Effects of Consumer Perception on the Demand of Life Insurance Products
Chapter One
RESEARCH OBJECTIVES
Based on the above general objective, the following are specific objectives of the study:
- To obtain how have customer’s perception to buying life insurance.
- To know the relationship between life insurance buying intention and other variables.
- To know the effect of customer’s perceptions on the demands of life insurance
CHAPTER TWO
LITERATURE REVIEW
THE CONCEPT OF CONSUMER BEHAVER
Consumer Behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.Defined Consumer behavior in an advanced way as “the totality of consumers’ decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas by human decision-making units (Hawkins and Mothersbaugh, 2010).
What Affects Consumer Behavior
The many factors that affect acquisition, usage, and disposition decisions can be classified into four broad domains the psychological core, the process of making decisions, the consumer’s culture, and Consumer behavior outcomes.(Hoyer &MacInnis ,2008).
The Psychological Core: Internal Consumer Processes
Before consumers can make decisions, they must have some source of knowledge or information upon which to base their decisions. This source—the psychological core— covers motivation, ability, and opportunity; exposure, attention, and perception; categorization and comprehension of information; and attitudes about an offering. (Hoyer &MacInnis, 2008).
Social factor: Social factor divides the society into a hierarchy of distinct classes. The members of each class have relatively the same status and members of other classes have either more or less status. It includes family, group etc. (Hoyer &MacInnis, 2008).
Cultural factor: It has potent influences that are brought up to follow the beliefs, values and customs of their society and to avoid behavior that is judged acceptable. Beliefs, values and customs set subculture apart from other members of the same society. Thus sub-culture is a distinct cultural group that exists as an identifiable segment, within a larger, more complex society (Hoyer &MacInnis, 2008).
Personal factor: It is a very important factor. Personal factors also influence buyer’s behavior. They include age, income, occupation, life style. They simply direct our outer personality. (Hoyer &MacInnis, 2008).
Psychological factor: The buying behavior of consumer is influenced by a number of psychological factors which includes motivation, perception, learning, beliefs and attitude and personality (Hoyer &MacInnis, 2008).
CHAPTER THREE
Research Design
The study adopted descriptive research design. This is because the aim of this study is to describe the present determinant factors of life insurance buying behavior of customers with regarding like attitude, perception, income, price, culture.
Population and Sampling Technique
Population
Population for this study focused in Nigerian insurance corporation Lagos State University, Ojo office, corporate Customers and Managers as the target population of the study. In Lagos State University, Ojo district there are higher number of customers, and availability of data for the purpose of this study. The researcher selects five different non- government organization customers. Those are Helvetia’s Nigeria, access to trade, Nigerian Rain water, and Federal courts employee.
CHAPTER FOUR
DATA ANALYSIS, INTERPRETATION AND PRESENTATION
Respondents
A Total of 126 questionnaires were distributed Ojo life insurance customers organization in Lagos. Seven respondents could not be returned and a total of returned 3 responses were excluded from analysis due to irrelevant information and not correctly filling the questionnaires. Thus, the study analyzed the data on only 116 responses of insurance consumers which resulted a sufficient percentage (92%) response rate.
CHAPTER FIVE
SUMIMRY OF FINDING, CONCLUSIONS AND RECOMMENDATIONS
The basic aim of this chapter is to present the overall overview of the research by summing the main findings of the analysis part and give recommendations. Accordingly, the chapter briefly sums up the overviews of the study and its main findings
Conclusions
The study aims to examine the determinant factor of life insurance buying behavior between different variables and the buying intension of Life insurance buying behavior and its main determinants and their statistical significance. Based on the analysis made in previous chapter on factors that determine life insurance buying behavior is the following conclusions are drawn.
There is significant positive relationship between income and buying behavior of life insurance. In this situation, as income rises, insurance become more affordable. This study find out that the most important factor that influence for life insurance buying behavior. Similar to, the correlation showed positive and strongly statistically significant relationship between life insurance buying behavior intention and level of income.
There is a significant positive relationship between premium and the determinant factor of life insurance buying behavior. Similar to the description and correlation showed positive and statistically significant relationship between life insurance buying behavior and each variable.
There is a significant positive relationship between attitude and the determinant factor of life insurance buying behavior. Similar to the correlation, the descriptive showed positive and statistically significant relationship between determinant factors of buying behavior of life insurance buying behavior. The positive relationship between attitudeand life insurance buying behavior implies that higher increases life insurer‘s investment returns and profitability, it ultimately leads to high life insurance demand.
Premium is an important factor that determined of life insurance buying behavior. Perception level has led to greater awareness and understanding of the role of life insurance. Similar to the correlation result showed positive and strongly statistically significant positive relationship between determinant of life insurance buying behavior and level customer perception. If it the customer perception is positive it assume that it has greater awareness and understanding of the benefit of life insurance, therefore another factor that has driven the increasing demand for life insurance buying. Because people who have positively perception the product benefit they are willing to buy the life insurance policy.
Recommendations
The researcher recommended some alternative ways pertaining to promote and increase demand of life insurance in Nigerian Insurance Corporation. Hence, the possible and constructive recommendations are for warded as follows.
The positive relation between customer’s perception and life insurance buying behavior implies that life insurance companies should have to do more in creating awareness to the general public.
Thus, theNationalBank of Nigeria and the managements of insurance companies should further enhance public‘s awareness and financial literacy by using different approaches. For example they should use media, internet and billboard as a medium of promoting the life insurance and made a program such true story regarding the life insurance benefits. This program will give big picture to society about how important the life insurance is to their family as extra saving to the future use a, health, education and financial losses.
Understanding of regulatory authority should be improved on life insurance, especially The National Bank of Nigeria; since the sector have a great importance for the economy. National Bank of Nigeria should have to give much attention for the development of thissectors.
References
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