Sustainable Humanosphere

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Volume: 16 Issue: 1

Effect of Marketing Communications on the

Consumer Decision Making:
A Study of Indian Life Insurance Industry
Shyam Singh Chauhan
Research Scholar
Uttarakhand Technical University-Dehradun
E-Mail: shyam_chauhan97@yahoo.com

Nitin Thapar & Rajeev Kumar ‘Ranjan’

Associate professor
Maharishi Markandeshwar (Deemed University) Mullana-Ambala
E-mail: ranjanrajeev87@gmail.com

Abstract— The paper analyzes how the integrated marketing communications impact the buying
behaviour of consumers in the insurance sector. The paper starts with the overview of this sector
which is facing challenges due to changes in the consumer behaviour and the marketing
environment. The Insurance sector in India has become competitive due to the entry of several
national and international players. Due to the increased competition the role of marketing
communication has increased and now in all the marketing strategies of the companies it plays
an important role in impacting the consumer behaviour. The marketing communications which
was a simple promotional tool not very long ago has become one of the most complex processes
in the present scenario of advanced technological developments. The main elements with which
the strategy formulation for marketing communications is done are the 4P’s.The marketing
strategies related to communications are formulated in such a way that it has maximum impact
on the buying behaviour of the target consumers. This is not an easy process and its formulation
requires considerable, research, time and effort. The paper is an attempt to elucidate some
concepts regarding the impact of marketing communications on the choices and decision making
process of the consumers.
Keywords: Insurance Industry, IRDA, Consumer Behavior, Marketing Communications.

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I. INTRODUCTION
The marketing communication is an activity which aims at popularizing a product or service at a
cost. Simply speaking it is a method of publicizing product. Every service or product now
requires a proper approach towards integrated marketing communications to have an impact on
the purchase decisions of the consumers. Due to internet explosion and cheap data availability
use of technology has become an important consideration in the integrated marketing
communications. More so due to advanced technology and high penetration of the internet the
marketing communications has become more challenging. Insurance products which are often
referred to as unsought products pose more challenges to the marketers as far as the marketing
communications are concerned. The insurance companies have started tapping the rural market
with their attractive insurance products as this market was largely left untapped till now. Various
aspects which the rural consumers look for while purchasing the insurance products are the
reasonable premiums, rural centric promotional activities, effective distribution strategies and
better services to the consumer. In the present cut throat competition in the insurance sector the
growth of the company depends on the detailed understanding about the consumer needs, wants,
perception, motivation attitudes and action. The paper will assist the insurance marketers to
frame integrated marketing communications strategies to effectively target the consumers and
deliver the message in an efficient manner so as to attract the customers towards them. Integrated
marketing communication is not only about persuading the consumer to buy the products but it is
also about delighting the consumer which is the main objective and essence of marketing.
Developing the most appropriate channels to transfer the right message at the right time to the
customer is the main objective of the marketing communication. Identification of the right
channels that have a strong influence of the consumer buying decision is an important aspect for
the marketers with respect to IMC since IMC creates a unified message for maximum impact on
the customer. The main objective of the paper is to facilitate the conceptual understanding of
integrated marketing communication and how can it be used to influence the consumer choices.
The IMC can play a very important role in the insurance sector in generating demand and
convincing the customer about the benefits of Insurance products.

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II. LITERATURE REVIEW

Marketing Communications is an important activity for developing a relationships and
coordination of activities. Communication is also an important tool for influencing and
convincing an individual to behave in a particular manner. In the recent times due to information
explosion and fast and cheaper modes of communication the entire understanding about the
concept of communication has undergone a drastic change. The free of ideas, feelings and
thoughts has led to the better and diversified social interaction. Communication is a process of
coding and decoding of the in order to understand the original message (Blythe, 2006).The
effectiveness of communication process depends on getting the desired action from the receiver
to the message (Popescu, 2002).With globalized and competitive market place the marketing
communication is the most efficient medium to deliver their message to the consumer about the
consumption of products or service (Clow, 2010). The marketing communications is an
important aspect of marketing; all the organizations are now heavily dependent on marketing
communication to affect customer choices for profits (Shimp, 2003). IMC is an extension of the
concepts of traditional marketing which are more technological driven now (Spotts et al., 1998).
The concept of IMC was started in the early '90s, and became one of the most popular and
complex promotional tools of the marketing strategy process. It has become one of the important
tools for creating differentiation and competitive advantage. The main focus of the IMC is to
help in brand building and influence the buying decision process of the consumer. Although
there are various definitions of IMC given by academicians but it still lacks a proper universally
accepted definition. A significant contribution was made by (Duncan & Hartley 1993; Grein &
Schultz 1996; 1999) in clarifying some of the concepts of integrated marketing, and also its
theoretical development. Integrated marketing communication is not only about promotion but it
is a more complex process requiring business perspectives (Schultz,1998).The marketing
communication is a marketing activity which develops long term mutually beneficial relationship
between the company and the consumer, (Hutton, 1996; Duncan et.al, 1998).The impact of IMC
programs can be measured and evaluated for improving the performance of IMC for the desired
results (Pickton & Hartley, 1999).There are certain barriers which have to be studied for proper
implementation of IMC. These barriers may social, cultural or behavioral (Cornelissen et.al.,
2000).Apart from the barriers there are many managerial and organizational issues like resistance

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to change and incompetent staff etc. which have to be given due attention (Lock and Gardner,
2001; Beverland & Luxton, 2005).Integrated marketing communication have close relationship
with relationship marketing, brand equity and branding which works in close coordination with
each other (Barnes, 2001; Naik & Raman, 2003; Ratnatunga et.al.,2005). Companies should
design their integrated marketing communication in such a way that all the psychological
elements of human being like learning, attitude, and motivation are influenced. The buying
decision process related to the structured models of consumer behaviour was first given by
(Engel, Blackwell and Kolat, 1978). The consumer decision making consists of five steps which
includes problem recognition, information search, evaluation of alternatives, buying decision and
outcomes and feedback. Further improvements to the model was carried out by (Schiffman and
Kanuk, 2009) which included post-purchase evaluation as the fifth stage.

III. IMC AND CONSUMER BEHAVIOUR

The understanding of the influence of integrated marketing communication on behaviour of the
consumer can be understood by understanding the influences of each element of IMC on the
stages of the consumer buying process. This understanding deals with the internal mechanism of
the buying process which is determined by the complex psychological process. As per
(Schiffman and Kanuk, 2009), based on why the consumer behaves in a specific way depends of
four parameters they are economic view in which the consumer makes the rationale decision
incorporating the economics as the main parameter for decision making (Solomon, 2009). The
other view emphasize the fact that the consumer can be convinced to make a certain purchase
decision by effective marketing communication (Olshavski and Granbois, 1989).The cognitive
view says that the consumer in general makes intelligent choices using all the information
available to make best choice. The last view is the emotional view which focuses on the role of
emotions in certain buying decisions. It highlights that the marketing communications can play
with the emotions of the consumer to persuade him to make consumer decisions. This holds true
for the insurance sector which uses emotions to convince the consumer for making informed
choices. In understanding the model which describes the consumer buying decision process has
to incorporate all the four views for proper understanding. It is pertinent to mention here that it is

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not necessary that every time when a consumer makes a purchase decision it goes through all the
steps which are enumerated in consumer buying decision making process. The time spent on
purchasing depends upon the type of product which is being considered for purchase. In case of
high involvement products the time spent is more as compared to the low involvement products.
The role of consumer as problem solver decides its involvement in the buying process (Howard
and Sheth, 1969; Schiffman et.al., 2009).The researches indicate that the effort of the consumer
should commensurate with the level of satisfaction and purchase (Bettman et.al.1998).The
behaviour of consumers can be understood from the perspectives of the decision making and the
behavioral influence (Mowen, 1988). There are three types of decision making process which a
consumer undergoes which are as, extended problem solving used for high involvement
products, limited problem solving and routinized response behaviour used for low involvement
products (Howard & Seth, 1977).The first view holds that in the case of problem solving the
consumer usually moves through the steps of decision making process. The second view
corresponds to the decision making perspective because the consumer have no prior information
for evaluating the product and therefore requires more detailed information for judging the
product as a brand (Schiffman and Kanuk, 2009). In some situations the consumer makes a
purchase without any reason or rhyme even though they are highly involved. Such purchases
from the perspective of experiential are made to invoke experiences and emotions to solve
problems. The third view illustrates that the consumers have established criteria for the product
evaluation but the consumers are unsure about the suitability of the product and its ability to
satisfy the needs. Many a times the decisions of the consumers are influenced by the socio
cultural factors which are termed as behavioral perspective (Mowen, 1988 & Solomon, 2009) the
behavioural perspective proposes that consumer’s purchases are in response to socio cultural
factors. Extended perspective and limited problem-solving perspective involves information
search and requires time to make a decision, though the time of deliberation may vary, whereas
the routinized decision making requires minimal time and effort (Hutchinson, 1988). The
literature gives significant information on the elements of IMC which have an influence on the
consumer decision making process. The consumer behaviour can be modified with the help of
IMC and thus influencing the buying process of the consumers.

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IV. THE FRAMEWORK OF INTEGRATED MARKETING COMMUNCIATION

The integrated marketing communication framework identifies variables which have an
influence on the behaviour of the consumer. This becomes important for making meaningful
comparisons between companies. To develop an integrated marketing communication model
(fig. 1) requires looking at the different variables and their relationship with theoretical aspects
of integrated marketing communication.

Module A - IMC considers all the elements of marketing mix which have an influence on
consumer’s choices. The consumer preferences should be studied during the market research that
supports the relevancy of the market segmentation E.g. a product is made for an appropriate
market segment for satisfying their needs at a suitable price through proper distribution channels
and the promotion is tailored as per the requirements of the market segment. The integrated
marketing communication is used for effectively positioning the product which means portraying
a unique image of the product in consumers mind. The integrated marketing communication
strategy is focused on choosing relevant components with an objective to have maximum impact
on consumers and managing costs.

Module B – The behaviour of the consumer consists of five elements which conceptually define
the process of consumer behaviour conceptually. These components of consumer behaviour are
used by the marketers to study the behaviour of the consumer for a particular product or brand.
Why a consumer prefers a particular product over others is also determined by the consumer
behaviour intrinsic and extrinsic variables. The five elements of this module are perception,
learning, attitude, motivation and actual behaviour which are taken into consideration for
different types of behavioral studies.

Module C – The Consumer decision-making process consists of five stages which are problem
recognition, information search, evaluation of alternatives, purchase decision and post-purchase
behaviour. These steps vary depending on the product and target segment. The complete model
is divided into three modules, they are integrated marketing communications, Consumer
behaviour and consumer decision making process. The horizontal Module arrows, graphically

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describes the relationship between three modules. The relationship between all the modules is
developed in detail diagrammatically and presented at the end of the paper.

V. MODULE A MODULE B
The influence of each element of marketing mix on the behaviour of the consumer because of
IMC (Module A) is based on the market research and market segmentation. This highlights the
communicational potential of IMC and is therefore reflected in the strategies and plans of the
marketer. The consumer perception is affected by the attributes of the product, the atmospherics
and aesthetics of the environment in which the product is kept. The perception of the consumer is
influenced by the characteristics of the product and the effectiveness of the marketing
communications which highlights the brand image and sustainable differentiation of the brand
(Allison et.al., 1964; Foxallet.al., 2003). The price component of the marketing mix have a
strong influence on the consumer perception as the quality of the product is judged by the price
of the product, cheap products are considered low on quality (Monroe, 1973; Kamen et.al., 1970;
Elliot et.al., 1994). Distribution has a strong behaviour on the Consumer perception (Berry,
1969), and modes of distribution and logistics must be consistent with the image of the brand
(Arens & Schaefer, 2007). In addition of the above the learning process of the consumer has
direct relationship with the integrated marketing communication as it support the learning
process of the consumer and it permanently changes the consumer attitude about the product thus
impacting the buying choices. Learning is acquiring knowledge from experience, reading,
observation, discussions. Developing a positive attitude for the product is one of the most
important goals of integrated marketing communication (Fazio et.al., 1986). Lastly the process of
motivation activates the behaviour of the consumer to do a certain thing. The motivation can be
internal or external. Motivation provides cues, motives, purpose and direction to the behaviour of
the consumer (Hawkins & Mothersbaugh, 2009). The integrated marketing communication has a
strong influence on the motivation process; IMC can motivate a consumer to behave in a certain
manner.

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VI. MODULE B MODULE C

The behaviour of the consumer towards a particular product or service (Module B) are
influenced, by the marketing mix of Module A. Module B highlights the influence of the
behavioral elements on the consumer decision-making process; the first step of consumer
decision-making process is need recognition it is the identification of a problem (Foxall 2003 &
Solomon,2009). Perception plays an important role in identifying the actual state of the
consumer behaviour since it drives problem recognition. The integrated marketing
communication has to be tailored for providing a solution to the consumer problems. This
involve developing a new or customized product or modifying the product by adding or deleting
some new or old features respectively , changing the pricing policy and modifying the supply
chain and logistics. IMC strategy must clearly understand the problem of the consumer in order
to provide the best solution. If the consumer is aware of the problem then the focus of IMC
should be on convincing consumer that the product being offered provides the best solution to
the problem. In case of the problem about which the consumer is not aware the strategy should
be to make consumer understand the problem and then offer a possible solution to solve the
problem. The second step is the information search which is based on learning process which the
consumer gets from various internal and external sources. In the second stage the IMC plays a
pivotal role in making the consumer learn about the product. The effectiveness of the IMC makes
the learning process easy and quick. Consumer’s information search depends on the importance
of purchase and the easy availability of the information (Punj & Saelin, 1983).The alternatives
evaluation is determined by the type of the customer and his involvement in the product purchase
(Hawkins et.al.,2009). The process of evaluation is closely linked to attitudes formation which
happens due to learning and motivation. In case of a choice which is more emotional based the
evaluation is based on how the consumer will feel after the purchase and usage of the product.
Integrated marketing communication at this stage could influence the behaviour of the consumer
by highlight positive feelings resulted from product usage. A similar approach is reflected in
attitude-based choice. This type of choice uses general attitudes or heuristics and all the
components of IMC in the attitude formation. The third type of choice is based on comparing the
various features and attributes of the product from the evoked set. As suggested by the literature
the choice of the consumer is influenced by the features and characteristics of the product and

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price. The product characteristics and price is primarily based on the competition in the market
and learning. The final buying decision is the result of all the previous four stages and it is
reflected in the consumer’s actual buying behaviour. The consumer buying process is completed
with post-purchase evaluation of the product; in which consumer compares the products
performance with his expectations which then results in satisfaction/dissatisfaction or
delightment. The post-purchase evaluation leads to satisfaction or dissatisfaction and in case of
dissatisfaction the dissonance reduction helps in convincing the customer about his choice for the
product (Schiffman & Kanuk, 2009). This post purchase evaluation generates feedback which
adds to the learning process, and facilitates the future purchase decisions.

VII. MODULE C MODULE A

The consumer-making decision and integrated marketing communications is completed after
receiving the feedback. Base on the feedback all the components of integrated marketing
communication must be revised and improved for better results. Constant feedback results and
improvements based on the feedback results in the improvement of the product and the
marketing communications. The elements of consumer behaviour process and the components of
the marketing mix should also be modified as per the feedback received from the target
customers.

VIII. CONCLUSIONS
This paper highlights the complex nature of integrated marketing communication on the buying
behaviour of consumers for products in general and insurance products in particular. The paper
present a model based on which different components of IMC can be coordinated with the
various stages of consumer decision making to influence the consumer behaviour. Emotional
perspective of IMC plays an important role for the insurance products. The integrated marketing
communication is a complex activity which involves detailed understanding of the relationship
between various components of marketing mix and consumer behaviour with which the
behaviour of the consumer can be influenced. The model of interaction between different
modules suggested at the end can be validated in the future researches. The validation of the

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model can be achieved through qualitative (i.e. Case studies, focus groups) as well quantitative
researches (i.e. Survey, collection and analysis of primary or secondary data).This proposed
model is an attempt to study the impact of IMC on the different stages involved in consumer
decision making process. It offers an opportunity to the marketers to formulate
marketing/communication strategies based on proper consumer behaviour understanding, their
judgments and final buying decisions.

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Figure 1: Model of research the IMC influence on the consumer decision-making process.

Module A: Integrated Module B: Consumer Module C: Consumer

marketing Communication Behaviour Decision making process

Market Research
Segmentation
Need Recognition
Perception
Information Search
Learning
Evaluation of
Product Attitude Alternatives
Price
Place Motivation Decision making
Promotion

Integrated Communication Strategy & Post Purchase

Plan ACTUAL evaluation
BEHAVIOUR
Positioning
Components
Objective
Coordination
Communication
Costs
FEEDBACK

FEEDBACK

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