Exploring Consumer Opportunism Conundrum in the Insurance Industry: The Role of Marketing

Drawing from the extant literature, this paper explores the prevalent consumer opportunism in the insurance transactions, its links to consumers’ perception, and the relevance of marketing strategies in curbing the menace. It shows that insurance opportunism could be perpetrated by any party in the insurance transaction system and at any stage of the process involved. Among factors identified as prompting this conundrum are economic motive, resentment towards the insurance companies, laxity in the application processing/asymmetric information, and insiders’ collaborations. Nonetheless, the paper suggests that strong commitment of insurance marketers to creating and delivering value to the customers more robustly through a proactive and all-embracing implementation of marketing strategies vis-àvis relationship marketing could significantly enhance consumers’ positive perception of insurance business and consequently result in a healthier insurance industry.

Creating value, not wasting resources: sustainable innovation strategies

It is well-accepted in academic and public debate that society has overused natural resources. Business managers in consequence face a normative framework where products need to become more ‘sustainable’. The paper characterises the mechanisms and logic that make ‘[environmentally] sustainable innovation strategies’. Those mechanisms highlight multiple value creation and sustaining value beyond the original new product lifecycle. They yield as much utility as possible from the embedded natural resources. And they avoid creating waste. ‘Multiple value creation’ asks managers to revaluate the attrite product or to make customers change their use patterns. The paper then demonstrates how to extend the ‘old’ logic of innovation with a phase of revaluation: a phase promoting further use of the product and/or material. Our concept is empirically illustrated by two industry case examples. Namely, the copier industry and the emerging automotive lithium-ion batteries industry. We provide a patent analysis in order to demonstrate the assessment of extended life cycles, for the case of ‘recovery of raw materials from disposed products’.