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Measuring Self-Service Technology Latent Difficulties: Insurance Decisions on Utilitarian and Hedonic Influences

  • Ann Shawing Yang EMAIL logo
Published/Copyright: November 6, 2014

Abstract

This study investigates the difficulties encountered by consumers in forming insurance decisions when using self-service technology (SST) channels, such as electronic insurance. Rasch measurement model is applied. This model employs the expectation disconfirmation theory to categorize and rank the order of importance of latent utilitarian and hedonic insurance purchase motives. Consumers find that electronic insurance has high risks and high premiums with respect to utilitarian motives but lacks information and performs unsatisfactorily in terms of hedonic motives. Nevertheless, electronic insurance is preferred for the convenience brought by SST channels, and because it provides greater discounts and offers product–channel matching through self-consultation in the absence of agents. Being middle-aged and having a high income are factors that significantly influence electronic insurance purchases.

Appendix

Table 6:

Items on the 21-item questionnaire for SST channels and insurance participation survey

Part 1 – Utilitarian dimension
Structure categoryItem No.Item labelItem description
Savings and discounts1Same premiumI purchase insurance via SST channels when premiums are identical across all intermediaries.
2Cheaper premiumI feel SST channels offer insurance with cheaper premiums.
3More savingsI feel SST channels offer insurance with more savings.
4Group savingsI purchase insurance because of special group savings rates.
5Lowest priceI purchase insurance policies with the lowest premium.
6Channel comparisonsI compare prices and discounts among various channels for insurance purchases.
7SST channels* with more discountsIf SST channels offer more discounts, I will purchase insurance via such channels.
8Online brokerIf SST channels provide more savings than insurance companies, I will choose the former.
Payments and transactions9Payment methodI purchase insurance based on payment methods availability.
10Rapid transactionI feel SST channels offer more rapid purchase transactions.
11Lower riskI feel SST channels provide lower risks for insurance purchases.
12Convenient and time savingI like to purchase insurance through convenient and time-saving channels such as SST channels.
Part 2 – Hedonic dimension to avoid regret
Structure categoryItem No.Item labelItem description
Information and services13No agent disruptionsI purchase insurance via SST channels to avoid insurance agent disruptions.
14Visible AdsI purchase insurance because of advertisement visibility.
15More informationThe SST channels offer more complete information.
16Meet expectationsPurchasing insurance via SST channels always meets my expectations.
17ReferralI refer to friends’ recommendations to purchase insurance.
Personal preferences18Spending timeI spend time comparing prices and discounts from insurance companies before purchasing via SST channels.
19Product–channel matchI choose different channels to purchase insurance.
20Previous experienceI purchase insurance based on my previous SST channel experiences.
21SST purchasesI will consider purchasing insurance via SST channels.

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Published Online: 2014-11-6
Published in Print: 2015-1-1

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