As the Australian GDP, population and level of disposable incomes advance, the Australian insurance industry is predicted to retain its growth pace in the next few years. There are various types of insurance, health insurance which primarily undertakes insurance policies in terms of health and medical risks, is considered the most popular package of insurance. This package assists individuals against the risk of medical expenses, such as payments for the diagnosis, cure, mitigation and treatment that could be very expensive. Morrisey (2008) states that the requirement for insurance is for reflecting the maximum amount that consumer would expect to pay, to avoid the financial loss. Considered one of the Australian leading health insurance brands, ahm health insurance has launched family health insurances plan as a promotional package for large families or those who claim regularly. Since the firm was established by Roy Johnson in 1971, it has gained renown as an industry leader in offering a wide range of health insurance products and health management programs. The company then branded as Government Employees Medical & Hospital Club which merely served 511 members. By the time the founder retired in 1986, the number of members had increased to over 40,000.In 2005, the brand was introduced as 'ahm' which provides health management programs, medical research programs and advanced services. Nowadays, it is engaging for health cover for over 370,000 people across Australia. However, how consumer thinking about the involvement constructs is a vexing challenge for marketers. Product involvement which refers to a consumer's enduring perceptions of the significance of the commodity classification plays a major role in advertising campaigns (Kong & Zhang, 2013). This strategy decides how advertising performs and promotes its product. The purpose of this report is to outline literature review in terms of consumer involvement theories. It will then discuss the application of theories to advertising related to ahm Health Insurance.
* Literature review
One of the major problems in marketing that marketers and advertisers must understand is how to ensure that consumers obtain, and remember information about their product or service. According to Williams (1982), three key subjects under discussion which are the purpose of information presentation, the target audience of information presentation and the structure of information presentation must be reflected on when considering the problem of information disclosure. The aim of advertising and product designing is to create an incentive for attracting consumer’s attention because consumers are information gatherers and passive audience for advertisers. This means that consumer information processing is an important literature for marketers to investigate. Consumer information is a process which leads consumer to be aware of information and become to be involved with it. Senses of vision, taste, touch, smell and hearing are all processes for consumers acquiring information. One of the most important factors that affect information processing is the degree of consumer involvement. Goldsmith (1996) suggests that there is no doubt that the issue of consumer involvement is a principal objective for marketing researchers to deliberate in most recent consumer behavior texts. According to Krugman (2012), involvement can be explained as a variety of contacts based on personal references and experience that the subject makes between the content of the persuasive information and personal life. Baumgartner (1992) claims that consequence of personal experiences that individuals accessing to persuasive communications and the number of connections that consumers made between persuasive stimulus and their own lives is a practical assess to advertising involvement. Therefore, consumer involvement theory is one way to realize the psychology,...