A Quantitative Assessment of the Influence of Brand Equity on Customer Retention in the Medical Aid Industry: Empirical Evidence from Premier Service Medical Aid Society in Zimbabwe
Gerald Munyoro *
Department of Admiration & Leadership, Faculty of Education, University of Zimbabwe, Harare, Zimbabwe.
Felix Maponga
ZOU Graduate School of Business, Faculty of Commerce, Zimbabwe Open University, Harare, Zimbabwe.
*Author to whom correspondence should be addressed.
Abstract
Brand equity is a critical intangible asset influencing customer retention in service industries, particularly healthcare financing where trust and perceived quality shape consumer decisions. In Zimbabwe’s medical aid sector, organisations such as Premier Service Medical Aid Society (PSMAS) face declining membership amid economic volatility and service delivery challenges, necessitating examination of brand equity effects on retention. This study employed a quantitative cross-sectional design using structured questionnaires administered to 200 stakeholders of PSMAS in Harare. Data were analysed using SPSS with descriptive statistics, correlation, and multiple regression to determine relationships between brand equity dimensions and customer retention. The findings revealed that brand equity significantly influences customer retention (β=0.58, p<0.01), explaining 64% of variance. Brand loyalty and perceived quality emerged as the strongest predictors of retention, while brand awareness and associations showed moderate effects. Additionally, trust partially mediated the relationship between brand equity and retention, reinforcing its psychological importance in service loyalty. Service delivery inefficiencies negatively affected perceived quality and increased switching intentions among respondents. Overall, the model demonstrated robust explanatory power and confirmed the relevance of brand equity theory in emerging healthcare markets such as Zimbabwe, where institutional trust remains fragile and customer retention is highly sensitive to service performance and economic conditions. Policy and managerial interventions are therefore essential for sustainable retention outcomes. These results confirm that strengthening brand equity enhances retention by reducing perceived risk and improving relational trust in healthcare financing contexts. The study recommends prioritising service quality improvements and trust-based communication strategies to sustain customer loyalty in Zimbabwe’s medical aid industry. Future research should adopt longitudinal designs to validate causal relationships over time.
Keywords: Brand equity, customer retention, medical aid, PSMAS, service quality, healthcare financing