To buy or not to buy: Factors influencing life insurance purchase intention

The purpose of this thesis paper is to investigate the influence of five factors namely Word-of-mouth, Trust, Reputation, Loyalty, and Customer Satisfaction on life insurance Purchase Intention. Existing customers in Great Eastern Life Assurance (M) Berhad, Alor Setar were chosen as samples of this study. A survey using 400 questionnaires was distributed to the respondents and 327 of them were returned and usable. Correlation and regression analysis were adopted to analyse all data. The findings indicated that all the independent variables (Word-of-mouth, Trust, Reputation, Loyalty, and Customer Satisfaction) had a certain degree of relationship with Purchase Intention. The results showed that customer satisfaction had the strongest significant positive relationship with purchase intention with correlation value of 0.796, followed by reputation with correlation value of 0.774. Only two variables which are reputation and customer satisfaction influenced purchase intention. The findings suggest that reputation of the company can be an important factor that influences customers’ purchase intentions. In other words, good reputation of an insurance company brings good impact in terms of image to customers. Customers will feel confident towards the insurance company and increase their intention to purchas