THEORETICAL

FRAMEWORK
 CUSTOMER PERFECTION

Perfection

Perfection in psychology, mental organization and interpretation of sensory information.

The Gestalt psychologists studied extensively the ways in which people organize and

select from the vast array of stimuli that are presented to them, concentrating particularly

on visual stimuli. Perception is influenced by a variety of factors, including the intensity

and physical dimensions of the stimulus; such activities of the sense organs as effects of

preceding stimulation; the subject’s past experience; attention factors such as readiness to

respond to a stimulus; and motivation and emotional state of the subject. Stimulus

elements in visual organization form perceived patterns according to their nearness to

each other, their similarity, the tendency for the subject to perceive complete figures, and

the ability of the subject to distinguish important figures from background. Perceptual

constancy is the tendency of a subject to interpret one object in the same manner,

regardless of such variations as distance, angle of sight, or brightness. Through selective

attention, the subject focuses on a limited number of stimuli, and ignores those that are

considered less important. Depth perception, considered innate in most animals, is

produced by a variety of visual cues indicating perspective, and by a slight disparity in

the images of an object on the two retains. An absolute threshold is the minimal physical

intensity of a stimulus that a subject can normally perceive, whereas a difference

threshold is the minimal amount of change in a stimulus that can be consciously detected

by the subject. Recent studies have shown that stimuli are actually perceived in the brain.

While sensory organs merely gather the signals. William Do belle’s research, for

instance, has offered significant hope for the blind.

Consumer behavior is the study of individuals, groups or organizations and the Process

they use to select, secure, use and dispose of product, services, experience, or idea to

satisfy need and the impacts that these processes have on the consumer Behaviour, and

the marketing strategy used.

This project in aimed at studying the consumer perception towards Life insurance in the

customer. Many feature influence consumer behaviour. Such as

• Cultural Factors

• Social Factors

• Personal Factors

• Psychological Factors

The most important factor, which is determines the consumer behaviors is Psychological

factors.

• Motivation

• Perceptions

• Learning

• Beliefs and Attitudes

The perception of the individuals regarding insurance was more liken obligation and were

aware towards it. They feel it to be a liability like paying tax for life.
ANALYSIS

OF

DATA
Classification of respondent’s according their income level.

TABLE – 10.1

0 – 6,00,000 71

6,00,000 – 1,50,000 16

1,50,000 – 5,00,000 12

5,00,000 > 2

TOTAL 100

CHART – 10.1
 INCOME LEVEL

0 - 6,00,00
6,00,000 - 1,50,000
1,50,000 - 5,00,000
5,00,000 >

Analysis:

According to the respondents 71% of them are below income level of Rs 60,000.

In addition, 16% of are still in between 60,000 to 1, 50,000. There is a wide scope for

lower middle class people. Simultaneously 11% and 2% of the respondents who are

between the income of 1, 50,000 to 5, 00,000 and above, for them it’s creating a from of

a niche market requirement.

Classification of respondent’s preference according to investment

options.
 TABLE – 10.2

GOVT SAVING 35
INSURANCE 17
MUTUAL FUNDS 12
LAND 31
OTHER 5

CHART – 10.2

INVESTMENT OPTIONS
 GOVT SAVING
INSURANCE
MUTUAL FUNDS
LAND
OTHER

Analysis:

According to the respondents, approximately 35% of the respondents wanted to

invest in Government saving, as they perceived them to be secured than any other

investment options. The second option Insurance which 17% respondents preferred for to

investment. 12% of the respondents wanted to invest in mutual funds. A second measure

part of the respondents are interested to investment in land because it could be higher

appreciation value of lands and 36 of the respondents showed interest in Gold, Chit

Funds etc.

Classification of Respondent’s according To Age and Opinion

Insurance as Saving Option.

 TABLE – 10.3

AGE Yes No Total

20-30 17 6 23
30-40 31 4 35
40-50 29 3 32
50 > 9 1 10
Total 86 14 100

CHART – 10.3

Insurance as Investment Option VS Age

 40

30

Yes
20
No

10

0
20 - 30 30 - 40 40 - 50 50 >

Analysis:

20% of the respondents in the age group of consider insurance as a good option

for savings and investment. Approximately 35% of the respondents in each of the other

age group also consider insurance as a good option for investment. Thus, insurance has a

wide scope in Indian market, as people are ready to buy insurance policies.

Classification of Respondent’s according To Age and Opinion

Insurance Preference.

TABLE – 10.4
 OPTIONS/AGE 20 - 30 30 - 40 40 - 50 50 > TOTAL
SAVING FOR CHILD MAR/EDU 2 8 7 4 21
SECURITY TO FAMILY 4 15 5 2 26
RETIREMENT PLANNING 1 3 11 17 32
TAX BENEFIT 0 2 6 13 21
TOTAL 7 28 29 36 100

CHART – 10.4
 THE NEED OF THE INSURANCE
40
35 TAX BENEFIT

30 RETIREMENT
PLANNING
25
SECURITY TO FAMILY
20
SAVINGS FOR CHILD
15 MAR/EDU
10
5
0
20 - 30 30 - 40 40 - 50 50 >

Analysis:

21% of the respondents consider insurance as a good option of savings for

children marriage and educations. Between the age group of 20-40 year, 27% of

respondents are relate the need of insurance as a security to there family. In other ward,

approximately 85% of respondents in the group of 40 above consider insurance policy as

a tax benefit options. Thus, insurance has a better scope in employee segment. This is

ensures a wide market for Private Insurance Companies.

Classification of Respondent’s according to income level and

opinion on advantage of insurance.

 TABLE – 10.5

OPTIONS < 60,000 1,50,000 – 5,00,000> TOTAL

60,000 – 5,00,000

1,50,00

0
BENEFITS 8 11 30 9 58

SERVICE 1 3 6 1 11
BRAND 2 3 8 2 15
OBLIGATIONS 3 4 7 2 16
TOTAL 14 21 49 14 100

CHART – 10.5
 OPTIONS VS AGE
60

OBLIGATIONS
40 BRAND
SERVICE
BENEFITS
20

0
< 60,000 60,000 - 1,50,000 - 5,00,000 >
1,50,000 5,00,000

Analysis:

According to the income wise, 58% respondents have given important towards

benefits, 16% of respondents buys the insurance policy for the obligation, 15% for brand

and 11% for service. It ensures that a wide scope for the private insurance companies

because of the benefit and differentiations policy provided by the private company.

Classification of Respondent’s according to the having of policies

in different companies.

TABLE – 10.6
 AGE 20 - 30 30 - 40 40 - 50 50 > TOTAL
ICICI PRUDE 5 36 21 13 76
AMP SANMA 4 3 0 0 7
ING VYSYA 3 2 1 0 3
BIRLA SUN 2 2 1 0 5
BAJAJ AL 1 1 0 0 2
OTHER 1 0 0 0 1
TOTAL 18 45 23 13 100

CHART – 10.6
 MARKET SHARE OF INSURANCE
COMPANY

40
35 50 >
30 40 - 50
25 30 - 40
20 20 - 30
15
10
5
0 N
A
E

ER
AL
C

A
SU
NM
UD

SY
LI

TH
J
JA
VY
R

SA

O
IP

RL

BA
G
P
IC

BI
IN
AM
IC

Analysis:

According to RESPONDENTS, 76% are more trust worthy towards LIC. It has

been functioning for several year of performance and able to establish a large market

share in insurance field. ICICI Prudential, who has the share of 7%, According to ING

VYSYA who has obtain 6%, is in between the Birla sun life and ICICI Prudential who

were 5% and 7% respectively. Also BAJAJ in an initial stage of 2% and other are 1%.

But private insurance companies have the opportunity of growth because of the vast

population which is still too insured.

Classification on awareness of ING VYSYA brand among

consumers.
 TABLE – 10.7

YES NO

76 24

CHART – 10.7
 AWARENESS OF ING VYSYA
BRAND

NO
24%

YES
76%

Analysis:

According to the chart it clearly shows that ING VYSYA brand having a better

brand having a better brand positioning in financial aspect 76% of the respondent are able

to recall the ING VYSYA brand, which is over all deals with Mutual Funds, Banks,

Insurance etc.

Classification on awareness of ING VYSYA brand as a life

insurance product among consumers.

 TABLE – 10.8

YES NO

62 38

CHART – 10.8
 AWARENESS OF ING VYSYA
AS A LIFE INSURANCE

NO
38%

YES
62%

Analysis:

According to the respondents 62% of them only aware of ING VYSYA as

insurance company. Comparing to brand of ING VYSYA insurance product having lesser

awareness among the people.

Classification of influencer according to the respondents to go for

an Insurance policy.
 TABLE – 10.9

INFLUENCER NO. OF RESPONDENT

RELATIVE & FRIENDS 62

ADVERTISEMENT 8

ADVISOR 22

OTHER 9

TOTAL 100

CHART – 10.9
 INFLUENCER FOR OBTAIN AN
INSURANCE POLICY

RELATIVE & FRIENDS

ADVERTISEMENT
ADVISOR
OTHER

Analysis:

62% respondents are influenced by relatives and friends. According to the analysis its

shows that for having a insurance policy have impact of friends and relatives. 21% of the

respondents are influenced are influenced by the advisor body and 8% of the respondents

are influenced by the advertisement renders by ING VYSYA.

Suggestions
• People are more worried about the benefits of a policy and tax
exemptions rather then brand image or other aspects. Thus, private
insurance companies can win their share, if they provide better
benefits and better services.

• The company should organize a get to gather from time to time by

doing, so it can highlight their plans and policies easily.

• People are more skeptical about the role3 of private insurance

companies and thus these companies need to work to win the
confidence of people.

• It will be a better step for ING Vysya to advertise itself aggressively

to capture the attention of the consumer. It is a known fact
advertisement on mass media definitely affects the mindset of the
consumers.

• The company should send theirs ads in the pamphlet from in one of
the selected newspaper in a certain frequency.
Conclusion
 Conclusion

Majority of the people believe in government-backed institutions like

LIC, yet they want to products of private insurance companies.

Customer may switch over to any brand against the benefits provided by
the insurance company.

Majority of the people are insurable age with handsome income.

Majority of the people wants to invest in government savings and land.

Insurance is the third priority.

Most of the respondents buy a policy based on the benefits provide by it.

Advisor, relatives and friends play an important role in influencing the

buyer behaviors.

People are aware about the ING VYSYA Brand only 80 percent in
Visakhapatnam.
 LIMITATIONS OF THE STUDY

 A limited period allocated for the survey is not sufficient.

 Due to the irrelevant sample, the results derived may not be appropriate.

 The survey was under process in limited areas of Visakhapatnam only.

 The survey was conducted only for people who were in age of 30-55.

 The sample product that was limited to 100 units.

 Some respondents refused to give information.

 Some respondents were not having time for the process.

 REFERENCES

BOOK AUTHOR

Customers Behaviors martin khan

Customers Behaviors DAVID.L.LOUDON

Marketing Management Philip Kotler

ICFAI Journals ICMR Publications

Management of Insurance
Companies VIVEK GUPTA

WEBSITES:

www.insuranceindia.com
www.ingvysyalife.com
www.indiainfionline.com
www.ingvysya.com
www.knowledgedigest.com
www.quoteland.com
ANNEXURE

Annexure – 1: Questionnaire on recruiting Advisor.

 MARKET SURVEY FORM

Name:
Home Address:

Educational Qualification:
Occupation:
Spouse’s name:
Spouse’s Qualification:
Spouse’s Occupation:

1. What is your income level ?

(a) 0-60000 (b) 60000-150000
(c) 150000-500000 (d) 500000 >

2. What is your investment option?

(a) Govt. savings (b) insurance
(c) Mutual funds (d land

3. What is the need for insurance policy?

(a) Tax benefit (b) retirement plan
(c) Security to family (d) savings for child marriage

4. Are you aware of ING VYSYA brand?

(a) Yes (b) No

5. Are you aware of ING VYSYA brand as an life insurance sector?

(a)Yes (b) No

6. What influenced you the most to buy an insurance policy?

(a) Relatives and friends (b) Advertisement
(d) Advisor (d) Other