STUDY ON EMPLOYEE OPINION TOWARDS NEW PRODUCT DEVELOPMENT IN

MAX NEWYORK LIFE INSURANCE AT MADURAI

S. Vasanthi, (Assistant Professor), Management studies, ponjesly college of Engineering,,
Nagercoil-629003, KanyakumariDistrict, Tamil Nadu, India. R. Shenbaga Suriyan (Assistant
Professor), Mother Teresa Engineering College, Tamil Nadu, India .J. Arul Jeya Suneethson,
Office administrate, TMC Office KL Malaysia. (Associate professor & Head) ,
Email:vasanthisukumaran@gmail.com, Email: aruljeyasuneethson@gmail.com. Mobile:
9486885446, Mobile: 9486723265 Mobile: 9489750634

1. Abstract
Insurance is about reducing various types of risk and risk management is therefore
fundamental to an insurance company. In business and engineering, New Product Development
(NPD) is the term used to describe the complete process of bringing a new product or service to
market. There are two parallel paths involved in the NPD process: one involves the idea
generation, product design, and detail engineering; the other involves market research and
marketing analysis. The objective of this study is to study the product development moving
around Madurai city. The data were collected through the employees those who are working in
the Max-New York at madurai. The research design adopted here is Descriptive Research in
nature. The data is collected through Census Survey Method i.e. the data is collected by
considering the whole population (100 samples). The statistical tools used in this research are
Factor Analysis, Reliability Test, and Chi-Square test, cross tabulation.

Key words: Product Design, Marketing Analysis, Product Life Cycle Management, SWOT

1.1 Introduction to New Product Development

In business and engineering, New Product Development (NPD) is the term used to
describe the complete process of bringing a new product or service to market. There are two
parallel paths involved in the NPD process: one involves the idea generation, product design, and
detail engineering; the other involves market research and marketing analysis. Companies
typically see new product development as the first stage in generating and commercializing new
products within the overall strategic process of product life cycle management used to maintain
or grow their market share. The life insurance business was concentrated in urban areas and was
confined only to the higher strata of the society.

1.2 Reviow of Relevant Literature

A study conducted by Sunayna Khurana (2008)article “Customer Preferences in Life

Insurance Industry in India”, revealed that the insurance sector plays a very important role in
the development of any economy. It is necessary for the economic and overall development of
any country.
A study conducted by Raju, S. and Gurupandi, M. (2009)in their article “Analysis of the
Socio Economic Background and Attitude of the Policyholders towards Life Insurance
Corporation of India”, SmartJournal of Business Management Studies revealed that the study
was of great help to the policyholders, as it was aimed at finding the attitude towards the
services of Life Insurance Company.
A study conducted by Varaprasad, V. and Murali Krishna, B. (2009)article “Insurance
sector: Strategies for Intermediation and Marketing”, Smart Journal of Business Management
studies revealed that the suggestions brought forward by this study are mixed. He concluded that
in order to make insurance sector significant component of financial intermediation process,
complete deregulation and increase in face of reforms are essential at the same time, by
adopting proper segmentation capture significant share in the market for the overall benefit of
organizations.
Shivanand H. Lengti (2009) in his article “Insurance Disputes in India” revealed that
the insurance consumers have the option to select the appropriate authority and forum. It may
be the insurance ombudsman or the consumer councils, to settle their disputes.

Praveen Sanu, Gaurav Jaiswal and Vijay Kumar Panday(2009) in their article, “A Study
of Buying Behaviour of Consumers towards Life Insurance Company”, Prestige institute of
Management and Research, Gwalior, revealed that in present Indian market, the investment
habits of Indian consumers are changing very frequently. The individuals have their own
perception towards various types of investment plans.
 Selvavinayagam, K. and Mathivanan, R. (2010) article has revealed that the competitive
climate in the Indian insurance market has changed dramatically over the last few years. At the
same time, changes have been taking place in the government regulations and technology. The
expectations of policyholders are also changing. The existing insurance companies have to
introduce many new products in the market, which have competitive advantage over the
products of life insurance companies.
Ramanathan, K.V. (2011) research has resulted in the development of a reliable and
valid instrument for assessing customer perceived service quality, awareness level, and
satisfaction level of customers towards life insurance industry.
According to Buckingham (2001:37) employees were “intent on sharing with colleagues
the many reasons for which they believe their organisation is such a rotten place to work”.
Similarly, researchers at Gallup (Brim 2002) and Truss et al (2006) identified an inverse
relationship between employee engagement, or the degree to which a worker is fulfilled by his or
her job, and the length of service. According to Brim (2002) such evidence indicates that for
most employees, the first year on the job is their best and thereafter it is ‘downhill’. One
challenge for employers is to find ways of renewing employees’ engagement levels through the
duration of their employment. They may be also internal customers. So before the company
launching a new product it must verify their opinion.

1.3
Objectives of the Research
 To study the product development among the customers in madurai city.
 To study the various functional departments running in Max-New York life
 To identify the perception and expectation of the customers regarding the Max New York
life product.
 To study the product movement of the Max-New York Life insurance in today
unfavorable conditions of the market.

1.4 Research Methodology

 Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done. This chapter consists of the Research
objectives, Data collection methods, Tools used for analysis. The research design adopted is
descriptive research in nature. The Researcher has conducted the study with in the limited
duration so a detailed and comprehensive study could not be made. The data is collected through
filling up the questionnaires from employees. The primary data is collected through using well
structured questionnaire from employees through personal interview. The secondary data is
collected from company website. The research approach used here is Census survey method.
(i.e.) the data is collected by considering the whole population .The sample size is 100. The
statistical tools used in this research are Factor Analysis, Reliability Test, and Chi-Square test,
cross tabulation.

1.5 Analysis and Interpretation

1.5.1Reliability Statistics

Cronbach's Alpha N of Items

0.862 10

This table shows the reliability of the service quality provided by Max-New York
Life Insurance. It shows the project should be reliable one.
1.5.2 Exploratory Factor Analysis
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

.810
Adequacy.
Bartlett's Test of Approx. Chi-Square 408.289
Sphericity Df 45
Sig. .000

Extraction Method: Principal Component Analysis.

a. There are 3 components extracted.
 Your opinion about MAX Newyork Insurance -0 .766
Your feelings about key advantages of product -0 .664
Your expectation level towards this product - 0.550

1.5.3 Chi-square Test

H0=There is no significant difference between Gender Wise Classification and the
Your level of acceptance that product
H1=There is significant difference between Gender Wise Classification and the
Your level of acceptance that product

Indicate your level of acceptance that product

Neither
disagree
Extremely Strongly nor Strongly Extremely
Disagree Disagree Disagree Agree Agree Agree Agree Total
Gender Wise Male 0 7 4 7 17 20 3 58
Classification Female 1 3 9 6 15 6 2 42
Total 1 10 13 13 32 26 5 100

Particulars Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 10.164a 6 .0.012
Likelihood Ratio 10.791 6 .095
Linear-by-Linear Association
2.625 1 .105

N of Valid Cases 100

a. 5 cells (35.7%) have expected count less than 5. The minimum expected count is .42.

The first table shows that 58male customers are operating account in the Max-newyork
and the remaining of 42female customers is operating account in Max-newyork. The level of
acceptance is higher in agree with 32 customers. The second table shows the chi square value
which is 10.164 and its significant is at 0.95 levels. Since this level of significance is greater than
0.05 we may accept the null hypothesis with high degree of confidence. So there is no significant
difference between different types of bank and waiting time of the customers. Note that footnote
(b) states that no cells have expected less than 5. That is good because otherwise a condition for
using of chi-square would be violated. A good condition is that no more than 20% of the cells
should have expected frequencies less than 5.

1.5.4 ANOVA

Particulars Sum of Mean

Squares Df Square F Sig.
Gender Wise Between Groups 2.476 6 .413 1.754 0.117
Classification Within Groups 21.884 93 .235
Total 24.360 99
Age Wise Classification Between Groups 3.047 6 .508 0.931 0.477
Within Groups 50.713 93 .545
Total 53.760 99
Marriage Wise Between Groups 5.063 6 .844 2.394 0.034
Classification Within Groups 32.777 93 .352
Total 37.840 99
Educational Between Groups 61.700 6 10.283 4.938 0.000
qualification Wise Within Groups 191.593 92 2.083
Total 253.293 98
Classification

The above table shows whether the overall F’s for demographic profile of customers
were significant or not by using the ANOVA program. Note that the out of demographics
groups, age group and gender group of customers differ significantly where F ratio is used to
determine the size of the mean differences for each individual independent variables comparison,
educational F (93,6) =4.9.38,P=0.000 and marriage F (93,6) =2.394,P=0.034. The test of
between groups shows that F ratio for age wise which are statistically significant (p<0.05) level.

1.6 Findings and Recommendations

With the Analysis it was revealed that brand name of the company should not be familiar
to the public. SO the company must make the steps to solve the problem.
 When comparing to competitors advertisement are not effective to attract the customers
this is the main reason to public will not capture the brand name as well as product details. SO
company makes effort to create attractive advertisement.
Advisors should not be facilitated for a long time.
When the customer wants to apply insurance the Minimum premium is high in Max
Insurance.It will highly refelected in the negative projetion. So Middle class people & lower
level people unable to take max-Newyork insurance policies. Hence I Suggested that
company re-modify the policy and get all level of customers.
As for the analysis the employees are satisfied with Product terms and conditions. So the
company maintain the same policy of what they have done in past.
Employees of the company should be response as public queries regarding Insurance.
Even it takes longer time they explain patiently. In this regards they are expecting incentives
and promotion for their kind of motivation. Hence I suggested that company consider this for
maintain their service in long time.
Employees of the company should not take much interest to do their advisors work for a
long time.

1.7 Conclusion

Today there are number of insurance companies are running in the world. Out of this
Max New-York is one of the leading company. In this research we focus on Employee’s opinion
towards the new Product Development in Max Newyork. When the company introduces the new
product People responseare mentionedin different ways. The adoption of a new technology can
be analyzed using a variety of diffusion theories such as the Diffusion of innovations theory.But
based upon research we found that the employees have some opinion towards the company.Even
out of so many hurdles the organization makes arrangements for their remuneration in time,
training programmers to improve their personal skills. But using some of the mechanism and
suggestions the company will growth and well developed in the market.

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