Exploring Variables Structure based on Structural Equation Modeling of Future Strategy for Digital Car Insurance Product based on Millennial Generation's Perception of Purchase Decision

Abstract

Service offerings for the new kind of market consist of digitally fluent millennial generations significantly different in the insurance industry. The moved to digital service offering are essential to maintain a competitive advantage. Car insurance is one service offered by the general insurance industry growing and following the trend towards digital. This research emphasizes the influence of the relationship between knowledge & consumer behavior and product innovation on the perception of purchasing decisions for the digital car insurance product. This paper develops a conceptual model using a system diagram to show inputs, processes, outputs, related stakeholders, and intervention choices that can influence strategy early-development. The conceptual model is the base for planned further research using Structural Equation Modelling (SEM) method to measure its relationship.