The effects of cultural tightness and perceived unfairness on Japanese consumers’ attitude towards insurance fraud: the mediating effect of rationalization

Abstract

The paper examines the effects of cultural tightness, rationalization, and perceived unfairness on Japanese consumers’ attitude towards insurance fraud. The results show a positive effect of perceived inequity/unfairness on acceptance of fraud and a partial mediation of rationalization on insurance fraud acceptance, whereas cultural tightness was found to weigh against the acceptance of fraud. This would suggest that, while the perception of being unfairly treated by an insurance company and reframing a fraudulent behaviour as non-condemnable conduct contribute to fraud acceptance, the strength of social norms and the degree of sanctioning would reduce fraud tolerance. From a managerial perspective, global insurance companies would take advantage from understanding the role of cultural tightness in fighting against fraud. Furthermore, the use of counter-neutralization techniques would be helpful to reduce the effect of rationalization on public tolerance for insurance fraud.

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Acknowledgements

The authors acknowledge the financial support of Social Science and Humanities Research Council of Canada (SSHRC)-Insight Development grant to this research.

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Correspondence to Haithem Zourrig.

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Zourrig, H., Park, J. The effects of cultural tightness and perceived unfairness on Japanese consumers’ attitude towards insurance fraud: the mediating effect of rationalization. J Financ Serv Mark 24, 21–30 (2019). https://doi.org/10.1057/s41264-019-00061-w

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Keywords

  • Cultural tightness
  • Rationalization
  • Counter-neutralization
  • Insurance fraud