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GUIDED BY :- PROF. SHARMISTHA SINGH

ATMIYA INSTITUTE OF TECHNOLOGY & SCIENCEDEPARTMENT OF MANAGEMENT

A

SUMMER INTERNSHIP PROJECT REPORT

ON

“CONSUMER BEHAVIOR”

AT

IDBI FEDERAL LIFE INSURANCE CO. LTD.

Prepared by:-Gaurav B. Mehta

M.B.A. - Semester IIEnrollment No.: 128240592032

Academic Year: 2013-2014

SUBMITTED TO:-

GUJARAT TECHNOLOGICAL UNIVERSITY

Company Name : IDBI Federal Life Insurance Co. Ltd.

Sector / Industry : Insurance Establishment Year : March 2008 Headquarter : Mumbai, India. Products : Individual Life Insurance,

Group Insurance, Pension Plans.

Employees : 1000 on Roll, 7500 Advisors + Active

Registered Office : 1st floor, Trade View, Oasis Complex,

Kamala City, P.B. Marg, Lower Parel (W), Mumbai – 400013. India.

Phone Number : 18001025005 Website : www.idbifederal.com

Company Name : IDBI Federal Life Insurance Co. Ltd.

Sector / Industry : Insurance Establishment Year : March 2008 Headquarter : Mumbai, India. Products : Individual Life Insurance,

Group Insurance, Pension Plans.

Employees : 1000 on Roll, 7500 Advisors + Active

Registered Office : 1st floor, Trade View, Oasis Complex,

Kamala City, P.B. Marg, Lower Parel (W), Mumbai – 400013. India.

Phone Number : 18001025005 Website : www.idbifederal.com

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WEAKNESSNational level advertisementLow frequented promotional activities.Low awareness among rural people

WEAKNESSNational level advertisementLow frequented promotional activities.Low awareness among rural people

OPPORTUNITYMarket expansion.Still only 3 to 5 percent of the market is insuredTo track the uncovered rural areas

OPPORTUNITYMarket expansion.Still only 3 to 5 percent of the market is insuredTo track the uncovered rural areas

THREATSTough competition from

market leader LICIRDA interventionFDI limit increased to 49%.

THREATSTough competition from

market leader LICIRDA interventionFDI limit increased to 49%.

STRENGTHProducts.9.25 B.E.P. in few years2nd company to achieve such success and 3rd in numberBrand nameEmployee satisfaction

STRENGTHProducts.9.25 B.E.P. in few years2nd company to achieve such success and 3rd in numberBrand nameEmployee satisfaction

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Research Topic: “Consumer Behavior for IDBI Federal Life Insurance Company Limited.”

Research Problem Statement: “What is the Consumer Buying Behavior for IDBI

Federal Life Insurance Company Limited?”

Research Hypothesis:Ho1: Monthly family income is Independent of Life

Security.Ha1: Monthly family income is Dependent of Life

Security.

Ho2: Investment in public & private life insurance company is

Independent of Occupation. Ha2: Investment in public & private life insurance

company is dependent of Occupation.

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Universe Size (N) : ∞

Sample Size (n) : 50

Sampling Procedure : Non-probability

Sampling Type : Convenience sampling

Fact Finding Technique : Primary

Data Collection Instruments : Questionnaire

Product Nature : Consumer

Potential Competitors : LIC, SBI, HDFC, ICICI, etc.

Universe Size (N) : ∞

Sample Size (n) : 50

Sampling Procedure : Non-probability

Sampling Type : Convenience sampling

Fact Finding Technique : Primary

Data Collection Instruments : Questionnaire

Product Nature : Consumer

Potential Competitors : LIC, SBI, HDFC, ICICI, etc.

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Que1: Which option will you prefer for you and your family to be financially secured?

Insurance

Bank

Share Market

Fixed Asset

Jewelery

Insurance 72

Sharemarket 12

Fixed asset 4

Bank F.D. 8

Jewelery 4

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Que2: What do you think are the benefits of Insurance

cover?

Uncertainity

Tax Savy

Investment

Cover Future Uncertainty 40

Tax Deduction 25

Investment (safe) 35

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Que3: How will you rate the services given by IDBI Federal Life Insurance Company Limited?

Poor 5

Average 40

Good 45

Excellent 10

PoorAverageGoodExcellent

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CHI-SQUARE TEST

1) Setting of Hypothesis for Monthly Family Income and Security.

H0: Monthly family income is Independent of Life Security.H1: Monthly family income is Dependent of Life Security.

DECISION: χ2c < χ2t 0.1051 < 7.815

Therefore we accept the null hypothesis i.e. Monthly family income is Independent of Security. We can say that since the people are very much conscious about their security, whatever is their family income, they always want life security. People do not want to take chance against the uncertain future. So they will go for the affordable life security option irrespective of their monthly family income. AITS, Department of Management

2) Setting of Hypothesis for the investment in public and private life insurance company:

H0: Investment in public & private life insurance company is Independent of Occupation.

H1: Investment in public & private life insurance company is dependent of Occupation.

DECISION: χ2c < χ2t 5.10 < 7.815

Therefore we accept the null hypothesis i.e. there is no significant difference between the investment in public & private life insurance company by the people of their different occupation. We can interpret that people now have become aware about benefits of investing in private life insurance company. Here at IDBI Federal Life Insurance Company Limited provides attractive plans with comparatively low premium and has good claim ratio till date.

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RECOMMENDATIONS & SUGGESTIONS• There remains need of creating awareness by IDBI

Federal Life Insurance Company Limited specially among people of rural areas.

• More and more seminars and meetings are required to be arranged to cover a large market. Do not make people wait who meet for the important insurance purpose.

• Need to increase advertising at local level and various sales promotional activities.

RESEARCH FINDINGS & CONCLUSION• Majority of people are still not aware about the benefits of having life

insurance policy. They need to be made aware about the various products according to the individual needs of the prospects & its benefits.

• LIC is still the most preferred life insurance provider mainly because it is a government undertaking.

• People prefer to buy life insurance policy for tax benefits, life insurance & investment tool.

RECOMMENDATIONS & SUGGESTIONS• There remains need of creating awareness by IDBI

Federal Life Insurance Company Limited specially among people of rural areas.

• More and more seminars and meetings are required to be arranged to cover a large market. Do not make people wait who meet for the important insurance purpose.

• Need to increase advertising at local level and various sales promotional activities.

RESEARCH FINDINGS & CONCLUSION• Majority of people are still not aware about the benefits of having life

insurance policy. They need to be made aware about the various products according to the individual needs of the prospects & its benefits.

• LIC is still the most preferred life insurance provider mainly because it is a government undertaking.

• People prefer to buy life insurance policy for tax benefits, life insurance & investment tool.

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Sometimes we can not get proper response from the respondents.

It is very hard to get information from each & every individual by filling questionnaire. Sometimes we can not get proper response from the respondents.

Language also becomes barriers. Some persons can not understand English & can not give proper response.

It is also difficult to know whether willing respondents are true representative.

Time was the major constraint.

The study is limited to specific area only and the data is collected from the 100 respondents.

Sometimes we can not get proper response from the respondents.

It is very hard to get information from each & every individual by filling questionnaire. Sometimes we can not get proper response from the respondents.

Language also becomes barriers. Some persons can not understand English & can not give proper response.

It is also difficult to know whether willing respondents are true representative.

Time was the major constraint.

The study is limited to specific area only and the data is collected from the 100 respondents.

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LIMITATIONS OF STUDY