The potential of virtual communities in the insurance industry in the UK and Greece

Virtual communities (VCs) are formed on the Internet and are expected to evolve to a strategically important e-business model. VCs foster trust among their members and allow them to interact, exchange ideas and experiences, regardless of their geographical or ethnic origin. Organisations should consider VCs as a new market place since their members are current or future customers. Through the interaction with the members of a VC, companies will eventually learn more about the needs of their customers, they will strengthen their relationships and they will be able to customise their services. This exploratory study reports on a survey of 43 information systems and marketing managers of insurance companies in the UK and Greece. It investigates the potential of VCs in the services sector with respect to their contribution to consumers' loyalty and discusses the requirements for the functionality of a VC. The results of this study are useful both for the design of VCs and the evaluation of their business value. (C) 2003 Elsevier Science Ltd. All rights reserved.