Riding the Whirlwind

Strategic Interactive Marketing for the Insurance Industry

Key Points:

Learning and experimentation are typical coping strategies. Whilst friends and families are often a major source of help, there is an opportunity for business, especially with trusted brands.

3.2 Consumer Behaviour

How are consumers reacting to these dynamic forces? The use of a behavioural model helps to clarify what is occurring to people.

3.2.1 Confusion

• Historically, most people have led stable lives both with respect to employment and to their family situation.
• Market and social forces are producing a de-stabilising impact resulting in the appearance of new models (see for instance the writings of Handy).
   

3.2.2 Learning

• People turn to a variety of sources to try to make sense of the situation and, more importantly, identify coping strategies.
• Initial sources of information are likely to include less threatening ones such as friends and family and the media.
• An increasingly technologically familiar society is using the Internet and other mediums as a rich hunting ground for anonymous fact finding.

Technology such as TV, the telephone, and the Internet can deliver this support.

- New Patterns of Behaviour -

3..2.3 Experimentation

• Consumers will try new patterns of behaviour, giving rise to new requirements. In the first instance they are likely to turn to the well-established brands, though not necessarily long established. Newer brands, with their open and fresh approach, are proving an attraction for many.
• Products at this stage are likely to be basic commodity products with limited options. As a form of risk management, consumers may have a preference for low cost, short term products.
   

Increasing Confidence

A 1996 study by Deloitte & Touche Consulting found 44% of PC owners (that subscribe to an on-line service provider) have made an on-line purchase in the last 12 months. When looking at the buying habits of young people they found 77% of those consumers under the age of 25 were shopping on-line.

Especially with Brands

In another survey, consumers said they were confident in purchase leading brands electronically, even when the product is outside the normal market for that supplier. Thus half felt confident with buying financial services from Thomas Cook.

3.2.4 Confidence

• The prior stage leads to a greater awareness of, and increasing expertise in financial services.

• Some use their new found confidence to deal with professionals, whilst others will deal direct with manufacturers. This has given rise to the term Pull marketing.

• Increasing knowledge and experience is likely to lead to a shift from quantity (i.e. must get some cover) to quality plus service (must get good cover) but all at a competitive price.

Note: we intend to provide a page of more current statistics.
 

Recent Consumer Net Stats
		1996	2000
UK online households (Internet)		0.62m	4.3m
European User Profile		1996
	Aged 21-30	46%
	Graduates	50%
	Professional	16%
	Management	11%
	In Education	36%
	In Computing	31%
	House income >£20K	50%
On-line Purchasing (US?)		1996	2001
	Had purchased via Internet	34%
	Had searched for a specific item	70%
	Had searched for the item category	16%
	Had bought books, CDs, videos, etc.	32%
	Had bought computer items	21%
	Had bought travel, e.g. tickets, hotel	31%
	Online Car Loans		c25%
Methods of Online Access (US)			2002
	PC		47m
	Web-TV		13m
	Net users who would also buy Web-TV		51%
	and use it for e-mail		85%
	Using e-mail (from any device)		51%
Most important technology to those aged (US):-		18-29	+65s
	Home PC	31%	17%
	The Internet	18%	2%
	Cable TV	12%	38%
	Cellular Phones	12%	6%
	Pagers	6%	1%
	Video Recorders	5%	14%
Source: Internet Business May 97 referencing GVU survey Dec. 1996, Inteco Nov. 96; NUA Survey Apr. 97 ref. ViaWeb, Jupiter Commun.; NUA survey Mar. 97 ref. Forrester, Cyber Dialogue; Nielsen Jul. 96; Luntz Mar. 97