Insurance Policy Purchase Decision in Surabaya, Indonesia

Sesilya Kempa,Wiliam Ardiyanto Wisnu Pratama,Noneng R Sukatmadiredja

doi:10.1051/shsconf/20207601053

Sesilya Kempa, Wiliam Ardiyanto Wisnu Pratama + Show 1 more

Open Access

https://doi.org/10.1051/shsconf/20207601053

Copy DOI

Abstract

The level of competition in the insurance world that is getting tougher makes the insurance business do a lot of strategies, both promotion, service, and others. Consumer decisions in buying insurance policies themselves are influenced by several things. This study emphasizes the presence of the influence between company reputation and product knowledge on purchase decisions as well as the influence of both variables through consumer trust of insurance policies from insurance companies in Surabaya. The data collection is carried out on 130 consumers who have bought an insurance policy. From 130 questionnaires returned, there are only 100 questionnaires which can then be further processed using Partial Least Square 2.0 analysis. The results of data processing show that company reputation, product knowledge, and consumer trust influence the purchase decisions respectively of 0.204, 0.203, and 0.494. While the influence of company reputation and product knowledge on customer trust are 0.452 and 0.471, respectively. Customer trust itself is proven to be an intervening variable between company reputation and product knowledge and on purchase decision making.

Highlights

One way to overcome the complicated expenses due to risk or uncertainty of an illness is to buy an insurance policy from a reputable insurance company
Hasyim and Helmi's research shows that the purchase decision depends on the consumer trust which is influenced by perceived of usefulness and company reputation [3]
Testing the convergent validity is done by seeing the outer loading value and the average variance extracted (AVE) value

Summary

Introduction

One way to overcome the complicated expenses due to risk or uncertainty of an illness is to buy an insurance policy from a reputable insurance company. Insurance has two types of products namely life insurance and health insurance. Calvin and Semuel say that insurance is a system in which financial protection or financial loss for life, property, health, etc. Gets reimbursed from unexpected events as death, loss, damage, which involves regular premium payments over a period of time as a policy guaranteeing the protection [1]. The decision to purchase an insurance policy is influenced by many things. Hasyim and Helmi's research shows that the purchase decision depends on the consumer trust which is influenced by perceived of usefulness and company reputation [3]. Company reputation becomes a benchmark for both companies in the eyes of the public or their consumers

Objectives

Results

Conclusion