New Report Suggests Peer Pressure Motivates Consumers to Buy Life Insurance
A new study suggests that certain consumers are more likely to purchase life insurance when they perceive it as a social norm. LIMRA, a research and development trade organization, conducted a survey on what motivates consumers to buy life insurance based on nearly 4,000 responses from consumers ages 30 to 50. The study used eight messages to try and convince consumers to buy life insurance. As it turns out, the most successful statement was, “most Americans do own life insurance, including people like you.” Statements were tested against a control statement that used a traditional approach for marketing life insurance, listing incentives for the consumer such as paying for end-of-life expenses, leaving money for the next generation and replacing lost income.
The only demographic that seemed immune to the social norming message was married consumers. The control statement showed that 37 percent of married consumers were “likely to buy” life insurance, while the social norming statement resulted in a slight bump with 38 percent of consumers saying that they were “likely to buy” life insurance.
Conversely, the social norming message seemed to have a significant impact on single consumers. The control statement led to a meager 23 percent of single consumers saying that they were “likely to buy” life insurance, while the social norming message led to 39 percent of single consumers saying that they were “likely to buy” life insurance.
There could be several reasons for this spike in interest in life insurance for single consumers. Single consumers tend to be younger and more impressionable, and thus more susceptible to social norming tactics. Single consumers may also be less aware of the benefits of life insurance, choosing to side with popular consensus as opposed to financial pragmatism. While married consumers tend to be older and more likely to have already made up their minds about life insurance. For married consumers, the financial incentives for buying life insurance seem to be just as persuasive as the opinions of others.
More interesting still, the study also asked participants to rank the content messages from the most effective to the least effective. The social norming message came in 7th out of 8, despite being the most effective with consumers. It seems that consumers don’t like to think of themselves as susceptible to the opinions of others, while, in fact, social norming appears to be one of the most effective marketing strategies, at least when it comes to life insurance.
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Whether you’re motivated by your peers or by other factors, the fact is that life insurance is essential for protecting your loved ones in the event of the unthinkable. At Intramark Insurance, we’re proud to provide instant quotes from the nation’s top-ranked insurance companies. Get started today by using our convenient life insurance quote tool.