Articles

The Influence of Critical Success Factors of Innovative Insurance Product Development Concept Test towards Purchase Intention: An Empirical Study of Millennials and Generation Z as Target Market in Indonesia

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The insurance industry faces numerous challenges, including intensifying competition, shifting customer expectations, and disruptive technological advancements. To navigate these challenges successfully, insurance companies must embrace innovation in product development. This approach enables them to meet the evolving needs of customers, adapt to market changes, and deliver greater value to their clientele. In Indonesia specifically, insurance companies face the considerable challenge of low insurance penetration, which has remained stagnant over the past five years from 2017 to 2021 (AAJI, 2022). Furthermore, insurance literacy and inclusion levels are alarmingly low, standing at only 19.40% and 13.15%, respectively, significantly below the Indonesian averages of 38.03% and 76.19% (OJK, 2019). Considering these challenges, PT Delta Echo Lima Insurance (placebo name and hereinafter named “DELI”) aims to address these issues by developing innovative, customer-centric insurance products and aspires to launch a ground-breaking insurance concept in Indonesia targeting Millennials and Generation Z. This research focuses on analyzing the characteristics of the target market and examining the correlation between critical success factors as key dimensions of the concept test for innovative insurance products and their influence on perceived innovation, perceived value, perceived price, and purchase intention. Additionally, an overall relationship model is established to provide a comprehensive understanding of the interconnections between these variables. To gather data, a quantitative approach was employed, utilizing questionnaires as the primary research instrument. The aim was to collect responses from two distinct groups of participants: Millennials and Generation Z. The collected data was then processed using the SmartPLS 3.0 software application, enabling the application of Partial Least Square Structural Equation Modelling (PLS SEM) analysis to derive insights and draw conclusions. This research provides valuable insights into the influence of critical success factors of innovative insurance product development concept tests on various aspects, including perceived innovation, perceived value, perceived price, and purchase intention among Millennials and Generation Z. The findings shed light on the unique characteristics of these target markets and highlight the significance of perceived value in driving customers’ purchase intentions. By understanding these dynamics, insurance companies like PT DELI can better tailor their product development strategies to effectively cater to the needs and preferences of Millennials and Generation Z while addressing the challenges and opportunities within the Indonesian insurance industry.

The UTAUT Model Analysis in the Technology Use of Generation-Z Users in Cambodia during COVID-19 Situation

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Due to the widespread infection of the coronavirus (COVID-19) over the world, people were forced to stay at home, and technology has been increasingly used in communication, entertainment, and work. This research emphasized the study on the technology usage of Generation Z who are ready and highly skilled in using technology. The purpose of the study was to investigate the influence of key factors affecting the intended use and practical application of Generation Z technology in Cambodia during the COVID-19 pandemic. The researcher chose to use the UTAUT Model to test the research hypothesis. A questionnaire is a research tool used to collect data online. It was found that the sample size was 212 respondents. Descriptive analysis and the partial least square structural equation model (PLS-SEM) evaluation were performed. The results revealed that (1) most of the respondents were male, had under a bachelor’s degree, and monthly income was equal to or more than 312 US dollars, (2) the performance expectancy significantly influenced the behavioral intention, but effort expectancy, social influence, and facilitating conditions did not affect the behavioral intention of technology use, and (3) the behavioral intention to use technologies significantly influenced the actual use behavior during the covid-19 situation. This study suggests that technology organizations or businesses should pay attention to the potential benefits of technology for spurring the technology adoption and use of Generation Z people in Cambodia.