Abstract
PurposeThis study examines the relationship between policyholders’ psychographic characteristics and demand decisions for life insurance products in Uganda.Design/methodology/approachThe study is based on a cross-sectional survey. Using a purposive sampling method, 389 questionnaires were administered to life insurance policyholders in the four geographical regions of Uganda. Partial least squares structural equation modeling (PLS-SEM) was employed to analyze the primary data, specifically to test the relationships between the dependent and independent variables.FindingsThe findings indicate a positive and significant influence of psychographic characteristics on demand decisions for life insurance products. In addition, the analysis indicates that the two first-order constructs of psychographic characteristics, namely price consciousness and consumer innovativeness, are positive and significant predictors of demand decisions for life insurance products. In contrast, the third first-order construct religious salience, exhibits a negative and nonsignificant effect on demand decisions for life insurance products.Practical implicationsFor insurance practitioners, to influence demand decisions, they should emphasize premium-related appeals in their marketing messages (price consciousness) ignore product decisions based on religious beliefs and norms (religious salience). They should also ensure that insurance products are highly trustable and experiential (consumer innovativeness). For insurance policymakers, it offers an in-depth understanding of customer psychographic characteristics, which can be used to identify exploitative information embedded in certain marketing campaigns targeting specific psychographic characteristics, for better regulation.Originality/valueThe study provides a basis for understanding lifestyle and personality characteristics (psychographics), which may influence demand decisions for life insurance products in a developing country like Uganda, where the insurance industry is at an early stage of development.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0440
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