together have a positive and significant influence

Oct 13, 2025 by talynt.org 127 views

Price Analysis and Quality of Services on Decisions on Purchasing Life Insurance Policies: A Study at PT Prudential Life Assurance Jalan Sekip Komplek Merbau Mas

Introduction

The purchasing decision of life insurance policies is a complex process that involves various factors, including price and service quality. In the competitive life insurance industry, understanding the effect of these factors on purchasing decisions is crucial for insurance companies to remain competitive and gain customer trust. This study aims to reveal the effect of price and service quality on the purchasing decision of life insurance policy at PT Prudential Life Assurance Jalan Sekip Komplek Merbau Mas, as well as analyzing the dominant factor that affects purchasing decisions.

Literature Review

Previous studies have shown that price and service quality are significant factors in the purchasing decision of life insurance policies. A study by [1] found that price is a major factor in the purchasing decision of life insurance policies, while a study by [2] found that service quality is also an important factor. However, these studies did not analyze the dominant factor that affects purchasing decisions.

Methodology

This study used a quantitative approach to collect data from 100 respondents who were customers of PT Prudential Life Assurance Jalan Sekip Komplek Merbau Mas. The data was collected through questionnaires and analyzed using multiple linear regression. The formula used was y = a + b1x1 + b2x2, where y is a purchase decision, x1 is price, and x2 is the quality of service.

Results

The results of the analysis showed that the adjusted R square value is 0.584, which means that 58.4% of purchasing decisions can be explained by independent variables (price and service quality), while the remaining 41.6% can be explained by other variables that are not considered in this study. The results also showed that price (level variable) has a partial dominant effect on purchasing decisions. In addition, both prices and service quality together have a positive and significant influence on the decision to purchase life insurance policies.

Discussion

The results of this study provide several important notes. Firstly, the percentage of the influence of independent variables is quite high (58.4%), which shows that the price and quality of service play an important role in the purchasing decision. PT Prudential Life Assurance needs to focus on strategies that can increase the value of customer perceptions of these two factors. Secondly, there are 41.6% of other variables that are not considered in this study, which shows that other factors such as trust in the brand, recommendations from the closest people, as well as the needs and risk profiles of customers can influence purchasing decisions. This needs to be taken into consideration for PT Prudential Life Assurance to conduct further analysis in the future.

Recommendations

Based on the results of this study, several recommendations are provided for PT Prudential Life Assurance:

Applying a competitive price strategy but still paying attention to profitability. PT Prudential Life Assurance can offer a wide selection of products with varying prices to meet the needs and purchasing power of different customers.
Improving service quality to customers. PT Prudential Life Assurance can conduct training to staff to improve expertise in providing professional and friendly services, facilitating access to product and services information, and increasing responses to customer complaints.
Promoting the advantages of PT Prudential Life Assurance products and services through various media. PT Prudential Life Assurance can utilize digital media, print media, and other promotional activities to introduce their products and services to broader target markets.

Conclusion

In conclusion, this research provides empirical evidence of the effect of price and service quality on the decision to purchase life insurance policies. PT Prudential Life Assurance needs to pay attention to these two factors in order to increase competitiveness and gain customer trust in the long run. The results of this study provide several important notes and recommendations for PT Prudential Life Assurance to improve their business strategy and increase customer satisfaction.

Limitations

This study has several limitations. Firstly, the sample size is relatively small, which may not be representative of the entire population. Secondly, the study only considers two factors (price and service quality) that affect purchasing decisions, while other factors such as trust in the brand, recommendations from the closest people, as well as the needs and risk profiles of customers may also influence purchasing decisions.

Future Research Directions

Future research directions include:

Conducting further analysis on other factors that affect purchasing decisions. This study only considers two factors (price and service quality) that affect purchasing decisions, while other factors such as trust in the brand, recommendations from the closest people, as well as the needs and risk profiles of customers may also influence purchasing decisions.
Analyzing the effect of price and service quality on different segments of customers. This study only analyzes the effect of price and service quality on the entire population, while different segments of customers may have different preferences and needs.
Evaluating the effectiveness of different business strategies. This study provides several recommendations for PT Prudential Life Assurance, but the effectiveness of these strategies needs to be evaluated in future studies.

References

[1] [Author's Name], [Year]. [Title of the Study]. [Journal Name], [Volume], [Issue], [Pages].

[2] [Author's Name], [Year]. [Title of the Study]. [Journal Name], [Volume], [Issue], [Pages].

Appendices

Appendix A: Questionnaire

Appendix B: Data Analysis

Appendix C: Results of the Analysis

Appendix D: Discussion and Recommendations

Appendix E: Conclusion

Appendix F: References

Appendix G: Appendices
Frequently Asked Questions (FAQs) on Price Analysis and Quality of Services on Decisions on Purchasing Life Insurance Policies

Q: What is the main objective of this study?

A: The main objective of this study is to reveal the effect of price and service quality on the purchasing decision of life insurance policy at PT Prudential Life Assurance Jalan Sekip Komplek Merbau Mas, as well as analyzing the dominant factor that affects purchasing decisions.

Q: What is the population of this study?

A: The population of this study is all customers of PT Prudential Life Assurance Jalan Sekip Komplek Merbau Mas.

Q: What is the sample size of this study?

A: The sample size of this study is 100 respondents who were chosen using a probability sampling technique with a simple random sampling approach.

Q: What is the data collection method used in this study?

A: The data collection method used in this study is questionnaires.

Q: What is the data analysis method used in this study?

A: The data analysis method used in this study is multiple linear regression.

Q: What are the independent variables used in this study?

A: The independent variables used in this study are price and service quality.

Q: What is the dependent variable used in this study?

A: The dependent variable used in this study is purchasing decision.

Q: What is the result of the analysis?

A: The result of the analysis shows that the adjusted R square value is 0.584, which means that 58.4% of purchasing decisions can be explained by independent variables (price and service quality), while the remaining 41.6% can be explained by other variables that are not considered in this study.

Q: What is the dominant factor that affects purchasing decisions?

A: The dominant factor that affects purchasing decisions is price.

Q: What are the recommendations for PT Prudential Life Assurance?

A: The recommendations for PT Prudential Life Assurance are:

Applying a competitive price strategy but still paying attention to profitability.
Improving service quality to customers.
Promoting the advantages of PT Prudential Life Assurance products and services through various media.

Q: What are the limitations of this study?

A: The limitations of this study are:

The sample size is relatively small.
The study only considers two factors (price and service quality) that affect purchasing decisions, while other factors such as trust in the brand, recommendations from the closest people, as well as the needs and risk profiles of customers may also influence purchasing decisions.

Q: What are the future research directions?

A: The future research directions are:

Conducting further analysis on other factors that affect purchasing decisions.
Analyzing the effect of price and service quality on different segments of customers.
Evaluating the effectiveness of different business strategies.

Q: What is the significance of this study?

A: The significance of this study is that it provides empirical evidence of the effect of price and service quality on the decision to purchase life insurance policies, which can help PT Prudential Life Assurance to improve their business strategy and increase customer satisfaction.

Q: What are the implications of this study?

A: The implications of this study are that PT Prudential Life Assurance needs to pay attention to the price and service quality of their products and services in order to increase competitiveness and gain customer trust in the long run.

Q: What are the contributions of this study?

A: The contributions of this study are:

Providing empirical evidence of the effect of price and service quality on the decision to purchase life insurance policies.
Identifying the dominant factor that affects purchasing decisions.
Providing recommendations for PT Prudential Life Assurance to improve their business strategy and increase customer satisfaction.