Investigating the Factors of Consumers’ Purchase Intention Towards Life Insurance in Bangladesh: An Application of the Theory of Reasoned Action

Abstract

This study aims to examine the factors that influence consumer purchase intention towards life insurance. The study included religiosity, risk aversion motives, saving motives, and financial literacy with classical Theory of Reasoned Action (TRA), therefore extending the model. A convenience sampling method was employed to collect data from 315 respondents working in different public and private institutions in Bangladesh. Collected data were analysed using the structural equation model (SEM). The results revealed that attitude, subjective norms, risk aversion motives, saving motives, and financial literacy have a significant positive impact on consumer purchase intention towards life insurance. Moreover, religiosity was found to have a negative impact on purchase intention. In addition, saving motives was found as a mediator in the relationship between risk aversion motives and purchase intention, as well as between financial literacy and purchase intention. Since attitude and subjective norms were found to have the most effect on purchase intention, the study implicated that marketers should emphasise company image, reputation, and the credibility of the agents, together with the significant others to whom we often turn to before making any financial decision. Finally, the study offered directions for further research after divulging several limitations.

Impact of brand equity on purchase intentions: empirical evidence from the healthtakāfulindustry of the United Arab Emirates

“…For example, an individual might think what the outcome of his decision will be and, based on his behavioral belief, he will decide whether to involve himself in a behavior or not (Ajzen, 1991). Attitude is an aspect of human beings that is linked to their minds and it provides them with a reason to form an intention or behavior (Arif, 2016; Nomi and Sabbir, 2020).…”

“…For example, an individual might think of what others might expect from him or what others will think about him if he makes a certain decision. Subjective norm can also be defined as social pressure that an individual has from the people around him and this pressure guides him to perform or avoid a certain type of behavior (Tuan and Vinh, 2016; Nomi and Sabbir, 2020).…”

“…Besides this, it is also observed that higher levels of religiosity will have a strong influence on PI, while lower levels of religiosity will have a comparatively weaker influence on the purchase intention of customers. Past studies have concluded that Muslim customers prefer Sharīʿah-compliant insurance products as they agree with the teachings of Islam and this is a source of spiritual satisfaction for them (Rehman and Shabbir, 2010; Nomi and Sabbir, 2020).…”

Exploring the impact of perceived risk and trust on tourist acceptance intentions in the post-COVID-19 era: A case study of Hainan residents

“…Krajaechun and Praditbatuga ( 2019 ) articulated their results using Pearson's correlation coefficient, showing the acceptability of non-life insurance conditions and subjective normative attitudes toward the product were significantly associated with the intention to purchase non-life insurance. Nomi and Sabbir ( 2020 ) examined individual-level factors to explain changes in intention to purchase life insurance, empirically testing TRA as valuable. Um and Yoon ( 2021 ) argued that attitudes influence the intention to protect and participate in responsible tourism.…”

“…Um and Yoon ( 2021 ) argued that attitudes influence the intention to protect and participate in responsible tourism. Nomi and Sabbir ( 2020 ) found that attitudes and subjective norms have the greatest impact on purchase intentions.…”