Document Sample
					            DISSERTATION REPORT
         4.2) LIMITATIONS
                                 Customer satisfaction
Customer satisfaction a business term, is a measure of how products and services supplied by
a company meet or surpass customer expectation. It is seen as a key performance indicator
within business and is part of the four perspectives of a scorecard. In a competitive
marketplace where business compete for customer, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy.

Measuring Customer Satisfaction
Organization are increasingly interested in retaining existing customers while targeting non-
customers; measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace. Customer
satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service. The state of satisfaction
depends on a number of both psychological and physical variables which correlate with
satisfaction behaviors such as return and recommend rate. The level of satisfaction can also
vary depending on other options the customer may have and other products against which the
customer can compare the organization’s products. Because satisfaction is basically a
psychological state, care should be taken in the effort of quantitative measurement, although
a large quantity of research in this area has recently been developed. Work done by Berry,
Brodeur between 1990 and 1998 [3] defined ten ‘Quality values’ which influence satisfaction
behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction.
These ten domains of satisfaction include: Quality, value, Timeliness, Efficiency, Ease of
access, Environment, Inter-departmental Teamwork, Front line Service Behaviors,
Commitment to the customer and Innovation. These factors are emphasized for continuous
improvement and organizational change measurement and most often utilized to develop the
architecture for satisfaction measurement as an integrated model. Work done by
Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the
measurement of customer satisfaction with a service by using the gap between the customer’s
expectation of performance and their perceived experience of performance. This provides the
measurer with a satisfaction “gap” which is objective and quantitative in nature . work done
by Cronin and Taylor propose the “confirmation/disconfirmation” theory of combining the
“gap” described by Parasuraman, Zeithaml and Berry as two different measures (perception
and expectation of performance ) into a single measurement of performance according to
expectation. According to Garbrand, customer satisfaction equals perception of performance
divided by expectation of performance. The usual measures of customer satisfaction involve
a survey with a set of statement using a Likert Technique or sale. The customer is asked to
evaluate each statement and in term of their perception and expectation of the performance of
the organization being measured.

Aligning product and service offerings with customer needs can only be achieved when
sufficient knowledge of customer requirements has been captured. Accurately understanding
the customer’s needs is the most important step towards achieving customer satisfaction.

It’s worth pointing out that needs are often comprised of a mixture of both product and
service offerings- for example- supermarket customers many be influenced over price and
availability of products whilst also being influenced by how long they have to queue at the
checkout there are a variety of methods for assessing customer needs from modeling and
statistical techniques to more standard assessment methods such as observing and questioning
current and prospective customers. Assessment often takes the form of market analysis,
buying trends and behaviors and determining factors that influence the customer. Needs
assessment is an ongoing process and has various guises from questionnaires to workshops
to complaints management. Fundamentally the customer is best placed to convey their needs
and businesses should incorporate an appropriate strategy to track these.

Ownership by Senior Management and involvement of the whole organization Once the
customers needs have been captured they should be championed by the whole organization.
To succeed customer satisfaction should be incorporated as a corporate strategy which should
be supported from the senior management downwards. For the strategy to succeed the voice
of the customer needs to reach those at the very top of the organization and the VP or
Management     Director must champion the customer’s requirements and ensure that the
business is shaped and resourced to deliver.

However, it doesn’t just stop with senior management, the whole organization needs to
understand the requirements of their customers and the role they have to play in satisfying
them. Involvement will usually mean more than a crudely drawn up corporate values such as
“partnership” or “customer focused” but staff will be tuned to requirements, be involved in
their delivery and be acutely aware of the impact on service levels. The whole business,
including those in senior positions should be able to talk fluently and accurately regarding the
levels of satisfaction within its customer base together with engaging and participating in
improvement programs.

A tuned organization will target staff development to support a customer orientated strategy.
Many organizations also link financial rewards with customer satisfaction performance-
while this can be fruitful, businesses should ensure that incentives need to         be placed
correctly to deliver appropriate results.
Customer relationship management (CRM) is a broad term that covers concepts used by
organizations to manage their relationships with customers, including collecting; storing and
analyzing Aspects of CRM there are four aspects of CRM, each of which can be implemented
in isolation:

       Active CRM: A centralized database for storing data, which can be used to automate
business processes and common tasks.
       Operational CRM: The automation or support of customer processes involving sales
or service representatives.
       Collaborative CRM: Direct communication with customers not involving sales or
service representatives (“self service”).
       Analytical CRM: The analysis of customer data for a broad range of purposes.

Operational CRM:
Operational CRM provides support to “front office” business processes, including sales,
marketing and service. Each interaction with a customer is generally added to a customer’s
contact history, and staff can retrieve information on customers from the database as
necessary. Focus on customers value is key to a successful CRM strategy. Different
customers have to be treated differently. Variables like customers ranking, actual value and
potential value are strategy drivers.

Collaborative CRM:
Collaborative CRM covers the direct interaction with customers. This can include a variety of
channels, such as internet, email, or automated phone answering system. It can generally be
equated with “self service”. The objectives of Collaborative CRM can be broad, including
cost reduction and service improvements. Driven by authors from the Harvard Business
School collaborative CRM seems to be the new paradigm to succeed the leading efficient
Consumer Response and Category management concept in the industry/trade relationship.
Many organizations are searching for new ways to use customer intimacy to gain and retain a
competitive advantage. Collaborative CRM provides a comprehensive view of the customer,
with various department pooling customer data from different sales and communication
Analytical CRM
Analytical CRM analyzes customer data for a variety of purposes, including : design and
execution of targeted marketing campaigns to optimize marketing effectiveness design and
execution of specific customer campaigns, including customer acquisition, cross-selling, up-
selling, retention analysis of customer behavior to aid product and service decision making (
eg pricing, new product development, etc) management decisions, e.g. financial forecasting
and customer profitability analysis risk assessment and fraud detular for credit card

Several commercial CRM software packages are available which vary in their approach to
CRM. However, CRM is not just a technology, but rather a holistic approach to an
organization’s philosophy in dealing with its customers. This includes policies and processes,
front-of –house customer service, employee training, marketing , systems and information
management . CRM therefore also needs to consider broader organizational requirements. A
company’s CRM strategy is dependent on both the company’s situation and the needs and
expectations of its customers.

Technology considerations
The technology requirements of a CRM strategy are very complex and far reaching. The
basic building blocks include: A database to store customer information. This can be a CRM
specific database or an enterprise data warehouse. Operational CRM requires customer agent
support software. Collaborative CRM requires customer interaction systems, eg an interactive
website , automated phone systems etc. Analytical CRM requires statistical analysis software
, as well as software that manages any specific marketing campaigns. Support CRM systems
require interactive chat software to provide live help and support to web site.

While there are numerous reports of “failed” implementations of various types of CRM
projects, these are often the result of unrealistic high expectations and exaggerated claims by
CRM vendors.
Privacy and data security:-
`The data gathered as part of CRM must consider customer privacy and data security.
Customers want the assurance that their data is not shared with 3rd parties without their
consent and not accessed illegally by 3rd parties. Customers also want their data used by
companies to provide a benefit for them. For instance, an increase in unsolicited
telemarketing calls is generally resented by customers while a small number of relevant
offers is generally appreciated. Those are fine, elementary goals to obtain. But it’s not
enough. Companies need to reduce the complexities within the organization in both processes
and communication channels so that the benefits of CRM can be measurable and more
concrete. It incorporates applications in marketing, sales, and service to give the individuals
who interact with the customer the ability to access valuable customer information. CRM can
also consolidate that customer view across multiple channels including the Web, call centers,
field service, sales reps, and partners so that they can better market, sell, and service their

The Goal
The primary CRM focus areas support the requirement of the customer-facing processes of a
business: Marketing Automation applications give marketers the ability to create, plan and
execute their campaigns to a targeted audience. By using CRM, marketers can also access the
necessary business intelligence to better understand which campaigns are working and which
customers to target with a specific offer. This type of information reduces wasted time and
money on sending out the wrong promotion to the wrong customer. Sales force Automation
or SFA helps sales people track leads and opportunities for forecasting and to optimize their
sales across all sales channels. SFA also helps reps target whom to call on, what to sell, and
to understand how their customers prefer to buy their goods or services. Customer service
applications enables reps to resolve service issues throughout multiple channels, whether it be
through the web, a call center, fax or field service rep.
Customer Service application and Interaction Center applications enable customers to solve
their own problems on a self-service model for efficient problem resolution. CRM provides
employees with the business intelligence and processes necessary to better understand
customers needs and effectively build relationship between its customer base and its partners.
CRM also links its customers, employees and suppliers over the Web, the phone, fax, in
person and through partners. Companies can then improve relationships with customers, add
value, reduce costs and improve efficiencies in their business processes.
                               History of Insurance in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
(Manusmrithi ) , Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings
talk in terms of pooling of resources that could be re-distributed in times of calamities such as
fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest traces of insurance in the form of marine
trade loans and carriers’ contracts. Insurance in India has evolved over time heavily drawing
from other countries, England in particular.

        1818 saw the advent of life insurance business in India with the establishment of
the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In
1829, the Madras Equitable had begun transacting life insurance business in the Madras
Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades
of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India
(1897) were started in the Bombay Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely Albert Life Assurance, Royal
Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard
competition from the foreign companies.

        In 1914, the Government of India started publishing returns of Insurance Companies
in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to
regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and non-life business transacted
in India by Indian and foreign insurers including provident insurance societies. In 1938, with
a view to protecting the interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for
effective control over the activities of insurers.

        The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there
were a large number of insurance companies and the level of competition was high. There
were also allegations of unfair trade practices. The Government of India, therefore, decided to
nationalize insurance business.
       An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance
sector and Life Insurance Corporation came into existence in the same year. The LIC
absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and
foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was
reopened to the private sector.

       The history of general insurance dates back to the Industrial Revolution in the west
and the consequent growth of sea-faring trade and commerce in the 17th century. It came to
India as a legacy of British occupation. General Insurance in India has its roots in the
establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British.
In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to
transact all classes of general insurance business.

       1957 saw the formation of the General Insurance Council, a wing of the Insurance
Associaton of India. The General Insurance Council framed a code of conduct for ensuring
fair conduct and sound business practices.

       In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.

       In 1972 with the passing of the General Insurance Business (Nationalisation) Act,
general insurance business was nationalized with effect from 1st January, 1973. 107 insurers
were amalgamated and grouped into four companies, namely National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the
United India Insurance Company Ltd. The General Insurance Corporation of India was
incorporated as a company in 1971 and it commence business on January 1sst 1973.

       This millennium has seen insurance come a full circle in a journey extending to nearly
200 years. The process of re-opening of the sector had begun in the early 1990s and the last
decade and more has seen it been opened up substantially. In 1993, the Government set up a
committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose
recommendations for reforms in the insurance sector.The objective was to complement the
reforms initiated in the financial sector. The committee submitted its report in 1994 wherein ,
among other things, it recommended that the private sector be permitted to enter the
insurance industry. They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.

   Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body
in April, 2000. The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower premiums, while
ensuring the financial security of the insurance market.

   The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has
the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from registration of companies for carrying
on insurance business to protection of policyholders’ interests.

  In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a
national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July,

   Today there are 14 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 14 life insurance companies operating in the country.

   The insurance sector is a colossal one and is growing at a speedy rate of 15-20%.
Together with banking services, insurance services add about 7% to the country’s GDP. A
well-developed and evolved insurance sector is a boon for economic development as it
provides long- term funds for infrastructure development at the same time strengthening the
risk taking ability of the country.

Life Insurance Corporation of India (LIC) is a Government of India enterprise, and is said to
be the largest life insurance company and also the largest investor of the country. LIC had
been established on the 1st of September, 1956, after the Life Insurance Corporation Act had
been passed by the Parliament of India in the same year. The corporation is aimed at
providing life insurance services primarily to the rural masses and the socially &
economically backward sections of the Indian society. It also aims at promoting the people
for saving their money, and offers attractive savings features along with various insurance

Vital Details
The headquarters of Life Insurance Corporation of India are located in Mumbai, and as of
April 2009 it has 8 zonal offices, 101 divisional offices and 2048 branches located in
different towns and cities of India. Along with a workforce of 112,184 employees serving the
institution, more than 1 Million agents of the Life Insurance Corporation of India are helping
the people nationwide in adopting the various life insurance policies being offered by the
corporation. Apart from India, LIC is also present in 12 other countries currently, fulfilling
the life insurance needs of its overseas customers most of which are Non Resident Indians
(NRIs). During the financial year 2006-07, the total number of Life Insurance Corporation of
India policy holders were more than 200 Million, which was equal to the population of fourth
largest     populous        country      in      the       world       at      that     time.

Life Insurance Corporation of India has a number of subsidiaries which help it in leveraging
its potential to the maximum, providing an enhanced set of diversified services to its
customers. These subsidiaries include LIC International, LIC Nepal, LIC Lanka, LIC
Housing Finance and LICHFL Care Homes.
Head Office
Life Insurance Corporation of India,
"Yogakshema", Jeevan Bima Marg,
Mumbai - 400021
                           ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is
one of India's foremost financial services companies, and Prudential plc, which is a leading
international financial services group headquartered in the United Kingdom. ICICI Prudential
began the operations in December 2000. Today, this company has over 2100 branches, which
include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners.

ICICI Prudential Life Insurance Company is the first life insurer in India that received a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential
has been voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI
Prudential Life Insurance Company has various insurance plans that have been designed for
different individuals, as every individual has different insurance needs. Given below is a list
of plans provided by ICICI Prudential Life Insurance Company.

Life Insurance Plans

Education Insurance Plans
      Smart Kid New Unit-linked
      Regular Premium
      Smart Kid New Unit-linked
      Single Premium
      Smart Kid Regular Premium
Wealth Creation Plans
      Wealth Advantage
      LifeStage Assure
      LifeTime Gold
      LifeLink Super
      LifeStage RP
Premium Guarantee Plans
      InvestShield Life New
      InvestShield CashBank
Protection Plans
     Pure Protect
     Life Guard
     Save 'n' Protect
     CashBak
     Home Assure
Retirement Solutions
     Life Stage Pension
     LifeTime Super Pension
     LifeLink Super Pension
     ForeverLife Plan
     Immediate Annuity
Health Coverage Plans
     Health Saver
     Medi Assure
     Hospital Care
     Crisis Cover
     Cancer Care
     Diabetes Care Active
     Diabetes Assure
ICICI Pru Group Solutions Advantage
     Group Super Annuation
     Group Gratuity Plan
     Annuity Solutions
     Group Term Insurance Plan
     Group Term Insurance in lieu of EDLI
Rural Plans
     ICICI Pru Suraksha
     ICICI Pru Suraksha Kavach
Micro Insurance Plans
     ICICI Pru Sarv Jana Plan
Contact Address:
ICICI Pru Life Towers
1089 Appasaheb Marathe Marg
Prabhadevi, Mumbai - 400025
                             OBJECTIVES OF THE STUDY

       To gain an insight into the perception of customers towards LIC and ICICI
       To study the satisfaction level among customers towards LIC and ICICI Prudential.
       To gain an insight into the problems faced by the customers.
       To compare the parity between facilities offered by insurance company with respect
to customers expectations.
       To study the awareness level of customers regarding the products/services offered by
both, LIC and ICICI Prudential.

                               SCOPE OF THE STUDY
Over the last few decades companies have increasingly begun to realize the importance of
customer satisfaction. Where trading environment have become saturated and customers
increasingly hard to come by, customer retention has become imperative. Business has
concluded that customer satisfaction can therefore deliver financial benefit providing stability
and a platform for growth, the alternative is a dissatisfied customer who seldom expresses
their complaints they simply buy elsewhere. Customer Satisfaction can be analyzed,
measured and improved, the tools and methods required to build and improve it are wide and
varied, however there is consensus over the basics of a toolkit of processes and polices that
business can exploit as they aim to build customer satisfaction.
This project was based on the study of customer satisfaction level towards LIC and ICICI
Prudential. In this study I worked to know that which bank provide better service to the
customer in relation with the perception of the customer towards the LIC and ICICI

     CHAPTER 3
                             REVIEW OF LITERATURE

       Service permeates every aspect of our lives (John.E.G.Bateson, K.Douglas Hoffman
2000). Globalization, intense competition and application of information and communication
technologies has led every service organization to differentiate their business strategy in
seeking more profits for their long stay in the market. One such strategy is delivering
excellent service quality, for its results in creating brand identity for the organization. Thus
customer service is significantly called as the ‘front door’ of the organization or its face
(Valarie A. Zeithamal and Mary Jo Bitner,2003). With all the firms offering like products,
delivering quality service is the only differentiating factor, for it creates lasting impression in
the minds of customer. Thus quality service is an enriching tool in the hands of an
organization to combat against its competitors.
       Measurement of service has always posed as a debated research area in the field of
service marketing. Based on the serial research of Parasuraman, service quality has been
defined as the degree and direction of discrepancy between customer service perception and
expectation. They have developed and redefined SERVQUAL, a multiple item instrument to
quantify the service expectation-perception gap along five generic dimensions: Tangibility,
Reliability, Responsiveness, Assurance and Empathy.
It has been identified that to maximize customer satisfaction, different player in the
competitive life insurance industry in India need to concentrate on the responsiveness
dimension of the service quality (Paromita Goswami 2007). Further, the customer oe LIC are
not highly satisfied with any of the service quality dimension when compared with the private
players like ING Vyasa, TATA and HDFC (Gayathiri. H, Vinaya M.C and Lakshmisha. K,
2005) The survey focused to find out the difference between the expectation and perception
of the policyholder.
                                RESEARCH METHODOLOGY
       Research is the art of scientific investigation. The advanced learner's dictionary of
current. English lays down one meaning of research as a careful investigation or on enquiry
specially through search for new facts in any branch of knowledge. Some people consider
research a movement turn the known to unknown.
       The term research refers to on systematic method consisting of enunciating the
problem formulation hypothesis either in the form of solution towards the concern had
problems or in certain generalization for some theoretical formulation.
The research design is the blueprint for the fulfillment of objectives and answering questions.
It is a master plan specifying the method and procedures for collecting and analyzing needed
information or the other way it can be said that research design is the conceptual structure
within which the research is conducted. Its function is to provide for the collection of relevant
evidence with minimum expenditure of effort, time and money but how this can be achieved
depends upon the research purpose.

The designs of a research include the following five:
1.     Collection of data
2.     Organization of data
3.     Presentation of data
4.     Analysis of data
5.     Interpretation of data
1. Collection of data:
Data collection is in fact the most important aspect of any survey. The term data means
quantitative data. The information capable of numerical expression is only include.
Qualitative aspect can only be studied when expressed numerically.
2. Organization of data:
       After the data has been collected, the next step is to organize the data in some orderly
and logical form so that their essential features may become explicit. Organization is the
process or arranging things in group according to their resemblances and affinities.
3. Presentation of data:
After organization of data, next step is to present the data in such clear and attractive manner
so that these are easily understood and conclusions are drawn thereof. Following are the main
methods of presentation of data:
      Tables
      Diagrams
      Graphs
4. Analysis of data:
       The fourth step after presentation of data is the analysis of data as a large number of
big figures are confusing in mind. To draw conclusions it is very much necessary to analyze
the data. In order to reduce the complexity of data and to make them compared, it is essential
that the various figures, which are being compared, be reduce to one single figure each.
5. Interpretation of data:
Under this method, conclusions are drawn after analyzing the data. Two or more kinds of
data are compared and conclusions drawn. Even a layman may understand them. The
conclusions are expressed in simple and easy language. On the basis of such conclusions
future estimates and suggestions are made.
      Most of the respondents are highly satisfied from their insurance company.
      Most of the respondents are prefer the LIC in comparison to ICICI Prudential.
      Most of the respondents are pay premium on time.
      Most of the respondents are influence by the high reputation of the company.
      Most of the respondents are agree that their insurance company branch is fully
The data includes primary and secondary data.
Primary data
Primary data has been collected directly from sample respondents through questionnaire and
with the help interview from the respondents.
Secondary data
Besides the primary data help from the secondary data has also been taken in the study. The
information regarding industry has been derived from book, magazines, internet etc.
                                         TABLE 4.1

Are you insured?                                      Respondents'
                                         Number                        Percentage
Yes                                         50                            100
No                                          __                            __
Total                                       50                            100
Source - Sample Survey
According to table 4.1 show that all of the respondents are insured.



                                         TABLE 4.2

From which sector are you                              Respondents'
insured?                                   Number                          Percentage
Private insurance company                     14                                  28
Public insurance company                      30                                  60
Both                                          6                                   12
Total                                         50                                 100
Source - Sample Survey
It is clear from table 4.2 that 28percent of the respondents are insured from private insurance
company, 60percent of the respondents are insured from public insurance company and 12
percent of the respondents are insured from both the company.

                                                           Private insurance company
                                                           public insurance company


                                        TABLE 4.3

How do you pay premium?                               Respondents
                                          Number                    Percentage
Monthly                                        1                           2
Quarterly                                      5                          10
Half yearly                                    9                          18
Yearly                                         35                         70
Total                                          50                       100
Source - Sample Survey
According to table 4.3 shows that 2percent of the respondents are pay premium on monthly
basis, 10percent of the respondents are pay premium on quarterly basis, and 18percent of the
respondents are pay premium on half yearly basis, 70percent of the respondents are pay
premium on yearly basis.

                                                                     Half yearly



                                           TABLE 4.4

Are you regularly paying                               Respondents'
premium?                                   Number                     Percentage
Yes                                          48                          96
No                                           2                            4
Total                                        50                          100
Source - Sample Survey
It is prove from table 4.4 that 96percent of the respondents are pay premium on time and
4percent of the are not pay premium on time. This analysis proves the hypothesis.



                                        TABLE 4.5

From which insurance                                Respondents'
company you are insured?               Number                       Percentage
LIC                                         34                          68
ICICI Prudential                            16                          32
Max New York                                __                          __
HDFC Standard                               __                          __
Any other                                   __                          __
Total                                       50                          100
Source - Sample Survey
According table 4.5 shows that 68 percent of the respondents are insured from LIC and
32percent of the respondents are insured from ICICI Prudential.


                                                                              ICICI Prudential
                                                                              Max New York
                                                                              HDFC Standard
                                                                              Any other

                                          TABLE 4.6

What factors influence you to                             Respondents'
invest the particular company?                Number                       Percentage
High reputation                                  34                               68
CRM                                               3                                6
Good promotion schemes                            5                               10
Relationship with agent                           6                               12
Any other                                         2                                4
Total                                            50                              100
Source - Sample Survey
It is clear from table 4.6 that 68percent of the respondents influence by high reputation,
10percent of the respondents influence by good promotional schemes, 12percent of the
respondents influence by good relationship with agent. This analysis proves the hypothesis.

                                                                     High reputation
                                    4                                CRM
                                                                     Good promotion schemes
                                                                     Relationship with agent
            10                                                       Any other

                                          TABLE 4.7

Which type of insurance plan                              Respondents'
are you availing?                             Number                      Percentage
Endowment policy                                   3                          6
Ulip plan                                          27                         54
Money back policy                                  14                         28
Any other                                          6                          12
Total                                              50                        100
Source - Sample Survey
It is clear from table 4.6 that 54percent of the respondents have ulip policy, 28percent of the
respondents have money back policy and 12percent of the respondents have other type of

                           12                  6

                                                                              Endowment policy
                                                                              Ulip plan
                                                                              Money back policy
                                                                              Any other

                                         TABLE 4.8

Who influence you to get insured?                              Respondents'
                                                       Number               Percentage
Insurance agent                                           38                      76
Electronic media                                          __                      __
Print media                                               12                       4
Friends & relative                                        10                      20
Total                                                     50                     100
Source - Sample Survey
It is reveals from table 4.7 that 76percent of the respondents are influence by insurance agent
and20percent of the respondents are influence by friends & relative.


                                                                              Insurance agent
                                                                              Electronic madia
                                                                              Print media
                                                                              Friends & relative

                                       TABLE 4.9

If you were buy another policy of                        Respondents'
insurance than would you buy the             Number                 Percentage
insurance policy in the same
company you have invested ?
Always                                          37                      74
Sometime                                         8                      16
Often                                            5                      10
Never                                           __                      __
Total                                           50                      100
Source - Sample Survey
It is prove from table 4.8 that 74percent of the respondents prefer the same company,
16percent of the respondents prefer the same company sometime and 10percent of the
respondents prefer the same company often for buy the another insurance policy.

                               10        0

             16                                                          Sometime

                                        TABLE 4.10

Whether your insurance                                  Respondents'
branch is computerized?                     Number                     Percentage
Yes                                           48                           96
No                                            2                            4
Total                                         50                          100
Source - Sample Survey
It is prove from table 4.8 that 96percent of the respondents say that their insurance branch is
computerized, This analysis proves the hypothesis.



                                               TABLE 4.11

What is the extent of                                                  Respondents'
computerized?                            ICICI Prudential                                           LIC

                                      Number             percentage          Number                   percentage
Fully                                    12                        24               29                           58
Partially                                2                         4                 4                            8
Can’t say                                1                         2                 2                            4
Total                                    15                        30               35                           70
Source - Sample Survey


               60                58



                                                                                                    ICICI Prudential



               10                                              8

                                               4                                                4

                         Fully                     Partially                        Can't say

ICICI Prudential
      24% people are agreeing that their branch is fully computerized.
      4% people are agreeing that their branch is partially computerized.

      58% people are agreeing that their branch is fully computerized.
      8% people are agreeing that their branch is partially computerized.

From above table and chart it has been concluded that most of the people say that LIC branch
are fully computerized.
                                                              TABLE 4.12

Are you satisfied the                                                        Respondents'
services provided by the                                 ICICI Prudential                                      LIC
insurance company?
                                                  Number            percentage               Number             percentage
Highly satisfied                                         7               14                    27                    54
Satisfied                                                5               10                     6                    12
Neutral                                                  2               4                      2                    4
Dissatisfied                                             1               2                     __                    __
Highly dissatisfied                                      __              __                    __                    __
Total                                                    15              30                    35                    70
Source - Sample Survey





                     30                                                                         ICICI Prudential



                                                              4      4
                                                                                      0             0      0
                          Highly satisfied   Satisfied         Neutarl        Dissatisfied     Highly dissatisfied
ICICI Prudential
      14% people are highly satisfied from their insurance company.
      10% people are satisfied from their insurance company.

      54% people are highly satisfied from their insurance company.
      12% people are satisfied from their insurance company.

From above table and chart it has been concluded that most of the people are highly satisfied
from LIC branch, This analysis proves the hypothesis.
                                       TABLE 4.13

Do you think that the services of                        Respondents'
ICICI Prudential are more advance              Number               Percentage
than LIC?
Yes                                               27                    54
No                                                23                    46
Total                                             50                    100
Source - Sample Survey
Table 4.11 shows that 54percent of the respondents say that ICICI Prudential are more
advance than LIC. This analysis proves the hypothesis.



                                        TABLE 4.14

What was your source to                              Respondents'
invest in insurance                     Number                            Percentage
Financial journals or                       2                                     4
business magazines
Reference group                             32                                   64
Television                                  1                                     2
Agent or professional                       15                                   30
Total                                       50                                  100
Source - Sample Survey
It is prove from table 4.8 that 64percent of the respondents invest in insurance by reference
group, 30percent of the respondents invest in insurance by agent or professional consultant..



                                                               Financial journals or business magazines
                                                               Reference groups
                                                               Agents or professional consultants
                             LIMITATION OF PROJECT

Like any other study is also subject to certain limitations. These are explained here under, so
that the finding of this study can be seen in their proper prospective:

      Due to large number of LIC & ICICI Prudential service users, it was difficult that
approach each and every user so the research has to be limited to simple size of 50
      The selection of respondents was based on random sampling & it might not be a true
representative of the entire population.
      Although utmost care has been taken to get accurate results, yet because of the risk of
ambiguities & misinterpretation on the part of the respondents, some element of inaccuracy
could have crept in.
      Since a small sample size has been taken, the possibility of sampling errors can not be
ruled out in the research study.
      Most part of the survey was conducted through personal interviews so personal bias
may have crept in.
      Area of study was Dehradun, it does not represent the entire population. Therefore the
findings may not hold true for large cross section of population.
      The constraint of time and finance also prevented an in-depth study of the subject.
                              ANALYSIS & FINDINGS

From the survey conduct of comparative analysis of LIC & ICICI Prudential the following
conclusions can be arrived at:-
      All of the respondents are insured.
      60% of the respondents are insured by LIC.
      70% of the respondents are pay premium on yearly basis.
      96% of the respondents are pay premium or regular basis.
      68% of the respondents are insured by LIC.
      68% of the respondents are influence by the high reputation of the particular
      58% of the respondents are availing the ulip plan.
      76% of the respondents are influence to get insurance by insurance agent.
      74% of the respondents are preferred to buy another policy by the same company.
      96% of the respondents are saying that their insurance branch is computerized.
      Most of the respondents are saying that their insurance branch is fully computerized.
      Most of the respondents are highly satisfied for provide the services by insurance
      54% of the respondents are saying that the services of ICICI Prudential are more
advance than LIC.
      Most of the respondents are investing in insurance by influence their reference group.

      LIC & ICICI Prudential should work upon building good reputation of its brand as
good reputation has direct effect on purchase of insurance product.
      LIC & ICICI Prudential should work upon raising the awareness of the product and
give more option and provide transparency so as to make selling of its product easier.
      Advertising of the insurance product should stress on the need of security.
      Insurance should be popularized as the means of securing future rather than saving
      Policies should be issued quickly and with less formality.
      Other services should be provided.
      Reference group are the most effective medium of advertising insurance.

Over the last few decades companies have increasingly begun to realize the importance of
customer satisfaction. Where trading environments have become saturated and customers
increasingly hard to come by, customer retention has become imperative as the customer-to-
business level in the Indian context; the disconfirmation paradigm is still the predominant
paradigm influencing the customer satisfaction process. As it is pivotal in this competitive era
of globalization as every player in this banking industry is making various efforts to increase
its pie share or if no increase at least maintains their market share.

In relation to the primary research analysis undertook by me, inference can be portrayed that
people are incline towards the LIC as they find them more reliable and they also prefer
because of their long term relationship with the customer segment.

So last we can say that for the insurance sector to succeed they must pay close attention to the
revealed choice criteria of the customer in their decision making activity. Therefore customer
relationship management programs must be designed to keep the customers intact that
includes aligning product and service offerings with customer needs can only be achieved
when sufficient knowledge of customer requirement has been captured. Thus accurately
understanding the customer’s need is the most important step towards achieving customer

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Description: Customer satisfaction a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a scorecard. In a competitive marketplace where business compete for customer, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.