Application of the Extended Theory of Reasoned Action to Life Insurance Purchase Decision

Abstract

The purpose of this research was to study the application of the extended theory of reasoned action to life insurance purchase decision. The researchers extended the theory of reasoned action by adding four other essential constructs into the conceptual framework. They were attitude toward saving and attitude toward the brand as well as perceived quality and trustworthiness of salespeople. We collected data from four comparable life insurance companies by asking them to assist in collecting data through their salespeople. We distributed 100 questionnaires to each company. The total was 400. The usable questionnaires received were 296.When finishing collecting data, we computed Cronbach's alphas to examine the reliability of those constructs with multiple items. The results were satisfactory. Then, we used logistic regression to test our hypotheses because our dependent variable was a binary scale, i.e., purchase or not purchase. The findings showed that attitude toward saving, trustworthiness, attitude toward buying, and perceived quality had significant and positive effects on purchase decision. On the other hand, attitude toward the brand and subjective norm were found to have no effects.