Question

A global insurance company noted that in several specific countries, consumers are willing to pay very high premiums to insure against common, low-harm, low-probability risks. As a result, in these countries, insurance companies can charge above-average premiums for things such as lost-baggage insurance, credit-card loss insurance. However, in other counties, consumers consider this type of insurance laughable. Based on your study of cross-cultural marketing, this difference between how consumers perceive risk emerges because:

1. The consumers in countries where they pay heavy premiums have a high masculine-feminine discrepancy dimension of culture.

2. Life in the countries where consumers pay low premiums always tends to be very safe.

3. The consumers in countries where they pay low premiums rate tend to rate high on the uncertainty-avoidance dimension of culture.

4. The consumers in countries where they pay low premiums rate tend to rate high on the individualism-collectivism dimension of culture.

5. The consumers in countries where they pay high premiums rate tend to rate high on the uncertainty-avoidance dimension of culture.

Answer 1

Answer

5. The consumers in countries where they pay high premiums rate tend to rate high on the uncertainty-avoidance dimension of culture.

The higher the rating of UAI ( uncertainty avoidance index) the leser the tolerance for uncertainty. Japan has one of the highest UAI in contrast to Singapore which have one of the lowest.

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