CHAPTER 3

RESEARCH METHODOLOGY

3.1 Purpose of the Study

The project report is about the topic the comparative study on consumer preference between
IDBI Federal and LIC. The purpose of the study was to find out that what is the customer
behaviour towards private and public insurance sector in India. The reason behind so strong
favour towards public insurance company like LIC then any other private institution. LIC being
the most trusted and oldest brand in insurance sector enjoys what benefits despite its costlier
premium charges than private institutions.
Insurance is mostly used as a tool to protect insurers family, but when it comes to investment
people arent much interested. Through a continuous process of innovation in product and
service delivery IDBI Federal aims to deliver world-class wealth management, protection and
retirement solutions that provide value and convenience to the Indian customer.

3.2 Research Objectives of study

To determine and analyze the Market Potential of the IDBI Federal Life Insurance
Company in Delhi.
To study and determine the competitor (LIC) position in the market.
To analyze market share of IDBI Federal Life Insurance Co. LTD products in Delhi.
To analyze the customer satisfaction regarding LIC and IDBI FEDERAL LIFE
INSURANCE.
To study insurance as a tool of investment by customers in India.

3.3 Research Methodology of the Study.

3.3.1 Research Design:
1. Descriptive research design was followed.

2. This type of research design includes surveys and fact-finding enquiries of different
kinds. The major purpose of descriptive research is description of affairs as it exists at
present.
3. Under this research design questionnaires were used to collect data.
4. The questionnaires were formed under the companys norms.
5. It was a structured questionnaire, consisting of both closed ended and open end question.
6. A list of Prospective customers was prepared which were located in Delhi & Gurgaon.
7. All the data regarding the questionnaire was collected in 8 weeks time.
8. The research process consists of a series of closely related activities.

3.3.2 Data Collection Techniques

Data Collection: - The objectives of the project are such that both primary and secondary data is
required to achieve them. So both primary and secondary data was used for the project. The
mode of collecting primary data is questionnaire mode and sources of secondary data are various
magazines, books, newspapers, & websites etc.
Broadly there are two methods of data collection: Primary data collection method
Secondary data collection method

Primary data
The primary data are those data which are collected afresh and for the first time, and thus happen
to be original in character.
I have collected primary data through:

Questionnaires
Interaction with the respondents
Prospect form

Secondary data
The secondary data on the other hand, are those which have already been collected by someone
else and which have already been passing through the statistical process. You are to rely on the
information which already exists.
I have collected secondary data through:

Internet
Books
Literature review

3.3.3 Sample Design

3.3.3.1 Population: The area covered was Delhi and Gurgaon.
3.3.3.2 Sample Size: 50 customers were interviewed for collecting the data.
Time Frame: The research has been done in 6 weeks time.
3.3.3.3 Sampling Method: For study data are to be collected from the respondents. It is not
possible to collect data from everyone of the population.
We use following method of sampling:
Stratified sampling In this method we prepared of those individuals who are having
same characteristics, i.e. age in case of retirement plans, child age in case of child plans,
income level & investing habits in case of ULIP plans.
Convenience sampling In this method we chose individuals by convenience and ease.
We prepared list of individuals who can be interested to take part in the research.

3.3.4 Method of Data Collection

Good data collection involves:
Following the defined sampling process
Keeping the data in time order
Noting comments and other contextual events

 Recording non-responses
3.3.4.1 Instrument for Data Collection
Data can be collected in various formats. We can also collect data in the form of primary data
and secondary data. Through questionnaire method or observation method, we can collect the
information or data related to the primary method whereas newspaper, radio, television,
magazines, pamphlets, internet and many more other things helps us to collect the information or
data which comes under the light of secondary data. These both types of data help us to execute
the final result and solved many of the problems.
3.3.4.2 Drafting of a Questionnaire
Introduction and screening questions.
Asking sensitive screening questions.
A checklist of do's and don'ts in the questionnaire format.
Pre-coding questions and planning the physical layout.
Pre-testing a questionnaire with a workshop in revising questionnaires and pre-testing to avoid
future troubles.

3.3.5 Limitations
Some of the respondents were not cooperative.
There are chances of biased information provided by the respondents.
Responses from many customers could not be incorporated due to lack of interest
shown by them.
As the sample size is small compared to the total population, therefore there cant be
full accuracy.
There was Paucity of time
Area was limited.
Limited access to experts for editing, proofreading, and guidance.