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EFFECT OF CONSUMER CHARACTERISTICS ON PURCHASE MOTIVES AND ATTITUDE TOWARDS LIFE INSURANCE: STUDY IN PUNJAB REGION

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Life insurance is risk covering tool but mostly taken for investment and tax rebate. Consumer decision making for buying life insurance policies is complex in nature. Many factors affect the need generation for life insurance and influenced life insurance purchase intentions. Socio-demographic variables plays vital role in shaping consumer attitude for life insurance. In this research role of demographic variables effect on consumer behaviour towards life insurance was studied by empirically collected data from 500 consumers of Punjab region. Finding revealed that some of demographic variables significantly affect purchase behaviour of consumers thus its pertinent to developed right marketing strategies and product development in life insurance sector. Keywords: demography, consumer attitude, life insurance purchase
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   Scholarly Research Journal for Interdisciplinary Studies, Online ISSN 2278-8808, SJIF 2016 = 6.17, www.srjis.com   UGC Approved Sr. No.45269, JULY-AUG 2017, VOL- 4/35 Copyright © 2017, Scholarly Research Journal for Interdisciplinary Studies EFFECT OF CONSUMER CHARACTERISTICS ON PURCHASE MOTIVES AND ATTITUDE TOWARDS LIFE INSURANCE: STUDY IN PUNJAB REGION Neha Shrivastava 1  & Raminder Pal Singh 2 , Ph. D. 1  Research Scholar (Ph. D.), IKGPTU, 120, Mayur Vihar Sector 48 A, Chandigarh 2  Associate Professor, Shaheed Bhagat Singh State Technical Campus, Moga Road,  Ferozepur, Punjab, India.  Life insurance is risk covering tool but mostly taken for investment and tax rebate. Consumer decision making for buying life insurance policies is complex in nature. Many factors affect the need  generation for life insurance and influenced life insurance purchase intentions. Socio-demographic variables plays vital role in shaping consumer attitude for life insurance. In this research role of demographic variables effect on consumer behaviour towards life insurance was studied by empirically collected data from 500 consumers of Punjab region. Finding revealed that some of demographic variables significantly affect purchase behaviour of consumers thus its pertinent to developed right marketing strategies and product development in life insurance sector. Keywords: demography, consumer attitude, life insurance purchase   Introduction Consumer behaviour involves consumer need generation, searching, buying, using and disposing of goods and services and end at attitude and perception for that product which has  been built by overall purchase and post purchase experience. Many external and internal factors affect this journey and influence the behaviours. Demographic characteristics such as age, gender, marital status, occupation, education and income are also vital factors to measure suitable marketing strategies for any products and services. It is important to know that how consumers will response to marketing stimuli. This paper describes customer attitudes towards the life insurance. The attitudes found most often negative and reasons for low interest in life insurance products. Life insurance is mega opportunity in India with its  business growing fast. Yet maximum population is not insured and those are insured are not sufficiently insured. So they highly required social security or pension system and this is an indicator of high growth potential for life insurance sector. Review of Literature Ekeng et al (2012)  examined the influence of consumer demographic on impulse buying. Their empirical study on 400 consumers revealed that demographic characteristic significantly influences the behaviour. Gender and education plays major role in spontaneous  buying decisions. Seock and Bailey (2008) studied role of gender in purchase behaviours and shopping orientation. They surveyed 1277 us students for the study and developed seven constructs; shopping enjoyment, brand/fashion consciousness, price consciousness, shopping confidence, convenience/time consciousness, in-home shopping tendency and brand/store  Scholarly Research Journal's is licensed Based on a work at  www.srjis.com     Neha Shrivastava & Dr Raminder Pal Singh (Pg. 6421-6427) 6422   Copyright © 2017, Scholarly Research Journal for Interdisciplinary Studies loyalty. Gender was found to be significant role in shopping orientation, online information search and purchase experiences. Mittal and Kamakura (2001)  studies large scale data of automobile customers for establishing relationship between their characteristics, satisfaction and repurchase. Research found that satisfaction ratings differ on the basis of consumer characteristics and their threshold was different for repurchase. Aloma and Lawan (2013) discussed influence of consumer demographics on clothes buying behaviour. Chi square test found significant association of age, income on need reorganisation and patronage. Occupation and education affect post purchase behaviour and patronage while, marital status and gender influence was found insignificant in influencing consumer behaviour.   Laoviwat et al (2014)  examined demographics influence on attitude toward brand equity of optical  business in thailand. Consumer demographics like gender, education and income influence consumer behaviours and education was found to be influence brand loyalty and brand awareness. Chui and Kwok(2008) studied the nation culture effect on life insurance buying. Individualism was found to have significant positive effect on life insurance consumption but  power distance, masculinity and femininity have negative effect on life insurance purchase. Headen and Lee (1974) revealed major variables stimulating life insurance demand. Life insurance industry advertisement expenditure, size of sales force, new product of insurance companies were affect the insurer effort for creating demand for life insurance. Variables like disposable household income, no. Of births, marriage affects house hold saving decision, Apart from it economic condition; financial assets also affect ability to pay for insurance. Truett et al. (1990)  explored demographic factors like age, education, income were significant factors which affect demand of life insurance. Results of this study are in line with previous study which considered demographic factors such as dependency ratios, life expectancy and adult literate population have relationship with life insurance purchase Objectives: To study the effect of demographic variables on consumer attitude towards life insurance Hypothesis H1: Consumer demographics influences attitude towards the life insurance H2: Consumer attitude towards life insurance has an impact on the their purchase intentions for life insurance policies Research Methodology Research was conducted to know the effectiveness of life insurance promotion strategies adopted by life insurance companies and their effect on consumer behaviour. Descriptive research design was applied and primary data was collected from three major regions of Punjab i.e. Maja Malwa and Doaba and Chandigarh .From the Punjab state, most populated cities were selected from each region. In Maja region, Amritsar and Gurdaspur were selected. Jalandhar and Hoshiarpur were selected from Doaba region. Ferozepur, Bathinda, Ludhiana Patiala and Mohali were selected from Malwa region of Punjab. Beside these, Chandigarh was also covered in the study to collect the data. Purposive convenience sampling technique was used to collect data from 10 cities selected from regions population wise. Data was collected from 501 respondents from the area. Prior to the analysis of the results, the research    Neha Shrivastava & Dr Raminder Pal Singh (Pg. 6421-6427) 6423   Copyright © 2017, Scholarly Research Journal for Interdisciplinary Studies instrument was tested for its reliability. The internal consistency of the grouping of the items was estimated using the reliability co-efficient called Cronbach's alpha. The computed reliability co-efficient values were found more than 0.60 in all variables that testifies strong scale reliability. Data Collection and Analysis The study is based on primary data. The multiple choice questionnaire was used to collect the data from the consumers and companies person, agents of selected life insurance companies. In order to extract a meaningful information and for hypotheses testing, various statistical techniques were applied for the data analysis. The research study makes an attempt to relate the outcomes of the data analysis with the framed hypotheses. The characteristics of demographic profile of the respondents were analyzed and presented by using descriptive statistics. Techniques of Inferential statistics such as Correlation, Multiple Regression Analysis, ANOVA, Independent Sample t-test were used to examine and investigate the relationship between the dependent and independent variables of the study. Results and Findings The table 1 represents the frequency distribution of the respondents with respect to the area. From the total number of 501 respondents, 22.8% of the respondents are from Majha, 23% of the respondents are from Doaba, 22.8% of the respondents are from Malwa, 12.6% of the respondents are from Mohali and 19% of the respondents are from Chandigarh. Table1: Frequency distribution of respondents according to their area Respondent profile area-wise Area Frequency Percent Majha 114 22.8 Doaba 115 23.0 Malwa 114 22.8 Mohali 63 12.6 Chandigarh 95 19.0 Total 501 100.0 H1: Consumer demographics influences attitude towards the life insurance To prove the above hypothesis ANOVA and t-test was applied to check the difference in consumer attitude towards life insurance with respect to age, qualification, occupation, family income, residence, gender and personal status of the respondents. Table 2A depicts that the p-values for age, occupation and personal status, are coming out to be greater than 0.05, hence we have accepted null hypothesis, H 0 , for age, occupation, family income and personal status , that is, there is no significant difference in consumer attitude towards life insurance with respect to age, occupation, family income and personal status of the respondents. We can say that these demographic variables did not influence attitude towards life insurance. But on the other hand Qualification has role in attitude towards life insurance as p value is less than .05 In the Table 2 B, the p-value for residence area and no. of earning members, and family size , are coming out to be less than 0.05, hence we have rejected the null hypothesis, H 0 , for residence area and no. of earning members, and family size ,that is, there is a significant    Neha Shrivastava & Dr Raminder Pal Singh (Pg. 6421-6427) 6424   Copyright © 2017, Scholarly Research Journal for Interdisciplinary Studies difference in attitude towards life insurance. It depicts that for residence area and no. of earning members, and family size has influence on attitude towards life insurance. T test was conducted to find out significant difference for life insurance attitude in male and female. Since p value turn out to be less than 0.05 for gender so we can say that gender has influence on attitude towards life insurance. Table 2A: ANOVA test for attitude towards life insurance Demographic variables Sum of Squares df Mean Square F Sig. Age group Between Groups 183.338 4 45.834 1.587 0.177 Within Groups 14327.13 496 28.885 Personal status Between Groups 108.527 2 54.264 1.876 0.154 Within Groups 14401.94 498 28.92 Qualification Between Groups 474.284 4 118.571 4.19 0.002 Within Groups 14036.19 496 28.299 Occupation Between Groups 341.264 6 56.877 1.983 0.066 Within Groups 14169.21 494 28.683 Table 2B: ANOVA test for attitude towards life insurance Demographic variables Sum of Squares df Mean Square F Sig. Family Income Between Groups 210.154 5 42.031 1.455 0.203 Within Groups 14300.32 495 28.89 Within Groups 14441.09 499 28.94 Earning members Between Groups 604.428 3 201.476 7.201 .000* Within Groups 13906.04 497 27.98 Family Size Between Groups 200.561 2 100.28 3.49 0.031* Within Groups 14309.91 498 28.735 Residence Between Groups 454.142 2 227.071 8.045 .000* Within Groups 14056.33 498 28.226
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