Factors influencing the purchase intention of life insurance amongst the south african black middle class

Abstract

This study aims to identify the factors that influence the purchase intention of life insurance amongst the South African Black middle-class populace by considering the positive influence of premium price, price bundling, penetration pricing and trust on the intent to purchase life insurance among the middle-class Black population in South Africa. This study also considered the negative influence of conspicuous consumption and Black tax on the purchase intent of life insurance within the middle-class Black population in South Africa. The objectives of this study were, firstly: to identify the factors that influence the purchase intention of life insurance amongst the Black middle class in South Africa. Secondly, to examine the influence of pricing and trust on the purchase of life insurance amongst the Black middle class in South Africa. Thirdly, to assess the influence of conspicuous consumption and Black tax on the purchase intention of life insurance amongst the Black middle class in South Africa. In achieving these stated objectives, this study applied the theory of planned behaviour. This quantitative study collected data from 211 respondents who classified (regarded) themselves as Black middle class. Regression analysis was conducted to test the hypotheses. The results from this study indicated that price bundling, penetration pricing and trust positively impacted the intention to purchase life insurance within the South African Black middle-class populace. The study’s outcomes indicated insufficient evidence to conclusively suggest that conspicuous consumption negatively impacted the intent to purchase life insurance within the Black middle class in South Africa, while the Black tax had no negative impact on the intent to purchase life insurance within this population group. The implications of these research findings and suggestions for South African life insurance companies to grow their influence and market share within the Black middle-class populace is to revise their pricing strategies and apply the price bundling and penetration pricing strategies. It is also recommended for South African life insurance companies focus on building trust within this population segment to firstly reduce the South African insurance gap, secondly, contribute to creating high and low-skilled employment opportunities, which also benefits in improving the South African high unemployment rate, all these are some of the direct and indirect benefits provided by the life insurance sector