Opinion Leaders Moderated Financial Literacy and Relationship Marketing Influence on Decisions as Life Insurance Customers

Abstract

Insurance companies are experiencing rapid growth amidst intense competition, necessitating enhanced abilities among insurance marketers to influence prospective clients' decisions. In this context, the presence of opinion leaders serves as crucial reference providers. This study aims to examine the impact of financial literacy and relationship marketing, mediated by opinion leaders, on consumer decision-making. Data were gathered through a Thurstone scale questionnaire administered to 117 active insurance customers in Surabaya, employing a non-probability sampling method, specifically targeting PT.IAI insurance customers. Path analysis reveals that both financial literacy and relationship marketing exert simultaneous influence on customer decisions. Financial literacy directly affects customer decisions, while relationship marketing also has a direct impact. Moreover, when considering moderating variables such as opinion leaders, the analysis demonstrates that financial literacy and relationship marketing collectively influence customers' decisions to opt for life insurance. Financial literacy, when moderated by opinion leaders, significantly affects the decision to purchase insurance, while relationship marketing facilitated by opinion leaders positively influences the decision to choose life insurance. Furthermore, opinion leaders exhibit a dominant role in influencing customer decisions, showcasing their substantial contribution to customers' choices regarding insurance products.