The Effect of Social Media Factors on Complex Buying Behavior in the Insurance Industry with Social Class as a Moderating Factor

This study investigates the role of social media on complex buying behavior in the insurance industry, with a specific focus on the moderating effect of social class.The increasing popularity of social media has provided a new opportunity for businesses to boost sales.The slow growth of the insurance penetration rate in Malaysia leaves many Malaysians at financial risk.Hence, understanding how social media can affect complex buying behavior should help insurance companies boost their sales.This study focuseson is Klang Valley population, since it is diverse in terms of race, financial status, and religion, making it a suitable sample.This study is using the theory of Reasoned Action and Social Identity Theory to investigate how social media can affect complex buying behavior in the insurance industry, with social class as a moderating factor.The methodology used in this study is an online survey; it was designed and distributed to target respondents in Klang Valley using purposive sampling.A total of 211 responses were gained, and only 178 of them are valid responses.The responses were analyzed with SPSS and Partial Least Squares structural equation modeling (PLS-SEM).The findings of the study discuss that both user reviews and social proof were discovered to have a significant influence on complex buying behavior in the insurance industry.However social media influencer does not significantly affect complex buying behavior.Furthermore, it was also found that social class does not moderate the relationship between social proof and complex buying behavior in the insurance industry.The results contribute to the academic literature by reinforcing the relevance of TRA and SIT in understanding consumer decisionmaking in complex purchases.