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Mediation effect of trust on willingness to pay for health insurance among co-operative members in Tanzania

Author

Listed:
  • Petro G. Nzowa

    (Moshi Co-operative University (MoCU))

  • Felix A. Nandonde

    (Sokoine University of Agriculture (SUA))

  • Somo M. L. Seimu

    (Moshi Co-operative University (MoCU))

Abstract

This study analysed co-operative members’ willingness to pay (WTP) for health insurance. The social capital theory was adopted to analyse the mediation role of trust issues on other variables determining co-operative members’ WTP for health insurance. A single Contingent Valuation Method (CVM) was used to elicit and estimate the amount co-operative members that were willing to pay for health insurance. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used to analyse variables affecting co-operative members’ WTP for health insurance. Findings indicated that most co-operative members were willing to pay for health insurance. Further, except for price, trust issues fully and partially mediate quality attributes and access criteria, respectively, when it comes to WTP for health insurance. Firm trust is required among co-operators, management, health insurers, and health facilities in order to increase WTP for health insurance among co-operative members.

Suggested Citation

  • Petro G. Nzowa & Felix A. Nandonde & Somo M. L. Seimu, 2023. "Mediation effect of trust on willingness to pay for health insurance among co-operative members in Tanzania," Future Business Journal, Springer, vol. 9(1), pages 1-15, December.
    • Handle: RePEc:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00198-0
    DOI: 10.1186/s43093-023-00198-0
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    More about this item

    Keywords

    Health insurance; Willingness to pay; Trust; Co-operatives; Social capital theory; PLS-SEM;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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