ANALYZING MILLENNIALS’ PURCHASE INTENTION IN THE PRIVATE

HEALTH AND LIFE INSURANCE INDUSTRY

By

Stella Marissa Suwanpoh

11503020

BACHELOR’S DEGREE
in

BUSINESS ADMINISTRATION
FACULTY OF BUSINESS AND COMMUNICATION

SWISS GERMAN UNIVERSITY

The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera
Tangerang, Banten 15143 - Indonesia

July 2019
ANALYZING MILLENNIALS’ PURCHASE INTENTION IN THE PRIVATE
HEALTH AND LIFE INSURANCE INDUSTRY

By

Stella Marissa Suwanpoh

11503020

BACHELOR’S DEGREE
in

BUSINESS ADMINISTRATION
FACULTY OF BUSINESS AND COMMUNICATION

SWISS GERMAN UNIVERSITY

The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera
Tangerang, Banten 15143 - Indonesia

July 2019

Revision after Thesis Defense on July 11, 2019

ANALYZING MILLENNIALS’ PURCHASE INTENTION Page 2
IN THE PRIVATE HEALTH AND LIFE INSURANCE INDUSTRY

STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge,
it contains no material previously published or written by another person, nor material
which to a substantial extent has been accepted for the award of any other degree or
diploma at any educational institution, except where due acknowledgement is made in
the thesis.

Stella Marissa Suwanpoh

____________________________________________ July 25, 2019
Student Date

Approved by:

Mochammad Riyadh Rizky Adam, S.T., M.S.M.

____________________________________________ July 25, 2019
Thesis Advisor Date

Dr. Nila Krisnawati Hidayat, S.E., M.M.

____________________________________________ July 25, 2019
Dean of Faculty of Business and Communications Date

Stella Marissa Suwanpoh

ANALYZING MILLENNIALS’ PURCHASE INTENTION Page 3
IN THE PRIVATE HEALTH AND LIFE INSURANCE INDUSTRY

ABSTRACT

ANALYZING MILLENNIALS’ PURCHASE INTENTION REGARDING

PRIVATE HEALTH AND LIFE INSURANCE INDUSTRY

By

Stella Marissa Suwanpoh

Mochammad Riyadh Rizky Adam, S.T., M.S.M., Advisor

SWISS GERMAN UNIVERSITY

For the past 10 years, insurance in Indonesia has flourished with annual development
ranging from 10% to 30%. Despite its positive development, only 7.5% Indonesian
actually possess health and/or life insurance. Through several assessments, it was found
that millennials have been overlooked as opportunities. Various insurance policies were
offered, however capturing millennials’ interest became more challenging than
predicted. This research investigates the factors influencing millennials’ attitude toward
forming their perceived personal benefit and purchase intention regarding private health
and life insurance by using the Theory of Reasoned Action (Fishbein and Ajzen, 1975)
as its ground theory. The research targeted 400 millennials who lived in metropolitan
areas. Online questionnaire survey was conducted. Confirmatory Factor Analysis that
is supported in the Structural Equation Modelling was used to examine the hypotheses
and test the research model. Based on the results, perceived usefulness has the most
significant positive correlation with attitude. Attitude correlates positively the most with
insurance purchase intention. Perceived personal benefit also has positive correlation
with insurance purchase intention although with less significance than attitude.
Nonetheless, this study is limited to several metropolitan areas in West Java, Indonesia.
The present study is expected to broaden the rare, existing knowledge about health and
life insurance through the integrated theories and hypothesis testing. Additionally, the
study results may be proposed to be used as a basis for management to asses, adapt, and
improve their marketing division or overall organization.
Keywords: Insurance, Perceived Barriers, Perceived Usefulness, Social Influence,
Attitude, Perceived Personal Benefit, Theory of Reasoned Action.

Stella Marissa Suwanpoh

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IN THE PRIVATE HEALTH AND LIFE INSURANCE INDUSTRY

© Copyright 2019
by Stella Marissa Suwanpoh
All rights reserved

Stella Marissa Suwanpoh

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IN THE PRIVATE HEALTH AND LIFE INSURANCE INDUSTRY

ACKNOWLEDGEMENTS

First and foremost, all appreciation and gratitude to The Lord, Our Father, for His
bountiful blessings, knowledge, and strength in the making of this research. Great
efforts were taken for this assignment; however, it would not have been possible without
the relentless support, constant humor, and good faith of many individuals present
during this challenging time. I would like to extend my sincere gratitude to all of them.
To my Mother; Shirlyana Wahyudi, thank you for your encouragements whenever I felt
like giving up, for staying up until late at night and offering food or drinks to keep my
mind operating, for the break times or pauses you force myself to take after several
stressful days, and for staying by my side throughout this journey of self-discovery and
learning. To my Father; Gunawan Suwanpoh, your efforts in trying to help me see
things from different perspective in solving problems have been much appreciated. For
my other family members, thank you for never abandoning me by always offering
advices or assistance.

The one who came into my life like a bright ray of sunshine during my darkest hour,
who always have a way for making me laugh even when I was on the verge of a
meltdown, who now knows what to do to cheer me up; thank you for your
understanding, patience, weirdness, endless teasing and love.

Mr. Mochammad Riyadh Rizky Adam, S.T., M.S.M, thank you for guiding me every
step of the way. Your passion regarding health practices and social issues have driven
me to become a better person with broader perspective and fill this research with new
purposes, aside from it being a stepping stone to complete my studies. With your
insight, I believe this research will be of benefit to many others in their pursuit for a
fulfilled life. I also appreciate the trust and counsel from Mr. Alfiandri M.Acc., C.A.
and Mr. Fiter Abadi, M.B.A, as the Head of Business Administration who has provided
me with wisdom in my endeavor to complete this research. I would like to thank Dr.
Nila Krisnawati Hidayat, S.E, M.M., as the Dean of Business and Communication
Faculty which has helped me to manage matters related to this research.

Finally, for all members, staff, and community of Swiss German University, I thank
you for accepting me as one of the individual to uphold the alma mater.

Stella Marissa Suwanpoh

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IN THE PRIVATE HEALTH AND LIFE INSURANCE INDUSTRY

Table of Contents

Page
STATEMENT BY THE AUTHOR ............................................................................... 2
APPROVAL .................................................................................................................. 2
ABSTRACT ................................................................................................................... 3
COPYRIGHT ................................................................................................................. 4
ACKNOWLEDGEMENTS ........................................................................................... 5
TABLE OF CONTENTS ............................................................................................... 6
LIST OF FIGURES ....................................................................................................... 8
LIST OF TABLES ......................................................................................................... 9
CHAPTER 1 – INTRODUCTION .............................................................................. 10
1.1 Background ................................................................................................ 10
1.2 Research Problem ...................................................................................... 13
1.3 Research Question ..................................................................................... 15
1.4 Research Objectives ................................................................................... 15
1.5 Scope and Limitation ................................................................................. 16
1.6 Significance of Study ................................................................................. 16
CHAPTER 2 – LITERATURE REVIEW ................................................................... 18
2.1 Framework of Thinking ............................................................................. 18
2.1.1 Theory of Reason Action ................................................................. 19
2.1.2 Perceived Usefulness ....................................................................... 20
2.1.3 Social Influence ................................................................................ 22
2.1.4 Perceived Barriers ............................................................................ 24
2.1.5 Attitude............................................................................................. 26
2.1.6 Perceived Personal Benefit .............................................................. 28
2.1.7 Insurance Purchase Intention ........................................................... 30
2.2 Previous Study ........................................................................................... 32
2.3 Study Difference ........................................................................................ 36
2.4 Research Model .......................................................................................... 38
2.5 Hypothesis Development ........................................................................... 38
CHAPTER 3 – RESEARCH METHODOLOGY ....................................................... 41
3.1 Type of Study ............................................................................................. 41

Stella Marissa Suwanpoh

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IN THE PRIVATE HEALTH AND LIFE INSURANCE INDUSTRY

3.2 Unit of Analysis ......................................................................................... 41

3.3 Population and Sample Planning ............................................................... 41
3.3.1 Target Population ............................................................................. 41
3.3.2 Sampling Method ............................................................................. 42
3.3.3 Sampling Size .................................................................................. 42
3.4 Time Frame of Study ................................................................................. 43
3.5 Data Sources and Collection ...................................................................... 44
3.5.1 Type of Data ..................................................................................... 44
3.5.2 Interview Guidelines ........................................................................ 45
3.5.3 Questionnaire Development and Structure ...................................... 47
3.5.4 Data Collection Method ................................................................... 49
3.6 Variable Operationalization ....................................................................... 49
3.7 Data Processing Procedures ....................................................................... 52
3.8 Data Analysis Technique ........................................................................... 53
3.8.1 Pre-Test ............................................................................................ 53
3.8.2 Post-Test........................................................................................... 57
CHAPTER 4 – RESULTS AND DISCUSSIONS ....................................................... 60
4.1 Brief Industry Background ......................................................................... 60
4.2 Descriptive Analysis of Respondents ......................................................... 61
4.3 Classical Assumption Test ......................................................................... 66
4.4 Structural Equation Modelling Test ........................................................... 71
4.5 Discussion .................................................................................................. 80
CHAPTER 5 – CONCLUSION AND RECOMMENDATIONS ............................... 84
5.1 Conclusion.................................................................................................. 84
5.2 Managerial Implications............................................................................. 85
5.3 Recommendations ...................................................................................... 90
GLOSSARY ................................................................................................................ 91
REFERENCES ............................................................................................................ 92
APPENDICES ............................................................................................................. 99
CURRICULUM VITAE ............................................................................................ 170

Stella Marissa Suwanpoh