TITLE:
What Is the Influence of Loss Aversion and Reference Points on the Decision-Making Behavior of Chinese Consumers Concerning Participating in Car Insurance Sales?
AUTHORS:
Michelle Yang
KEYWORDS:
Insurance, Prospect Theory
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.6,
November
8,
2023
ABSTRACT: This study investigates the impact of loss aversion
and reference points on car insurance participation in the Chinese market. The
study initially formulates a hypothesis by integrating existing data and using
prospect theory. Specifically, it posits that loss aversion and reference
points have a significant impact on the decision-making process of Chinese
customers when purchasing auto insurance. Utilize quantitative analysis to
survey individuals and investigate the hypothesis. Additionally, conduct SPSS
analysis to further explore the findings. The study reveals that incorporating
factors of loss aversion and a reference pricing point significantly impacts
the decision-making process regarding the acquisition of car insurance, leading
to positive outcomes. The study provides new insights into the insurance
industry based on the conclusions drawn from the research.