Customer Attitude

8/9/2019 Customer Attitude

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INTRODUCTION

People in all values of life are faces with risk and contingencies an unexpected death, loss

of goods due to theft and natural uncertainties, earthquake floods are some examples of

the rise that every body on earth faces. A time passes life faces more dangers from both

natural and ma made. Insurance is the best plan for surviving from such risky and

contingencies. Insurance does not avoid loss, but it compensates to some extent, the loss

that arise from uncertainties.

Insurance is essentially cooperate effort under any insurance arrangement a large

number of persons in persons in effect a to share a loss which a few of them are like to

insure in future when the sharing is dome amongst a large no. of persons, the individual

share remains fairly steady from year to year. Such association of persons for sharing

anticipated losses may be brought about voluntarily by all participants or may be

organied by a few individuals or by an insurance organiations.

!he function of insurance in various is to protect the few against the heavy

financial impact of anticipated misfortune by spreading the loss among many who are

exposed to the risk of similar nature while it is not possible to predict which individual

amongst too many participants are likely to be the victims of future. It is often possible to

forecast the loss which the groups a whole may suffer.

!he sharing to such loss among the participants ensures that the victims are

compensated for the loss suffered by them. As a consequence for heavy and uncertain loss

to some is neutralied by the definite contribution of moderate amounts which every

participant is required to make.

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COMPANY PROFILE

HISTORY OF LIFE INSURANCE

In the early time men who engaged in trade by sea attempted to minimie losses

which amongst a large number of persons who were similarly engaged. $aturally many

ships were arrived safely in port and it was only a few that survived loss. !he many who

did not sufferer loss contributed to mitigate the sufferings of the few who did. So many

goods followed from this arrangement that the traders adopted the idea in many lands and

gradually they come into existence groups of men who specialied in managing the funds

and studying the rates of loss which occurred in the different types of marine ventures.

!his was the beginning of marine insurance.

!he evidence in available about crude form of marine contracts made by the %abylonians.

&hodesians and the 'reeks about the middle of the third millennium %(. )owever, the

early history of insurance is hidden in the mists of antiquity. !he earliest available

reference to some form of Insurance is found in the codes of )ammurabi and *anu

+*anav harma Shastra-. !he team /'A0S)1*A is used in &ig23edas suggesting

that some form of community insurance was practiced by the Aryans in India over 4555

years ago.

In India, %urial societies are known to have existed during the %uddhist period,

which were invariably mutual in their character. !he village community came to the help

of the families by building up house, protecting the children and apprenticing the boys in

business.

6I( remained for a long time, largely in the lands of foreign companies but, with

the intense of $ationalism that permitted Indians to enter the sector through 75 centrureis,

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Indian offices began to take their due where of the country8s business. 9rom then

onwards, Indian life insurance %usiness has never looked back and every passing year has

witnessed a slow but a steady rise in the per2capita insurance of the country.

It was in the wake of freedom movement that such companies as the $ew India.

Industrial and prudential, :upiter, the 6akshmi, etc., came to be established. A further

spurt in the formation of new companies was

;itnessed during Second ;orld ;ar when inflationary pressure tended to

increase the volume of business written in the country. 9rom then onwards, the Indian

Insurance %usiness continuously progressed and every passing year witnessed a slow and

steady rise in per2capita insurance in country. At the close of Second ;orld ;ar, the

proportionate share of the business written by the Indian insurers had increased to over


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!he development of mortality tables was a landmark in the history of life assurance. ;ith

this development, life assurance acquired a scientific character. !he 1quitable society,

founded in #BC7, was the first to be founded on scientific basis with premiums computed

according to the age and period of insurance.

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BACKGROUND OF LIC IN INDIA

In India, 6I( had its beginning in #>B5 when two %ritish 6ife (orporations started

in India. !hey first organied to effort to establish with the formation of %ombay *utural

life insurance Society 6td. %ut, it was not extended largely. After a few years, it left to

oriental 'overnment security life Assurance (o. 6td., to expand the business in organied

manner all over the India. !he %harath and the 1mpire were established.

!he Swedish *ovement of #


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NATIONALISATION OF INSURANCE INDUSTRY

!he 6I( Act +Act FFFFI of #


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6I( has wide network of branches in every hook and corner of the country

spreading the gospel of insurance even in remotest rural areas.

What is life is!"a#e$

6ife Insurance is a contract for payment of a sum of money to the person assured

+or failing him her, to the person entitled to receive the same- on the happening of the

event insured against. Esually the contact provinces for the payment of an amount on the

date of maturity or at specified dates at periodic intervals or on unfortunate death, if it

occurs earlier. Among other things, the contract also provides for the payment of

premium periodically to the (orporation by the assured. 6ife insurance is universally

acknowledged to be an institution which eliminates Jrisks8, substituting certainty for

uncertainty and comes to the timely aid of the family in the unfortunate event of the death

or of total permanent disability of the breadwinner. %y and large, life insurance is

civiliation8s partial solution to financial uncertainties caused by untimely death.

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Wh% is s!&e"i'" t' 'the" f'"(s 'f sa)i*s$

+i, P"'te#ti'-

Savings through life insurance guarantee financial protection against risk of death

of the policy holder. In life insurance, on death, the full sum assured is payable +with

bonuses wherever applicable- whereas in other savings schemes, only the amount saved

+with interest- is payable

ii, Ai. t' th"ift-

6ife insurance encourages Jthrift8. 6ong term saving can be made in a relatively

Jpainless8 manner because of the easy installment facility premiums can be paid through

monthly, quarterly, half2yearly or yearly installments-. !he salary savings scheme,

popularly known as SSS, provides a convenient method of paying premium each moth

through deduction from one8s salary. !he employer remits the deducted to the 6I(. !he

salary savings scheme can be introduced in an institution or establishment subKect to

specified terms and conditions.

iii, Li/!i.it%-

6oans can be raised on endowment type L whole life Policies as per policy

conditions on the sole security of a policy which has acquired a paid2up value. %esides,

a life insurance policy is also generally accepted as security for even a commercial loan

housing loan.

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+i), Ta0 Relief-

!ax relief in Income tax as available for amounts paid by way of premium for life

insurance subKects to the Income !ax rules in force. Assesses can avail themselves of

provisions in the law for tax relief. In such cases the assured in effect pays a lower

premium for his insurance than he would have to pay otherwise.

+1, M'e% 2he %'! ee. it-

A suitable insurance plan or a combination of different plans can be taken to meet

specific needs that are likely to arise in future, such as children8s education, start2 in2 life

or marriage provision or even periodical needs for cash over a predetermined stretch of

time. Alternatively, policy moneys can be so arranged to be made available at the time of

one8s retirement from service to be used for any specific purpose, such as for the purchase

of a house or for other investment. 6I( pension plans also offer regular income in the

form of annuity when you retire from active work or in later part of life at your choice

leaving lump sum purchase price for your heirs. SubKects to certain conditions, loans are

granted to policyholders for house buildings for purchase of flats.

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1ARIOUS PLANS OF INSURANCE

!he maKority of the insurance plans are offered on both Jwith profits8 Jwithout profit

basis the important plans of insurance are

KNOW YOUR LIFE INSURANCE

6ife insurance made its debut in India well over #55 years ago. !oday, it is the widely

accepted as one of the most attractive financial instruments in an individual8s portfolio

that provide on assurance of security with attractive returns. ;hat follows is an attempt to

acquaint readers with some of the concepts of life insurance with special reference to

6I(. It should, however, be understood that the following information is by no means an

exhaustive description of the terms and conditions of an 6I( policy or its benefits or

privileges. 9or more details, please conduct any of our %ranch or divisional offices. Any

6I( agent will be glad to help you choose the life insurance plan to meet your needs and

provide other necessary assistance.

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Wh' #a 3!% a life is!"a#e &'li#%$

Any person who has attained maKority and is eligible to enter into a valid contract can

take out a life insurance policy for himselfherself and for those in whom heshe has

insurable interest. policies can also take out, subKect to certain condition on the life of

one8s spouse or children. ;hile underwriting proposal, factors such as the state of health

of the life to be assured the proponent8s income and other relevant factors are considered

by (orporation.

Me.i#al a. N'4(e.i#al S#he(es

6ife insurance is normally offered after a medical examination of the life to be assured.

)owever, to facilitate greater spread of insurance and also as a measure of relaxation,

subKect to certain conditions.

With P"'fits a. With'!t4P"'fits Plas

An insurance policy can be Jwith8 or Jwithout8 profit. In a ;ith2Profit Policy, bonuses

declared, if any, after periodical valuations are allotted to the policy and are payable along

with the contracted amount at the time of the final claim payment. In a ;ithout Profit

Policy, only the contracted amounts are paid. ;ithout any addition. Ender some new

plans guaranteed additions L 6oyalty Addition are paid in Jlieu of bonuses.

Ke%(a Is!"a#e

0eyman Insurance is taken by a business firm on lives of key employees+s- to protect the

firm against the financial loss which may occur owing to the premature demise of the 0ey

employees.

Plans marketed by 6ife Insurance (orporation of India

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+Plans in force as at #.#5.7554-

6I( offers a basket of schemes to meet the various needs of individual and his family.

I5 Basi# Life Is!"a#e Plas

6, Wh'le Life Ass!"a#e &la-

A low cost insurance plan where the Sum assured is payable on the death of the

life assured, wherever it occurs.

7, E.'2(et Ass!"a#e Pla-

Ender this plan the sum assured is payable on maturity or on death of the life

assured, if earlier.

8, 9ee)e Aa.-

!his is a unique with profits plan which combines the features of the 1ndowment

and whole 6ife Plans. !his basic sum assured plus accrued bonus is payable to the

policyholder on his survival till the end of the premium paying term. An additional sum

assured is payable to the nominee on death of the Policy holder after expiry of premium

paying term. /n dead the premium paying term, the basic sum assured plus accrued

bonus is payable to the nominee and the policy comes to an end.

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II5 Te"( Ass!"a#e Plas

6, A('l 9ee)a4I -

!his is a pure !erm assurance plan for terms varying from ? to 7? years and

provides for payment of Sum Assured on death of policy holder during the term of the

policy.

7, T2'4Yea" Te(&'"a"% Ass!"a#e Pla-

!erm assurance for period 7 years is available under this plan. the sum assured is

payable only on death of the life assured during the policy term

8, C')e"ti3le te"( Ass!"a#e Pla-

!he plan provides for term assurance from ? to B years with an option to covert to

a 6imited payment whole life policy or an 1ndowment Assurance Policy without having

to undergo fresh medical examination +I- the option for conversion may be exercised at

anytime during the specified term except during last 7 years provided the policy is in full

force.

:, Ne2 Bi(a Ki"a -

In Additions to return of premium paid, this plan provides for 6oyalty addition if any, in2

built lf accident cover and a !erm cover after maturity, if the Policy is in full force on the

date of maturity.

III5 S&e#ifi# Plas f'" #hil."e

3arious children8s plans are available, vi. (hildren8s eferred 1ndowment

Assurance :eevan %alya, 0omal :eeven and :eeval 0ishore. :eevan Sukanya is a plan

specifically designed for female children.

I15 Pesi' Plas-

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$ew :eevan Akshay2IM Single Premium immediate annuity. $ew :eeven hara2I

L new :eevan Suraksha NIM deferred annuities. !he annuitant has five options of annuity

payment to choose from including annuity for life with return of purchase price on death.

&isk cover by way of !erm rider option available. Premiums paid under new :eevan

Suraksha2I up to &s. #5,5552 are exempted form income tax undersection >5(((.

15 Plas f'" Ha.i#a&&e. De&e.ats

6, 9ee)a Aa.ha"- !his is a limited payment whole life &'li#% 2ith *!a"atee.

a..iti' at the "ate 'f Rs. #552 per thousand sums Assured p.a. where the claim

amount is paid partly in a lump sum and partly in the form of an annuity. Income

!ax Act, #


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66, 9ee)a Mi"a-

A ouble2or !riple risk cover 1ndowment Assurance plan providing for twice or

thrice the sum assured payable on the death of the life assured during the policy.

67, LIC’s 9ee)a Sh"ee46-

A limited payment 1ndowment Assurance plan with 'uaranteed Additions for

first five years and bonus additions thereafter. A policy designed for short careerists,

professionals and agriculturists.

68, Asha Dee&4II-

!he plan provides, besides death and maturity payments, contingent benefits in

case the life assured suffers from any of the four defined ailments.

6:, 9ee)a Asha4II-

!he plan provides, besides death and maturity benefits, payment towards the cost

of certain surgical procedures and periodical survival benefit payment. !here is also a

provision for 'uaranteed Additions O &a.B5 per thousand S.A

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S'(e 'f the &"'e#ts 3ei* !.e"ta;e this %ea"s a"e-

#. ;eb enabling various policies servicing on our website and providing value services

on mobile devices to out customers and filed force.

7. Adopting mobile technology for enhancing promptness and scope of customer service

from any branch.

4. Installation of data warehouse and providing data mining tools for enhancement of

quality of service level product development and other (&* activities.

D. 1xpansion of internet premium payment services by adopting use of smart card, credit

card.

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INTRODUCTION TO TOPIC

A #'s!(e"4A O)e")ie2

!he term consumer is typically used to refer to someone who regularly purchase from a

particularly store are a company. thus, a person who. Shops at any store or use a particular

pen is viewed as a customer of these firms.

!he term consumer more generally refers to any one engaging in any of the activities

used in our definitions of consumer behavior. !herefore, a customer is defined in a terms

of a specific firm while a consumer is not. !he traditional viewpoint has been to defined

consumer strictly in terms economic and services. !his position holds that consumer is

potential purchase of products and services offered for sale. !his view has been

broadened over time so that at least some scholars now do not consider a monetary

exchange essential to the definitions consumers. !his change implies that a potential

adopter of service or even philosophies or ideas can also be encompassed by the

definitions. (onsequently, organiations such as the Indian ental Association, E$I(19,

and foster parents plans, as well as religious and political groups can view their various

publics As @consumers.

!he rational for this position is that many of the activities that people engage in

regarding commercial products and services. At present out attention will be directed.

!owards ultimate consumers, those individuals who purchase for the purpose of

individual or household consumption. Some have argued that studying ultimate

consumers also reveals much about industrial and intermediate buyers and others

involved in purchasing for business firms and institutions. ;hile not denying this, we

must recognie that much industrial purchasing behavior is unique because it often

involved different buying motives and the influence of a large variety of people. 9or the

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sake of simplicity we will focus only on the ultimate consumer behavior and ill not

become involved in drawing comparisons with industrial purchasing situations.

!he most commonly through of consumer situation, is that of an individual

making a purchase with little or no influence from others. )owever, in some cause a

number of people can be Kointly involved in a purchase decision. 9or example planning a

vacation or deciding on a new car involved an entire family. In other cases the purchaser

may Kust be acquiring a product for some one else who has asked for a certain item.

!hese situation suggest that people can take on different roles in what we have defined

consumer behavior. !hat table below presents one way to classify these roles.

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What is #'s!(e" 3eha)i'"$

/ften the situations in which we find ourselves play a large part in determining

how we behave. Students, for example, act differently in a classroom that they do when

they are in a stadium watching a cricket match. !he same holds true of buying behavior.

ou might get you hair cut because of an upcoming Kob interview. /n spring break you

might buy a souvenir that seems very strange when you got home. 9or a close friend8s

wedding gift, you might buy a fancier branch of small appliance than you would buy for

yourself. !hese are all example of situational influences, temporary forces associated

with the immediate purchase environment that effect behavior. Situational influence

tends to be less significant when the consumer is very loyal to a branch and when the

consumer is very loyal to a branch and when the consumer is highly involved in the

purchase. )owever it plays a maKor role in buying decisions. !he five categories of

situation are explained below.

Wh% st!.% #'s!(e" 3eha)i'"$

Enderstanding the reasons for studying a discipline enables new to better

appreciate its contributions. !herefore this section presents a Kustification for the time

and effort that the reader will expend in learning about consumers.

Si*ifi#a#e i .ail% li)es-

In a general case the most important reason for studying consumer behavior is the

significant role it plays in our lives. *uch of our time is spent directly in the market

place, shopping or engaging in other activities. A large amount of additional time is spent

thinking about products and services, talking to friends about them and seeing or hearing

advertisements about them. In addition. !he goods we purchase and the manner in which

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REFERENCE GROUPS-

*any groups influence a person8s behavior. A person8s references groups consists

of the people that have a direct +face to face- or indirect influence on a person are called

attitudes or behavior. 'roups having a direct influence on a person are called

*1*%1&S)IP '&/EPS. !hese are groups to which the person belongs and interacts.

Some are primary groups such as family, friends, neighbors and co2workers, with whom

the person interacts fairly continuously. Primary groups tend to

&eference group influence changes as products pass through the product life

cycle. ;hen a product is first introduced, the decision to buy it is heavily influenced by

others. In the market growth stage, group influence is strong on both product and others

heavily influence brand choice, in the product maturity stage, brand choice but not

product choice.

Fa(il%-

9amily members constitute the most influential primary reference group. !he family or

orientation consists of ones parents. 9rom parents a person acquires an orientation

towards religion, politics and economics and a sense of personal ambition, self2worth and

love. 1ven if the buyer no longer interacts very much with his parents, the parent8s

influence on the buyer8s behavior can be significant. In countries where parent8s live with

their grown children, their influence can be substantial.

A husband2wife involvement varies widely by product category. !he wife has

traditionally acted as the family8s main purchasing agent, especially for food, sundries

and staple2clothing items. !his is changing with the increased number of working wives

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and the husbands doing more family shopping. (onvenience goods marketers would me

a mistake to thing of women as the main or only purchasers of their products.

)usband ominant M 6ife Insurance, Automobiles, !elevision etc

;ife ominant M aching machine, (arpeting, furniture

0itchenware, etc.

1qual M action, housing, outside entertainment.

R'les a. Stat!s-

A person participants in many groups through like,2family, (lubs, organiations

etc. the persons position in each group can be defined in terms of roles and status. 1ach

than sales manage and a sales manager has more status then an office clerk. People

choose products that communicate their role and status in society. !hus company

presidents drive *ercedes, wear expensive suits and drink chives regal scotch. *arketers

are aware of the status symbol potential of products and brands. )owever, status symbols

vary for social classes and also geographically.

PERSONAL FACTORS-

%uyer8s decisions are also influenced by personal characteristics, notably the

buyer8s age and life cycle stage, occupation, economic circumstances, life styles and

personality and self2concept.

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AGE AND LIFE CYSLE STAGES-

People buy different goods and services over their life time. !hey eat food in the

early years, most foods in the growing and mature years and special diets in the later year.

People8s taste in clothes, furniture and recreation is also age related.

(onsumption is also shaped by the stage of the family life the cycle $ine stages of

the family life cycle are listed in table 4.4 along with the financial situation and typical

product interest of each group. *arketers often choose life2cycle groups are their target

market.

PERSONALITY AND SELF CONCEPT

1ach person had distinct personality that will influence his or her buying behavior.

%y personality, we mean the person8s distinguishing psychological characteristics that

lead to relatively consistent and enduring responses to his or her environment.

Personality is usually described in terms of such traits as self2confidence, dominance,

autonomy, deference, sociality, defensiveness and adaptability.

Personality can be a useful variable in analying consumer behaviors provided

that personality types can be classified and that strong correlation8s exist between certain

personality types and product or brand choices. 9or example, a computer company might

discover that many prospects have self2 confidence, dominance and autonomyQ this

suggests using !herese appeals in advertising their computer.

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The O3e#ti)e 'f the P!"#hase-

!he intend or reasons for a purchase affects the choice made. ;e are likely to

behave very differently if we are buying a product for a gift as opposed to buying the

same product for our personal use. ;hen purchasing a wristwatch, a consumer may be

most interested in one that provides accurate time at a reasonable price. )owever that

appearance of the watch bought as graduation present can be very effective.

A market must under stand the consumer8s obKectives in using the product in the

order to design an effective marketing mix. 9or example, the failure by most watch

maker8s appeal to the functional, non2gift watch market is what allowed !imex to be so

successful with its reasonable price product.

C'.iti's !.e" 2hi#h #'s!(e"s B!%4States a. M''.s

Some times consumer8s arte in temporary state that influences their buying

decision. ;hen you arte ill are rushed, you may be willing to wait in line or you do not

take the time or care that a particular purchase deserves.

*oods can also influence purchases. 9eelings such as anger or excitement can

result in purchasers that otherwise would not have been made. In the excitement

atmosphere of a roc concert, for example, you might pay more for a commemorative !2

shirt than you would under normal circumstances. Sales people must be trained to

recognie consumer8s mopeds and adKust their presentation accordingly.

PSYCHOLOGICAL FACTORS-

A person buying choice is further influenced by four maKor psychological factors.

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M'ti)ati's-

A person has many needs at any given time. Some needs are biogenic. !hey

arise from physiological states of tension such as hunger, thirst, discomfort, etc. other

needs are psychogenesis. !hey arise from psychological states of tension such as the

need for reorganiation, esteem or belonging.

*ost psychogenesis needs are not intense enough to motivate the person to act on

them immediately. A need becomes a motive with its need that is sufficiently pressing to

derive the person to act. Satisfying the need reduced the felt tension. Psychologists have

developed theories of human motivation. !hree of the best2known theories areM

Pe"#e&ti'-

A motivated person is ready to act. )ow the motivated person actually acts is

influenced buy his or her perception of the situation. If any person might see a fast

talking refrigerator sales person as aggressive and insincere. Another shopper might see

the same sales person as intelligent and helpful.

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B"iefs a. Attit!.es-

!hrough doing and learning, people acquire beliefs and attitudesQ these in turn

influence their buying behavior.

Attitudes head people to behave big a fairly consistent way towards similar

obKects. People do have to interpret and react to ever obKect in a fresh way. Attitudes

economics on energy and thought. 9or this reason, attitudes are very difficulty to change.

A person8s attitude settles in to a consistent pattern, and to change a single attitude may

require maKor adKustments in other attitudes. !hus a company would be well advised to fit

this product in to existing attitudes rather than to try and change people8s attitudes.

;e can now appreciate the many forces acting on the consumer behavior. A

person8s purchase choice is the result of the complete interplay of cultural, social,

personal, and psychological factors. /ther factors are subKected to marketer influence and

clue the marketer on how to develop product, price, place, and promotional and physical

distribution to attract strong consumer response.

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ABOUT THE PRO9ECT

;ith reference to scope of study 6I( is the premier financial organiation with a

wide network of branches and field force. 6I( is mobiliing huge funds and utiliing

them for people welfare. It is necessary to have about the public opinion the points stated

in supra and hence a survey questioner us framed keeping the above points in mind on

their question are generated.

As an outset a person who wants to save may select different means hence

question number 7 is framed. If a person wants to purchase a life insurance policy the

obKect should be very clear hence it is necessary to know this obKect for that question

number 4 is framed.

!he motive force which is responsible to purchase a life insurance policy may be

once won interest are he may be advised to take a life insurance policy are succumbed to

the pressure from others hence question D is framed.

!he product range, their awareness level in the public and identification of various

products offered by 6I( can be identified by an individual shows the effective marketing

strategy of the organiation. )ence question number ?, C, B are framed.

9or any organiation after sales, service is the priority area, In 6I(, right from

central office to branch office a separate department called policy servicing is established.

)owever the era of customers delight, customer surprise and customer is king or god. It

is necessary to have the rules of a customer about the service offered by the 6I( is

sufficient. )ence Ruestion > is framed.

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!he field force of an organiation is the feed back carries as they are responsible

for selling of the products. In particularly selling of the Insurance policy. !he filed force

is expected to facilitate the maximum service after the sales. )ence Ruestion < is framed.

9urther emphasiing, the need for the advertising and the public relation, the

achievements of organiation are to be essentially highlighted in public. )ence Ruestions

#5,##,#7,#4 and #D are framed.

Some times the procedure followed by 6I( may not satisfy a policyholder. )ence

question #? is framed to know that how a policyholder feels about this procedure.

Ruestion #C gives the most important aspects that are competition in insurance

sector. !he public response will essential whether the competition is required or not.

Ruestion #B is framed to know the expectation of the policyholder on opening of

life insurance sector.

It is already said that 6I( funds are control funds and are invested as per the

provision of 6I( Act #


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institution in the country, the competition would like to stay in the market as leader.

)ence question 75 is framed to invite the suggestions from the public.

SUR1AY SPECIAL

Suggestions from the respondents are called about a product they expect and the

measure to be taken by 6I( to stay in the competition as the market leader. !hese

valuable suggestions are quoted under the head suggestions.

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LITERATURE RE1IEW

(onsumer %ehaviour by )awkins, %est, (oney and *okherKeeM !he authors of the book

discussed various factors affecting consumer behaviour for buying such as demographic

and social influences +family and household-, group influence, impact of advertising and

internal influences +learning, perception, attitude etc.-. !he book elucidated the topics

such as types of consumer decisions, purchase involvement and product involvement. !he

book also emphasied on information search process and various ways for providing

relevant information to the consumers are recommended in this study. !he book also

emphasied on individual Kudgment and proposed that the ability of an individual to

distinguish between similar stimuli is called sensory discrimination which could involve

many variables related to individual preferences.

(onsumer %ehaviour by 6eslie 6aar and SchiffmanM !he authors suggested consumer

behaviour as individual differs as from group. !he family decision for a purchase decision

is entirely different from individual decision making. !he authors discussed various

variables that affect consumer purchase decision. !he book focused on family life cycle

and various needs of consumer during different life stages. !he family decision making

process as a group decision making is elaborated and it is recommended to segment the

market according to family need hierarchy.

(onsumer %ehaviour by %itta and ellaM !he authors proposed that consumer behaviour

studies play an important role in deciding marketing segments and marketing strategies.

!he authors recommended that consumer is often studied because certain discussions are

significantly affected by their behaviour or expected actions. 9or this reason such

consumer behaviour is said to be an applied discipline. Such applications can exist at two

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levels of analysis. *arket segmentation, consumer decision making and buying behaviour

is considered as core marketing activities in designing effective marketing strategies. !he

micro perspective involves understanding consumers for the purpose of helping a firm or

organisation to accomplish its obKectives. /n the other hand macro or societal perspective

consumers collectively influence economic and social conditions within an entire society.

!he authors discussed factors affecting consumer behaviour at micro and macro level for

making a purchase decision.

(onsumer %ehavior by 0arunik and SchiffmanM !he book highlights dynamic business

environment is turbulent as never before and the service industry as promising as never

before. In this era of intense competition companies understand the customer is the king

in the market and success depends a lot on the efficiency of the managers in delivering

the promised product or services. !he responsibility lies on the organisations to develop a

culture, ethics, responsibility, value and quality services should be offered to achieve

higher level of customer satisfaction. ynamic consumer behaviour is required to analyse

various factors affecting consumer purchase decision directly or indirectly.

(onsumer %ehaviour by %atra, S, 0 L 0ami,M !he book has described consumer

decision making process, buyers black box and importance of consumer behaviour studies

for marketers in order to understand what satisfy the ultimate consumer. !he book

described vital characteristics of Indian consumer and competitive advantages in Indian

context for the marketers. !he consumer decision process, buying roles and consumer

black box are discussed in detail. !he various steps evolving consumer decision making

are linked with the life stages. oung buyers, women and children considered as uprising

consumers groups as a part of competitive market situations.

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OB9ECTI1ES OF THE STUDY

!o know the consumer behaviour towards 6I(

!o know the investment policy of 6I(

!o know the services of 6I(

!o know why investors selects 6I( as their investment sector

!o know the customers expectation

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RESEARCH METHODOLOGY

Resea"#h (eth'.'l'*%-

!he &esearch methodology used for the study was very rigorous. Ruestionnaires were

made, interviews with customers were held and various books and websites were

consulted for any type of information related to the study. !he methodology so applied is

briefly discussed below step2by2step.

!herefore *arketing research can be defined as the systematic design, collection,

analysis, and reporting of the data and finding relevant to a specific marketing situation

facing the company.

Resea"#h Desi*-

&esearch design is the basic plan which guides the researchers in the collection and

analysis of data required for practicing the research product. In fact the research

design is the conceptual structure with which research is conducted. It consist the blue

print for the collection, measurement and analysis of the data that was followed

completing the study to ensure that study is relevant to the problem and will follow the

predetermined and set data.

T%&e 'f Resea"#h Desi*-

Des#"i&ti)e "esea"#h- 4 escriptive research provides data about the population or

universe being studied. escriptive &esearch is used when we are interested in knowing

the characteristics of certain groups such as age, sex, educational level, occupation etc.

%ut it can only describe the who, what, when, where and how of a situation, not what

caused it. escriptive research is used when the obKective is to provide a systematic

description that is as factual and accurate as possible.

DATA COLLECTION TECHNIUES

PRIMARY SOURCE-

!he data required for this stage was regarding the customer relationship and the behavior

and perception of the existing customers towards the products services provided by the

bank and also, to get their satisfaction level toward bank. !he data could have been

collected by Kust interviewing the customers but to get a reasonable conclusion and fair

accuracy, questionnaires were prepared and customers were interviewed.

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Sa(&li* Te#hi/!e

Ruestionnaires are the sampling technique for the research. !he Ruestioners are

both structures and open and were used as in instrument.

C'ta#t Meth'.

A printed copy of questionnaires was distributed to the consumers visiting them in

their houses and at the servicing centers at parking areas.

Pla t' aal%sis

!he data collected was tabulated and percentages were determined the

interpretations are presented in the form of charts. All interpretations made by me are

realistic and factual.

PURPOSE OF LIFE ASSURANCE

65 F'" the &!"&'se t' h'!si* l'as

9or the purpose of housing loan, loan can be raised with the surrender value of the

policy. So that while immediate financial needs are met,

Insurance protection continues policies are used as security for commercial loans.

75 P"'te#ti' 'f life

Saving through life insurance guarantee financial protection against risk of death

of the policyholder. In life insurance on death, the fall sum assured is payable where as in

other sang schemes only the amount saved.

85 Ai. t' th"ift

6ife insurance encourages thrift long term saving can be made in a relatively

painless manner because of the easy installment facility. !he salary savings scheme

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popularly known as SSS. Provides a convenient method of paying premium each month

through deduction from one8s salary. !he employer remits the deducted premium to the

6I(.

:5 B!siess is 'f life ass!"a#e

6ife insurance also services business interest. Some companies may depend for

their successful performance on the ability technical knowledge, experience power to plan

and execute if successful of one or more individual and the premature demise of such

individuals will result in loss of earning to the business firm. Such loss to be business

firm can be avoided by insuring such key men, the firm against possible loss due to the

premature of such individuals. In the case of partnership of firms.


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DATA ANALYSIS INTERPRETATION

ANALYSIS

R#. Are you aware about 6ife Insurance (orporation

&espondents =age

es #55

$o 5

Ite"&"etati'-

!he above analysis shows that all the respondents are aware about 6ife

Insurance (orporation.

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&1SP/$1$!S =A'1

'// <

A31&A'1 #C

31& '// ??

1F(1661$! 75

INTERPRETATION-

!he above analysis shows that out of #55 respondents ?? rate the policies of

6ife Insurance (orporation as very good, #C rate it as average, < rate it as

good and 75 rate it as excellent.

R? .;hat you like in the policies of 6ife Insurance (orporation

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&1SP/$1$! =A'1

&A!1 /9 &1!E&$ 4>

A99/&A%61 P&1*IE* >

6/; P&1*IE* A66/(A!I/$()A&'1S

D?

SE&&1$1& 3A6E1 <

INTERPRETATION-

!he above table shows that out of #55 respondents D? respondents like the

policy because of low premium allocation charges, 4> like it because of rate

of return, < like it because of surrender value and > like it because of

affordable premium.

RC. )ow you feel the behavior of 6I( employers while interacting with

them

&1SP/$1$!S =A'1

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'// D

A31&A'1 #7

31& '// DB

1F(1661$! 4B

INTERPRETATION-

!he above analysis shows that out of #55 respondents D respondents feel the

behavior of 6I( employers as good, #7 feel the behavior of 6I( employers

as average, DB feel the behavior of 6I( employers as very good, and 4B feel

the behavior of 6I( employers as excellent.

RB. o you think that 6I( is reliable in the coming future

&1SP/$1$!S =A'1

1S ><

$/ ##

" D? "


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INTERPRETATION-

!he above table shows that out of the #55 respondents >< respondents feel

that the 6I( is reliable in the coming future and ## respondents feel that 6I(

is not reliable in the coming future.

R>. o you think that 6ife Insurance (orporation is working better than its

competitors

&1SP/$1$!S =A'1

1S BD

$/ 7C

" DC "


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INTERPRETATION-

9rom the above analysis I came to know that out of #55 respondents >>

respondents are satisfied with the after sales services provided by 6ife

Insurance (orporation and #7 respondents are not satisfied with the after

sales services provided by 6ife Insurance (orporation. !his means that

mostly people are satisfied with the after sales services provided by 6ife

Insurance (orporation.

R#5. o you think that the plans provided by 6I( are beneficial

&1SP/$1$!S =A'1

1S B>

$/ 7>

" D> "


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INTERPRETATION-

!he above table shows that out of #55 respondents B> respondents think that

the plans provided by 6I( are beneficial and 77 respondents think that the

plans provided by 6I( are not beneficial.

FINDING

A survey was conducted in and outskirts of KA'A)&I town. A sample sie of

was selected from various groups like employees, professionals, businesspeople and other

randomly and their opinion was segregated and finding are drawn.

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#. About D=purchased life insurance policy

on their one interest. %eside ?C= of customer8s hare about B?= knowledge of a various

policies offered by 6I(. !his is simply remarkable if we Kust consider if we Kust consider

number of policies as it is about ##crores alt all Indian level.

4. It can be seen for the above analysis that the servicing facilities provided by

6I( has to be improved further about ?#= of the customer8s feel the services offered is

very good. %ut it is notable that 4C= of the respondents feel the services provided are

average.

D. 6I( is transparent in its operations as it is evident from the analysis that = of

customers are not aware about this unmatchable social welfare activity wide publicity is

necessary in this regard.

C. In spite of various achievements of the organiation it has not been able to

convince customers that, computation is not required in life insurance section. About

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B. It is revealed from the studies that customers are expecting a lot with regard to

range of products, services, better returns rate of premium etc., this is why, they feel that

if competition is required and they may realie better returns with less premium as well as

wide range of products with improved services.

SUGGESTIONS

All though the respondents are not clear about the product, which would attract

more customers, it is necessary to introduce unit linked insurance schemes. ;here better

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returns are guaranteed and keeping increasing longevity in view policies like double or

treble endowment plans.

!he respondents feel that 6I( should take up the following measures to stay in

competition as market leader.

&eduction in premium

Professionaliing between work force and field force.

*ake the people to understand the need for insurance coverage

9ast service and online payment every where in the country.

!ransfer of policy document from one place to another without much

delay.

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CONCLUSION

In India, there is throat cut competition in the market of 6ife Insurance that brand service

which adopt new strategy for sale we have come to know about the customer perception

about the insurance sector and how it varies

• !he buying of life insurance policy is dependent on life protection

• 6ife protection is preferred by the most of the respondent during by a life insurance

policy.

• !he insurance companies must advertised more in the market because not all

people know more about life insurance policy.

• !he endowment concept must be specifically promoted.

• People should not be afraid to invest money in insurance and must use it an

effective tool for tax planning and long term.

• *ost number of people wants guaranteed life protection through insurance

policy. So company must focus on this for the customer investment

BIBLIOGRAPHY

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9undamentals of marketing by Stanton, 1tel and walker.

(onsumer %ehavior by 6oudon and ella %itta.

*arketing and Public &elationship

P!3li# 3% Is!"a#e Istit!ti' 'f I.ia

(ompany %rochures and Pamphlets

Ma*aies-

I.ia E0&"ess

B!siess T'.a%

UESTIONNAIRE

NAME- AGE-

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OCCUPATION- SE-

R#. Are you aware about 6ife Insurance (orporation

a. es

b. $o

R7. )ow do you come to know about 6ife Insurance (orporation

a. !.3 b. Agents

c. $ewspaper d. 9riends

e. Any /ther

R4. Are you satisfied with the policies provided by 6ife Insurance

(orporation

a. es

b. $o

RD. )ow you rate the policies provided by 6ife Insurance (orporation

a. 'ood

b. Average

c. 1xcellent

d. 3ery 'ood

R? .;hat you like in the policies of 6ife Insurance (orporation

a. &ate of return b. Affordable Premium

c. 6ow premium allocation charges d. Surrender 3alue

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Documents

Customer Attitude