CHAPTER – I INTRODUCTION SUMMARY OF THE PROJECT The project entitled “CONSUMER SATISFACTION WITH REFERENCE TO TATA-AIG - A STUDY IN VISHAKAPATNAM”. Insurance means protection against financial loss which will happen in unexpected events such as fire, accident, illness, or death. Insurance divided into two types: 1. Life Insurance 2. General Insurance Business of Life Insurance in India started in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Insurance sector is commenced with the enhancement of the Insurance Regulatory and Development Authority Act 1999, which facilitated the entry of private insurance companies into the Indian Insurance market. Tata-AIG Life Insurance Company Private Limited entered the Private Life Insurance Industry in India in April 2001, and in pass of 6 years has established itself as a distinctive 1
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CHAPTER – I
INTRODUCTION
SUMMARY OF THE PROJECT
The project entitled “CONSUMER SATISFACTION WITH REFERENCE
TO TATA-AIG - A STUDY IN VISHAKAPATNAM”. Insurance means
protection against financial loss which will happen in unexpected events such as
fire, accident, illness, or death. Insurance divided into two types:
1. Life Insurance 2. General Insurance
Business of Life Insurance in India started in the year 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. Insurance
sector is commenced with the enhancement of the Insurance Regulatory and
Development Authority Act 1999, which facilitated the entry of private insurance
companies into the Indian Insurance market. Tata-AIG Life Insurance Company
Private Limited entered the Private Life Insurance Industry in India in April 2001,
and in pass of 6 years has established itself as a distinctive Life Insurance brand
with an Innovate, attractive and customer friendly product portfolio and a
professional advisor force. It also distributes products in close operation with the
Tata network. Currently, it has over 10000, active advisors working from 46
branches in 30 cities across the country and over 1200 Employees. The company
with a customer base of over 1, 65,000. This topic contains – what is insurance,
what is the position of Tata-AIG, in what way Tata-AIG is differ from other
private insurance players, what are the Tata-AIG products and what are its
features, customer awareness about Tata-AIG, what is the market share of Tata-
AIG, with compare to other private insurance players, how much percentage of
customer have in Tata –AIG in present situation. It also includes study of-----
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The products offered by the top private insurance companies with compare
to Tata-AIG.
The need of the customers [protection, pension, investment, savings, tax
effect, loan.]
Acceptance of privatization of insurance companies without feel any
insecurity.
All the above helps in differentiating the company through customers in
terms of return, asset, services and satisfaction. It will help to the know the
following:
Who is a close competitor, what products are they deal in, what features it
has and how many customers really know the Tata-AIG Life Insurance Company.
Primary data collection is with the help of survey through a questionnaire, by
interacting with all individuals who have Insurance policies in different
companies. Secondary data is collected through Web sites, News papers, Journals
and Magazines etc….
The limitations of the study are there is possibility of collecting biased
opinion from the customers and limited time period allocated for the survey is not
sufficient to allocate the satisfaction levels of customers. Due to irrelevant sample
and biased option the results derived may not be appropriate. The study done
through only half of the questionnaire so it is not the represent of total concept.
Strategy
To Recruit advisors collection of data regarding various fields like
chartered accountants Pharma distributors, postal agents goldmercahants, retailer
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medical owners, cement and steel traders) those who are potential advisors of
TATA AIG life insurance company. Make telecalling and take appointment their
convenient time. Completions of telecalling go to their appointment places and
explain the concept of financial advisor recruitment with the help of company
flyers. Completion of concept explanation, give a company flyers with phone
number.
Synopsis :
After privatization of insurance companies, every insurance company
entered into global market implementing various strategies to gain good market
share. Every company is trying to outsmart others in fighting with changing
business environment. And adaptability is the main thing followed by every
insurance company. One insurance calibirize other competitor company it will put
more efforts. Company to withstand in the competition, followed the strategies
such as product differentiation, service quality, agent service satisfaction,
maintaining good relationship with customers. Company withstood in the global
market ready to anticipate challenges and immediately reacting to meet customers’
changing needs by establishing goals keeping customers needs and preferences in
mind. .
Value Addition to Self
Through this project I had gained some exposure to real market conditions,
gained some experience regarding company products and understood corporate
culture. I am able to follow time management, stress management and developed
communication skills and interpersonal relationship skills.
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Content and Scope of the Study
This project deals with a study of consumer begaviour in TATA-AIG LIFE
INSURANCE COPMANY VISHAKAPATNAM. Under the esteemed guidance
of C. JAGADISH, Branch Manager and Prof. G.SATYANARAYANA, Ph.D.,
Project Guide. The project started on Jan 17, 200, where our company guide
provided details regarding the company and its products.
A service is any act of performance that one party can offer to another that
is essentially intangible and does not result in the ownership of any thing .its
production may or may be tied to a physical production, may or may not be tied to
physical products.
The word insurance instills a sense of security in the minds of
people .insurance is a part of financial system that takes care of the financial
consequence of certain specific contingencies both incase of individuals and
corporate bodies. Such contingencies are called risk and they cause losses when
they take place .insurance neither prevents risk nor alters the probability of its
occurrence. But reduces the extant of financial loses by transferring risk from one
individual to a group.
Economic activity and growth are greatly facilated by the existence of a
financial system. Developing in terms of efficiency of the market in mobilizing the
savings and allocating them among competing user. Economy needs institutions
that impartially enforce property rights and contracts. Economic growth depends
on the existence of well functioning financial market. It is essential that the
financial infrastructure is developed sufficiently so that the market operation is
efficient
4
Need for the Study:
To know the Awareness levels of existing and new customers
To analyses the customer satisfaction levels of customers of TATA-AIG LIFE INSURANCE COMPANY.
To know the whether the customers are satisfied with the company services are not
Objectives of the study
To study customers awareness level regarding products of TATA-AIG.
To find out changing needs and preferences of the customers of TATA_AIG
To find out how the company is maintaining close relationship with the customers
To study how the customers are benefiting out of the insurance products.
To find out insurance agent service levels
Methodology
TYPE AND SOURCES OF DATA.
Proposed method of approach towards this project to collect primary data and secondary data on customer awareness and general information about life insurance companies in India.
PRIMARY DATA:
Primary data is the original data collection by market survey and Telecalling, through which data is collected from the questionnaires.
QUESTIONNAIRE:
The questionnaire was prepared on the basis of CUSTOMER BEGAVIOR.the questionnaire we have chosen both the open and close ended questions, which helps in collecting source information
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such as customer satisfaction and customer relationship management.
MARKET SURVEY
Conduct a market survey and telecalling the existing customer of the Tata AIG and take an opinion of the customer based on that questionnaire.
SECONDARY DATA:
For present project it has been collected data from journals and take little bit of opinions with official of the Tata Aig office.
Sampling Technique;
The random sampling technique was used in collecting data from 200 customers
Limitations of the study
The respondent may not be aware of Tata Aig life insurance products .so response may not be fair.
. The sampling technique like random sampling and satrified sampling
adopted may not provide desire results.
This survey restricted with in Andhra Pradesh boundaries only.(Existing customers of Tata AIG only.)
.Some of the respondents are may hesitate to reveal the accurate
information required for survey
CHAPTER – II
6
INDUSTRY PROFILE
INSURANCE INDUSTRY :
It is a plan in which individuals and organization who is concerned about
potential risks will pay premiums to an insurance company, who in return, will
reimburse them if there is loss. To generate profit, the insurer will invest the
premiums he receives. Examples of the different types of insurance available are
automobile, home, health and worker's compensation. Whereas in most cases the
insured is paid for their loss, with life insurance a beneficiary is paid when the
insured person passes away
policy: written contract or certificate of insurance; "you should have read
the small print on your policy"
indemnity: protection against future loss
The Buyer shall provide at its expense property damage insurance or “all
risk” builder's risk insurance covering all of its property on the basis of full
replacement cost value without depreciation which will name the Seller and any
manufacturer of the Product(s) as additional insured with a waiver of subrogation
against all insured parties there under
Insurance, in law and economics, is a form of risk management primarily
used to hedge against the risk of potential financial loss. Ideally, insurance is
defined as the equitable transfer of the risk of a potential loss, from one entity to
another, in exchange for a reasonable fee. ...
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Liberalisation of Insurance in India
The eagerly awaited Insurance Regulatory and Development Authority
(IRDA) Bill to open the insurance sector in India to private and foreign players,
was passed by the Lok Sabha on December 2, 1999 and by the Rajya Sabha on
December 7, 1999. The Bill seeks to grant statutory status to the interim Insurance
Regulatory Authority and amend the 1938 Insurance Act, the 1956 Life Insurance
Corporation Act and the 1972General Insurance Business (Nationalization) Act to
end the public sector monopoly. The IRDA Bill incorporates the recommendations
made by the parliamentary Standing Committee on Finance.
“India is the fifth largest economy in the world and the country is expected
to have 500million middle class consumers within next eight years. The demand
for consumer and industrial product and services has been expanding rapidly and
removal of some investment and trade barriers has given new momentum to this
A Brief history of Insurance Sector
The business of life insurance in India in its existing form started in India in
the year1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect Statistical information about both life and non-life insurance businesses.
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1938: Earlier legislation consolidated and amended to by the Insurance Act with
the Objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident fund societies taken over by
the central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act,1956, with a capital contribution of Rs. 5 core from the Government of
India. The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
Mercantile Insurance Ltd. set up, the first company to transact all Classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company. GIC
incorporated as a company.
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PUBLIC AND PRIVATE PLAYERS IN INDIA
LIFE INSURERS Websites
Public Sector
Life Insurance Corporation of India www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
ING Vysya Life Insurance Company Limited www.ingvysayalife.com
Max New York Life Insurance Co. Limited www.maxnewyorklife.com
MetLife Insurance Company Limited www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Company Limited www.tata-aig.com
AMP Sanmar Assurance Company Limited www.ampsanmar.com
Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Ensure recommendation that fits your needs and priorities.
Market share of TATA AIG
in the year of 2006 march the market share of the TATA AIG IS 3.09
COMPETITORS OF TATA-AIG
Main Competitors Market share (%)
LIC 71.44
ICICI PRUDENTIAL 7.34
BIRLA SUN LIFE 3.01
BAJAJ ALLIANZ 7.56
HDFC STANDARD 2.86
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CHAPTER – IV
ANALYSIS OF THE STUDY
TABLE- 1
POLICY AND CATEGERY OF RESPONDENTS
TYPE OF POLICY EMPLOYEES
BUSINESS PEOPLE
OTHER PEOPLE
HEALTH 21 29 5
CHIDRENS EDUCATION
14 12 7
RETIREMENT PLANNING
26 36 14
OTHER POLICIES
11 15 12
TOTAL 72 92 36
49
2114
26
11
29
12
36
155 7
1412
0
10
20
30
40
NO OF PEOPLE
Employees Business people Others
DIFFRENT CATAGERIES OF PEOPLE
POLICY AND CATEGERY OF PEOPLEHealth
Childrens education
Retirement planning
Other policies
CHART – I
Inferences:
92 members of the business people preferred all the types of the policies. So in the near future most of the business people are potential customers of the TATA AIG life insurance company.
Second category of customers like employees (72) preferred both retirement planning and health policy because these type policies will give tax benefits and life long returns to the policy holder.
36 members of the respondents like rural people mostly preferred retirement planning they want some monthly returns.
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TABLE-2
AGE AND PREFERENCE OF POLICY
AGE HEALTH
CHILDRENS EDUCATION
RETIREMENT PLANNING
OTHER POLICIES
2O-308
14 8 11
31-40 14 22 19 13
41-50 22 11 26 10
50 ABOVE
12 9 7 6
TOTAL 56 44 60 40
CHART - 2
51
8
14
22
1214
22
119 8
19
26
7
1113
10
6
0
5
10
15
20
25
30
NO OF RESPONDENTS
Health childernseducation
Retirementplanning
Otherpolicies
DIFFRENT POLICIES
AGE AND PREFERENCE OF POLICY
20-30
31-40
41-50
ABOVE 50
Inferences:
o Above table shows that 56 members of the customers take health policy, in that 56 included all ages of the customers .41-50 years of age of the customers preferred health policy heavily .so these customers are high net worth value customers of the TATA –AIG
o 44 members of the customers preferred children’s education policy .most of 31-40 years age of the customers preferred children’s education policy.beacuse they are just entered in to the life and they want to more investment and financial plans.
o 60 members of the respondents are preferred Retirement planning, 41-50 Middle Ages of the people preferred heavily, this type of policy helpful in future needs and wants.
o 31-40 ages of the respondents are take other policies like invest assure and Nirvana plus.
43 respondents are satisfied with monthly mode of premium for the reason that they felt that easy to pay premium.
63 of the respondents are satisfied with their quarterly yearly premium payment
42 of the respondents are satisfied with their half yearly premium payment
42 of the respondents are satisfied with their yearly premium payment
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TABLE-4
OTHER COMPANY POLICIES OF THE TATA-AIG CUSTOMERS
DIFFERENTCOMPANIES
HEALTHRETIREMENTPLANNING
CHILDRENSEDUCATION OTHERS
LIC 18 18 10 7
TATA AIG 21 22 9 5
BAJAJ ALLIANZ
1314 15 12
BIRLA SUNLIFE
9 12 12 3
TOTAL61
66 46 27
1818
107
2122
95
13151512
91112
30
5
10
15
20
25
NO OF CUSTOMER IN EACH
COMPANY
LIC TATA AIG BAJAJALLIANZ
BIRLASUN LIFE
DIFFRENT COMPANIES
OTHER COMPANY POLICIES OF TATA AIG CUSTOMERS
HEALTH
RETIREMENT PLANNING
CHILDRENS EDUCATION
OTHERS
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Inferences
61 members of the TATA AIG HEALTH policy customers taken other company policies, most of the customers preferred LIC.
66 members of the TATA AIG RETIREMENT PLANNING customers contain other company policies. They are also mostly invested in LIC because they felt that it gives more security compare other insurance companies
46 members of the TATA AIG CHILDERNS EDUCATION policy customers have other company policies.
27 members of the TATA AIG policies different policy customers contain other company
]
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TABLE -5
REASONS FOR SELECTING TATA-AIG LIFE INSURANCE
CHART- 5
REASONS FOR SELECTING TATA-AIG
445898
020406080
100120
BR
AN
D N
AM
E
GO
OD
RE
LAT
ION
SH
IP
GE
T M
OR
ER
ET
UR
NS
REASONS
NO
OF
RE
SP
ON
DE
NT
S
BRAND NAME
GOOD RELATIONSHIP WITHCUSTOMRERS
GET MORE RETURNS
REASONS NO OF RESPONDENTS
Brand Name 98
Good Relationship with Customers
58
More Returns 44
TOTAL 200
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Inferences
98 of the respondents are opting for TATA-AIG is to have good brand name.
58 of the respondents are said to TATA-AIG maintain good relationship with customer
44 of the respondents are said to be it gives good returns to their investment
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TABLE-6
MODE OF RESPONSE ON PRODUCT DOUBTS RECEIVED
MODES OF RESPONSE NO OF RESPONDENTS
PHONE78
PERSONAL INTERACTION104
WEBSITES18
TOTAL200
CHART - 6
PRODUCT DOUBTS AND WAY OF RESPONSE RECEIVED
18
10478
020406080
100120
Phone personalinteraction
websites
WAY OF RESPOSE
NO
OF
R
ES
PO
ND
EN
TS
PHONE
PERSONALINTERACTION
WEBSITES
Inferences 104 numbers of existing customers are clarifying their doubts regarding
policy and their mode of premium through personal interaction.
78 members of existing customers are clarify their doubts through phones because they living in far away from the office.
18 of the respondents are daily visit company websites and they will see what are the happened in the company policies and clarify their doubts.
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TABLE-7
COMPANY SERVICE LEVELS
DIFFERENT RANKS NO OF RESPONDENTS
GOOD 102
AVERAGE 67
POOR 31
TOTAL 200
CHART - 7
102
67
31
020406080
100120
NO OF RESPONDENTS
GOOD AVERAGE POOR
DIFFRENT RANK
COMPANY SERVICE LEVELS
Good
Average
Poor
Inferences
In this survey 102 numbers of respondents are said to be company service levels are good like they provide on time training to newly joining of advisors.
In this survey 67 respondents are said to be company service levels are average
In this survey 31 respondents are said to be company service levels are poor
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TABLE -8
ADVISORS EXPLANATION REGARDING POLICY
EXPLANATIONNO OF RESPONDENTS
GOOD 69
SATISFIED 112
UN SATISFIED 21
TOTAL200
CHART – 8
69
112
21
0
20
40
60
80
100
120
NO OF RESPONDENTS
GOOD SATISFIED UNSATISFIED
DIFFRENT RANKS
ADVISORS EXPLANATION REGARDING POLICY
Good
Satisfied
Un satisfied
Inferences
112 members of the of a TATA AIG existing customer are said to be they are satisfied with advisor explanation. Advisors have enough knowledge and skills regarding policy
69 members of TATA AIG of the existing customer are said Advisors explanations are good.
21 members of members of TATA AIG of the existing customer are said Advisors explanations are poor. Because they are not provided exact requirements of the customer
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TABLE-9
TOTAL CUSTOMER SATISFACTION LEVELS
DIFFERENT RANKS NO OF RESPONDENTS
GOOD 103
AVERAGE 69
POOR 28
TOTAL 200
CHART - 7
0
200
NO OF RESPONDENTS
DIFFRENT RANKS
TOTAL CUSTOMER SATISFACTION LEVELS
Series1 103 69 28
GOOD AVERA POOR
Inferences In this survey 103 existing customers are satisfied regarding company
service levels advisors explanation and different policies offered by the company.
69 members of the existing customers said to be company service levels advisors explanation are Average
28 members of the existing customers said to be company service levels advisors explanation are poor.
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CHAPTER – V
FINDINGS AND SUGGESTIONS
FINDINGS :
Most of the TATA AIG existing customers are aware of the all the products
offered by the company
With regard to occupation most of the respondents are business people
Most of the respondents preferred both retirement planning and health
protector policy because health protector gives tax benefits .and
Retirement planning gives life long returns to the policy holders.
To protect their income after retirement most of the respondents preferred
to opt for the monthly income schemes.
most of the respondents aware of the insurance and its benefits
Most of the respondents felt that it is needed for the family.
with regarding to arrangement of cash for medical expenses, most of the
respondents prefer health protector
Most of the respondents are satisfied with company service levels advisors
explanation regarding policy
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As a whole total customer satisfaction is very in TATA AIG LIFE
INSURANC COMPANY.
SUGGESITONS :
Company should give more ads like hoardings , than only people should
aware of the company
Before a policy is sold all the details of the policy should be clearly
explained to the client so they should understand what the exact
requirement of the customers is, it will helps in avoiding misunderstanding
between customer and advisors.
Company should open online transaction facility so that the transaction
need not take so much of time
Company should train the advisors in the way of innovatively then all the
potential customers are converted in to policyholders
It is cleared from the data collected the majority of the people believe in
insurance therefore, the company may grab this opportunity in the near
future to sell their products.
63
BIBLILOGRAPHY
Website visited:
www .tata-aig.com
www.tata-aiglife.com
Www. the hindubusinessline
www.irdaindia.org
List of books and other supplementary material referred to:
Hindu’s market survey
On Life Insurance by M .Anderson, Buist M.Anderson]
A) 20-30 years b) 31-40 years c) 41-50 years. d) 50 above.
1) Which type of policy did you take? a) health insurance b) children educationc) retirement planning d) Any other product.
2) How much amount of policy did you take with respective to TATA- AIG? a) 50000.
b) 50000-100000c) 100000 ABOVE.
3) How much amount of premium do you pay? a) Below 10000 b) 10000 _15000 c 15000 above4) Are you satisfied with the mode of premium payment?
a) Monthly b) quarterly c) half yearlyd) yearly
Why please specify ……………………….
5) Do you have any other life insurance policy apart from TATA-AIG? If yes, with which insurance company.
a) icici prudential b) Bajaj Allianzc) Birla sun life insurance d) Any other life insurance company.
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e) no6) Why did you opt for TATA- AIG Life Insurance Company? a) brand name b) Good relationship with customers c) Get more returns. d) Any other reasons
Please specify……………………..
7) If you have any doubt regarding insurance service how do you receive the response? a) Phone b) Personal interaction c) Websites d) Any other
8) How do you define the company service levels?a) good b) average c) Poor.
9) Do you satisfy with the advisors explanation about our products? a) Good b) Satisfactory
c) Unsatisfactory
If no, please specify reasons for dissatisfaction. ………………………….. d) no
10) Do you get any additional benefits from our company? a) Incentives.
b) Gifts/ gift vouchers. c) Conventions d) Any other benefits
11) How do you define the rank of the customer satisfaction levels?e) good f) average g) Poor.