Boost Sales with Add-On Insurance for Cosmetic Procedures
When More Can Be Less - The Effect of Add-On Insurance on the Consumption of Professional Services
Tags: CUHK Business School, Hong Kong, Consumer Goods & Services, Wellness, Safety & Fitness
This technology explores the impact of add-on insurance on the consumption of professional services, particularly cosmetic procedures, via online platforms. The insurance covers costs from complications or unsatisfactory outcomes, boosting sales of low-risk procedures but not high-risk ones. It also creates a negative spillover effect, reducing demand for uninsured competitors. These findings highlight how risk-reduction strategies influence service consumption behavior.
IP Type or Form Factor: Discovery & Research
TRL: 7 - product operates in intended environment with industrial standards
Industry or Tech Area: Retail & E-Commerce; Health & Wellness
