“Analyzing Cognitive Dissonance in Insurance Buying Decisions: A Primary Study on Psychological Triggers and Its Influence on Repeat Purchases of life Insurance products”

Abstract

Cognitive dissonance, a psychological phenomenon referring to the mental discomfort experienced by individuals after making a purchase decision, plays a crucial role in post-purchase behavior, especially in complex and high-involvement purchases such as life insurance. This research paper aims to analyze the presence and impact of cognitive dissonance among policyholders who have purchased life insurance products. The study investigates the psychological triggers responsible for inducing dissonance, such as mismatch between expectations and product delivery, inadequate communication, and perceived financial risk. Using primary data collected through structured questionnaires and personal interviews with life insurance policyholders, the study identifies key factors contributing to post-purchase dissonance. It further examines the consequences of unresolved dissonance on customer satisfaction, trust, and the likelihood of policy renewal or repeat purchases. The findings suggest that effective communication, transparent policy features, and post-sale engagement play a vital role in minimizing dissonance and enhancing customer loyalty.