A REPORT

ON
STUDY OF CUSTOMERS’ PERCEPTION AND
SATISFACTION OF SERVICE QUALITY IN IDBI FEDERAL
LIFE INSURANCE CO. LTD.

BY
AKANSHI GOYAL

IDBI FEDERAL LIFE INSURANCE COMPANY LTD.

A report submitted in partial fulfilment of

The requirements of
PGDM Program of
DELHI SCHOOL OF BUSINESS
 ACKNOWLEDGEMENT

I wish to express my indebted gratitude and special thanks to Mr. Manas Das, Chief Manager, IDBI Federal
who in spite of being extraordinarily busy with his duties, took time out to hear, guide and keep me on the
correct path and allowing me to carry out my summer internship project work at their esteemed organization
and extending help during the training.

I would also like to thank my college Delhi School of Business and Director Mr. I.M. Pandey for providing
me with an opportunity to undergo this summer internship and gain immense experience of the corporate
world.
 EXECUTIVE SUMMARY

The topic of my report is “Customers’ Perception and Satisfaction of Service Quality- a Case on IDBI Federal
Life Insurance Corporation Limited”. This study is attempted to understand the customer perceptions on
different service quality dimensions while dealing with this insurance company.

The study was conducted based on both the primary and secondary sources of information. The nature of this
report is a descriptive. I made a detailed questionnaire for my survey.

To satisfy these customers, the management can take some attempts. I have come up with some points, which
can improve the efficiency as well as quality of the service.

 IDBI Federal Life Insurance Co. Ltd. need to give more emphasize on their service quality because
survey shows customers are very much quality oriented in insurance than ever before.
 To retain their customers and make them loyal, IDBI Federal Life Insurance Co. Ltd. should give some
exclusive offering. It can be different types of insurance products with much better maturity value and
reversionary bonuses.

By considering those recommendations, the IDBI Federal Life Insurance Co. Ltd. can improve their service
quality and satisfy their customers in an effective manner Considering the volume of operation and limitations
of resources and management of this insurance firm in comparison with other insurance companies, If it is
possible for the management to provide recommended services, the perception of the customers will be
positive about the service quality of the IDBI Federal Life Insurance Corporation Limited.
 TABLE OF CONTENTS

EXECUTIVE SUMMARY

1. PROFILE AND ORGANIZATION STRUCTURE OF THE COMPANY

1.1 Introduction about insurance sector
1.2 Intro about company
1.3 Objective of the study
1.4 Source of data collection
1.4.1 Primary
1.4.2 Secondary
1.5 Nature of business
1.6 Vision & Mission & Value of IDBI
1.7 Product range of IDBI
1.8 Size of the company
1.8.1 In terms of manpower
1.8.2 In terms of turnover
1.9 Organizational structure
1.10 Market share position

2. SWOT ANALYSIS
2.1. What do you mean by SWOT?
2.2. Promotional strategies of IDBI
2.3. CRM policies of IDBI
2.4. Market mix of IDBI
2.5. Segmentation of IDBI

3. MARKETING ASPECT
3.1. Customer’s Expectations
 3.2. Customer Perception
3.3. Customer Satisfaction versus Service Quality
3.4. Customer Satisfaction
3.5. Outcomes of Customer Satisfaction
3.6. Service Quality

4. DATA ANALYSIS
4.1. Data and implementation
4.2. Scope of survey
4.3. Objections

5. BCG Matrix

FINDINGS

RECOMMENDATIONS

BIBLIOGRAPHY

ANNEXURE
 CHAPTER-1
PROFILE AND
ORGANIZATION
STRUCTURE OF
THE COMPANY
1.1 Introduction about insurance sector

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance
Company started 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 charged 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. Bharat Insurance Company (1896) was
also one of such companies inspired by nationalism. Starting as Indian enterprise with highly patriotic motives,
insurance companies came into existence to carry the message of insurance and social security through
insurance to various sectors of society.

1.2 About company

IDBI Federal Life Insurance Co Ltd. Is a three way joint-venture of IDBI Bank, an Indian development and
commercial bank; Federal Bank, one of India’s leading private sector banks and Ageas, a multinational
insurance giant based out of Europe.

IDBI Federal distributes its products through a multi-channel network consisting of Insurance agents, Banc
assurance partners (IDBI Bank, Federal Bank) Direct channel, and Insurance Brokers.

This report is an empirical assessment of the service quality provided by IDBI Federal Life Insurance
Corporation Limited. The service quality is the degree of excellence in the service performance. It is the degree
and direction of discrepancy of service quality. The difference between the service expectations and service
perceptions of customers is what is termed as service quality gap.

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial development bank. It came
into being as on July 01, 1964 to support India’s industrial backbone. Today, it is amongst India’s foremost
commercial banks, with a wide range of innovative products and services, serving retail and corporate
customers in all corners of the country from 1459 branches and 2727 ATMs. The Bank offers its customers
an extensive range of diversified services including project finance, term lending, working capital facilities,
lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory
services to its corporate clients as well as mortgages and personal loans to its retail clients.

Federal Bank is one of India’s leading private sector banks, with a dominant presence in the state of Kerala.
It has a strong network of over 1,214 branches and 1,435 ATMs spread across India. The bank provides over
four million retail customers with a wide variety of financial products. Federal Bank is one of the first large
Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected
branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele
Banking, Any Where Banking, debit cards, online bill payment and call Centre facilities to offer round the
clock banking convenience to its customers.

Ageas is an international insurance group with a heritage spanning 190 years. Ranked among the top 20
insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia,
which together make up the largest share of the global insurance market. These are grouped around four
segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of
wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the
world. In the UK, Ageas is the sixth largest Non-Life insurer with a number 3 position in cars insured and has
a strong presence in the over 50’s market. Ageas employs more than 13,000 people in the consolidated entities
and over 30,000 in the non-consolidated partnerships, and has annual inflows of more than EUR 23billion.

1.3 Objective of the study

Broad Objective:

 The broad objective of the report is to know about the customers’ perception and satisfaction of service
quality of IDBI Federal Life Insurance Corporation Limited.

Specific Objective:

 To know about the customers’ rating on reliability and assurance of service quality of IDBI Federal
Life Insurance Co. Ltd.
 To analyses the customer’s satisfaction of service quality of IDBI Federal Life Insurance Co. Ltd.
 To make recommendations for improving the quality of different services provided to the customers
by IDBI Federal Life Insurance Co. Ltd.

1.4 Source of data collection

The study would be conducted based on both the primary and secondary sources of information.

Primary sources I have gathered primary data from the customers when they came for services at the office
of IDBI Federal Life Insurance Co Ltd. The questionnaires provided to those customers who were interested
in participating in the survey.
Secondary sources Annual reports of IDBI Federal Life Insurance Co Ltd, class lectures provided from IDBI
Federal Life Insurance Co Ltd, Online articles/website of IDBI Federal Life Insurance Co Ltd and other
published sources.

1.5 Nature of business

IDBI Federal Life Insurance is one of India’s growing life insurance companies and offers a diverse range
of wealth management, protection and retirement solutions to individual and corporate customers. IDBI is a
full service life insurance company with a variety of product and services to meet the needs of its clients.

1.6 Vision & Mission & Value of IDBI

VISION

To be the leading provider of wealth management, protection and retirement solutions that meets the needs of
our customers and adds value to their lives.

MISSION

To continually strive to enhance customer experience through innovative product offerings, dedicated
relationship management and superior service delivery while striving to interact with our customers in the
most convenient and cost effective manner. To be transparent in the way we deal with our customers and to
act with integrity. To invest in and build quality human capital in order to achieve our mission.

VALUES

Transparency: Crystal Clear communication to our partners and Stakeholders.

Value to Customers: A product and service offering in which customers perceive value.

Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and
having clarity in claims.

Customer-friendly: Advice and support in working with customers and partners.

Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and the
community at large.
1.7 Product range of IDBI

ENDOWMENT ULIP
Lifesurance Wealthsurance
 Guaranteed additions to safeguard your  Get guaranteed loyalty addition to boost your
savings savings

 Lump sum payout at maturity  Life cover benefit to financially secure your
loved ones
 Boost your savings with bonuses
 Tax benefits on the premiums paid as well as
 Tax benefits on investments and returns
the benefits received
 Leave it to experts
Child plan  Easy access to your investment through
 Life cover with triple benefits partial withdrawals
 Guaranteed loyalty additions  Strong percentage
 Tax benefits
 Tax rebate

1.8 Size of the company

IDBI Federal Life Insurance is one of India’s growing life insurance companies and offers a diverse range
of wealth management, protection and retirement solutions to individual and corporate customers.
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier development and
commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational
insurance giant based out of Europe.

In terms of manpower:- Through a nationwide network of 2,964 branches of IDBI Bank and Federal Bank,
and a sizeable network of advisors and partners, IDBI Federal Life Insurance has achieved presence across
the length and breadth of the country.

In terms of turnover: - IDBI Federal Life Insurance has total assets under management of 6,090 crore and a
robust capital base of over 800 crores, as on March 31, 2017. As on March 31, 2017, the company has issued
nearly 10.29 lakh policies with a sum assured of over Rs. 58,653.76 crore.

1.9 Organizational structure

1.10 Market share position
 IDBI Federal breaks-even in Five years; posts maiden profit of Rs. 9.24 crore
 New Business Premium (APR) grows by 23%, compared to industry’s negative growth of -15%.
 Achieves 44% increase in the number of new business policies sold.
 Product mix further shifts to long-term traditional products, thereby driving profitability through
product-mix. Traditional products account for 83% of new business premium.
 13th month persistency improves to 76%. Among top 5 companies in persistency experience.
 AUM (Assets under Management) up by 24% to Rs 2,732 crore. For the calendar year 2012, IDBI
Federal’s Equity Fund ranked No 1 among 72 ULIP funds bearing testimony to the company’s fund
management expertise.
 Ageas keen to raise stake to 49% in IDBI Federal Life
 CHAPPTER-2
SWOT ANALYSIS
2.1 SWOT

STRENGTHS OPPORTUNITIES
 9.24 crore B.E.P. in 5 years  Venture capital
 8 day claim guarantee  new acquisitions
 Brand name  global markets
 growing economy
 new markets
WEAKNESSES THREATS
 Low frequented promotional activities  Tough competition from market leader LIC
 Not present in rural market  IRDAI intervention
 National level advertisement  FDI Limit increased to 49%

2.2 Promotional strategies of IDBI

Promotion it is an action taken by a company's marketing staff with the intention of encouraging the sale of a
good or service to their target market. These are:

 To present information to consumers as well as others.

 To increase demand.
 To differentiate a product

PROMOTIONS STATS AT IDBI FEDERAL LIFE INSURANCE COMPANY LIMITED

Following are the main ways in which IDBI Federal life Insurance company ltd promotes its products/services
and creates awareness in the market.

 PRINT MEDIA: The main ways of advertising via print media are as follows:
 Newspaper
PAPER PAGE COST (IN Rs.)

Economic times 3rd 320 per sq. cm

TOI 3rd 320 per sq. cm

Hindu 1st 400 per sq. cm

  Hoardings
As of now, the total number of hoardings which are put up in Hyderabad region counts to a good 17
number.
COST (IN Rs.) TIME LEASE

4,00,000 3 months

 Pamphlets
Pamphlets are distributed across India at least 5 times in a month without any cost. It’s done to create
maximum awareness about the products/services.
 Magazines
There is no specific magazine in which advertisement is given. It’s given in magazines depending upon
their sales and reputed magazines like Outlook, Money etc. The advertisement is given every month
at least once in any magazine.
 TELEVISION
Mainly, the advertisement is shown on cricket channels, Star channels. The main promotions were
done during FEB & MARCH to:
 Highlight Tax benefits.
 To combat competition as all the Insurance companies would advertise during this time at a great
frequency.

Also the company start displaying their advertisements on Satellite TV like SUN network, etc.

 CREATING TV COMMERCIAL: The complete cost of making a commercial which includes all
the equipment’s, actors, etc. is approximately Rs.20 lacs. The company has tie-up with Ogilvy and
Mather as its advertising agency along with Equinox (TLG) as its media partner. The life of usage of
a single television commercial is 2 years.
 RUNNING THE TVC: Following are the costs associated with running the TVC:

REGION/CHANNEL COST (IN Rs.) DURATION/SLOT

Tamil Nadu 45,000 10 seconds
Local channels 6,000-8,000 10 seconds
Cricket channels 60,000 Onwards 10 seconds

Mainly the ads are shown in between TV soaps and Cricket matches to gain attention of the consumers.

 DISTRIBUTORS: A strong network of distributors and parent advisors also helps a lot in promoting
products/services of IDBI Federal by WORD OF MOUTH. A Viral campaign is also run on the
Internet by wherein flash videos of working of products is explained in a very humorous manner.
  LOCAL EVENTS: Some great events are also conducted in and out the city to create more awareness
about the IDBI Federal and free gifts are given wherein local marketing people interactct with the
prospects and try to gauge their financial needs and respectively pitch the products. The overall costs
associated with such events totals to Rs.2, 00,000 per annum such events are mainly conducted in
Apartments, Schools, etc.

2.3 CRM policies of IDBI

Changes in customer expectations can be identified throughout the world. Customer relationship management
(CRM) strategies have become increasingly important worldwide due to these changes in expectations from
customers as well as changes in the nature of markets. Changes have been noted across the world, but
opportunities present themselves in South Africa and other developing countries for CRM strategies.
Customer Relationship Management (CRM) is a managerial philosophy that seeks to build long term
relationships with customers.
CRM can be defined as “the development and maintenance of mutually beneficial long-term relationships
with strategically significant customers”. Under certain circumstances it may result in the termination of
relationships. It can also be noted that the relationship is developed with strategically significant customers,
and hence it is necessary for the organization to determine the nature of the significance. Traditionally this
would be done by determining the value of the customer to the organization, but other criteria that can be used
include whether a customer serves as a benchmark for other customers or whether the customer inspires
change in the supplier.
The implementation of CRM is regarded as desirable by organizations due to the benefits that accrue from
these strategies among their customers, such as greater loyalty and resulting profits. The focus of a CRM
strategy is the acquisition, retention and overall customer profitability of the specific group of customers.
 Acquisition of customers: This refers to the need of organization to find new customers for their
products. This means they are required to develop strategies to attract potential customers to purchase
the product. The cost of attracting a new customer is estimated to be five times the cost of keeping a
current customer happy.
 Retention of customers: Organizations also need to focus on existing customers in order to ensure
that they continue purchasing and continue supporting the product. Organizations can increase their
profitability by between 20% and 125% if they boost their customer retention rate by 5 percent.
 Profitability: Customer profitability reflects the financial performance of customers with respect to
all the costs associated with a transaction. Profitability in the case of CRM is determined in the light
of the lifetime value of the customer to the organization, taking account the income and expenses
associated with each customer and their respective transactions overtime.
In attempting to understand the implementation of CRM programmes, it must be borne in mind that economies
differ in terms of their level of development. Two economic criteria can be used in this economic analysis -
population size and per capita income have been incorporated into the calculation of per capita GNP and
per capital GDP. This analysis makes it possible to categorize economies as being Developed, Developing
and Less-Developed.

 Developed economies are characterized by political stability, highly-educated and

literate populations, high levels of innovation and entrepreneurship as well as high levels of both
industrial and information technology.
 Less-developed economies (such as Bulgaria, Bangladesh and Ethiopia) have political instability
(sometimes political anarchy), government inefficiency, low standards of living and low levels of
economic wealth.
 An emerging market (or developing economy) is defined as markets that are in the process of
evolving to becoming developed (i.e. higher income).

Developing economies have the following characteristics:

 Improving educational standards, literacy and work skills levels
 Relatively efficient technology systems
 Relative political stability and a movement towards market-based economies
 Rapidly expanding financial services.

The characteristics of developing economies as listed above form part of the imperatives for the
implementation of CRM. CRM includes the use of technology in the building of databases and the use thereof
to develop and improve the relationship with the various markets, including the final consumer. In order to
exploit this technology, skills among staff are required. Organizations within developing markets have
customer information in databases, though many do not have the advanced technology or skills to exploit the
information that is stored. This indicates that CRM can be used within developing markets, though
organizations will still be required to manage its implementation with care.

2.4 Market mix of IDBI

The term insurance marketing refers to the marketing of Insurance services with the aim to create customer
and generate profit through customer satisfaction. The Insurance Marketing focuses on the formulation of an
ideal mix for Insurance business so that the Insurance organization survives and thrives in the right
perspective. The marketing mix includes sub-mixes of the 7 P’s of marketing i.e. the product, its price, place,
promotion, people, process & physical attraction. The above mentioned 7 P’s can be used for marketing of
Insurance products, in the following manner:
PRODUCT:

A product means what we produce. If we produce goods, it means tangible product and when we produce or
generate services, it means intangible service product. A product is both what a seller has to sell and a buyer
has to buy. Thus, an Insurance company sells services and therefore services are their product. When a person
or an organization buys an Insurance policy from the insurance company, he not only buys a policy, but along
with it the assistance and advice of the agent, the prestige of the insurance company and the facilities of claims
and compensation. It is natural that the users expect a reasonable return for their investment and the insurance
companies want to maximize their profitability. Hence, while deciding the product portfolio or the product-
mix, the services or the schemes should be motivational. IDBI Federal provides many products which cater
to the needs of the Indian customers. IDBI Federal products:-

 Wealthsurance
 Childsurance
 Incomesurance
 Lifesurance

PRICING:

In the insurance business the pricing decisions are concerned with:

 The premium charged against the policies

 Interest charged for defaulting the payment of premium and credit facility, and
 Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of pricing strategy becomes
significant. In a developing country like India where the disposable income in the hands of prospects is low,
the pricing decision also governs the transformation of potential policyholders into actual policyholders. The
strategies may be high or low pricing keeping in view the level or standard of customers or the
policyholders. The pricing in insurance is in the form of premium rates.

The three main factors used for determining the premium rates under a life insurance plan are mortality,
expense and interest. The premium rates are revised if there are any significant changes in any of these factors.

 Mortality (deaths in a particular area): When deciding upon the pricing strategy the average rate of
mortality is one of the main considerations. In a country like South Africa the threat to life is very
important as it is played by host of diseases.
 Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration
are all incorporated into the cost of instalments and premium sum and forms the integral part of the pricing
strategy.
 Interest: The rate of interest is one of the major factors which determine people’s willingness to invest in
insurance. People would not be willing to put their funds to invest in insurance business if the interest rates
provided by the banks or other financial instruments are much greater than the perceived returns from the
insurance premiums.

PLACE:
This component of the marketing mix is related to two important facets

 Managing the insurance personnel, and

 Locating a branch.

The management of agents and insurance personnel is found significant with the viewpoint of maintaining the
norms for offering the services. This is also to process the services to the end user in such a way that a gap
between the services- promised and services offered is bridged over. In a majority of the service generating
organizations, such a gap is found existent which has been instrumental in making worse the image problem.

Thus the place management of insurance branch offices needs a new vision, distinct approach and an
innovative style. This is essential to make the work place conducive, attractive and proactive for the generation
of efficiency among employees. IDBI Federal has around thousands and thousands of insurance agents all
over India to manage their regional customers effectively. Also, IDBI Federal has over 796 branches all over
India which help in increasing their customer base.

PEOPLE:

Understanding the customer better allows in designing appropriate products. Being a service industry which
involves a high level of people interaction, it is very important to use this resource efficiently in order to
satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be
kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is
one of the important areas to look into. IDBI Federal has created various financial products which have been
tailored according to the needs of the customers. They have over thousands of sales personnel who are trained
efficiently to bridge in the gap between the customers and the company.

PROCESS:

The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great
importance. The processing method should be easy and convenient to the customers. Instalment schemes
should be streamlined to cater to the ever grow.

PROMOTION:
The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy
is very high and the rural economy has dominance in the national economy. It is essential to have both personal
and impersonal promotion strategies.

In promoting insurance business, the agents and the rural career agents play an important role. Due attention
should be given in selecting the promotional tools for agents and rural career agents and even for the branch
managers and front line staff. Advertising and Publicity, organization of conferences and seminars, incentive
to policyholders are impersonal communication. Arranging parties, exhibitions, participation in fairs and
festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective
in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders.

2.5 Segmentation of IDBI

1. The Beginners

• New to the professional world and looking forward to consolidation of their social and professional
position

• 22 to 28 year old

• Below 6 Lakhs per annum

2. The Crossovers

• Professionals who have matured into reliable entities in their respective fields of work. Highly
optimistic about investments and more willing to take risks with fallback plans.

• 6 to 10 Lakhs per annum.

• 28 to 35 years old

3. The Achievers

• Looks for ease of options and retains the risk taking habits of the crossovers up to some extent. But
family and other responsibilities tend to make this segment increasingly more risk averse. But invest
big.

• 10 to 18 Lakhs per annum

• 35 to 50 years old
4. The Desperate Fliers

• Looks for providing to children, pure life insurance seekers.

• 18 Lakhs per annum and above

• 50 to 60 years old

5. The underachievers

• Low income group

• Behavior and perceptions are similar to the beginners. Suspicious

• Ceiling income is 2 Lakhs per annum

 CHAPTER-3
MARKETING ASPECT
3.1 Customer’s Expectations

Customer’s expectations are beliefs about service delivery that function as standards or reference points
against which performance is judged. Because customers compare their perceptions of performance with these
reference points when evaluating service, quality, thorough knowledge about customer expectations is critical
to service providers. Knowing what the customer expects to say that expectations are reference points against
which service delivery is compared is only a beginning. The level of expectation can vary widely depending
on the reference point the customer holds. Although everyone has an intuitive sense of what expectations are,
service providers need a far more thorough and clear definition of expectations in order to comprehend,
measure, and manage them.

EXPECTED SERVICE: LEVELS OF EXPECTATIONS

It is the level of service the customer hopes to receive – the “wished for” level of performance from any service
provider. Desired service is a blend of what the customer believes “can be” & “should be”. The expectations
reflect the hopes and wishes of these consumers: without these hopes and wishes and the beliefs that they may
be fulfilled, they would probably not have purchased the desired service or product. Customers hope to achieve
their service desires but recognize that this is not always possible.

Desired service expectations seem to be the same for the service providers within industry categories or
subcategories that are viewed as similar by customers. The adequate service expectation level, on the other
hand, may vary.

3.2 Customer Perception

Perceptions are always considered relative expectations. Because expectations are dynamic, evaluation may
also shift over the time – from person to person from culture to cultures. Customers perceive the services in
terms of the quality of the service and how satisfied they are all over with their experiences. These customers
– oriented terms – quality and satisfaction – have been the focus of attention for executives and researcher
alike over the last decade or more. Companies today organize so that they can compete more effectively by
distinguishing themselves with respect to service quality and improved customer satisfaction.

3.3 Customer Satisfaction versus Service Quality

Although they have certain things in common, satisfaction is generally viewed as a broader concept, whereas
service quality assessment focuses specially on dimensions of service. Based on this view perceived service
quality is a component of customer satisfaction.
Service quality is a focused evaluation that reflects the customer’s perceptions of elements of service such as
interaction quality, physical environment quality, and outcome quality. These elements are in turn evaluated
based on specific service quality dimensions: Reliability, assurance, responsiveness, empathy and tangibles.
Satisfaction, on the other hand, is more inclusive: it is influenced by perception of service quality, product
quality and price as well as situational factors and personal factors.

3.4 Customer Satisfaction

Customer satisfaction indicates the fulfillment that customers derive from doing business with a firm. In other
words, it’s how happy the customers are with their transaction and overall experience with the company.
Customers derive satisfaction from a product or a service based on whether their need is met effortlessly, in a
convenient way that makes them loyal to the firm. Hence, customer satisfaction is an important step to
gain customer loyalty. It is also important to recognize that, to measure the customer satisfaction at a particular
point of time as if it were static, satisfaction is a dynamic, moving target that may evolve over the time,
influenced by a variety of factors. Particularly when product usage or the service experience takes place over
the time, satisfaction may be highly variable depending on which point the usage or experience cycle is
focused on.
3.5 Outcomes of Customer Satisfaction

Individual firms have discovered that increasing the levels of customer satisfaction can be linked to customer
loyalty and profits. There is an important relationship between customer satisfaction and customer loyalty.
This relationship is particularly strong when customers are very satisfied. Thus firms that simply aim to satisfy
customers may not be doing enough to endanger loyalty – they must instead aim to more than satisfy or even
to delight their customers. At the opposite end of the satisfaction spectrum, reports have also found that there
is a strong link between dissatisfaction and disloyalty – or defection. Loyalty can fall off precipitously when
customers reach a particular level of dissatisfaction or when they are dissatisfied with service.

3.6 Service Quality

Service quality is a critical element of customer perception. In the case of pure services, service quality will
be the dominant element in customers’ evaluations. In cases where customer service or services are offered in
combination with a physical product, service quality also determine customers’ satisfaction. Customers judge
the quality of services based on their perceptions of the technical outcome provided, the process by which that
outcome was delivered, and the quality of the physical surroundings where the service is delivered. Similarly,
a restaurant customer will judge the service on her perceptions of the meal (technical outcome quality) and on
how the meal was served and how the employees interacted with here (interaction qualify) the décor and
surroundings (physical environmental quality) of the restaurant will also impact on customer service quality.
Service quality is defined as how well the service meets or exceeds the customers’ expectations on a consistent.
The difficulty, however, is that service quality, unlike product quality, is more abstract and elusive, because
of features unique to services: intangibility, inseparability, heterogeneity and perish ability and is therefore
difficult to measure.
 CHAPTER-4
DATA ANALYSIS
4.1 DATA COLLECTION IN FIELD OF MARKETING

1. What is your gender?

a) Male
b) Female

Findings

The same size is almost equally balance among the two genders.

2. What is your age?

a) 20-25
b) 26-30
c) 31-35
d) 36-40
e) 40 & above

Findings

Most of the respondent is between the ages of 20-25

 3. What is your profession?
a) Professional – Doctor, Lawyer, CA, CS etc.
b) Businessman
c) Employee
d) Student

5%

Professional

36% 46%
Businessman

Employee

13%
Student

Findings

Most of the respondent are professionals and employees

4. You belong to which income group?

a) Below 1 lac
b) 1 lac-2.5 lac
c) 2.51 lac-4 lac
d) 4.01 lac-6 lac
e) 6.01 lac & above

Findings
A huge size of respondents belongs to below 1 lac income group also 16% of respondent belongs to income
group more than 6 lac.

5. Do you have any insurance?

a) Yes
b) No

Findings

56% of people are insure among all the respondents but still 44% of aren’t that shows that there is huge
potential in market.

6. Have you heard of IDBI federal life insurance company?

a) Yes
b) No

Findings

75% of people knows about the IDBI Federal life insurance company.

7. If yes, then mention the source from where you have heard?
a) TV ad
b) Newspaper/Magazine
c) Internet
 d) Personal E-mail/ SMS
e) Word of mouth
f) From IDBI Federal’s salesperson
g) Others

Findings

Mostly it’s from the IDBI federal’s salesperson from whom customer came to know about the company and
then it’s the TV.

8. Which of the following IDBI Federal product have you heard of?
a) Incomesurance
b) Lifesurance
c) Wealthsurance
d) Childsurance

Findings

Lifesurance is the most product known among the customers.

9. Do you know any of the following unique features and benefit of IDBI federal life insurance?
a) tax reduction
 b) guaranteed annual payout
c) endowment or money back
d) flexible payout option
e) premium payment option
f) lump sum cover option
g) none of them

Findings

IDBI is known among the customers for its Tax reduction feature mostly but also a big part of respondents
doesn’t know any of the features that shows lack of awareness about the IDBI products among the customers.

10. If you are not interested to buy IDBI FEDERAL insurance policy, can you please write the reason?
___________________________________________________

Findings

The common reasons of not going for IDBI is the most has the Trust issues with IDBI and Low returns.

11. How long you have been the customer of IDBI Federal Life Insurance Co Ltd
a) Below 5 years
b) 5-10 years
c) 10-15 years
d) 15-20 years
e) Above 20 years
 7% 5%

11%

25%
52%

below 5 years 5-10 years 10-15 years 15-20 years 20 years above

Findings

52% of respondents are customer of IDBI Federal Life Insurance Co Ltd

12. IDBI Federal Life Insurance shows a sincere interest in solving your problems
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

60% 54%

50%

40%

30%
20% 19%
20%

10% 7%
0%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

54% people agree that IDBI Federal Life Insurance shows a sincere interest in solving your problems
 13. IDBI Federal Life Insurance performs the right service at first time
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

70%

60% 58%

50%

40%

30% 26%

20%
11%
10% 5%
0%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

As expected 58% respondents are satisfied with IDBI service

14. IDBI Federal Life Insurance keeps you informed about when services will be performed
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree
 60%

50%
50%

40%

30%
30%

20%
20%

10%

0% 0%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

50% of the people agree with this

15. The employees in IDBI Federal Life Insurance always willing to help you
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

45.0% 42.5%

40.0%
35.5%
35.0%

30.0%

25.0%

20.0%
16.0%
15.0%

10.0%
4.5%
5.0% 1.5%
0.0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

Mind bogglingly 42.5% agree that IDBI employees are always willing to help
 16. The behaviour of the employees of the IDBI Federal Life Insurance inspires confidence in you
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

50% 47%
45%

40%

35% 33%

30%

25%
20%
20%

15%

10%

5%
0% 0%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

Many people agree with this but most of the respondents are having neutral/uncertain opinion

17. You feel safe in your transactions with IDBI Federal Life Insurance
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree
 60%
52%
50%

40%

30%
25%
22%
20%

10%

0% 1%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

52% people feel safe while doing any transaction with IDBI

18. The employees in IDBI Federal Life Insurance have the knowledge to answer your questions
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

50%
45%
45%

40%
35%
35%

30%

25%
20%
20%

15%

10%

5%
0% 0%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

45% respondents are agree with this

 19. IDBI Federal Life Insurance gives you individual attention
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

60%
55%

50%

40%

30%
30%

20%

10%
10%
5%
0%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

55% respondent think IDBI Company give individual attentions to its customer

20. The employees in IDBI Federal Life Insurance consistently courteous with you
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree
 60% 56%

50%

40%

30%
24%
20%
20%

10%

0% 0%
0%
Strongly Disagree Disagree Uncertain/Neutral Agree Strongly Agree

Findings

56% respondent think IDBI Federal Life Insurance show consistently courteous with them

21. Would you recommended IDBI Federal Life Insurance to your relatives/ Friends/colleagues?
a) Yes
b) No

28%

72%

Yes No

Findings

72% respondents would like to recommend IDBI Federal Life Insurance to your relatives/
Friends/colleagues

4.2 Scope of survey

Report Design: - My report is a Descriptive report. I have selected this topic and at first made an exploratory
report. I have collected the data to make the report. Here, I would use the SERVQUAL Scale for measuring
customers’ perception.

Population: - The questionnaire would be distributed to those customers who have taken any kind of services
from this bank, whether they are account holder of this bank or not. I think that population size is small so I
would take 100 sample size for my report.

Survey method: - I have made the detailed questionnaire for my survey. I would collect the data both from
primary source and secondary source.

Sample size: - For conducting my report total sample size would be 100.

Sampling technique: - For customer interview I would use non probability convenience sample.

Statistical Tool: - I will take the use of descriptive statistics. I would input the data into SPSS and get the
output of those data’s. I would follow the below mentioned steps to prepare the report:

 Define the problem

 Planning the report design.
 Plan the sample.
 Gather the data.
 Process and analyze the data.
 Formulate, conclude and prepare the report.

4.3 Objections

In the current study, the report have used seven important dimensions like reliability, responsiveness,
assurance, empathy, tangibles, satisfaction and customer perceived value in the service quality perceptions
and customer satisfaction relationship of IDBI Federal Life Insurance Corporation Limited.

The current study will identify the customer service quality of IDBI Federal Life Insurance Corporation
Limited considering key dimensions such as reliability, responsiveness, assurance, empathy, satisfaction,
tangibles and customer perceived value.

 Secrecy or confidentiality is a crucial matter in this organization. As an intern it was not possible to
reach those secret topics.
 Not able to collect information from all the clients.
 Limited service hour.
 It was difficult to find out the gap between rules and regulations and real life practice.
 CHAPTER-5
BCG MATRIX
The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in
1970 to help corporations with analysing their business units or product lines. This helps the company allocate
resources and is used as an analytical tool in brand marketing, product management, strategic management,
and portfolio analysis.

Market Growth/Market-Share Matrix

 A strategic planning tool based on the philosophy that a product’s market growth rate and
market share are important in determining marketing strategy

 Factors determining SBU/product’s position within a matrix

 Product-market growth rate

 Relative market share

Relative market share of a firm = Market share in industry/market share of the largest other competitor

• > 1 indicates market leader

Assumption:

Other things equal

Growing market is attractive

Line separating high & low competition position set at 1.5 times (needed to have dominant position & to be
called as star/cash cow), <1 times -dog status

Star-

Market leader, peak of product life cycle, enough cash to maintain high share (market),

Growth rate slow -becomes cash cows,

More resources -investment to support high growth

No immediate profits -great potential -future Medium risk category

Question Marks (Problem children/wild cats)-

New products with potential for success

More resources bit future uncertain

High risk category

Money taken from mature products & spent on?

Slow growth→ dogs

Cash cows-

More money than needed for maintaining market share -Declining stage of life cycle Cash milked from for
investment in?

Higher profit

Dogs-

Weak market share, low growth market cash trap of the company

Identify Issues -current position & future position without change in the strategy
 FINDINGS,
RECOMMENDATIONS
& BIBLIOGRAPHY
 FINDINGS

 Company still lacks in creating awareness among the customers.

 Customer knows about the brand IDBI Federal Life insurance but hardly about its product and their
features.

 Though brand name plays an important role in influencing the customer but also advertisement play
even bigger role. While doing this report work, I find good marketing of any product can help it to
grow its sales and create a positive brand image in the eye of its customer.

 There is hardly any presence of company on online platform where the huge portion of population
spends their most of time, also they find online advertisement more attractive than TV.

 60% of people do insurance for tax saving and other 40% to cover risks and uncertainties and this
shows that the company’s strategy to only advertising in the month of FEB & MAR because that’s
time people go for tax savings and all is not so fully good enough.
 RECOMMENDATIONS

 Nowadays customer thinks a lot about the rate of return on his investment. If we made a product which
just gives customer life cover but not the return of investment then this product have a very little
chances of being liked by customers.

 Most of the LIC life insurance policies are very poor in terms of rate of return. Hence after
liberalization like the other private companies, IDBI should also create policies which will give a
higher rate of return.

 IDBI federal is blessed with the promoters like IDBI bank and Federal bank which together have one
of the largest banking network in India. IDBI bank, being a government owned bank, has presence in
many rural areas. IDBI Federal should capitalize on the infrastructure that can be provided by IDBI
bank. I suggest that we should have one small cabin or at least a table reserved for IDBI insurance.
Hence, we can increase company’s presence in rural areas and that too in a cost effective way.

 The rural areas in India is a big untapped market for private sector insurance companies with presence
of only one or two competitors like LIC. IDBI Federal should start extending its presence over rural
areas before SBI insurance does it.

 There is a huge difference between urban and rural buying behavior considering price as a factor. I
suggest that there should be different minimum premium amount allocated to an urban and rural
customer. This can be decided on the basis of the address of the customer.

 We can give more benefits for rural customers if they are willing to pay higher annual premium. Many
customers from rural area liked Wealthsurance but were asking for annual premium less than Rs.25000

 IDBI Federal is quite lagging behind its competitors in terms of promotions. Being a new company in
the market, there should be aggressive promotion done.

 The company can also go for celebrity endorsements as customers go for celebrity endorsed brands as
they attach some value to the product when it is endorsed by any celebrity.
 BIBLIOGRAPHY

www.google.com

www.wikipedia.org

www.yahoo.com/question-answer/

www.idbifederal.com

www.ageas.com

www.federal.com

www.irda.org

http://en.wikipedia.org/wiki/Q_methodology

http://www.studymode.com/essays/Market-Segmentation-40523.html

http://www.idbifederal.com/Products/Healthsurance/Page/What-is-
Healthsurance.aspx#

http://www.swissre.com/media/news_releases/Swiss_Re_sigma_study_on_world_insura
nce_in_2012_shows_premium_growth_resumed.html

http://www.academia.edu/6509232/IDBI_LIFE_INSURANCE_MARKET_SEGMENT
ATION
 ANNEXURE

1. What is your gender?

a) Male
b) Female

2. What is your age?

a) 20-25
b) 26-30
c) 31-35
d) 36-40
e) 40 & Above

3. What is your profession?

a) Professional – Doctor, Lawyer, CA, CS etc.
b) Businessman
c) Employee
d) Student

4. You belong to which income group?

a) Below 1 lac
b) 1 lac-2.5 lac
c) 2.51 lac-4 lac
d) 4.01 lac-6 lac
e) 6.01 lac & Above

5. Do you have any insurance?

a) Yes
b) No

6. Have you heard of IDBI federal life insurance company?

a) Yes
b) No
7. If yes, then mention the source from where you have heard?
a) TV ad
b) Newspaper/Magazine
c) Internet
d) Personal E-mail/ SMS
e) Word of mouth
f) From IDBI Federal’s salesperson
g) Other

8. Which of the following IDBI Federal product have you heard of?
e) Incomesurance
f) Lifesurance
g) Wealthsurance
h) Childsurance

9. Do you know any of the following unique features and benefit of IDBI federal life insurance?
a) tax reduction
b) guaranteed annual payout
c) endowment or money back
d) flexible payout option
e) premium payment option
f) lump sum cover option
g) none of them

10. If you are not interested to buy IDBI FEDERAL insurance policy, can you please write the reason?

_________________________________________________________________________

11. How long you have been the customer of IDBI Federal Life Insurance Co Ltd
a) Below 5 years
b) 5-10 years
c) 10-15 years
d) 15-20 years
e) Above 20 years
12. IDBI Federal Life Insurance shows a sincere interest in solving your problems
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

13. IDBI Federal Life Insurance performs the right service at first time
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

14. IDBI Federal Life Insurance keeps you informed about when services will be performed
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

15. The employees in IDBI Federal Life Insurance always willing to help you
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

16. The behaviour of the employees of the IDBI Federal Life Insurance inspires confidence in you
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree
17. You feel safe in your transactions with IDBI Federal Life Insurance
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

18. The employees in IDBI Federal Life Insurance have the knowledge to answer your questions
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

19. Federal Life Insurance gives you individual attention

a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

20. The employees in IDBI Federal Life Insurance consistently courteous with you
a) Strongly Disagree
b) Disagree
c) Uncertain/Neutral
d) Agree
e) Strongly Agree

21. Would you recommended IDBI Federal Life Insurance to your relatives/ Friends/colleagues?
a) Yes
b) No