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The Value of Personal Contact in Marketing Insurance: Client Judgments of Representativeness and Mental Availability
Author(s) -
Theil Michael
Publication year - 2003
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1046/j.1098-1616.2003.029.x
Subject(s) - representativeness heuristic , heuristics , actuarial science , marketing , order (exchange) , set (abstract data type) , value (mathematics) , business , economics , computer science , psychology , social psychology , finance , machine learning , programming language , operating system
Much previous research in decision analyses has focused on the processes of simplification that the decision maker applies in order to obtain a reduced set of alternatives. In the present work, we show how the principles of judgment by representativeness and mental availability can be applied to insurance decisions. We extend this view by considering interaction between these two heuristics and by analyzing the effect of the longer time horizon typical for insurance problems. The results of such simplification are shown to be inherently unstable. Nevertheless, it is possible to explain on the basis of our analysis why certain marketing practices dominate insurance markets.