Effects of Return Commission

The aim of this report is to gain more insight into the understanding of return commission, in the shape of free gifts as well as money in return. In this report, relationships between return commission and customer satisfaction and corporate image will be researched. Motives for this research are that lately financial intermediaries follow the trend of offering free gifts and money in return when customers take out insurance policies, even though yet little empirical research has been done on this topic. The main conclusion of this report is that, when return commission is boosting sales, companies should offer it since no negative consequences with regard to customer satisfaction and corporate image are identified. Furthermore, the best option for companies is to offer return commission in the shape of money, as it is yielding the highest levels of customer satisfaction across the different groups categorized by demographic variables (gender, age, income).