Factors Influencing Purchasing Intentions of Contractors All Risk Insurance in the Construction Industry, in the case of Addis Ababa City
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Date
2024-10-19
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A.A.U
Abstract
Utilizing the Theory of Planned Behavior as a framework for analysis, this study explores key factors that are affecting purchasing intentions of Contractors All Risk insurance, such as attitudes towards CAR insurance, subjective norms influencing CAR purchasing decisions, perceived behavioral control over purchases and claims management processes, risk perception and past experiences with CAR insurance. The Objectives of the study was to identify key factors that affect contractors’ purchasing intentions of CAR Insurance and to provide practical insights for enhancing CAR insurance practices and coverage within the construction sector. The study utilized exploratory research design using quantitative and cross-sectional data. Data was collected through a survey methods with questionnaires distributed among 69 project directors/managers and contract managers working in the construction industry in Addis Ababa City. Snowball sampling technique used to address participants. Through logistic regression analysis key psychological and situational variables were identified that significantly impact purchasing intentions. The findings reveal that Attitude, Perceived Behavioral Control and Risk Perception have a strong positive relationship with purchasing CAR intention. Conversely, Subjective Norms and Past Experience did not show significant effects on purchasing intentions and were thus rejected as influential factors. Future research should aim for larger sample sizes across multiple cities within Ethiopia for broader insights into contractor behaviors related to risk management via CAR insurances.