Report on Customer Behaviour Analysis of Great Eastern Life

This report provides an analysis of customer behaviour, focusing on Great Eastern Life Insurance as a case study. It delves into the company's background, vision, mission, and market situation, utilizing SWOT and PESTLE analyses to assess the internal and external environments. The report identifies the target market for Great Eastern Life's insurance policies, focusing on demographic and behavioral segmentation. It further examines the target market's decision-making process, highlighting factors such as problem/need recognition, information search, and personal influences like personality and age. The analysis emphasizes the importance of psychological satisfaction and transparency in influencing customer purchasing behavior within the life insurance industry. Desklib is a platform where students can find such solved assignments and past papers.

Running head: CUSTOMER BEHAVIOUR
Consumer behaviour
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Executive summery
It has been identified in this study that maintaining good relationship with the customer is
very important in the case of developing a business organization. In this study, the
effectiveness of customer behaviour has been discussed by highlighting the company Great
eastern. In this study, life insurance policy of the company has been chosen as product.
Depending on the product and increasing its popularity in the market the study has shed light
on the mission and vision of the company. In order to understand the customer purchasing
behaviour the study has highlighted the influential factors. This has been suggested in the
study, if the organization will provide the psychological satisfaction to the customers through
its terms and regulations, it will help it to grab the large customer base.

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Table of contents
Introduction................................................................................................................................3
Situation analysis of the company..............................................................................................3
Background of the company...................................................................................................3
Vision statement.........................................................................................................................4
Mission statement.......................................................................................................................4
Market situation.........................................................................................................................4
SWOT.....................................................................................................................................4
PESTLE..................................................................................................................................6
Target market description..........................................................................................................7
Target market decision making process.....................................................................................8
Problem /need recognition......................................................................................................8
Information search..................................................................................................................8
Personal factor influence on buying behaviour........................................................................11
Personality............................................................................................................................11
Age.......................................................................................................................................11
Conclusion................................................................................................................................12
Reference list............................................................................................................................13

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Introduction
Maintaining good relationship with the customer is very important in the case of
developing a business organization (Berbegal-Mirabent, Mas-Machuca & Marimon, 2016).
Customers are the backbone of every organization. Therefore this can be said that by
maintaining a proper relationship with the customers the organizations get the chance to
maintain its popularity in the market. The business revenue of the company also gets
influenced by the customer behaviour. In this study, the effectiveness of customer behaviour
has been discussed by highlighting the company Great eastern. In this study, life insurance
policy of the company has been chosen as the product. Depending on the product and
increasing its popularity in the market the study has shed light on the mission and vision of
the company. As the internal and external environment of the company impacts on its
business, therefore in this study the external environment has been analysed through the
PESTLE and internal analysis has been done by SWOT analysis. This has helped to analyse
the market situation of the company. Target market for the particular product has been
highlighted. How the target market impacts on the decision making process have been
discussed.
1.0 Situation analysis of the company
1.1a Background of the company
In this study, the company named Great Eastern Life has been highlighted, which the
largest life insurance policy is providing organization in Singapore. It has its branches in
Malaysia and Asia. The company was founded in the year 1908 and within the year 2007, it
has reached to the asset of S$45 billion with the 3 million policy holders
(Greateasternlife.com, 2018). In the year 2005, it has distributed its 17000 agents all over the
world. The company has higher level of contribution to the Singapore Economy. Due to its

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popularity a strong brand image in the market, it has reached the 7th position in the list of
valuable brands in Singapore (Greateasternlife.com, 2018). If the business revenue of the
company will be analysed, it will be identified it in the year 2005, the brand value of the
company was S$609, and in 2006, it reached at S$693. Therefore, this can be said that brand
value of the company is gradually increasing. The company is popular for its health insurance
plans, which have helped the organization to grab the attention of the customers.
1.1b Vision statement
The vision of the company is it wants to establish its position in no.1 in the global insurance
industry. On the other hand, the company is trying to increase its rate of profitability 5%
within coming four years.
1.1c Mission statement
The mission of the company is to develop its internal organizational structure for improving
the employee efficiency. It also aims to train its employees for improving the service. The
financial advisors of the company are trying to develop an effective insurance plan by which
both the employers and the customers will be benefited.
1.1d Market situation
According to Ramanathan, Subramanian & Parrott (2017), Market situation analysis is very
important in order to understand the business position of the company. Depending on this
situation the business plan of the organizations get influenced. For understanding the internal
environment, the study has focused on SWOT analysis. On the other hand, Through PESTLE
analysis, the external environment of the company in Singapore has been highlighted.
SWOT
Strength

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 The major strength of the company is it has established its strong brand image to the
customers (Greateasternlife.com, 2018).
 It has recruited efficient employees for providing better services to its customers
 As it is a large business organization, therefore this can be said that it has a strong
financial backup
Weakness
 Although the company has developed different strategies for employee empowerment
in the organization, different conflicts among the employees are creating difficulties
for the company
 There are many organizations in the Singaporean market, which are providing same
life insurance policies to the customers. Therefore, his can be said that this provides
various options to the customers. As its result, competition in the market increases.
 Due to lack of initiatives the entity value of the company is being affected for the long
term. This can increase its business costs. With the increasing rate of business costs,
the company will not be able to provide the policies at the same rate in which it was
providing. Due to this reason, the competitors will get the chance to grab the business
market.
Opportunities
 As the company has already established its popular brand image, therefore this can be
said that it will be helping the organization in the case of increasing its business
revenue from the emerging market (Greateasternlife.com, 2018).
 With its innovative business policies, the company will be able to maintain its
position in the market.

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 In the current scenario, demands for the insurance policies have been increased.
Therefore this can bring opportunities for the company to expand its business.
Threats
 Due to changes in Tax rates, the company may face difficulties in order to expand its
business.
 Although the company is popular in the Singapore market, there are many
competitors who are trying the grab the attention of the customers.
 On the other hand, the rate of substitute products in the market are also increasing,
which is creating challenges for the company.
PESTLE
Political
If the political situation of Singapore will be analysed, it will be identified that it is a
peaceful country (Ho, 2014). Hence, it can be said that political situation of the country is in
the favourable condition for developing business.
Economic
If the economic condition in Singapore will be analysed, it will be identified that in
the year 2017, the GDP rate of this country has increased 3.7% (Ladhari, Souiden & Dufour,
2016). With the increasing rate of GDP the rate of employment and purchasing power of the
people has also increased. Therefore, this can be said that the economic condition of
Singapore is helpful for business development.
Social
With the increasing rate of GDP, the living standard of people has also increased (Ho,
2014). It has increased demand in the market. On the other hand, it has been identified that

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Singapore has mixed culture. Therefore, this can be said that the social and cultural situation
of the country has strong nationalism sense. Most of the people belong to nuclear families.
This can be considered as the opportunity for life insurance organizations to increase its
customer base.
Technology
If the technological development in Singapore will be analysed, it will be identified
that it is a resourceful platform for the stakeholders to bring innovation to the business
industry (Rani, 2014).
Legal
As the rules and regulations introduced by the Singapore government are in favour for
economic development, therefore this can be said that it is helpful in the case of developing
business in this country (Ladhari, Souiden & Dufour, 2016).
Environmental
The government of Singapore has not taken any aggressive decision regarding the
development of environmental management (Rani, 2014). Although the government has
focused on reducing the rate of carbon emission, it has not created any pressure to the
organizations.
2.0 Target market description
The company named Great Eastern life insurance is an insurance policy providing
organization. In order to enter the market, the company needs to focus on selecting the proper
segmentation. In this case, depending on the needs of the product, the study has chosen
demographic segmentation and behavioural segmentation. From the demographic
segmentation, the income level of people, gender and age has been selected. The middle-class

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people have been targeted by the company. On the other hand, the people who are more than
25 years old, have been selected for this life insurance policy. From gender segmentation,
these facilities are being provided to only to the male. On the other hand in the case of
behavioural segmentation, the people who are conscious about their health and future are
being targeted by the company. On the other hand, this has also been identified in this study
that people who have knowledge about the benefits of life insurance policies are also on the
target list of the company.
3.0Target market decision making process
According to Gera et al., (2017), the Target market of the company gets influenced by
the decision making process. It has been identified in this study that there are various external
influences, which impacts the decision making process of the customer.
3.1 Problem /need recognition
On the other hand availability of organizations in the market also increases the
options in the market. As it is a life insurance policy providing organization, therefore the
term of the policy and its fees, market risk and taxation rules are also impacting on the post-
purchasing behaviour of the customers.
3.1a market induced
In the current scenario, demands for life insurance policies have increased. People
have become more conscious about their health and future. Therefore, after analysing the
market trend and developed in the life insurance industry people get interest towards the
investment.
3.1b new stage in life

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As competitors in the life insurance industry has increased, with the increasing rate of
companies the term and benefit rates have also changed. In order to maintain strong
competition in the market, the organizations have introduced different offers in the market.
Hence, these benefits, which will be helping the customers are important influential factors
for customer behaviour. On the other hand, depending on the growth rate of the industry, it
gains trust of the customers.
3.1c marketer induced
In order to maintain the popularity of products, the employers always try to adopt the
promotional strategy, which will influence the customers emotionally. Therefore, this can be
said that the view of the marketers about this industry also influences the buying behaviour of
the customers.
3.2 Information search
As stated by Gera et al., (2017), knowledgeable people about the company and its
brand identity also increases the brand value in the customers’ mind. Hence, this can be said
that psychological factors of human impact on the decision making process in an
organization.
3.2a level of risk
In the case of these types of organization, the risk factors are related with the clam
and acquisition. The risk of credit in the market and rate of interest in this organizations are
being affected depending on the economy of the country. Therefore, this can be said that this
a big concern to the customers before purchasing and share or policy.
3.2b level of product knowledge

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Proper knowledge about the product is very important. If the organization will
maintain transparency with the customer about its terms, interest rate and reinsurance
policies, this will help the customer to get proper information about it. Before, investing in
any organization, people search on the market for gathering the knowledge about the
particular prouct.
3.3 Evaluation
Price, product description and substitute products in the market influence the decision
making process of the customers. Another way family, friends and neighbours play an
influential part in convincing anyone towards a particular organization. Emotion is another
important influencing factor in the case of decision making process.
3.3a list of evoke set
In the Singapore insurance industry, there are large number of organizations, which
have also created their strong impression in the market. AIA Singapore Pvt ltd, AXA life
insurance, Manulife Financial Pvt, ltd, Zurich international life and Generail international life
Ltd companies have developed strong brand image in the market, which can influence the
customers’ buying behaviour.
3.3b compensatory and non-compensatory rules and why
Compensatory and non-compensatory rules are being developed in the case of
measuring the performance. Therefore, if the customer will find the good performance of the
company, the person invests in the product.
3.3c evaluation criteria and why- rational, emotional, cognitive
Sometimes people buys the insurance policies by getting influenced of others without
getting proper information. On the other hand, as the life insurance policies are based on the

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future plan, therefore these also have the emotional impacts on people. Another way
knowledge about products, also influence the customers towards purchasing.
3.4 Purchase
The purchasing decision of the customers depends on the type of the company. In the
case of popularity, brand value and previous experiences of the old customers of the company
influences the purchasing process.
3.4a Availability of products
Availability of products in the market brings various options to the company. This
impacts on the buying decision of the customers.
3.4b Retail factors
Promotional strategies adopted by the organizations also impacts on customers’ mind.
If the customers can relate the advertisements with their situation, they gat influenced
towards the product.
3.5 Post-purchase evaluation
In the business industry, customers always search for the benefits from the market
(Ladhari, Souiden & Dufour, 2016). Therefore, if the company will be able to attract the
customers towards its benefits, the rate of policyholders in Great Eastern life insurance
organization will increase.
3.5a Post-purchase feelings
After selling the products if the product review will be collected from the customers.
This will help to develop the strong relationship with customers.
3.5b strategies for handling customer view