Affect and marketing stimuli in consumer loyalty decisions to automobile insurers/ created by Steve A.Taylor

Most insurance loyalty studies assume largely cognitive psychological underpinnings. A study is conducted that investigates the relative contributions of cognitive versus affective influences on the desire to be loyal to an automobile insurer after a poor service experience. Three hundred and fifteen respondents were introduced to scenarios that manipulated the response to an advertisement to switch insurers by price- and brand-related marketing influences to investigate their influence on anticipated regret (AR). The results support the conclusions that both cognitive and affective considerations are important to consumer judgment and decision-making (J/DM) processes in the context of car insurance, that male and female customers may vary in their J/DM processes with car insurance, and that insurance modelers of J/DM should consider outside influences on consumers in studies, particularly marketing-related brand and price perceptions. Failure to do so can lead to a failure to correctly predict potential action versus inaction effects associated with AR.