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An empirical study on customers attitude towards service level and brand

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  • 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)105AN EMPIRICAL STUDY ON CUSTOMERS ATTITUDE TOWARDSSERVICE LEVEL AND BRAND LOYALTY - SPECIAL REFERENCETO AVIVA INDIA*Dr. Nandhalal.B* Research Fellow, CMJ University, Meghalaya – 793003.ABSTRACTThis abstract is helpful to make aware the readers about the customer’s attitudetowards service level and brand loyalty in the Indian insurance sector with special referenceto AVIVA INDIA- MADURAI BRANCH. The first objective of the study is to analyze theDEMOGRAPHIC determinants toward the Service Satisfaction Level, the second objective isto examine the relationship between the customer types (NRI customer, RI customer) and theservice satisfaction level and the third objective is to examine the relationship between thecustomer groups (New to Company (NTC), Existing) and the brand loyalty which are basedon analyzed data. After analyzing the data, the conclusion has been made that the servicelevel was beyond the customers expectation and most of the customers were more loyaltowards the AVIVA INDIA.Keywords: FPM – Financial Planning Manager, AI – Aviva India,NRI – Non ResidentIndian,RI – Resident Indian,NTC – New To Company.INTRODUCTIONAs at end September 2012, there are fifty two insurance companies operating in India:of which 24 companies are life insurers and the remaining 27 companies are nonlife insurers.General Insurance Corporation (GIC) is the sole national re insurer. The life insuranceindustry recorded a premium income of Rs.2, 87,072 during 2011 - 2012 as againstRs.2,91,639 in the previous financial year, registered a negative growth of 1.57 percent, whilethe private insurers registered a 4.52 percent decline in its premium income. Life InsuranceCorporation (LIC), a fully state owned insurance company recorded a 0.29 percent decline inits premium underwritten. First year premium registered a decline of 9.85 percent in 2011 -2012against of 15.02 percent growth in 2010 - 2011.INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)ISSN 0976-6502 (Print)ISSN 0976-6510 (Online)Volume 4, Issue 3, (May - June 2013), pp. 105-110© IAEME: www.iaeme.com/ijm.aspJournal Impact Factor (2013): 6.9071 (Calculated by GISI)www.jifactor.comIJM© I A E M E
  • 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)106AVIVA INDIAAviva India is a joint venture between one of the country’s oldest and largest groups,Dabur, and Aviva Group, one of the UKs largest insurance groups, whose association withIndia dates back to 1834. a wide distribution network of 134 branches spreading across nearly1,000 towns and cities, we operate in partnership with the Dabur Group through our 26%interest in Aviva Life Insurance Company India Ltd.Aviva is the worlds sixth largestinsurance group based on gross worldwide premiums for 2010 year. Aviva’s principalbusiness activities are long-term savings, fund management and general insurance, withworldwide total sales* of £40.6 billion and operating profits of at £2.5 billion at 31December, 2011. With a history dating back to 1696, Aviva Group has a 43 million customerbase worldwide Rs 2004 crores.PRODUCTSAVIVA INDIA is offering products under two categories which are listed below, IndividualPlans:1. Child, 2. Savings, 3. Retirement, 4. Protection, 5. Health, 6. Rural.Group Plans:1. Term 2. EDLI 3. Gratuity, 4. Savings, 5. Credit Protection Plans.EXISTING CUSTOMER RELATIONSHIP MANAGEMENTThe researcher observed that every 50 to 60 customers have been provided withFINANCIAL PLANNING MANAGER, who takes care of the customers queries and assistthem in 24/7.Apart from this, these FPM are updating the customers fund status eitherthrough mail or phone in a weekly basis and all the customers are updated with the NAV (Netasset Value) of their funds through sms in a daily basis. This FPM greets the customers onhis/her special occasions with the help of database management system. Apart from FPMSales manager is there to monitor all these activities.(Courtesy: Sales Manager, AVIVA INDIA – Madurai Branch).OBJECTIVES1. To examine how the demographic profile (age, gender, and income) affects service leveltowards AI?2. To examine the relationship between the customer types (NRI customer, RI customer) andthe service satisfaction level?3. To examine the relationship between the customer groups (New to Company, Existing)and the brand loyalty?
  • 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)107HYPOTHESISHo1: There is no significant difference between the age group and service level.Ho2: There is no significant difference between the genders and the service level.Ho3: There is no significant difference between the income level and the service level.Ho4: There is no significant relationship between the NRI customers and the servicesatisfaction level.Ho5: There is no significant relationship between the RI customers and the servicesatisfaction level.Ho6: There is no significant relationship between the NTC and brand loyalty.Ho7: There is no significant relationship between the existing customers and the brandloyalty.LIMITATIONS1. Due to the internal privacy policy of Aviva life India, researcher was allowed to survey amaximum of 100 customers.RESEARCH METHODOLOGYA study has been conducted in the Madurai Branch of "AVIVA INDIA".A survey wasconducted to identify the Customer service level and the Brand loyalty towards the AVIVAINDIA - Madurai Branch Customers.The sample size of the study was 100 and confidentiality was assured to therespondents. The respondents were drawn from different age group, education level, differentincome and different occupation group. A questionnaire was used to the collect the data. Thequestionnaire was designed in order to collect the information about the service level and thebrand loyalty among the customers. The questionnaire consisted of open ended and closeended questions.NRI customers wee contacted through mail and RI customers were contactedin person.The analysis was done using descriptive statistics such as frequency, Mean, standarddeviation and percentage. Differences between the independent variables such as age,gender,, income level, and the customer service level was assessed through ANOVA test therelationship between the independent variables like customer types and customer groups wasassessed through Pearson Coefficient Correlation method.”Statistical Package for SocialSciences” (SPSS for windows Version 17) was used to analyze the data.
  • 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)108Findings of Research1. To examine how the demographic profile (age, gender, and income) affects service leveltowards ALI?A. To examine the difference between the age group and service level?Ho1: There is no significant difference between the age group and the service level.. In orderto find the difference, ANOVA test was used. The result showed that (F =0.362, p>0.05),there is a significant difference is shown between the age group and the preference towardsthe company. It is evident that the age groups are heavily influenced by the service level.Hence the Ho1 is rejected.B. To examine the difference between the genders and the service level?Ho2: There is no significant difference between the genders and the service level. In order tofind the difference, ANOVA test was used. The result showed that (F= 1.385, p<0.05), thereis no significant difference between the gender towards the service level. It is evident that thegender group is not influenced by the service level. Hence Ho2 cannot be rejected.C. To find the difference between the occupation group and the service level?Ho3: There is no significant difference between the occupation group and the service level.In order to find the difference, ANOVA test was used, the result showed that (F = 0.450,p>0.05), there is a significant difference between the occupation group and service level. It isevident that the occupation group is influence by the service level. Hence Ho3 is rejected.2. To examine the relationship between the customer types (NRI customer, RI customer) andthe service satisfaction level?A. To find the relationship between the NRI customers and the service satisfaction level?Ho4: There is no significant relationship between the NRI customers and the servicesatisfaction level..In order to find the difference Pearson correlation test was used, the resultshowed that (r = 0.210,p>0.05),there is no significant relationship between the NRIcustomers and the service satisfaction level. It is evident that the service satisfaction level isnot affected the NRI customers, hence Ho4 cannot be rejected.B. To find the relationship between the Resident customers and service satisfaction level?Ho5: There is no significant relationship between the RI customers and the servicesatisfaction level. In order to find the difference, Pearson correlation test was used, the resultshowed that (r = 0.019, p>0.05), there is no significant relationship between the residentcustomers and the service satisfaction level. It is evident that service satisfaction level is notaffected by the resident Indian customers, hence Ho5 cannot be rejected.
  • 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)1093. To examine the relationship between the customer groups (New to Company, Existing)and the brand loyalty?A. To examine the relationship between the NTC and the brand loyalty?Ho6: There is no significant relationship between the NTC and brand loyalty. In order to findthe difference, Pearson correlation test was used, the result showed that (r = 0.015, p>0.05),there is no significant relationship between the New to company customers (NTC) and thebrand loyalty. It is evident that the brand loyalty is not affected by the New to Company(NTC) customers, hence Ho6 cannot be rejected.B. There is no significant relationship between the existing customers and the brand loyalty.Ho7: There is no significant relationship between the existing customers and the brandloyalty. In order to find the difference, Pearson correlation test was used, the result showedthat (r = 0.025, p>0.05), there is no significant relationship between the existing customersand the brand loyalty. It is evident that the brand loyalty is not affected by the Existingcustomers, hence Ho7 cannot be rejected.CONCLUSIONTwo out of six Hypotheses were rejected by using statistical analysis. The firstobjective is to examine how the demographic profile (age, gender, and income) affectsservice level towards ALI.The research shows that, there is a significant difference is shownbetween the age group and the preference towards the company (F =0.362, p>0.05), Hence itis rejected. The research points out that there is no significant difference between the gendertowards the service level (F= 1.385, p<0.05), Hence it cannot be rejected. The research alsoshows that there is a significant difference between the occupation group and service level (F= 0.450, p>0.05), Hence it is rejected.The second objective is to examine the relationship between the customer types (NRIcustomer, RI customer) and the service satisfaction level. According to the research, there isno significant relationship between the NRI customers and the service satisfaction level, (r =0.210,p>0.05), hence it cannot be rejected. The research points out that there is no significantrelationship between the resident customers and the service satisfaction level (r = 0.019,p>0.05), hence it cannot be rejected.The third objective is to examine the relationship between the customer groups (Newto Company, Existing) and the brand loyalty. The survey result shows that there is nosignificant relationship between the resident customers and the service satisfaction level(r =0.019, p>0.05), hence it cannot be rejected. The result also points out that there is nosignificant relationship between the existing customers and the brand loyalty (r = 0.025,p>0.05), hence it cannot be rejected.The survey result showed that most of the customers irrespective of the gender andage group prefered the ALI because of their service followed by brand name and safety.Thesurvey result showed that most of the Higer graduate and vocational level customersrewarded the quality of FPM in excellent level so most of the customers became the loyalcustomers even customers were ready to refer the Brand because of the service level. ALIwas using the operational CRM and the Colloborative CRM in an efficient and effectivemanner to maintain the high level of brand loyalty and to gain high competitiveadvantage.This might be the one of the way to get succeed in the life insurance sector.
  • 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -6510(Online), Volume 4, Issue 3, May- June (2013)110REFERENCES1. India insurance report 2013...www.irda.org.2. www.freshpress.in.market share of India insurance sector.3. IBEF (India Brand Equity Foundation) - www.ibef.org/industry/insurance report.4. Dr, Joshi.c.j.Text Book of insurance. Himalaya Publishing House.5. Jha.S.M., Service Marketing, Himalaya Publishing House.6.http://articles.timesofindia.indiatimes.com/2013-02-27/india-business/37330453_1_insurers-customer-experience-customer-surveys.7. www.avivaindia.com/aboutus.html8.This time its personal: from consume to co-creator: report: www.ernst&young.com.9.http://insuranceresearchers.com/service-quality-and-customer-satisfaction-in-indian-insurance-sector/10. Kotler and Keller, Marketing Management 12 e, Prentice- Hall of India Private limitedpublishing House, pg no 139-160.11.http://www.deloitte.com/assets/DcomIndia/Local%20Assets/Documents/Indian%20Insurance%20Sector.12. Dr. N. Kannan, “A Study on the Growth of Indian Insurance Sector”, InternationalJournal of Management (IJM), Volume 1, Issue 1, 2010, pp. 17 - 32, ISSN Print: 0976-6502,ISSN Online: 0976-6510.12. Arul Minash Rajkumar.P and Dr. N. Kannan, “Level of Awareness of Private Players inthe Insurance Industry – A Study with Special Reference to Chennai City”, InternationalJournal of Management (IJM), Volume 2, Issue 2, 2011, pp. 113 - 124, ISSN Print:0976-6502, ISSN Online: 0976-6510.