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A SUMMER TRAINING PROJECT REPORT

ON

Bajaj Allianz Life Insurance Company Ltd

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

MASTERS IN BUSINESS ADTMINISTRATION DEGREE OF KURUKSHETRA

UNIVERSITY

Supervised By: Submitted By:

MR. CHANKEL PASRICHA RINKI

R. P. INDERAPRASTHA INSTITUTE OF TECHNOLOGY


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ACKNOWLEDGEMENT

A successful project is the result of team work and co-ordination that includes not only the

group of developers who put forth the ideas, logic and efforts but also guide them. So at the

completion of the project, we feed obliged to extent our gratitude towards all those made

valuable contribution throughout our training period.

Firstly I would like to thank the people who helped me throughout my study during the summer

training period of two months.

This project wouldnt have been a success without the help of Bajaj Allianz Life Insurance

Company Ltd. which provided me the ground to come and visit the office on regular basis giving

a valuable exposure to the corporate world.

I would also like to thank to my guide Mr. MOHAN SINGH who proved to be of great help

throughout my training in the field of Consumer behavior, my guide who gave me a valuable

insight not only on the topic of my training but in various other aspects related to the consumer

behavior.

Finally, its my pleasure to acknowledge the kind help and cooperation of all the respondents of

Merrut with whom I met throughout the duration of this project.

At last, but not the least, I am very thankful to Mgt Dept., my faculty guide for helping me at

every step in completing my project report.


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IN-COMPANY SUPERVISOR CERTIFICATE

This is to be certified to the best of my knowledge that the project report Consumer Behavior

is the original work done by RINKIunder my guidance.

Mr. MOHAN SINGH


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Table of contents

Chapter Contents Page

1 Preface 05-7

2 Company Introduction 8-12

3 Bajaj Bllianz Life Insurance Company Ltd.Profile

12-28

4 Consumer Behavior 29-35

5 Research Methodology 36-39

6 Objectives Of The Research 40-42

7 Data Analyses And Interpretation 43-49

8 Findings 50-50

9 Limitations 51-51

10 Suggestions 52

11 Conclusion 53

12 Bibliography 54


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PREFACE

In todays corporate and competitive world, I find that Bajaj Allianz Life Insurance Company

Limited has shown good growth and potential as compared to the other company. Bajaj Allianz

Life Insurance Company Limited has given me the opportunity to work and get experience in a

highly competitive and enhancing sector.

The success story of good market share of different companies depends upon the availability of

the product and services near to the customer.A brief history of the Insurance sector The business of lifeinsurance in India in its existing form started in India in the year:

With the establishment of the Oriental Life Insurance Company inCalcutta. Some of the important milestones in

the life insurance businessin India are: 1912

The Indian Life Assurance Companies Act enacted as the first statute toregulate the life insurance business.1928

The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both

life and non-life insurance businesses1938

Earlier legislation consolidated and amended to by the Insurance Act withthe objective of protecting the interests of

the insuring public1956


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By the mid-1950s, there were around 170 insurance companies in thecountry's life insurance scene. However, in

the absence of regulatorysystems, scams and irregularities were almost a way of life at most of these companiesAs

a result, the government decided nationalizes the life assurance business in India. TheLife

Insurance Corporation of India was set up in 1956 to take over around 250

lifecompanies. 245 Indian and foreign insurers and provident societies taken over

by th ecentral government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act.For years

thereafter, insurance remained a monopoly of the public sector. It was only after seven years of

deliberation and debate - after the RN Malhotra Committee report of 1994 became the first

serious document calling for the re-opening up of the insurance sector to private players -- that

the sector was finally opened up to private players in 2001.

The Insurance Regulatory & Development Authority, an autonomous insurance regulator set up

in 2000, has extensive powers to oversee the insurance business and regulate in amanner that will

safeguard the interests of the insured.


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INSURANCE SECTOR REFORMS

Due to immense growth in the insurance sectors the regulations

were introduced. In1993,Malhotra Committee headed by former Finance Secretary and RBI

Governor wasformed to evaluate the Indian insurance industry and give its recommendations.

After thiscommittee the regulatory body for insurance sector was formed with the name of IRDA.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY(IRDA)

IRDA has been formed as an authority to protect the interests of insurance policies,

to regu l a t e , p r omot e and ens ur e o r de r l y g r owt h o f i n s u r ance I ndus t r y and f

o r ma t t e


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INSURANCINTRODUCTION:

Man is a social aim

all. He contributes to society's well being and gets livelihood and protection from the

society in which he lives. Man always seek protection from risks which infect compel him to live

in groups. He remained exposed to various types of risks like death, accidents, loss of health,

wealth and property from wild animals, reptiles, floods, fire, earthquakes and other natural

calamities.

Insurance in some form or other has been on answer to his problem of security. Insurance is a

process in which losses of a few are stared by many who are equally exposed to same risk. One

or a few of the whole lot unfortunately suffer the loss and thereby all others share the loss.

Therefore, an individuals share of contribution towards the cost of meeting such loss is small. As

such insurance is a co-operative venture.


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MEANING OF INSURANCE:

Insurance is such a method which provides security and protection against financial loss upto

same limits. It is a means of shifting the risks to insure in consideration of a nominal cost called

premium.

In other words, we can say that insurance is a contract where one party takes the responsibilities

of risks of the party in exchange of some fixed amount. As per this contract the first party

(insurer) which is taking the responsibility of risk of another party (insured) promises to pay a

fixed amount of money to second party either at the end of fixed period or at the happening of

same events.

BASIC TERMINOLOGY OF INSURANCE

1. Insurer: - One who does the Insurance i.e. who takes the responsibility of risk in future.

2. Insured: One whose insurance is done i.e., whose responsibility of risk is taken by

insurer.

3. Policy: - The printed legal document stating the term of insurance contract that is issued

to the policy holder by the company.

4. Premium:- The sum paid by a policyholder to keep an insurance policy in force. It is

amount paid to secure an insurance policy.

5. Sum Assured: - Sum assured is the amount that an issuer agrees to pay on the occurrence

of an events.


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INSURANCE INDUSTRY IN INDIA

India is marketing ahead to more prosperous future. The economy is on a high growth path,

domestic saving are growing, exports have risen and inflation has stabilized. Infrastructure

rector, which even today is woefully inadequate to meet the expected increased industrial

activities, has been accorded top priority by the government . All this should reflect in a growth

rate of 7% to 8% for the next 3-4 years. With this scenario of high economic growth further

reforms in the financial rector are in the common minimum program of the government.

The insurance industry, which still remains a state monopoly, is therefore engaging

serious attention of the Govt. De-regulation of insurance sector has already been recommended

and has generally been welcomed by a dominant body of industry and populace though the

employees unions and same others remain opposed to the idea of introducing competition in the

insurance sector.

India is regarded as an under-insured country with insurance penetration at a very low level of

0.6% of GDP. Insurance, as a rule, has always been given very low priority by corporate India, It

is compulsory, and then only by big industrial houses. Without exception it is always inadequate

to meet the meets of the corporate sector.


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OBJECTIVE/ PURPOSE/ NEED

1. It provides Security :

The first objective of insurance is to provide the security to the persons against the risks of

uncertain events. Under this the insurance company guarantees the insured person to

compensate the event of loss in consideration of premium paid by insured. Thus the

insurance provides the feeling of security against the evil of uncertain events i.e. risk.

2. It provides capital:

It provides capital, a score source of production to the industry in various forms. The amount

received on account of premium by various insurance companies is made available for

the industrial development of the country in various financing forms, such as, by

providing long term loons to companies. We can say that insurance makes the company.

3. It increase efficiency :

Insurance is increase the efficiency in business by reducing the risks or fear of losses. Mgt is

relieved from the various risks involved in uncertainties and becomes able to give due

attention to the other functions which effect the total efficiency of the organisation, such

as, labour force material mgt. marketing etc. This insured person can work better for

profit maximisation.

4. It distributes Risk:

The objective of insurance is based on the low of co-operation. Insurance has describe insurance

as a plan by which large number of people associate themselves and transfer to the

shoulders of all risks that attach to individual. So the distribution the losses of any

uncertain events among a large number of persons covered under the insurance.

5. It Provides Certainty

The main purpose of insurance is to reduce the risk of events. Actually insurance means to

indemnify or compensate the losses caused by the uncertain events. The insured converts

his uncertainties into certainties by paying premium to the insurer.


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6. It provides fund to Invest

Insurance companies collects the funds by way of premium and employ or invest it in the

country life insurance corporation along with other insurance companies provides the

fund to various industrial and business concerns.

7. Encourages Savings

Insurance is considered to be a better source of encouraging the saving. The insurer has to pay a

fixed premium regularly and compulsorily. As such forced saving cards the unnecessary

expenses of the individuals.

8. Expansion of Foreign Trade

Insurance provides security to the international traders, shipper and banking or financing

institutions which are main functionaries to foreign trade. Thus, insurance helps in the

expansion of foreign trade.

9. Self Confidence and Goodwill

Insurance by providing a feeling of security among the insured, also creates self-confidence in

them. Thus, insurance not only provides protection against risks. But also provides

capital to the insured which becomes a source of financial stability and strength. As such,

insurance increases self -confidence reputation and goodwill of the insured.

10. Social Security

Insurance provides on instrumental force to fight against evils of poverty, unemployment,

disease, old age, fateful accident of a person and other calamities of nature. Insurance

helps in a greater way by establishing or devising various types of insurance in our

country, like. Employee's state insurance Act, Provident Fund Act,1932, Workmen's

Compensation Act etc.


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BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD

A PROFILE

THE PARTNERSHIP:

With the establishment of the Oriental Life Insurance Company inCalcutta. Some of the important milestones in

the life insurance businessin India are: 1912

The Indian Life Assurance Companies Act enacted as the first statute toregulate the life insurance business.1928

The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both

life and non-life insurance businesses1938

Earlier legislation consolidated and amended to by the Insurance Act withthe objective of protecting the interests of

the insuring public1956

By the mid-1950s, there were around 170 insurance companies in thecountry's life insurance scene. However, in

the absence of regulatorysystems, scams and irregularities were almost a way of life at most of these companiesAs

a result, the government decided nationalizes the life assurance business in India. TheLife

Insurance Corporation of India was set up in 1956 to take over around 250

lifecompanies. 245 Indian and foreign insurers and provident societies taken over

by th ecentral government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act.For years

thereafter, insurance remained a monopoly of the public sector. It was only after seven years of

deliberation and debate - after the RN Malhotra Committee report of 1994 became the first

serious document calling for the re-opening up of the insurance sector to private players -- that

the sector was finally opened up to private players in.

The Insurance Regulatory & Development Authority, an autonomous insurance regulator set up

1in 2000, has extensive powers to oversee the insurance business and regulate in amanner that will

safeguard the interests of the insured.

1Summer training project report


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INSURANCE SECTOR REFORMSZZ

Due to immense growth in the insurance sectors the regulations

were introduced. In1993,Malhotra Committee headed by former Finance Sectors

If one invests in a unit-linked pension plan early on , say when one is 25, one canafford to take the risk associated

with equities , at least in the plans initial stages. However,as one approaches retirement the quantum of returns

should be subordinated to capital preservation. At this stage , investing in plan that has an equity tilt

may not be a good idea.Considering that unit-linked plans are relatively new launches, their short historydoes

not permit an assessment of how they will perform in different phases of the stock market. Even if one views

insurance as a long term commitment, investments based on performance over such a short time span may

not be appropriate.


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Allianz Bajaj launches its first unit linked policy

.Allianz Bajaj Life Insurance Company has launched Unit Gain , the companysfirst unit linked policy. Unit Gain

allows customers to combine the benefits of lifeinsurance with higher investment returns from equity and debt

markets.Unit Gain was launched with a choice of four funds to the customer- equity,debt, balanced and cash

funds. The cash funds comes with the guarantee that the value of units in the fund will not go down.Unit Gain is

one of the most flexible unit linked plans in the market, and allows thecustomer to change the sum assured during

the term of the policy to match their changinglife insurance requirements. Also the plan offers a premium holiday

feature, where the policy is kept in-force even when premiums are not paid as long as there are

enough unitsto cover charges.The policy provides customers flexibility in paying additional premium

throughsingle premium top-ups, as well as in increasing the level of regular premium in later years

(along with increase in income). In addition, the facility of cash withdrawals allows theBajaj Allianz ULIPS

products.


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Bajaj AllianzULIPSproducts:

Unit Gain Regular Premium:

The Bajaj Allianz unit comes with a host of features to allow you to have the best of all wordsprotection and

investment with flexibility like never before.

Some of the features of this plan are:

Guaranteed death benefits.

Choice of 6 investment funds with flexible investment management you can changefunds at any time.

Attractive investment alternative to fixed investment securities.

Provision for full/partial withdrawal any time after 3 full years premiums are paid.

Unmatched flexibilityto match tour charging needs.

How does the plan work:

The premiums paid are invested in fund/funds of your choice (depending on theallocation rate) &unit are allocated

depending on the price of units for the fund/funds.


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OUR MISSION:

We aim to be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market, ratherit is a combination of several things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share


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OUR VALUES:

Security: Providing long term financial security to our policy holders will be our

constant endeavor. We will be do this by offering life insurance and pension products.

Trust: We appreciate the trust placed by our policy holders in us. Hence, we will aim to

manage their investments very carefully and live up to this trust.

Innovation: Recognizing the different needs of our customers, we will be offering a

range of innovative products to meet these needs. Our mission is to be the best new life

insurance company in India and these are the values that will guide us in this.


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PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD

Insurance solutions for individuals

offers a range of innovative, customer- centric products that meet the needs pf every life

stage. Its ten products can be enhanced with upto four riders, to create customized solutions for

each policyholder. Each of us leads a unique life and so has unique needs. Bajaj Allianz Life

Insurance Company Ltdoffers a range of products and invites you to choose the one that suits

you best.

Plan Benefits

Savings Plans

Endowment Assurance Plan Life Insurance with Savings

Unit Linked Endowment Plan Life Insurance & Savings with choice ofinvestment funds

Childrens Plan Financial Security for your child

Unit Linked Young Star PlanFinancial security for your child with choice of

investment funds

Money Back Plan Life Insurance with Savings

Investment Plans

Single Premium Whole Of Life Plan Investment with Life Insurance

Protection Plans

Term Assurance Plan Life Insurance at an affordable price

Loan Cover Term Assurance Plan Life Insurance customised for home loans

Retirement Plans

Personal Pension Plan Savings for retirement

Unit Linked Pension PlanRetirement Savings with a choice of investment

funds


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SAVING PLANS

Endowment Assurance Plan

It is a participating (with profits) insurance plan that offers the following features:

Provides financial support to the family by way of a lump sum payment in case of theunfortunate death of the life assured within the term of the policy.

Provides a lump sum payment to the life assured on survival up to maturity.

The lump sum mentioned is the basic sum assured plus any bonus additions.

Unit Linked Endowment Assurance

The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on

maturity or on earlier death. The Unit Linked Endowment Plan also gives the option of

additional protection against the six common critical illnesses, as well as additional protection if

death is as the result of an accident.

Your premiums are invested in units of the investment fund of your choice, based on the

prevailing unit price. On maturity you receive the value of your units. On death (or critical

illness, if chosen) you receive the greater of the value of your units and your selected basic sum

assured.


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Unit Linked Endowment Assurance

The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on

maturity or on earlier death. The Unit Linked Endowment Plan also gives the option of

additional protection against the six common critical illnesses, as well as additional protection if

death is as the result of an accident.

Your premiums are invested in units of the investment fund of your choice, based on the

prevailing unit price. On maturity you receive the value of your units. On death (or critical

illness, if chosen) you receive the greater of the value of your units and your selected basic sum

assured.


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Money Back Plan

It is a participating (with profits) insurance plan that offers the following features:

Payment of cash lumpsum, each of which is a proportion of the basic sum assured, at 5-yearintervals during the term of the policy. (Please refer to the table given below.)

On survival up to maturity, a payment equal to the basic sum assured plus any bonusadditions less the cash lumpsums paid earlier is provided.

In case of the unfortunate death of the life assured within the term of the policy, the basicsum assured plus any bonus additions is provided. This is over and above the earlier payouts.


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F lexibili ty of term:

Even after choosing your policy, you can decide on the policy term. For 4 weeks after any one of

the 10th, 15th, 20th and subsequent five-year anniversaries, you can choose to receive the sum

assured plus any attaching bonuses, in full. Once the money has been received, your policy will

cease.

Surrender value:

You can terminate the policy any time, after it has been in force for at least 6 months, and

receive a surrender value.

I n case of unfortunate death:

Your nominee gets the sum assured secured by your premium, plus any attaching bonuses.

No medical requir ements:

We do not require you to undergo any medical test for this plan.


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Purpose:

The policy is basically a savings contract, which is designed to provide an income for life from

retirement, with an option to take the lump sum elsewhere to buy the annuity, provided it is

permitted by the prevailing regulations.

Your commitment:

You agree to pay a single premium or level premiums with installments due every quarter, half-

year or year throughout the deferment period of the policy, after which you will start receiving

your pension.


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Risk factors:

If you cease to pay premiums we may pay a surrender value. This will be determined at our

discretion. If any of the information which you provide is incorrect, we reserve the right to vary

the benefits which may be payable and, further, if there has been non-disclosure of a material

fact then we may treat your Policy as void. We will not pay out if a claim arises from an

excluded cause of death. Future bonuses are not guaranteed.

They are dependent on our future experience. The principal elements of experience are our

investment performance and expenses.

Unit Linked Pension Plan

The unit linked pension plan is basically an insurance contract, which is designed to provide a

retirement income for life. Your premiums are invested in units of the investment fund of your

choice, based on the prevailing unit price. On vesting the value of your units will be used to buy

your retirement benefits.


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Consumers Behavior can be defined as

"The behavior that consumer display in searching for, punching, using, evaluating and disposing

of products &service that they expect will satisfy their needs.

Thus, the importance of consumer behaviour lies in the fact that behavior can be understand &

influenced to ensure a positive purchase decision. So, a round understanding of consumer

behaviour is essential to the long run success of any marketing program. In fact, it is seen as a

cornerstone of the marketing concept. That's why the marketing managers interest lies exactly to

ensure that his strategy result in purchase of the product.

Modeling Behavior

The study of consumer behavior is quite complex, because of the many variable involved and

their tendency to interact with and influence each other. So, the most relevant variables and their

influence can be shown by a diagram, which is made up of three major sections.

1. External environment variable influencing behavior.

2. Individual determinants of behavior.

3. The consumer's decision process.

1. External Variable:The external environment is made up various influences as culture, subculture, social

class, social group, family and personal influences.


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I) Culture:

The study of culture encompasses all aspect of a society such as its religion knowledge,

language, laws, customs, tradition, music, art, technology, work pattern, products etc. for

the purpose of CB culture can be defined as the sum total of learned beliefs, value &

custom that serve to guide and direct the consumer behavior of members of a particular

society. Thus, the concept of culture offers many general & specific insights into the

behavior of consumers. So, it is a starting point for the marketer who wishes to better

understand a market.

a) Formal learning:

In which parent an elders teach children the proper way to behave & this behavior

influence his attitude towards the products

b) Informal learning: In which learning takes place by imitating the behavior of the

parents, friends or by watching TV & film actors in action.

c) Technical Learning: In which instruction are given about the specify method by which certain

things have to be done such as painting, dancing etc.

II) Subculture:These groupspossesbeliefs, values and customs that set them apart from

other members of the same society or culture. So, there are subculture of students,

Professors, marketers, & other group. An individual may be member of more than one

subculture at the same time, and based upon it consumers behavior like product purchase

Patterns, Shopping behavior &: other Demographic & Psyographic characteristics may

differ. Thus, it .is imperative that marketers understand who constitutes the most relevant

subculture for their particular or service.


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III) Social Class Influences:Social class is defined as the division of members of a society

into a hierarchy of distinct status class, so that members of each class have relatively the

same status class, so that members of each class have relatively the same status &

members of all other classes have either more or status. In this complex society, in which

financial wealth dictates status, one's possessions become a substitute indicator of the

individual worth value, wealth& so forth. Members of specific social class differ in

terms of what they consider good taste. So, social class is also an important variable in

determining where a consumer shops. That's why marketers have always catered to give

them an edge, whether real or imagined, over their pears.

IV) Social Group Influences:It can be viewed as a collection of people who have a sense of

relatedness resulting from some form of interaction with one another. There are different

types of reference groups & each group has its own status, norms, role, socialization &

power.

Reference Groups:

It refers to group that serve as trams of reference for individual in their judgment, beliefs,

purpose & consumption behavior. These reference groups are highly relevant and potent

influence in consumers decision-making. To attract consumers a no of promotional

strategies are used & one of them is Reference group appeal. There are helpful in

increasing: brand awareness & serve to reduce perceived & guide the individual value &

behavior.


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V) Family:

The family is a major influence on the consumption behavior of its members; it is also the

prime target market for most product categories. Familiars can be defined as two or more

person related by blood, marriage or adoption that reside together. The basic function of a

family is the provision of economic & emotional support; childhood socialization &

suitable life style for its members of consumers related role of family members include

influences, gatekeeper, deciders, buyers, users, maintainers & disposers. Thus, the family

operates an economic unit, earning & spending money & the family functions directly in

the role of ultimate consumption. Each family member influences the purchase decision.

Family members have individual and collective consumption priorities. Thus, the

marketers need to understand the nature, the family's influence on its members & the way

in which the purchase decision are made by the members. The stages of a family's life

cycle also influence the consumer behavior.

VI) Personal factor/influence:

(a) Demographic factor & life cycle stage:The first factor influence a buyer's decision is

his age. There are certain physiological difference between men & women, which result

in there having different consumption needs.

The consumption behavior is also influenced by the specific stage of the family life cycle,

which are as follows-

Single stage (Young unmarried people living away from home)

Young newly married (no children)

Full nest I (Youngest child under 6)

Full nest II (Youngest child over 6)

Empty nest I; older (married couples, no children ;living at home, house hold head

still working)

Solitary Survivor - In (Labour Force)

Solitary Survivor: Retired.


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b) Education & Occupation:Education widens a person's horizon, refines his tastes and

makes his outlook more cosmopolitan. An educated person as compared to somebody

less educated is more likely to consume educational facilities, books, magazines and

other knowledge oriented products and services. The occupation also shapes the

consumption needs. Some people require specialized equipment for the purpose of their

job.

c) Income: Income here means the income available for spending (i.e. income after tax,

provident fund and other statuary deduction). The person's attitude towards spending

versus saving and his borrowings power are also important influencing factors.

d) Personality: Personality is defined as those inner psychological characteristics that both

determines and reflect how a person responses to his environmental stimuli. Personality

is enduring and ensures that a persons responses are consistent over time.

e) Life Style: Life styles are the pattern in which people live, as expressed by the manner, in

which they spend money and time on various activities and interests. It is a function of

opinion, social class, demographic factors and personality etc.

f) Other Influences:This is the general category encompassing influences on consumers.

The influence might be the effects of media i.e., whether consumer's behavior is more influenced

by print media or the electronic media. Other influences including physical surroundings, the

interpersonal setting, national events and other situational variables.


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2. Individual Determinants Of Behavior:

These variables influences how the consumer proceeds through a decision process

regarding products and services. The various individual determinants are:

a) Consumer needs and motivation: Consumer has different needs and attitudes towards

any good and services and they accept different goods or services with the expectation

that they will satisfy their needs. Motives are the internal factors that energize behavior

and provide guidance to direct the activated behavior.

Involvement describes the personal relevance or importance that consumer perceives in a

given purchase situation.

b) Perception:Perception can be defined as "how we see the world around us;" Perception

helps to explain the phenomenon of why different individual responds definitely to the

same stimulus under same conditions.

c) Learning and Memory: Learning can be viewed as very significant for marketer as it

implies that consumers can be made to learn the desired behavior through an interplay of

motives stimuli, cues, responses and reinforcements. Learning refers to the skill and

knowledge gained from part experience, which one tends to apply to evaluate future

decisions learning and memory processes can help to understand that war frequency is

needed to repeat, advertising messages, how visual symbols and other techniques can

facilitate consumers learning and memory regarding products and how consumer develop

habitual purchase pattern for some goods.

d) Beliefs and Attitudes: A belief is a descriptive thought that a person has about

something. The belief may be based on some real facts or it may merely be a notion or

opinion that the person has. Attitude is a person's enduring facing evaluation and

tendency towards a particular idea or object Attitudes strongly influence how consumers

will act and react to products and services and how they will respond to communication

that marketers develop to convince then to purchase their products.


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RESEARCH METHODOLOGY

Research

Research is an original contribution to the existing stock of knowledge making for the

advancement. According to Clifford Woody Research comprises defining and redefining

problems, formulating hypothesis or suggested solution, collection, organizing and evaluating

data, making deductions and reaching conclusion and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis.

Research in common parlance refers to search for knowledge. One can also define research as a

scientific and systematic search for pertinent information on a specific topic. In fact, research is

an art of scientific investigation. The advanced learner dictionary of current English lays down

the meaning of research as a careful investigation or inquiry especially through search for the

new facts in any branch of knowledge. Some people consider research as a movement, a

movement from unknown to known. It is actually a voyage of discovery. Inquisitiveness is the

mother of all knowledge of whatever unknown, can be termed as research.


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Research methodology is a way to systematically solve the research problem. This chapter

describes the research methodology adopted in conduct of this study. It may be understood as a

science of studying how research is done scientifically. In it we study the various steps that are

generally adopted by a researcher in studying his research problem along with the logic behind

them. It is necessary for the research to know not only the research methods/ techniques, but also

the methodology.

Every research project conducted systematically has a specified framework for collection and

analysis of data in a manner that aims at combining this frame work is called research designed

involves five steps :

1. Deciding the approach to be used in the design.2. Deciding the data needed.3. Identifying probable sources of data.4. Deciding how the data should be gathered5. Anticipating the results, their interpretation and presentation.


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Research Design

The heart of research is research design. It is overall plans that specify information needed and

specifies how investigation to obtain it will conduct.

A complete research deign would include the following elements:

(1) Statement of the evidence necessary to solve a problem and the basic schemewhereby the solutions will become revealed or validated.

(2) Specification of the evidence-where and how it will obtain.(3) Anticipation of how the data will be analyzed to produced answers to the

problem.

(4) Guidelines for calculation and approval of feasibility and cost of the project.

Research designs are often classified by the purpose of research and data collection efforts.

The usual classification is exploratory, descriptive and casual.

Exploratory research aims at defining the problem, including the identification of the relevant

variables and of possible alternative solutions. Such study may also be designed to develop

the specific research questions that need to be explored.

Descriptive research is the most common design. The purpose is to describing the

phenomena, to describe the consequences of possible alternative course of action, to describe

a potential market in terms of present or future customer attitude of other characteristics and

to describe a product image. For the purpose of my survey, I decided to follow the conclusive

research design under this I selected the descriptive design.

Casual study, aims at predicting or for suggesting causes. Such studies require procedures

that will not only reduce bias and reliability, but will permit drawing inferences about

causality. Such study often takes the form of an experiment.


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Data Collection

The investigator must identify the source from which the different items of information are

obtainable and select those that will use. He may use primary data, secondary or both.

Primary data are data freshly gathered for a specific purpose or for a specific research project

at hand, directly e.g. -through questionnaire and interviews. When the needed data do not

exist or are dated, inaccurate, incomplete or unreliable, the researcher will have to collect

primary data collection.

Secondary data are generally published sources, which have been collected originally for

some other purpose. They are not gathered specifically to achieve the objectives of particular

project at hand, but are already assembled. Such sources are internal company records,

government publication, reports and journals, trade professional and business firms records,

university research organization.

In my project I used both primary data as well as secondary data.


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Research Instrument

The research instrument used by me in conduct of my survey is questionnaire. The

questionnaire consisted of a set of questions concerning to the subject. In preparing

questionnaire, I carefully choose the questions. The information received from respondents is

not factually corrected though it may appear to be so. In addition, sometimes information

belongs to the secondary namely Belief. The information received from respondent can be a

belief and feeling. It involves depth interviewing.

The information is often sought in opinion of respondents. He is specifically asked what view

he holds on a particular companys product and he is free to opine. Similarly, information on

the respondents attitude on one or more subjects or things is sought. Finally the researcher at

times wants to know the reason for a particular choice or action of respondent.

The questionnaire consists of a number of questions pertaining to the subject. In preparing

questionnaire, I carefully choose questions, wording and sequence in close-ended questions

included in this questionnaire. An open-ended question allowed the respondents to answer in

their own words and reveals more about how people think. These served a useful hand in

explanatory stage of research. The close-ended questions specify all possible answers and

provide answers that are easier to interpret and tabulate. Dichotomous questionnaire in my

questionnaire offers choices in my questions, I offered my respondents a numbers of

specified alternative form, which they were asked to choose one, or more through specified

information question. The language used for framing question is simple and easy to

understand.

For my survey I used personal interview of respondents by asking them a list of questions

from questionnaire prepared by me for collecting the desired information and having being

fulfilling the questionnaire these and then according to information given by each person.


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Sample Size

A sample size is a definite plan for obtaining a sample from a given population. Sample size

may as well lay down the number of item to be included in the sample i.e. Size of the sample.

Sample size must be reliable and appropriate for the study.

During my project I got information from consumers of Bajaj Allianz Life Insurance

Company Ltd Co. of various age categories and related to different class of society. I selected

50 customers to know their satisfaction and asked some questions from them.


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OBJECTIVES OF THE STUDY

1 To know about different companies from which the respondents have taken theirinsurance.

2 To know about the parameters who are deciding the consumer behaviour regardinginsurance company

3 To know about the level of awareness of consumers regarding insurance companies.4 To know the level of satisfaction of respondents of different insurance companies.5 To know about the media of advertising who play vital role in increasing the awareness

about the insurance among consumers.


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2. From where you have taken insurance policy?

Companies No. of

Respondents

%age of

Respondents

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD 6 12

LIC 32 64

ICICI 8 16

The above chart depicts that under my study at Marrut 64% respondents have their insurance

policies with LIC while ICICI and BAJAJ ALLIANZ have 16% and 12% respectively. The rest

8% respondents have their policies with some other companies. This clearly shows that LIC

have a major share in the insurance market at Merrut.


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3. Awareness about the insurance company available in the market?

Level of

Awareness

No. of Respondents % of Respondents

Fully aware 8 16

Less Aware 26 52

Unaware 16 32

0

10

20

30

40

50

60

No. of

Respondents

% of

Respondents

Fully aware

Less Aware

Unaware

The above chart represents that maximum number (52%) of respondents are less aware about the

insurance company available in the market. Only 16% are fully aware about these. It is quite

interesting that 32% of respondents are totally unaware about the insurance companies.


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Q5. Which media of advertisement is playing a vital role in increasing the awareness

about the insurance?

Advertisement Media No. of Respondents

T.V. 14

Radio 2

Newspapers 9

Magazines 7

Signboards 11

Others 7

14

2

9

7

11

7

0

2

4

6

8

10

12

14

No.ofRespondents

T.V.

Radio

Newspaper

Magazine

Signboard

Others

Advt. Media

It is concluded from the above chart that T.V. plays a vital role in increasing the awareness about

the insurance among the people. It is successive with Signboard, Newspapers, Magazines. Other

medias have also 14% share in increasing awareness, while due to boom in electronics &

communication, radio have now only 4% role to make aware the people about insurance.


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Q6. Are you satisfied with that company from which you are getting your insurance

policy?

Satisfaction

Level

No. of Respondents %age of

Respondents

Fully satisfied 18 36

Moderate satisfied 17 34

Less satisfied 9 18

Not satisfied 6 12

Less Satisfied

18%

Not satisfied

12%

Moderate Satisfied

34%

Fully satisfied

36%

The above chart denotes that a large number of respondents are fully satisfied or moderate

satisfied (36% & 34% respectively) with their insurance companies. 18% of respondents are less

satisfied with their insurance companies. However 12% of respondents have some complaints

and they are not satisfied with their respective insurance companies.


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Q7. If any company gives you the exact solution for the problem will you go for that

company?

Response No. of Respondents

Yes 34

No 16

34

16

0

5

10

15

20

25

30

35

No.ofRespondents

Yes No

Responses

The above chart clearly shows that 34 respondents out of 50 are ready to with some other

company if that particular insurance company provides them exact solution of their problem.

While only 16 respondents will struck with their respective company.


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FINDINGS

During my research work, I find that ;

1 72% respondents have taken any Insurance Policy while the rest 28% have not anyinsurance policy.

2 64% respondents have their insurance policies with LIC. This shows that LIC have amajor share in the insurance market specially at Merrut.

3 Maximum number (52%) of respondents are less aware about the insurance companyavailable in the market. Only 16% are fully aware about these. It is quite interesting

that 32% of respondents are totally unaware about the insurance companies.

4 Maximum number of respondents have 'Brand Name' as a parameter for deciding aninsurance company, while Goodwill and Advt. factors are the parameters of 14 and 7

respondents respectively.

5 T.V. plays a vital role in increasing the awareness about the insurance among thepeople. It is successive with Signboard, Newspapers, Magazines. Other medias have

also 14% share in increasing awareness.

6 A large number of respondents are fully satisfied or moderate satisfied (36% & 34%respectively) with their insurance companies. 18% of respondents are less satisfied

with their insurance companies. However 12% of respondents have some complaints

and they are not satisfied with their respective insurance companies.


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SUGGESTIONS

From my study, I find out that 28% of my respondents have not any insurance policy. This

means that there is a great need to motivate and educate people regarding the insurance

schemes. For this, I have some of the suggestions such as:

1 Advertising through media like T.V., Newspaper, Radio, Magazines should beincreased because media plays a vital role to motivate people regarding their

insurance.

2 Door to Door campaigning and Insurance as a Topic of study in school / colleges canalso educate people.

3 Transparency in the various insurance schemes may lead to boost in customerstowards insurance.

4 Reducing in paper formalities may also share its contribution in enhancing theinsurance schemes.

5 Flexibility between various insurance schemes may be a good source to motivateconsumers.


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LIMITATIONS OF STUDY

Though I done my study with utmost care, still some limitations are bound to take place. These

are

1 I had little time to do my study. Any new change can take place after my study2 I had limited resources for my study.3 I had a selected sample of people not the whole population to investigate.4 Personal bias from the part of respondents can take place.


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CONCLUSION

To conclude my study I observed that a great number of population is still without insurance.

People are less aware of insurance. More efforts are required to educate them. Although some

respondents have insurance policies, but still they are not aware of various insurance schemes.

Brand name , Goodwill and advertisement factors are some of the parameters of deciding an

insurance company that is the reason why LIC have a major share in the insurance market at

Merrut. To increase their business private insurance companies should have to make some

positive initiatives. In this way, they can promote some new insurance policies. Overall we can

say that still the consumer of various insurance companies are satisfied or moderately satisfied

with their respective insurance companies.


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BIBLIOGRAPHY

Books Referred :

1 Research Methodology by C.R. Kothari.2 Book on Research Methodology by D.D.Sharma

Portals / Websites:

1 www.blic.com2 www.indiainfoline.com3 www.google.com


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