INFLUENCERS ON NON-LIFE INSURANCE

PURCHASE AMONG CAR OWNERS

An Undergraduate Thesis Presented to the Faculty of

College of Business Administration
Interface College of Technology
Davao City

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Business Administration
Major in Financial Management

Galendez, Ana Mae

September 2017
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Chapter 1

INTRODUCTION

Background of the Study

Featured in today’s economy, is that gaining insurance has become

more important than ever before. As a service industry that an agent or broker

needs to build a relationship and focus more on customer attitudes and

attributes, non-life insurance companies have been playing the role of financial

intermediaries and performing extremely useful functions in our economy

(Jothi, 2012).

Other countries features most of the people who owns a car has car

insurance. Just like in Germany wherein car owners are willing to pay 1000

euros per year just to have a car insurance. In the United States of America,

having an auto insurance is a mandatory in its 45 states and there are some

states that does not allow people to have a car without a car insurance

(International Driving Authority, 2017).

In the Philippines, car insurance is a new type of insurance, where only

few car owners has their auto insurance to insure the damage of their cars if

they get into an accident, and now it car insurance is being introduces to

Filipinos. Escano (2017) mentioned that the Land Transport Office is now

implementing a policy that a vehicle cannot be renew or registered if there is no

Compulsory Third Party Liability insurance and this is not only in manila but all

over the country. The (CTPL) is a type of car insurance in the Philippines that

protects the car owner from any accident accountability.

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Davao City CTTMO are planning to have a word with car insurance

providers to help ease the traffic problems, and ease the burden of the car

owners when there is an accident (Casamayor, 2018). Companies that feature

car insurance must find ways to introduce their product, where customers can

benefit and can reach them with less cost. Especially in the Philippines, where

car insurance is a new type of insurance and most people doesn’t know how it

works or doesn’t even know that it exist. Car owners in the Philippines are not

aware of how much will it cost them just by having their broken car fixed than

getting a car insurance (Reyes, 2017).

This research is to help the car insurance companies and to present the

factors that influence the purchase decision of car owners when buying a non-

life insurance.

Statement of the Problem

The study aimed to determine the level of Influencers on Purchase

Decision among Car Owners. Specifically, it sought to answer the following

questions:

1. What is the profile of the respondents in terms of:

1.1 Age;

1.2 Sex;

1.3 Civil Status; and

1.4 Monthly Income?

2. What is the level of Influencers on Purchase Decision among Car

Owners in terms of:

2.1 Word of Mouth;

2.2 Website Information; and

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2.3 Online Review?

3. Is there significant differences in the Influencers on Purchase Decision

among Car Owners when analyzed according to their profile?

Hypothesis

Ho: There is no significant difference in determining Influencers on

Purchase Decision among Car Owners when analyzed according to their

profile.

Review of Related Literature

This study presents the various concepts, facts, and theories from the

different authors and reading materials so that the readers provided with a clear

understanding of what that study is all about.

Influencers on Purchase Decision

One of the steps of the customer buying process is the purchasing

decision. Executing the right decision is necessary to assure efficiency and

effectivity. In order to do so, the factors affecting the decision of consumers

must be reliable, justified and relevant. Usually, the main motivation of

consumers on why they buy such products they avail because of a need or

necessity. In fact, need is the catalyst and the factor that initiates buying

process. In buying products especially insurance, not everyone is an expert in

searching for the right type to be availed. One might rely on advices from his

family or friends, others may get information from advertisements and some

gain idea from relatable experiences. Information search is classified in to two

types. Internal information search which is motivated by the already instilled

knowledge by consumers which may be experiences and memories of previous

purchases. In some instances where consumers have no idea about the

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product or the services they need, external information search must be

equipped. This is also called perception process or getting information through

word of mouth communication (Dinesh, 2016).

Placing focus on specific key individuals rather than the market itself is

a key feature of influencer marketing. People perceive influencer marketing as

the appearance of noted individuals such as celebrities, athletes and

philanthropist that endorse certain products and advocacies. However, this

concern differs when it comes to influencing the purchase activity of individuals.

Nowadays, people are being more influenced by social media which is

transmitted through the biggest information channel which is the Internet. With

the availability of social media, companies regardless of size and income may

now be able to reach their desired target markets. Influencing individuals

through the internet may be done through blog posts, tweets, online reviews

and videos (Glucksman, 2017).

Distinguishing and creating relationships with people who has an impact

towards an audience is a manifestation of marketing with influencers.

Companies care about the content they are posting and whether these affects

their audience or not, and if so, would it be negative or positive. Media channels

or websites such as YouTube play a big factor in convincing patrons to buy their

promoted products, to participate in activities or even to hand out donations to

specific causes. Other online factors that consumers consider to be vital are

reputation, customer engagement and the relevance of these social media

influencers who may be websites or internet icons (Lepisto & Vahajylkka, 2017).

The influence that these social influencers are evident regardless of

internet literacy. In fact, 40 percent of people say that they are motivated to buy
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certain products not because celebrities promote it but because they see it

being plugged or promoted by internet icons or social media personalities.

Moreover, 49 percent of online consumers also value the online comments and

suggestions being handed out by other online customers. Customers also value

online reviews given by previous customers as 92 percent of them trust

influencer reviews over traditional advertisements or celebrity endorsements.

Once a product is utilized, it is now in the instinct of consumers to help other

interested individuals by promoting it through online channels (Saleh, 2016).

Individuals aged 18-34 years old are the most in touch users of the

Internet and because of this, most of their purchasing decisions are inspired by

information they get from internet websites and channels of social media. Also

categorized are the types of influencers which is grouped in accordance to

number of online followers or patrons. Micro influencers or internet icons with

250,000 or less followers are the ones being considered the most reliable as

consumers see their opinions and recommendations to be fair and not

motivated by money (Kullin, 2018).

With outlets such as Facebook, Instagram, and Youtube, consumers are

now equipped with the ability to voice out concerns, comments, and

suggestions towards the companies or providers. However, these comments

not only affects the companies but also has an effect to the perspective of

consumers towards the products the provider offers. This has led to growing

concerns about businesses having a need to generate positive customer

experiences in order to minimize negative word of mouth messages that is

evidently transmitted through social media towards potential customers (Sudha

& Sheena, 2017).

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Word of Mouth

The Internet is a huge factor on why there is a great optimization of

conducting business and establishing buyer-seller relationships. The

emergence of e-commerce, social media and company websites has recently

developed and became a crucial source for communicating marketing

messages around the world. This trend made researchers and marketers be

interested in the value of advertising and the possibility of being able to

influence on multiple platforms. This idea is known as influencer marketing

which is the capability to influence or to contribute to the decision an individual

is about to do (Lisichkova & Othman 2017).

People buy products in order to satisfy their needs. However, nowadays

what influences a person to buy a good is not just for pleasure and enjoyment.

People buy products such as insurance to avoid or lessen casualty. Further,

what directly influences the purchase decision of an individual are the advices,

comments, and suggestions of family members and friends. Social media has

also been a channel in affecting the purchase process of individuals though

posts, videos, reviews and articles (Johnson, 2014).

Laja (2017), if an entrepreneur would like for his product or service to be

patronized by many, understanding how consumers execute purchase

decisions is vital. Not only do they consider the overall product quality and seller

reputation, they also consider other factors that may influence them in deciding

with regards to their purchase.

Word of mouth pertains generally to oral communication wherein an

informal discourse about a particular event or thing - may it be in the form of

opinions or personal experiences - happens between related or unrelated

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parties. It may also be an exchange of comments, thoughts, and ideas between

two individuals in which none represents a marketing source. With the

emergence of technology such as Internet, WOM does not necessarily have to

be a face-to-face interaction between two people (Carl, 2006).

In a seller-buyer relationship, the word of mouth phenomena is actually

being used actively. A customer disseminates information concerning services

and product consumption. Car insurance, in particular, is a service industry that

an agent or broker needs to build relationship and focus more on customer

attitudes and attributes. A customer that is satisfied willingly purchase products

or services according to his/her needs. Customers encourages others to buy

products in a company because they are satisfied of the products they

purchase, through this a company will benefit and increase sales (Kaur, 2015).

Majtanova and Brokesova (2012) stated in their study that the word of mouth

(WOM) effect has created a big impact on them for its saves time. It is used

by companies as a technique to promote services or products to potential

customers and also to keep in touch with current clients. The mere fact that this

strategy needs just at least one key person to relay the information to another

party creates a domino effect of communication and thus makes it an efficient

marketing strategy.

A recent study shows that 64% of marketing managers believe that word

of mouth is the most effective form of marketing. This study means that word of

mouth which may take form electronically is among one of the more effective

agents of marketing and promotion of a product to the market (Whitler, 2014).

The WOM effect may produce a positive or negative statement to a

person in respect to their varied situations. Customers sometimes tend to

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exaggerate information about their experience about a product and when they

share it to others it tends to be negative. This happens when a customer who

availed the product is unsatisfied. This affects the perspective of future

customers towards the product that may lead to some of them being skeptic

about purchasing it (Picoult, 2016).

The factor of consumer emotion and choice has an impact on word of

mouth. It showed that positive WOM influenced the behavioral attitude and

intention significantly and negative WOM only slightly affected the behavioral

intention. Negative word of mouth however had a strong impact on behavioral

attitudes through negative emotions. Conclusively, the Word-of-mouth (WOM)

has been known to have a major influence on consumer purchasing behavior

for decades and is often regarded as a critical aspect of brand building, as

consumers share their experiences and opinions, the need for actual and

specific advertising decreases (Martensen & Gronholdt, 2016).

In a practical setup, people tend to prefer and follow advice from family

members and friends over experts in the choice stage. Basically, people tend

to follow those whom they trust and gain confidence with, thus family members

and friends are on top of the list. Word of mouth is essentially vital, yet it's just

as successful as the system of the individuals who spread it (Lee, Ariff, Zakuan,

Salaiman, & Saman, 2016).

Companies that want to create positive spokespersons should aim at

providing good customer service and creating a great end to customer

experience. They should also involve customers in social media and give

testimonials and reviews. For locally operating businesses, nothing can beat

contribute to the local community and participate in local events. You may also
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want to give lessons or seminars to meet prospective clients in your area. It is

important to monitor your reputation online and locally and to act swiftly on any

complaints. Unfortunately, if things go wrong, consumers are more likely to talk

about your business, regardless of product quality, and bad news will then be

spreading quickly (Neilsen, 2015).

People have communicated constantly with each other, shared and

talked about everything, everywhere at any time. Therefore, people can easily

explain their latest experience and give their experience with the product, the

website, the eminence of the service, etc. In a fast - moving world and in our

modern customer society, where everything is rapidly changing, where

products and services are rapidly out of date and where companies offer

customers an increasingly diverse collection of products and services,

customers have to face the brutal competition that engages companies in

magnetizing customers. In an organization that wants to maintain existence and

continuity in the market must employ marketing strategies, investing their

current customers as unpaid markets through the word of mouth (Khan, Shah,

Zhai, & Yan, 2017).

For several decades now, word of mouth or consumer-to-consumer

interaction has been the focus of the research fraternity. Researchers have

already demonstrated the increasing influence of WOM and marketers have

recognized it as a very credible form of marketing information, As the BCG

report shows that friends, colleagues or other consumers can make references

and recommendations beyond anything else (Kundu & Rajan, 2017).

In the modern society that we are now, we cannot deny the fact that

many platforms have been made available that serves as another medium for
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information communication. We, the technology-influenced audience, have

been spreading opinions on various social media platforms to share or inform

others about our random whereabouts and whatnot. Indirectly, without our

awareness, we are actually contributing and serving as marketers thru opinion

or suggestions of the services and products that we may post online. Thus the

word of mouth thru this platform is still evident and effective. It is even stronger

where there is more intense exchange through digital channels, such as the

internet and social media (Da Costa et al., 2018). WOM pays an important role

in affecting consumer’s attitudes and intentions, that literature indicates WOM

is more influential than editorial, recommendations or advertisement because

of its credibility and persuasiveness (Kucukemiroglu & Kara 2015).

Word of mouth is the best tool of promotion which depends on happy

customers and fans to organically promote a brand. This can be done in many

media forms, such as images, videos, vlogs, etc.. It is a great way to promote your

product, as those who create organic content really care about it. Since this form

of marketing is free and can lead to additional sales without your staff doing

anything, you can sell yourself through your customers with a high - quality

product that is easy to capture and describe (Ferreira, 2018).

As a mechanism that distinguishes companies from their competitors

because of their independence and credibility, word of the mouth has recently

become more important Indications that in order to achieve a competitive edge,

effective marketing performance requires good interpersonal communication,

because people communicate in many ways like face - to - face interactions,

phone calls and letters or exchange views via email, blogs, etc. The customer

talks through all possible channels and becomes more and more channel-
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agnostic. People talk and exchange opinions and thoughts on many things like

the weather, their children, their health, news, other people, the latest gossip,

their feelings, recent events, good old days and there are many reasons people

like to talk to products and brands about their experiences. These experiences,

brand experiences and individual customer experiences as well as general

opinions on perceived levels of customer experience, customer service,

satisfaction, etc. are shared and often very personal and subjective (Medjahdi

& Saoudi, 2016).

Mutonyi and Gyau (2013) emphasized that marketing performance is a

multidimensional structure made up of effectiveness, efficiency and

adaptability, and concerns market awareness and responses to the positional

advantages achieved. From a customer perspective, it can be defined as

cognitive and affective responses (e.g. brand awareness and perceived quality)

and subsequent effects on behavior (e.g. purchase decision-making and

actions) prospects and customers in the target market for the organization's

realized positional advantages. Marketing performance can therefore be

measured from the company's perspective through the efficiency of marketing

operations and from the customer's perspective through the efficiency and

adaptability of its output to customer needs, requirements and preferences.

This enables them to gain their contentment and loyalty.

Website Information

One of the factors that affect the buyer’s behavior is website information.

Part of the consumer process is the second step which is the “Information

Search” wherein consumers search for information about the product or

services they want. Search for information may be done in an offline manner
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but with our technology today, most of us find information about a commodity

through the Internet. Majority of these queries lead directly to the provider

company’s website. Moreover, information search may vary when individuals

do it online compared to those who do it offline (Sujata, Noopur, Neethi, Jubin,

& Udit, 2016).

Thompson and Yeong (2003) added that on the part of the providing

companies, the benefit of disclosing company and product information in their

websites enables them to reach new market segments. By doing this, they may

sell their product locally and even regionally. With the concept of the Internet,

companies now find it a necessity to know their customers, what to sell them,

and their buying patterns. Marketers will function better once they know and

understand the decision process potential customers undergo. By posting

products and service information through the company’s website helps

potential customers know the products they want to buy. This move significantly

helps the customer in his decision making process.

A website may be considered as one of the most powerful agent in

promoting your company and your product to the market. Consumers utilize

companies’ websites as a place where they can find suggestions of a product,

comments by other customers and in some cases, credibility of both the

provider and the services they are offering. In a survey made by

RainToday.com, out of 200 people only 6 thinks that websites does not make

an influence in a customer’s decision whether to buy or not. By making a

website, company’s show that they are professionals, that they are worthy of

being considered and establish credibility and reliability to the market (Hopkins,

2013).
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Customers consider web experience vital. A company’s website is hailed

as the face of its brand in the digital world. A recent study made by Adobe

Marketing Discovery concluded that out of 1,000 consumers, 88% collect

information from websites after gaining interest in a product that is introduced

through mass media, news, and journals. Adding to that, after knowing certain

products through in-store experience, 62% of consumers browse their

computers and smartphones to look up the provider’s website and know more

about the product. Garnering product information through television,

newspapers and magazines is no longer enough for some customers. This

leads to them browsing company websites to further educate themselves of the

product they are interested (Kinimoto, 2015).

Not only does an online customer consider content but also the design

of the website. Good website design affects the customer’s shopping behavior.

Certain website design and sophistication can inspire customers to use more

money, to procure more products and services, and potentially to come back

again for future purchases. Psychologically-conscious designs on your

websites can upsurge the stimulus of the customers who browses your website

(Andrew, 2015).

Websites are not only offering products information but it also allows

customer to communicate with other customers wherein they can give insights

and experiences about the products and services of that certain company,

which can have a positive and a negative effect for a company, just by sharing

an information can ruin a company, but it can also boost the company’s sales.

Website information provides awareness to the customer on how risky or good

the insurance company is. In which prospect customers can use this
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information to analyze the data that the companies are putting up in the website.

(Klier, Klier, Probst, & Jeong, 2014).

Redsicker (2014) stated that most companies are trying to engage in

website to increase the customer’s knowledge about the different kinds of

brands and to gain more customers. There are tons of business using websites

to spread the information of their new released product. Some merchants do

think that using social media can change the consumers purchasing decision.

There are only few companies that are not using websites to engage to their

customers and think that there no connection at all.

On the other hand, customers would often trust website information and

has an impact in purchase decisions. Some people browse the Internet before

buying a product to know more about product properties, advantages and

disadvantages. Website information’s positivity can change the attitude of the

customer towards the company and its products. Just by knowing the

information of the things that the consumers wanted to buy it attracts the

attention of the customers and not only that but the positivity of the relationship

of the buyer and seller can also boost (Liu & Mattila, 2017).

A salesman working all day and night is the best comparison to a

company’s marketing website. A well-working website attracts leads, lures

potential clients to see and evaluate your products, interact with customers, and

may even fix appointments and closing sales. In contrast with a human

salesman, a company’s website does these tasks tirelessly regardless which

makes it one of the pillars of your business’ success. However, if a website isn’t

well-designed, not enhanced, and out of date, what a company has is an under-

utilized incompetent selling machine. Moreover, a company website’s job does

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not when an online sale has been done, or when a customer abruptly stop

browsing. A well-functioning website should also be able to collect data such

as customer information. This move ensures that a follow up can occur

(Congdon, 2018).

For companies that offers services, what customers frequently check in

a company’s website is the section where past clients convene and discuss

their individual experiences. In a study that was conducted by Statista, they

predicted that approximately 2 billion people will buy online goods and services

by the year 2019. A company that regularly updates their website is 67% more

likely to receive more leads than those that leave their websites untidy. The

idea of regularly apprising information in your website gives you website

authority and enables the readers to read latest information about products and

offers. This will also encourage online customers to engage in discussion with

you through commenting and share your content through social media outlets.

Considering that both website and social media outlets are now accessible

online through mobile internet surfing, it is now easy for customers to perform

these actions (Villegas, 2016).

Linton (2019), utilizing the internet to maximize marketing activities

aligns with the way consumers are making purchasing decisions. There is an

increasing number of those who employ social media and research through

mobile Internet portals to perform product and price inquiry before executing

critical purchase decisions. Another perk of having marketing operations

through the website is that companies may be able to operate and make sales

even though it’s not store hours. It expands your operations and overcomes the

barriers of distance which means if a business only resides locally, it may now
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be able to join the market of national and international products. By doing this

as well, companies are enabled to export business without even making a

network of distributors in different countries. Adding to that, marketing cost

through website is less costly than having them through physical retail. Website

marketing also gives customers a broader set of choices and even

personalization of offers and products.

Online review

One of the manifests that our generation is more into the modern

technology-based industry is the utilization of online reviews. It can be noted

that there is a significantly lower search cost due to the widespread use of the

Internet and other information technologies - and is deemed to be one of the

most important impact of such. With this phenomena, people can refer and seek

reviews of products and the like through browsing the Internet. Literature

provide that this affects the behavior and intent of the consumers to purchase

or not depending on how convinced they are from the online consumers reviews

they had read (Chen, Wu, & Yu, 2004 ).

Feedback from other users may be considered as a quality index for a

product of interest. Often we come to a time where we are to purchase

something we have less or zero knowledge about. During these times of

uncertainty, we practically seek to others’ opinions or experiences before

actually buying the product, especially since as a wise buyer we are to consider

its quality. In this regard, it can potentially reduce the quality uncertainty faced

by a potential consumer, and would result to a higher degree of confidence to

the customer’s purchasing decision. When quality uncertainty is reduced, we

would observe that consumers are more likely to purchase books with higher
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ratings than those with lower ratings, other things being equal (Schubert &

Ginsburg, 2000).

While some believe of its powerful impact on possible purchasing

decisions, these feedback mechanisms - online reviews, in particular for this

study - are likely to be effective only if the potential consumers consider that the

reviews made available is an accurate and credible depiction of the

marketplace and the buyers’ experiences. As a conclusion, the authors stated

that if perhaps the consumers do not find the ratings trustworthy or

meaningful, they will still not take these ratings or reviews into account in their

buying decisions. Consumers uses the information to make a decisions

whether to buy or not and it can also tell if the products is good or not (Mo, Li,

& Fan, 2015).

While consumers can easily gain access reviews online, they are not

only paying attention to the quantity of reviews, they’re looking at the average

star ratings, timeliness of the reviews, the details provided and whether or not

the business has responded to any reviews. Customers do trust and engage

with online reviews regularly and these reviews remain very influential when it

comes to making purchasing decisions (Karimi & Wang, 2017).

Many other factors may be considered that may also lead to a situation

where consumers do not “believe” so much in the ratings or reviews they come

across online. For instance, when there is high variance in the consumers’

opinions on the same product, or when the ratings represent only a small

number of relevant and credible consumer opinions (Chevalier & Mayzlin 2003).

In reference with, online customer review systems are one of the most

powerful channels to generate online word-of-mouth through the forms or

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reviews and ratings. With the popularity of such activity, an increasing number

of businesses have started to offer online word-of-mouth services. An example

is the Amazon.com which is well-known for its extensive customer review

systems. Major television networks such as ABC, CBS, and NBC sponsor

Usenet newsgroups to elicit viewers to talk about their programs and shows

(Fattah, 2001; Dellarocas, 2003).

Almost every studio and film distributor has utilized the Web as a critical

marketing venue by creating websites and discussion forums for their movies.

Such factor is then considered and can be concluded that customers make

purchase decisions using a combination of old media, new media, and old-

fashioned conversations with friends and family (Laja, 2017).

Customer feedbacks also plays a major role hotel and tourism industry

as online reviews enable tourists to create a more efficient pre-purchase

evaluation. Nowadays, information about hotel and travel services are

abundant in the internet, thus, future customers may now browse information

or look for reviews from former patrons of their prospected hotel and travel

services. Moreover, their study helped hotel firms appreciate even the negative

reviews of their services because this will educate them of the areas they need

to improve. Once there is already action on the negative feedbacks they gained,

number of negative reviews by discontented clients will decrease. This will then

lead a changing of balance of reviews that will likely be positive in the eyes of

the customers that will then write reviews about the hotel services. Their study

also expounded that companies who tend to take a more hands-on method on

taking care of customer welfare and respecting their comments will make the

company less prone to online attacks (Browning, Fu, So, & Sparks, 2013).
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Online feedbacks and comments from customer indeed affects the

purchase probability. Agreeing Menfors and Ferstedt’s (2015) findings that

lengthier reviews deliver more data. However, their study also suggested that

companies should instruct website designers to key customers with the average

number of words for them to be able to construct a review which will not be too

short but not too long as well. Next, when dealing with negative feedbacks,

companies should not ignore but should engage in a lively private conversation

with the sender. This will enable the sender which also the customer to feel that

his negative review is taken into consideration and that his opinion matters

(Maslowska, Bernritter, & Malthouse, 2017).

Further, online user reviews can influence product sales through either

awareness effects or persuasive effects. Awareness effects indicate that

reviews convey the existence of the product and thereby put it in the choice set

of consumers. Persuasive effects, in contrast, are to shape consumers'

attitudes and evaluation towards the product and ultimately influence their

purchase decision. These two effects have been studied intensively in prior

literature in marketing on the effect of advertising. It is found that advertising

has a significant positive effect on brand awareness, but no effect on perceived

quality (Clark, Doraszelski, & Dranganska, 2007).

One cannot also underestimate the effects of misleading or fake reviews

towards a company’s reputation. The study implied that fake online reviews can

eventually prime to loss of consumer confidence in the market. Valant also

introduced the two main categories of online reviews – One with open systems

that allow consumers to access the website to write a review, and the other with

a closed system that only confirmed buyers are given the privilege to construct
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a review. Adding to that, she stated the current problem where digital media’s

credibility is being questioned. She stated that this channel of communication

is too influential that it causes a bandwagon effect. In this study, the two types

of fake news was also presented. Choosing the best car insurance means

comparing the satisfaction of claims, prices and services offered. Customers

can view ratings and reviews and browse the buying guide of the company to

find the best car insurance (Valant, 2015).

Consumers have a lot of power to make or break the reputation of your

company through websites like Google Reviews, Yelp, and Facebook reviews.

In fact, 97% of consumers read local business online reviews in 2017 and 85%

of consumers trust online reviews. It is important to take the time to request

these reviews. Online reputation management requires insurance companies

to monitor sites and be proactive in addressing issues (Martensen, 2016).

Search engines and social media have become the modern versions of

the business directory of the phone book in today's world, and reviews can be

the online equivalent of a referral. More than 80% of consumers are researching

online before making a major purchase. For both customers and business

owners, the Internet is a fantastic tool. It not only helps match clients with the

right business owners, but it also helps companies advertise for little to nothing.

Your website can be more than just a place for providing basic business

information. It can be a way to provide your insurance company with news and

information, customer service and also a great marketing tool (Cain, 2008).

Theoretical and Conceptual Framework

This study was based on the theory of Ehrlich and Fanelli (2012) which

developed the Tactics and Techniques that produce results which states that
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the influencers on purchase decision includes the following: word of mouth,

website information, and online reviews; all of which are factors made

renowned by the Internet. The first influencer is Word of Mouth or the relay of

information such as comments, suggestions and sharing of personal

experiences which is nowadays manifested through the Internet. It is

considered as a powerful form of social communication and has a strong

perception on the human mind. Next is Website Information which is the product

and company details that is published on the official web portal of companies.

Both graphic and content quality is crucial for any online website to attract

customers. The last indicator is Online Review which considers that satisfaction

of customers regarding their experiences manifested by writing messages in

the company website which can be seen by other individuals for future

references.

The study was supported by Moon (2004); consumer’s demographic

characteristics such as gender, age, income, status, education, and occupation

affect his or her adoption of information technology. This study provides an

exploratory model to understand the factors that influence consumers to adopt

the internet instead of traditional channels for information search and product

purchase. The authors reviewed previous established theories on consumer

decision making in offline environments and research findings regarding

consumer behaviour in an online environment.

The variables of the study shown in Figure 1. The indicator of the

perception of influencers in purchasing car insurance which represent the

independent variables consist of Word of Mouth, Website Information and

 22

Main Variable

Influencers on
Purchase Decisions in
Non-life Insurance

 Word of Mouth
 Website
Information
 Online Review

Profile

 Age
 Sex
 Status
 Income

Moderating Variable

Figure 1. Conceptual Framework of the Study

 23

Online Reviews and also the indicator of the profile of the car owners which

represents the moderator variable consists of Age, Sex, Status and Income.

Significance of the Study

The significance of the study is deemed to be relevant to the following:

Insurance Companies. The use of information presented in this study,

that they would be able assess the effectivity of their marketing strategies and

operations. This study would also help them to enhance the attributes of their

products to gain edge over their competitors. More importantly, they will be able

to analyze the factors that contribute to the decision that their customers will

have when buying insurance.

Insurance Investors. The data and analysis provided by this study will

enable customers or investors to know others factors that influence their non-

life purchase decision aside from the ones that they are accustomed to.

Future Researchers. The future researchers may gain insights that

would help them with their further study. They can also use this study as a

secondary source of data with their future related research.

Definition of Terms

For clarification, the operational definition of key terms used in the study,

are provided, to wit:

Purchase Decision. Is the thought process that leads a consumer from

identifying a need, generating options and choosing a specific product and

brand.

Investors. An investor is any person who commits capital with the

expectation of financial returns.

 24

Chapter 2

METHOD

Presented in this chapter is the discussion of the research design, the

procedure of conducting the study and identifying the respondents, and the

instrument and statistically tools to be employed.

Research Design

This study used the descriptive analysis as it involves identifying and

describing the level of influence on non-life insurance purchase among car

owners. The study used a Quantitative Research Method on the collection of

data in which it can get results easily and can be present numerically be analyse

easily (Matthews & Ross, 2010). Quantitative data collected was analyzed,

presented and interpreted using descriptive statistics such as frequencies,

percentages, means while content analysis techniques were used to analyze

qualitative data collected.

Research Respondents

The respondents of this study were the current insurance investors in

Davao City. The study used convenient purposive sampling. The sample was

divided into meaningful segments of insurance investor to determine the

sample size of 100 respondents for a total population of insurance investors.

The researchers themselves administered 100 questionnaires.

The purposive sampling method was used because it was the most

efficient among the probability designs and due to the budgetary and time

constraints of the researchers. The respondents were also chosen in an

 25

unstructured pattern. Further, this sampling method, although not as rigorous

as some sampling methods, is necessary because of its practicality. Besides,

care was used to ensure that the researcher who administers the instrument

would not influence the answer of the respondents.

Research Instrument

In this study, the main instrument that was used is a survey

questionnaire. It consists of questions that was presented to insurance

investors for them to answer and was personally administered to them to be

able to collect the information needed. The questionnaire was formulated by

the researchers and was validated by experts to be used in gathering data that

was written in English and was verbally translated to Visayan dialect by the

researchers in some necessary instances. The questionnaire was divided in to

two parts. The first part consists of the personal information of the respondents

such as age, gender, civil status and income. The second part was used to

determine the level of influence of the said factors to insurance customers. The

researchers determined how these influencers contribute to the decisions the

customers make in choosing their insurance product and its provider.

The questions were measured in a five (5) Likert Scale. The levels of

influence on non-life insurance purchase of car owners were based in the

average weighted mean. These scores are categorized and scaled using the

exact limits with descriptive equivalent.

Scale of Instrument

Range Scale Description Interpretation

5 4.24-5.00 Extremely Likely This means that the respondents

always agreeing with the statement.
 26

4 3.43-4.23 Very Likely This means that the respondents often

agreeing with the statement.
3 2.62-3.42 Likely This means that the respondents
sometimes agreeing with the
statement.

2 1.81-2.61 Unlikely This means that the respondents

seldom agreeing with the statement.
1 1.00-1.80 Extreme Unlikely This means that the respondents never
agreeing with the statement.
Research Procedures

The following steps were undertaken in gathering the significant data for

the study:

1. Permission from the Dean. A letter was submitted to the office of

the dean including request to conduct survey for the productivity, engagement

of insurance companies.

2. Conduct Survey. Upon obtaining information from the dean, a

survey was made among the customers and clients of insurance companies.

3. Collection of Data. The data gathered from the survey were

analyzed and interpreted with the help of a statistician.

Statistical Treatment of Data

The statistical tools employed in treating the problem were the following:

Frequency and Percentage. This tool was used to determine the profile

of respondents.

Mean. This was used to measure the level of influence on non-life

insurance purchase among car owners.

Analysis of Variance (ANOVA). This was used to determine if there is

a significant difference in the level of influence on non-life insurance purchase

among car owners when grouped according to respondent’s profile.

 27

Chapter 3

PRESENTATION AND ANALYSIS OF FINDING

The specific problems presented earlier were answered in this chapter.

The data were presented, analyzed and interpreted based on the research

questions of the study. The data are in a descriptive form placed in numerical

tables. Interpretations of findings are done through inferences and implications,

in determining and describing the level of influence on Non-life Insurance

purchase among car owners. The F-test and the ANOVA was used to

determine the level of influence on Non-life Insurance purchase among car

owners.

The researchers conducted a survey last February 2019 to determine

the level of influence on non-life insurance purchase among car owners along

Claveria Street, Davao City and Sta. Ana Street, Davao City particularly outside

Non-Life Insurance establishments within the said areas.

Profile of the Respondents

Table 1 illustrates the profile of the 100 respondents in this study. Thirty-

seven percent (37%) came from the age bracket of 20 to 25 years old, twenty-

seven percent (27%) of respondents are 26 to 30 years old, Eleven percent

(11%) came from the age bracket of 31 to 35 years old, Nine percent (9%) both

came from the brackets of 36 to 40 years and 41 to 45 years old, Five percent

(5%) came from the age bracket of 46 to 50 years old and only two percent

(2%) came from the age bracket of 51 years old and above. The table also

reflects sex, civil status and income of the respondents. Fifty-two percent (52%)
 28

Table 1. Profile of the Respondents

Profile of the Respondents Frequency Percentage

Age 20 – 25 years old 37 37%
26 – 30 years old 27 27%
31 – 35 years old 11 11%
36 – 40 years old 9 9%
41 – 45 years old 9 9%
46 – 50 years old 5 5%
51 years old and 2 2%
above 100 100%
Total
Sex Male 52 52%
Female 48 48%
Total 100 100%
Civil Status Single 58 58%
Married 42 42%
Total 100 100%
Monthly 20,000 below 38 38%
Income 21,000 – 30,000 22 22%
31,000 – 40,000 24 24%
41,000 – 50,000 8 8%
51,000 above 8 8%
Total 100 100%
percent of the respondents are male, and forty-eight percent of the respondents

are female. With regards to civil status, fifty-eight percent (58%) are single and

forty-two (42%) percent are married. Lastly, in monthly income, thirty-seven

percent (37%) of the respondents has an income of 20,000 and below, twenty-

two percent (22%) has an income of 21,000 to 30,000, twenty-four percent

(24%) has an income of 31,000 to 40,000, eight percent (8%) has an income of

41,000 to 50,000 and eight percent (8%) of respondents has an income of

51,000 and above. These data indicates that the most of the car owners are

males and are particularly with the justifiable amount of monthly income.

Level of Influence on Non-life Insurance Purchase among Car Owners

Table 2 shows the level of influence on non-life insurance purchase

among car owners. The overall mean of 4.14 and overall standard deviation of

0.86 shows the customers are highly influenced by the indicators. The level of
 29

Table 2. Level of Influence on Non-life Insurance purchase among car owners

Indicators Mean Standard Descriptive

Deviation Equivalent
High
Word of Mouth 4.21 0.84

Website Information 4.04 0.86 High

Online Reviews 4.16 0.89 High

Overall Mean 4.14 0.86 High

influence in terms of Word of Mouth has an overall mean of 4.21 and with a

standard deviation of 0.84, wherein the respondents stated that they are highly

influenced. In terms of Website Information which has an overall mean of 4.04

and a standard deviation of 0.86 with a descriptive equivalent of High means

the respondents are highly influenced by this as well. Lastly, when it comes to

Online Reviews, the respondents are also highly influenced by this with it

having an overall mean of 4.16 and with a standard deviation of 0.89.

Level of Influence on Non-life Insurance purchase among Car owners in

terms of Word of Mouth

Table 2a (See Appendix J) shows the level of influence on Non-life

insurance purchase among car owners. This study tries to determine the level

of influence with regards to Word of Mouth. Generally, the respondents said

that they are highly influenced with a mean of 4.21 and a standard deviation of

0.84. Particularly, in the area of ‘Customers can give positive recommendations

of an insurance to other interested individuals’, the respondents are very highly

to be influenced with a mean of 4.21 and a standard deviation of 0.75. In terms

of ‘Customer feedback should be considered in buying insurance’, the mean of

4.14 and a standard deviation of 0.76 respondents said that they are highly

influenced. Regarding if ‘It’s better to ask information about an insurance

 30

service from clients who already benefited from it’, they are very highly

influenced with a mean of 4.22 and a standard deviation of 0.95. In addition, in

the area of ‘Consider buying insurance particularly those with positive

feedbacks through word of mouth’ indicates that respondents are highly

influenced with a mean of 4.19 and a standard deviation of 0.85. Finally, in the

area of ‘Insurance services that has positive word of mouth are more reliable

that those with none’, the respondents are highly influenced with a mean of 4.19

and a standard deviation of 0.84.

According to Trusov et al (2008), word of mouth marketing has caught

the attention of many individuals as well as practitioners. In his study, he cited

that it is the most effective marketing strategy yet the least understood as well.

Word of mouth became a more powerful feature because of the utilization of

Internet. Even though traditional marketing is more convenient and more

proven to be trustworthy, it is also essential to understand the effectiveness of

word of mouth and how it impacts other marketing activities and strategies.

Level of Influence on Non-life Insurance purchase among Car owners in

terms of Website Information

In addition, in Table 2b (See Appendix J) shows that study tries to

measure the level of influence on non-life insurance purchase among car

owners in terms of Website Information. Generally, the respondents said that

they are highly influenced with a mean of 4.04 and the standard deviation of

0.86. The respondents said that in terms of ‘Information of an insurance service

disclosed in the Internet affects my decision on whether to purchase or not’

states that they are very likely to be influenced by this with a mean of 4.04 and

a standarad deviation of 0.81. In the area of ‘Insurance services published in

the web that is backed by more details catches my eye as an investor’, with a
 31

mean of 4.19 and a standard deviation of 0.86 this means that customers are

highly influenced. Further, in the area ‘When buying insurance, it’s better to look

up in the internet its benefits, its terms and company’s credentials’, they said

that they are very likely to be influenced with a mean of 3.94 and a standard

deviation of 0.92 . In addition the respondents were asked in terms of ‘Products

that has been disclosed to the public through the company’s website is highly

preferable’, with a mean of 3.99 and a standard deviation of 0.80 they said that

they are highly to be influenced by this factor. Lastly, in the area of ‘Insurance

Services that has its information available in the internet is trustworthy’, the

respondents said that they are very likely to be influenced with a mean of 4.02

and a standard deviation of 0.90.

On another article by Roesler (2013), marketing on digital channels or

websites has a tremendous effect on in-store buyer behavior. In his article, he

cited that individuals who shop or purchase through the use of computer

devices or mobile phones convert at a 40% higher rate. Adding to that, 75% of

online consumers say that product information found on social channels

influences their decision and their behavior in buying and enhances their loyalty

to the brand as well.

Level of Influence on Non-life Insurance purchase among Car owners in

terms of Online Reviews

In table 2c (See Appendix J), the respondents were asked on their

perception in the area of online reviews, their response is that they are highly

influenced with a mean of 4.16 together with the standard deviation of 0.89. The

respondents said that in the area of ‘Reviews found in the Internet with regards

to a product affects customer’s perspective towards it’, the respondents said

that they are highly influenced with a mean of 4.13 and a standard deviation of
 32

0.90. In terms of ‘Reading online reviews helps a potential investor further

evaluate the insurance services being offered’, with a mean of 4.16 and a

standard deviation of 0.90, the respondents said that they are highly influenced.

In the area of ‘Negative online reviews affect the marketability of the insurance

product or service being offered’, the respondents said that they are highly

influenced with a mean of 4.20 with the standard deviation of 0.79. In terms of

‘Only those actual customers and clients must write online reviews about the

insurance service offered’, with a mean of 4.11 and a standard deviation of

0.94, the respondents said that they are highly influenced. Finally, in terms of

‘Website managers should create a system wherein only those actual clients

and beneficiaries of the insurance may write an online review about it’, the

respondents said that they are highly influenced with a mean of 4.20 and a

standard deviation of 0.92.

In a study conducted by Chen et al. (2017), online reviews have caught

the eye of many marketing scholars who observed the implications of online

consumer product reviews as well as their impacts on the sales and the

marketing strategies. The essence of these reviews may be used to forecast or

predict consumer buying behavior and consumer taste in the upcoming periods.

Significant Difference in the Level of Influence on Non-Insurance

Purchase Among Car Owners According to their Age

In table 3, the indicators of level of influence was measured to determine

if there were significant differences in the area of word of mouth. The F- Test

was used to determine if there were significant differences in the level of

influence when Respondents were grouped according to their age. In the area

of word of mouth, the p- value of 0.486 shows that there were no significant

differences. Therefore, the hypothesis was accepted. Furthermore, in the area

 33

Table 3.Significant Difference in the Level of Influence on Non-Insurance

Purchase Decisions among Car Owners when the Respondents were grouped
According to their Age
Age Sum of DF Mean F Sig. Decision
ANOVA Squares Square on Ho
Word of Between 2.406 6 0.401 0.918 0.486 Accept
Mouth groups HO
Within 40.624 93 0.437
groups
TOTAL 43.048 99
Website Between 1.141 6 0.19 0.502 0.805 Accept
Informati groups HO
on Within 35.21 93 0.379
groups
TOTAL 36.35 99
Online Between 3.842 6 0.64 1.463 0.2 Accept
Review groups HO
Within 40.718 93 0.438
groups
TOTAL 44.56 99
of website information, the p- value of 0.805 shows that there are no significant

differences. Thus, the hypothesis was accepted. Finally, in the area of online

reviews, the p- value of 0.2 means that there are no significant differences.

Since all of the results were greater than the alpha value of 0.05. Therefore,

failed to Reject Ho.

With the emergence of Internet, all individuals from all generations are

now given access to information about insurance products. In a study made by

Lipowski (2017), representatives of different generations maximize their right to

use Internet as means or channel in looking up products. The telephone is also

usually used as means of inquiring and acquiring products.

Significant Difference in the Level of Influence on Non-Insurance

Purchase Among Car Owners According to their Sex

Table 4 portrays the indicators of the level of Influence were measured

to determine if there were significant differences in the area of Sex. The F- test

was used to determine if there were significant differences in the level of

customer satisfaction when respondents were grouped according to their sex.

 34

Table 4. Significant Difference in the Level of Influence on Non-Insurance

Purchase Decisions among Car Owners when the Respondents were grouped
According to their Sex
Sex Sum of DF Mean F Sig. Decision
ANOVA Squares Square on Ho
Word of Between 0.258 1 0.258 0.59 0.444 Accept
Mouth groups HO
Within 42.79 98 0.437
groups
TOTAL 43.048 99
Website Between 0.003 1 0.003 0.008 0.929 Accept
Information groups HO
Within 36.437 98 0.371
groups
TOTAL 36.35 99
Online Between 1.203 1 1.203 2.719 0.102 Accept
Review groups HO
Within 43.357 98 0.442
groups
TOTAL 44.56 99
In the area of word of mouth, the p- value of 0.444 shows that there is no

significant difference. Therefore the hypothesis was accepted. Furthermore, in

the area of website information, the p- value of 0.929 shows that there were no

significant difference. Thus, the hypothesis was accepted. Finally, in the area

of online review, the P- value of 0.102 indicates that no significant different

exists. Since all of the results were greater than the alpha value of 0.05.

Therefore, failed to Reject Ho.

This is supported by the study of Haryanto and Ibrahim (2012), wherein

they said that both male and female customers has a lot of inquiries with

regards to the product with the purpose of evaluating, comparing and analyzing.

Significant Difference in the Level of Influence on Non-Insurance

Purchase Among Car Owners According to their Status

Table 5 presented indicators of the level of influence were measured to

determine if there were significant differences in the area of Word of mouth.

 35

Table 5. Significant Difference in the Level of Influence on Non-Insurance

Purchase Decisions among Car Owners when the Respondents were grouped
According to their Status
Status Sum of DF Mean F Sig. Decision
ANOVA Squares Square on Ho
Word of Between 0.671 1 0.671 1.553 0.216 Accept
Mouth groups HO
Within 42.376 98 0.432
groups
TOTAL 43.048 99
Website Between 0.179 1 0.179 0.485 0.488 Accept
Information groups HO
Within 36.171 98 0.369
groups
TOTAL 36.35 99
Online Between 1.073 1 1.076 2.425 0.123 Accept
Review groups HO
Within 43.484 98 0.444
groups
TOTAL 44.56 99

The F- test was used to determine if there were substantial differences in the

level of customer satisfaction when respondents were grouped according to

their status. The p- value of 0.216 shows that no significant differences exist.

Therefore, the hypothesis was accepted. Next, in the area of website

information, the p- value of 0.488 shows that no significant differences exist.

Thus, the hypothesis was accepted. Further, in the area of online reviews, the

p- value of 0.123 shows that no significant differences exist. Since all of the

results were greater than the alpha value of 0.05. Therefore, failed to Reject

Ho.

Shahriari and Shahriari (2016) claimed in their study that both married

and unmarried individuals are now concerned about their life and non-life

insurances. It is expected that married individuals tend to spend more on life

 36

Table 6. Significant Difference in the Level of Influence on Non-Insurance

Purchase Decisions among Car Owners when the Respondents were grouped
According to their Income

Income Sum of DF Mean F Sig. Decision

ANOVA Squares Square on Ho
Word of Between 4.664 4 1.166 2.886 0.026 Reject
Mouth groups HO
Within 38.384 95 0.404
groups
TOTAL 43.048 99
Website Between 1.99 4 0.498 1.376 0.248 Accept
Information groups HO
Within 34.36 95 0.362
groups
TOTAL 36.35 99
Online Between 0.685 4 0.171 0.371 0.829 Accept
Review groups HO
Within 43.875 95 0.462
groups
TOTAL 44.56 99

insurance than single individuals for the reason that they want to have

protection in a financial aspect in cases of accidents or endeavors. However, in

the results of their study, unmarried individuals are now inclined with insurances

since they have more disposable income and more resources to avail

insurances compared to married individuals.

Significant Difference in the Level of Influence on Non-Insurance

Purchase Among Car Owners According to their Income

As shown in Table 6, the indicators of the level of customer satisfaction

were measured to determine if there were significant differences in the area of

word of mouth. The F- test was used to determine if there were significant

differences in the level of influence when respondents were grouped according

to their income. The p- value of 0.026 shows that there were significant

differences that exist. Considering that the p- value of 0.026 is lesser than the

alpha value of 0.05. Thus, reject Ho.

 37

Further, in the area of web info, the p- value of 0.248 shows that there

were no significant differences. Thus, the hypothesis is accepted. Finally, in the

area of online reviews, the p- value of 0.249 shows that there were no significant

differences that exist. Since the values are greater than the alpha value of 0.05.

Therefore, failed to reject Ho.

Moon (2004), income is an essential factor that influences buying

decisions and buying behavior of individuals. Adding to that, the perception of

Internet use as a means of doing business purchase transactions also differs

according to income. He emphasized the differences that middle class

individuals execute buying decisions according to utility while style, design and

special factors matters more to those in the upper class. In insurance, level of

income determines the type of product one purchases. In times of crisis when

people tend to tighten their financial prowess, they grow more conscious and

careful on spending.
 38

Chapter 4

SUMMARY, CONLUSIONS AND RECOMMENDATIONS

This chapter presents mainly the summary of findings, conclusions, and

recommendations made on the study that seeks to determine if there is a

significant difference in customer satisfaction among internet banking users.

The study was performed to assess customer satisfaction among internet

banking users.

Summary

The following were the summary of the findings on the study regarding

the respondents’ profile and the indicators of the study.

1. Based on the results, the profile of the respondents in terms of age,

the highest percentage came from the age group of 20-25 years old with 37%

while the lowest percentage with only 2% are respondents 51 years old and

above. In terms of sex, 52% of respondents are male while the other 48% are

female. In terms of status, 58% of the respondents are single and only 42% are

married. Lastly, the highest percentage of 38% of the respondents earn 20,000

and below while the lowest percentage with 8% are respondents who has a

monthly income of 51,000 and above.

2. Based on the data gathered, the influence on purchase decision

concerning: word of mouth gives an overall mean of 4.21 which means

respondents are highly influenced by this indicator. Followed website

information having an overall mean of 4.04 which also means they are highly

influenced by this factor.

 39

3. Based on the gathered results of the significance, all of the variables

accepted the hypothesis except in Income under Word of Mouth having a value

of 0.026, which is less than the alpha value of 0.05. Therefore, we rejected the

hypothesis.

Conclusions

Based on the findings presented, the following conclusions were drawn:

1. Based on the Influencers on Non-life Insurance Purchase among Car

Owners indicators, the area of word of mouth garnered the highest result. It is

the transfer of information such as comments, suggestions, advices and

personal experiences from a current one customer to another which may be

electronically or verbally.

2. There is a significant difference in the level of influence on non-life

insurance when grouped according to their monthly income in terms of the word

of mouth. Therefore, hypothesis was rejected and it conforms to the theory of

Ehrlich and Fanelli (2012), where income being a demographic factor that

influences the perception of individuals towards Internet being a channel for

information search and product purchases but also influences their purchasing

decision as a whole.

Recommendations

In line with the given results and conclusions, the following

recommendations were presented:

1. Insurance Companies. Based on the area of website information,

providers of insurance services must assure the efficiency and reliability of their

websites which will serve as an additional yet pivotal marketing channel for their

products and services. This study has upheld that great satisfactions leads to
 40

great recommendations by this customers to other individuals who are

interested in purchasing insurance products.

2. Insurance Investors. The researchers recommend to insurance

investors especially in the area of website information that individuals who are

in search for insurance services must take full advantage of the modern day

technology such as the Internet. Considering the commitment insurance

companies make in conducting marketing activities through the web, potential

customers won’t find it hard to browse for their desired insurance services and

examine its offers and its reliability. They should also utilize the internet to

garner information from people with experiences about their desired product.

3. Future Researchers. They must have similar studies to be done in

other areas to be able to compare the findings and make conclusions as one.

Further, there must also be a research that will measure the impact of electronic

word of mouth, online reviews and website information on the profitability of

financial institutions.
 41

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48
 49

SURVEY QUESTIONNAIRE

Influencers on Non-life Insurance Purchase Among Car Owners

Direction: Please indicate which you think appropriate to your experience. Feel free to
answer the items. Please be guided by the point scale and the descriptive ratings below.
Please check the appropriate box of given question.

Name: (optional)

Age: 20-25 years old 26-30 31-35 36-40

41-45 46-50 51 and above

Sex: Female Male

Status: Single Married

Income: 20,000 and below 21,000-30,000

31,000-40,000 41,000-50,000

51,000 and above

Range Scale Description Interpretation

4.24 - 5 Extremely Likely Indicates that Investors in insurance

services are extremely influenced by
5.00 each factor.

3.43 - 4 Very Likely Indicates that Investors in insurance

services are very likely influenced by
4.23 each factor.

2.62 - 3 Likely Indicates that Investors in Insurance

services are influenced by each factor.
3.42

1.81 - 2 Unlikely Indicates that Investors in insurance

services are not influenced by each
2.61 factor.

1.00 - 1 Extremely Unlikely Indicates that Investors in Insurance

services extremely are not influence by
1.80 each factor.
 50

5 4 3 2 1
Word of Mouth

1 Satisfied customers can give positive recommendations of an

insurance to other interested individuals

2 Customer feedback should be considered in buying insurance.

3 It’s better to ask information about an insurance service from

clients who already benefited from it.

4 Consider buying insurance particularly those with positive

feedbacks through word of mouth..

5 Insurance services that has positive word of mouth is more

reliable than those with none.

Website Information
1 Information of an insurance service disclosed in the internet
affects my decision on whether to purchase or not.

2 Insurance services published in the web that is backed by more

details catches my eye as investor.

3 When buying insurance, it is better to look up in the internet its

benefits, its terms and also the company’s credentials.

4 Products that has been disclosed to the public through the

company’s website is highly preferable.

5 Insurance services that has its information available in the

internet is trustworthy.

Online Reviews
1 Reviews found in the internet with regards to a product affects the
customer’s perspective towards it.

2 Reading online reviews helps a potential investor further evaluate

the insurance services being offered.

3 Negative online reviews affects the marketability of the insurance

product or services being offered.

4 Only those actual customers and clients must write online reviews
about the insurance service offered.

5 Website managers should create a system wherein only those

actual clients and beneficiaries of the insurance may write an
online review about it.

Comments/Suggestions:

Thank you.
 51

APPENDIX C

SUMMARY OF EVALUATOR’S
RATING

Validator Rating Description

Vicente Salvador E. Montano, DBA 4.00 Very Good

Glenndon Sobrejuanite, MBA 3.71 Very Good

Jestita F. Gurrea, DBM 4.00 Very Good

Overall mean 3.90 Very Good

Scale Range Description

5 4.21 – 5.00 Very High

4 3.21 – 4.20 High

3 2.61 – 3.20 Moderate

2 1.81 – 2.60 Low

1 1.00 – 1.80 Very Low