Drivers of Consumer Purchase Intention Toward Life Insurance: Mediating Role of Persuasion

Authors

DOI:

https://doi.org/10.58665/njiss.78

Keywords:

Behavioral factors, consumers, purchase intention, life insurance

Abstract

Purpose: By developing an integrated model grounded in behavioral economics, this study examines the key factors influencing consumer purchasing intentions towards life insurance through the mediation of persuasion.

Design/methodology/approach: This study employed an explanatory research design, collecting cross-sectional data from 307 respondents in Kathmandu Valley conveniently through KoboToolbox. SmartPLS 4.0 was used to examine the structural relationship.

Findings: Findings revealed that attitude, subjective norms, and saving motives significantly influence life insurance purchase intention, while risk aversion and financial literacy do not exhibit significant direct effects. Similarly, mediation analysis indicates that persuasion plays a critical role by significantly mediating the effects of subjective norms, attitude, saving motives, and financial literacy on purchase intention.

Conclusion: These results highlight the centrality of psychosocial drivers and persuasive communication in shaping consumer behavior in Nepal’s life insurance sector.

Implications: By identifying the behavioral levers that drive purchase intention and the persuasive pathways through which these levers operate, this study aspires to reposition life insurance not merely as a product but as a behavioral commitment to long-term security in an increasingly uncertain world.

Originality/value: This study provides valuable empirical insights and novel perspectives by integrating behavioral factors and persuasion to explain life insurance purchase intention in Nepal’s emerging market context.

JEL Classification: D12, G22, M31

Author Biographies

Grishma Gurung, MBA Graduate, Ace Institute of Management, Pokhara University, Nepal .

Grishma Gurung is an MBA graduate from Ace Institute of Management, Pokhara University, Nepal, and is a passionate research scholar with over five years of corporate experience, dedicated to advancing management knowledge and practice.

Aarati Ojha, SAIM College, Pokhara University, Nepal

Aarati Ojha is a Research Assistant and Faculty at SAIM College, Pokhara University. Passionate about academic research, she actively contributes to research projects, student mentorship, and shares knowledge through conferences and workshops.

Sagar Kharel, Kathmandu Model College, Tribhuvan University, Nepal

Sagar Kharel serves as Program Head at Kathmandu Model College, Tribhuvan University, Nepal, leading the BBA and BBM programs. A dynamic academic leader and passionate research scholar, he embodies a strong research-driven mindset and is rapidly emerging as a distinguished voice in academia, committed to advancing scholarly rigor, innovation, and impactful educational leadership.

Babita Simkhada, Psychosocial Counselor, Kathmandu Model College, Tribhuvan University, Nepal.

Babita Simkhada is a psychosocial counselor at Kathmandu Model College with a BPH and an MA in Psychology. She provide individual and group counseling, mental health education, and psychosocial support to help students build resilience and achieve personal growth. Her areas of focus include anxiety, depression, bullying, stress management, and relationship challenges. She use an empathetic, evidence-based approach and am committed to advancing mental health awareness within academic
settings.

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Published

2025-07-28

How to Cite

Gurung, G. ., Ojha, A. ., Kharel, S. ., & Simkhada, B. . (2025). Drivers of Consumer Purchase Intention Toward Life Insurance: Mediating Role of Persuasion . Nepalese Journal of Insurance and Social Security, 8(1), 43–53. https://doi.org/10.58665/njiss.78

Issue

Vol. 8 No. 1 (2025)

Section

Articles