Research on Insurance Industry Impact of Advertisements

Project by

Bhushan Shetye Vaibhav Shinde Rajesh Shingare Rahul Shroff Devendra Thanvi Acknowledgements

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Several people have been instrumental in allowing this project to be completed. We would like to thank especially Professor Acharya Madam, for their encouragement and patience throughout the duration of this project. Last but not the least we would like to thank our entire sample population who participated in our survey without whom this project would not have been completed.

Table of Contents
Contents Executive Summary Introduction Background Problem Statement Research Objective Methodologies Sampling Design Data Collection & Analysis Finding & Conclusion Limitations Recommendations Bibliography Page No 4 5 5 5 5 6 6 7 8 9 9 10

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Executive Summary
The purpose of selecting the topic Insurance Industry Impact of Advertisements was to understand whether Ads are real motivators for people to buy insurance. Companies end up spending lots of money through ads in promoting their products so that the customer can see the product and then buy it. Thus ads have always worked as the face of a company to attract the customer so that the revenue can be increased. But all ads do not serve the purpose. While doing the survey we understood various aspects such as how a company will want to target the customer. Ads are made with different concepts to give the customer not only information about the product, but also the company its services its plans and yes the main purpose of selling the item for revenue. Companies use Celebrities to promote their products but while doing the survey we understood that insurance being an avenue of investment

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people do not go buy what the celebrity may express in the ad but go by whats in for them and how their money would do.

Introduction
The survey gathers the voices of 50 randomly chosen common people having a mixture of males and females who have seen advertisements on insurance. The survey was conducted to understand the impact of these advertisements on people; whether it helps in motivating people to buy them or not. It has successfully brought out the essence of the ads as medium of awareness and knowledge.

Background
Saving for the future has always been a lesson thought to us by our forefathers. Hence new avenues of investments have been explored to attract people to secure their future. Insurance being the most valuable Page 4 of 10

and essential avenue of investment made us curious to understand whether the advertisement given to draw the customers towards it has been successful in attracting the potential customers for the company or not. Thus we wanted to study the impact of these ads on people.

Problem Statement
What is the impact of advertisement on people for the insurance industry?

Research Objective
To study the impact of advertisement on people for the insurance industry.

Methodologies
Research Design
Descriptive Research: We have conducted a survey through a questionnaire which includes both qualitative & quantitative types of questions.

Sampling Design

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We have chosen non probability sampling design which includes sample size of 50 people randomly chosen mixture of both male & female.

Data Collection & Analysis

We analyzed 50 subjects to understand the impact of advertisements on customers buying insurance. From the data collected we have the following observations:

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94% have insurance policies out of which 42.55% are females and 57.44% are males. 6% of the sample chosen does not have insurance. The most beneficial source of knowing insurance is Word of Mouth. 62% of the samples have understood the importance of insurance through advertisement. The following diagram helps us to understand the purpose of the advertisements

Purposeof Ad's
Awarenessabout insurance Information about the product Com pany Presence Benefits

16%

32%

32%

20%

Surprisingly survey results reveal that the celebrities are not the real motivators to buy insurance 58% of people think that advertisements will help other people to buy insurance The reasons for insurance advertisements being popular among the people are a) Knowledge b) Association / Identification

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Findings & Conclusion

According to Cramers V There exists weak association between the Gender and Impact of Advertisements From the pie diagram we can analyze that most beneficial source for knowing insurance is

S ourcesOf K nowingInsurance
Newspaper 33% Internet Ads/ Com ercial m 11% Word of Mouth 9% 17% 30% Agents

Modal frequency indicates that the maximum number of insurance policies that individuals hold is 2. As per the z test for single population large, we found that we have to reject H0 and support H1: 0 < 1000. The most popular advertisement amongst the selected ones is ICICI Prudential indicating 92% awareness followed by HDFC Standard Life Insurance 76% and Aviva Life Insurance 66%, out of the sample chosen.

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The Best Advertisement that the subjects recalled was ICICI Prudential as most of them associated the advertisement with their life

Recommendations
The advertisements should be more informative. Advertisement should give the details about product schemes, premium information etc. Give information about the company profile, branches, and its business verticals.

Limitations
Fake or wrong premium amount since people dont want to disclose investment and earnings Interpretation or Perceptions may be different for each and every person

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Bibliography
Book
Research Methodology Method & Techniques By C. K. Kothari Research Methodology in Social Science By Arvind Kumar

Websites
http://www.birlasunlife.com http://www.policybazaar.com

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