Factors Influencing Customer Purchase Intention Towards Insurance Products

Abstract

Malaysia has low insurance penetration rate which is about 60% compare to other country. This means Malaysians might not be prepared in cases of unexpected disasters. Studies show that product, price, place, promotion and attitude do influences the purchase intention of insurance. Black box theory is applied in this study. This is a quantitative study where data is collected using survey method. All items were using 5-points Likert scale. 350 sample is used in this survey using questionnaire developed using adoption and adaptation of existing items. Using PLS-SEM data analysis method, this study found that product is the most important influence on life insurance purchase decision. Attitude his also found to mediate the relationship marketing stimuli and purchase behaviour. This study concludes that marketing mix which is product, price, place and promotion will influence customer attitude and subsequently customer purchase intention. Hence, insurance company should develop their marketing mix carefully in order to increase sales. Future studies are recommended to investigate effect of image provided through marketing/sales representatives on life insurance buying behaviour.

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