BIAS ASPECT IN DECISION MAKING FOR BUYING LIFE INSURANCE IN INDONESIA

KURNIAWAN, BENNY and Murhadi, Werner Ria (2018) BIAS ASPECT IN DECISION MAKING FOR BUYING LIFE INSURANCE IN INDONESIA. In: 2nd International Seminar of Contemporary Research on Business and Management, 30-31 Juli 2018, Universitas Warmadewa,Denpasar, Bali.

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Abstract

This research aims to learn about the irrationality in Indonesian society when making purchase decision related to life insurance. This irrationality caused by the multiple aspects such as excessive optimism, representativeness bias, overconfidence, herding effect, availability, confirmation bias and framing effects. This study will describe how the life insurance purchase decisions are seen from seven aspects of bias. This research is positivism basic research in quantitative and descriptive. This research data obtained by survey method where this method using questionnaires. The number of samples in this study was 160 people. The results of this description will be used to address the main problem of this research. Aspects of representativeness bias are not used in this study because the respondent data reliability is very low. Descriptive statistical test results from this study indicate that only availability bias and framing effects contained in life insurance purchase decision. Aspects of availability bias are a dominant aspect of life insurance purchase decision. In addition, this study also indicates that there are differences between men and women. The aspect of availability bias and framing effect occurred on men, but for women only framing bias effect occurred. This study also indicates that there is difference bias result in terms of different age of respondent and the duration of life insurance ownership. Overall, this study shows that there is no bias aspect in the life insurance purchase decision.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: irrationality, excessive optimism, representativeness bias, overconfidence, herding effect, availability, confirmation bias, framing effect
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Management
Depositing User: Werner R. Murhadi 31124
Date Deposited: 01 Aug 2018 02:08
Last Modified: 01 Aug 2018 02:08
URI: http://repository.ubaya.ac.id/id/eprint/32829

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