Insurance: Purchasing Trends on Consumer Behavior

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Table of Contents

Introduction
Discussion
Conclusion
References

Introduction

The auto insurance sector has continued to experience dramatic changes over the past decade. Analysts suggest the emerging trends in culture, globalization, and technological changes promise even much change in the future (Castells, 2011). Therefore, the marketing of auto insurance products will be driven by these trends that shift consumer buying behavior. These aspects have been seen to create dynamics for marketers in the insurance sector because they have continuously influenced the psychology and expectations of insurance consumers across the world (Usunier, 2000).

Discussion

Cultural trends

Culture plays a critical role in shaping the psychology of buying and consumer expectations across the world. While culture has been neglected in the recent past, researchers agree that cultural trends carry the future of marketers. Changes in social networking breed a new form of integrated culture, which changes the perceptual concerns of most consumers (Castells, 2011). The shifts from single and distinct cultures continue to be demystified rigid culture toward a more inclusive approach for multiculturalism. Currently, the growing social networks enabled by internet technology have transformed the cultural face of consumers across the world.

Globalization

Researchers and analysts have suggested that the recent financial crises have provided a fertile ground for enhanced communication, collaboration, and integration of various industry players. This shows that the future of the auto insurance sector will be directed by the successful negotiation and collaboration by marketers and insurance regulators (Usunier, 2000). This will cause a relative shift in policy to yield standardization of product offerings and promote the globalization of the insurance value chain.

The creation of global regulations underpinning market activities will influence the ability of industry payers to approach and manipulate the market. One of the conceivable implications of globalization is the development of limits that will affect the marketing ability of insurance marketers (Castells, 2011). On the side of consumers, these global trends promise an overall shift from supply power to customer sovereignty.

Technological trends

Technological improvements have introduced advances in software and hardware, which have created a shift in information power from marketers to consumers. The insurance industry has registered tremendous gains from recent information technology waves in terms of automation. These technologies have continued to promise enhanced operational efficiencies, increased revenue opportunities, and support customer experience (Usunier, 2000). The industry players have been able to transmit large scale data in real-time via the internet-enabled by devices such as tablets, pads, and smartphone technologies.

The ability of firms to manage large amounts of data and convert it into actionable insights enables them to approach the market with more objectivity. In the recent past, the insurance industry has over-relied on traditional sources of the market and consumer purchasing data(Usunier, 2000). Research shows that a lack of objective data rendered the traditional industry less efficient (Castells, 2011). Today, technology growth enables marketers to evaluate customer needs and assess the effectiveness of their marketing strategies. Therefore, these changes continue to reverse these trends in firms dealing with auto insurance.

Conclusion

The insurance industry has experienced enormous changes in the manner in which consumers perceive marketing information. Similarly, marketers in the insurance industry, especially the auto insurance sector have shifted their emphasis from the traditional sense of consumer behavior toward a modern view. The global insurance industry is expected to witness changes due to global changes. The effect of technology growth has availed benefits for both marketers and consumers.

References

Castells, M. (2011). The Rise of the Network Society: The Information Age: Economy, Society, and Culture, Volume 1. New York, NY: John Wiley & Sons.

Usunier, J. (2000). Marketing across Cultures. New York, NY: Prentice Hall.

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