What Is the Influence of Loss Aversion and Reference Points on the Decision-Making Behavior of Chinese Consumers Concerning Participating in Car Insurance Sales?

Abstract

This study investigates the impact of loss aversion and reference points on car insurance participation in the Chinese market. The study initially formulates a hypothesis by integrating existing data and using prospect theory. Specifically, it posits that loss aversion and reference points have a significant impact on the decision-making process of Chinese customers when purchasing auto insurance. Utilize quantitative analysis to survey individuals and investigate the hypothesis. Additionally, conduct SPSS analysis to further explore the findings. The study reveals that incorporating factors of loss aversion and a reference pricing point significantly impacts the decision-making process regarding the acquisition of car insurance, leading to positive outcomes. The study provides new insights into the insurance industry based on the conclusions drawn from the research.