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A project report on consumer buying behaviour for life insurance of ing vysya life insurance company

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A project report on consumer buying behavior for life insurance of ing vysya life insurance company By Babasab Patil

A project report on consumer buying behavior for life insurance of ing vysya life insurance company By Babasab Patil

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  • 1. “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.
  • 2. “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
  • 3. “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
  • 4. “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
  • 5. “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
  • 6. “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.
  • 7. “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: YearNetworthDeposits 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
  • 8. “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 7473.20104780.00 69367.30 590.01 523 2005 7094.00125693.10 90805.90(381.80) 536 200610196.70133352.50102315.20 90.6 562 200711101.90154185.70119761.70 889.0 626 200814260.00204980.00146500.00 1569.00 677 200915940.00248900.00167510.00 1888.00 857*
  • 9. “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 worries. Management: Board of Directors (as on June 01, 2009):
  • 10. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 10 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 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
  • 11. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 11 Mr. Joost van Beveren: Vice President - Business Transformation Corporate Objective: 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.
  • 12. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 12 3.2 ORGANIZATION STRUCTURE: CEO DIRECTOR- I.T SERVICES DIRECTOR- SALES (MR.T.K.UTTAPA) DIRECTOR- OPERATIONS CENTRAL RVP SALES REGIONAL VICE PRESIDENT SALES- NORTH REGIONAL VICE PRESIDENT SALES- SOUTH REGIONAL VICE PRESIDENT SALES- EAST REGIONAL VICE PRESIDENT SALES- WEST AREA MANAGER AREA MANAGER AREA MANAGER BRANCH MANAGER HUB/SPOKE LOCATION AREA MANAGER SENIOR BM AGENCY MANAGER SALES MANAGER SALES MANAGER SALES MANAGER SENIOR SALES MANAGER GROUP SALES MANAGER ASSISTANT SM AGENCY SM FINANCIAL ADVISORS
  • 13. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 13 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
  • 14. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 14 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 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
  • 15. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 15 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 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
  • 16. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 16 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. 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.
  • 17. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 17  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. 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 • To identify reason for opting/buying Life Insurance. • To identify the best policy of ING Vysya from customer perspective.
  • 18. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 18 • 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  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
  • 19. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 19 RELIANCE LIFE INSURANCE 0 0 TATA AIG LIFE 0 0 ANY OTHER 19 19 TOTAL 100 100 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.
  • 20. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 20  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 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.
  • 21. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 21 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 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
  • 22. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 22 INTERPRETATION:  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
  • 23. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 23 Total 100 100 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
  • 24. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 24 INTERPRETATION:  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
  • 25. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 25 INTERPRETATION:  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
  • 26. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 26 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
  • 27. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 27 Good 38 38 Very good 1 1 Total 100 100 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.
  • 28. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 28  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. RESPONSE NO. OF RESPONDENT S SHARE (%) A trusted name 35 35 Friendly service & responsiveness 3 3 Good plans 61 61
  • 29. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 29 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.  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
  • 30. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 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. 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
  • 31. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 31 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 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
  • 32. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 32 Tax Deductions 10 0 0 0 Future Investment 10 0 0 10 TOTAL 100 3. Data gives people perception about Insurance. RESPONSE after 25 after 35 after 45 any time A saving tool 30 0 0 0
  • 33. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 33 A tax saving device 10 0 0 30 A tool to protect your family 10 0 0 20 TOTAL 100 4. Data shows buying process of the people. RESPONSE after 25 after 35 after 45 any time
  • 34. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 34 After seeing the add in(T.V/Paper) 30 0 0 0 Insurance advisor approached customer 20 0 0 50 TOTAL 100 5. Data shows features of your policy attracted to buy it. RESPONSE after 25 after 35 after 45 any time
  • 35. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 35 Low premium 0 0 0 0 High risk coverage 10 0 0 0 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 Satisfied 40 0 0 50
  • 36. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 36 Not satisfied 10 0 0 0 Not Responded 0 0 0 0 TOTAL 50 0 0 50 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
  • 37. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 37 Not satisfied 0 0 0 0 Not Responded 0 0 0 0 TOTAL 100 8. Data shows people opinion about Indian Insurance companies. RESPONSE after 25 after 35 after 45 any time
  • 38. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 38 Rigid plans 10 0 0 10 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 9. Data shows what people would look for in an Insurance company. RESPONSE after 25 after 35 after 45 any time
  • 39. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 39 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 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
  • 40. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 40 Yes 30 0 0 10 No 10 0 0 10 Uncertain 10 0 0 30 TOTAL 100 CHAPTER-VI: Solutions and Suggestions Solutions:
  • 41. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 41  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.  38% feel that it is good enough it means they should provide good policy to people which should help there future as savings etc.
  • 42. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 42  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. 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
  • 43. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 43 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. 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.
  • 44. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 44 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. 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. Appendix – B: WWW.inglife.co.in WWW.money.cnn.com WWW.insuranceinstituteofindia.com WWW.insurance.com WWW.economywatch.com Appendix – C: Company Broachers
  • 45. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 45 QUESTIONNAIRE Dear Sir/Madam Name: Location: Occupation: 1. Do you have any Insurance Policy? Yes ( ) No ( ) 2. Which Insurance policy do you have? Life ( ) General ( ) Both ( )
  • 46. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 46 3. Which Company‘s you prefer the most? a) ING VYSYA LIFE ( ) b) ICICIPRUDENTIAL ( ) 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 ( ) 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 ( )
  • 47. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 47 d) Reputation of the company ( ) e) Agent‘s conviction ( ) f) Any other _________ (Specify) 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 ( ) b) A tax saving device ( ) c) A tool to protect future ( ) 10. How you buy Insurance?
  • 48. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 48 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 ( ) 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 ____ 14. What is the right age to buy Insurance?
  • 49. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 49 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 ( ) 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 & Offers better services & products? a) Yes ( ) b) No ( ) c) Uncertain ( )
  • 50. “Study on Consumer Buying Behaviour for Life Insurance” of ING Vysya Life Insurance Company Limited in Hubli Babasabpatilfreepptmba.com Page 50 --- THANK YOU ---

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