The influence of perception and motivation when choosing a life insurance

Life insurance occupies a central place in the insurance market and represents unique financial product that offers both insurance and savings. As a result, this research paper analyses the impact of perception and motivation on consumer behavior when choosing life insurance. The necessity for such analysis stems from the fact that many aspects of consumer behavior change over time influenced by various psychological factors such as: attitudes, perceptions, motives and lifestyles. Having into consideration this aspects, marketers have come to conclusion the following ways to motivate consumers: implementation of loyalty program, risk aversion, fostering curiosity of consumers and changing a consumer’s attitude towards a product. Loyalty is an important factor for the consumers to remain loyal to the product or visit the same insurance company as opposed to those consumers who are not loyal. The failure of the life insurance companies to meet customer expectations will lead to customer dissatisfaction and reduced consumer loyalty. Perception affects motivation and is one of the basic factors when choosing a life insurance. If the consumer’s perception is ignored, then the success of the marketers is limited in designing the marketing strategy. Hence, this study focus to identify and detect the impact of perception and motivation on consumer behavior when choosing a life insurance. For the purposes of this study, questionnaire was completed by 220 respondents and distributed on the territory of Republic of Macedonia through personal contact (in printed form) and through the social network Facebook. The survey results suggest that consumer motivation and perception about the necessity of life insurance can be increased by: adequate training of the marketers about the product knowledge, implementation of customer relation management in order to reach potential customers through recommendations from existing customers and on time communication with the customers on key changes in its policies and system of information. Keywords: Life insurance, motivation, perception, consumers, polices, attitudes