Integrated BBA -MBA

Programme
Term VIII Batch (2021-26)

Group Assignment
Research Methodology

“Influence of Fear Appels on Purchase of Life Insurance”

Submitted to:
Prof. Sunita Guru

On:
16/12/2023

Names of Student Roll No. Division

Shubham Shah 217162 A
Viraj Ganatra 217171 A
Yash Kalsariya 217172 A
Kaustubh Fadtare 217176 A
Utkarsh Mathur 217179 A
Group-16

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 Table of Contents

Acknowledgment ........................................................................................................................ 3
Abstract ....................................................................................................................................... 4
Introduction ................................................................................................................................ 4
Literature Review ....................................................................................................................... 6
Research Gap .............................................................................................................................. 9
Research Methodology and Data Collection Method ............................................................. 9
Data Analysis and Discussion .................................................................................................. 10
Measuring the influence of advertisement on the basis of the age group ......................................... 10

Analysis ............................................................................................................................................ 12

Purchase behaviour based on demographics ..................................................................................... 15

Key Findings ..................................................................................................................................... 18

Key determinants for evaluating life insurance ................................................................................ 19

Implications............................................................................................................................... 20
Customer Attitude towards Life Insurance ........................................................................... 20
Limitations and future research.............................................................................................. 22
Conclusion ................................................................................................................................. 24
References ................................................................................................................................. 26
Undertaking .............................................................................................................................. 28

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 Acknowledgment

This endeavour has taken a lot of time and work on our part. The completion of this project,
however, would not have been possible without the help and advice of a large number of
people. We would like to express our heartfelt gratitude to each and every one of them.

We owe Prof. Sunita Guru a huge debt of gratitude for his assistance and oversight. We would
like to express our gratitude to her for giving us the information and resources we needed for
this project.

Our gratitude and appreciation also extend to our colleagues who assisted in the development
of the project. Thank you to everyone who has volunteered their time and talents to assist us.

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 Abstract

In the world of personal finance, life insurance is special since it is a financial tool meant to
offer security against life's unforeseen events. This study looks into the complex ways that fear
affects consumers' decisions when it comes to buying life insurance. The research examine
how fear, when applied strategically, affects consumer perceptions of risk and the perceived
urgency of obtaining life insurance coverage through an analysis of empirical studies, real-
world marketing campaigns, and the examination of demographic factors, cultural nuances,
and individual differences. The purpose of this study is to help our knowledge of the
psychological aspects affecting decisions to buy life insurance, educate the public about
evidence-based tactics for boosting insurance coverage and financial stability in areas with low
insurance penetration and determine any moral dilemmas that could arise from the use of fear-
based advertising in the insurance industry. Through analysis of the efficacy of fear appeals,
their moral implications, and their influence on customer behaviour, this study intends to
contribute to the development of industry practices, regulatory frameworks, and marketing
strategies related to life insurance.

Introduction

Fear is a natural feeling that is ingrained in our DNA and acts as a strong incentive to keep us
safe from harm and to secure our survival. When it comes to making financial decisions,
marketers might use fear to incite concerns about being vulnerable financially, losing loved
ones, and not being able to handle unanticipated events. For example, life insurance
advertising could show heartbreaking pictures of families drowning in medical debt, kids
having to drop out of school, or couples drowning in debt following the untimely death of a
breadwinner. These intensely personal stories appeal to our worst fears, making us feel
compelled to take immediate action to shield our loved ones and ourselves from similar
tragedies. Between 2019 and 2023, the insurance market in India is predicted to grow at a
compound annual growth rate (CAGR) of 5.3%. India had a 4.2% insurance penetration rate in
the fiscal year 2022, with the life insurance industry accounting for the majority of this. The
previous five years have seen an increase in penetration, which is encouraging for the
insurance market's overall growth and maturity in India.During the 2022 fiscal year, India's life

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 insurance density was around 69 U.S. dollars, whilst the non-life insurance density was 22 U.S.
dollars. The ratio of insurance premiums (in US dollars) to the total population is used to
calculate insurance density.

Like insurance penetration in India, the density increased until the 2010 fiscal year, at which
point it started to gradually fall. The data began to slowly rise again during the 2017 fiscal
year, suggesting that the nation's insurance density was beginning to recover.

A life insurance policy is simply an agreement between a policyholder and an insurance

company, whereby the latter agrees to make periodic payments to the policyholder's
beneficiary or family in exchange for a certain sum of money. Known as premium payments,
these are typically made once a year. The policyholder is the one who purchases the insurance.
If a policyholder dies suddenly, life insurance guarantees that the policyholder's family will
receive a lump sum payment. Money cannot replace a loss, but it may assure that the family
will not have financial difficulties even after the breadwinner passes away. The life insurance
policy gives you the essential protection against danger and gives you chances to increase your
savings. It is also a useful tool for helping you save money for potential future costs like a
child's marriage or a college education.

Life insurance is important, particularly for parents of small children, special needs children,
and anyone looking to protect their family's financial future or accumulate money over time.
Since the premium price increases with age, if the policyholder smokes or has a history of
medical issues, it is advisable to purchase insurance early.

This paper explores the complex relationship between fear appeals and life insurance
purchases, which are important financial decisions frequently influenced by security and risk
considerations.

Life insurance occupies a special place in the financial portfolios of people and families
because it provides protection against future uncertainty. Buying life insurance is a decision
that is influenced by perceptions of risk, mortality, and the need to shield loved ones
financially in the event of an unexpected event. Fear appeals are designed to emphasize the
need for taking preventative action and to increase perceived dangers. They are typified by the
elicitation of fear-inducing stimuli. In the life insurance environment, fear appeals aim to
convey the possible repercussions of not obtaining sufficient coverage, imploring customers to
face and lessen the dangers that come with life's uncertainties.

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 The study focuses more into the phases of consumer decision-making, examining the ways in
which fear appeals affect awareness, deliberation, and the ultimate stage of decision-making.
The study compares fear-based marketing tactics used by several life insurance companies to
highlight the benefits and drawbacks of these tactics in terms of competition. A comprehensive
understanding of the complex link between fear appeals and life insurance purchase decisions
is provided by the examination of long-term customer satisfaction, cultural and societal factors,
and future trends in fear-based communications. In conclusion, the study offers suggestions for
regulators, legislators, and insurers, highlighting a well-rounded strategy that optimizes the
impact of fear appeals while guaranteeing moral concerns and the welfare of consumers.

Literature Review

Fear appeals are constructed based on the emotion of fear. Fear is defined as an unpleasant
emotional state marked by the expectation of pain or extreme distress, accompanied by
increased activity in the autonomic nervous system. It can also refer to the state or tendency of
feeling agitation or dismay. Additionally, fear can be described as something that causes
apprehension or alarm.

Fear developed as a tool to safeguard humans from perilous circumstances. Therefore, the
utmost significance lies in survival and the dominant role of the brain's fear circuitry in
evolution.

As a result of this intricate network of electrical connections, fear exerts a greater influence
than rationality. Occasionally, fear can be readily and illogically triggered due to factors rooted
in humanity's evolutionary history. As an illustration, the act of responding to an imaginary
danger, such as mistaking a stick for a snake, is less risky compared to the opposite scenario -
neglecting to react to a real snake that poses a genuine harm. The brain appears to be
instinctively programmed to react with a flinch response before engaging in a process of
inquiry. Consequently, fear can be readily and falsely ignited in a manner that is illogical and
impervious to rationality. The sources cited are Begley et al. (2007) and Maren (2008).[1][2]

While numerous marketers possess the ability to identify a fear-based appeal, there is a lack of
consensus regarding the factors that determine the classification of a message as a fear appeal
(Witte, 1993).[3] Typically, a fear appeal presents the potential dangers associated with both

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 utilising and not using a particular product, service, or concept. dread appeals, as defined by
Kim Witte (1992, 1994), are persuasive messages that elicit dread by portraying a threat that is
personally meaningful and substantial. These messages are then followed by practical
recommendations for preventing or mitigating the threat. The citation for this information is
(Gore, Madhavan, Curry, McClurg et al., 1998, 34).[4] Fear appeals operate on the basis that
they leverage a perceived threat to an individual's welfare, so stimulating them to act, such as
gaining more control over a situation or averting an undesirable result. A fear appeal is a form
of advertisement that can induce worry in individuals about the consequences of their poor
lifestyle, making it a "psychoactive" ad (Hyman and Tansey, 1990).[5] The authors of the
publication are Lewis, Watson, Tay, and White, and the publication was released in 2007.

A fear appeal consists of three primary components: fear, danger, and perceived efficacy. Fear
is an aversive feeling typically accompanied by increased physiological arousal. A threat
refers to an external stimulus that causes message receivers to perceive themselves as
vulnerable to a harmful circumstance or outcome. Perceived efficacy refers to an individual's
view that the instructions provided in a message may be successfully adopted and will
effectively lessen the depicted threat. The citation for this information is Gore et al., 1998,
page 36. According to the findings of Witte and Allen (2000),[6] fear appeals are most
successful when they incorporate significant levels of both threat and efficacy. Specifically,
the communication must include (1) a significant menace or crucial issue and (2) the precise
targeted measures that an individual might adopt to mitigate the threat or problem. The
individual must recognise the existence of a solution to the threat and possess the ability to
execute the required action. The sources used include Eckart (2011), Jones (2010), and
Lennon and Rentfro (2010).[7][8] Furthermore, Cauberghe, De Pelsmacker, Janssens, and
Dens (2009, 276) assert that “Message involvement is a full mediator between evoked fear,
perceived threat, and efficacy perception on the one hand, and attitudes towards the message
and behavioural intention to accept the message on the other.” [9]

Fear can serve as a potent catalyst for motivation. "In the conventional fear appeal scenario,
the target audience may experience fright and anxiety due to their perception of personal
danger." (Bagozzi and Moore, 1994, 56).[10] Indeed, more potent fear appeals elicit more
pronounced alterations in attitude, intention, and behaviour. Strong fear appeals are more
efficacious than weak fear appeals, as stated by Higbee in 1969. Furthermore, fear appeals are

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 most impactful when they present (1) substantial levels of a significant threat or crucial issue
and (2) substantial levels of effectiveness, meaning the perception that modifying one's
behaviour will diminish the threat or problem. That is to say, fear appeals are effective when
the consumer is induced with a high level of dread and subsequently presented with a solution
to alleviate this anxiety by following your recommendations. The reference is from the work
of Witte and Allen in the year 2000. Excessive fear can result in maladaptive anxiety (Higbee,
1969).[11] Typically, there is a clear correlation between mild to moderate degrees of fear
arousal and the alteration of attitudes (Krisher, Darley, & Darley, 1973).[12] Feeble fear
appeals may fail to capture sufficient attention, while potent fear appeals may prompt an
individual to evade or disregard a message through the deployment of defence mechanisms.
Significantly, employing strong fear appeals typically fails to achieve long-lasting shifts in
attitudes. The source cited is Ray and Wilkie's work from 1970.

According to Williams K. C. (2012), his paper reviews fear appeal theories and literature,
focusing on their effectiveness in increasing advertising's impact on consumer interest, recall,
persuasiveness, and behaviour change. It presents fourteen theories and findings, concluding
that fear appeals work, motivating people to safer and recommended behaviour. However,
concerns about broader marketing implications and potential breach of the Hippocratic
injunction of 'First, do no harm' exist. Further understanding can contribute to more effective
advertising practices.[13]

Fear appeal, according to Nabi, Roskos-Woldson, and Carpentier (2008) [14], should include
threat and efficacy information strong enough to arouse fear and provide information about
appropriate behavioural reactions.

Fear appeals, according to researchers like William (2007) [15], can be effectively employed to
boost the impact of advertising on consumer interest, recall, persuasiveness, and behaviour
modification. The truth about fear appeals is that they are effective; frightening material does
encourage people to behave in safer and more appropriate ways.

In their analysis of the association between age and the effectiveness of fear appeals, Boster &
Mongeau (1984) [16] found that fear appeals work better on older audiences. Age is a direct
correlation of perceived vulnerability to risks to one's health and safety. In general, younger
people believe that diseases, accidents, and deaths occur to older people or possibly to other
younger people.

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 As stated by Glascoff (2000) [17], Fear appeals are frequently utilised in a variety of marketing
messages, such as those promoting goods, services, concepts, and social causes. "Some
specific consequences will occur if you don't do this (buy, vote, believe, support, learn, etc.)" is
the main message. In other words, advertising incite anxiety by emphasizing the consequences
of abstaining from using the product or the consequences of acting riskily.

Research Gap

Limited Focus on Fear as a Purchasing Tool: The discussed research papers discuss fear in
relation to the COVID-19 pandemic as a driving force for buying insurance, especially health
insurance. However, Within the insurance industry, there is an information gap on the broader
use of fear appeals in different contexts.

Insufficient Examination of Fear Appeal Effectiveness: While emphasising that research results
are conflicting; the paragraph briefly discusses the effectiveness of fear appeals. There is a
deficiency of information in the literature concerning the efficacy of fear appeals in the
insurance industry, particularly with regard to life insurance, and whether or not increased fear
arousal results in favourable purchasing behaviour.

Limited Exploration of Other Motivations for Purchasing Health Insurance: The paragraph
discusses fear as a motive, but it doesn't go into great detail about other reasons people would
get life insurance. Understanding how economic and emotional incentives relate, as well as
other factors influencing decisions to obtain life insurance, is an area of major research need.

Limited Examination of Psychological Aspects: The emotional aspect of fear appeals is

mentioned in the text, but more research is needed to fully comprehend the psychological
processes at play when people choose to buy insurance out of fear.

Research Methodology and Data Collection Method

Quantitative Research: A survey was conducted where a questionnaire was floated amongst
people of different age groups and their opinions were collected regarding the role of fear

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 appeals in purchase of life insurance. The collected data is used to make further analysis
regarding the same.

The questionnaire consisted of around 15 questions including questions related to

demographics which helped in giving deep analysis of the research paper (annexure attached at
end). A wide range of age groups, from 18 to 65 and beyond, as well as different income
brackets and points of view made up the questionnaire sample size. This was a major factor in
achieving the study research paper's end outcome.

Comparative Analysis: Analysis of more than 20 research papers of the related topic was
conducted and a research gap was found. Keeping those research gaps found in mind, a
completely new data was formed which gave proper insights about the research topic.

Data Analysis and Discussion

Measuring the influence of advertisement on the basis of the age group

How many Respondent in the Age Group 18-34

years had Bought as a result of the influence of
the fear appeal in the Advertisment?

41.18%
No
58.82%
Yes

From the Above Pie chart, we can analyse that, out of the total respondents in the age group
18-34 years who have purchased Life insurance 58.2% have purchased life insurance as a
result of the concern or the fear highlighted in the advertisement.

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 How many Respondent in the Age Group 18-34
years had Bought as a result of the influence of the
fear appeal in the Advertisment?

36.84%
No
63.16%
Yes

From the Above Pie chart, we can analyse that, out of the total respondents in the age group
35-44 years who have purchased Life insurance 63.16% have purchased life insurance as a
result of the concern or the fear highlighted in the advertisement.

How many respondent in the Age Group 45-

54 years had Bought as a result of the
influence of the fear appeal in the
Advertisment?

40.00%
No
60.00%
Yes

From the Above Pie chart, we can analyse that, out of the total respondents in the age group 45-54 years
who have purchased Life insurance, 60% have purchased life insurance not because of the concern or the
fear highlighted in the advertisement.

How many respondent in the Age Group 55-64

years had Bought as a result of the influence
of the fear appeal in the Advertisment?

33.33%
No
66.67%
Yes

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 From the Above Pie chart, we can analyse that, out of the total respondents in the age group 55-64 years
who have purchased Life insurance 66.67% have purchased life insurance as a result of the concern or
the fear highlighted in the advertisement.

Analysis

Relationship between the number of people who

have encountered fear based advertisement and
how influential that the advertisement and it was
measured using Likert scale with a range from 1-5
(1- least influential and 5- most influential)
6.06% 9.09%
12.12% 1

30.30% 2

42.42% 3
4
5

The above pie chart shows the relationship between the number of people who have encountered fear-
based advertisement and how influential that the advertisement and it was measured using Likert scale
with a range from 1-5 (1- least influential and 5- most influential). From the above chart it can be analysed
that 42.42% respondent which is the maximum number of respondent have rate 4 for the influence the
advertisement had on the purchase decision of life insurance. It can be considered neutral that the
advertisement was not the only factor for the purchase decision of life insurance of the respondent but
was one of the major determinant of their purchase behaviour.

60.00%
% of total people who find the

50.00%
advertisement Influential

40.00%

30.00%
No
20.00% Yes

10.00%

0.00%
3 4 5
LIKERT SCALE OF INFLUENCE OF FEAR APPEAL

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 The above Graph depict the number of respondent who finds the advertisement influential based
on the fear appeal of it and had rated it on 3, 4, 5 on the lIkert scale and who have also extensively
researched before purchasing the life insurance and not rather just bought the life insurance based
on the fear appeal done by the marketer. Here, it can be analysed that the fear-based
advertisement is not the only determinant of the purchased behaviour of respondent towards life
insurance but it is one of the key determinant towards influencing the purchase behaviour of the
respondents.

How many Respondent are influenced by the advertisment if the marketer

depicts the risk associated with not having a life insurance
40.00%
% of total people who find the ffear appeal in Advertisement is

36.84%

35.00% 34.21%

30.00%

25.00%
accurate

20.00%

15.00%
13.16%

10.53%
10.00%

5.26%
5.00%

0.00%
1 2 3 4 5
LIKERT SCALE OF INFLUENCE OF FEAR APPEAL

The above Graph shows how the advertisement are influential to the respondent if the marketer
depicts the risk associated with not having a life insurance. From the above graph it can be
analysed that the people who have respondent positively towards being accuracy of the risk
depicted in the advertisement have rated 3, 4(36.54% have rated 3 and 34.21 % have rated 4)
on the scale of measuring the influence of the advertisement.

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 The above Graph depicts how the marketer by depicting the fear accurately influences the
purchasing decision of the respondent and after purchasing whether the perception of the
respondent towards the fear is changed or not. From the above Graph, It can be observed that
the people in the Likert scale of 3 and 4 can be seen with high level of change in their perception
towards the fear appeal in the advertisement.

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 The above graph depicts how the people influenced by fear appeal advertisement on life
insurance on different Likert Scale would recommend other to buy the life insurance. From the
Above graph it could be analysed that the respondent on the scale of 3 and 4 majorly want to
recommend other to purchase life insurance.

Purchase behaviour based on demographics

How Many respondent purchased life insurnace because of

the fear Appeal in Advertisment categorised by Occupation
% of people who have purchased Life

50.00%
45.00%
40.00%
35.00%
30.00%
insurance

25.00%
20.00%
15.00% Yes
10.00%
5.00%
0.00%

Employement Status

The Above Graph show the purchase behaviour of the people who are influenced by the fear
appeal of advertisement and have purchased life insurance because of it which is categorised by
the employment status. From the above graph, it can be observed that the respondent in the
employed level status have the influence of the fear-based advertisement because of which they
have purchased the life insurance.

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 How Many respondent purchased life insurnace
because of the fear Appeal in Advertisment

% of people who have purchased Life

categorised by Occupation
35.00%
30.00%
25.00%
20.00%
15.00%
insurance

10.00%
5.00%
0.00%

INCOME LEVEL(in Rs)

The Above Graph show the purchase behaviour of the people who are influenced by the fear
appeal of advertisement and have purchased life insurance because of it which is categorised by
the Income level. From the above graph, it can be observed that the respondent in the income
level of more than 120000rs have the influence of the fear-based advertisement because of which
they have purchased the life insurance.

How Many respondent purchased life insurnace

because of the fear Appeal in Advertisment
categorised by Occupation
% of people who have purchased Life insurance

35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

INCOME LEVEL(in Rs)

The Above Graph show the purchase behaviour of the people who are influenced by the fear
appeal of advertisement and have purchased life insurance because of it which is categorised by

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 the Income level. From the above graph, it can be observed that the respondent in the income
level of more than 120000rs have the influence of the fear-based advertisement because of which
they have purchased the life insurance.

How Many respondent purchased life insurnace because of

the fear Appeal in Advertisment categorised by Gender
% of people who have purchased Life

70.00%

60.00%

50.00%
insurance

40.00%
Yes
30.00%

20.00%

10.00%

0.00%
Female Male
Employement Status

The Above Graph show the purchase behaviour of the people who are influenced by the fear
appeal of advertisement and have purchased life insurance because of it which is categorised
by gender. From the above graph, it can be observed that the respondent who are males have
the major influence of the fear-based advertisement because of which they have purchased the
life insurance.

The analysis of the major factors that the respondent thinks is most important when
considering life insurance. The below given Chart shows the responses given by 55 people
who have considered purchasing life insurance. The respondents have given the more
importance to the coverage amount as it has received 2% votes from respondent.

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 From the below chart it can be observed that the respondents have given most worried the the
fear of unknown and unexpected event in theirs because of which they are considering the
purchase of life insurance

Key Findings

Fear-based advertisements are widely encountered, with 70.4% of respondents reporting

exposure to such ads.

The impact of fear-based marketing differs across age groups. Among respondents, 58.2% of
individuals in the 18-34 age group and 63.16% in the 35-44 age group reported buying life
insurance as a result of fear appeal in advertisements.

Nevertheless, a mere 40% of individuals in the 45-54 age group and 44.44% of individuals in
the 55-64 age group ascribed their purchase to fear appeals.

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 The dread that had the greatest impact was associated with uncertainties and unforeseen
circumstances (31.8%), followed by worry about the financial stability of one's family
(27.3%), and feelings of vulnerability after death (25.5%).

Although 42.42% of respondents assessed the advertising as moderately impactful (with a

Likert scale score of 4), a substantial proportion (30.3%) engaged in active study and
comparison of options before making a purchase. This indicates a complex decision-making
process that goes beyond a simple fear response.

70.75% of respondents viewed the accuracy of risk portrayal in advertising positively, which
further enhances the persuasive impact of fear appeals.

Individuals who were impacted by dread were significantly more inclined to endorse life
insurance to others, with a majority of 62.5% rating their likelihood on a Likert scale of 3-4.

Population characteristics and consumer buying habits:

• Individuals who were employed and had higher salaries, specifically exceeding 120,000
INR, had a greater vulnerability to fear-based advertising.
• Male individuals exhibited a little higher susceptibility to fear appeals compared to their
female counterparts.

Key determinants for evaluating life insurance

The respondents ranked coverage amount as the most significant aspect, with 22.7%
considering it the most important. The cost of premium followed closely behind, with 20.4% of
respondents prioritising it. The reputation of the organisation was also a significant
consideration, with 18.2% of respondents considering it crucial.

The respondents' primary concern while choosing life insurance was the apprehension about
unfamiliar and unforeseen situations, which accounted for 34.5% of the respondents.

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 Implications

• Appeals based on fear work better on younger audiences (18–34 and 35–44) than they do on
older audiences (45–54 and 55–64). This implies that people who are earlier in their life
cycle and have more to lose can respond better to fear appeals.
• The most powerful fear appeals are uncertainties and unforeseen events, which are followed
by worries about financial stability and vulnerability after death. This implies that appealing
to basic human concerns about the future and the welfare of close ones will likely be more
well-received by customers.
• The persuasive power of fear appeals is increased when hazards are accurately portrayed in
advertising. This implies that advertisements should be open about the advantages of life
insurance in reducing those risks, and that fear appeals should be grounded on actual threats
that people are likely to encounter.
• When selecting life insurance, the three most important elements to consider are the
coverage amount, premium cost, and organisational reputation. This implies that consumers
consider these three variables the most when choosing a life insurance policy, and that
marketers must highlight these elements in their message and advertising.

Customer Attitude towards Life Insurance

Attitudes are seen as evaluations that are shaped via firsthand encounters with the social
environment and personal observations [18]. Attitude can be conceptualized as an abstract
idea, representing the degree to which an individual has a positive or negative inclination
towards a specific topic [19]. The individual's response to a stimulus object is influenced by
their attitude towards that thing [20]. These responses are then classified into three distinct
categories, known as cognitive, emotional, and behavioural components of attitude. The
cognitive component pertains to an individual's thought processes, the affective or emotional
component relates to their nervous responses and feelings, and the behavioural or conative
component refers to their behavioural tendencies. The reaction from the aforementioned
component can be utilised to comprehend an individual's attitude. A study conducted in China
has found that consumers' perception of the life insurance sector is a significant factor
influencing their decision to purchase life insurance [21]. In Nigeria, Nigerians are discouraged

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 from purchasing insurance due to their lack of trust in the claim processing and payment
methods of life insurance providers [22]. According to reports, customers have been observed
to buy life insurance policies when they believe that it can improve their quality of life [23].
Therefore, the greater the favourability towards insurance and its providers, the greater the
level of acceptance [24]. Consequently, by examining prior research, it is anticipated that
attitude will exert a favourable impact on purchase intention.

Advertising plays a crucial role in our society. Robinson, as stated in Ashkan (2016), asserts
that advertising is a key aspect of contemporary company operations.[25] Advertising is an
effective method to ensure that a product remains prominent in the minds of potential
customers. This is achieved by exposing them to advertising messages through various
mediums such as television, magazines, radio, internet, and even while walking outdoors. It is
important to note that advertising has a significant impact on influencing customer purchasing
behaviour. The prevalence of advertisements is driven by marketers' desire to reach a wide
audience, maximise product exposure, foster brand loyalty, discourage competition, and
ultimately boost sales revenue and profits for the organisation (Ashkan, 2016). Idris (2018)
[25][26] utilised Ajzen's theory of planned behaviour (TPB) to explain the acceptance and
utilisation of insurance services among individuals from northern Nigeria. The study revealed
that religious values, subjective norms, and behavioural control factors do not adequately
explain the low acceptance and utilisation rates. Instead, the persistence of these negative
occurrences can be attributed to ineffective marketing strategies. Therefore, the role of
advertising is crucial and should not be underestimated. Advertising refers to the dissemination
of informational or persuasive messages through non-personal channels, which are financially
supported by a recognised sponsor. Its purpose is to influence an audience (viewers, readers, or
listeners) to perform specific actions related to products, ideas, or services. Corporate
advertising serves the purpose of conveying a comprehensive narrative about a company.
Large organisations often utilise corporate ads to streamline their public image among
important stakeholders and to demonstrate the cohesive elements that bind the company
together, despite its diverse geographical presence and range of business activities. This form
of advertising aims to establish and promote the brand, raise awareness, and create an
impression of the brand as being larger and readvertising is crucial for the success or failure of
a firm in today's market. The capacity to engage with target audiences, communicate
messages, and establish a comprehensive reputation for an individual or corporation are
influential instruments. In fact, several companies allocate a significant portion of their

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 expenditures into advertising endeavours in order to leverage these tools to their furthest
advantage.

Fear appeals are intricate instruments that utilise the sensation of dread to encourage desired
behaviours. They provide the potential for advantageous outcomes, but also raise ethical
considerations. When it comes to driving change in areas such as health and safety, especially
among older audiences, it is crucial to create these messages with caution in order to prevent
causing excessive worry or failing to grab attention. Studies indicate that when utilising this
potent motivator, it is advisable to include robust elements of both threat and efficacy, maintain
a harmonious blend of mild fear stimulation and explicit solutions, and consider cultural
characteristics such as age and trust in institutions. Ultimately, comprehending the subtleties of
fear appeals can aid in appropriate and effective communication in diverse circumstances.

Fear appeals are intricate instruments that utilise the sensation of dread to encourage desired
behaviours. They provide the potential for advantageous outcomes, but also raise ethical
considerations. When it comes to driving change in areas such as health and safety, especially
among older audiences, it is crucial to create these messages with caution in order to prevent
causing excessive worry or failing to grab attention. Studies indicate that when utilising this
potent motivator, it is advisable to include robust elements of both threat and efficacy, maintain
a harmonious blend of mild fear stimulation and explicit solutions, and consider cultural
characteristics such as age and trust in institutions. Ultimately, comprehending the subtleties of
fear appeals can aid in appropriate and effective communication in diverse circumstance.

Limitations and future research

Ethical concern: a major part of fear appeal to be addressed in future researches is the ethical
concern of this type of marketing. Fear marketing involves manipulation, exploitation of
watcher’s emotional vulnerability and has other unethical aspects to it. Fear appeals can take
advantage of people's innate dread of death and uncertainty, producing unnecessary worry and
pain. Exaggerating dangers or deceiving viewers can destroy trust and harm the insurance
industry's image. Targeting vulnerable populations, such as individuals with pre-existing
medical issues, can be exploitative and discriminatory. As such future researches could explore
the ethical aspects of this type of marketing

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 Cultural and Individual Differences: Another major demographic aspect that future research
could touch on is how cultural differences affect the impact of fear appeal and purchase
decisions. Firstly, different cultures and their perceptions of the danger shown in these
marketing campaigns are different. Individuals and societies have different risk tolerances and
conceptions of mortality. What is frightening to one individual may not be so to another. It also
relies heavily on trust in the company that is selling the insurance, and that will also vary
depending on a person's cultural background. Similarly, indivisual differences also have a large
role to play; what might work for some might not work for others, and this is a major aspect of
fear appeal that could be explored in future research.

Difficulty in Balancing Threat and Efficacy: A tricky part of fear appeal marketing is finding
the right balance between creating just enough fear among the viewers to convince them to buy
the insurance. If there is not enough, then the advertisement has effectively failed at doing
what it said to do, as excessive fear can have a negative impact on decision-making by
producing avoidance or anxiety. At the same time, if it creates too much fear, that is also
equally harmful to marketing. There is a balance that must be reached. Also, just creating fear
among viewers wouldn’t help; it also has to emphasise the solution. To be effective, fear
appeals must provide clear solutions and a sense of control. Without it, they risk leaving
viewers feeling helpless.

Measurement and Attribution: It is difficult to determine the exact impact of fear appeals. Just
because someone purchased life insurance after seeing a frightening advertisement does not
imply that fear was the main motive. Brand familiarity, financial concerns, and even a general
sense of apprehension about the future can all play a role. Measuring the long-term
consequences of fear-based appeals is considerably more difficult. Is consumer happiness with
their insurance motivated by the dread of what could have occurred if it didn't exist, or by the
true value the policy provides? Untangling these links is a difficult undertaking for marketers.
Attributing the efficacy of fear appeals is similar to unravelling a complex web of factors.
While they can be effective motivators, their real impact is frequently entwined with other
factors, making it impossible to identify and quantify their precise influence.

Short-term effect: An aspect of fear appeal that could be expanded upon in future research is
how fear appeal can be used to create a long-term impact on viewers. The emotional high
produced by fear is rarely long-lasting. When the initial shock wears off, buyers' remorse and
diminished brand loyalty might set in. The commercial's family may disappear from memory,

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 replaced with feelings of being tricked or coerced into making a purchase. This is the short-
term effect: fear appeals may work temporarily, but their potency fades fast. This aspect could
be discussed in the future on how we can create a long-term consumer base based on fear
appeal.

Conclusion

• An In-Depth Exploration of the Impact of Fear Appeal: A Subtle Conclusion

This study reveals the complex interplay of fear appeal in life insurance advertising,
specifically its influence on purchasing choices among various age demographics. The results
unequivocally validate the efficacy of fear-based strategies. However, with closer examination,
a more intricate truth emerges, wherein fear serves as a catalyst rather than the primary factor
influencing consumer purchasing patterns.

• The Influence of Age: A Continuum of Susceptibility

The impact of terror seems to vary depending on age. Individuals in the age groups of 18-34
and 35-44 appear to be particularly vulnerable to the worries triggered by fear-based marketing,
as more than half of the people in each group reported that their purchasing decisions are
influenced by these approaches. These age groups have a heightened susceptibility to emotional
appeals, likely stemming from their early developmental phases, increased worry about the
future, and maybe limited financial stability.
As one gets older, the influence of dread seems to decrease. Individuals within the age
categories of 45-54 and 55-64 demonstrate a reduced dependence on fear appeals while making
buying decisions. This can be linked to a greater accumulation of life experience, a more stable
financial situation, and a more logical attitude to evaluating risks.
• Expanding on the Initial Attraction: A Complex Decision-Making Procedure
Nevertheless, it would be incorrect to depict fear as the exclusive instigator of buying choices.
Although 42.42% of respondents considered the commercials to have a moderate level of
influence, a notable 30.3% conducted thorough study and comparison before making their
purchase. This underscores a multifaceted decision-making process in which anxiety serves as
an initial impetus, compelling individuals to delve further and scrutinise the product prior to
making a commitment.

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 • Importance of Precision: Establishing Confidence by Openness
The perceived precision of risk portrayal in ads enhances the persuasive influence of fear
appeals. More than 70% of participants recognise the accurate depiction of dangers, indicating
that transparency and authenticity are essential factors in establishing trust and influencing
purchasing choices. When fear-based methods are used properly and combined with factual
information, they can successfully connect with customers.
• Transcending Demographics: Individuality and Autonomy
Fear's power transcends age and demographics. Employment position and income appear to
influence susceptibility, as employed individuals and those with higher salaries are more prone
to it. Nevertheless, it is essential to recognise the inherent uniqueness in the process of making
decisions and refrain from making broad statements merely based on demographic factors.
Ultimately, individuals' responses to fear-based advertising are influenced by their personal
circumstances, risk tolerance, and level of financial awareness.
• A Plea for Ethical Marketing: Utilising Fear as a Strategy, not as a Manipulative Tactic
This study emphasises the importance of ethical utilisation while employing fear appeal as a
powerful technique in life insurance marketing. Marketers must use caution, ensuring that
concerns are not manipulated but instead dealt with openly and with a sincere emphasis on
offering financial security and tranquilly. The objective is not to exploit fear, but to equip
individuals with precise knowledge and conscientious communication that empowers them to
make well-informed decisions regarding their financial well-being.

To summarise, the presence of fear appeal in life insurance advertising is unquestionable, but
its effect is not uniform. Age, variability among individuals, and adherence to ethical marketing
procedures collectively influence the impact of fear on consumer purchasing choices. To
effectively exploit fear appeal and promote a responsible and well-informed life insurance
industry, marketers must recognise these intricacies and place transparency as a top priority.

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 Undertaking

We solemnly declare that the project on “Influence of Fear Appels on Purchase of Life
Insurance” is based on our work carried out during our study.

We assert the statements made and conclusions are drawn are an outcome of our research
work.

We further certify that:

• The work contained in the report is original.

• The work has not been submitted to any other Institution for any other
degree/diploma/certificate at this university or any other University in India or abroad. ❖
We have followed the guidelines provided by the university in writing the report.
• Whenever we have used materials (data, theoretical analysis, and text) from other sources,
we have given due credit to them in the text of the report and given their details in the
references.

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