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
Items on the 21-item questionnaire for SST channels and insurance participation survey
Part 1 – Utilitarian dimension | |||
Structure category | Item No. | Item label | Item description |
Savings and discounts | 1 | Same premium | I purchase insurance via SST channels when premiums are identical across all intermediaries. |
2 | Cheaper premium | I feel SST channels offer insurance with cheaper premiums. | |
3 | More savings | I feel SST channels offer insurance with more savings. | |
4 | Group savings | I purchase insurance because of special group savings rates. | |
5 | Lowest price | I purchase insurance policies with the lowest premium. | |
6 | Channel comparisons | I compare prices and discounts among various channels for insurance purchases. | |
7 | SST channels* with more discounts | If SST channels offer more discounts, I will purchase insurance via such channels. | |
8 | Online broker | If SST channels provide more savings than insurance companies, I will choose the former. | |
Payments and transactions | 9 | Payment method | I purchase insurance based on payment methods availability. |
10 | Rapid transaction | I feel SST channels offer more rapid purchase transactions. | |
11 | Lower risk | I feel SST channels provide lower risks for insurance purchases. | |
12 | Convenient and time saving | I like to purchase insurance through convenient and time-saving channels such as SST channels. | |
Part 2 – Hedonic dimension to avoid regret | |||
Structure category | Item No. | Item label | Item description |
Information and services | 13 | No agent disruptions | I purchase insurance via SST channels to avoid insurance agent disruptions. |
14 | Visible Ads | I purchase insurance because of advertisement visibility. | |
15 | More information | The SST channels offer more complete information. | |
16 | Meet expectations | Purchasing insurance via SST channels always meets my expectations. | |
17 | Referral | I refer to friends’ recommendations to purchase insurance. | |
Personal preferences | 18 | Spending time | I spend time comparing prices and discounts from insurance companies before purchasing via SST channels. |
19 | Product–channel match | I choose different channels to purchase insurance. | |
20 | Previous experience | I purchase insurance based on my previous SST channel experiences. | |
21 | SST purchases | I will consider purchasing insurance via SST channels. |
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©2015 by De Gruyter
Articles in the same Issue
- Frontmatter
- Measuring Self-Service Technology Latent Difficulties: Insurance Decisions on Utilitarian and Hedonic Influences
- The Impact of Public Insurance on Private Insurance Demand
- Do the Over-the-Counter Sales at Banks Expand the Individual Annuity Market in Japan?
- Risk Analysis for Reverse Mortgages with Different Payout Designs
- The Fisher Hypothesis and Its Implications for Defined Benefits
- The Square-Root Rule for Reinsurance: Further Analysis and Consideration of China’s Market
Articles in the same Issue
- Frontmatter
- Measuring Self-Service Technology Latent Difficulties: Insurance Decisions on Utilitarian and Hedonic Influences
- The Impact of Public Insurance on Private Insurance Demand
- Do the Over-the-Counter Sales at Banks Expand the Individual Annuity Market in Japan?
- Risk Analysis for Reverse Mortgages with Different Payout Designs
- The Fisher Hypothesis and Its Implications for Defined Benefits
- The Square-Root Rule for Reinsurance: Further Analysis and Consideration of China’s Market