THE EFFECT OF CONSUMER BEHAVIOR ON INSURANCE BUSINESS IN NIGERIA. A RESEARCH PROJECT TOPICS ON INSURANCE
This study investigates the determinants of the effect of consumer behaviour on insurance business in Nigeria. It analyze the interpretation of data collection from respondents.
The research questionnaire were draw to get data from banking, civil service, self-employed, married/single and divorced. The result of the questionnaire were used for positive correlation co-efficient which means that consumer perception about risk influences the desire to buy insurance.
The study recommends the price of insurance significantly affect the proportion of income spent on insurance consumers.
The aim of marketing is to meet and satisfy target consumers’ needs and wants. The field of consumer behaviour according to Kotler (2003) studies “how individuals, groups and organization select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and desires”.
Marketing theories and practices according to Osuagwu (2002) have much to learn from the behavioural sciences but preoccupation with techniques may tempt marketers to ignore the real world situations. Halbert (1965) states that “behaviuoral sciences’ contribution lies in the fact that they require learning to take explicit account of the human social aspects of individual and groups engaged in the marketing behaviour rather than specific tools, techniques or ideas”. Through the behaviuoral science contributions, marketers have come to know that people tend to obey the pleasure pain – principle, using the former and avoiding the latter. A person’s value is as conditioned by his behaviuor as much as that of people around him.
Therefore, any organization unable to provide goods and services that fulfill the needs and wants of consumer has lost its basic reason of distance. This is the crux of marketing concept, which encouraged organization to be consumer oriented in order to survive in a competitive environment.
Consumer behaviour then ”is the behaviour customers or clients display in searching for, buying, using, evaluating and disposing of products, services and idea which they expect will satisfy their needs and wants. This then makes consumer behaviour a study of how individuals make to spend their resources on consumption related items and their evaluation of such purchase decisions.
However, the service nature of insurance even makes the study of consumer behaviour very important. Insurance according to Oyetayo (2001) can be defined “as the contractual agreement between two parties called insurer and insured whereby the former promises to indemnify the industry that suppose to the virile aspect of any economy has been relegated to the background, this is however unconnected to the bad consumer attitude towards the purchase of insurance.
The success of any economy is majorly traced to the performance of its industries and business, however, for these industries and businesses to attain good performance, there must necessarily be a good security system to secure lives and properties. Okwo (2005) describes insurance “as the handmaiden of commerce and industry, suggesting that modern commerce and industry cannot function efficiently without a well planned and organized insurance system. Moreover, success of the first world countries cannot but be traced to the their well organized security system (insurance) and effective and efficient buying behaviour of the insuring public which has made the business of insurance the forerunner of other industries.
However, this research work shall consist the
(a) The study of consumer behaviour of the insuring public in Nigeria
(c) Factors affecting consumers’ attitude
(d) Levels of business behaiour in Nigeria.
(e) Consumer decision – making processes in insurance industry and
(f) Stages of the buying decision process in insurance