Integrate all elements of the promotion mix

Oct 13, 2025 by leolavanderia.com.br 24 views

Effect of Promotional Mix on the Purchasing Decision of Insurance Policy at PT. Insurance Allianz Life Indonesia Medan Branch

Introduction

In today's highly competitive business landscape, understanding the impact of promotional mix on purchasing decisions is crucial for insurance companies to stay ahead of the game. The promotional mix, which includes advertising, public relations, personal sales, sales promotions, and direct marketing, plays a vital role in influencing the purchasing decisions of potential customers. This study aims to explore the effect of promotional mix on the purchasing decision of insurance policy at PT. Insurance Allianz Life Indonesia Medan Branch, a leading insurance company in Indonesia.

Background of the Study

The insurance industry is a complex and risk-averse market, where consumers often require in-depth explanations and personal approaches before making big decisions. In this context, the promotional mix becomes a critical factor in influencing purchasing decisions. The study aims to investigate the impact of various promotional elements on the purchasing decisions of Allianz customers in Medan Branch.

Methodology

The study used a purposive sampling method to select 100 Allianz customers as the sample population. Data was collected through interviews, questionnaires, and documentation studies, and processed using descriptive analysis and statistical analysis. The results showed that the promotion mix had a significant influence on overall purchasing decisions.

Results

The analysis revealed that personal sales and sales promotion had a significant positive influence on purchasing decisions, while advertising variables, public relations, and direct marketing showed positive influence but were insignificant. The Adjusted R Square value obtained from the analysis of the determinant coefficient (R²) showed that 42.7% of the purchasing decision can be explained by the promotion mix.

Discussion

The results of the study suggest that the promotion mix plays a crucial role in influencing purchasing decisions in the insurance industry. Personal sales and sales promotion serve to establish more personal and direct communication with customers, making it easier for companies to understand their needs and desires. This also allows insurance agents to explain products in more detail, which is very important given the number of insurance products available in the market.

Additional Analysis and Explanation

The promotion mix is a critical factor in the purchasing decision in the insurance industry, which is often complex and involves risks. Personal sales and sales promotion serve to establish more personal and direct communication with customers, making it easier for companies to understand their needs and desires. This also allows insurance agents to explain products in more detail, which is very important given the number of insurance products available in the market.

Meanwhile, advertising and public relations, despite having a positive influence, were apparently not as strong as personal sales and sales promotion. This may be caused by the nature of insurance products that require an in-depth explanation and personal approach. Consumers often need confidence and trust before making big decisions such as buying insurance policies.

Conclusion

In conclusion, insurance companies such as PT. Insurance Allianz Life Indonesia Medan Branch need to integrate all elements of the promotion mix well to improve purchasing decisions. The use of appropriate promotional techniques, especially personal sales and sales promotion, can be an effective strategy to attract more customers and build long-term loyalty. In the future, it is essential for companies to continue to conduct research and explore other variables that can influence purchasing decisions, in order to gain more comprehensive insights in marketing efforts.

Recommendations

Based on the findings of this study, the following recommendations are made:

Integrate all elements of the promotion mix: Insurance companies should integrate all elements of the promotion mix, including advertising, public relations, personal sales, sales promotions, and direct marketing, to improve purchasing decisions.
Use personal sales and sales promotion: The use of personal sales and sales promotion can be an effective strategy to attract more customers and build long-term loyalty.
Conduct further research: Insurance companies should continue to conduct research and explore other variables that can influence purchasing decisions, in order to gain more comprehensive insights in marketing efforts.

Limitations of the Study

This study has several limitations, including:

Sample size: The sample size of 100 Allianz customers may not be representative of the entire population of insurance customers in Medan Branch.
Data collection method: The data collection method used in this study may not be comprehensive, and may not capture all the relevant variables that influence purchasing decisions.
Analysis method: The analysis method used in this study may not be the most appropriate, and may not capture the complex relationships between the variables.

Future Research Directions

Future research should aim to:

Investigate other variables that influence purchasing decisions: Future research should investigate other variables that influence purchasing decisions, such as demographic characteristics, lifestyle, and behavioral factors.
Use more comprehensive data collection methods: Future research should use more comprehensive data collection methods, such as surveys, interviews, and focus groups, to capture all the relevant variables that influence purchasing decisions.
Use more advanced analysis methods: Future research should use more advanced analysis methods, such as regression analysis and structural equation modeling, to capture the complex relationships between the variables.
Q&A: Effect of Promotional Mix on the Purchasing Decision of Insurance Policy at PT. Insurance Allianz Life Indonesia Medan Branch

Frequently Asked Questions

Q: What is the promotional mix, and how does it affect purchasing decisions?

A: The promotional mix refers to the combination of advertising, public relations, personal sales, sales promotions, and direct marketing used by companies to influence purchasing decisions. The study found that the promotional mix has a significant influence on overall purchasing decisions, with personal sales and sales promotion being the most dominant variables.

Q: What are the key findings of the study?

A: The study found that personal sales and sales promotion had a significant positive influence on purchasing decisions, while advertising variables, public relations, and direct marketing showed positive influence but were insignificant. The Adjusted R Square value obtained from the analysis of the determinant coefficient (R²) showed that 42.7% of the purchasing decision can be explained by the promotion mix.

Q: Why is personal sales and sales promotion more effective than advertising and public relations?

A: Personal sales and sales promotion are more effective because they allow for direct communication with customers, making it easier for companies to understand their needs and desires. This also allows insurance agents to explain products in more detail, which is very important given the number of insurance products available in the market.

Q: What is the role of direct marketing in the promotional mix?

A: Direct marketing, including social media and email communication, is becoming increasingly relevant in the current digital era. Although the effect is not significant in this context, marketing practices involving social media and communication through email may be a good step to strengthen interaction with consumers and build brand awareness.

Q: What are the implications of the study for insurance companies?

A: The study suggests that insurance companies should integrate all elements of the promotion mix well to improve purchasing decisions. The use of appropriate promotional techniques, especially personal sales and sales promotion, can be an effective strategy to attract more customers and build long-term loyalty.

Q: What are the limitations of the study?

A: The study has several limitations, including a sample size of 100 Allianz customers, which may not be representative of the entire population of insurance customers in Medan Branch. The data collection method used in this study may not be comprehensive, and may not capture all the relevant variables that influence purchasing decisions.

Q: What are the future research directions?

A: Future research should aim to investigate other variables that influence purchasing decisions, such as demographic characteristics, lifestyle, and behavioral factors. Future research should also use more comprehensive data collection methods, such as surveys, interviews, and focus groups, to capture all the relevant variables that influence purchasing decisions.

Q: What are the practical implications of the study for insurance companies?

A: The study suggests that insurance companies should:

Integrate all elements of the promotion mix: Insurance companies should integrate all elements of the promotion mix, including advertising, public relations, personal sales, sales promotions, and direct marketing, to improve purchasing decisions.
Use personal sales and sales promotion: The use of personal sales and sales promotion can be an effective strategy to attract more customers and build long-term loyalty.
Conduct further research: Insurance companies should continue to conduct research and explore other variables that can influence purchasing decisions, in order to gain more comprehensive insights in marketing efforts.

Q: What are the future directions for the insurance industry?

A: The future directions for the insurance industry include:

Increased use of digital marketing: The insurance industry should increasingly use digital marketing, including social media and email communication, to strengthen interaction with consumers and build brand awareness.
Personalization of products and services: The insurance industry should increasingly personalize products and services to meet the needs and desires of individual customers.
Increased focus on customer experience: The insurance industry should increasingly focus on customer experience, including providing excellent customer service and ensuring that customers have a positive experience with the company.