“Study of investment pattern of customer for life insurance with special reference to SBI LIFE INSURANCE COMPANY LIMITED at Patna”



I, The undersigned, hereby declare that the project report entitled “STUDY INVESTMENT PATTERN OF CUSTOMER FOR LIFE INSURANCE WITH SPECIAL REFERENCE TO SBI LIFE INSURANCE COMPANY LIMITED AT PATNA” written & submitted by me to the university of Pune, Pune in partial fulfillment of the requirement for the award of degree of Master in Marketing management under the guidance of Prof. Kanak Tara is my original work and the conclusions drawn there in are based on the material collected by my self.

Place – pune

MANISH PRATAP TIARY (Research student)

Date -


/ 2010

Man is indispensable but there are certain mortals without whom the quality of work suffers. Their guidance becomes indispensable in acquiring quality results. The person who does not give importance to time cannot succeed in life .So for the timely completion the completion. Summer training needs a lot of dedication, concentration and hard work. It should be garnished with the topping of good guidance. I am deeply indebt to all of them for excellent ideas and assistance. I express my deep sense of gratitude to “Mr. MUKUL SINHA, Area Sales Manager-Bihar” (SBI Life insurance Co. Ltd) who spared his precious time and gave me advice whenever I needed. I would also like to thank “MR.CHANDAN” (Executive Agency Channel) who provided adequate help for completion of this project. I would also like to thank MR. ABHISHEK PATRICK (Asst. Manager , SBI life insurance .co. ltd) & MR. ANISH (Sr. Executive Agency Channel).Finally with the deepest sense of esteem and gratitude: I express my sincere thanks to my programme Director “DR. APOORVA PALKAR”, our marketing research Guide “MISS. KANAK TARA” whose excellence guidance and encouragement has made possible for completion of this project. We express our valuable gratitude to our guide for utilizing Guidance, patience, suggestion and realty help rendered at every Step of my study. I also ndebted to all other corporate staffs that helped me in the completion of this project. At this moment I also thank almighty my parents and God for the blessings showed upon me and also my friends for their valuable suggestions. of the project I completion owe my thanks to all the individuals who contributed in of the project from the very beginning till it’s successful successful



Summer training is a major part of the management program because it provides lots of practical knowledge as well as organizational experience. This pre-exposure of the market becomes very necessary in order to form a position as well as to sustain in the corporate world. Productive utilization of various resources is the need of time. Organization Functioning consists of three broad identifiable elements i.e. INPUTS, TRANSFORMATION PROCESS and OUTPUTS. How inputs are converted into outputs depends on the purpose of the organization, achievements of that Purpose through technology Management. The project report has been designed to meet the requirement of the investors as well as

Spectators; who wish only to obtain better return with the current situation. An attempt therefore has been made to find golden mean between today’s Dreams and

Tomorrow’s reality. The project report is related to assess the socio, economic profile of Investors to enhance the market potential of “SBI LIFE INSURANCE COMPANY LIMITED”. The Project report focuses on purpose and scope of Investment as well as various precise negative aspects that harms to Investors. It will give a broad view of investment plan as well as investors Perception and related issues. The project will help the organization related to stock market, mutual funds as well as investors and me in different ways. Through this project, we will be able to know about different buyers behavior decision making process of investor of and organization related to investment will be able to know that, what are the precise aspects that will increase the investor’s aspects while undergoing in professional life. faith and decrease the risk of investors. Being Management student I will be able to know about various


Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Name of chapter Executive summary Introduction Company/Organization profile Scope of the work Objective of the Project work Research methodology Information and Analysis Observations and Findings Limitations Suggestions Conclusion Bibliography Annexure

Page no.




Insurance is a legal contract that protects people from the financial costs that result from Loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals and societies to cope with some of the risks faced in everyday life. People purchase contracts of insurance, called policies, from a variety of insurance organizations.

Insurance has been divided into two segments
1. Life Insurance

2. General Insurance

Life insurance is a contract for payment of a sum of money to the person assured on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified intervals or at unfortunate death. The contract also provides for the payment of premium periodically to the corporation by the assured. General Insurance includes many areas of insurance like marine, motor, engg. Health, fire etc. the contract provides for the payment of an amount on the happening of some contingency. These types of contracts are annual in nature. SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 cr and a Paid-up capital of Rs 1000 Cr. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. At SBI Life Insurance Ltd. customer delight is their guiding principles. Ensuring world class solution by offering customized product with transparent benefits supported by the best technology is their business philosophy. According to Mr. Chandan (Executive agency channel), SBI Life Insurance Ltd. The company has used innovative marketing as well as pricing strategies and their premium chart would be much lower than the other player in the market. Company has launched various products in the market with most competitive premium among all players.



Industry Profile Insurance
Insurance is a legal contract that protects people from the financial costs that result from Loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals and societies to cope with some of the risks faced in everyday life. People purchase contracts of insurance, called policies, from a variety of insurance organizations. Insurance is conceived as a method of sharing of these losses, embodying the principle of cooperation existed in the early civilization. There is evidence that during the Aryan civilizations, loss of profits in industry was insured by the village co-operative in India. Almost everyone living in modern, industrialized countries buys insurance, for instance, laws in most states require people who own a car to buy insurance before driving it on public roads. Lenders require anyone who finances the purchase of a home or car with borrowed money to

insure that property. Business partners take out life insurance on each other to make sure that business will succeed even if one of the partners die.

Insurance has been divided into two segments
1. Life Insurance 2. General Insurance Life insurance is a contract for payment of a sum of money to the person assured on the happening of the event insured against. Usually the contract provides for the payment of an amount on the date of maturity or at specified intervals or at unfortunate death. The contract also provides for the payment of premium periodically to the corporation by the assured. General Insurance includes many areas of insurance like marine, motor, engg. Health, fire etc. the contract provides for the payment of an amount on the happening of some contingency. These types of contracts are annual in nature.

Insurance: A background
Historians believe that insurance first developed in summer and Babylonia. The merchants and traders of these societies transferred and pooled their money to protect themselves and pirates. In the 18th Century BC, Babylonian king Samurai developed a code of law, known as the code of specific rules governing the practices of early risk sharing activities. Insurance also developed during the 1700s in the North American colonies. In 1730 Benjamin Frank contributed for the Insurance of Houses from Loss by fire. Early development of insurance was unorganized. It was mainly insuring commercial risks. The insurance in human life started in England in 1583AD for term Assurance for 12 months, which was issued for the first time. In 1705 amicable society started paying assurance on death a term carried on unto 1757. In 1762 equitable society was the first co. to start charging premium on scientific basis. In India the references to insurance history relates to the East India Co. when some policies where issued on the life of Bruisers in foreign currency. In 1870- Bombay Mutual Insurance Limited

In 1874- Oriental Govt. Security life Assurance Co Limited In 1896 – Bart Insurance Co. and 1897 empire of India. In 1905 – no of insurance company life Hindustan co-op United India, Bombay Life National – Asian were set up during the above period. After 2nd world war several new companies were established, most important being New India Assurance Co. others were Jupiter, Lame, Andhra, Industrial Metropolitan and New Asiatic. After 1st World War the peace of Industrialization was accelerated in India. The Swedish movement had already gathered momentum and nationalism in the twenties, Indian offices began to take due share of the country’s business. It continuously progressed and there seemed to be steady rise in the per capita insurance in the country. The government started to exercise control with the passing of insurance act 1912 there was a marked increase in the volume of insurance business and other form of Business. More companies were floated. With a view to have a closer watch on the matter of investment of funds and expenditure and general management of business govt. enacted the insurance act in 1938 and also the Dep’t of Insurance under the authority of the superintendent of Insurance was established. This act was further amended in 1950. Before nationalization there were 97 operating centers almost all urban. There were 245 different insurance companies then. Nationalization of the Insurance business took place on 19 Jan 1956. LIC act of 1956 was passed by the parliament and received presidential assent on 18th June 1956 and act come into force on 1st July 1956-LIC came into existence on the 1st September 1956.

Importance of Insurance
Insurance benefits the society by allowing individuals to share the risks faced by many people. But it also serves many other important economic and societal functions. Because insurance is available and affordable, banks can make loans with the assurance that the loan’s collateral is covered against damage. This increased availability of credit helps people buy homes and cars. Insurance also provides the capital that communities need to quickly rebuild and recover economically from natural disasters, such as floods or earthquakes. Insurance itself has become a significant economic force in most industrialized countries. Employers buy insurance to cover their employees against work related injuries and health

problems. Businessmen also insure their property, including technology used in production against damage and theft. Because it makes business operations safer, insurance encourages businesses to make economic transactions, which benefit the economies of countries. Insurance companies perform a type of monetary redistribution they collect premium and eventually redistribute that money as payments. Depending on the type of insurance, redistribution can take place anywhere from a few months to many decades. Because of this delay between collections and paying out funds, insurance companies invest their funds to bring in extra revenues. Such investments help businesses and government finance their operations, and few months from those investments deport the operations of insurance companies. With these investments earnings, insurance companies can keep rates much lower than would otherwise be possible.

Privatization of Insurance
The Indian insurance has finally opened up. The first move towards liberalization came with the Amphora Committee Report in 1993 which recommended the privatization of insurance. Indian stands to gain witty the following major advantages: • • • • • Better products with more reasonable and affordable pricing Quick servicing Increased saving rate Long-term funds for infrastructure development will be available to the country Large inflow of foreign capital

It is debated that the insurance business does not produce profit in the first five year. Cross subsidization is a feature of the Indian Market. Event the fire portfolio which is considered profitable, cross subsidizes the other department. Tariff reductions are likely to reduce further. Insurer will have to institute proper claims management process in order to extract proficiencies. The govt. is soon to present the new model for taxing life insurance companies at internationally competitive rates. New entrants would be well advised to look ahead to the stage where brand strength will be a competitive advantage and sketch their alliances accordingly.

Infact alliances related to distribution rather than to product or technology will prove most valuable in the long run. Brokers will come into the market for first time and there is bound to be intense competition as a result of this in the multi channels of distribution.

Need of Insurance
Since beginning of the world, man has always felt insecurity for his assets and even life. There is uncertainty in every aspect of life. It is an old saying that only death and tax are certain, however even the time of death and rate jog tax is not certain. Uncertainties expose our assets to losses and consequently endless problems. A fire in a factory may burn everything and owner’s only source of earning with investment of huge capital is finished but insurance will come to one’s rescue if insurance is taken, all the operations can be started again. Insurance does not only provide reimbursement at the time of loss but at the time of taking the policy, insurer provides suggestive measures to reduce the effect of hazards and losses. Earthquake, flood, riot, strike, theft, explosion, fire, etc. are some of the common dangers to our assets. Moreover life insurance besides providing financial assistance to the insured, these policies provide investment opportunities and even pension plans at market interest rate. In Indian market, the opportunity for insurance companies is huge. The efforts of government companies have lacked sincerity, as there is large untapped market even after 45 years of nationalization. According to sources, 30 cores people of India can afford insurance however only 8 cores of them have taken any insurance. Life insurance premium collected in a year is only 2% of gross domestic product in India with that of 12% in USA. Total non-life insurance premium is a mere 0.6% of GDP which is almost negligible. On the basis of this it can be said that there is huge scope for insurance in India. There is still much to achieve and a big market to explore. The latent demand foreseen in Indian market and the success of liberalized market in emergent economies make this a great opportunity. To avail this may international players including the world leaders have set up their business in India in last two years. Each company requires 100 crores of capital to start their business, which is a big amount to ensure the solvency of company at all times. Other companies, which have come up, are: MAJOR PLAYERS OF LIFE INSURANCE IN INDIA • • Life Insurance Corporation of India ICICI prudential Life Insurance

• • • • • • • • • •

SBI Life Insurance HDFC Standard Life Insurance Max New York Life Insurance Birla Sun Life Insurance Kotak Mahindra Life Insurance Reliance Life Insurance Allianz Bajaj Life Insurance Sahara Life Insurance Aviva Life Insurance TATA Aig life Insurance



SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital Paribas Assurance the remaining26%. and BNP

State Bank of India enjoys the largest banking franchise in India. Along with its 6 Associate Banks, SBI Group has the unrivalled strength of over 16,000 branches across the country, arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the world’s top 6 group of banks by market value and a European leader in global banking and financial services, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the bancassurance and partnership model. SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail Agency, Institutional Alliances and Corporate Solutions distribution channels. SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion.

Agency Channel, comprising of the most productive force of more than 68,000 Insurance Advisors, offers door to door insurance solutions to customers.

To emerge of the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and became a model life insurance company in India in the post liberation period.

Values :
• • • • • Trustworthiness Inovation Ambition Excellence Dynamism

Financial Year 09-10:

Reported a robust Net Profit of Rs.276 Crores.

Crossed Rs.10,000 Crores in Gross Written Premium (GWP).

Ranked No.1, in New Business Premium, amongst private life insurance companies.

Assets Under Management (AUM) grew by 96% to Rs.28, 551 Crores.

Globally topped the prestigious MDRT 2009 for having Maximum number of MDRT Members.

ICRA reaffirmed iAAA rating to SBI Life indicating highest claims paying ability.

Awarded ISO Certification (ISO/IEC 27001:2005) for Information Security Management System (ISMS).

Retained ISO 9001:2000 certificate for superior claim settlement process.

Financial Year 08-09:

Ranked among global top three in terms of number of Million Dollar Round Table (MDRT) members.

Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best Life Insurer 2008".

CRISIL, country's leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI

Life. In 2007, SBI Life became the first life insurer in India to receive this rating from CRISIL.

ICRA assigned iAAA rating indicating highest claims paying ability to SBI Life Insurance.

Retained ISO 9001:2000 certificate for superior claim settlement process.

Financial Year 07-08:
• •

Ranked amongst global top five life insurance companies in the number of MDRT members. Rated as the 'The Most Trusted Private Life Insurer' according to a survey conducted by Brand Equity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau.

Became first life insurer in India to receive the highest financial rating 'AAA' from CRISIL, the country's best known rating agency in 2007.

Forayed into micro insurance with the launch of 'Grameen Shakti' in Bhubaneshwar, Orissa for the economically underprivileged sections of society.

Received ISO 9001: 2000 certification for superior claim settlement process.

Became the only domestic life insurer to achieve CMMI Level 3 certification for IT processes and software development capabilities.

Financial Year 06-07:

Second consecutive year of Profitability

Leads Private Life Insurance Companies in Lives covered : 6.49 Million lives covered

Financial Year 05-06:

Became the first Life Insurer to make Profits

PERESENTAGE: State Bank of India enjoys the largest banking franchise in India. Along with its 6 Associate Banks, State Bank Group has the unrivalled strength of over 16,000 branches across the country, arguably the largest in world BNP Paribas is the 1st largest French company and ranks 5th in the banking industry worldwide, 1st bank in Euro Zone as per Global 2000 Forbes' 2008. It is 6th most valuable international banking brand as per Brand Finance 2008.BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone's leading Bank. BNP Paribas, part of the world's top 10 group of banks by market value and part of Europe top 3 banking companies, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the bancassurance and partnership model.

SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail Agency, Institutional Alliance and Corporate Solutions distribution channels. SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country, thus ensuring true financial inclusion. Agency Channel, comprising of the most productive force of over 65,000 Insurance Advisors, offers door to door insurance solutions to customers.

SBI Life offers a wide range of services to you where not only you can track your account, generate premium online. Also you can now pay your premium online with our Electronic Clearing Service (ECS) which is convenient and minimizes time & effort. Click on the links on the left menu to explore the services offered.



Unit Linked Products: Unit linked Plans are an attempt to meet all your financial & insurance needs through a single non participating product." What’s more you get market linked returns which in the long term has always proved to give better returns than traditional savings products". Pension Products: You need to have a comprehensive plan to meet your post retirement financial needs ensuring complete peace of mind. To make your post retirement years truly golden. Pure Protection Products:

There are times when everything seems to be perfect, but who can predict future and there is always a place to make this world a better place for our loved ones. To ensure that these uncertainties do not shatter the dreams you have for your family, Protection cum Savings Products: SBI Life offers a variety of plans that gives you the benefit of protection and the opportunity to save for various events like purchase of new house ,weading, car etc . assist our svings.

Money Back Scheme Products: As an individual your life is fueled by dreams. You experience different special moments in life like wedding, birth of a child, child’s education or purchasing a new home. You have to be financially prepared for these special moments. What you need is easy liquidity at regular intervals with life insurance protection to take care of these special moments.

Unit Linked Products Introduction: SBI Life – Unit Plus III is an excellent and flexible non participating Unit linked Plan , specially designed to meet your changing requirements at various stages of life. With a wide array of funds, riders and other options, this product gives you the complete freedom to fulfill all your investment and insurance needs. And that’s not all; we now also offer you guaranteed additions and choice of payment options at a lower cost, giving you far superior value. Key Features: • • • Guaranteed Additions of upto 200% of your current years premium for Regular Premium Option and upto 25% for Single Premium Option. No Premium Allocation Charge from 11th year onwards, thereby boosting your fund value Enhanced investment opportunity through 8 varied Fund Options including Index Fund & Top 300

Fund • • Twin Benefit of Market linked returns & insurance cover Flexible product with an option to increase/decrease your premium and Sum Assured from 4th year onwards


Age at Entry* Age at Maturity

Min: 0 years

Max: 65 years

Applicable for both Regular and Single premium options For Limited Term Max: 70 years For Whole Life: 90 years For Regular Premium: (The term varies with premium size) Premium Size (in Rs) 24,000 – 99,900 Policy Term The Policyholder can chose any of the five fixed policy terms: 10/15/20/25/30 years 7 to 30 years 5 to 30 years

Policy Term 100,000 – 499,900 500,000 & above

For Single Premium – 5 to 30 years For Whole Life Term: 90 years – Age at Entry In case of minor lives, policy term should be appropriately chosen so as to ensure that at the time of maturity life assured should be a major. Premium Modes Annualized Regular Premium Amounts (X 100) Single Premium Amounts (X 100) Yearly / Half-yearly / Quarterly / Monthly/Single Min Rs 24,000 Rs 60,000 Max No limit No limit

Top Up Premium (X Min Rs. 5,000 100) Max: 25% of the basic Regular/Single premium paid till date Min: For Regular Premium (RP) - 5 * Annualised Premium (AP) For Single Premium (SP) – 1.25 * Annualised Premium (AP) Max: Sum Assured Particulars Entry Age For Regular Premium For Single Premium

Upto 45 yrs 46 to 65 yrs All Ages 10 * AP 5 * AP 5 * SP 1.25 * SP

Limited Term 20 * AP Whole Life Term 20 * AP



• To study the awareness of life insurance products.

To study the reasons for buying of life insurance products and classify the target customers in terms of income and age.

Study of investement patternfor insurance.

Study of mode of payment for insurance primier.

To find out what nsurance policies SBI life is


To find out what are the benefits of each of the policy.


Customer behavior

Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products.

Buying Behavior: Are the decision processes and acts of people involved in buying and using products. Need to understand:

• • •

Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society.

Consumer behavior: the process through which the ultimate buyer makes purchase decisions. It consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. Consumer- Is used to represent situations where a product can be consumed. Customer- Is used to represent situations where a product can’t be directly consumed. • • • • A customer is the most important person ever in this office - - - - in person or by mail. A customer is not dependent on us – we are dependent on him. A customer is not interruption of our work – he is purpose of it. We are not doing favor by serving him – he is doing us a favor by giving us the opportunity to do so. • • A customer is not someone to argue – nobody ever won an argument with customer. A customer is person who brings us his wants – it is our job to handle them profitably to him & to ourselves.

So, we can say that consumer behaviour is all about selecting, seeking, purchasing, using & disposing of goods & services.

Why Consumer Behaviour?

➢ Consumers don’t always act or react as the theory would suggest.

➢ Consumer preferences are changing & becoming highly diversified. ➢ Consumer research has vividly pointed out that consumers dislike using identical products and prefer differentiated product to reflect their special needs, personalities and lifestyles. ➢ Meeting special needs of customer requires market segmentation. ➢ Implementation of marketing concept. ➢ Rapid introduction of new product with technological advancement.

Customers can be classified into two main groups; internal and external customers. An internal customer is someone who works for the organization, possibly in another department or another branch. External customers are essentially the general public. These two groups can be further broken down: Internal Customers 1. 2. People working in different departments People working in different branches

External Customers 1. 2. 3. 4. 5. Individuals Individuals of different needs Individuals of different cultures Business people Groups


Customers have needs and expectations that need to be observed by the organization. A need is something that the customer needs, like car insurance being low. An expectation is something

that the customer won't necessarily get but they expect to get, like a car getting from a person's place of departure to their destination. In general there are three ways of analyzing consumer buying decisions:Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. Psychological models - These models concentrate on psychological processes such as motivation and need reduction. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences. Consumer behaviour models - These are practical models used by marketers. They typically blend both economic and psychological models.

A Model of Consumer Behavior

• • • • • • •

Who constitutes the market? What does market buy? Why does the market buy? Who participates in the buying? How does the market buy? When does the market buy? Where does the market buy?

( Occupants ) ( Objects ) ( Objectives ) ( Organization ) ( Operations ) ( Occasion ) ( Outlets )

Model of buyer behavior

Marketing Stimuli Product Price Place Promotion

Other Stimuli Economic Technological Political Cultural

A consumer buying behaviour is influenced by:

1. Cultural factors
a) Culture is a whole set of values, traditions, beliefs, attitudes and ways of doing a reasonably homogeneous set of people. Culture: values, beliefs, perceptions, preferences, and tastes handed down from one generation to the next. Eg. Indian Culture: Children feel the responsibility of taking care of aged parents. A father owning the responsibility of getting his Daughter married in a well to do family. things of

b) Subculture: subgroup of culture with its own, distinct modes of behavior. A group of people who have approximately equal social position as viewed by others in society. It can be related to occupation, education, & community participation where a person lives.

Subcultures are subgroups within the larger or national culture with unique values, ideas, and attitudes, based on common life experiences. It comprises of relatively homogeneous & enduring divisions in a society which are hierarchically ordered & whose members share similar values,

interests and behavior. Cultures are not homogeneous entities with universal values. Subculture influences food preferences, clothing choices, and recreation & career aspirations. E.g. Caste-system in India

Subcultures can differ by: Religion Place of residence ○ Nationality, religious groups, racial groups, geographical areas.

c) Social classes: groups whose rankings are determined by occupation, income, education, family background, and residence location etc. These are hierarchically ordered and its member shares similar values, interests and behaviour.

W. Lloyd Warner identified Six classes: ○ Lower class ○ Upper-upper ○ Lower-upper ○ Upper-middle ○ Lower-middle ○ Working class

Social classes show distinct product & brand preferences in many areas such as clothing, furnishings, leisure etc.

II. Social factors.

a) Reference groups – Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups: groups whose value structures and standards influence a person’s behavior. Requires two conditions: • • The purchased product must be one that others can see and identify The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns

Reference groups influence in at least three ways. 1. Expose individual to new behavior & lifestyle 2. Influence a person’s attitude & self-concept. 3. Create pressures for conformity-actual product/brand choice.

Personal Influence 1. Primary group – Family, friends, neighbors. 2. Secondary groups – Religious, professional. 3. Aspiration. 4. Disassociate group.

b) Social Role & Status: A person participates in many groups- family, clubs, organizations etc. The person’s position in each group can be defined in terms of roles and status. A role consists of the activities a person is expected to perform. Each role carries a status.

c) Family – It is the most important consumer- buying organization in society and family members constitutes the most influential primary reference group.

1. Husband dominated. 2. Wife dominated. 3. Equal. .

III. Personnel


a) Age & life cycle stage- People buy different goods and services over a lifetime. Marketers often choose life-style groups as their target markets. They also pays close attention to changing the life circumstances- divorce, widowhood, remarriage and their effect on consumption.

b) Occupation & Economic circumstances: Occupation also influences consumption patterns. Marketers try to identify the occupational groups that have above average interest in their products & services. Product choice is greatly affected by economic circumstances. c) Lifestyle-- Pattern of living in the world as expressed in person’s activities, interests & opinion. People from the same subculture, social class & occupation may lead quite different lifestyles. d) Personality—Each person has personality characteristics that influence his or her buying behaviour. Personality basically means a set of distinguishing human psychological traits that lead to relatively consistent & enduring responses to environmental stimuli. e) Self concept or self image—Marketers attempt to develop brand personalities that will attract consumers with the concept of self-concept (how he views himself).

IV. Psychological factors.

a) Motivation—The individual motivation is the most important factor involved in indicating & governing his or her behaviour in his/ her buying process. A need becomes a motive when it is aroused to a sufficient level of intensity. b) Perception – Selects, organizes & interprets information in order to make sense out of it. It basically tells how we locate towards the things; it is the interpretation of sensory data. ➢ Selective attention: Attracting consumers notice. ➢ Selective distortion: Tendency to twist information into personal meaning and interpret information in a way that will fit into customers pre conceptions. ➢ Selective retention: It is all about storing the information in the memory of the consumers and recalling the message when consumer is in buying situation. c) Learning—It involves change in an individual behaviour arising from experiences. d) Beliefs & attitudes: ➢ Belief is a descriptive thought that a person holds about something. ➢ Attitude describes person’s enduring favorable or uncomfortable cognitive evaluation, emotional feeling & action tendencies toward some object or idea. .

Buying motives:

Motive is a need that stimulates the individual behaviour.

1. Fear. 3. Vanity. 5. Fashion. 7. Sex & romance.

2. Desire for money. 4. Pride. 6. Possession. 8. Love & affection for others.

9. Health & physical well being. 10. Control & convenience.

Factors influencing consumer buying behavior:

Buying decision process

Buying roles – Initiator – who first suggest the idea of buying a particular product or service? Influencer – whose view or advice influence decision? Decider – who decides whether to buy, what to buy, how to buy or where to buy? Buyer – who makes actual purchase? User – who consumes or uses the product or service?

Stages in the buying decision process –


Need recognition –

○ Internal or external stimuli.


Information search –

○ Milder search – heightened attention. ○ Active information search.

Consumer information sources –  Personnel – Family, friends, neighbors, acquaintance.  Commercial – Advertising, salesperson, dealers, packaging.  Public – Mass media, consumer rating organization.  Experimental – Handling, examining, using product.

Sets involved in buying process

➢ Total set – Awareness – Consideration –

Choice – Decision.


Evaluation of alternatives

○ Product attributes. ○ Importance weights. ○ Brand beliefs or brand image. ○ Utility function. ○ Evaluation procedure.

Marketer’s strategy –

○ Modify the product. ○ Alter beliefs about the brand – DHL – Jumbo pack. ○ Alter beliefs about the competitor’s brands. ○ Alter importance weights – Caption cook. ○ Call attention to neglected attributes – Hamam. ○ Shift buyer’s ideals.

d. Purchase decision –

Factors intervene between the purchase intention & purchase decision. ○ Attitudes of others. ○ Unanticipated situational factors. ○ Perceived risk.

Purchase sub decisions – ○ Brand decision. ○ Vendor decision. ○ Quantity decision. ○ Timing decision. ○ Payment method decision.

e. Post purchase behavior –

Post purchase satisfaction – ○ Product expectation & perceived performance. ○ Disappointed – Satisfied – Delighted.

Post purchase actions – ○ Dissatisfied customer. ○ Takes some action – take no action. ○ Take some form of public action. ✔ Seek redress directly from business firm. ✔ Take legal action to obtain redress. ✔ Complain to business, private or government agency.

Post purchase use & disposal –

1. Get ride of it temporarily a. Rent it. b. Loan it. 2. Get ride of it permanently a. Give it away. b. Trade it. c. Sell it. d. Throw it away. e. To be sold or To be used Direct to consumer Through middle man

To middle man 3. Keep it a. Use it to serve original purpose. b. Convert it to serve a new purpose. c. Store it.

The four type of consumer buying behavior are:

1. Routine Response/Programmed Behavior--Buying low involvement, frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.

1. Limited Decision Making--Buying product occasionally, when you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.

2. Extensive Decision-- Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/ performance/psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. Go through all six stages of the buying process.

4. Impulse buying-- No conscious planning.



Research methodology

Research methodology deals with the various methods of research. The purpose of the research methodology is to subscribe the research procedures used in research methodology over all includes the research design, data collection method and analysis procedure which are used to explore the insight information from the research problem. Research methodology helps in carrying out the project report in by analysing the various research findings collected through the data collection method. RESEARCH DESIGN Research design is an important and the vital part of the research. Research design is a comprehensive master plan specifying the procedure for analysis the needed information. Research design provides an excellent framework for the research plan of action. The function of the research design is in accordance with the problem at hand and is collected accurately and economically; research design is a blueprint for the research study, which guide research in collecting and analysis the data. EXPLORATORY RESEARCH DESIGN Exploratory research design helps the research in getting the insight information from the research problem. Generally all the projects innuendoes exploratory research that helps the

researcher in providing the sharp focus of the problem under research. Exploratory research lays emphasis on the discovering of ideas and possible inside to get the information needed to carry out the research has used the exploratory form to research design in the project under study. CONCLUSIVE RESEARCH DESIGN Conclusive research design is the design, which helps the researcher in studying the research problem in the conclusive form. This helps the researcher in choosing the possible cause of action from various alternatives to make a rational design. Hence this type of research is being used in this project.

DATA TYPES AND SOURCES: Once we have decided the ‘RESEARCH DESIGN’ the next step is data collection. For data to be useful, our observation needs to be organised so that we can get some patterns and come to logical conclusions. Statistical investigation requires systematic collection of data. So that all relevant groups are represented in the data. To determine the market potential of lighting fixtures, we have studied 40 Architects and Consultants in certain geographical area (PATNA). • • Primary data Secondary data PRIMARY DATA It is the data, which is fresh and is collected for the first time, and are original in character. There are various primary data collection techniques, which are helped in gathering the primary data. The primary data collection techniques used in this process is as follows: • • • Personal interview Observation Questionnaire

SECONDARY DATA Secondary data is that data, which have been already collected or published for the purpose other than the specific research need at hand. This data is simply used by the research for his purpose of collected the data and its use is now not the same. The secondary data sources here in this project are • • • • Company annual report Websites Newspaper Catalogue and leaflets

Research Design
A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The survey research was used in this project, because consumer’s feedback was necessary for obtaining the Data.

Data Sources
Primary data was collected by the questionnaire based market survey. Secondary data was obtained from journals, magazines, newspapers, and books and the Internet.

Research Instrument
For doing the survey research, structured questionnaire with both open- ended a closed-ended questions was used.

Mode of Survey
The mode of survey was personal interview with the respondents during the filling up of the questionnaires.

The sampling used for this study was probability sampling. Since the study is only meant for certain specific categories within the total population, a stratified random sample was used.

Sample Size
A sample size of 100 respondents is used for the study. Only HNIS in patna .

Sample Unit
This study was basically an opinion survey of the officers of Patna (BIHAR) who are insurance holder, about the life insurance service providers.

Place of Study



1: Existing investment. Data analysis:
Any Kind Of Investment Yes No No Of Respondent 94 6

Interpretation: It can be seen from above chart that 94% of customer have already got an
investment in some policies or the other and 6% of them have no investment.

2: Investment in life insurance. Data analysis:
Investment In Insurance Yes No Of Respondent 64



Interpretation: Most of the customers are invested in such kind of insurance. However
36% of customers are shows for improvement in investing in insurance so awareness about the insurance benefit is required to the consumer.

3. The investment options. Data analysis:
Awareness Of Investment Option Mutual Fund Fixed Deposit Insurance P.M.S N.S.C P.P.F No Of Respondent 12 8 42 5 18 15


From the question we can position the investment option to the

customer’s perspectives. Many of the customers are aware about the insurance and invested in insurance only. N.S.C and P.P.F are not the predominant factors for S.B.I.

4: Policies which taken by customers from different companys.

Data analysis:

58 12 12 16 02


In this graph major people have taken life insurance policy from lic of

India .its Presentage is so height than the others. its shows the monopoly of l I C of India. SBI life needs to break the mono poly market of LIC.

5. Purpose for investment in life insurance.


40 18 16 20 06

Data analysis:

Most of the people prefer for savings purposes. Some prefer for retirement benefits, risk cover and growth for money. Hardly 6% of people were knowing much about these benefits.

6. Mode of deposit renewal of the premium.

Interpretation: In this data it’s clear that many people depend on the agents for
their deposit renewal of the premium. They don’t know and aware about the others mode of renewal premium that’s why the percentage of other mode is so less. About the other mode of renewal it’s important to give proper information and important to create awareness about the other mode of payment.

7. People having SBI life insurance policy. Data analysis:

Interpretation: this data shows that out of 100 indivisuls only 32 people have the sbi life
policy. sbi life needs to increase no of hnis indivisuals for their products and services, which increase the brand image.

8: Products taken from S.B.I
Products Ulip product Endowment Pension Plan Others Respondents 22 4 6 68

Interpretation: Hardly 32% of people were aware of the products or plan provide by S.B.I. Rest of the people were not aware for the same or they do not invest in such plans.

9: Awareness about SBI life insurance products. Data analysis:






• • •

Many people are not aware about the SBI Life Insurance services. People was not so interested to know about any new insurance product and services During the survey it was found that many respondents did not like to talk to any Life Insurance Representative.

Some people know about the SBI Life Insurance but because of the fact that the agents or representative didn’t approach them on time, they didn’t invest their money in SBI Life Insurance.

People were not sure and aware about the value of the products and their benefits in the future course of time.

Many people think that agents don’t work properly because of which customers have to face many problems at the time of making the payment of their premium.

Customers don’t have an adequate knowledge about different mode of making payments of their premium.

Agents don’t provide the true information of the policy and the curiosity among the people regarding various products offered by them is also negligible in this context.

There is no proper guidance given to the customers as the need of different customers is different.

The strongest competitor of SBI Life Insurance is doing extremely well in the present market only because of their goodwill in the market.

Based on the work done in the company major findings of the study have been highlighted below….

Most of the people are satisfied with the extent of their life insurance cover. They are not interested in buying more life insurance.

People do not consider life insurance as a good savings because of low returns.but they consider for tax relaxation which is under sec 80(c).

As life insurance is a long-term contract. Maximum people do not have faith on private life insurance companies, they still prefer LIC.

Because of less advertising not many people are aware about SBI life insurance companies, Product and services.

Most of the people do not know about broker, corporate agents and bank assurance, they rely on their agents only

The most preferred type of plan is money back. The reason being availability of funds after every five years, which can be used for paying further premium, thus saving the regular income.

• • • •

Some people have no idea about what type of cover they have. Most of the people feel that life insurance is essential but they think returns are low. Some people have their doubts on the credibility and long stay of private insurance companies. Agent are not approach to that customer which having more income but ,they have less time.


Limitations of the Study

• •

It was difficult to get appointment from the person whom I know because of their busy schedule. Since the project had to be completed within eight weeks, it was too short a time to convert the prospects into Advisors.

Since the study involved a through analysis of the insurance market and relative study of various players offering the similar products and that of similar, it required a dedicated labour in term of

both time and effort. Since the curriculum did not permit more time, the study had to be very limited.



• • • • Advertisement of the Insurance products should stress on the need of security. Insurance should be popularized as the means of securing future rather than saving tax. New entrants should come out with innovative riders. Policies should be issued quickly and with fewer formalities for the convenience of the customers. • Other services like campaigning for letting the people know about the advanced methods of making payment of the premium such as making online payment and ECS etc. • Newspaper/Magazines and Television are the most effective medium of advertising life insurance products.

Insurance agents should be well trained and should be able to give better investment options to the customers as per their needs.

• •

Provide more knowledge about the products and services to the customer with different medium. In order to compete with the strongest rival, they will need to quote competitive prices against their products which should be more beneficial than the competitor’s products.

There has been tremendous change in the insurance history and with it there has been continuous growth in this sector both in Indian as well as world context. The opening up of the insurance sector has changed the whole look of the industry. While the LIC in order to face the competition is coming with new strategies. New players like SBI LIFE INSURANCE are leading the sector due to their strategic management and tailored made projects. From My study I conclude that though the awareness and people opting for LIC plans are more as compare to SBI LIFE but the later are gaining momentum in the market day by day.

The primary reasons for buying an insurance policy whether life or non-life is to protect us from vagaries of life. We do not invest in insurance for returns; rather we invest in it for regrettable necessities. Though a large proportion of policies available in the country provide for returns, but nobody is looking for returns to the inflation rate. So what does insurance offer, perhaps peace of mind, but even that takes time, due to poor claim performance The demand for insurance is likely to increase with rising per-capita incomes, rising literacy rates and increase of the service sector, as has been seen from the example of several other developing countries. In fact, opening up of the insurance sector is an integral part of the liberalization process being pursued by many developing countries Insurance business in India and yet its spread in the country is relatively thin. Insurance as a

concept has not been able to make headway in India. There has been a strong fall in insurance business in recent years. Furthermore, it can be observed that non-life business is not increasing as strongly as life business This shows on the one hand the increasing significance of life insurance as an instrument for old age provisions and on the other hand indicates the sensitivity of life insurance to changes in the institutional and economic environment. let’s conduct this business with utmost economy with the spirit of trusteeship; thereby making insurance widely popular.



INTERNET SIDES : www.google.com

www.sbilife.co.in www.bimaguru .com

Name : Profession : --------------------------Designation: ---------------Address : ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------No. of Dependents: - ________ Spouse: - Working / Non Working Gender : ------------- Age…………….yrs Organization: ---------------------------------

Family: - Unit / Joint

House: - Owned / Rented

Car: - Brand & Manufacturing Year _______________ Email-ID : -----------------------------------------------------------------------------------------------------Contact No : ----------------------------------------------1. Do you have make any kind of investment ? Yes ( ) No ( )

2.What are the investment options you are aware of …. Mutual fund Nsc 3 .Do you invest into life insurance ? Yes ( ) No ( ) F.d P.m.s Insurance P.p.f

4.Please Name the Life Insurance Co. which you can recall ______________________________________________________________

5. From which company you have taken your policy.
Company Name NOP

6. According to you for what purpose you invest your money in Insurance? {Rank them 1,2,3,4 as Rank 1= low & Rank 4 = high} a) Saving [ ] b) Risk Cover [ ]

c) Growth of Money [


d) Retirement [


7.What is the total amount of Risk cover that you have? _______________________

8. Which type of life insurance plans that you have?
Name of Plan Company Name

9. What is the Normal due date you like for your life Insurance Plans? (a) Monthly (c) Half yearly 10. How you deposit your renewal premium? a) Through agents c) ECS Mode e) Self deposition at Branch Office g) In Drop Box 12) How you come in contact with the agents mentioned above? a) Referred by Friends/Relatives c) Customer Service Helpline b) Through Advertisements d) Approached by Agent b) Online payment through Internet d) ATM f) Through own employee or Relatives (b) Quartly (d) Annually

f) Others ___________________ 13) Have you ever visited any life Insurance Co.?
Company Name Reason

14) Did you ever complained to any insurance co. for any deficiency in service? Name of Company _____________________ Reason of Complaint ___________________________________ Outcome ____________________________________________ 15) Do you have Any Policy of SBI a) Yes

LIFE Insurance?
b) No

16) Which product you have taken from SBI Life? a) Ulip Products c) Pension Plans b) Endowment Products d) Others ___________

17) Which plans attracts you most of SBI Life Insurance? Pls mention the Name & Reason: ___________________________________ _______________________________________________________________ 18) Which of the facilities attracts you most in SBI Life Insurance?

{Rank them 1,2,3,4 as Rank 1= low & Rank 4 = high} a) Quality of services Provided by Agents [ c) Brand/Image of the Company [ ] e) Branch easily reachable [ ] 19) b) Good financial services [ ] d) Wide range of products and services e) Customer Services

Please give your valuable suggestions for improvement of SBI Life Insurance. --------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------

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