International Journal of Recent Technology and Engineering (IJRTE)

ISSN: 2277-3878, Volume-8 Issue-2S4, July 2019

Consumer Buying Behaviour towards Life

Insurance Policies in Thanjavur City
Guru.P, Umamaheswari.D


Abstract: The typical promotion of life insurance policies is II. REVIEW OF LITERATURE
very less in India than any other countries. Despite being among
one of the world’s highest population, the insurance industry in Antony Beckett et al., (2000) explained that the innovative
India serves as a high catchment for several foreign and Indian technology has formed extremely aggressive market
insurance companies in escalating their promotion and share in conditions that can significantly affect consumer buying
the market, the typical selling is much lesser. Prior to the aperture behaviour towards financial sector. Researcher pointed out
of Indian insurance market for the invasion of foreign insurance that those service providers must understand the various
companies, Life Insurance Corporation (LIC) was the only customer influencers.
insurance company that dealt with Life Insurance. Furthermore
Kyoko Fukakawa (2012) investigated the possibility of
by giving opportunity for other private insurance companies in
Indian market, all the global giants in life insurance has ethically dubious consumer behaviour based on data from 72
commenced business in our country. Using their knowledge about British visitors. Sandeep Chaudary (2016) explored six
the global market and their associations, these multinational factors that influenced consumer behaviour, including
companies have offered numerous lucrative schemes to attract personal and current services, improved business, customer
consumers at various levels in India but regrettably unsuccessful service, improved service quality, concrete benefits, and
to acquire the main share in the Indian market. Despite all the efficient customer management. The study concluded that
odds, still LIC is the major player in the life insurance market with consumer buying behaviour is influenced by new and
approximately more than sixty five percent of share in the market.
innovative products and better customer relationship
Still it is a wonder about the reason behind why the consumers in
India are not convinced of on various private companies and why management. A sample of 100 respondents was used for this
still majority of the people in India have not insured their life. This study.
research is an attempt to examine the factors that determines the Guru and Umamaheswari (2018) in their research concluded
consumer buying behavior of life insurance policies. This paper that among the various other factors, the major variables that
emphasizes on the consumers buying behaviour of life insurance control the insight of the consumers towards life insurance
policies in Thanjavur City. 150 samples were chosen by policies positively were quality of the service offered,
convenience sampling technique. A structured questionnaire was relationship between the client and company and reputation of
administered for this purpose and the data collected were analysed
the company. The growth rate of insurance industry in India is
using chi-square and regression.
faster and hence it has become significant for the insurance
Index Terms: Buying Behaviour, Chi-Square, Life Insurance companies to identify and comprehend the factors that
Regression persuade the perception of the consumers and the same can be
utilized as the supportive feature in developing fresh and
I. INTRODUCTION pioneering items which meet the consumer’s expectation.
Guru and Umamaheswari (2019) in their research on factors
As an individual each person possesses certain amount of deciding selection of policies of private life insurance
risk from various sources. Consumers in India are mainly companies among consumers in Thanjavur District explored
inclined towards various poignant aspects; however at the that Price, product uniqueness, accessibility and promotions
same time the purchase behaviour is mainly influenced based impacts the purchase decision of consumers upon the various
on the rational factors. At the same time, it has a single policies of private life insurance companies significantly and
responsibility. Typical Indian consumers consider the future positively. The agents are supposed to provide better and
and struggle to make a healthier and safer life for his accurate services and settle claims without any delay or
dependents in the future. Life insurance includes the issues. Private life insurance companies are required to
following parts: risk coverage and savings. Insurance is the appreciate precisely the financial needs of consumers and
best option to cover savings and risks for a middle class should set easy and uncomplicated terms and conditions for
employee. But in India, insurance is often taken as a tax purchasing their life insurance policies. In addition, private
exemption, instead of a long-term financial plan. Indians tend life insurance companies have to bring in different innovative
to spend on real estate and jewel, bank balances and products to fulfill needs of various consumer segments.
surveillance. They can also invest in stocks but the percentage
is very low. III. METHODOLOGY
A. Objectives
• To analyse the relationship between quality of service
Revised Manuscript Received on July 05, 2019. offered by the company and
Guru.P, Research Scholar, Department of Management Studies, Periyar
Maniammai Institute of Science & Technology, Thanjavur, India. the buying behaviour of the
Umamaheswari. D, Department of Management Studies, Periyar consumers
Maniammai Institute of Science & Technology, Thanjavur, India.

Published By:
Retrieval Number: B11460782S419/2019©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijrte.B1146.0782S419 727 & Sciences Publication
 Consumer Buying Behaviour towards Life Insurance Policies in Thanjavur City

• To measure the association between easy procedures Chi-Square Tests

implemented by the organisation and buying behaviour
• To analyse the relationship among loyalty and the Value df Asymp. Sig.
purchase behaviour of the consumers (2-sided)
a
Pearson Chi-Square 193.263 9 .000
B. Research Design
A structured questionnaire was administered to interview Likelihood Ration 198.111 9 .000
and collect data from 150 samples using convenience Linear – by – Linear
sampling method in Thanjavur City. The data collected were 118.149 1 .000
Association
analyzed using descriptive statistics, chi-square and
regression. N of Valid Cases 150
(a) 4 cells (25.0%) have expected count less than 5. The minimum
IV. RESULTS AND DISCUSSION
expected count is 1.44.
A. Descriptive Statistics
It can be understood from the above table that the p-value is
Using descriptive statistics, it is shown that nearly 34.7% of 0.00 is less than the 5% significance level, hence reject the
the consumers are in the category of 21 to 30 years of age, alternate hypothesis. Therefore it is clear that there is a
58.7% of them were male, 58.7% of them have completed statistical difference between quality of service and buying
professional course, 58.7% of the respondents have been behaviour.
married, 35.3% of the respondents were earning in the range
of Rs 30,001 - Rs 45,000, 64.7% of them were in Joint Family
Hypothesis 2
and 41.3% of them having a total experience of 3 - 7 years.
Null hypothesis: There exists no statistical difference
between easy procedure and buying behaviour
B. Chi-Square Test

Hypothesis 1 Case Processing Summary

Null hypothesis: There exists no statistical difference between Cases
quality of service and buying behavior
Valid Missing Total
Case Processing Summary N Perce N Perc N Perce
Cases nt ent nt

Valid Missing Total Easy procedure

* Buying 150 100% 0 0.0% 150 100%
N Perce N Perce N Perc
Behaviour
nt nt ent
Quality of
Easy procedure * Buying Behaviour Cross tabulation
Service * 100
150 100% 0 0.0% 150 Count
Buying %
Behaviour Tota
Behaviour
Disag Neutr Ag Stron l
Quality of Service * Buying Behaviour – Cross
ree al ree gly
Tabulation
Agree
Count
Disagree 24 9 0 0 33
Behaviour Total
Neutral 0 9 0 0 9
Disag Neut Ag Strongl Easy
Agree 0 9 27 18 54
ree ral ree y Agree procedure
Strongly
Disagree 24 9 0 0 33 0 0 9 45 54
Agree
Quality Neutral 0 9 0 0 9
Total 24 27 36 63 150
of Agree 0 9 18 9 36
Service Strongly
0 0 18 54 72
Agree
Total 24 27 36 63 150

Published By:
Retrieval Number: B11460782S419/2019©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijrte.B1146.0782S419 728 & Sciences Publication
 International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-2S4, July 2019

Chi-Square Tests Chi-Square Tests

Value df Asymp. Sig. Value df Asymp. Sig.
(2-sided) (2-sided)
Pearson Pearson
197.132a 9 .000 206.358a 9 .000
Chi-Square Chi-Square
Likelihood Ratio 196.055 9 .000 Likelihood Ratio 221.009 9 .000
Linear-by-Linear Linear-by-Linear
115.977 1 .000 120.012 1 .000
Association Association
N of Valid Cases 150 N of Valid Cases 150
(a) 4 cells (25.0%) have expected count less than 5. The (a) 2 cells (12.5%) have expected count less than 5. The
minimum expected count is 1.44. minimum expected count is 4.32.

It can be understood from the above table that the p-value is It can be understood from the above table that the p-value is
0.00 is less than 5% significance level, hence reject the 0.00 is less than 5% significance level, hence reject the
alternate hypothesis. Therefore it is clear that there is a alternate hypothesis. Therefore it is clear that there is a
statistical difference between easy procedure and buying statistical difference between company loyalty and buying
behavior. behavior.
C. Regression
Hypothesis 3
Null: There exists no statistical difference between ANOVAa
company loyalty and buying behaviour.
Model Sum of df Mean F Sig.
Case Processing Summary
Squares Square
Cases
Regression 154.739 3 51.580 248.529 .000b
Valid Missing Total
1 Residual 30.301 146 .208
N Perc N Perce N Perce
Total 185.040 149
ent nt nt
(a) Dependant Variable: Buying Behaviour
Company
(b) Predictors: (Constant), Company Loyalty, Easy procedure, Quality
loyalty * 100
150 0 0.0% 150 100% of service
Buying %
From the above ANOVA table, it was found that regression
behaviour value is less than 0.05. That shows that the regression table is
significant.
Company Loyalty * Buying Behaviour Cross tabulation Coefficientsa
Count Model Unstandardized Standardized T Sig.
Buying Behaviour Total Coefficients Coefficients
Disag Neut Ag Strongl B Std. Beta
ree ral ree y Agree Error
Disagree 24 9 0 0 33 (Constant) .471 .134 3.524 .001
Compan Neutral 0 18 9 0 27 Quality of
.256 .098 .275 2.627 .010
y Agree 0 0 18 18 36 Service
Loyalty Strongly 1 Easy
0 0 9 45 54 .265 .090 .270 2.928 .004
Agree Procedure
Total 24 27 36 63 150 Company
.376 .098 .394 3.831 .000
Loyalty
(a) Dependent Variable: Buying Behaviour

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Retrieval Number: B11460782S419/2019©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijrte.B1146.0782S419 729 & Sciences Publication
 Consumer Buying Behaviour towards Life Insurance Policies in Thanjavur City

The regression coefficients can be framed as

Y (Buying Behaviour) = 0.471 + 0.256 (Quality of Service)

+ 0.265 (Easy procedure) + 0.376 (Company loyalty)

V. CONCLUSION
From the above analysis it is concluded that the major factors
like service quality, easy of procedures and company loyalty
are possessing significant impact on the consumer’s buying
behaviour on life insurance policies. Furthermore this shows
that all these variables creates a significant impact on the
purchase behaviour. The life insurance companies need to
focus on these aspects in order to enhance the consumer’s
buying behaviour on the life insurance products.

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Published By:
Retrieval Number: B11460782S419/2019©BEIESP Blue Eyes Intelligence Engineering
DOI: 10.35940/ijrte.B1146.0782S419 730 & Sciences Publication