Consumer Buying Behaviour & Investment Analysis

8/2/2019 Consumer Buying Behaviour & Investment Analysis

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Submitted by:-

Sumit Dixit

MBA 2nd yr

Faculty Guide:-


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Subject

Executive Summary

Objectives..

Industry Profile

Major Companies Company Profile

SWOT Analysis

Significance

Research Process..

Research Design

Feasibility of Sampling.

Questionnaire..

Conclusion.

Bibliography.


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Among all the investment avenues insurance schemes arethe best investment options and are giving significantreturn. The growth in Indian economy will lead to boom inthe market in coming years. The increasing numbers ofplayers in the life insurance industry has resulted indeveloping of awareness among people for getting

themselves and their families insured and hence lifeinsurance companies playa major role in the increasingtaste of the customers for insurance, be it life insurance orgeneral insurance.

This report also deals with the findings and referencesregarding Mutual Funds and growing Mutual Fund industry,

it also throws light on present economy in lieu with Mutualfunds and its growth. It also helps us to know what theperception of the investor is. And with out knowinginvestors perception no company can stay in the marketfor a longer period of time.


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The exclusive objective of the study is to

analyze the actual effect of the onset of

various life insurance industries on the sales

of L.I.C. it aims at checking out if the salesof plans and schemes of LIC have gone down

or up due to the onset of various private

players in life insurance sector.


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Insurance, in law and economics, is a form of risk management primarily used tohedge against the risk of potential financial loss. Insurance is defined as theequitable transfer of the risk of a potential loss, from one entity to another, inexchange for a premium and duty of care.

The business insurance is related to the protection of the economic values of theassets. Every asset has a value. The asset would have been created through theefforts of the owner. The asset is valuable to the owner, because he expects to getsome benefits from it. The benefit may be mcome or something else. It is a benefit

because it meets some of its needs.Every asset is expected to last for a certain pen-od of time during which it will

perform. There is a lifetime for a machine in a factory or a cow or a motorcar. Noneof them will last forever. The owner is aware of this and he can also manage hisaffairs that by the end of the period or lifetime or a substitute is made availableand thus he makes sure that the value or income is not lost.

However, the asset may get lost earlier. An accident or any other unfortunate

event may destroy it or make it non-functional, in that case, the owner and thosederiving benefits there from would be deprived from the benefit and the plannedsubstitute would not have been ready. There is an adverse or unpleasant situation.Insurance is a mechanism that helps to reduce the effect of such adverse situations.

Life insurance in India made its debut well over 100 years ago. In our country,which is one of the most populated in the world, the prominence of insurance is notas widely understood, as it ought to be. What follows is an attempt to acquaintreaders with some of the concepts of life insurance, with special reference to LIC.


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LIC

Bajaj Allianz

ICICI Prudential

SBI Life

HDFC Standard

Max New York

Reliance Life

Birla Sun Life

Tata AIG

ING Vysya

Sahara Life


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Kotak Mahindra old mutual life insurance is a joint venture between kotak mahindra bank ltd.,its affiliates and old mutual pIc. The companies one the fastest growing insurance companies inIndia and has shown remarkable growth since its inception in 2001.

Kotak mahindra group believes in offering its customers a-life time of value. A commitment thathas made it a leading financial services group employing around 12300 employees in its variousbusinesses and has a distribution network of branches, franchisees, representative offices andsatellite offices across 320 cities and towns in India and offices in New York, London, Dubai,Mauritius and Singapore. The group services around 2.9 million customer accounts.

Old mutual plc is an international savings and wealth Management Company based in the U.K.

originated in South Africa in 1845, it is among the 50 largest companies in the ftse 100.

The group has a balanced portfolio of businesses offering asset management, life insurance,banking and general insurance services in oveer40 countries, with focus on South Africa, Europeand the United States, and a growing presence in Asia pacific. Old mutual pIc. Employsapproximately 53000 employees world wide and is listed on the London and Johannesburg stockexchanges.

Om kotak mahindra is a joint venture between kotak. mahindra, which is an Indian companyand old mutual, which is a foreign company. It is a 74%26% joint venture between the two. It wasestablished by Mr. Udai kotak in 1985 along with 2 other people who were great aspirants andwanted to establish themselves in the world and earn name and fame.


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STRENGTH:

Old mutual has 160 years experience ~ Wide Network

Based on banking

Best Training Procedure Pure financial Sector

WEAKNESS : Penetration is low

There is no health plans Ulip is not in small plans

Infrastructure is low

OPPORTUNITY:

Opportunity in rural areas. Term plan is cheap and best.

THREATS:

LIC is the big competitor

No availability of health plans


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Customer satisfaction is the crux of the

success of any company. To achieve success,

the foremost thing is to be in pace with the

customer needs. Clear consistent andsystematic improvement is necessary to

demonstrate that customer satisfaction is a

strategic business objective.


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Understanding The Project

Firstly I was enriched with the philosophy ofinvestment and insurance. secondly I tried tounderstand that what made investorscomfortable in making investments in insurancesector and which are the major insuranceschemes in which investors . commonly used toinvestment

Staller

Problem definition

The objectives were set and sampling,methodology and determined I along withthe expert guidance of my project guideprepared a well- designed' questionnaire.


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Decision regarding what, where, when, how muchto invest for getting higher returns with minimumrisks and by what means? The research designencompasses the following information

Data source: data collected was primary as it was

collected by means of questionnaire consisting fromvarious investors.

Research instrument. Structured questionnaireconsisting of open-ended questions were used forused for purpose of research.

Contact method; personal interview

Research approach; field survey

Research type; conclusive (descriptive) adescriptive approach has been adopted in the study.The data has been generated through extensivesurvey method.


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Data collection

I visited the city of Kanpur. Here data collection was done bythe way of questionnaire. I met various investors, direct selling,and agents and queried regarding the questions in thequestionnaire. In the totality 25 respondents were visited by me.The various parameters on which the investors were:

Investment in insurance schemes Most preferred insurance scheme for investment and risk cover .

i- Returns of insurance schemes

Dominating influence in financial decision making + Criteria forinvestment and insurance evaluation f Minimum time period forblocking the funds

Satisfaction towards investment in insurance schemes + Riskinvolved investment and insurance schemes.

Sampling design It encompasses the following information.

Sampling universe Investors of various insurance companies.


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Sample size: 50

Sample procedure: purposive, judgment, andselective sampling

Samplin2: tvpe: convenient sampling Sta2: e 6th

Data analvsis:Data until analyzed is of no use. Analysis was done

in the order of investors visited and then aconsolidated analysis was done (refer to annexure)

Data interpretation:

Data was interpreted and inferences were drawnand transformed to meaningful information to helpmanagement to get a vivid picture and to makeaccurate decision there from


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The basic types of research are as follows:

Descriptive vs. analytical: Descriptive research includes surveys and factfinding enquiries of different kinds. The major purpose of descriptiveresearch is description of the state of affairs as it exists at present. Inanalytical research, on the other hand, the researches have to use factsor information already available and analyze these to make a criticalevaluation of the material.

Applied vs. fundamental:research can either be applied (or action)research or fundamental (or basic or pure) research. Applied researchaims at finding a solution for an immediate problem facing a society oran industrial! Business organization, whereas fundamental, research ismainly concerned with generalizations and with the formulation oftheory.

Quantitative vs. Quantitative:quantitative research is based on themeasurement of quantity or amount. It is, applicable to phenomena thatcan be expressed in terms of quantity. Qualitative research, on the otherhand, is concerned with the qualitative phenomena, LIC., phenomenarelating to or involving quality or kind.


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Conceptual vs. empirical:conceptual research is the one that isrelated to some abstract idea(s) or theory. It is generally used byphilosophers and thinkers to develop new concepts or toreinterpret existing ones. On the other hand, empirical researchrelies on experience or observation alone, often without regardfor system and theory. It is data based research. Coming up withconclusions which are capable of being verified by observation 'orexperiment.

Other:all other types of research are variation of one or more ofthe above stated approaches, based on either the purpose ofresearch, or the time required to accomplish research, or theenvironment in which research is done, or on the basis of some

other factor From the point of view of time, we can think ofresearch either as one time research or longitudinal research. Inthe former case, the research is confined to a single time period,whereas in the latter case, the research is carried over a span oftime.


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Sample taken for the survey is very feasible and is used in practice for avariety of reasons such as-

1.Sampling can save time and money. A sample study is usually lessexpensive than a census study and produces results at a relatively fasterspeed.

2. Sampling may enable more accurate measurements for a sample studyis generally. Conducted by trained and experienced investigators.

3. Sampling remains the only way when population contains infinitelymany members.

4. Sampling remains the only choice when a test involves the destructionof the. item under study.

Sampling usually enables to estimate the sampling errors and, Thus,assists in obtaining information concerning some Characteristics of thePopulation.


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Dear sir/ mam,

I would request you to kindly respond to the following questionnaire.This study is meant exclusively for academiC purpose. I would like toextend my deed sense of gratitude for providing valuable insight thatsurely help in enriching my kn.owledge about today's investment trendand also customer's perception about the invasion of private companies inthe scenario.

Personal details

NAME-

Occupation-

Address-

Phone number-

1. How Many members are there in your family?

2. How many earning members are there in your family? 3. What is the annual income of your family?

4. Are you conscious of yourself and your family?

YES [ ] NO [ ]


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5. Which mode of investment do you prefer the most?

Insurance

Gold

Equity

Mutual funds

Others

land Capital

6. Do you know about ULIP?

YES [ ] NO [ ]

7. Which type of investor are you?

Long term Short term

Both

None

8. Which sector do you prefer the most for investment?

Government Private.

9.Do you think that in present scenario people are diverting for" investment towards privateplayers?

Yes [ ] no [ ]


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10.Have you taken any insurance and investment tool for your self and your family?

Yes [ ] NO [ ]

11. Do you think insurance is good for future protection?

Yes [] no [ ]

12. Do you have any investment with any private insurance company?

YES [ ] NO [ ]

13. If yes, then why? On the basis of:

Returns

Services

Better prod ucts

Flexibility

Transparency

Face value of relatives

Others

14. Do you think private companies have created an impact on LIe?

YES [ ] NO [ ]


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15. Mention any four companies in order of preference?

1)

2)

16. Have you taken any policy from lic?

YES [ ] NO [

17.Do you think that the market share of lie is decreasing day by day?YES [ ] NO [ ]

18. Do you know any person who has switched from lie to any privateplayers?

YES [ ] NO [ ]

19.your overall experience in kotak life insurance?

YES [ NO [ ]


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Through the survey conducted by me, ~ reached the followingconclusions:

Among all the people visited by me a major proportion of therespondents were insured

The people belonging to the age group 40-50 and above have a generalfeeling and inclination towards LIC. They have an in-depth feeling thatwith LIC their money is safe.

People are not aware of the fact that all the insures prevailing theseday, have a large part of their money invested with IRDA kept as asecurity and they all follow the general rule and guidelines laid down byIRDA, and that too vary strictly.

On the other hand, the youngsters and the people belonging' top theage group 30-40 understand that their money will grow unto a betterextent in private insurer because their management is such that they

offer greater and betteropportunities for exploitation and so they have invested their money in

private insurers and not much in LIC if at all they have invested.

A lot is stall to be done to make the people aware for insurance and toeradicate the general feeling imbibed in the people that insurance is notfor their benefit but for the benefit of the company alone.


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Publications:

Marketing management By-Philip kotler

Research methodology I By- C.R.kothari

Insurance in India By-P.S.palande

Insurance chronicle ICFAI Edition

Life Insurance Today Journal

WEBSITE VISITED

www.Kotaklifeinsurance.com

www.google.com

www.insuremagic.com

www.irdaindia.com

www.msn.com
http://www.kotaklifeinsurance.com/http://www.google.com/http://www.insuremagic.com/http://www.irdaindia.com/http://www.msn.com/http://www.msn.com/http://www.irdaindia.com/http://www.insuremagic.com/http://www.google.com/http://www.kotaklifeinsurance.com/


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THANK YOU

Consumer Buying Behaviour & Investment Analysis

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