Factors influencing consumers’ purchase decisions regarding personal motor vehicle insurance in South Africa

Figures & data

Table 1. Demographic profile (n = 678)

Gender	Female	47.5%
	Male	52.5%
Age group	18–30	22%
	31–40	25.5%
	41–50	18.5%
	51–60 and over 60	34%
Marital status	Married and living with partner (but not married)	67%
	Single, divorced and widowed	33%
Highest level of education	Less than Grade 12 and Grade 12	30.6%
	Post-matric certificate, higher certificate, diploma and higher diploma	29.6%
	Post higher diploma, bachelor’s degree, honors degree, master’s degree and doctorate	39.8%
Employment status	Permanently employed on a full-time basis	54%
	Student, unemployed and retired	29%
	Temporarily employed and permanently employed on a part-time basis	17%
Household income	R0–R16 000	29%
	R16 001–R46 000	29.5%
	R46 001 or more	27%
	Prefer not to say	14.5%
Personal income	R0–R2 500	18.5%
	R2 501–R16 000	20.5%
	R16 001–R46 000	31.5%
	R46 001 or more	19%
	Prefer not to say	10.5%

Table 2. Factor findings and loadings from the EFA

Factors identified from EFA	Constructs	Items/variables	Factor loadings
1	Psychological attributes	Motivation Perception about motor vehicle insurance Perception about a certain insurance company Learning Personality Attitude towards motor vehicle insurance Attitude towards a certain short-term insurance company	0.690 0.758 0.715 0.626 0.684 0.782 0.653
2	Marketing efforts	Types of policies offered Price of a policy Distribution channels Physical evidence Process People Partnerships	0.620 0.602 0.644 0.479 0.711 0.679 0.512
4	Negative sociocultural environment	Negative family member Negative reference person or group Negative non-commercial sources Negative social class	0.798 0.859 0.722 0.719
5	Communication sources B	Promotion Buzz agent Customized messages User-generated social media posts Paid-for social media efforts	0.510 0.761 0.690 0.558 0.642
6	Positive sociocultural environment	Positive family member Positive reference person or group Positive non-commercial sources Positive social class Cultural and subcultural factors	0.628 0.604 0.634 0.694 0.446
7	Communication sources A	Traditional advertisements Online advertisements	0.742 0.551

Table 3. External and internal factors of the purchase decision elements gathered from model fit of the CFA revised model and the index values

Latent variables	Observed variables	Index values
Psychological attributes	Motivation Perception about motor vehicle insurance Perception about a certain insurance company Learning Personality Attitude towards motor vehicle insurance Attitude towards a certain short-term insurance company	0.72 0.81 0.82 0.81 0.68 0.78 0.73
Marketing efforts	Price of a policy Process People	0.67 0.71 0.78
Positive sociocultural environment	Positive family member Positive reference person or group Positive non-commercial sources Positive social class Cultural and subcultural factors	0.76 0.82 0.84 0.79 0.54
Negative sociocultural environment	Negative family member Negative reference person or group Negative non-commercial sources Negative social class	0.84 0.89 0.86 0.82
Communication sources group A	Traditional advertisements Online advertisements	0.78 0.89
Communication sources group B	Buzz agent Customized messages Paid-for social media efforts	0.76 0.73 0.80

Table 4. Univariate analysis summarized to identify the important covariances

Variable	Type	T-test p-values	Chi-square p-values	r-value	P-value	Test	Include in baseline model
Original variables
Marketing efforts	Interval	0.000		0.363	0.000		Yes
Positive sociocultural environment	Interval	0.179		0.098	0.168		Yes
Negative sociocultural environment	Interval	0.131		0.109	0.123		Yes
Communication sources A	Interval	0.000		−0.292	0.000		Yes
Communication sources B	Interval	0.000		−0.299	0.000		Yes
Psychological attributes	Interval	0.000		0.365	0.000		Yes
Demographic variables
Age	Interval	0.000			0.331	Pearson	Yes
Age regrouped	Ordinal		0.000	0.000	0.281	Kendall’s tau-b	Yes
Gender	Nominal - Dichotomous		0.588	0.588	−0.048	Phi	No
Marital status regrouped	Nominal - Dichotomous		0.000	0.000	0.348	Phi	Yes
Highest level of education	Ordinal				0.427	Kendall’s tau-b	Yes
Highest level of education regrouped	Ordinal		0.000	0.000	0.446	Kendall’s tau-b	Yes
Employment status regrouped	Ordinal		0.004	0.004			Yes
Household income	Ordinal				0.486	Kendall’s tau-b	Yes
Household income regrouped	Ordinal		0.000	0.000	0.658	Kendall’s tau-b	Yes

Table 5. Variables in the equation for the final logistic regression model

	B	S.E.	Wald	df	Sig. p-value	Exp(B)	95% CI for EXP(B)
							Lower	Upper
Marketing efforts	0.707	0.218	10.516	1	0.001	2.027	1.323	3.108
Positive sociocultural environment	−0.978	0.254	14.772	1	0.000	0.376	0.229	0.619
Negative sociocultural environment	0.423	0.181	5.464	1	0.019	1.526	1.071	2.176
Communication sources B	−0.932	0.221	17.707	1	0.000	0.394	0.255	0.608
Psychological attributes	0.568	0.226	6.308	1	0.012	1.765	1.133	2.749
Age	0.061	0.013	23.270	1	0.000	1.063	1.037	1.090
Highest level of education	1.108	0.236	22.011	1	0.000	3.028	1.906	4.810
Household income	1.570	0.271	33.697	1	0.000	4.808	2.830	8.171

Table ‎6. Summary of findings regarding factors that influence an individual’s personal motor vehicle insurance purchase decision

Constructs	Item structure was confirmed with the CFA	According to the logistic regression
Marketing efforts	• Types of policies offered • Price of a policy • Distribution channels • Physical evidence • Process • People • Partnerships	• Price of a policy • Process • People
Sociocultural environment factors	Positive sociocultural environment • Positive family member • Positive reference person or group • Positive non-commercial sources • Positive social class • Cultural and subcultural factors Negative sociocultural environment • Negative family member • Negative reference person or group • Negative non-commercial sources • Negative social class	Positive sociocultural environment • Positive family member • Positive reference person or group • Positive non-commercial sources • Positive social class • Cultural and subcultural factors Negative sociocultural environment • Negative family member • Negative reference person or group • Negative non-commercial sources • Negative social class
Communication sources	Communication sources A • Traditional advertisements • Online advertisements • Promotion Communication sources B • Buzz agent • Customized messages • User-generated social media posts • Paid-for social media efforts	• Buzz agent • Customized messages • Paid-for social media efforts
Psychological attributes that influence need recognition	• Motivation • Perception about motor vehicle insurance • Perception about a certain short-term insurance company • Learning • Personality • Attitude towards motor vehicle insurance • Attitude towards a certain short-term insurance company	• Motivation • Perception about motor vehicle insurance • Perception about a certain short-term insurance company • Learning • Personality • Attitude towards motor vehicle insurance • Attitude towards a certain short-term insurance company
Demographic variables		• Age • Highest level of education • Household income