CHAPTER NO- 3

THEORETICAL
BACKGROUND
3.1 Brief Review of Literature:-

A literature review is an evaluative report of information found in the literature related to

your selected area of study. The review should describes, summaries, evaluates and
clarifies this literature. It should give a theoretical base for the research and help you to
determine the nature of your research. Works which are irrelevant should be discarded
and those which are peripheral should be looked at critically.

A literature review is more than the search for information, and goes beyond being a
descriptive annotated bibliography. All works included in the review must be read,
evaluated and analysed. Relationships between the literatures must also be identified and
articulated, in relation to your field of research.

In writing the literature review, the purpose is to convey to the reader what knowledge
and ideas have been established on a topic, and what their strengths and weaknesses are.
The literature review must be defined by a guiding concept (e.g. your research objective,
the problem or issue you are discussing or your argumentative thesis). It is not just a
descriptive list of the material available, or a set of summaries.

On the basis of review of literature, the following conclusions can be made regarding the
relative amount of published research;

 K. Selva Kumar and Dr. S. Vijay Kumar (2013)

In their article, “Attitude of policy holders in the direction of administration of

general insurance companies with orientation to Madurai region” The study reveals
that 23% policy holders belongs to low level of attitude, 46% to medium level of
attitude and 31% to high level of attitude. There is an important relationship between
ages, sex, education, and marital status, type of family, community and level of their
attitude headed for administration of services of public sector general insurance
 companies holds good.

 J. Jaypradha (2012)

In the article, “Problems and prospects of health insurance in India” highlighted that
the health insurance sector in India has registered 30% growth rate in 2008- 09. The
penetration of health insurance in India had risen to 4.8%, in 2008 from 1.2% in
1999-2000. The average medical expenditure of an Indian household is 6.7% of the
annual income.

 Ravikant Sharma (2011)

In his paper, “A Comparison of Health Insurance Segment- India vs. China” seeks to
compare both the economies India and China on health insurance aspect. Both

economies have huge potential of health insurance and 45% of world‟s population

lives in both the countries.

 P. Jain (2010)

In his paper, “Problems faced by the Health Insurance Policyholders of Different

Public and Private Health Insurance Companies for Settlements of their Claims”
Measure the problem faced by customers. The objectives were to study reason for
refusal of claim, satisfaction level of customer and problems faced by them in
getting their claim.

 Ashok Vikhe Patil (2002)

 Published an article entitled “Current Health Scenario in Rural India” in ‘Australian
Journal of Rural Health’. In this study seven that. About 75% of health
infrastructure, medical man power and other health resources are concentrated in
urban areas where 27% of the population lives. Contagious, infectious and
waterborne diseases such as diarrhoea, amoebiasis, typhoid, infectious hepatitis,
worm infestations, measles, malaria, tuberculosis, whooping cough, respiratory
infections, pneumonia and reproductive tract infections dominate the morbidity
pattern, especially in rural areas. However, non-communicable diseases such as
cancer, blindness, mental illness, hypertension, diabetes, HIV/AIDS, accidents and
injuries are also on the rise. The health status of Indians, is still a cause for grave
concern, especially that of the rural population. This is reflected in the life
expectancy (63 years), infant mortality rate (80/1000 live births), maternal mortality
rate (438/100 000 live births); however, over a period of time some progress has
been made. To improve the prevailing situation, the problem of rural health is to be
addressed both at macro (national and state) and micro (district and regional) levels.
This is to be done in an holistic way, with a genuine effort to bring the poorest of the
population to the centre of the fiscal 44 policies.

 Ramesh Bhat and Falan Reuben (2001)

In their article, “Analysis of claim and reimbursements made under mediclaim

policy of general insurance corporation of India” analyses 621 claims and
reimbursements data relating to policy beginning year 1997-98 and 1998-99 of
Ahmadabad. They found that number of policies and premium collected have grown
30% during 1998- 00 and 50% during 1999-2000.

 R. P. Ellis (2000)
 In the article, “Health insurance in India- Prognosis and Prospects” tries
to review a variety of health insurance system in India, their limitation and role of
the general insurance corporation as an important insurance agency. They focused
the need for a competitive environment. This paper recommends improvement in
delivery of health care and its financing, efficient functioning of the ESIS and CGHS
and amending the mediclaim system and alteration in exclusion clause.

3.2 Conceptual framework:-

 Customer Awareness:

Introduction:-

Consumer Awareness is an act of making sure the buyer or consumer is aware of the
information about products, goods, services, and consumers rights. Consumer
awareness is important so that buyer can take the right decision and make the right
choice. Consumers have the right to information, right to choose, right to
safety. Consumer Awareness is the process of making the consumer of goods and
services aware of his rights. It involves educating a consumer about safety,
information and the redressed options available to him.

Definition:
Consumer Awareness is an act of making sure the buyer or consumer is aware of
the information about products, goods, services, and consumers rights. Consumer
awareness is important so that buyer can take the right decision and make the
right choice.
Consumer Rights

 Right to Safety:

This is the first and the most important of the Consumer Rights. They should be
protected against the product that hampers their safety. The protection must be
against any product which could be hazardous to their health – Mental, Physical or
many of the other factors.

 Right to Information:

 They should be informed about the product. The product packaging should list the
details which should be informed to the consumer and they should not hide the same
or provide false information.

 Right to Choose:

They should not be forced to select the product. A consumer should be convinced of
the product he is about to choose and should make a decision by himself. This also
means consumer should have a variety of articles to choose
from. Monopolistic practices are not legal.

 Right to Heard:

If a consumer is dissatisfied with the product purchased then they have all the right to
file a complaint against it. And the said complaint cannot go unheard, it must be
addressed in an appropriate time frame.

 Right to Seek Redressal:

In case a product is unable to satisfy the consumer then they have the right to get the
product replaced, compensate, return the amount invested in the product. We have a
three-tier system of redressal according to the Consumer Protection Act 1986.

 Right to Consumer Education:

 Consumer has the right to know all the information and should be made well aware
of the rights and responsibilities of the government. Lack of Consumer awareness is
the most important problem our government must solve.

Responsibilities of a Consumer:

The consumer has a certain responsibility to carry as an aware consumer can bring changes
in the society and would help other consumers to fight the unfair practice or be aware of it.

 They should be aware of their rights under the Consumer Protection Act and
should practice the same in case of need.

 They should be well aware of the product they are buying. Should act as a cautious
consumer while purchasing the product.

 If in case a product is found of anything false or not satisfactory a complaint

should be filed.

 The consumer should ask for a Cash Memo while making a purchase.

 A customer should check for the standard marks that have been introduced for the
authenticity of the quality of the product like ISI or Hallmark etc.

Dealing with Advertisements:

Advertisements have become a part and parcel of our lives and even if we try we
cannot avoid them. Companies are trying to sell their products by making attractive
audiovisuals, publishing only that part which may be eye catching and hiding other
crucial information and so on. Consumers need to be cautious of such deceptive
advertisements. Children are the worst victims. They need to be guided properly.

Buying Quality Certified Products:

There are lot of products which are certified by recognized agencies as safe to
consume and good in quality. For example the Indian Standard Institute (ISI)
conducts quality testing of many consumer goods. If found proper the product is
labeled with ISI mark on it. For many food products the quality assurance is
certified by seal called AGMARK. Consumers should choose products with ISI
 mark and AGMARK. A very important thing before purchasing food products or
medicines etc is that the consumer must see the expiry date.

Demanding Bill of the Purchase:

Every consumer must demand the bill after purchase of goods and services. The bill
is the proof of purchase and can be used to seek justice if the consumer feels
cheated after buying the commodity. Through the bill the consumer also ensures
that the government receives tax on the product because it is mandatory for the
seller to mention the tax amount on the bill. Such act of the consumer makes
him/her a responsible citizen of the country.

Being a Green Consumer:

A consumer must consume those products which do not cause damage to our
environment. Plastic bag is one example which has caused serious damage to the
environment. People should use biodegradable products which can easily mix with
soil and water after they are disposed off. Similarly people should save electricity,
gas etc by judicious use. Consumers are also responsible for automobile pollution in
town and cities. They should use public transport system and eco-friendly vehicles.

Consumers as Managers:

Consumers can unite together to provide themselves and the community at large of
a locality or village some basic needs such as drinking water supply, health,
education etc. It is the government who acts as the manager for delivery of services.
But the government departments are often blamed for inefficient and erratic delivery
of such services. So consumers can unite to provide such services

 CONSUMER BEHAVIOUR :

Introduction:
The main aim of marketing is to meet and satisfy target customers need and Wants
buying Behavior refers to the peoples or organization conduct activities and together with
the impact of various influence on them towards making decision on purchase of product
and service in a market. The field of customer behavior studies how individual, groups
and organization select, buy, use and dispose of goods, service, ideas, or experience to
satisfy their needs and desire understanding customer behavior and knowing customer are
never simple. The wealth of product and service produced in a country make our
economy strong. The behavior of human being during the purchase is termed as “Buying
Behavior”. Customer says one thing but do another. They may not be in touch with their
deeper motivations. They are responding to influences that change their mind at the last
minute. A buyer makes take a decision whether save or spend the money.

Definition:
Buying behavior is “All psychological, Social and physical behaviors of potential
customers as they became aware of evaluate, purchase, consume and tell others about
product and service.”

Customer Buying Decision Process:

There are following five stages in consumer buying decision process;

1. Problem Identification:
The buying process starts when the buyer recognized a problem or need. The need can be
triggered by internal or external stimuli .Marketers need to identify the circumstances that
trigger particular need .By gathering information from a number of consumers, Marketers
can identify the most frequent stimuli that spark an interest in a product category. They
can then develop marketing strategies that trigger consumer interest.

2. Information Search:
The customer tries to collect information regarding various products/service. Through
gathering information, the customer learns about completing brands and their features.
Information may be collected from magazines, catalogues, retailer, friend, family
members, business association, commercial, chamber of commerce, telephone directory,
trade fair etc. Marketers should find out the source of information and their relative
degree of importance to the customers.
Personal sources: Family, Friends, Neighbor, As Quittances.
Commercial sources: Advertising, Sales Persons, Dealers, Packaging, Displays.
Public sources: Mass Media, Customer, Rating Organizations.
Experimental sources: Handling Examine, Using the Product.

3. Evaluation of Alternative:
There is no single process used by all customers by one customer in all buying situations.
There is several first, the customer process, some basic concepts are:
First, the customer is trying to satisfy need.
Second, the customer is looking for certain benefits from the product solutions. The
marketer must know which criteria the customer will use in the purchase decision.

4. Choice of Purchasing Decision:

From among the purchase of alternatives the customer makes the solution. If may be to
buy or not to buy. If the decision is to buy . The other additional decisions are:
 Which types of bike he must buy?
 From whom to buy a bike?
 How the payment to be made? And so on.

The marketer up to this stage has tried every means to influence the purchase behavior,
but among the brands in the choice set. The customer may also form an intention to but
the most preferred brand.

5. Post Purchase Behavior:

After purchase the product, the customer will experience the same level of product. The
marketers job not end when the product is buying must monitor post purchase
satisfaction, post purchase action, post purchase use and disposal.
 Post Purchase Satisfaction:

The buyer, satisfaction is a function of closeness between the buyer, expectation and
the product perceive performance. The larger the gap between expectation and
performance,the greater the customer dissatisfaction.
 Post Purchase Action:
 The customer satisfaction or dissatisfaction with the product influence subsequent
behavior. If the customer satisfied, he or she will exhibit a higher probability of
purchasing the product again. Dissatisfaction customer may abandon and return the
product.

 Post Purchase Use or Disposal:

The marketer should also monitor new buyers use and dispose of the product. If the
customer store the product in a close, the product is probably not very satisfying. If
the customer throws the product away the marketer needs to know how they disposal
of it; especially it can be hurt the environment.

CHRACTERISTIC OF BUYING BEHAVIORS:

The chief characteristics of the buyer behaviors are as follow;

i. It consists of mental and physical activities which customer undertakes to get

goods and services and obtain satisfaction from them.
ii. It includes both observable activities such as walking through the market to
examine merchandise and making a purchase and mental activities such as
forming attitudes, perceiving advertising material, and learning to prefer
particular brands.
iii. Customer behaviors are very complex and dynamic to constantly changing. And
therefore, management need to adjust with the change otherwise market may be
lot.
iv. The individuals specific behaviors in the market place is affected by internal
factor, such as need, motives, perception, and attitudes, as well as by external of
environmental influences such as the family social groups, culture, economics and
business influences.