How Does Insurer's Mobile Application Sales Strategy Perform?
29 Pages Posted: 20 Dec 2021 Last revised: 6 May 2022
Date Written: May 6, 2022
The mobile Internet has profoundly changed people’s lifestyles. While the contribution of the Internet sales strategy to the sales performance of physical goods has been well studied in the retailing and marketing ﬁelds, there is little academic research investigating the impact of the mobile application sales strategy on insurance sales performance. Based on a unique data set from a life insurer in China, we examine the eﬀects of implementing this strategy on insurance purchases. Signiﬁcant growth is observed in both insurance purchase quantities and premiums received from new policies (PRNP) for term life insurance, which is partly owing to the channel accessibility. We ﬁnd that the increase in PRNP is less substantial due to the reduction in unit price. Further, we observe that this strategy mitigates impulsive purchases, and reduces oﬄine purchase quantities in the short run. In the short term, it can also produce negative eﬀects such as cannibalization.
Keywords: Mobile Internet, Mobile Application, Insurance Marketing
JEL Classification: G22, D12
Suggested Citation: Suggested Citation