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SUPERVISOR
SUBMITTED BY
VEDIKA SRIVASTAVA
Assist. Professor
Roll No.:1301001
PREFACE
Theoretical knowledge is not sufficient to the professional field. So to overcome the
limitation of theoretical knowledge, we PGDM students have to work on research project.
The research project report gives us real picture of professional setup of organizational
behavior.
It also gives opportunity to PGDM student to use their theoretical knowledge and check
their relevance gain.
The confidence for all this required putting conceptual, analytical and creative skills to
test for all this, I have done my research project on Consumer behavior &
customer satisfaction.
All these inputs will help us when we embark upon a career and a manager in a similar
organization.
VEDIKA SRIVASTAVA
ACKNOWLEDGEMENT
My first regards are to God, the Almighty, who has enabled me to move on this
righteous path. I am extremely grateful and indebted to Mr. ABHAY SHARMA for
pursuing me to under go this research under his proper guidance, giving me
invaluable experiences. His constant encouragement and inspirations have been
instrumental for me the completion of this research.
I am also thankful to the officers, employees and customers of (ICICI Prudential Life
Insurance Company Ltd.) who helped me in very much in gathering informations related
to my research.
I do not have words to express my respect to Our Honble Director Col. Dr. Naresh
Kumar Goyal, HOD Dr. Rahul Bhardwaj, my parents Mrs. . & Mr.
. , my brother/ Sister .. & my wife .
who helped me a lot during this research work.
VEDIKA SRIVASTAVA
DECLARATION
I hereby declare that the research project report, titled CONSUMER BEHAVIOUR &
CUSTOMER SATISFACTION is my original work, the report is based on
the data collected by me during the research time.
VEDIKA SRIVASTAVA
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Preface
Introduction
Objective of the study
Research methodology
Data analysis and interpretation
conclusion
Limitations
Recommendations to company:
Questionnaire
Bibliography
2
6
14
15
18
37
38
39
41
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INTRODUCTION
Life insurance is a form of insurance that pays monetary proceeds upon the death of the
insured covered in the policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance company agrees to pay
an agreed upon sum of money to the insured's named beneficiary so long as the insured's
premiums are current.
With a large population and the untapped market area of this population insurance
happens to be a very big opportunity in India. Today it stands as a business growing at the
rate of 15-20% annually. Together with banking services, it adds about 7 percent to the
countries GDP. In spite of all this growth statistics of the penetration of the insurance in
the country is very poor. Nearly 80% of Indian populations are without life insurance
cover and the health insurance. This is an indicator that growth potential for the insurance
sector is immense in India.
It was due to this immense growth that the regulations were introduced in the insurance
sector and in continuation Malhotra Committee was constituted by the government in
1993 to examine the various aspects of the industry. The key element of the reform
process was participation of overseas insurance companies with 26% capital. Creating a
more competitive financial system suitable for the requirements of the economy was the
main idea behind this reform.
Since then the insurance industry has gone through many changes. The liberalization of
the industry the insurance industry has never looked back and today stand as one of the
most competitive and exploring industry in India. The entry of the private players and the
increased use of the new distribution are in the limelight today. The use of new
distribution techniques and the IT tools has increased the scope of the industry in the
longer run.
Insurance is the business of providing protection against financial aspects of risk, such as
those to property, life health and legal liability. It is one method of a greater concept
known as risk management which is the need to mange uncertainty on account of
exposure to loss, injury, disadvantage or destruction.
Insurance is the method of spreading and transfer of risk. The fortunate many who are
exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect
the assets but only compensates the economic or financial loss.
In insurance the insured makes payment called premiums to an insurer, and in return is
able to claim a payment from the insurer if the insured suffers a defined type of loss. This
relationship is usually drawn up in a formal legal contract.
Insurance companies also earn investment profits, because they have the use of the
premium money from the time they receive it until the time they need it to pay claims.
This money is called the float. When the investments of float are successful they may
earn large profits, even if the insurance company pays out in claims every penny received
as premiums. In fact, most insurance companies pay out more money than they receive in
premiums. The excess amount that they pay to policyholders is the cost of float. An
insurance company will profit if they invest the money at a greater return than their cost
of float.
An insurance contract or policy will set out in detail the exact circumstances under which
a benefit payment will be made and the amount of the premiums.
Classification of insurance
The insurance industry in India can broadly classified in two parts. They are.
1) Life insurance.
2) Non-life (general) insurance.
1) Life insurance:
Life insurance can be defined as life insurance provides a sum of money if the person
who is insured dies while the policy is in effect.
In 1818 British introduced to India, with the establishment of the oriental life insurance
company in Calcutta. The first Indian owned Life Insurance Company; the Bombay
mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first
statuary measure to regulate the life insurance business in India. In 1983, the earlier
legislation was consolidated and amended by the insurance act, 1938, with
comprehensive provisions for detailed effective control over insurance. The union
government had opened the insurance sector for private participation in 1999, also
allowing the private companies to have foreign equity up to 26%. Following the opening
up of the insurance sector, 12 private sector companies have entered the life insurance
business.
Benefits of life insurance
Life insurance encourages saving and forces thrift.
It is superior to a traditional savings vehicle.
It helps to achieve the purpose of life assured.
It can be enchased and facilitates quick borrowing.
It provides valuable tax relief.
Thus insurance is found to be very useful in the lives of the person both in short term and
long term.
Fundamental principles of life insurance contract;
1) Principle of almost good faith:
A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk
being proposed whether requested or not.
2) Principle of insurable interest:
Relationships with the subject matter (a person) which is recognized in law and gives
legal right to insure that person.
2) Non-life (general) Insurance:
Triton insurance co. ltd was the first general insurance company to be established in India
in 1850, whose shares were mainly held by the British. The first general insurance
company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was
stabilized in 1907 . there emerged many a player on the Indian scene thereafter.
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The general insurance business was nationalized after the promulgation of General
Insurance Corporation (GIC) OF India undertook the post-nationalization general
insurance business.
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CONCEPTUAL BACKGROUND
Satisfaction is defined as . . .
Consumer Behavior:
Consumer behavior is defined as the behavior that consumers display in searching for,
purchasing, using, evaluating and disposing of products and services that they expect will
satisfy their needs.
The study of the processes involved when individuals or groups select, purchase, use, or
dispose of products, services ideas, or experiences to satisfy needs and desires
Customer value: The ratio between the customerss perceived benefits (economic,
functional and psychological) and the resources (momentary, time, effort, psychological)
used to obtain those benefits.
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Motivation: The processes that account for an individuals intensity, direction, and
persistence of effort toward attaining a goal.
Personality can be described ad the psychological characteristics that both determine and
reflect how person responds to his or her environment.
Consumer learning is the process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related behavior.
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13
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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on
a specific topic.
The word research has been derived from French word Researcher means to
search.
FRANCIES RUMMER defined Research: It is a careful inquiry or examination
to discover new information or relationship and to expand or verify existing
knowledge.
Research is the solution of the problem, whether created or already generated.
When research is done, some new out come, so that the problem (created or
generated) to be solved.
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RESEARCH DESIGN:
Research Design is the conceptual structure within which research is conducted.
It constitutes the blueprint for collection, measurement and analysis of data. The
design used for carrying out this research is
Descriptive.
Primary data
Secondary data
Questionnaire
Books
Websites
Magazine
Brochure
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SAMPLING PLAN:
It is very difficult to collect information from every member of a population .As
time and costs are the major limitation that the researcher faces.
A sample of 100 was taken the sample size of 100 individuals were selected on
the basis of convenient sampling technique. The individuals were selected in the
random manner to form sample and data were collected from them for the
research study.
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PARTICTULARS
Less than 25
25 - 35
35 - 45
Above 45
TOTAL
NO.OF.RESPONDENT
11
40
20
29
100
18
PERCENTAGE
11%
40%
20%
29%
100
ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
19
PARTICUALR
Graduate
Post Graduate
Diploma
Other discipline
TOTAL
NO.OF.RESPONDENT
52
29
8
11
100
PERCENTAGE
52%
29%
8%
11%
100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
PARTICULARS
Business man
Professionals
Job holders
Others
TOTAL
NO.OF.RESPONDENT
34
18
37
11
100
21
PERCENTAGE
34%
18%
37%
11%
100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
22
PARTICULARS
Up to 1 lakh
1 lakh - 3 lakh
3 lakh - 5 lakh
5 lakh & above
TOTAL
NO.OF.RESPONDENT
33
43
20
4
100
23
PERCENTAGE
33%
43%
20%
4%
100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 33% of the respondents have an average annual income up to 1
lakh
b) 43% of the respondents have an average annual income from 1
lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3
lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5
lakh
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PARTICULARS
Below 5 members
5 - 10 members
Above 10 members
TOTAL
NO.OF.RESPONDENT
50
32
28
100
PERCENTAGE
50%
32%
28%
100%
ANANLYSIS:
From the survey it was found that amongst 100 respondents
a) 50% of the respondents are25below 5 members.
b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.
PARTICULARS
Risk Coverage
Tax Savings
Good return
Security
All the above
TOTAL
NO.OF.RESPONDENT
10
3
4
3
80
100
PERCENTAGE
10%
3%
4%
3%
80%
100%
26
ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
e)
27
NO.OF.RESPONDENT
PERCENTAGE
Yes
No
17
83
17%
83%
TOTAL
100
100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 83% of the respondents say that they are aware of ICICI
Prudential life insurance co.
b) 17% of the say that they are unaware of ICICI Prudential life
insurance co
PARTICULARS
NO.OF.RESPONDENT
28
PERCENTAGE
Yes
No
TOTAL
2
98
100
2%
98%
100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 98% of the respondents say that they are aware of insurance.
b) Only 2% are unaware of insurance.
9) % of respondents who are under different plans of ICICI Prudential life insurance co.
PARTICULARS
Invest gain plan
Unit gain plan
Child gain plan
Whole life plan
Pension plan
TOTAL
NO.OF.RESPONDENT
41
36
8
15
No
100
PERCENTAGE
41%
36%
8%
15%
No
100%
29
41%
36%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a)
b)
c)
d)
e)
30
10)
PARTICULARS
Risk coverage
Additional benefit
Maturity date
Sum Assured
TOTAL
NO.OF.RESPONDENT
60
20
12
8
100
31
PERCENTAGE
60%
20%
12%
8%
100%
ANALYSIS:
a) 36% of the respondents say that a benefit of choosing the particular
Product is for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular
products is for additional benefit to family
c) 12% of the respondents say that a benefit of choosing the particular
products is for maturity date
d) 8% of the respondents say that a benefit of choosing the particular
products is for sum assured
11)
PARTICUALRS
Liquidity
Lapsation
Unable to decide premium
High risk coverage
Fixed Term
TOTAL
NO.OF.RESPONDENT
35
20
19
14
12
100
32
PERCENTAGE
35%
20%
19%
14%
12%
100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
a) 35% of the respondents say that disadvantages in insurance
plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance
plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance
plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance
plan are high risk coverage at high premium.
e) 12% of the respondents say that disadvantages in insurance
plan is fixed term
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12)
PARTICUALRS
Recurring Deposit
Equity Fund
Balanced Fund
Mutual Fund
Debt Fund
Cash Fund
TOTAL
NO.OF.RESPONDENT
40
25
10
11
5
9
100
34
PERCENTAGE
40%
25%
10%
11%
5%
9%
100%
ANALYSIS:
From the survey it was found amongst 100 respondents
a)
b)
c)
d)
e)
f)
CONCLUSION
Every study and project needs to be concluded. Hence, the study conducted in ICICI
Prudential helped me to know some thing about its product, working environment of the
company, rules and regulations to be followed in the company, how to handle the work
pressure. I got the maximum exposure because personally I met the customer and I have
also sold some of the insurance products this gave us the confidence to how to work and
helped us to apply the theoretical knowledge to the practical job, because practical
exposure differs significantly From text book knowledge.
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However, still now there is huge untapped market for insurance in India. Now as the
ICICI Prudential has the brand name in market, the company should come with new
plans at lower premium and huge tax benefits. The company should use their SWOT we
should make use of its strengths of high quality products. They should promote their
product throughout the country and target specific group or class for each plans or policy,
which satisfy the consumer needs and provide fully satisfaction.
LIMITATIONS
On an analysis and evaluation of the data collected from the respondents the
following limitations were found.
Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan
Above 20% of respondents are shown interest for investment and financial plan
About 33.33% of respondents are not interest to give their personal records.
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About 10% of respondents interested for investment plan after knowing ICICI
PRUDENTIAL LIFE INSURANCE products.
RECOMMENDATIONS TO COMPANY:
Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in
terms of work force, in terms of market share, in terms of no. of customers. All these
positive stands of the company place at the number one position. On second aspect
whatever amount of money ICICI Prudential save, can be used to increase the no. of
policies, which will helpful to increase the market share of the company. Since the
customers think about the companies in the industry, when they invest money in the life
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insurance industry. So its necessary to increase the market share of the company. There
are some recommendations.
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will get new account and ICICI prudential will be able to more efficient services
to their customers.
QUESTIONNAIRE
Dear Sir/Madam,
I am a student of DEWAN VS. INSTITUTE OF MANAGEMENT, MEERUT conducting
a
marketing
survey
on
CONSUMER
BEHAVIOUR
AND
CUSTOMER
1.
Name
2.
Address
_________________________________
_________________________________
_________________________________
_________________________________
3.
Age
a. Less than 25
b. 25 35
c. 35-45
d. 45 and above
4. Qualification
5.
6.
a. Graduate
c. Diploma
b. Postgraduate
d. Other discipline
Occupation
a. Business
c. Job holder
b. Professional
d. Other
Below 5 members
b. 5 10 members
c. Above 10 members
7.
8.
Have you taken any life insurance product of ICICI Prudential Life insurance?
YES
NO
If yes
9.
e. Pension plan
f. Others __________________
No
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BIBLIOGRAPHY
IRDA Journal
WEBSITES
www.iciciprulife.com
www.google.co.in/indian insurance industry
www.irdaindia.org
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