Study on Consumer Buying Behaviour for Life Insurance. Customer Segment of High Income Group and Middle Income Group Report submitted to By N H.Chinnakatti Under the guidance of Prof. G.Hiremath July-August 2009 Department of Management Studies Hubli - 580031 BVB College of Engineering & Technology Hubli 1
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Study on Consumer Buying Behaviour for Life Insurance.
Customer Segment of High Income Group and Middle
Income Group
Report submitted to
By
N H.Chinnakatti
Under the guidance of
Prof. G.Hiremath
July-August 2009
Department of Management Studies
Hubli - 580031
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CONTENTS
Certificate 4
Acknowledgement 5
Executive Summary 6
Table of Contents
CHAPTER I: INTRODUCTION
1.1 The Theme 7
1.2 Introduction 7
1.3 The Background of the Current Work 7
1.4 Objectives of the Work 7
1.5 Scope of Work 8
1.6 Methodology 8
CHAPTER-II: LITERATURE REVIEW
2.1 Introduction 9
CHAPTER III: Organizational Study
3.1 Introduction 10
3.8 Conclusions 10-21
CHAPTER IV: Project Task
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4.1 Introduction 23
4.2 Objectives 23
4.2.1 Data Requirement Analysis 23
4.2.2 Data Collection 23
CHAPTER-V: Analysis and Interpretation 24-45
CHAPTER-VI: Solutions and Suggestions 46-47
CHAPTER VIII: SUMMARY OF WORK DONE AND CONCLUSIONS
8.1 Summary of the Work Done 48
8.2 Major Findings 49
8.3 Scope for Future Work 49
REFERENCES 50
Appendix – A
Appendix – B
Appendix – C
Questionnaire 51-55
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Certificate
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Acknowledgement
I sincerely extend my thanks to Mr. Prashantsingh Rajput, Senior Sales Manager, INGvysya
Hubli, who mixed delicate mix of freedom, guidance and monitoring to make this project a great
success.
I thank our head of the department Dr. S.V. Patil and all the professors who showed keen
interest in giving their valuable guidance and constant encouragement during the project work.
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I take this opportunity to express my profound gratitude to our Prof G.Hiremath, BVBCET
Department of Management Studies, who has always been a constant source of inspiration to me with
his innovative ideas and guide me through out my project work.
I sincerely thank all the Respondents who have spared their valuable time and have provided all
the information required by me.
Last but not the least I am very grateful to my non-teaching staff, parents and friends for their
co-operation and invariable support.
EXECUTIVE SUMMARY
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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.
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CHAPTER I: INTRODUCTION
1.1 The ThemeUnderstanding 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
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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
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
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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
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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.
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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 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.”.
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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 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.
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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.
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:
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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.
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Year NetworthDeposits 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
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 7473.20104780.00 69367.30 590.01 523
2005 7094.00125693.10 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 14260.00204980.00 146500.00 1569.00 677
2009 15940.00248900.00 167510.00 1888.00 857*
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 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
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 worries.
Management:
Board of Directors (as on June 01, 2009):
Mr. Rajan Raheja: Chairman of the Board
Mr. Kshitij Jain: Managing Director & Chief
Executive Officer
Mr. N. N. Joshi: Director
Mr. Satish Raheja: Director
Mr. Rajesh Kapadia: Director
Mr. S. B. Ganguly: Director
Mr. Ron van Oijen: Director
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Senior Management Team (as on June 01, 2009):
Mr. Kshitij Jain: Managing Director & Chief Executive Officer
Mr. Rahul Agarwal: Chief Distribution Officer
Mr. B. Ashwin: Chief Operating Officer
Mr. John Boers: Chief Financial Officer
Ms. Hemamalini Ramakrishnan: Appointed Actuary and CIRO (Chief Insurance
Risk Officer)
Mr. Marco Fredriks: Financial Controller
Mr. Amit Gupta: Director - Marketing & Communication
Ms. Priya Gopalakrishnan: Director - Human Resources
Mr. T. K. Uthappa: Director, Sales - Tied Agency
Mr. Manoj Kaushik: Director - Alternate Channels
Mr. Ravishankar Subramanian: Director - Information Technology
Mr. Joost van Beveren: Vice President - Business Transformation
Corporate Objective:
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At ING Life, we strongly believe that as life is different at every stage, life insurance must offer flexibility
and choice to go with that stage. We are fully prepared and committed to guide you on insurance
products and services through our well-trained advisors, backed by competent marketing and customer
services, in the best possible way.It is our aim to become one of the top private life insurance companies
in India and to become a cornerstone of ING’s integrated financial services business in India.
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3.2 ORGANIZATION STRUCTURE:
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Mission “To set the standard in helping our customers manage their financial future.”
PARTNERS
ING Group:
ING is a global financial institution of Dutch origin offering banking, insurance and asset management to
over 85 million private, corporate and institutional clients in over 50 countries. With a diverse workforce
of approximately 130,000 people, ING comprises a broad spectrum of prominent companies that
increasingly serve their clients under the ING brand.
Strategy:
Our strategy is more relevant to consumers than ever before. Their fundamental needs with regard to
saving, investing and preparing for retirement have not changed—in fact, the crisis has reinforced the
basic need to save. It has also highlighted the value of simplicity and transparency, which are two
important aspects of our goal to create an “easier” experience. More than ever, our stakeholders want a
financial partner they can trust. Given the nature of our business, it’s our responsibility to shield our
customers from market risks and reduce the volatility of our earnings for shareholders. As a result, we
will put even more emphasis on the way that we manage our risks, capital and costs.
Responsibility:
ING strives to be a good citizen. Ethical, social and environmental considerations play an integral part in
our business decisions. ING is committed to playing an active role as a community sponsor. It does this
through a wide range of local sponsorships and through its global Chances for Children initiative, which
provides access to primary education to underprivileged children in developing countries who would
otherwise not have the chance to attend school.
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY ING VYSYA LIFE INSURANCE
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Insurance plans available:
Individual Products
ING Life Insurance aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to live life to the fullest. It believes in enhancing the very quality of life, in addition to safeguarding an individual's security.The Company follows a “customer centric approach” while designing its life insurance products. The ING Life product portfolio offers products that cater to every financial requirement, at all life stages.
Protection Plans
It is the simplest form of insurance, where the Life Assured is provided insurance cover and on his death during the policy term, the sum assured under the policy is paid to his beneficiary. What is more, the ING Term Life is one of the most affordable and inexpensive ways of obtaining life insurance cover
Our saving range includes ING Term Life, ING Term Life Plus.
Savings Plans
Our Saving Plans help you achieve your life goals making them cherished moments for you and your family. They provide you with the flexibility to save for your future requirements while you continue to improve your current lifestyle. Our plans help discipline your savings approach and point your efforts towards defined goals so that whatever stage of life you are in, you are always in control and self-reliant.
Our saving range includes Unit Linked Insurance Plan, Reversionary Bonus, Child Protection Plan, Money Back Plan, Endowment Plan, Money Back Plan, Positive Life, Creating Star,
Retirement Plans
Our Retirement Plans ensure that you lead your life after retirement on your own terms, doing things you have always dreamt of. We also believe it is important to be in control of your retirement planning. Our innovative features help you choose your retirement age and also control the way your investments are managed keeping in mind your retirement needs.
Our saving range includes Best Years, New Future Perfect and ING Golden Life
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Investment Plans
Our Investment Plans are created keeping your needs in mind. We appreciate the flexibility required to suit your risk appetite and the commitments you may want to make. Our global expertise in managing wealth for individuals at all stages in their life ensures that we have products to suit your taste whatever your objective of investing may be.
Our savings range includes Powering Life, New Freedom Plan, New One Life, Platinum Life Plan, High Life, High Life Plus, New Fulfilling Life Plan,
Riders
Riders are the optional contracts, which offer additional benefits for policyholders. They are always attached to a basic policy. They cannot be bought separately or independently of a basic policy. Each Rider will have its own premium rate and separate policy conditions.
Our savings range includes Accidental Death Rider, Accidental Death, Disability and Dismemberment Rider.
Group Products
A variety of plans to provide a cost effective yet comprehensive cover in an efficient manner to all your employees, helping you attract and retain the best of talent.
ING Smart Shield
Group Gratuity
Employee Deposit Linked Insurance
Group Term Life Insurance Plan
Single Premium Level Term Plan
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Conclusions
Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be
seen in the above analysis. A general impression that we gathered during Data collection was the
immense awareness and knowledge among people about various companies and their insurance
products. People are beginning to look beyond LIC for their insurance needs and are willing to trust
private players with their hard earned money.
People in general have been impression by the marketing and advertising campaigns of insurance
companies. A high penetration of print, radio and Television ad campaigns over the years is beginning to
have its impact now.
Another heartening trend was in terms of people viewing insurance as a money back guaranty and
investment instrument as much as a protective one. A very high number of respondents have opted for
insurance for such purposes and it shows how insurance companies have been successful to attract
public money in recent times.
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The general satisfaction levels among public with regards to policy and agents still requires
improvement. But therein lies the opportunity for a relative new comer like ING Vysya Life Insurance
Company Ltd. LIC has never been known for prompt service or customer oriented methods and ING
Vysya Life Insurance can build on these factors.
3.6 Achievements & Accolade:
Launched the first CPPI product in the country
Launched the first global real estate strategy in the country
Launched the most innovative product across the Asia Pacific region – Zoom
Investment Pac. Awarded as the ‘Most Innovative Product’ by AAM.
ING CUB Fund ranked among the ‘World’s 100 top performing equity funds in 2007’ by
LIPPER.
ING Domestic Opportunities Fund awarded with 5 star rating by Value Research.
ING Income Fund-STP ranked a 5 star fund in the category of open ended debt-short
term for 3 year period ending 2007.
Rated among ‘Top 200 Brands’ in India for press coverage in 2007 and ranked No. 7 in
the asset management space ahead of all other MNC’s.
Executed Asia’s first, largest and the most prestigious event that the Indian Asset
Management Industry has ever witnessed – ING GLOBAL INVESTMENT MARATHON.
This was an ideal place for ING IM India’s existing & prospective clients to meet IIM
global portfolio specialists from US, Europe and Asia.
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CHAPTER IV: Project Task
4.1 Introduction
These are the main tasks, including the obvious ones. There are probably other tasks that need to be defined also. Each task should have some continually enhanced documentation about it, so that any person can do the tasks.
4.2 Objectives
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• To identify reason for opting/buying Life Insurance.
• To identify the best policy of ING Vysya from customer perspective.
• To diffrenciate on service provided by private insurance companies with public sector insurance
companies from customer perspective.
4.2.1 Data Requirement Analysis
The data required is about the investment pattern of the respondents, the income level under
which they fall, the respondent’s preferences to various companies and their preferences to
various types of insurance policies.
4.2.2 Data Collection
The data is collected through primary and secondary data.
The data is collected through primary data by doing field Survey in Hubli region. And
secondary data through INGVysya records like text books, websites etc. The scope of
research is restricted to Hubli region and the research approach descriptive method.
CHAPTER-V: Analysis and Interpretation
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Data gives preference of respondents of Insurance companies.
COMPANY’S NAME NO.OF RESPONDENT SHARE (%)
ING VYSYA 19 19
ICICI PRUDENTIAL 0 0
SBI LIFE INSURANCE 18 18
L.I.C 44 44
RELIANCE LIFE INSURANCE 0 0
TATA AIG LIFE 0 0
ANY OTHER 19 19
TOTAL 100 100
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INTERPRETATION
44% of the people contacted to prefer LIC policy to any other and therefore it is ranked
no.1 by that percent of respondents.
19% of the people contacted to prefer ING Vysya company’s policies.
18% of the people contacted to prefer SBI Life Insurance company’s policies.
19% of the people contacted to prefer any other policies of the companies.
Data gives benefits of Insurance perceived by respondents.
BENEFITS NO.OF RESPONDENTS
SHARE (%)
Cover Future Uncertainty 54 54
Tax Deductions 25 25
Future Investment 21 21
TOTAL 100 100
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INTERPRETATION
54% of the respondents believe that covering future uncertainty is the biggest benefit of
an insurance policy.
25% of them believe that the other benefits are Tax deduction.
Whereas, 21% of them believe that other benefits are future investment.
Data gives people perception about Insurance.
RESPONSE NO. OF RESPONDENTS SHARE (%)
A saving tool 31 31
A tax saving device 42 42
A tool to protect your family 27 27
Total 100 100
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INTERPRETATION
31% of the respondents have perception of Insurance being a saving tool.
And 42% of the respondents have perception of Insurance being a tax saving device.
But 27% of the respondents have perception of Insurance is a tool to protect your family.
Data shows buying process of the people.
BUYING PROCESS NO. OF RESPONDENTS
SHARE (%)
After seeing the add in(T.V/Paper) 28 28
Insurance advisor approached customer
72 72
Total 100 100
INTERPRETATION:
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28% of the respondents approached the after seeing the add in (T.V/Paper)
Whereas, 72% of the respondents were approached by the Insurance advisor approached
customer.
Data shows features of your policy attracted to buy it.
RESPONSE NO. OF RESPONDENTS SHARE (%)
Low premium 0 0
High risk coverage 9 9
Money back guarantee 68 68
Reputation of the company 12 12
Agents Conviction 11 11
Total 100 100
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INTERPRETATION:
68% of the Respondents are attracted for Money back guarantee.
9% of the Respondents are attracted for high risk coverage.
12% of the respondents are attracted for reputation of the company.
And 11% of the respondents are attracted for agents beliefs.
Data shows satisfaction of respondents with to policy
RESPONSE NO. OF RESPONDENTS SHARE (%)
Satisfied 82 82
Not satisfied 18 18
Not Responded 0 0
Total 100 100
INTERPRETATION:
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82% of the respondents are more or less satisfied with their existing policy.
18% of the respondents are not satisfied with their existing policy.
In this case all of those who have taken a policy have responded.
Data shows satisfaction of respondents with respect to service agents.
RESPONSE NO. OF RESPONDENTS
SHARE (%)
Satisfied 65 65
Not satisfied 34 34
Not Responded 1 1
Total 100 100
INTERPRETATION:
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65% of the respondents are satisfied with their existing service agent.
34% of the respondents are not satisfied with their service agent.
And 1% who has not responded.
Data gives people perception on appropriate age for buying Insurance.
RESPONSE NO. OF RESPONDENTS SHARE (%)
After 25 years 55 55
After 35 years 1 1
After 45 years 1 1
Anytime 43 43
Total 100 100
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INTERPRETATION:
55% of the respondents are with the view that insurance should be bought after the age of 25
years.
Whereas, 43% of the respondents are with the view that buying of insurance do not have any thing
to do with age i.e. there is no age limitations. It can be purchased any time according to the need.
And 1% of the respondents are with the view that insurance should be bought after 35 and 45 years
of age.
Data shows people opinion about Indian Insurance companies.
RESPONSE NO. OF RESPONDENTS SHARE (%)
Rigid plans 22 22
Non user friendly 9 9
Unsatisfactory services 1 1
Non Aggressive 18 18
Satisfactory 11 11
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Good 38 38
Very good 1 1
Total 100 100
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INTERPRETATION:
22% of the respondents have the opinion that Indian Insurance Companies have rigid plans.
9% feel that Indian Insurance companies are Non-user friendly.
18% of the respondents are with the view that Indian Insurance companies are Non-aggressive.
11% of the respondents feel that products and services of Indian Insurance companies is
Satisfactory.
Whereas, 38% feel that it is good enough.
And according to the data, only single person has felt that it is very good.
And 1% of the respondents felt that it is unsatisfactory service.
Data shows what people would look for in an Insurance company.
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RESPONSE NO. OF RESPONDENTS
SHARE (%)
A trusted name 35 35
Friendly service & responsiveness
3 3
Good plans 61 61
Accessibility 1 1
Total 100 100
INTERPRETATION:
35% customers look for a trusted name in a company for insurance.
61% customers look for a good plan in a company for insurance.
3% customer looks for Friendly service responsiveness.
And 1% customer looks for Accessibility.
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Data shows people interested in going for Insurance if Insurance Company away from your city &
offers better services & products.
RESPONSE NO. OF RESPONDENTS
SHARE (%)
Yes 46 46
No 24 24
Uncertain 30 30
Total 100 100
INTERPRETATION:
The interested customers i.e. 46% are ready to go for insurance even away from a city if
services and products.
24% of the customer is not ready to go for insurance away from a city.
30% of the customer is not known about their decision.
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1. Which company u prefers the most?
RESPONSE after 25 after 35 after 45
any time
ING VYSYA 20 0 0 0
ICICI PRUDENTIAL 0 0 0 0
SBI LIFE INSURANCE 10 0 0 10
L.I.C 20 0 0 20
RELIANCE LIFE INSURANCE 0 0 0 0
TATA AIG LIFE 0 0 0 0
ANY OTHER 0 0 0 20
TOTAL 100
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2. Data gives benefits of Insurance perceived by respondents.
RESPONSE after 25 after 35 after 45
any time
Cover Future Uncertainty 30 0 0 40
Tax Deductions 10 0 0 0
Future Investment 10 0 0 10
TOTAL 100
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3. Data gives people perception about Insurance.
RESPONSE after 25 after 35 after 45
any time
A saving tool 30 0 0 0
A tax saving 10 0 0 30
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device
A tool to protect your family 10 0 0 20
TOTAL 100
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4. Data shows buying process of the people.
RESPONSE after 25 after 35 after 45
any time
After seeing the add in(T.V/Paper)
30 0 0 0
Insurance advisor approached customer
20 0 0 50
TOTAL 100
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5. Data shows features of your policy attracted to buy it.
RESPONSE after 25 after 35 after 45
any time
Low premium 0 0 0 0
High risk coverage 10 0 0 0
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Money back guarantee 30 0 0 40
Reputation of the company
0 0 0 10
Agents Conviction 10 0 0 0
TOTAL 100
6. Data shows satisfaction of respondents with to policy
RESPONSE after 25 after 35 after 45
any time
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Satisfied 40 0 0 50
Not satisfied 10 0 0 0
Not Responded 0 0 0 0
TOTAL 50 0 0 50
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7. Data shows satisfaction of respondents with respect to service agents.
RESPONSE after 25 after 35 after 45
any time
Satisfied 50 0 0 50
Not satisfied 0 0 0 0
Not Responded 0 0 0 0
TOTAL 100
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8. Data shows people opinion about Indian Insurance companies.
RESPONSE after 25 after 35 after 45
any time
Rigid plans 10 0 0 10
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Non user friendly 10 0 0 0
Unsatisfactory services 0 0 0 0
Non Aggressive
20 0 0 0
Satisfactory 0 0 0 0
Good 1 0 0 4
Very good 0 0 0 0
TOTAL 100
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9. Data shows what people would look for in an Insurance company.
RESPONSE after 25 after 35 after 45
any time
A trusted name
0 0 0 30
Friendly service & responsiveness
0 0 0 0
Good plans 50 0 0 20
Accessibility 0 0 0 0
TOTAL 100
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10. Data shows people interested in going for Insurance if Insurance Company away from your city & offers better services & products.
RESPONSE after 25 after 35 after 45
any time
Yes 30 0 0 10
No 10 0 0 10
Uncertain 10 0 0 30
TOTAL 100
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CHAPTER-VI: Solutions and Suggestions
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Solutions:
44% of the people contacted to prefer LIC policy to any other company so they need to
improve in there benefits they provide and product features.
54% of the respondents believe that covering future uncertainty is the biggest benefit of
an insurance policy so they should be improve in tax deduction and price.
42% of the respondents have perception of Insurance being a tax saving device so they need to
come up new family products.
72% of the respondents were approached by the Insurance advisor approached customer and
not to by watching T.V and advertisement it means the company should come up with different
and attractive ads in television as well as news paper.
68% of the Respondents are attracted for Money back guarantee no other than that so they
should work on building trust as well as good relation with people.
82% of the respondents are more or less satisfied with their existing policy. It tells about how
the people are more conscious about their health so insurance has good opening.
65% of the respondents are satisfied with their existing service agent so they should give
training to each agent it helps to reach the customer need and can satisfy them.
55% of the respondents are with the view that insurance should be bought after the age of 25
years it tells about the company should come up with new products which should help to above
25years age group.
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38% feel that it is good enough it means they should provide good policy to people
which should help there future as savings etc.
61% customers look for a good plan in a company for insurance so the company already
has good plans but also when day goes they should come up with new plans features as
well.
The interested customers i.e. 46% are ready to go for insurance even away from a city if services
and products so people are more interest which the service provide by company so they need to
improve in their customer satisfaction.
Suggestion:
The survey is important tool as clear perception of people about the product can be estimated and known. The need levels of the people regarding the insurance product been observed through survey. It was very useful in knowing about the requirements of the people.
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CHAPTER VIII: SUMMARY OF WORK DONE AND CONCLUSIONS
8.1 Summary of the Work Done
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 city 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. Data collection has been
done through by giving structured questionnaire. This study will be based on sampling.
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8.2 Major Findings
1. Many are respondened that insurance is a tool to protect their family & a tax saving device. They
know the fact & realizing its importance. The company should try to expand & build up its infrastructure
because there is a large potential for insurance in India.
2. Company should come up with its new branches in Hubli region. With the objective and goals to meet
the demands & expectations of the public. Because the entrance of private players will increase the
competition and it would be a tough task to secure a good position in market.
3. Since ING Vysya Life Insurance is leading with several companies’and its policies should helps for
them to penetrate into the market and secure a good position if they pay greater attention to the
service part provided to their customer and thereby forming a long and trusted relationship.
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8.3 Scope for Future Work
It helps to know about customer buying behaviour with life insurance and to know about customer perception towards life insurance. it also helps to know about the market potential in the Hubli. It can be apply by many life insurance companies. To know the opening of new branches in Hubli region. It will help to company to improve them selves in there targeting market and targeting customer.
REFERENCES
Appendix – A: 1.Business Research Methodology, INDIAN EDITION (7e) by William G.
Zikmund.
2. Marketing Management, eleventh edition by Philip Kotler.
I am N H.CHINNAKATTI Student of B.V.B.C.E.T Department of Management Studies undertaking a project on “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli as a part of my MBA curriculum. I therefore request you to give your most candid and thorough response to the questions below. Rest assured that the information you share is confidential and academic in nature.
Name:
Location:
Occupation:
1. Do you have any Insurance Policy? Yes ( ) No ( )
2. Which Insurance policy do you have?
Life ( ) General ( ) Both ( )
3. Which Company’s you prefer the most?
a) ING VYSYA LIFE ( )
b) ICICIPRUDENTIAL ( )
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c) SBI LIFE INSURANCE ( )
d) L.I.C ( )
e) RELIANCE LIFE INSURANCE ( )
f) TATA AIG LIFE ( )
g) ANY OTHER ________ (Specify)
4. For how many years form you would like to Insurance courage?
a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______
(Specify)
5. What do you think are the benefits of Insurance cover?
a) Cover future uncertainty ( )
b) Tax deduction ( )
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c) Future investment ( )
d) Any other _________ (Specify)
6. Which feature of your policy attracted you to buy it?
a) Low premium ( )
b) High risk coverance ( )
c) Money back guarantee ( )
d) Reputation of the company ( )
e) Agent’s conviction ( )
f) Any other _________ (Specify)
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7. Your monthly income?
a) >8,000 b) >8,000 to <=25,000 c) >=25,000.
8. Do you really think the necessity Insurance policy cover in today’s scenario?
a) Very essential ( )
b) Essential ( )
c) Partially ( )
d) Not required ( )
e) If not required please give specific reason _______________________________________________________________
9. What is your perception about Insurance?
a) A saving tool ( )
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b) A tax saving device ( )
c) A tool to protect future ( )
10. How you buy Insurance?
a) After seeing the add in (T.V/Paper) ( )
b) Insurance advisor approached customer ( )
11. Are you satisfied with the policy?
a) Satisfied ( )
b) Not satisfied ( )
c) Not responding ( )
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12. Are you satisfied with the service provided by Insurance agents?
a) Satisfied ( )
b) Not satisfied ( )
c) Not responding ( )
13. Which is the best form of investments? (Give the rating No.1 as the most
Preferred And No.6 last preferred among these)
a) Insurance ____
b) Bank deposits ____
c) Jewellery ____
d) Securities (Bonds, M.F’s) ____
e) Shares ____
f) Fixed assets ____
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14. What is the right age to buy Insurance?
a) After25 Yrs ( )
b) After 35 Yrs ( )
c) After 45 Yrs ( )
d) Any time ( )
15. How would you rate private life Insurance companies compare to L.I.C?
a) Rigid plans ( )
b) Non-user friendly ( )
c) Unsatisfactory services ( )
d) Non-aggressive ( )
e) Satisfactory ( )
f) Good ( )
g) Very good ( )
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16. What would you look for in Insurance companies?
a) A trusted name ( )
b) Friendly service & responsiveness ( )
c) Good plans ( )
d) Accessibility ( )
17. Would you go for Insurance if Insurance company away from your city &