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13.11.2023

Life insurance, loss aversion, and temporal orientation: a field experiment and replication with young adults

verfasst von: Simon J. Blanchard, Remi Trudel

Erschienen in: Marketing Letters

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Abstract

Young individuals rarely seek information about life insurance—a product that offers long-term benefits that might not motivate a desire to act now. Framing life insurance messaging as a gain in the present (e.g., “ensure your loved ones are protected today”) is thought to motivate younger individuals to seek information about insurance policies. A field experiment with a large life insurance issuer and a pre-registered experiment reveal that loss aversion and temporal orientation frames influences whether individuals aged 25–49 years shop for life insurance. Specifically, the results suggest that the superiority of gain frames over loss frames requires positioning the benefits well in the future, despite the need to act now. This study thus also contextualizes the realities and practical difficulty of framing financial products in ways that might interest a potentially vulnerable population.

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Fußnoten
2
Insurance is frequently associated with protection. All messages used by INSCO emphasize protection, which is not something we could control.
 
3
Existing INSCO customers are those who have car, home, or renters’ insurance but not life. Moreover, INSCO defines its younger customers, for marketing communications, as people 25 to 49 years of age. We had no control on this decision nor any way to assess individuals’ age.
 
4
Participants who answered “applies to me” to the item “I have received the Astrazeneca vaccine for COVID-19” (not available in the USA) were eliminated, for failing this straight-lining check.
 
5
As we report in post-hoc (non-preregistered) analyses on researchbox, including covariates improves precision somewhat but does not meaningfully affect our conclusions.
 
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Metadaten
Titel
Life insurance, loss aversion, and temporal orientation: a field experiment and replication with young adults
verfasst von
Simon J. Blanchard
Remi Trudel
Publikationsdatum
13.11.2023
Verlag
Springer US
Erschienen in
Marketing Letters
Print ISSN: 0923-0645
Elektronische ISSN: 1573-059X
DOI
https://doi.org/10.1007/s11002-023-09712-4