“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 1 EXECUTIVE SUMMARY In today‘s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. The main purpose of the study is to find the customer buying behavior for Life Insurance of INGvysya Life Insurance Company in Hubli region which has been done and will help the company to make the marketing strategy for the different segments. The study which has been made during this project will help the company to make strategies for this region and emphasize on their weaker areas. The Brand Image of various companies will be known. The company can find out where their competitor stands in the minds of the people. Research has been done by primary data collection, and primary data has been collected by meeting with the people in Hubli region. Data collection has been done through by giving structured questionnaire. This study will be based on sampling. This is a descriptive study.
50
Embed
Aprojectreportonconsumerbuyingbehaviourforlifeinsuranceofingvysyalifeinsurancecompany SIDDANNA M BALAPGOL
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 1
EXECUTIVE SUMMARY
In today‘s corporate and competitive world, I find that insurance sector has the maximum growth
and potential as compared to the other sectors. The main purpose of the study is to find the
customer buying behavior for Life Insurance of INGvysya Life Insurance Company in Hubli
region which has been done and will help the company to make the marketing strategy for the
different segments. The study which has been made during this project will help the company to
make strategies for this region and emphasize on their weaker areas. The Brand Image of various
companies will be known. The company can find out where their competitor stands in the minds
of the people. Research has been done by primary data collection, and primary data has been
collected by meeting with the people in Hubli region. Data collection has been done through by
giving structured questionnaire. This study will be based on sampling. This is a descriptive
study.
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 2
CHAPTER I: INTRODUCTION
1.1 The Theme
Understanding consumer‘s needs and paying attention to customer service a security for life
for things you insuring of consumer buying behaviour for life Insurance.
1.2 Introduction
Before business can develop marketing strategies, they must understand what factors
influence buyer‘s behavior and how they make purchase decisions to satisfy their needs and
wants. Buyers are moved by a complex set of deep and subtle emotions. Their behavior result
from deeply held values and attitudes their perception of the world and their place in it.
There are also several stages through which the consumer exhibit before deciding to purchase
goods or services. These include 5 steps which are: problem or need recognition, information
search, alternative evaluation, purchase and post-purchase evaluation.
1.3 The Background of the Current Work
Insurance is in a manner of speaking the last frontier in the financial sector to open. It is
also a sector, which leads to benefits across the full spectrum, from the individual who now
have wider choices, to the economy, which see increased savings, to the infrastructure sector,
which can look forward to long term funding being available. In an under-insured economy,
newer channels of distribution have to be utilized to intensify the reach of insurance both in
urban and rural markets. This will create huge employment opportunities not only within
insurance companies but also as agents and consultants of insurance companies.
1.4 Objectives of the Work
• To identify the main influences on customer buying behavior
• To distinguish the factors influencing customer buying behavior.
1.5 Scope of Work
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 3
A big boom has been witnessed in Insurance Industry in recent times. A large number of new
players have entered the market and are vying to gain market share in this rapidly improving
market. The study deals with ING Vysya Life Insurance in focus and the various segments
that it caters to not only hubli but it help to other places also. The study then goes on to
evaluate and analyze the findings so as to present a clear picture of trends in the Insurance
sector.
1.6 Methodology
The methodology of this project is first conducted the market survey which will be possible
only through questionnaire design. For finding of customer perception I meet lot of customers
personally and by phone as well as by interviewing them. For doing market survey I selected the
Hubli region as my target.
CHAPTER-II: LITERATURE REVIEW 2.1 Introduction
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 4
The meaning of insurance is important to understand for anybody that is considering buying an
insurance policy or simply understanding the basics of finance. Insurance is a hedging instrument
used as a precautionary measure against future contingent losses. This instrument is used for
managing the possible risks of the future.
Consumer behavior refers to the mental and emotional process and the observable behavior of
consumers during searching, purchasing and post consumption of a product or service.
Consumer behavior involves study of how people buy, what they buy, when they buy and why
they buy. It blends the elements from psychology, sociology, psychology, anthropology and
economics. It also tries to assess the influence on the consumer from groups such as family,
friends, reference groups and society in general.
Buyer behavior has two aspects: the final purchase activity visible to any observer and the
detailed or short decision process that may involve the interplay of a number of complex
variables not visible to anyone.
Marketing is a societal process by which individuals and groups obtain what they need and
want through creating offering and freely exchanging products and services of value with others
for a managerial definition marketing has often been described as ―The art of selling the products
―but people surprised when they hear that the most important part of marketing is not selling is
only the trick of the marketing iceberg.
Companies practising the marketing concept work at the level of customer segments, a
growing number of today‘s companies are now shaping separate offers services and messages to
individual customers these companies collect information on each customers past transaction
demographics, psychographics and media and distribution preference,. They hope to achieve
profitable growth through capturing a larger share of each customer‘s expenditure by building
high customer loyalty and focusing on customer life time value.
Ability of a company to deal with customers one at time has become practice as result of
advances in factory customisation computers the internet and data base marketing software‘s yet
the practicing of a one to one marketing is not for every company the required investment in
information collection, hardware, and software may exceed the pay out. it works best for
companies that normally collect a great deal of individual customer information, carry a lot of
products that can be cross sold carry products that need periodic replacement or up grading and
self product of high value.
is the difference between the perspective customers evaluation of all the benefits and all the
cost‘s of an offering and the perceived alternatives total customer value is the perceived
monitory value of the bundle of economic, functional, and psychological benefits customers
except from a given market offering total customer cost is the bundle of costs customer except to
incur in evaluating, obtaining, using and disposing of the given market offering.
CHAPTER III: Organizational Study
3.1 Introduction
In the social sciences, organizations are studied by researchers from several disciplines, the most
common of which are sociology, economics, political science, psychology, management, and
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 5
organizational communication. The broad area is commonly referred to as organizational studies,
organizational behaviour or organization analysis.
ING in India:
In India, ING is present in all three fields of banking, insurance and asset management in the
form of ING, ING Vysya Life Insurance and ING Investment Management respectively. The
presence in all three fields signifies the importance that the group attaches to the Indian markets
and the group's operations here, as well as its bullish future outlook on the country.
ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of
ING Investment Management is situated at Mumbai. The synergies arising out of the three
distinct but complimentary businesses are bound to be an asset to the group in the changing
market dynamics of the future. The first such signs are already visible on the horizon with
combined products being successfully launched by the different entities of the group in
conjunction with each other.
The origin of ING Group:
On the other hand, ING group originated in 1990 from the merger between Nationale –
Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV.
Combining roots and ambitions, the newly formed company called ―Internationale Nederlanden
Group‖. Market circles soon abbreviated the name to I-N-G. The company followed suit by
changing the statutory name to ―ING Group N.V.‖.
Profile:
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 6
is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail
market share in mature markets. Finally, ING distinguishes itself internationally as a provider of
‗employee benefits‘, i.e. arrangements of non wage benefits, such as pension plans for
companies and their employees.
Mission:
ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of
financial services through the distribution channels of the client‘s preference in markets where
ING can create value.
The immediate benefit to the bank, ING Vysya Bank, has been the pride of having become a
Member of the global financial giant ING. As at the end of the year December 2008, ING's total
assets exceeded 1332 billion euros, employed over 125000 people, and served over 85 million
customers, across 50 countries. This global identity coupled with the back up of a financial
power house and the status of being the first Indian International Bank, would also help to
enhance productivity, profitability, to result in improved performance of the bank, for the benefit
of all the stake holders.
ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank
Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of
Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It
was in the year 1930 that a team of visionaries came together to found a bank that would extend
a helping hand to those who weren't privileged enough to enjoy banking services.
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 7
It's been a long journey since then and the Bank has grown in size and stature to encompass
every area of present-day banking activity and has carved a distinct identity of being India's
Premier Private Sector Bank.
In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made
rapid strides to reach the coveted position of being the number one private sector bank. In 1990,
the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then
Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank ‗Stupendous‘.
The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005.
In terms of pure numbers, the performance over the decades can better be appreciated from the
following table:
Year Networth Deposits Advances Profits Outlets
1940 0.001 0.400 0.400 0.001 4
1950 1.40 5.30 3.80 0.09 16
1960 1.60 20.10 13.50 0.13 19
1970 3.00 91.50 62.80 0.74 39
1980 11.50 1414.30 813.70 1.13 228
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 8
Rs. in millions
Source:www.inglife.co.in
* Outlets comprises of 441 branches, 37 ECs, 28 Satellite Offices and 351 ATMs as of March
31st 2009. Additionally bank also has Internet Banking, my-bank and Customer Service Line for
Phone Banking Service.
ING Vysya Life Insurance:
ING Vysya Life Insurance Company Limited a part of the ING Group the world‘s largest
financial services provider entered the private life insurance industry in India in September 2001.
Headquartered at Bangalore, ING Vysya Life is currently present in 246 cities and has a network
of over 300 branches, staffed by 7,000 employees and over 51,000 advisors, serving over 5.5
lakh customers.
Product Portfolio:
ING Vysya Life follows a ―customer centric approach‖ while designing its products. The
1990 162.10 8509.40 4584.80 50.35 319
2000 5900.00 74240.00 39380.00 443.10 481
2001 6527.00 81411.10 43163.10 371.90 484
2002 6863.24 80680.00 44180.00 687.50 483
2003 7067.90 91870.00 56120.00 863.50 456
2004 7473.20 104780.00 69367.30 590.01 523
2005 7094.00 125693.10 90805.90 (381.80) 536
2006 10196.70 133352.50 102315.20 90.6 562
2007 11101.90 154185.70 119761.70 889.0 626
2008 14260.00 204980.00 146500.00 1569.00 677
2009 15940.00 248900.00 167510.00 1888.00 857*
“Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli
Babasabpatilfreepptmba.com Page 9
Company‘s product portfolio offers products that cater to every financial requirement, at all life
stages.
In fact, the company has developed the LifeMakerTM a simple tool which can be used to choose
a plan most suitable to a specific customer based on his needs, requirements and current life
stage. This tool helps you build a complete financial plan for life at every life stage, whether the
requirement is Protection, Savings, Investment or Retirement. Suitable products from ING Vysya
Life Insurance‘s product portfolio for each such requirement, makes selection of your plan an
easy exercise.
Distribution Channels:
ING Vysya Life has a diversified distribution platform. While Tied Agency remains the strongest
channel, the Alternate Channels business within ING Vysya Life is one of the fastest growing
distribution channels. ING Vysya Life has strengthened its position as the unparallel leader in the
life insurance industry in cooperative banks tie ups. The company currently has tie ups with 130
cooperative banks across the country. The Alternate Channels division has Banc assurance, ING,
Corporate Agents and SMINCE
The Brand Positioning:
In 2007, ING Vysya Life developed its unique brand positioning ‗Mera farz‘. This
Positioning means, ING Vysya Life helps its customers fulfil their responsibilities towards
themselves and their families. This powerful positioning has helped ING Vysya Life create a
distinct identity for itself. The latest brand campaign with a very catchy jingle dwells on how a
little planning and a helping hand from ING Vysya life can help lighten the burden of
responsibilities that often come with happy moments and let you enjoy your life without any