Abstract
Abstract. This paper deals with the examination of the rationale for insurance service purchase decision making with a focus on Lithuania and its possible implications for both Lithuania and other developing insurance markets. This work proposes a model that reflects the several stages of the insurance service purchase decision making process, including the time dimension. This model is constructed on the basis of three hypotheses; these hypotheses are tested based on data collected by means of an insurance expert survey. The results confirm the existence of two stages of insurance service purchase decision making, where one’s intellect and income determine the inclination towards insurance and where the price and quality of an insurance service determine its purchase decision. The research reveals a relatively equivalent impact of both consumers’ intellect and income on their inclination towards insurance in general; however, it strongly indicates the consumers’ strong focus on the price of the service as opposed to its quality when deciding to purchase an insurance service. The research also discloses the higher complexity of the decision making process when purchasing life insurance services as compared to non-life insurance services.Key words: insurance consumer behaviour rationale, insurance service purchase inclination and decision stages, intellect vs. income, price vs. quality, complicated vs. trivial process
Highlights
The problem investigated in this study is the non-consumption or relatively low consumption of insurance services in Lithuania as compared to that in developed markets
To justify the research hypotheses, which are formulated on the basis of the theoretical model about insurance consumer behaviour related to the insurance purchase decision-making in Lithuania
The authors of the current paper model the parameters of the insurance service price and quality as the second insurance purchase decision-making stage and raise the following second hypothesis: H2: If consumers are already inclined to purchase insurance services, the price and quality of insurance services have an decisive impact on the final decision making
Summary
The problem investigated in this study is the non-consumption or relatively low consumption of insurance services in Lithuania as compared to that in developed markets. The authors of this paper are interested in applying the theoretical model for researching insurance service purchase decision making process, to explain and empirically justify the process’ stages and the determinants of consumers’ involvement in the insurance service consumption in Lithuania. 2. To justify the research hypotheses, which are formulated on the basis of the theoretical model about insurance consumer behaviour related to the insurance purchase decision-making in Lithuania. To investigate and solve the given research problem, the whole of the research methods are used, i.e. a review of related works, a survey for collecting the opinion of insurance experts, a systematic, comparative and logic analysis and evaluation of the data resulting from the conducted survey; content (opinion) analysis; analysis of statistical data (application of descriptive measures)
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