Determinants of Service Satisfaction among Policyholders of Life Insurance Corporation of India

Abstract

Life insurance is a customer based business where retention of existing customers is the biggest challenge in present day market competition The business of insurance is based on the skill and excellence of agents and makes a strong advocacy in favour of personal selling The other marketing methods are advertisement public relations sales promotion wordofmouth communication and telemarketing Insurance companies are adding attractions to their marketing mix and making it distinct to the competitors The service quality has become a highly influential coefficient in the aggressive competitive marketing Life Insurance Corporation of India LIC is increasingly adopting a total marketing approach to product development innovation research and communication to satisfy the customers and create brand loyalty The main objective of the study was to determine the service satisfaction among policyholders of LIC and the likelihood of recommendation of brand LIC by the policyholders The primary data was collected through personal interviews with LIC policyholders in Coimbatore district consisting of 359 urban policyholders and 241 rural respondents using well structured questionnaire Statistical tools like Analysis of variance Factor analysis ChiSquare Analysis SERVQUAL Gap Analysis Multiple regressions and Logit regressions were employed for data analysis The hypotheses were tested to analyse the policyholders awareness on facilities of LIC service satisfaction on the marketing mix and agency service satisfaction with respect to socioeconomic profile and the service quality gap among the urban and rural respondents from the study area and to identify the determinants of word of mouth publicity of LIC by the respondents