Research On Decision-making Psychological Mechanism Of Auto Liability Insurance And Insurance Marketing Strategy Innovation

Insurance decision is a classic topic of the insurance industry,and this topic is of great concern for both academic community and practice field.Previous studies assume that consumers are rational-economic man.However,few people can conform to this hypothesis in real life,resulting in the insurance market for consumer's decision-making behavior cannot be fully understood by researchers.Therefore,taking the vehicle third party liability insurance policy-holder insurance decision-making behavior as the research target,this study introduce the concepts and methods in psychological field to investigate consumers' insurance purchasing behavior and driving behavior.This research would broaden the rational econo mic man this hypothesis,and build decision-making model of psychological mechanism which can capture the impact of people's psychological factors on insured decision-making and driving behavior.In addition,based on the structure equation model results of this study,I would further explore psychological factors that may influence the insurance decision through two psychological experiments.By doing so,insurance companies could change auto insurance marketing method by implementing the psychological segmentation.This paper not only follows the trend of international academic,but also helps to improve the understanding of existing theory in insurance demand field.The results of this study helps explain the insurance decision problem by building a more suitable theoretical model to interpret consumer's psychology,and has important theoretical significance.In addition,the results of consumer's psychological mechanism can be used for marketing innovation,which would help to improve the efficiency of marketing,change people's irrational behavior,maintain the stability of the automobile insurance market operation.The research results of this article can be concluded as three aspects.First of all,in order to analysis the psychological factors that wo uld influence the decision-making behavior and the driving behavior at the same time,this article constructed a psychological mechanism model and introduced two psychological variables,regulatory focus and sensation seeking.This study collects the data by survey and applies the structural equation model to test the hypotheses.The overall results show that sensation seeking and prevention focus will influence people's insurance decision-making behavior and driving behavior at the same time,while promotion focus will affect driving behavior but will not affect the decision-making behavior.Specifically,prevention focus is negatively related to the driving behavior,and positively related to the insurance coverage.Sensation seeking is positively related to driving behavior,and is negatively related to the insurance coverage.That means prevention focus individuals would take more safe driving behaviors,and bought high vehicle third party liability insurance at the same time.Sensation seeking individuals tend to risky driving,and bought low vehicle third party liability insurance at the same time.Then,based on regulatory focus information framework,this paper discusses the mutual impact of the regulatory focus information framework which focus on avoiding losses or attaining gains,and individual's regulatory focus personality on vehicle third party liability insurance decision.The results of this psychology experiment answered the question: how the individual's regulatory focus and regulatory focus information framework(prevention focus frame VS promote focus frame)work together to improve consumer's third party liability insurance coverage?The results of this experimental indicate that prevention focus information framework can significantly increase individuals' insurance coverage when they are in prevention focus motivation condition.However,promotion focus information framework cannot significantly affect individual's insurance coverage no matter they are in prevention focus motivation condition or in promotion focus condition.This means that the insurance company can induce consumers' prevention focus psychological traits,and then use the targeted emphasize avoiding losses of prevention focus information framework for marketing,thus increasing consumers' willingness to insure higher insurance coverage.Finally,based on different type advertisement,this paper discusses the different the mutual influence of advertising types,such as the fear appeal advertising and humorous appeal advertising,and sensation seeking on the third party liability insurance purchasing decision.The results of this research answered the question:how the sensation seeking and advertising type(humorous appeal ads vs.fear appeal ads)work together to improve consumer's third party liability insurance coverage?Specifically,results show that humor appeal advertising can significantly increase the insurance coverage of consumers who possess high level sensation seeking.Fear appeal advertising can significantly increase the insurance coverage of consumers who possess low level sensation seeking.This means that the insurance company can increase consumers' willingness to insure high auto insurance coverage by making the consumers with different level of sensation s eeking to watch the different types of advertising.