LOSS INSURANCE PREMIUM FOR ONLINE BUSINESS WITH THE RISK OF THE DELIVERY PROCESS AND NEGATIVE REVIEWS FROM BUYER

• Main Author: Priscilla Suryadjaja, Jennifer
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/54808
• Institution: Institut Teknologi Bandung

Buyer satisfaction is an important aspect for online business. This level of satisfaction can decrease due to several risks that occur in the process of delivering goods, such as lost goods, damaged goods, and wrong delivery of the buyer's address. Buyer satisfaction can be represented through their reviews to the online business. Negative reviews indicate buyer dissatisfaction. This dissatisfaction can make uncertain losses for the seller. To provide protection to the sellers, loss insurance has become a necessity for online business. This study aims to calculate the amount of premium and compensation that can be given to online business sellers. It needs an understanding of utility function and Multinomial distribution. The method used to determine the loss insurance premium for online business is to use the seller's utility function relationship and insurance.