The interplay of external punishment and internal rewards : an exploratory study of insurance fraud

• Economic theories related to ethical consumer behaviour have for the most part examined the role of external incentives and deterrents, and relatively less focus has been given to the role of internal incentives. This study explores the independent and joint effects of internal rewards and external punishment mechanisms on the likelihood of consumers exhibiting unethical behaviour in insurance fraud (IF) contexts. By utilizing a data set consisting of survey data on over 43 000 consumers across 26 European countries, this study examines the interaction of internal moral values and external deterrents, affecting unethical consumer behaviour. Ordinal regression analysis and binary logistic regression were used to assess the role of internal rewards and external punishment mechanisms in the occurrence of IF. Attitudinal differences towards IF and perceptions of the probability of being caught were used to classify customers and to predict the incidence of IF. Demographic variables were also found to be correlated with IF. Perceptions of ineffectiveness of fraud investigation and detection systems by fraudulent customers significantly influences their likelihood to commit IF.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

insurance marketing

ethics

consumer fraud

Business Administration

Företagsekonomi

industriell ekonomi och organisation

Industrial Economics and Organisations

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)