An Examination of the Factors Affecting Malaysian Consumer’s Renewal of Car Insurance Through Online
Abstract
Businesses can conduct virtually with cashless payment options, including car insurance renewal which can be made via insurance companies' official websites. This research aims to discover motorcar consumers’ satisfaction towards online car insurance in Malaysia. This study has proposed TAM to explain the trust, service quality, perceived risk and perceived value towards online customer insurance renewal. An online questionnaire was employed in this study to yield responses from different social media channels and the authorised dealerships’ automotive showrooms. Subsequently, 166 responses were obtained and analysed with PLS-SEM. The findings demonstrate that service quality and perceived value positively impact online customer insurance renewal. Surprisingly, trust and perceived risk do not affect online customer insurance renewal. From a managerial perception, guidelines are provided for insurance agencies, and insurance companies strategically plan their marketing and encourage Malaysian consumers to renew their insurance online.
References
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Toukabri, M. T. and Ettis, S. A. (2021). The acceptance and behavior towards e-insurance, International Journal of E-Business Research (IJEBR), 17(2), 24-39.
Venkatesh, V., Thong, J. Y., Chan, F. K. and Hu, P. J. (2016). Managing citizens’ uncertainty in e-government services: The mediating and moderating roles of transparency and trust, Information Systems Research, 27(1), 87-111.
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Al-Emran, M. and Granić, A. (2021). Is it still valid or outdated? A bibliometric analysis of the technology acceptance model and its applications from 2010 to 2020. In Recent advances in technology acceptance models and theories (pp. 1-12). Springer, Cham.
Anwar, A., Thongpapanl, N. and Ashraf, A. R. (2021). Strategic imperatives of mobile commerce in developing countries: the influence of consumer innovativeness, ubiquity, perceived value, risk, and cost on usage, Journal of Strategic Marketing, 29(8), 722-742.
Arthi, J. (2017). Study and comparison of mobile banking applications-Towards the trust perspective, National Journal of System and Information Technology, 10(2), 155.
Bhalerao, K., Mahale, P., Jyothi, N. V. and Yelikar, B. (2021). Technology: A pathway towards sustainability, Academy of Marketing Studies Journal, 25(5), 1-9.
Carter, L., Weerakkody, V., Phillips, B. and Dwivedi, Y. K. (2016). Citizen adoption of e-government services: Exploring citizen perceptions of online services in the United States and United Kingdom, Information Systems Management, 33(2), 124-140.
Chimedtseren, E. and Safari, M. (2016). Service quality factors affecting purchase intention of life insurance products, Journal of Insurance and Financial Management, 1(1), 1-12.
Chiu, C. M., Wang, E. T., Fang, Y. H. and Huang, H.-Y. (2014). Understanding customers‘ repeat purchase intentions in B2C e-commerce: The roles of utilitarian value, hedonic value and perceived risk, Information Systems Journal, 24(1), 85–114.
Cova, B., Gaglio, G., Weber, J. and Chanial, P. (2018). Organizational sensemaking of non-ethical consumer behavior: Case study of a French mutual insurance company, Journal of Business Ethics, 148(4), 783-799.
Davis, F. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology, MIS Quarterly, 13(3), 319-340.
De Smidt, G. and Botzen, W. (2018). Perceptions of corporate cyber risks and insurance decision-making, The Geneva Papers on Risk and Insurance-Issues and Practice, 43(2), 239-274.
Fachrudin, K. A. and Silalahi, A. S. (2022). A Study of the Use of Cashless Payments in Relation to Income, Financial Behavior, and Almsgiving Behavior in Sumatera, Indonesia. In Second International Conference on Public Policy, Social Computing and Development (ICOPOSDEV 2021) (pp. 128-132). Atlantis Press.
Guthrie, C., Fosso-Wamba, S. and Arnaud, J. B. (2021). Online consumer resilience during a pandemic: An exploratory study of e-commerce behavior before, during and after a COVID-19 lockdown, Journal of Retailing and Consumer Services, 61, 102570.
Han, F. and Li, B. (2020). Exploring the effect of an enhanced e-commerce institutional mechanism on online shopping intention in the context of e-commerce poverty alleviation, Information Technology & People, 34(1), 93-122.
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M. and Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.
Hajli, N., Sims, J., Zadeh, A. H. and Richard, M. O. (2017). A social commerce investigation of the role of trust in a social networking site on purchase intentions, Journal of Business Research, 71, 133-141.
Harrigan, M., Feddema, K., Wang, S., Harrigan, P. and Diot, E. (2021). How trust leads to online purchase intention founded in perceived usefulness and peer communication, Journal of Consumer Behaviour, 20(5), 1297-1312.
Hult, G. T. M., Sharma, P. N., Morgeson III, F. V. and Zhang, Y. (2019). Antecedents and consequences of customer satisfaction: Do they differ across online and offline purchases?, Journal of Retailing, 95(1), 10-23.
Kleijnen, M., De Ruyter, K. and Wetzels, M. (2007). An assessment of value creation in mobile service delivery and the moderating role of time consciousness, Journal of Retailing, 83(1), 33–46.
Kong, F. (2021). How to understand the role of insurance mechanism in a global pandemic?, International Journal of Environmental Research and Public Health, 18(13), 6743.
Kwenye, J. M. and Freimund, W. (2016). Domestic tourists' loyalty to a local natural tourist setting: Examining predictors from relational and transactional perspectives using a Zambian context, Tourism Management Perspectives, 20, 161-173.
Liu, F., Zhao, X., Chau, P. Y. and Tang, Q. (2015). Roles of perceived value and individual differences in the acceptance of mobile coupon applications, Internet Research, 25(3), 471-495.
Luca, M. (2017). Designing Online Marketplaces: Trust and Reputation Mechanisms. Chicago: Innovation Policy and the Economy.
Nassiri Pirbazari, K. and Jalilian, K. (2020). Designing an optimal customer satisfaction model in automotive industry, Journal of Control, Automation and Electrical Systems, 31(1), 31-39.
Odoyo, F. S. and Nyangosi, R. (2011). E-insurance: An empirical study of perceived benefits, International Journal of Business and Social Science, 2(21), 166-171.
Pothal, L. K., Tripathy, S. and Dash, A. (2022). Determinants of factors for service quality excellence at dealer end leading to CRM-an AHP approach, International Journal of Business Excellence, 28(1), 101-117.
Raman, P. (2016). Improving customer satisfaction by increasing the reach: Life insurance corporation of India, Emerald Emerging Markets Case Studies, 6(2), 11-23.
Ramesh, A., Murthy, S., Sreenivasa, K. and Vijay, P. (2016). Consumer involvement and perceived risk-An examination in the purchase of life insurance of life insurance corporation of India (LIC), Journal of Marketing Vistas, 6(2), 59-68.
Rejikumar, G. and Saha, R. (2021). An integrated framework for service quality, choice overload, customer involvement and satisfaction: Evidence from India’s non-life insurance sector, Management Decision, 59(4), 801-828.
Şahin, A., Kitapçi, H., Altindağ, E. and Gök, M. S. (2017). Investigating the impacts of brand experience and service quality, International Journal of Market Research, 59(6), 707-724.
Saunders, M., Lewis, P. H. I. L. I. P. and Thornhill, A. D. R. I. A. N. (2007). Research methods. Business Students 4th edition Pearson Education Limited, England.
Shafee, N. B., Suhaimi, S., Hashim, H., Mohamed, Z. S. S., Mohd, S. N. H. and Wei, L. Y. (2020). Determinants of acceptance Takaful insurance in Malaysia, International Journal of Psychosocial Rehabilitation, 24(3), 742-751.
Shaikh, M. K., Palaniappan, S., Khodadadi, T., Khurram, M., Khan, M. H. and Juzer, H. (2020, February). Insurematic: Gernalized framework for Insurance company to Automate Insurance process. In 2020 International Conference on Information Science and Communication Technology (ICISCT) (pp. 1-4). IEEE.
Shevchuk, O., Kondrat, I. and Stanienda, J. (2020). Pandemic as an accelerator of digital transformation in the insurance industry: Evidence from Ukraine, Insurance Markets and Companies, 11(1), 30.
Simmering, M. J., Fuller, C. M., Richardson, H. A., Ocal, Y. and Atinc, G. M. (2015). Marker variable choice, reporting, and interpretation in the detection of common method variance: A review and demonstration, Organizational Research Methods, 18(3), 473-511.
Singh, G., Kaur, H. and Singh, A. (2018). Drop shipping in e-commerce: A perspective, Proceedings of the 2018 9th International Conference on E-business, Management and Economics, 7- 14.
Staudt, Y., & Wagner, J. (2021). Assessing the performance of random forests for modeling claim severity in collision car insurance, Risks, 9(3), 53.
Steiner, P. H. and Maas, P. (2018). When customers are willing to disclose information in the insurance industry, International Journal of Bank Marketing, 36(6), 1015-1033.
Thiruvattal, E. and Petrovici, D. (2015). Exploring the dimensions of customer perceived value of general insurance: A cross-sectional study in the Uae. In Proceedings of the 2008 Academy of Marketing Science (AMS) Annual Conference (pp. 95-99). Springer, Cham.
Toukabri, M. T. and Ettis, S. A. (2021). The acceptance and behavior towards e-insurance, International Journal of E-Business Research (IJEBR), 17(2), 24-39.
Venkatesh, V., Thong, J. Y., Chan, F. K. and Hu, P. J. (2016). Managing citizens’ uncertainty in e-government services: The mediating and moderating roles of transparency and trust, Information Systems Research, 27(1), 87-111.
Volosovych, S., Zelenitsa, I., Szymla, W. and Mamchur, R. (2021). Transformation of insurance technologies in the context of a pandemic, Insurance Markets and Companies, 12(1), 1.
Widjaja, F., Widnyana, I. W. and Sapta, I. K. S. (2021). The role of brand image abd trust in mediation the influence of service quality on brand loyalty at Pt. Asuransu Sinar Mas Denpasar, Journal of Advances in Social Science and Hu
Published
2023-09-01
How to Cite
TEOH, Jeck-Khee; GOH, Yen-Nee; LIM, Chee-Ngee.
An Examination of the Factors Affecting Malaysian Consumer’s Renewal of Car Insurance Through Online.
International Journal of Business and Technology Management, [S.l.], v. 5, n. 3, p. 57-68, sep. 2023.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/23736>. Date accessed: 06 dec. 2023.
Section
Articles
