DELIVERY DELAY INSURANCE FOR ONLINE SHOPPING

• Main Author: Adelin, Novi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47720
• Institution: Institut Teknologi Bandung

As the technology develops, people can buy products online. One of the risks that online buyers and sellers face is delivery delay. Delivery delay lowers buyers’satisfaction. To provide protection for buyers’ satisfaction, it requires delivery delay insurance. This research aims to determine the calculation of premium and compensation for online shopping delivery delay insurance. In composing about delay delivery insurance, it is required to understand about the utility function, the demand function, the law of total probability and the quantile principle. The method used to determine the premium for delay delivery insurance is by using the relationship between the buyer’s utility function and insurance. Meanwhile, the quantile principle and the seller’s profit function, which is built through the buyer’s utility function, are used to obtain the equation that is used to determine the compensation.