CHAPTER 3RESEARCH METHODOLOGY

3.1 Purpose of the StudyThe project report is about the topic the comparative study on consumer preference between IDBI Federal and LIC. The purpose of the study was to find out that what is the customer behaviour towards private and public insurance sector in India. The reason behind so strong favour towards public insurance company like LIC then any other private institution. LIC being the most trusted and oldest brand in insurance sector enjoys what benefits despite its costlier premium charges than private institutions. Insurance is mostly used as a tool to protect insurers family, but when it comes to investment people arent much interested. Through a continuous process of innovation in product and service delivery IDBI Federal aims to deliver world-class wealth management, protection and retirement solutions that provide value and convenience to the Indian customer.

3.2 Research Objectives of study To determine and analyze the Market Potential of the IDBI Federal Life Insurance Company in Delhi. To study and determine the competitor (LIC) position in the market. To analyze market share of IDBI Federal Life Insurance Co. LTD products in Delhi. To analyze the customer satisfaction regarding LIC and IDBI FEDERAL LIFE INSURANCE. To study insurance as a tool of investment by customers in India.

3.3 Research Methodology of the Study.3.3.1 Research Design:1. Descriptive research design was followed.2. This type of research design includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of affairs as it exists at present.3. Under this research design questionnaires were used to collect data.4. The questionnaires were formed under the companys norms.5. It was a structured questionnaire, consisting of both closed ended and open end question.6. A list of Prospective customers was prepared which were located in Delhi & Gurgaon.7. All the data regarding the questionnaire was collected in 8 weeks time.8. The research process consists of a series of closely related activities.

3.3.2 Data Collection TechniquesData Collection: - The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines, books, newspapers, & websites etc.

Broadly there are two methods of data collection:- Primary data collection method Secondary data collection method

Primary dataThe primary data are those data which are collected afresh and for the first time, and thus happen to be original in character.I have collected primary data through: - Questionnaires Interaction with the respondents Prospect form

Secondary dataThe secondary data on the other hand, are those which have already been collected by someone else and which have already been passing through the statistical process. You are to rely on the information which already exists.I have collected secondary data through: - Internet Books Literature review

3.3.3 Sample Design

3.3.3.1 Population: The area covered was Delhi and Gurgaon.3.3.3.2 Sample Size: 50 customers were interviewed for collecting the data.Time Frame: The research has been done in 6 weeks time.3.3.3.3 Sampling Method: For study data are to be collected from the respondents. It is not possible to collect data from everyone of the population. We use following method of sampling: Stratified sampling In this method we prepared of those individuals who are having same characteristics, i.e. age in case of retirement plans, child age in case of child plans, income level & investing habits in case of ULIP plans. Convenience sampling In this method we chose individuals by convenience and ease. We prepared list of individuals who can be interested to take part in the research.

3.3.4 Method of Data Collection Good data collection involves: Following the defined sampling process Keepingthedataintimeorder Notingcommentsandothercontextualevents Recording non-responses

3.3.4.1 Instrument for Data CollectionData can becollected in various formats. Wecan also collect data inthe form of primary data and secondary data. Through questionnaire method or observation method, we can collect the information or data related to theprimary method whereas newspaper, radio, television, magazines, pamphlets, internet and manymore other things helps us to collect the information or data which comesunder the light of secondary data. Theseboth types of data help us toexecute the final result and solvedmany of the problems.3.3.4.2 Drafting of a Questionnaire Introduction and screening questions.Asking sensitive screening questions.A checklist of do's and don'ts in the questionnaire format.Pre-coding questions and planning the physical layout.Pre-testing a questionnaire with a workshop in revising questionnaires andpre-testing to avoid future troubles.

3.3.5 Limitations Some of the respondents were not cooperative. There are chances of biased information provided by the respondents. Responses from many customers could not be incorporated due to lack of interest shown by them. As the sample size is small compared to the total population, therefore there cant be full accuracy. There was Paucity of time Area was limited. Limited access to experts for editing, proofreading, andguidance.