Consumer Buying Behaviour and Satisfaction towards Motor Insurance Policies: Experience from Indian General Insurance Industry

Abstract

The study is intended to assess the relationship between consumer buying behavior and satisfaction in motor insurance policy holders and to measure the influences of buying behavior on consumer satisfaction. The present study consists of 150 respondents (120 male and 30 female respondents, in a ratio of 4:1) and is based on random sampling method through self-administered questionnaire with five statements of consumer buying behavior and satisfaction each using 5-point Likert Scale. Two types of statistics namely Bivariate Pearson Correlation and Linear Regression were applied. Bi-variate Pearson Correlation was applied to assess the relationship between consumer buying behavior and satisfaction. Finally, Linear Regression was applied to predict the value of dependent variable (consumer satisfaction) by using independent variables-IVs (consumer buying behavior). The Pearsons correlation depicts consumer buying behavior and satisfaction variables are not strongly related. The weak relation of consumer buying behavior and satisfaction (CB &CS) variables (especially in motor insurance) implies that CB has less impact on CS in this particular insurance policy. From the linear regression it can be seen that the independent variables can predict 14.5 percent of the variance of dependent variables. Finally, the coefficient table depicts that only 2 out of 5 variables have significant impact on the consumer satisfaction at 95% confidence interval. The study has great significance for public and private insurers to understand the buying pattern of motor insurance policy holders.

Keywords: Consumer Buying Behaviour, Customer Satisfaction, Policies, General Insurance and Motor Insurance

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