Download - LIC COSTOMER PERCIPTION
-
7/31/2019 LIC COSTOMER PERCIPTION
1/64
1
INTRODUCTION
Consumer Perception:
Consumer perception theory is any attempt to understand how a consumers perception ofa product or service influences their behavior. Those who study consumer perception try to
understand why consumers make the decisions they do, and how to influence these decisions.
Usually, consumer perception theory is used by marketers when designing a campaign for a
product or brand. However, some people study consumer perception in order to understand
psychology in a much more general sense.
Perception:
In general psychological terms, perception is our ability to make some kind of sense of
reality from the external sensory stimuli to which we are exposed. Several factors can influence
our perception, causing it to change in certain ways. For example, repeated exposure to one kind
of stimuli can either make us oversensitive or desensitized to it. Additionally, the amount of
attention we focus on something can cause a change in our perception of it.
What Is PERCEPTION?
Perception is a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment. However, what one perceives can
be substantially different from objective reality. It need not be, but there is often
disagreement. For example, its possible that all employees in a firm may view it as a great
place to work- favorable working conditions, interesting job assignments, good pay, an
understanding and responsible managementbut , as most of us know, its very unusual to
find such agreement.
Factors That Influence Perception:
A number of factors operate to shape & sometimes distort perception. These factors
can reside in the perceiver, in the object or target being perceived, or in the context of the
situation on which the perception is made.
-
7/31/2019 LIC COSTOMER PERCIPTION
2/64
2
a) Factors in the perceiver:
Attitudes Motives Interests Experience Expectations
b) Factors in the situation:
Time Work setting Social setting
c) Factors in the target
Novelty Motion Sounds Size Background Proximity Similarity
CUSTOMER BEHAVIOUR :
Behavior is a mirror in which everyone shows his or her image. Behavior is a process of
responding to stimuli. Consumer behavior is to do with the activities of individuals in obtaining
and using the goods and services. It encompasses the decision making process that precedes and
determines purchases. In the words Prof. C.G. Walter and Prof. G.W. Paul it is The process
whereby individuals decide whether, what, when, where, how and from whom to purchase goods
and services.
-
7/31/2019 LIC COSTOMER PERCIPTION
3/64
3
Consumer or Customer behavior is all the psychological, social and physical behavior of
potential customers as they become aware of evaluate, purchase, consume and tell others the
products or services.
Factors Influencing Consumer Behaviour:
Social and Cultural InfluencesCulture is learned behavior that has been passed down over time, reinforced in our daily
lives through the family unit and through education and religious institutions. Culture influences,
therefore, are powerful ones and if the company does not understands the culture in which the
particular market operates it cannot hope to develop products and market them successfully.
It is important to recognize that culture although immensely powerful is not fixed forever.Change in culture tends to be slow and not fully assimilated until a generation or more has
passed.
Specific social influences Social class
This is the most prominent social influence. Traditionally, one of the chief determinants
of social class was income. Since pay structures have altered a great deal in terms of the lower
C2, D, and E categories moving more towards levels previously enjoyed by higher A, B and C1
categories over the past 30 years or so, classification of consumers on the basis of lifestyle is
becoming more meaning today.
Reference groupsThis can be described as group of people whose standards of conducts of mould an
individuals dispositions, beliefs and values. This group can be small or large. Reference groups
can range from the immediate family to the place of work. They can also be found in a pe rsons
social life. An individual is unlikely to deviate too far from the behavioral norms led down by the
members of a club or hobby group. Reference group, but it does state that individualism cannot
exist within a group, but it does suggest that even rigid independent thinkers will at least be
aware of what is considered normal within a group.
-
7/31/2019 LIC COSTOMER PERCIPTION
4/64
4
MotivationMarketers are interested in motivation when it relates to purchasing behaviour. This
behaviour relates to the motive for wishing to posses the goods or services in question, and it has
been termed goal-related behaviour. It can, therefore, be seen that a number of motives might
be at play when making a purchaser decisionsome motives stronger than othersand the final
decision might be a compromise solution.
CUSTOMER SATISFACTION:
The liberalization and globalization of Indian economy has taken place almost a decade
ago, the focus point in any organization is Customer satisfaction. The phase such as Customer
is king in our business, service to customer is service to god are no more a myth but turned
out to be a reality. Customer satisfaction is the base of any business expansion because of the
stiff competition prevalent in the market.
Whether the buyer is satisfied after the purchase depends on the offers performance in
relation to the buyers expectation. In general; satisfaction is a persons feeling of pleasure or
disappointment resulting from comparing a products perceived performance ( or outcome) in
relation to his or her expectation.
As this definition makes clear, satisfaction is a function of perceived performance and
expectation. If the performance falls short of expectations, the customer is dissatisfied. If the
performance matches the expectations the customer is satisfied.
Perception
Unlike motivation that requires a reaction to a stimulus, perception relates to the meaning
that is assigned to that stimulus as marketers are interested in how buyers perceive and react to
products in relation to such matters as quality, aesthetics, price and image, since products not
only exist in partial terms but also how they are perceived by consumers in relation need
satisfaction. This perception by buyers is affected by the nature of the product itself, by the
circumstances of the individual buyer and by the buyers innate situation in terms of how ready
they are to make the purchase in terms of needing it at a particular point of time.
-
7/31/2019 LIC COSTOMER PERCIPTION
5/64
5
Attitude:
Our strongest basic attitudes are implanted in our formative years and these come largely
from the influence of our close family group and other social interaction. More refined attitude
develops later. In marketing terms, the sum total of our attitudes can be regarded as a set of
cognitions that a potential buyer has in relation to a potential purchase or purchasing
environment. This is why certain stores or companies go out of their way to engender favorable
attitude and it is why manufacturer seek to induce loyalty towards their particular brand or
product.
Learning
In the context of marketing, learning is a result of information received through
advertising or other publicity or through some reference group or other. In order to have an effect
on motives or attitudes, marketing effort should associate the product with positive drives and
reinforcing messages.
LIFE INSURANCE IN INDIA:
Life insurance in India made its debut well over 100 years ago.In our country, which is
one of the most populated in the world, the prominence of insurance is not as widely understood,
as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life
insurance, with special reference to LIC it should, however, be clearly understood that the
following content is by no means an exhaustive description of the terms and conditions of an LIC
policy or its benefits or privileges. For more details, please contact our branch or divisional
office. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs
and render policy servicing.What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his
nominee) on the happening of the event insured against. The contract is valid for payment of the
insured amount during:
The date of maturity, or Specified dates at periodic intervals, or
-
7/31/2019 LIC COSTOMER PERCIPTION
6/64
6
Unfortunate death, if it occurs earlier.Among other things, the contract also provides for the payment of premium periodically to
the Corporation by the policyholder. Life insurance is universally acknowledged to be an
institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely
aid of the family in the unfortunate event of death of the breadwinner. By and large, life
insurance is civilizations partial solution to the problems caused by death. Life insurance, in
short, is concerned with two hazards that stand across the life-path of every person:
1. That of dying prematurely is leaving a dependent family to fend for itself.2. That of living till old age without visible means of support.
Customer satisfied with LIC service because the LIC totally concentrate
customer relations and it makes customers attract towards the LIC
OBJECTIVES OF THE STUDY:
The main objective of this study is to carry on brief study on Customer satisfaction
survey on insurance products of LIC
Other objectives of this project are as follows:
To identify the insurance needs of the Indian pepole with respect to their emotional,physical and financial conditions.
To study the varied reasons of availing life insurance plans To clearly understand the rationale behind the investment in policies of LIC. To test the awareness of customers on various aspects of life insurance policies offered
by LIC and other private sector insurance companies and find whether there is any
relation between them.
The prime objective of the study is to find out the level of satisfaction of a customer(policy holders or beneficiary)
find out the procedure of claim policy holder or the beneficiary
-
7/31/2019 LIC COSTOMER PERCIPTION
7/64
7
Scope of the Study:
To know and understand the different pensions plans as policy as two leading insurance
company in insurance sector by study and analysis that how and in what manner they attract the
customers of different age and salary groups.
METHODOLOGY:
For the preparation of this report the collection of relevant data is very essential. he data
collected for this study is a (1) Primary data (2) Secondary data.
PRIMARY DATA :
Selected 50 people from various people by interview them with the particular
questionnaire the primary data was collected
By the directly knowing the information
Primary data has been gathered by interviewing the manager and other officials of L.I.C
of India
SECONDARY DATA:
Secondary data are the other important sources through which the data is collected. These
are the readily available sour5ces of data where one had needed not put much effort. To
collected because it is already been collected and part in an elderly manner by some researchers,
experts and specialties.
The sources of data is
BOOKS
NEWSPAPERS
INTERNET
BUSINESS MAGAZINES
-
7/31/2019 LIC COSTOMER PERCIPTION
8/64
8
LIMITATION OF STUDY:
As the study has been restricted to certain area of the Karimnagar city, therefore theresults cannot be generalized.
Sometimes error caused by variations between the information sort by researcher andthe information given by the respondents.
There will be unwilling by the customer when the information regarding age,occupation, and income, & education, then wrong information is given.
The respondents could have given wrong responses due to the presence of theresearcher, as their behavior is conditional.
The limit for the project is only 2 months.
-
7/31/2019 LIC COSTOMER PERCIPTION
9/64
9
COMPANY PROFILE
About the organization:
Life Insurance in its modern form came to India from England in the year 1818. Oriental
Life Insurance Company stated by Europeans in Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during that period were brought up with the
purpose of looking after the needs of European community and Indian natives were not being
insured by these companies.
However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were being treated as sub-
standard lives and heavy extra premiums were being changed on them. Bombay Mutual Life
Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and
covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives,
insurance companies came tito existence to carry the message of insurance and social security
through insurance to various sectors of society. Bharat Insurance Company (1896) was also one
of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to
more insurance companies. The United India in Madras, National Indian and National Insurance
in Calcutta and the Hindustan Co-operative Insurance Company took its birth in one of the
rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian
Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912. India had no legislation to regulate
insurance business.
In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables
and periodical valuations of companies should be certified by an actuary. But the act
discriminated between foreign and Indian companies on many accounts, putting the Indian
companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in force as Rs. 22.44 crore, it rose to
-
7/31/2019 LIC COSTOMER PERCIPTION
10/64
10
176 companies with total business-in-force as Rs. 298 crore in 1938. During the mushrooming of
insurance companies many financially unsound concerns were also floated which failed
miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but
also non-life insurance to provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of nationalization,
nationalization was accomplished in two stages; initially the management of the companies was
taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive
bill. The Parliament of India passed the Life Insurance Corporation Act on the 19 th of June 1956,
and the Life Insurance Corporation of India was created on 1st September, 1956, with the
objective of spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial cover at a
reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from
its corporate office in the year 1956. Since life insurance contracts are long term contracts and
during the currency of the policy it requires a variety of services need was felt in the later years
to expand the operations and place a branch office at each district headquarter, re-organization ofLIC took place and large numbers of new branch offices were opened. As a result of re-
organization servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It may be seen that
from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only
in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new
business. But with re-organization happening in the early eighties, by 1985-86 LIC had already
crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices,
7 zonal offices and the corporate office. LICs Wide Area Network covers 100 divisional offices
and connects all the branches through a Metro Area Network. LIC has tied up with some Banks
and Service providers to offer on-lint premium collection facility in selected cities. LICs ECS
-
7/31/2019 LIC COSTOMER PERCIPTION
11/64
11
and ATM premium payment facility is an addition to customer convenience. Apart from on-line
Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and many other conveniences in
the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has
issued over one crore policies during the current year. It has crossed the milestone of issuing
1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the
corresponding period of the previous year. From then to now, LIC has crossed many milestones
and has set unprecedented performance records in various aspects of life insurance business. The
same motives which inspired our forefathers to bring insurance into existence in this country
inspire us at LIC to take this message of protection to light the lamps of security in as many
homes as possible and to help the people in providing security to their families.
Some of the important milestones in the life insurance business in India are: 1818:
Oriental Life Insurance Company, the first life insurance company on Indian soil started
functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
-
7/31/2019 LIC COSTOMER PERCIPTION
12/64
12
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the year 1850
in Calcutta by the British.
LIFE INSURANCE CORPORATION OF INDIA (LIC):
The Life insurance Corporation was established about 44 years ago with a view to
provide an insurance cover against various risks in life. A monolith then, the corporation,
enjoyed a monopoly status and become synonymous with life insurance. Its main asset is its staff
strength of 1.24 lakhs employed and 2,048 branches and over six-lakhs agency force. LIC has
hundred divisional offices and has established extensive training facility at all levels. At the
apex, is the Management Development Institute, seven zonal Training Centre and 35 sales
Training Centers. At the industry level, along with the Government and the GIC, it has helped
establish the National Insurance Academy. It presently transacts individual Life Insurance
business, group Insurance business, social security schemes and Pensions, grants housing loans
through its subsidiary. And the markets savings and Investment products through its mutual
fund. It pays off about Rs 6,000 crores annually to5.6 million policyholders
-
7/31/2019 LIC COSTOMER PERCIPTION
13/64
13
LIC OPERATES ALL OVER INDIA
-
7/31/2019 LIC COSTOMER PERCIPTION
14/64
14
COMPANY PROFILE
Type: Public limited company or Government-owned corporation Founded: September 1,1956
Headquarters: Headquarters in Mumbai, India (Various other locations in India andabroad)
Products: Insurance and Pension Plans Employees: Over 10, 00,000 Parent: NIL Subsidiaries: LIC Housing Finance Limited, etc. Website: http://www.licindia.com
BOARD OF DIRECTORS:
Members On The Board Of The Corporation
Shri. D.K. Mehrotra (Managing Director - LIC)
Shri. Thomas Mathew T. (Managing Director - LIC)
Shri. A.K. Dasgupta (Managing Director - LIC)
Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)
Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of Finance, Govt. of
India.)
-
7/31/2019 LIC COSTOMER PERCIPTION
15/64
15
Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)
Shri D.L. Rawal (Chairman & Managing Director , Dena Bank)
Dr. Sooranad Rajashekhran
Shri. Monis R. Kidwai
Lt. General Arvind Mahajan ( Retd.)
MISSION/VISION:
Mission
Explore and enhance the quality of life of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering resources
for economic development.
Vision
A trans-nationally competitive financial conglomerate of significance to societies andPride of India.
LIC of India is the one and only public sector life insurance Company in India.Milestones:
Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance companystarted its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses.
-
7/31/2019 LIC COSTOMER PERCIPTION
16/64
16
1938: Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by thecentral government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to theTriton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
ORGANISATION STRUCTURE OF LIC:
Chairman
Managing Director
Executives Directors
Chiefs
Zonal Managers
Regional Managers
Divisional Managers
100 Seniors Divisional Managers
-
7/31/2019 LIC COSTOMER PERCIPTION
17/64
17
Marketing Managers
Sales Managers
Senior Branch Managers (Head of the Branch)
Assistant Branch Managers Sells
Development Officers
Different Agent
PUBLIC RELATION DEPARTMENT:
The Public Relation Department in LIC is divided into three major categories. Namely:
1. Communication Department
2. Crisis Management Department
3. Publicity Department
Chief Public Relation Officer
PRO (Communication Dept.)
PRO (Crisis Management Dept.)
PRO (Publicity Dept.)
-
7/31/2019 LIC COSTOMER PERCIPTION
18/64
18
DEPARTMENTS:
CHAIRMAN OF LIC
PUBLIC RELATIONS
COMMUNICATION DEPARMENT
PUBLICITY DEPARMENT
CRISIS MANAGEMENT DEPATMENT
CHIEF PUBLIC RELATION OFFICER:
The Chief Public Relation Officer of LIC is Mr. M. V. Kulkarni. He heads the PR
department. The above three committees are under the PRO. The PRO is responsible for theoverall functioning of the PR department. He has to monitor the smooth functioning of the three
departments.
Responsibilities Of Chief Public Relation Officer:-
1. PR represents whole organization.2. Should know how to behave in a certain situation.3. He is not a person, he is representative.4. Should know how to create enthusiasm.5. In crisis he has to give feedback as soon as possible.
-
7/31/2019 LIC COSTOMER PERCIPTION
19/64
19
Objectives And Functions Of Chief Public Relation Officer:-
1. The PRO is directly answerable to the Chairman Shri. T.S. Vijayan.2. The PRO looks after all the activities of the three departments all over India.3. Also he has to keep in close touch with the over-seas PR departments of LIC.4. All the policies implemented in India are informed to other PROs of the over-seas
branches of LIC.
5. The PRO monitors the norms and values of all the branches.6. The new rules and regulations in India are informed to the PROs of the over-seas
branches.
7. The PRO also holds regular workshops for the top management employees to motivatethem to lift the spirit of the work culture.
8. The PRO also has to provide information about latest policies to the communicationdepartment and ask them to public or air it through various mediums.
9. Since a major share of workload of LIC is in the public sector, the PRO has to look aftersocial responsibility as well as maintaining the image of the company.
Communication Department
The PRO of this Department is an external PR.
He looks after:-
1. Arranging press conferences, press releases and is in constant contact with the media.2. He is also responsible for monitoring the overseas communications.3. The Communication Department PRO has to make arrangements for the guests and their
overall honors. The conversations with the guests are directly done by the
Communication Department PRO.
4. The PRO from this department should always keep a close eye on the latest happeningsin the market. Any social issue at any area is news to be worked out for him.
5. He reports directly to the Chief PRO of the company.
-
7/31/2019 LIC COSTOMER PERCIPTION
20/64
20
6. The Press conference usually includes the CEO of the company, the Chief PRO and theCommunication Dept. PRO.
7. If the case is of crisis, then only is the Crisis management Dept PRO present for the Pressconference.
8. Since LIC is closely related with the Public Sector, the Communication Dept. PRO has toalso be in a close contact with the government officials.
9. He also has to motivate the employees in his department for constant progress in thestrategies for communication.
10.In short, the communication Department PRO ensures that there is no communicationgap between the company and the external concerned bodies.
11.(Recent press releases of LIC issued by Communication Department PRO enclosed).CRISIS MANAGEMENT DEPARTMENT:
The PRO in this department is an internal one. From the overall history of LIC, it is seenthat the company has never been into any major crisis. This itself is one of the best
achievements.
He is answerable to the Chief Public Relation Officer. The PRO from crisis management, though is here to handle crisis, he has been assigned
many other internal responsibilities.
1. Motivating the lower employees, sales executives and sales and marketing employees.2. Building up a smooth communication between the Blue Collar and the White Collar.3. Arranging small workshops for all the employees.4. He also has to know the issues going within the other departments so that these issues are
solved before they create crisis.
The strategy used by the PR here for crisis management is:-
Wash the utensil before having food in it.
Thus all the employees right from the day of joining are kept in close contact with the
Crisis Management Dept. And regular workshops help to restrict cases like Corruption. With a
-
7/31/2019 LIC COSTOMER PERCIPTION
21/64
21
company so closely associated with the government, restricting such practices is very difficult
task.
Publicity Department:
The PRO of the publicity Department is an External PR. This department was formed due to the fall of sales in the 1999. This fall was due to the
emergence of the foreign insurance companies and their advertising strategies. Initially,
the ads shown by LIC always said no worry even after death. All the ads portrayed
death. The other insurance companies came up with the idea that insurance is for happy
life. Thus the sales of LIC went down as people liked the idea of Life more than Death.
Hence a separate publicity department was formed which worked only for publicitystrategies. Initially it was looked up by the Communication Department.
Today the publicity department PRO has to see to it that all the ads running are creatingeffect. The PRO is the one who along with the Marketing department looks after the
strategies for publicity. He is also to carry out various campaigns.
The very recent campaign is known as Zindagi Express. The Zindagi Express is a term that has been associated to the life of LIC. Just as humans celebrate their 50 years of life, even LIC is celebrating its life. And when
any person has done a lot in his life, he is capable of writing an Autobiography. Thus
Zindagi Express is an Autobiography by LIC.
They had started this unique campaign of auto biography from Delhi and will cover theentire nation and end up in Delhi again. During this journey they explain what all LIC has
done for publics and what all it still intends to do
To satisfy the consumers in LIC they make effective public relations and consumer
relations
-
7/31/2019 LIC COSTOMER PERCIPTION
22/64
22
S.W.O.T. ANALYSIS OF LIC:
A proper S.W.O.T. analysis of LIC has also been conducted to know better about the
position, growth, and upcoming future and prospective of the company.
STRENGTHS:
LIC is on 1st rank among the Insurance player. Long-term plans of LIC are the main strength. After sales services. Products cost are very low. Customer does not believe on private company.
WEEKNESS
Low interest rateOPPORTUNITIES
Good brand promotion. 1/2nd- % insurance has been covered.
THREATS
Competitors. Entry of Private Insurance banks.
-
7/31/2019 LIC COSTOMER PERCIPTION
23/64
23
AWADRS:
Awards Received in 2011-12
Readers Digest Superbrands
Asian Leadership Awards ET Brand Equity's Most Trusted
CNBC AWAAZ Dainik Bhaskar Group
-
7/31/2019 LIC COSTOMER PERCIPTION
24/64
24
Awards Received in 2010-11
CNBC Awaz Consumer AwardET Brand Equity Award for Top
Brand in Insurance Category
Outlook Money Award for Best Life
InsurerAIMA High Performance Award
Readers Digest Trusted BrandGolden Peacock Award for Corporate
Governance
-
7/31/2019 LIC COSTOMER PERCIPTION
25/64
25
THEORETICAL ASPECTS OF THE STUDY
Definition of service quality:
"Service quality is a focused evaluation that reflects the customer's perception of specific
dimensions of service: reliability, responsiveness, assurance, Empathy, tangibles. Satisfaction, on
other hand, is more inclusive: it is influenced by perceptions of service quality, product quality,
and price as well as situational factors and personal factors.
The five service dimensions are:
TANGIBLES:
Appearance of physical facilities, equipment, personnel, and communication materials
ABILITY:
Ability to perform the promised service dependably and accurately
RESPONSIVENESS:
Willingness to help customers and provide prompt service
ASSURANCE:
Knowledge and courtesy of employees and their ability to convey trust and confidence
EMPATHY:
Caring, individualized attention the firm provides its customers
Strong customer service is a business essential. Providing it isnt as difficult if you and your
employees achieve these 10 basic rules:
-
7/31/2019 LIC COSTOMER PERCIPTION
26/64
26
1. Commit to quality service:In LIC of India Everyone devoted to creating a positive experience for the customer.
Always try to go above and beyond customer expectations.
2. Knowledge about products:Convey an articulate and in-depth knowledge of products and services to win customer
trust and confidence. They know their companys products, services, and return policies
inside and out. Also try to anticipate the types of questions that customers will ask. Anyone
can easily Update and amend their FAQ page frequently.
3. Know your customers.They can try to learn everything about the customers in order to tailor their service
approach to customers needs and buying habits. Talk to customers about their experience
with the company, and listen their complaints. In this way, they can get to the root of
customer dissatisfaction.
4. Treat people with courtesy and respect:Employee or the agents of the LIC of India always treat or react with respect to their
customers. Whether its by email, phone, written correspondence, or a face-to-face meeting.
This interaction leaves an impression with that customer. Use conciliatory phrases "Sorry
to keep you waiting," "Thanks for your order," "Youre welcome," and "Its been a pleasure
helping you" etc.
5. Never argue with a customer:They know very well that the customer isnt always right. However, they do not focus on
the missteps of a particular situation; instead, concentrate on how to fix it. Research shows
that 7 out of 10 customers will do business with a company again if that business resolves a
complaint in their favor.s
-
7/31/2019 LIC COSTOMER PERCIPTION
27/64
27
6. Dont leave customers in limbo:LIC agents or employee Repairs, callbacks, and emails handled with a sense of urgency.
They know Customers want immediate resolution, and if they can give it to them, they will
probably win their repeat business. Research shows that the instance of repeat business goes
up to 95 percent when complaints are resolved on the spot.
7. Always provide what you promise:They know very well that if they fail to do this than they will lose both credibility and
customers. If they guarantee a quote within 24 hours, they quote out in a day or less. when
they neglect to make good on their promise, apologize to the customer and offer some type of
compensation, such as a discount or free delivery.
8. Assume that customers tell the truth:Even though it may appear that customers lie to manipulate a situation to their advantage,
they hope that it is their advantage to give them the benefit of the doubt. The majority of
customers dont like to complain; in fact, they will go out of their way perhaps all the way
to a competitor to avoid it. If they hear unhappy rumblings from their customers, take
their complaints to heart and do their best to appease their dissatisfaction.
9. Focus on making customers not on sales.:Salespeople, especially those who get paid on commission, sometimes focus on the
volume instead of on the quality of the sale. But an agent or employee of LIC give more
important to customers business is more than to close a sale. Research shows that it costs six
times more to attract a new customer than it does to keep an existing one. Moreover, happy
customers are the best and most effective way to find new customers.
-
7/31/2019 LIC COSTOMER PERCIPTION
28/64
28
Make it easy to buy:
The buying experience in their store, on Web site, or through catalog should be as easy as
possible. People cant find unnecessary paperwork and forms. They help people to find what
they need, explain how products work.
What is customer loyalty?
The term customer loyalty is used to describe the behavior of repeat customers, as well as
those that offer good ratings, reviews, or testimonials. Some customers do a particular company
a great service by offering favorable word of mouth publicity regarding a product, telling friends
and family, thus adding them to the number of loyal customers. However customer loyalty
includes much more. It is a process, a program, or a group of programs geared toward keeping a
client happy so he or she will provide more business.
Customer loyalty can be achieved in some cases by offering a quality product with a firm
guarantee. Customer loyalty is also achieved through free offers, coupons, low interest rate on
financing, high value trade-ins, extended warranties, rebates, and other rewards and incentive
programs. The ultimate goal of customer loyalty programs is happy customers who will return to
purchase again and persuade others to use that company's products or services. This equates to
profitability, as well as happy stakeholders
The key to a successful business is a steady customer base. After all, successful
businesses typically see 80 percent of their business come from 20 percent of their customers.
Too many businesses neglect this loyal customer base in pursuit of new customers. However,
since the cost to attract new customers is significantly more than to maintain your relationship
with existing ones, your efforts toward building customer loyalty will certainly payoff.
-
7/31/2019 LIC COSTOMER PERCIPTION
29/64
29
Here are ten ways to build customer loyalty:
1. Communicate.
Employees or the agent of the LIC of the India sent an email newsletter, monthly
flier, a reminder card for a tune up, or a holiday greeting card, reach out to their teddy
customers.
2. Customer Service.LIC of India go the extra distance and meet their customer needs. They also Train the
staff to do the same. Customers remember being treated well.
3. Employee Loyalty.Loyalty works from the top down. they are loyal to their employees, they will feel
positively about their jobs and pass that loyalty along to your customers.
4. Employee Training.They train their employees in the manner that they want them to interact with
customers. Empower employees to make decisions that benefit the customer.
5. Customer Incentives.They Give customers a reason to return to their business. For instance, they give bonus
to their customers or offer free gift coupons etc;
6. Product Awareness.They Know what steady customers purchase and keep these products to sell them . and
they also add other products and/or services that accompany or compliment the products that
your regular customers buy regularly. And they are sure about that their staff understands
everything about their products.
-
7/31/2019 LIC COSTOMER PERCIPTION
30/64
30
7. Reliability.They always reliable to their customers. If something goes wrong, they immediately
inform to their customers and compensate them for their inconvenience.
8. Be Flexible.They are always ready to solve customer problems or complaints to the best of their
ability. And provide accurate result in a short time period.
9. People over Technology.The harder it is for a customer to speak to a human being when he or she has a problem,
the less likely it is that you will see that customer again.
10. Know Their Names.They know the names of regular customers or at least recognize their faces.
Relationship Between Service quality and Customer Loyalty:
In various studies the relationship between service quality and customer preference
loyalty had been examined (Boulding, Kalra, Staelin, & Zeithaml, 1993; Cronin & Taylor,
1992). In their study Cronin and Taylor (1992) focused solely on repurchase intentions, whereas
Boulding et al. (1993) focused on the elements of repurchasing as well as the willingness to
recommend. In the study by Cronin and Taylor service quality did not appear to have a
significant (positive) effect on repurchase intentions (in contrast to the significant positive impact
of satisfaction on repurchase intention), whereas Boulding et al. (1993) found positive
relationships between service quality and repurchase intentions and willingness to recommend.
-
7/31/2019 LIC COSTOMER PERCIPTION
31/64
31
Products of LIC
LIC - Jeevan Anurag:
Benefits:
LICs Jeevan ANURAG is a - with profits plan specifically designed to take care of the
educational needs of children. The plan can be taken by a parent on his or her own life. Benefits
under the plan are payable at pre specified durations irrespective of whether the Life Assured
survives to the end of the policy term or dies during the term of the policy. In addition, this plan
also provides for an immediate payment of Basic Sum Assured amount on death of the Life
Assured during the term of the policy.
Assured Benefits:
Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy
years before maturity. At maturity, 40% of the Basic Sum Assured along with reversionary
bonuses declared from time to time on full Sum Assured for the full term and the Terminal
bonus, if any shall be payable. For example, if term of the policy is 20 years, 20% of the Sum
assured will be payable at the end of the 17th, 18th, 19th year and 40% of the Sum Assured
along with the reversionary bonuses and the terminal bonus, if any, at the end of the 20th year.
Death Benefit:
Payment of an amount equal to Sum Assured under the basic plan immediately on the
death of the life assured.
LIC - Jeewan Kisore:
Product summary:
This is an Endowment Assurance Plan available for children of less than 12 years of
age. The policy may be purchased by any of the parent/ grandparent.
-
7/31/2019 LIC COSTOMER PERCIPTION
32/64
32
Commencement of risk cover:
The risk commences either after 2 years from the date of commencement of policy or
from the policy anniversary immediately following the completion of 7 years of age of child,
whichever is later.
Premiums:
Premiums are payable yearly, half-yearly, quarterly or monthly throughout the term of
the policy or till earlier death of child.
Bonuses:
This is a with profits plan and participates in the profits of the Corporations life
insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary
Bonuses are declared per thousand Sum Assured annually at the end of each financial
year. Once declared, they form part of the guaranteed benefits of the plan. A Final
(Additional) Bonus may also be payable provided policy has run for certain minimum period .
LICChilds Career Plan:
Introduction:
This plan is specially designed to meet the increasing educational and other needs of growing
children. It provides the risk cover on the life of child not only during the policy term but also during
the extended term (i.e. 7 years after the expiry of policy term). A number of Survival benefits are
payable on surviving by the life assured to the end of the specified durations.
Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium
payment and Premium Waiver Benefit.
-
7/31/2019 LIC COSTOMER PERCIPTION
33/64
33
Payment of Premiums:
You may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary
deductions over the term of policy. Premiums may be paid either for 6 years or up to 5 years
before the policy term.
LIC - Child Future Plan:
Introduction:
This plan is specially designed to meet the increasing educational, marriage and other
needs of growing children. It provides the risk cover on the life of child not only during the
policy term but also during the extended term (i.e. 7 years after the expiry of policy term). Anumber of Survival benefits are payable on surviving by the life assured to the end of the
specified durations.
Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium
payment and Premium Waiver Benefit.
Payment of Premiums:
You may pay the premiums regularly at yearly, half-yearly, quarterly or through
Salary deductions over the term of policy. Premiums may be paid either for 6 years or up to 5
years before the policy term.
LICNew Jeevan Shree:
Product summary:
This is an Endowment Assurance plan offering the choice of many convenient
premium-paying terms. It provides financial protection against death throughout the term of
plan with the payment of maturity amount on survival to the end of the policy term.
-
7/31/2019 LIC COSTOMER PERCIPTION
34/64
34
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary
deductions, as opted by you, throughout the premium paying term or till earlier death.
Alternatively premium may be paid in one lump sum.
Guaranteed Additions:
The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand
Sum Assured for each completed year for first five years of the policy.
LIC - The Whole Life Policy:This plan is mainly devised to create an estate for the heirs of the policyholder as the
plan basically provides for payment of sum assured plus bonuses on the death of the
policyholder. However, considering the increased longevity of the Indian population, the
Corporation has amended the above provision, thereby providing for payment of sum assured
plus bonuses in the form of maturity claim on completion of age 80 years or on expiry of term
of 40 years from date of commencement of the policy whichever is later.
The premiums under the policy are payable up to age 80 years of the policyholder or
for a term of 35 years whichever is later. If the payment of premium ceases after 3 years, a
paid-up policy for such reduced sum assured will be automatically secured provided the
reduced sum assured exclusive of any attached bonus is not less than Rs.250/-. Such reduced
paid-up policy is not entitled to participate in the bonus declared thereafter but the bonuses
already declared on the policy will remain attach, provided the policy is converted in to a paid-
up policy after the premiums are paid for 5 years.
LICAmulya Jeevan:
On Death during the Term of the Policy : Sum Assured
On Maturity : Nil
-
7/31/2019 LIC COSTOMER PERCIPTION
35/64
35
RESTRICTIVE CONDITIONS:
Minimum age at entry 18 years (completed)
Maximum age at entry 60 years (nearest birthday)
Maximum age at maturity 70 years (nearest birthday)
Minimum Policy Term 5 years
Maximum Policy term 35 years
Minimum Sum Assured Rs.25,00,000/-
Maximum Sum Assured No Upper Limit
(Policies will be issued in multiples of Rs.100,000/- for Sums Assured more than the minimum
Sum Assured)
Mode of premium payment: Yearly, Half-yearly & Single Premium
-
7/31/2019 LIC COSTOMER PERCIPTION
36/64
36
-
7/31/2019 LIC COSTOMER PERCIPTION
37/64
37
Customer Satisfaction in 7 Steps in LIC
It's a well known fact that no business can exist without customers. In the business
of Website design, it's important to work closely with your customers to make sure the site
or system you create for them is as close to their requirements as you can manage. Because
it's critical that you form a close working relationship with your client, customer service is
of vital importance. What follows are a selection of tips that will make your clients feel
valued, wanted and loved.
1. Encourage Face-to-Face Dealings
-
7/31/2019 LIC COSTOMER PERCIPTION
38/64
38
This is the most daunting and downright scary part of interacting with a customer. If
you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured,
though, it does get easier over time. It's important to meet your customers face to face at least
once or even twice during the course of a project.
My experience has shown that a client finds it easier to relate to and work with someone
they've actually met in person, rather than a voice on the phone or someone typing into an email
or messenger program. When you do meet them, be calm, confident and above all, take time to
ask them what they need. I believe that if a potential client spends over half the meeting doing
the talking, you're well on your way to a sale.
2. Respond to Messages Promptly & Keep Your Clients Informed
This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all customers'
queries within the space of a few hours, but at least email or call them back and let them know
you've received their message and you'll contact them about it as soon as possible. Even if you're
not able to solve a problem right away, let the customer know you're working on it.
A good example of this is my Web host. They've had some trouble with server hardware
which has caused a fair bit of downtime lately. At every step along the way I was emailed and
told exactly what was going on, why things were going wrong, and how long it would be before
they were working again. They also apologised repeatedly, which was nice. Now if they server
had just gone down with no explanation I think I'd have been pretty annoyed and may have
moved my business elsewhere. But because they took time to keep me informed, it didn't seem
so bad, and I at least knew they were doing something about the problems. That to me is a prime
example of customer service.
3. Be Friendly and Approachable
-
7/31/2019 LIC COSTOMER PERCIPTION
39/64
39
A fellow Site Pointer once told me that you can hear a smile through the phone. This is
very true. It's very important to be friendly, courteous and to make your clients feel like you're
their friend and you're there to help them out. There will be times when you want to beat your
clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you
keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite
and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If a customer
has a problem, what should they do? If the first option doesn't work, then what? Should they
contact different people for billing and technical enquiries? If they're not satisfied with any
aspect of your customer service, who should they tell?
There's nothing more annoying for a client than being passed from person to person, or
not knowing who to turn to. Making sure they know exactly what to do at each stage of their
enquiry should be of utmost importance. So make sure your customer service policy is present on
your site and anywhere else it may be useful.
5. Attention to Detail (also known as 'The Little Niceties')
Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalised sign-up confirmation email for a service that you
could tell was typed from scratch? These little niceties can be time consuming and aren't always
cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on the other end of that screen or
telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
-
7/31/2019 LIC COSTOMER PERCIPTION
40/64
40
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.
Take this as an example: you're working on the front-end for your client's exciting new
ecommerce endeavour. You have all the images, originals and files backed up on your desktop
computer and the site is going really well. During a meeting with your client he/she happens to
mention a hard-copy brochure their internal marketing people are developing. As if by magic, a
couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution
versions of all the images you've used on the site. A note accompanies it which reads:
Your client is heartily impressed, and remarks to his colleagues and friends how very
helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your
chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer
will send several referrals your way.
7. Honour Your Promises
It's possible this is the most important point in this article. The simple message: when you
promise something, deliver. The most common example here is project delivery dates.
Clients don't like to be disappointed. Sometimes, something may not get done, or youmight miss a deadline through no fault of your own. Projects can be late, technology can fail and
sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be
ready ASAP wouldn't go amiss.
-
7/31/2019 LIC COSTOMER PERCIPTION
41/64
41
DATA ANALYSIS AND FINDINGS
1) Among Stall company is who is providing good services
LIC HDFC ICICI OTHRS
50% 20% 20% 10%
(LIC IS HAVE MORE CUSTOMERS RATHER THAN OTHERS)
LIC
HDFC
ICICI
OTHERS
-
7/31/2019 LIC COSTOMER PERCIPTION
42/64
42
2) WHO IS PRIVIDING GOOD VERITY OF POLICIESLIC HDFC ICICI OTHRS
50% 20% 20% 10%
LIC IS ONE OF FIRST INSURANCE COMPANY WHICH PROVIDE MORE
SERVICES
LIC
HDFC
ICICI
OTHERS
-
7/31/2019 LIC COSTOMER PERCIPTION
43/64
43
Q 3) Do you have Product of LIC?
Particular Number PercentageYes 90 90%
No 10 10%
Interpretation:-
From the above chart we can say that 90% customer have product of LIC and 10%customer have product of other companies, from that we can say that the trust of the people
towards LIC is too much high as compared to other players in insurance sector.
-
7/31/2019 LIC COSTOMER PERCIPTION
44/64
-
7/31/2019 LIC COSTOMER PERCIPTION
45/64
45
LIC Company will perform the activity of
issuing cheque of sum assured right the
first time.
1 2 3 4 5
LIC Company will provide the services at
the time it promises to do so.
1 2 3 4 5
LIC company will insist on error-free
record.
1 2 3 4 5
Average Reliability
-5
0
5
10
15
20
25
30
Time
punctuality
Problem
solution
issue of
cheque
fulfillment
of promise
error free
record
AVERAGE - perception
AVERAGE - Expectation
DIFFERENCE
-
7/31/2019 LIC COSTOMER PERCIPTION
46/64
46
AVERAGE
perception
AVERAGE
Expectation
DIFFERENCE
Time punctuality 25.6 25.93 -0.33
Problem solution 25.53 26.4 -0.87
issue of cheque 23.07 26.27 -3.2
fulfillment of promise 26 25.13 0.87
error free record 26.93 27.07 -1.04
Interpretation:-
From the above chart we can say that as there is not much difference between perception
perceived by the company and the expectation fulfillment of customers. we can say thatcompany is successful in providing customers value services as per the expectations of
customers. Only in case of issue of cheque company is unable to provide satisfactory services to
extent.
Q.5)
Expectation Responsiveness
Employees of excellent life insurance firmswill tell the customers when services will be
performed.
1 2 3 4 5
Employees of excellent life insurance firms
will give prompt services to customers.
1 2 3 4 5
Employees of excellent life insurance firms
will always be willing to help customer.
1 2 3 4 5
Employees of excellent life insurance firms
will never be too busy to respond to
customers requests.
1 2 3 4 5
Average Responsiveness
-
7/31/2019 LIC COSTOMER PERCIPTION
47/64
47
Responsiveness
Employees of LIC company will tell the
customers when services will be performed.
1 2 3 4 5
Employees of LIC Company will give
prompt services to customers.
1 2 3 4 5
Employees of LIC Company will always be
willing to help customers.
1 2 3 4 5
Employees of LIC company will never be
too busy to respond to customers requests.
1 2 3 4 5
Average Responsiveness
-5
0
5
10
15
20
25
30
EMPLOYEES
INFORMED TO
CUSTOMERS
EMPLOYEES
GIVE PROMPT
SERVICES
EMPLOYES
WILLING TO
HELP
CUSTOMER
EMPLOYEES
NEVER TO
BUSY TO
RESPOND
AVERAGE EXPECTATION
AVERAGE PERCEPTION
DIFFERENCE
-
7/31/2019 LIC COSTOMER PERCIPTION
48/64
48
AVERAGE
EXPECTATION
AVERAGE
PERCEPTION
DIFFERENCE
EMPLOYEES INFORMED TO
CUSTOMERS
22.8 23.93 0.5
EMPLOYEES GIVE PROMPT
SERVICES
25.13 22.87 -2.26
EMPLOYES WILLING TO HELP
CUSTOMER
23.6 29.53 5.93
EMPLOYEES NEVER TO BUSY
TO RESPOND
29.4 29.4 0
Interpretation:-
As per above chart we can say that as compared to other factors the back office which is
also known as employee help desk is not organized enough to help the customers and solve their
quarries 24/7 and are not able to provide them a value services.
Q.6)
Expectation Responsiveness
Employees of excellent life insurance firms
will tell the customers when services will be
performed.
1 2 3 4 5
Employees of excellent life insurance firms
will give prompt services to customers.
1 2 3 4 5
Employees of excellent life insurance firms
will always be willing to help customer.
1 2 3 4 5
-
7/31/2019 LIC COSTOMER PERCIPTION
49/64
49
Employees of excellent life insurance firms
will never be too busy to respond to
customers requests.
1 2 3 4 5
Average Responsiveness
Responsiveness
Employees of LIC company will tell the
customers when services will be performed.
1 2 3 4 5
Employees of LIC Company will give
prompt services to customers.
1 2 3 4 5
Employees of LIC Company will always be
willing to help customers.
1 2 3 4 5
Employees of LIC company will never be
too busy to respond to customers requests.
1 2 3 4 5
Average Responsiveness
-
7/31/2019 LIC COSTOMER PERCIPTION
50/64
50
AVERAGE
EXPECTATION
AVERAGE
PERCEPTION
DIFFERENCE
EMPLOYEES INFORMED TOCUSTOMERS
22.8 23.93 0.5
EMPLOYEES GIVE PROMPT
SERVICES
25.13 22.87 -2.26
EMPLOYES WILLING TO HELP
CUSTOMER
23.6 29.53 5.93
EMPLOYEES NEVER TO BUSY
TO RESPOND
29.4 29.4 0
Interpretation:-
As per above chart we can say that as compared to other factors the back office which is also
known as employee help desk is not organized enough to help the customers and solve their
quarries 24/7 and are not able to provide them a value services.
-5
0
5
10
15
20
25
30
EMPLOYEES
INFORMED TO
CUSTOMERS
EMPLOYEES
GIVE PROMPT
SERVICES
EMPLOYES
WILLING TO
HELP
CUSTOMER
EMPLOYEES
NEVER TO
BUSY TO
RESPOND
AVERAGE EXPECTATION
AVERAGE PERCEPTION
DIFFERENCE
-
7/31/2019 LIC COSTOMER PERCIPTION
51/64
51
Q7)
Expectation Assurance
The behavior of employees in excellent life
insurance firms will instill confidence in
customers.
1 2 3 4 5
Insured customers of excellent life insurance
firms will feel safe with insurance services.
1 2 3 4 5
Employees in excellent life insurance firms
will be consistently courteous to customer.
1 2 3 4 5
Employees in excellent life insurance firms
will have the knowledge to answer the
customers questions.
1 2 3 4 5
Average Assurance
Perception Assurance
The behavior of employees in LIC company
will instill confidence in customers.
1 2 3 4 5
Insured customers of LIC company will feel
safe with insurance services.
1 2 3 4 5
Employees in LIC company will be
consistently courteous to customers.
1 2 3 4 5
Employees in LIC company will have the
knowledge to answer the customers
questions.
1 2 3 4 5
Average Assurance
-
7/31/2019 LIC COSTOMER PERCIPTION
52/64
52
AVERAGE
EXPECTATION
AVERAGE
PERCEPTION
DIFFERENCE
BEHAVIOUR OFEMPLOYEES 21.67 20.8 -0.87
SAFE WITH THE
INSURANCE
24.33 22.8 -1.53
COURTEOUS TO
CUSTOMERS
22.4 21.6 -0.8
KNOWLEDGE TO
ANSWER
21.87 20.13 -1.74
Interpretation:-
From the above chart we can say that employees behavior towards customers with relation to
various services is not satisfactory and their response is not solving the quires and giving
knowledge to various customers
-5
0
5
10
15
20
25
BEHAVIOUR OF
EMPLOYEES
SAFE WITH THE
INSURANCE
COURTEOUS
TO
CUSTOMERS
KNOWLEDGE
TO ANSWER
AVERAGE EXPECTATION
AVERAGE PERCEPTION
DIFFERENCE
-
7/31/2019 LIC COSTOMER PERCIPTION
53/64
53
Q 8)
Expectation Empathy
Excellent company will give customers
individual attentions.
1 2 3 4 5
Excellent company will have working hour
convenient for all the customers
1 2 3 4 5
Excellent company will have employees who
give customers personal attention.
1 2 3 4 5
Excellent company will have their customers
best interest at heart.
1 2 3 4 5
The employees of excellent companies willunderstand the specific needs of their
customers.
1 2 3 4 5
Average Empathy
Perception Empathy
LIC company will give individual attentions
on customers.
1 2 3 4 5
LIC company will have working hour
convenient for all its customers.
1 2 3 4 5
LIC company will have employees who give
customers personal attention.
1 2 3 4 5
LIC company will have their customers best
interest at heart.
1 2 3 4 5
The employees of LIC company will
understand the specific needs of their
customers.
1 2 3 4 5
Average Empathy
-
7/31/2019 LIC COSTOMER PERCIPTION
54/64
54
AVERAGEEXPECTATION
AVERAGEPERCEPTION
DIFFERENCE
INDIVIDUAL ATTENTION 25 23.53 -1.47
CONVENIENT TOCUSTOMERS
24.07 22.6 -1.47
CUSTOMER PERSONEL
ATTENTION
23.13 22.2 -0.93
BEST INTEREST AT
HEART
24.6 23.47 -1.13
UNDERSTAND THE
SPECIFIC NEEDS
22.67 21.4 -1.27
-5
0
5
10
15
20
25
AVERAGE EXPECTATION
AVERAGE PERCEPTION
DIFFERENCE
-
7/31/2019 LIC COSTOMER PERCIPTION
55/64
55
Interpretation:-
From the above chart we can say that unlike other services and their personal attention facilities
life insurance companies agents and employees are unable to provide the personal needs and
likes of different customers at up to the mark level.
Q 9) SERVQUAL SCORE
CRITERIA Weight Weighted Average
score
TANGIBILITY 10 10
RELIABILITY 30 -27.3
RESPONSIVENESS 20 20.8ASSURANCE 10 -12.2
EMPATHY 30 -37.5
TOTAL 100 -46.2
Average of Weighted Average score = Weighted Average score
5
= (- 46.2 / 5)
= -9.24
-40
-30
-20
-10
0
10
20
30
Average
TANGIBILITY
RELIABILITY
RESPONSIVENESS
ASSURANCE
EMPATHY
-
7/31/2019 LIC COSTOMER PERCIPTION
56/64
56
As per above chart we can say that as services can only be felt and not be touched
tangibility secures the least average as compared to others and even we cannot assure the same
satisfaction every time.
Project Analysis:
The Positive side of LIC as well as Negative side of LIC. I encourage other readers to
correct me if I am wrong and also add light to any point that I may have missed.
First lets talk about the Positive side of LIC
1. LIC is owned by the government and therefore it is the only company besides the PPF
that has the sovereign guarantee of the govt. of India. It is a different story that today LIC has
become so powerful that the govt. leans on LIC every time that the Stock Market crashes.
Imagine having an Asset base of over Rs 6 Lac Crore. . Thats a 14 digit number! No company
in India can boast of such figures. Mind boggling.
2. LIC is the only Life Insurance Company making profits. Most of the Private Insurers
including the self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy
losses. Check IRDA website in the Annual Report column. The point is that if an insurance
company makes losses year over year, then how will they manage to pay the Claim amount?
After all no Insurance company is here to do charity business.
3. When it comes to paying claims, again LIC is Number One with the claims settlement
ratio of more than 99%. Private Insurers cannot match LICs ability on claims settlement. Again,
please visit IrDAs website to see the claims settlement performance of various companies.
4. LIC has the worlds largest sales force, yes over 10 lac agents and now universities in
western countries are trying to study how a company managed to appoint such a large sales
force. A sales force of over 1 million! Truly a remarkable achievement.
5. Many people argue that LIC has not been able to penetrate the market as it has insured
only 15% of the population. My point is, in a poor country like India where there are so many
-
7/31/2019 LIC COSTOMER PERCIPTION
57/64
57
people living below the poverty line, so many people who die of starvation, so many people who
dont have access to basic medication, so many people who dont have basic necessities of life
like food, shelter, education and clothing. Will such a person first feed his children or buy
Insurance? Lets not forget that a majority of the Indian population is poor and a substantial
percentage is living below the poverty line. At a personal level I feel that LIC has done a
satisfactory job of insuring people.
FINDINGS
Most of the respondents have LIC policy because they are concern about their future and
their family
In my study I found that most of the respondents have life insurance policy that is 65%
have considered that because they think if something happens to them, their family doesnt have
to take any help for survival through others.
While researching I found that there are many consumers of LIC policy and most of them
have consumed from 4 to 6 years before.
I found that the expectation of the consumer is mostly satisfied by the company because
the company gives best to their customers.
Documentation of any insurance policy takes the most time but here I found 55% of the
respondents agree that it take less time while 10% doesnt agree with it
There is not much difference between perception perceived by the company and the
expectation fulfillment of customers. We can say that company is successful in providing
customers value services as per the expectations of customers.
We can say that company is successful in providing customers value services as per the
expectations of customers. Only in case of issue of cheque company is unable to provide
satisfactory services to extent.
LIC services is concerned with the life of various respondents they need to be made
satisfied for the purchase of services so the concerned professional are able to reach the
expectation level of various customers.
-
7/31/2019 LIC COSTOMER PERCIPTION
58/64
58
Because of great technologies used in corporate world the time taken to get any service is
quiet easier as compare to past era.
People are concerned of their near and dear ones and family members they are always
interested to take up a various new policies concerned with their lifes so that they fell insured
and the risk of paying high amount during any mishap is almost reduced.
People are satisfied even for after sale services and they think of buying its various
products and services thats why they would like to recommend its products to their friends and
relatives.
-
7/31/2019 LIC COSTOMER PERCIPTION
59/64
59
SUGGESTION & CONCLUSION
SUGGESTION:
Followings are some of the suggestion given by the customer of LIC for serve people in
an improved way.
People suggest that LIC should have increased their bonus rate.
People suggest that LIC should have provided good services after sale of product or policy of it.
SUGGESTIONS FOR IMPROVEMENT
Advertise about the company and its products it motivates individuals to purchaseinsurance
Create a positive perception about insurance. Speak about the good features a plan offers like high returns, life cover, tax benefits,
indexation, accident cover while prospecting customers
Try to sell the product/plan which the consumer requires and not the plan where theadvisors benefit is higher
Improve the efficiency in operations Attract the youth of India with higher returns on investment as returns are the motivating
factor which influence purchase of insurance
Promote insurance in colleges and corporate houses Should have partial withdrawals from the first year onwards Tap the rural market where there is large potential Diversify product portfolio Make products more straight forwardreduce complexities
-
7/31/2019 LIC COSTOMER PERCIPTION
60/64
60
Conclusion
From the report I have concluded that most of the respondent has taken the policy of LIC
but they still lacking in providing good service after sales
Investment in LIC is more preferable because it is government oriented and it is follow rules andregulation of IRDA.
-
7/31/2019 LIC COSTOMER PERCIPTION
61/64
61
QUESTIONNAIRE
NAME:
Age:
Occupation:
1. Do you have any policy?
a) YESb) NO
2. If yes, which company policy do you own?
a) Licb)
Icici
c) Hdfc standardd) Max newyork
3. What is your annual income?
a) 1-2 lakhsb) 2-3 lakhsc) 3-4 lakhsd) Above 4
4. Are you satisfied with the policy?
a) YESb) NO
5. In your opinion what should the company focus on?
a) Conventional productsb)
Non conventional products
6. Which advertisement affected you in purchasing the policy?
a) Electronic mediab) Print media
7. Are you aware of L I C?
-
7/31/2019 LIC COSTOMER PERCIPTION
62/64
62
a) Yesb) No
8. Are you satisfied with the feature of policies?
a) Yesb) No
9. Do you feel force available when ever need their services?
a) Agents
b) Development Officer
10. Are you happy satisfy sales services?
a) Policy Services
b) Revival
11. Do you think that L I C selling needs base products?
a) Yesb) Noc) None of these
12. Are you satisfied with customer to relation staff officers?
a) Yes
b) No
13. Do you feel that customer relationship management should be improved in L I C?
a) Yes
b) No
14. Are you satisfied with claim settlement in L I C?
a) Yes
b) No
c) None of these
15. Why do you prefer L I C Policies?
-
7/31/2019 LIC COSTOMER PERCIPTION
63/64
63
a) Risk coverage
b) Returns
c) Safe
d) Above all
16. Are you satisfied with the Returns?
a) Yes
b) No
17. Do you think the private players competing with L I C?
a) Yes
b) No
c) To some extent
d) None of these
18. What respect suggests improving further?
a) Customer relations
b) Product Features
c) Policy services its any branches.
-
7/31/2019 LIC COSTOMER PERCIPTION
64/64
BIBILOGRAPHY
1. Principles of Marketing by PHILIP KOTLER & GARY ARMSTRONG2.
Marketing Research by DONALD S TULL & DEL I HAWKINS.
3. Dr. P. Periasamy Principles Practice of Insurance, Himalaya Publishing House.4. Website IRDA.5. 52nd Chairmans Review 2008-09 LIC of India.6. Mathew M.J. Insurance (Principles and Practice) RBSA Publishers, Jaipur.7. 53rd Annual Report 2009-10 of LIC of India.8. Yogeakshema Journal May 2008 LIC of India.9.
II. web sites
www.wikipedia.com
www.google.com
www.lic.com
www.icici.com
www.licindia.com
www.bimadeals.com
en.wikipedia.org
http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/http://www.google.com/http://www.lic.com/http://www.lic.com/http://www.icici.com/http://www.icici.com/http://www.licindia.com/http://www.licindia.com/http://www.bimadeals.com/http://www.bimadeals.com/http://www.bimadeals.com/http://www.licindia.com/http://www.icici.com/http://www.lic.com/http://www.google.com/http://www.wikipedia.com/