Jaipuria Institute - Marketing: Consumer Decision Making at TATA AIG

This report provides an in-depth analysis of the consumer decision-making process as it relates to TATA AIG Insurance Ltd. It explores the five key stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. The report examines how consumers recognize their need for insurance, the sources they use to gather information, the criteria they use to evaluate different insurance providers, the factors that influence their purchase decisions, and their experiences after purchasing a policy. Specific triggers, such as homeownership, marriage, and financial changes, are identified as catalysts for insurance needs. The report also includes a SWOT analysis of TATA AIG, highlighting its strengths, weaknesses, opportunities, and threats. Furthermore, it analyzes the evaluation criteria consumers use to compare different insurance providers, and the expectations customers have after purchasing an insurance policy. The report concludes with a discussion of cognitive dissonance and customer satisfaction within the context of the insurance industry. The report is based on a survey and references relevant literature and provides valuable insights into consumer behavior in the insurance market.

MARKETING MANAGEMENT
Consumer Decision Making Process
Company: TATA AIG Insurance Ltd.
Submitted to: Dr. Shailesh Pandey
Submitted by: Group 19
Name Roll No. Email ID
Janvi Lalwani 0197 “C” [e-mail]
Shubham Gupta 0180 “C” [e-mail]
Sanat Pandey 0190 “C” [e-mail]

Tata AIG company ltd is a joint venture between the tata group and the American
international group (AIG). Tata AIG company found in the year 2001. The group
holds a 74%stake in insurance and AIG holding the balance of 26%. The company
has made a mark in the industry by launching several innovative products and
services over the years. the range of general products including insurance for
automobile, home, property, casualty etc. The company’s products are available
through distribution channels like agents, brokers, banks and direct channels like
telemarketing, worksite, etc. the current CEO of TATA AIG is Neelesh Garg.
SWOT ANALYSIS
Strengths
1. Customised Insurance
Solutions for customers
2. State of Art I.T
Infrastructure
Weaknesses
1. Less penetration in rural
areas
2. Small Agent Strength as
compared to competitors
Opportunities
1. Growing rural market
2. Earning Urban Youth
Threats
1. Global economic crisis
2. Entry of new NBFCs in the
sector

5 Steps of Consumer Decision Making Process
There are 5 steps involved in every purchase decision a cons
Every consumer is different and thus behaves differently at
1. Recognizing Problems
How do people recognize the need of Insurance?
Every need begins with a problem and incase of TATA AIG insurance, most people face pro
of future emergencies and family security according to the survey conducted.Let’s consider an
example of Health Insurance; whether we talk about middle class people or higher-class p
today medical bills are a headache for all. One medical bill for a sever issue can cost us ou
savings. These problems can be taken care of with Insurance policies provided by
Insurance Ltd.
Specific “triggers” that raise customer awareness for Insurance Industry Like Tata AIG?
➢ Internal Triggers
➢ External Triggers
Homeownership
• Buying a Home
• Home Mortage
• Getting
Mortgage
Getting Married
• Future Financial
Planning
• Marriage
Expenses
Child Birth
• Child Education
• Child Future
Expenses
Financial Change
• Financial
Dependency
• Family Security
Advertisment
•Attention Seeking ADs
•Door to Door Awarness
Family Financial Phylosophy
•Family pressure or
cumpolsion
•Heritage
Benefit Based
•Tax Benefit
•Return Guarantees
•Liquidity Options

2. Information Search
The second phase of the purchase behavior is looking for data. When the need is
perceived, the purchaser is stirred to look for more data and moves into the data
search stage.
How Consumer Seeks Information?
[e-mail]
3. Evaluation of Alternatives
With the data close by, the customer continues to elective assessment, during
which the data is utilized to assess" brands in the decision set.
Criteria for evaluating alternatives?
Criteria Priority (0-6)
Economic Stability 1
Claim Process 2
Time Period 3
Complaints and Reviews 6
Flexibility 4
Service Quality 5
•
Personal
Sources
•Family
Reccomendat
ions
•Friend or
Colleague
Reference
•Company
Outlets
•
Commercial
Sources
•Company
Website
•Hoardings
•Advertisement
•Brochures
•
Public
Sources
•Consumer
Rating
Organization
like CRISIL,
MOODY'S
•Comparision
Websites like
Policybazaar.c
om
•Magazines
•Agent
•
Experimental
Sources
•Past Insurance
Experiences
•Customer
Reviews

TOTAL SET AWARENESS SET CONSIDERATION
SET
CHOICE SET DECISION
1. TATA AIG
2. BAJAJ
ALLIANZ
3. BHARTI
AXA
4. IFFCO
5. CARE
HEALTH
6. RELIANCE
7. SBI
8. SHRIRAM
9. UNITED
INDIA
10. ORIENTAL
11. RAHEJA
QBE
12. HDFC ERGO
1. TATA AIG
2. BAJAJ
ALLIANZ
3. BHARTI
AXA
4. IFFCO
5. RELIANCE
6. SHRIRAM
7. HDFC
ERGO
8. CARE
HEALTH
9. ORIENTAL
10. RAHEJA
QBE
1. TATA AIG
2. BAJAJ
ALLIANZ
3. BHARTI AXA
4. IFFCO
5. ORIENTAL
6. HDFC ERGO
1. TATA
AIG
2. BAJAJ
ALLIANZ
3. BHARTI
AXA
1. TATA
AIG
4. Purchase Decision
At last, the purchaser needs to conclude if to purchase to purchase the drawn out
money growth strategy with insurance agency many inquiries come into mind; it
must be normal a completely arranged buy dependent on a ton of data. During this
stage, the customer might settle on a choice which is joined by a bunch of
assumptions regarding the assistance, the exercises of purchasing; utilizing and
encountering are gathered together
Decisions Customers are likely to make:
• Non-buyers cite a variety of reasons for not purchasing insurance, including
unclear benefits, complexity, and lengthy application process. There is a clear
disconnect between prospective buyers’ views on short term financial goals
and priorities and the potential longer-term financial benefits associated with
purchasing life insurance.

• Success is probably going to happen when the transporter or specialist
unequivocally interfaces the worth of life coverage to need objectives of the
forthcoming client, and the imminent client learns and values the job that the
item plays to them.
[e-mail]
5. Post-Purchase Decision
While purchasing / choosing a service firm the consumers expect certain
outcomes from the purchase. How will these expectations are met determines
whether the consumer is satisfied or dissatisfied with the purchase. During this
stage the consumer may experience varying levels of disturbances called
cognitive dissonance (a doubt that the correct product has been purchased).
Marketers, often, attempt to minimize the consumer’s cognitive dissonance by
reassuring the customers that the correct decision has been made. Customer
satisfaction is achieved when consumer’s perceptions met or exceed their
expectation.
[e-mail]
Reference: . Dr S Shajahan, Services Marketing, Second Edition, 2011, Himalaya publishing house.
Survey:-
https://docs.google.com/forms/d/e/1FAIpQLSe8v8ZLAv6ZpCwS3OciBWEMboKYc1aFv-
bj6mz40BCXXztGbQ/viewform?vc=0&c=0&w=1&flr=0&usp=mail_form_link
Negative.
1: sometimes claim rejected.
2: poorly trained staff
3: misleading information
4: server not work properly
Positive
1: coverage of personal accident
damages.
2 : affordable rate
3: more than 3000 network garages