually. Again, it is difficult getting the
exact number of customers for each of the insurance companies in Ghana which is required for the
use of any random sampling technique. Third, the researchers are working within the demands of
an academic schedule so very limited time and resources to conduct the study.

3.6 Data Collection Instruments

Data collection techniques refer to the methods for gathering reliable information to answer a
question or support an experimental hypothesis (Handy, 2011). In view of this, an integrated
multiple data collection technique was used to ensure effective analysis and to provide adequate
supporting information. In the course of the research, the following research instrument:
questionnaire and interview were used to collect data.
3.6.1 Questionnaire

The Cambridge International Dictionary (2009) defines questionnaire as “a written list of questions
that a number of people are asked to complete so that information can be collected”. 24 It refers to
a device for securing answers to questions by using a form which the respondent fills himself or
herself. The questionnaire was used in view of its effectiveness and efficiency in securing factual
information. Moreover, since respondents provide answers to questions with limited inference on
the part of research personnel and therefore the researcher can depend on the honesty of the
respondents, necessitated its use.

3.6.2 Interview

An interview is the qualitative research method that relies on asking questions in order to collect
data. Interviews involve two or more people, one of whom is the interviewer asking the questions.

There are several types of interviews, often differentiated by their level of structure. Structured
interviews have predetermined questions asked in a predetermined order. Unstructured interviews
are freer-more flowing, and semi-structured interviews fall in between.

3.7 Data Analysis

Data analysis involves examination of the data in the order in which your questions have been
answered. If you have asked more than one question, you will want to sort the data according to
question. And you may want to discard (or at least set aside) data that do not directly relate to the
questions you have posed (Punch, 2000).

A discussion guide was used to direct focus group discussion (Appendix A). According to Cooper
& Schindler (2006) and Malhotra & Birks (2007), the appropriate number of a focus group should
be between five and twelve 12 people; the people should be purposefully selected, and the
discussion or interview last for usually an hour or two hours. In view of this, 12 participants were
selected using purposive sampling technique because the researchers wanted to make sure the
participant had satisfied the criteria of eligibility before they could be selected. The criteria were
that each participant must have been a customer of a particular insurance company in Ghana for at
least the past 12 months. We invited three insurance company representatives, five individual
customers from different insurance companies in Ghana, and two insurance brokers that have been
in existence of the past five years in the GII, two experts in insurance services.