Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa
AbstractThe South African short-term insurance industry is diverse and competitive. Consumers can choose from a wide variety of motor vehicle insurance policies. The aim of this paper was to determine the specific factors that influence individuals’ decision to purchase personal motor vehicle insura...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-12-01
|
| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2293488 |
| _version_ | 1797392185889390592 |
|---|---|
| author | Nadia van Huyssteen Sharon Rudansky-Kloppers |
| author_facet | Nadia van Huyssteen Sharon Rudansky-Kloppers |
| author_sort | Nadia van Huyssteen |
| collection | DOAJ |
| description | AbstractThe South African short-term insurance industry is diverse and competitive. Consumers can choose from a wide variety of motor vehicle insurance policies. The aim of this paper was to determine the specific factors that influence individuals’ decision to purchase personal motor vehicle insurance in South Africa. A quantitative research approach was followed, which involved collecting data by means of a self-administered questionnaire. A three-phased analysis strategy, consisting of (1) exploratory factor analysis, (2) confirmatory factor analysis and (3) logistic regression model building, was followed to test and refine a consumer purchase decision model until an acceptable model could be established. The acceptable model identified specific internal and external factors, namely, marketing efforts (people, process and price of a policy); factors related to the sociocultural environment (items such as positive social class and negative reference family member); communication sources (paid-for social media efforts, buzz agents and customized messages); psychological attributes (items such as motivation and personality); and demographic variables (household income, highest level of education and age). It is recommended that insurance companies take note of the identified factors that influence the market since they are the policymakers who offer and market motor vehicle insurance products to consumers and potential consumers. |
| first_indexed | 2024-03-08T23:44:31Z |
| format | Article |
| id | doaj.art-4436bbb37a8e4598a8431dacdedf3bda |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-03-08T23:44:31Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-4436bbb37a8e4598a8431dacdedf3bda2023-12-14T01:26:57ZengTaylor & Francis GroupCogent Business & Management2331-19752024-12-0111110.1080/23311975.2023.2293488Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South AfricaNadia van Huyssteen0Sharon Rudansky-Kloppers1Business Management, University of South Africa, Pretoria, South AfricaBusiness Management, University of South Africa, Pretoria, South AfricaAbstractThe South African short-term insurance industry is diverse and competitive. Consumers can choose from a wide variety of motor vehicle insurance policies. The aim of this paper was to determine the specific factors that influence individuals’ decision to purchase personal motor vehicle insurance in South Africa. A quantitative research approach was followed, which involved collecting data by means of a self-administered questionnaire. A three-phased analysis strategy, consisting of (1) exploratory factor analysis, (2) confirmatory factor analysis and (3) logistic regression model building, was followed to test and refine a consumer purchase decision model until an acceptable model could be established. The acceptable model identified specific internal and external factors, namely, marketing efforts (people, process and price of a policy); factors related to the sociocultural environment (items such as positive social class and negative reference family member); communication sources (paid-for social media efforts, buzz agents and customized messages); psychological attributes (items such as motivation and personality); and demographic variables (household income, highest level of education and age). It is recommended that insurance companies take note of the identified factors that influence the market since they are the policymakers who offer and market motor vehicle insurance products to consumers and potential consumers.https://www.tandfonline.com/doi/10.1080/23311975.2023.2293488consumer decision-making influencing factorsinternal influencesexternal influencesconsumer buying behaviorshort-term insurance |
| spellingShingle | Nadia van Huyssteen Sharon Rudansky-Kloppers Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa Cogent Business & Management consumer decision-making influencing factors internal influences external influences consumer buying behavior short-term insurance |
| title | Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa |
| title_full | Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa |
| title_fullStr | Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa |
| title_full_unstemmed | Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa |
| title_short | Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa |
| title_sort | factors influencing consumers purchase decisions regarding personal motor vehicle insurance in south africa |
| topic | consumer decision-making influencing factors internal influences external influences consumer buying behavior short-term insurance |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2293488 |
| work_keys_str_mv | AT nadiavanhuyssteen factorsinfluencingconsumerspurchasedecisionsregardingpersonalmotorvehicleinsuranceinsouthafrica AT sharonrudanskykloppers factorsinfluencingconsumerspurchasedecisionsregardingpersonalmotorvehicleinsuranceinsouthafrica |