Factors Influencing Purchase Decisions Of Life Insurance Customers: Case Oromia Insurance Company Shegar City Melka Nono Sub City Ashewa Meda Branch (Oic).

Abstract

This research was designed to identify the factors influencing purchase decision of life insurance customers: in case of Oromia Insurance Company (OIC) and which factors significantly affect buyers’ purchase decision of life insurance policy includes demographic, economic and socio-cultural. Primary data was collected through structured questionnaires. The study used an explanatory research design and was used quantitative and qualitative research approaches. The researchers were used both primary and secondary sources of data in the course of the study. The data was analyzed by using SPSS software version 27. In addition to this, descriptive statistics such as mean and standard deviation and inferential statistics as multiple regression and Pearson correlation was used to analyze the data. The questionnaires were distributed to a sample of 236 buyers of life insurance policy from OIC. These questionnaires were distributed to active policy holders of residents of Addis Ababa. To this end, non random convenience sampling has been undertaken. As the findings of the study huge numbers of customers are male. According to end result of the findings large number of respondents’ customers are male. As of the findings religion of customers are one of the socio-cultural factors that was believed to probably have an influence on the attitude of buyers to an insurance policy purchase. This indicates that there is high relation or correlation between Religion and Attitude of Buyers’ life purchase. Therefore, the null hypothesis” Religion has association with buyers’ attitude to life insurance policy purchase is rejected. Another important finding in this study is that educational status of buyers significantly influences life insurance purchase decision. The study was also Limited to the responses obtained from individual respondents. Since it is easy to find out the exact reason for their patronage of life insurance