AN EMPIRICAL STUDY ON DETERMINANTS OF CONSUMER BEHAVIOUR TOWARDS LIFE INSURANCE PRODUCTS WITH REFERENCE TO LIFE INSURANCE CORPORATION OF INDIA VISAKHAPATNAM

Abstract

Consumer behaviour involves the understanding that acquisition, use and disposition can occur over time in a dynamic sequence. In other words the study of consumer behaviour is the study of how individuals make decisions to spend their available resources (money, time, efforts) on consumption-related items. The study aims at studying the complex pattern of beliefs, expectation, ideas, values, attitudes and behaviour exhibited by the customers of LIC of India in the city of Visakhapatnam city. The present study was an in-depth study of micro variables/determinants of policyholder behaviour. The main purpose of the study was to investigate major determinants of policyholder behaviour for selecting and buying insurance policy. The main objective of the study is to understand the various external and internal influences on policyholder decision making. The universe for the present study is a Life Insurance service providers across India and Internationally a well reputed company namely the Life Insurance Corporation of India. Keeping in view of the above objectives the researcher felt it desirable to conduct research in the branches of Visakhapatnam. A pilot study was conducted prior to the administering of the Questionnaire/schedule. The respondents of the pilot study have also been included in the actual size of the sample for the purpose of analysis. Four hundred and Fifty copies of Schedules/Questionnaire were made and distributed to the respondents and four hundred respondents responded to the Schedule as per their availability at various branches of the selected organization at the different locations which is mentioned earlier and was collected personally. Survey response rate was calculated by the researcher in order to broadly define the percentage of total attempted interviews that were completed. The observed response rate was 96.6 per cent in this research. The researcher has distributed 450 unfilled questionnaires and in response 400 properly filled questionnaires were received. KEYWORDS: Consumer behaviour, LIC, policyholder, marketing, annual income