Online travel insurance purchase intention : a transaction cost perspective

ABSTRACT

Using the transaction cost theory, this study examines customers’ online travel insurance purchase intentions. Data was collected from the life insurers in Taiwan via in-depth interviews and surveys. The hypothesized research model was tested using structural equation modeling. Findings of this study confirm that as customers have more trust in and less online uncertainty about life insurers with greater online experience, they are more likely to purchase online travel insurance. This study reveals that customers with high online purchasing frequency show less transaction cost than those with low online purchasing frequency.

KEYWORDS:

• Transaction cost
• trust
• travel insurance
• purchase intentions
• in-depth interviews
• life insurers
• structural equation modeling
• online uncertainty
• online experience
• purchasing frequency