National culture and life insurance consumption
- 459 Downloads
This cross-disciplinary study examines the way national culture affects consumption patterns of life insurance across countries. Life insurance is a service that is abstract, complex, and focused on unsure future benefits. Because of the uncertainty and ambiguity inherent in the life insurance product, consumers are more likely to respond according to their cultural prescriptions. Our research hypotheses are tested empirically using Hofstede's cultural dimensions, and data from 1976–2001 across 41 countries. The findings show that individualism indeed has a significant, positive effect on life insurance consumption, whereas power distance and masculinity/femininity have significant, negative effects. The results are robust, even after controlling for economic, institutional and demographic determinants.
Keywordsnational culture insurance insurance consumption Hofstede
We thank our colleagues Helen Doerpinghaus and Xu Huang for providing helpful comments. Andy Chui acknowledges the financial support from the Hong Kong Polytechnic University (A-PG29), and Chuck Kwok gratefully acknowledges the support of the Center for International Business Education and Research (CIBER) at the University of South Carolina for this research project.
- Beck, T., Demirguc-Kunt, A., & Levine, R. 2003. A new database on financial development and structure. Working paper, World Bank.Google Scholar
- De Mooij, M. 1998a. Global marketing and advertising: Understanding cultural paradoxes. Thousand Oaks, CA: Sage.Google Scholar
- De Mooij, M. 1998b. Masculinity/femininity and consumer behaviour. In G. Hofstede and Associates (Eds), Masculinity and femininity: The taboo dimension of national cultures. Thousand Oaks, CA: Sage, 55–73.Google Scholar
- De Mooij, K. 2001. Convergence–divergence. Unpublished doctoral dissertation, Universidad de Navarra.Google Scholar
- Hofstede, G. 2001. Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations, (2nd ed.) Beverly Hills, CA: Sage.Google Scholar
- Hofstede, G., & Bond, M. H. 1988. The Confucius connection: From cultural roots to economic growth. Organizational Dynamics, 15 (1): 4–21.Google Scholar
- House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. 2004. Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA: Sage.Google Scholar
- Judge, G. G., Hill, R. C., Griffiths, W., Lutkepohl, H., & Lee, T. C. 1988. Introduction to the theory and practice of econometrics, (2nd ed.) New York: John Wiley & Sons.Google Scholar
- Leung, K., Bond, M. H., Reimel de Carrasquel, S., Munoz, C., Hernandez, M., Murakami, F., Yamaguchi, S., Bierbrauer, G., & Singelis, T. M. 2002. Social axioms: The search for universal dimensions of general beliefs about how the world functions. Journal of Cross-Cultural Psychology, 33 (3): 286–302.CrossRefGoogle Scholar
- Schwartz, S. H. 1994. Beyond individualism/collectivism: New cultural dimensions of values. In U. Kim, H. C. Triandis, Ç. Kagitcibasi, S. -C. Choi & G. Yoon (Eds), Individualism and collectivism: Theory, method and applications. Thousand Oaks, CA: Sage, 85–99.Google Scholar