A DISSERTATION REPORT ON BUYERS ATTITUDE TOWARDS PRODUCT OF LIC IN SADULPUR

Submitted Submitted By:Mr. KUMAR (MANAGEMENT DEPARTMENT) YEAR

To: NARESH B.B.A. FINAL

Affected to M.G.S. University, BIKANER

PREFACE

Theory

and

practice

are

the

two

aspects

of

management

education. In order to produce a dynamic and promising executive, the two have to be blended together. In India, the dissertation report in the domain of management courses has received pivotal importance. It exposes the potential manager to the actual work environment and provides them a rich insight into what actually goes on in the industrial climate of India. In fact it is the implementation management. I must say that the management provided me with an excellent work atmosphere for learning. The report I worked was BUYERS ATTITUDE TOWARDS PRODUCT OF LIC IN SADULPUR. of theory in practice is the life force of

DECLARATION

I hereby declare that the Dissertation Report BUYERS ATTITUDE TOWARDS PRODUCT OF LIC IN SADULPUR submitted to MOTHA P.G. COLLAGE, SADULPUR in partial fulfilment of the requirement for the degree of Bachelor of Business Administration is my original work and not submitted for the award of any other Degree, Diploma or other similar title or prizes.

Place: NARESH KUMAR Date:

SADULPUR

ACKNOWLEDGEMENT

I wish to express my heartfelt Gratitude to LIC. (SADULPUR) for extending co-operation and guidance to me. This is a combined effort of so many people both inside and outside of the organization without their help it would have been very difficult for me to the present shape to the project. The successful completion of this report in very short time has been possible & Mr. due to the personal interest of taken by Mr.S.N.SHRAMA, SHRAMA Mr.SONI, DEEPAK Mr.RAJESH MATHUR BASOTIA, Faculty Mr.SANDEEP Management

Department at MOTHA P.G. COLLAGE, SADULPUR. I am very obliged to these persons who helped out.

I would be failing in my duty if I do not thank all the family members and friends & seniors who helped me with their active and valuable co-operation , one last, but not the least, our thank is due, to all those who have contributed their own to make my project a success.

CONTENT
ACKNOWLEDGEMENT PREFACE DECLARATION
CHAPTER I

1) EXECUTIVE SUMMARY 2) OBJECTIVE OF THE STUDY 3) RESEARCH METHODOLOGY 4) LIMITATION

CHAPTER-II

COMPANY PROFILE
CHAPTER III

INTRODUCTION OF TOPIC
CHAPTER IV DATA ANALYSIS & INTERPRETATION CHAPTER V CONCLUSION SUGGESTION BIBLIOGRAPHY

EXECUTIVE SUMMARY
Someone has greatly said that practical knowledge is far better than classroom teaching. During this project I fully realized this and come to know about the present real world of Insurance sector. It includes all the activities involved in providing insurance products to the final customers. I am pleased to know about the consumers wants and competitors activities in the real world of Insurance. The subject of my study is to analyze the buyers attitude towards products of LIC in SADULPUR city through direct interaction with customers.

The report contains first of all brief introduction about the company. I also put forward recommendations of the consumers and conclusions that will help LIC to provide consumer satisfactory services in the insurance sector.

OBJECTIVES OF STUDY

To study the buyers attitude towards products of LIC in SADULPUR.

To measure the level of satisfaction to the customers.

To know about industrial environment. To see the difference between theoretical knowledge & practical knowledge. To know how the theoretical knowledge apply in the practical approach.

MEANING OF RESEARCH

Systematized efforts to gain new knowledge Redman and Mary

Research is the process of defining and re- defining problems formulating the different hypothesis with suggested solutions by collecting, summarizing, organizing and evaluating different datas by thus reaching on solutions with careful testing. Research is common means which refers to search for knowledge. Research is scientific and systematic search for pertinent

information on a specific topic.

A Careful investigation or inquiry specially through search for new facts in any branch of knowledge. Advanced Learners Dictionary

RESEARCH METHODOLOGY

Research methodology refers to the various sequential steps (along with a rationale, of each such step to adopt by a researcher in studying a problem with certain object or objectives in view. It would be appropriate to mention that research projects are not susceptible to any one complete and inflexible sequence of steps and type of problems to be studied will determine the particular steps to be taken and their order too. However, the following steps provide useful procedural guidelines so far research methodology is concerned;

1234567891011-

Tentative selection of the problem (i.e. topic of research ) Initial survey of literature. Defining or selecting the research problem. Specification of the information required. Design of the research project. Sample design. Collection of data or construction of questionnaire. Execution of the project. Analysis of data Arriving at generalization; and Preparation of the report.

DATA COLLECTION
When research problem has been defined or research plan has been chalked out, the task of data collection begins.

There are two types of data12PRIMARY DATA SECONDARY DATA

PRIMARY DATA:
Primary data are those which are collected fresh and for the first time and original in character.

METHODS OF COLLECTING PRIMARY DATA:-

1234-

OBSERVATION METHOD INRTVIEW METHOD OUESTIONNAIRE SCHEDULES

SECONDARY DATA
Secondary data are those which have already been collected by someone and this data has already been passed through a statistical process.

COLLECTION OF SECONDARY DATA

Secondary data means that are already available i.e., they refer to the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in: Various publications of the control state are local government.

Various publications of foreign government or of international

bodies and their Subsidiary organization. Technical and trade journals, books, magazines and newspapers. Reports prepared by research scholars, unadvertised, economists etc in different fields.

Public record and statistics, historical document, and other

sources of published information. The sources of unpublished data are many; they may be found in diaries, letter, published biographies and autobiographies and also may be available with scholarship and research workers, trade association, labour bureaus and public/ private individuals and organizations.

LIMITATIONS OF STUDY

1) The research process was time consuming.

2) The sources of data collection were limited.

3) It was difficult to complete a study of this nature and to study all the aspect of problem with in short period. 4) The time factor is important

COMPANY PROFILE
Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC. It should, however, be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges.
What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during: The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: 1. 2. That of dying prematurely leaving a dependent family to fend for it self. That of living till old age without visible means of support.

PORTER FIVE COMPETITIVE FORCES FOR INSURANCE INDUSTRY Competitive Force: Michael Porter has identified five forces that determine the intrinsic long-run profit attractiveness of a market or market segment. Industry competitors Potential entrants. Substitutes. Buyers. Suppliers.

Threat of Intense Segment Rivalry: -A segment like

insurance sector which is very attractive because, it is in the growing stage of the life cycle, and these makes this segment attractive but on the other hand it already contains aggressive competitors such as: Bajaj Alliances ICICI Prudential Life Insurance. HDFC. Franklin Templeton. Reliance. Unit trust Of India. Etc.

The numbers of Competitors are more but the potential in the Insurances sectors that makes this Sector attractive to most of the financial companies. So, for that reason LIC have a tuff competition with other competitors in this segment and secondly LIC had an experience of more than 20 years of this segment but on the other hand the company like, ICICI PRU had good experience of this market. So for LIC there is threat mainly with the

ICICI PRU. And in future this can lead to frequent price wars, advertising battles and new-product introductions and will make it expensive to compete. But overall this segment is very attractive.

Life Insurance:

Bajaj Allianz ING Vysya AMP Sanmar Assurance Limited SBI Life Tata AIG Life HDFC Standard ICICI Prudential Life Insurance Birla Sunlife Aviva Life Insurance Kotak Mahindra Old Mutual Max New York Life Met Life LIC

General Insurance:

Royal Sundaram Tata-AIG General Reliance General IFFCO-Tokio ICICI-Lombard Bajaj Allianz HDFC CHUBB New India Assurance Company Limited National Insurance Company Limited United India Insurance Company Limited Oriental Insurance Limited

LIC
Every day we wake up to the fact that more than 220 million lives are part of our family called LIC.

Humbled by the magnitude of the responsibility LIC carry and realise that the lives that are associated with it are very valuable indeed. Although this journey started five decades ago, we are still conscious of the fact that, while insurance may be a business for LIC, being part of millions of lives every day for the past 52 years has been a process called TRUST 53 Years of Trust
Thy Name Is LIC

MISSION "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

VISION "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

OBJECTIVES OF LIC

 Spread Life Insurance widely and in particular to the rural areas

and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of people's savings by making insurancelinked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

BOARD OF DIRECTORS
Members on the Board of the Corporation Shri. T.S. Vijayan (Chairman) Shri. D.K. Mehrotra (Managing Director - LIC) Shri. Thomas Mathew T. (Managing Director - LIC) Shri. A.K. Dasgupta (Managing Director - LIC) Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India) Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of Finance, Govt. of India.) Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India) Shri D.L. Rawal (Chairman & Managing Director, Dena Bank) Dr. Sooranad Rajashekhran Shri. Monis R. Kidwai Lt. General Arvind Mahajan ( Retd.)

OPERATIONS

PRODUCT OFFERED TO CUSTOMER

CHILDREN'S POLICY
Komal Jeevan - Plan No. 159 Children Deferred - Plan no.41 Jeevan Kishore - Plan no.102 Jeevan Chhaya - Plan no.103 Marriage Endowment/Educational Annuity - Plan No. 90 Jeevan Anurag - Plan no.168

ENDOWMENT POLICY
Endowment with Profits - Plan no.14 Limited Payment Endowment with Profits - Plan no.48 Jeevan Mitra - Plan no.88 New JanaRaksha Policy - Plan no.91 Jeevan Anand Plan no. 149 Jeevan Mitra Triple Cover - Plan no.133

GROUP INSURANCE POLICY

Janashree Bima Yojana Group Insurance Scheme in lieu of EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Scheme

JOINT LIFE POLICY

Jeevan Saathi - Plan no.89

MONEY BACK POLICY

Money Back with Profit - Plan no.75 New Money Back - Plan no.93 Jeevan Surabhi 15 yrs - Plan no.106 Jeevan Surabhi 20 yrs - Plan no.107 Jeevan Surabhi 25 yrs - Plan no.108 Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154, 155, 156 157

Bima Bachat- Plan no.175

PENSION PLANS OR ANNUITIES

New Jeevan Dhara - Plan no.148 New Jeevan Suraksha Plan no. 147 Jeevan Akshay II Plan no. 163 Jeevan Nidhi Plan no. 169 Jeevan Akshay V Plan no. 183

SPECIAL PLANS
Term Assurance - Plan no.43 Mortgage Redemption - Plan no.52 Jeevan Aadhar - Plan no.114 Market Plus - Plan No 181 Jeevan Vishwas Plan No. 136 Jeevan Saral Plan No. 165 Jeevan Pramukh Plan No. 167 Bima Nivesh 2005 Plan No 171 Money Plus-Plan No 180

TERM POLICY
Convertible Term Assurance - Plan no.58 New Bima Kiran Term Assurance Anmol Jeevan I Plan No- 164 Amulya Jeevan-Plan No-177

AWARDS AND ACHIVEMENT

Brand Equity Most Trusted Brand Golden Peacock Innovative Product / 2009 Top in Insurance Category Service Award 2009

Loyalty Awards - 2009

Readers Digest Trusted Brand Award 2009 in the Platinum category

CNBC Awaaz Consumer Awards 2008

NDTV Profit Business Leadership Award 2008

INDY's

Silver

Award

for

Best INDY's Silver Award for Best in House Magazine

Corporate Film

IT USER 2008 NASCOM

Selected Business Super brand India 2008

ASIA BRAND CONGRESS BRAND LEADERSHIP AWARD

Pitch Award -" Rank 1 " India's Top 50 service Brands

2008

Loyalty Awards 2008 - Insurance SKOCH Challengers Award 2008 for Sector Jeevan Madhur

Readers Digest Trusted Brand Award 2008 in the Platinum category.

Golden Excellence

Peacock in

Award

for

Corporate

Governance

Web 18 Genius of the web awards 2007

CLASSIFICATION OF BUYERS
Typically, buyers can be classified into two categories: Personal and Organizational. Personal buyers are those who buy a particular item for his or her own consumption or use. For example you may like to buy an Annual Maintenance Contract (AMC) for you personal computer installed in your house. The other category of buyers is called organizational buyers. The organizational buyers are those who buy the goods or services for the organizational use. For example, a government department may buy a similar AMC for the office computers. Another example can be of a hospital which may buy beds for the use of patients. However, irrespective of the type of buyer, the buying roles remain the same, though the number of persons who play these roles may vary. In organization purchases, also called B-2-B (Business to Business) purchases more people are involved and typically they fall under influencers category. Because of large number of people working as influencers, generally the B-2-B purchases take longer time to minimize on perceived risks. The elements which are reviewed in he evaluation process might range from price, quality, reliability, etc. As the complexity of the service offer increases, in B-2-B purchases, the importance of confidence in service supplier increases.

Attitudes Global evaluative judgments

Intentions Subjective judgments by people about how they will behave in the future

Beliefs Subjective judgments about the relationship between two or more things

Feelings An affective state (e.g. current mood state) or reaction (e.g. emotions experienced during product consumption)

Relationships between consumer beliefs, feelings, attitudes and intentions

Consumer beliefs
A sampling of consumer beliefs If a deal seems to good to be true, it probably is. You cant believe what most advertising says these days. Auto repair shops take advantage of women. People need less money to live on once they retire.

 Its not safe to use credit cards on the Internet. Appliances today are not as durable as they were 20 years ago. Extended warranties are worth the money. You get what you pay for: lower price means lower quality. Changing the oil in your car every three thousand miles is a waste of money. Expectations Brand distinctiveness Inferential beliefs Consumer confusion

Consumer expectations
Consumers willingness to spend is influenced by beliefs about their financial future Expectations are beliefs about the future Brand distinctiveness

Why should a consumer want to buy your brand instead of the competitors? The desirability of products having something unique to offer to their consumers is also known as the Unique Selling Proposition (USP)

Inferential beliefs
Consumers use information about one thing to form beliefs about something else Beliefs are often inferred when product information is incomplete Also undertaken when consumers interpret certain product attributes as signals of product quality, e.g. price-quality inferential beliefs

Consumer confusion
Sometimes consumers do not know what to believe due to many different reasons May arise due to conflicting information and knowledge Mistaking one companys product for the product of another company Due to changes in a products position and image

Consumers respond to confusion by: Undertaking further information search Basing their decision on things that are perfectly clear, e.g. price Deferring product purchase indefinitely

Consumer feelings
Feelings as part of the advertising experience Feelings as part of the shopping experience Feelings as part of the consumption experience Feelings activated by the advertisement have the potential to influence attitudes formed about the featured product The program in which advertising appears can induce feelings and affect post-message attitudes

The retail environment elicits different feelings in consumers ultimately affecting their attitudes and behaviours in the store

The shopping environment can evoke pleasure, arousal, or dominance in consumers

Some consumption experiences are liked primarily for the feelings they induce

TYPES OF ATTITUDE
Attitude towards the object (Ao) represents the evaluation of the attitude object Attitude towards the advertisement (Aad) represents the global evaluation of an advertisement Attitude towards the behaviour (Ab) represents the evaluation of performing a particular behaviour involving the attitude object Preferences represent attitudes toward one object in relation to another

The Fishbein Multiattribute Attitude Model

Ao = bi ei i =1 Ao = attitude toward the object bi = strength of the belief that object has attribute i ei = evaluation of attribute i n = number of salient or important attributes

Three primary ways for changing consumer attitudes:

Change beliefs Change attribute importance

Change ideal points

Changing consumer attitudes: Changing beliefs

Firms hope that changing beliefs about products will result in more favourable product attitudes and influence what consumers buy

If beliefs are false, they need to be brought into harmony with reality If beliefs are accurate, it may be necessary to change the product Comparative advertising can hurt beliefs about a competitive brand

Changing consumer attitudes: Changing attribute

importance

Changing an attributes importance is more difficult than changing a belief How is a brand perceived relative to ideal performance? Increasing attribute importance is desirable when the competitors brand is farther from the ideal point than your product

 Firms may add a new attribute

Changing consumer attitudes: Changing ideal

points

Altering consumers preferences for what the ideal product should look like

Q1. Are you aware about life insurance?

1). YES 57 2). NO 3

INTERPRETATION 95 % of persons are aware about life insurance in SADULPUR city , which is a good sign .

Q2. Are you aware about insurance product of lic?

1). YES 57
S eries 8
60 50 40 30 20 10 0 Category 1 Category 2

2). NO 3

Series 1

INTERPRETATION 95 % of people are aware about products of LIC in SADULPUR city.

Q3. Why do you like lic? Safety 23 Service 22 Both 15

38.33 like LIC because it provides safety to the buyers & 36.66 % like LIC because it provides good service 25 % like because it provides both safety & service, LIC should focus on both sides more so that both % should increase.

Q4. Are you satisfied with insurance product of lic?

Yes 40

No 20

INTERPRETATION 66.66 % people of SADULPUR city are satisfied with insurance products of LIC , so LIC should perform a survey & try to find that why other people are not satisfied .

Q5. Do you like the insurance product of lic? Yes No

40

20

INTERPRETATION 66.66 % people of SADULPUR city like insurance product of lic.

Q6. Are you getting the services of LIC from time to time?

Yes 39

No 21

INTERPRETATION 65 % people of SADULPUR city says that they get the services of LIC from time to time

Q7. Are you satisfied with the returns of lic?

Yes 35

No 25

INTERPRETATION 58.33 % people of SADULPUR city are satisfied with the returns of LIC.

Q8.

LIC

is relevant to your needs? Cant say 10

Strongly Moderatel agree y agree 30 20

INTERPRETATION 83.33 % people of SADULPUR city agree that LIC is relevant to

their needs.

Q9. Do you think LIC is a leader in insurance market? Strongly Moderatel agree y agree 30 20 Cant say 10

INTERPRETATION 83.33 % people of SADULPUR city agree that LIC is a leader in insurance market.

Findings
1) Now a day also Insurance is most popular as more plain protect against death but people are unaware about the other aspects of insurance. 2) According to current scenario life and matter Insurance are the most popular ones followed by fire Insurance. 3) Majority of people consider the Insurance premium paid by them as reasonable. 4) Only few counted people are unaware about the entry of private players in the insurance industry and a very high majority of people support their entry. By the entry of private players. Consumers are expecting the premium to down which would be the biggest blessing
5)

6) Maximum people prefer LIC than other private players. 7) People of SADULPUR city have positive belief in buying LIC products.

CONCLUSION
Someone has greatly said that practical knowledge is far better than classroom teaching. During this project I fully realized this and come to know about the present real world of Insurance sector. It includes all the activities involved in providing insurance products to the final customers. I am pleased to know about the consumers wants and competitors activities in the real world of Insurance. The subject of my study is to analyze the buyers attitude towards products of LIC in SADULPUR city through direct interaction with customers. The report contains first of all brief introduction about the company. According to current scenario life and matter Insurance are the most popular ones followed by fire Insurance.

RECOMMENDATIONS
In the modernized well advanced hi-tech approach, to the customer every possible facilities and effort to build up the confidence of the rising policy holders towards Insurance companies is taken. Some recommendations that are intensely felt and highly required for insures to sustain in the market. These are as follows: 1) More and more transparency should be ascertained between insurers and policy holders. 2) Particularly, in the emerging boom in the insurance company, every insurance company should be customer cantered, and well versed in the handling of problem and grievances of the policy holders. 3) Each and Every product launched by the Insurance Company should be in Favour of increasing need of policy holders. 4) IRDA should be more and more responsible to the insurance sector by determining some standard. It should be mandatory to every insurer to make more and more responsible and responsive to the policy holders so that comprehensive understanding may

be developed among policy holders. It may be beneficial on both sides. 5) More advertisements should be done to make aware about the insurance products from time to time. 6) Time to time surveys should be performed, to know if there is any problem faced by customers or not

BIBLIOGRAPHY
WEBSITES
www.licindia.com/ www.lichfl.com/ WWW.licnomuramf.com/ www.licindiachennai.com/

NEWSPAPERS / MAGAZINES
The Economic Times The Insurance Times Insurance Post

BOOKS
Dr. Gupta S.P & Dr. Gupta M.P., Business Statistics by Addition 2004, New Delhi