Issues in Global Businesses and Consultancies Essay

Issues in Global Businesses and Consultancies - Essay Example The underlying transactions assume various forms and as such, they relate to each other. Those businesses that undertake trade involving imports and exports as well as those that undertake foreign direct investment are referred to as primary global businesses (Hill 2008). Usually, foreign direct investments businesses exist in various forms, that is; subsidiaries, which are owned wholly; and joint ventures. Other forms of global businesses and consultancies include licensing, contract management and franchising global businesses. Just as the definition holds out, the key tenet associated with global businesses is satisfaction. A global business is just like any other local business since the basic principles of a business apply. The difference comes from the application of thaw global business, its complexity as well as the intensity. These aspects vary substantially (Hill 2008). For a global business to operate across several borders, an organization ought to ensure that it adheres to international standards and laws and as such, the organization must incorporate them into their planning process and decision making. However, global businesses and consultancies do experience challenges arising out of the environmental factors. Since these businesses operate across national borders, there are some constraints and some frequent conflicts that are brought about by the different laws, societies as well as cultures (Hill 2008). A good example of a global business and consultancy is GlaxoSmithKline, a British multinational business dealing with pharmaceuticals, vaccines, biologics as well as consumer healthcare. Thesis Statement With reference to GlaxoSmithKline Company, this paper will critically analyze the issues facing global businesses and consultancies and... Global businesses, particularly those operating within the pharmaceutical industry such as GlaxoSmithKline Company do experience both internal issues as well as issues within the industry. Global businesses and consultancies do experience challenges arising out of the environmental factors. Since these businesses operate across national borders, there are some constraints and some frequent conflicts that are brought about by the different laws, societies as well as cultures. Such issues include; new consumers in emerging markets, switching to more specialized products and services, salaries and wages of the employees of the global business, growth of the pertinent power, limited number of blockbusters and smaller budgets, changing relationships with health care practitioners, the digital World, nature of conversations as well as issues associate with inflation. A Global business, regardless of the industry it operates within, must establish ways to contain issues as if left to the su rface, a company may end fatally. They may seem insignificant but according to the recent research studies, it has been found that indeed they have adverse effects.

Stereotyping German Turks Cultural Studies Essay

Stereotyping German Turks Cultural Studies Essay An American, a Chinese a German and a Turk are in a plane. Because of a technical fault the plane is about to crash if not immediately some ballast is thrown out. The Chinese opens the door and gets rid of the rice in his bag explaining: it doesnt matter, we have too much rice at home. Then the American stands up and throws greenbacks out of the window: we have way too many of them back home. After a short silence the Turk turns to the German and says: Bruder (buddy), dont get any silly ideas!. by pointing out their representation as victims and unwelcome guest-workers. Meanwhile, wrapped in a humorous aspect this joke clearly hints at the fact that prejudices and stereotypes have an immense influence in our daily life. Now the following question arises: To what extent do stereotypes affect intercommunal relations? With the intention of answering the question this work will focus on stereotypes, Turks in Germany are confronted with, by analyzing the representation of both immigrants with Turkish heritage and native born Germans in literature as well as in cinema. In order to support the theses it will refer to authors like Arlene Akiko Teroka, Rob Burns, Gà ¶kà §e Yurdakuli Y. Michal Bodemann, Johanna Watzginer Tharp and to their works. In addition, it will discuss the social consequences of stereotyping and show how much prejudices and labeling affect our actions towards and treatment of other groups. In order to be able to understand the labeling process the emergence of specific stereotypes one should be well informed about the historical background of the aforesaid nations and their international relationships. In the case of Germany and Turkey the era after World War II plays a decisive role. Aiming to rebuild the country and reconstruct its ruined economy the German government decided to import labor from nearby countries like Turkey. (Yurdakul, 2006) These so called guest-workers were unskilled peasants in search of income, which they were unable to gain in their homeland. This immigration policy of the German government is inextricably linked with the perception of Turkish immigrants in the eyes of German citizens. To be precise, the first stereotype Turks have to cope with is the image of unskilled guest-workers. In order to make this labeling clear a connection with literature and cinema seems adequate at this point. Migrant writings and films between 1970s and 1980s were called guest-worker literature or the literature of the effected. (Burns, 2007) They mostly tended to foreground two thematic concerns; the reality of the exploited, discriminated and socially excluded Turkish guest-worker experience and the problems of living between two cultures. (Burns, 2007) One example underlying the above mentioned image and experience of the uneducated and socially excluded Turkish guest-workerr is the novel and film Ganz Unten (Lowest of the Low),. In the film, the writer Gà ¼nter Wallraff borrows the identity of a real immigrant, the guest-worker Ali Levent Sinirlioglu and records his experiences in a variety of dangerous, unsanitary and badly paid jobs. Devoid of both a personal history and a private sphere, Wallraffs Ali has no individual identity, no life beyond the workplace.(Burns, 2007) In the film the immigrant Ali is defined purely in relation to his economic function as a worker. According to the Turkish writer Aysel ÃÆ'-zakin, Walraff presents a patronising clichà ©d portrait of the Turk as uneducated, unskilled and basically ignorant, as well as naive [à ¢Ã¢â€š ¬Ã‚ ¦] oppressed and, hence, ultimately pitiful. (Burns, 2007) Thus Ganz Unten reinforces the stereotype of the Turks as merely unskilled and suppressed guest-workers. This example additionally shows that the stereotype of guest-worker goes hand in hand with the portrayal of German Turks as victims,oppressed by the superior, the German employer. One narrative example that underlies the image of the exploited, helpless guest-worker is the story about the laboratory assistant Kadir, who falls victim to a nefarious employer a German manager, who supplies him with hormone pills for the stomach cramps that continually afflict him.(Burns, 2007) At the end when Kadir grows breasts after the excessive supply of hormone pills he cuts his own breasts with a kitchen knife. This act of self-mutilation serves as a [à ¢Ã¢â€š ¬Ã‚ ¦] metaphor for German treatment of guest-workers, especially Turks as subhuman beings and for the helpless and self-destructive response of a man, who falls victim to the bewildering complexities of urban technological society.(Burns, 2007) Beside the portrayal of being a victim the fact of being regarded as a guest-worker also leads to another stereotype: the image of being an outsider. The film 40 m2 Deutschland (40 Square Meters of Germany, 1986), is a very well example to show the Turk, isolated between two cultures. The films location is a flat in Hamburg, the new home of Turna, who has been brought over from rural Anatolia to live with her husband, Dursun. Turnas task is to transform this space into a little enclave of Turkish culture, offering Dursun refuge after his work at the factory and safeguarding his wife from the moral depravity he sees pervading German society. (Burns, 2007) This film demonstrates that Turks tend to distance themselves from the German society and their rules, in order to save their own cultural values. This kind of behavior contributes to the labeling process as an outsider. The Turk is seen as someone, who wants only minimal contact with German life and deliberately deprives him/herself of social intercourse. This limited contact with the German society and culture even led to the development of a new language-the so-called Gastarbeiterdeutsch (Guest-worker German), a simplified form of German to meet only basic communicative needs (Watzinger Tharp, 2004); a form of German which leads to reduced or even incorrect input. (Watzinger Tharp, 2004) A new arising form of language among the second and third generation Turks in Germany, the so called Tà ¼rkendeutsch, introduces a new stereotype: the fact that German Turks are stuck between two cultures, even unable to speak one language properly. This stereotype is clearly reflected in Geierbachs choice of his novels title: Bruder, muss Zwiebel und Wasser essen! (Brother, have to eat onion and water!). This sentence is neither German nor Turkish: The content reflects behaviour peculiar to lower class Turks whereas the sentence is completely written in German. Thus, it appears to be rather a mix of two languages, two cultures, and therefore ser ves as an example to demonstrate the fact that the German Turk, has positioned him/herself between two cultures remaining culturally torn. However, these are only some of the stereotypes Turks in Germany are confronted with. Still, they can be seen as the main ones. The following abstract will now shortly focus on the social consequences of stereotyping and show their effects,which mainly cause social tension and even racial violence. The bad image of the Turks created through stereotyping connected with increasing unemployment rates in Germany led to an atmosphere of open anti Turkism among Germans. Some even say that former anti Semitism was transformed into open anti Turkism. In short stereotyping led to animosity and aggressive tendencies and increasing violence towards Turks. The Solingen arson attack of 1993 serves as an example of anti foreigner violence in modern Germany, when Neo Nazis set fire to a Turkish familys home. On the Turkish side, however, being constantly stereotyped and mocked resulted in anger and hostility among German Turks. A cartoon published in the German magazine Stern shows a heavily mustached man crawling through a cat hole in a door named European Union, trying to gain entry into Europe. Some imitation Arabic writing appears on top of the cat hole, and a suitcase with a Turkish flag stands next to the man.(Yurdakul, 2006) Some claim that the nose of the Jew is now replaced by the mustache of the Turk and consequently accuse Germans of anti Turkish racism. As a response, associating Turkish concerns with those of the Jews and comparing the Holocaust to the bombings of Turkish houses, the Turkish society has openly begun to attack the Germans, where they are most vulnerable, creating even more hostility between both nations. In conclusion, by analyzing the representation of Turks and Germans in literature and cinema, this paper has tried to highlight the stereotypes directed against Turks-mainly German Turks, dominating Turkish-German relationships, even until today. After, explaining the historical evolution of stereotypes and the emergence of specific prejudices against Turks, the essay has illustrated the social consequences of labeling. As seen in literature and cinema stereotyping is an element, which dominates relationships between different nations. In a nutshell, the main aim of this paper is to show that stereotyping and labeling are very serious and dangerous social traits, which can have drastic consequences on intercommunal relations fueling emotions like hostility, dislike, anger and even racism, all being traits which should have no place in an enlightened, modern society.

paganbeo Beowulfs Pagan Traditions :: Epic Beowulf essays

Beowulf's Pagan Traditions Beowulf, an epic poem written in the late tenth-century, in the kingdom of the West Saxons, steeping with pagan tradition, this epic depicts nature as hostile and forces of death uncontrollable. Blind fate chooses random victims and people never feel at peace with the world. Also Beowulf ends as a failure to help heal the wounds of his society. Although there are parts of this statement which can be construed as true, for the most part, it doesn't give Beowulf the credit he deserves. For someone whose life was cut short, Beowulf did many great deeds for his time in the world. The statement illustrates nature as hostile and forces of nature uncontrollable. This fraction of the statement is contradicted in the beginning, as the setting is being described, "...these beautiful plains marked off by oceans/then proudly setting the sun and moon to glow across the land and the light it...(8-9). This sets the scene as peaceful, soothing and calm. "The corners of the earth were made lovely with trees/and leaves, made quick with life..."(11-12). When you think of oceans and trees, it brings a sense of reassurance of nature's beauty, not its hostility. Within Beowulf there are obvious places where nature isn't on the peoples side, and many problems arise during this complex tale, but this opening landscape paints a different picture of the period, which followed me throughout the rest of the poem. Despite the fact that many innocent people died within the poem, the phrase, "blind fate picks random victims" can be used for many instances. This phrase is even true today; many innocent people are random victims of violence within our society. Fate isn't something that can be argued lightly. In Grendel's introduction he, "Snatched up thirty men/smashed them unknowingly in their beds..."(37-38). This can be taken to mean that these men were meant to die that night at the hand of the evil monster Grendel, that it was their fate. But on the other hand, on line 36 it states, "He slipped through the door and there in silence..." Which indicates that Grendel didn't try to handpick his victims, but just went for anyone that he could grab.

Bacon, Novum Organum, and Implied Objectivity †Philosophy of Science

Francis Bacon was a representative of English Renaissance and therefore sought to tie together philosophy and science in order to create more complete and clear picture of scientific method to be used when explaining natural phenomena. Bacon’s â€Å"Novum Organum† is can be viewed as a global message addressed to all scholars and students, who seek to penetrate into the true order of matters and nature of objects, as the primary idea of his writing is to assist scientists in developing objectivity and destroying prejudices and stereotypes that determine unnecessarily narrow directions or limitations in certain areas of knowledge.The first chapters of the writing are dedicated to aphorisms, which to great extent reflect the spirit of the epoch and the author’s personal convictions. First of all, the scholar suggests that the study of nature is extremely complicated and should be approached from multiple viewpoints: â€Å"The study of nature with a view to works i s engaged in by the mechanic, the mathematician, the physician, the alchemist and the magician; but by all (as things now are) with slight endeavor and scanty success† ( Bacon, Book I, Aphorism V, at www.constitution. org, 2001). This means, it is important to expand the knowledge about nature and establish a reasonable exchange among various disciplines and directions – first of all, in order to be capable to explain the issues, which might be clear in certain discipline, but remain a ‘white spot’ in another, so that the true causes of phenomena can be found only through developing a complex approach.On the other hand, the author also warns the reader against hastiness in scientific conclusions that can appear a side effect of syllogism â€Å"†¦if the notions themselves (which is the root of the matter) are confused and overhastily abstracted from the facts, there can be no firmness in the superstructure. Our only hope therefore lies in a true induct ion† (Bacon, I, XIV, at www. constitution. org, 2001). This means, it is important to ‘digest’ all information available, gradually put forward the propositions and construct the superstructure thoroughly, without superfluous generalizations.This means, there is a certain divergence between traditional techniques, related to scientific induction, and the mode of logical reasoning Bacon offers: for instance, syllogism contains a particle of subjectivity, as it is normally based upon propositions, hypotheses and the scientist’s own perception of the object: â€Å"In order to penetrate into the inner and further recesses of nature, it is necessary that both notions and axioms be derived from things by a more sure and guarded way, and that a method of intellectual operation be introduced altogether better and more certain† (Bacon, I, XVIII, at www.constitution. org, 2001). Due to the fact that the author speaks primarily about precise sciences, he implie s that science as organized area of knowledge cannot be based purely upon hypotheses or fantasy, but also upon facts and axioms. The main obstacle to the real discovery of nature is described by Bacon as four idols living in human mind. Idols are conceptualized as human impressions about the objects, – for instance, their visible characteristics like color or shape. The author contrasts idols to God’s intents concerning the creation of nature, i. e. these idols substantially distort or misrepresent the truth.There are four main types of these erroneous subjectivist convictions: Idols of the Tribe; Idols of the Cave; Idols of the Marketplace (Forum) and Idols of the Theatre. The Idols of the Tribe are in certain context socially approved convictions, as they all derive from the idea that human-being is a measure of the objects surrounding them, so that individuals tend to approach to nature from the position of their relation to certain objects or phenomena: for instanc e, ancient ‘scientists’ believed that celestial bodies existed in order to predict their fate, i. e.humankind used to have consumerist attitude towards their environment, which resulted in numerous hardships when it was the time to broaden or enrich the knowledge available. In addition, these beliefs are transmitted from generation to generation and learned during socialization – this is probably their most dangerous aspect. â€Å"The Idols of the Cave are the idols of the individual man. For everyone (beside the errors common to human nature in general) has a cave or den of his own, which refracts and discolors the light of nature†¦Ã¢â‚¬  (Bacon, I, XLII, at www. constitution.org, 2001). This means, Idols of the Cave can be explained as the peculiarities of each person’s psychological world, which might decrease one’s ability to draw independent conclusions – human are often ‘addicted’ to persons they admire and therefore might view these persons’ beliefs as their own. The Idols of the Marketplace originate due to the use of common language and social relationships, yet â€Å"words plainly force and overrule the understanding, and throw all into confusion, and lead man away into numberless empty controversies†¦Ã¢â‚¬  (Bacon, I, XLIII, at www.constitution. org, 2001), which means first of all that there is certain issues human being cannot verbalize or put into words. In addition, individuals tend to misuse and abuse language, for instance in demagogic or pseudoscientific discussions, which in reality have no visible objectives and goals. Finally, the Idols of the Theater settle down in human mind under the influence of philosophical dogmas or ‘universal truths’, often imposed by theatrical fables.For instance, in certain epoch, individuals used to say: â€Å"Love is stronger than death†, â€Å"Love is the highest feeling†, even through it is really hard to me asure the ‘height’ of love or imagine that it can really save individuals from inescapable death. These expressions were no more than metaphors, suggested by literature or certain philosophical movements. All these Idols contribute to the development of human subjectivity and inability to ignore unnecessary parts of their experiences when examining pure facts.In addition, explaining the cause of underdevelopment of scientific method, Bacon also takes macrosocial approach and identifies two main factors, which contributed to the weakness of contemporary science: firstly, a lot of vital information had been lost or had not been fixed on paper, so that contemporary science actually originated in Greco-Roman period; secondly, the development of natural science in general had been overlooked, in contrast to the progress of art and literature, due to the domination of religious institutions over education and scientific progress, which had implied strict censorship.In order t o liberate human mind from the aforementioned idol, it is necessary to develop a new method of establishing axioms: â€Å"In forming our axioms from induction, we must examine and try, whether the axiom we derive only be fitted and calculated for the particular instance from which it is deduced, or whether it be more extensive and general† (Bacon, I, CVI, at www. constitution. org, 2001). As one can understand, scientific reasoning should be based upon the basic research and supplementary study of the validity of previous one and the possibility of generalization.If generalization is possible, â€Å"we must observe, whether it confirm its own extent and generality, by giving surety as it were, in pointing out new particulars† (ibid). In order to facilitate the research, the scientist should first examine the cause of the phenomenon or its separate features (color or size), since the same characteristics not always point to the same cause and therefore do not infer the same nature of the object or phenomena. Bacon’s inductive technique includes three main components, or three different types of table: the table of presence, the table of absence and the table of degrees.The table of presence includes all cases in which the phenomenon, whose cause is sought, manifests itself: for example, heat appears when the object is under the sun. The table of absence comprises the cases in which the phenomenon does not manifest itself: for instance, although the moon spreads light, the heat does not appear in moonlight. Finally, the table of degrees provides concrete measurements of the phenomenon and includes its decreases and increases among different objects or materials: for instance, certain metals heat slower than liquids (e. g. water).The table of degrees is aimed at reflecting the extent of the phenomenon in each object researched. In case the amount of research material is limited, Bacon offers different strategies of induction: â€Å"I propose to treat, then, in the first place, of Prerogative Instances, secondly, of the Supports of induction, thirdly, of the Rectification of Induction; fourthly, of Varying the Investigation according to the nature of the Subject; fifthly, of Prerogative Natures with respect to Investigation; [†¦]; sixthly, of the Limits of Investigation, or a synopsis of all natures in the universe..† (Bacon, II, XXI, at www. constitution. org, 2001). In addition, he recommends that each scientist included suggestions for practical use and the gradation of axioms. Prerogative Instances, or objective facts and their independent interpretations are therefore regarded as the most important aspect of induction, as the basic Prerogative Instances are in fact to demonstrate the extent of the phenomenon in each particular case, the interrelation among the phenomena in different objects and situations and the possible exclusions or exceptions.To sum up, both extended and limited investigations should be based primarily upon facts and their classification, rather than upon hypothetical reasoning and classic induction whose main constituent is syllogism, or logical propositions, not always confirmed by facts. Reference list Bacon, Francis. Novum Organum (The New Organon). Available online at: http://www. constitution. org/bacon/nov_org. htm, 2001

Consumer Buying Behavior for Life Insurance

Consumer buying behavior is nothing but their needs, which arouse them to buy. There is hierarchy of need from high level to low level. They initiate to buy their high level need after completed that they move for another need. Consumers 1st recognize their need or problem then gather information about that product. They get many alternatives regarding that product then they evaluate each and every criterion, which give them bundle of attribute towards that product. Now they choose among one of them to buy and they make decision to buy that product. There are some factors influence them to buy.These are cultural factor, social factor and demographic factors. ? Culture factors include their region, culture and their social classes, which is based on their education and occupation. ? Social factors include reference, groups and family, which influence them to buy according to their choice. People buy product according to its role and status. ? Demographic factors includes age group, pe rsonality, occupation, life style etc. people buy product according to under comes all these factors. Introduction Insurance has got its origin from the concept of Indemnity.Indemnity against to loss, it has occurred due to some unavoidable circumstances. To some, the concept of insurance has got its origin related to the uncertainty in the life. Uncertainty has been the integral part of everyone's life, be the uncertainty in terms of money, uncertainty in terms of life etc. Throughout the tenure every other individual's effort is directed towards avoiding this uncertainty. The concept of insurance has got its origin from this very effort of avoiding the uncertainty. Though it is not possible to avoid the uncertainty, it is highly possible to compensate the loss, which has occurredVIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 6 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY due to happening of this uncertainty. This compensation of unavoidable circumstances (uncertainty ), which has occurred, is known as Insurance. It is the pooling of funds by many to compensate the loss of few, whereby many individuals pool themselves together to create a fund in order to compensate the loss that has occurred to the few. Insurance as we know today can be traced to the Great Fire of London which, in 1666 AD, destroyed 13200 houses.In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England's first fire insurance company, â€Å"The Fire Office†, to insure brick and frame homes. Gradually the concept of insurance came to be understood as a contract that offered the purchaser protection against the financial loss due to specific incident. Since the risk of financial loss was to be spread amongst the large group of people, the extent of financial loss, In the event of mishap occurred, became less devastating to the individual.Though the concept of insurance is old as history of mankind, back to some 6 000 years, it got its presence registered in India somewhere in 1818 with opening up of Oriental Life Insurance Company in Calcutta by Europeans. During those years Indians were considered as substandard and they were forced to give high premium on account of their low profile. However with the continuous effort of few eminent people Indians were later considered as of equal status and they were charged the normal rate, at par with the Europeans.This was majorly due to the establishment of first Indian life Insurance company, Bombay Mutual Life Assurance society in the year 1870. Later on the development of Indian life insurance industry was more fired by the patriotic sentiments and gave rise to number of Indian life insurance companies viz. United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were amongst those company which was formed to treat the Indian populace at par.With increase in the pressure from Indian intell ect, to give the Indian Insurance industry an organized structure, Government of India was forced to pass Life insurance Companies act, 1912 and Provident Fund act. But this was not the end to the suffering of Indian populace that even this act recognized the demarcation between the Europeans and Indian while charging the premium, then came the act of 1938 which not only governed the Life Insurance Industry but also had its spread VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 7 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY to the Non life Insurance Industry.With the increase in atrocities from all these companies, the demand to amend the prevailing act of 1938 assumed velocity. Thus in the year 1956 the act was passed as Life Insurance Corporation act, 1956 on 19th June, 1956 which called for nationalization of all the Insurance company working in India under one name as Life insurance corporation of India (hereafter LIC). Thus LIC was formed on 1st September 1956, wit h an objective to spread life insurance especially in rural areas as a mean to provide the protection cover to the life of Indian populace and as tool to help them in the time of financial need at a reasonable cost.Till 1999 LIC was the only life insurance player in Indian Life Insurance field, when government of India decided to amend the then prevailing act prohibiting the private life insurance player to enter the Indian market. It was Insurance Regulatory Authority, 1999 (IRA) that gave the freedom the private players to play in the field. But the basic motive for introducing such an act was not fulfilled as the amended act was meant for only regulation purpose only and not as a development tool and hence the act was further modified to add the element of development to the concept and thus came the current prevailing act i. . Insurance Regulatory and Development Authority (IRDA), 1999. It was further amended to incorporate the element of competitiveness. Thus Government of Indi a via IRDA permitted the private Life Insurance player also to enter the Indian field; and made some provision for foreign insurance companies that if they want to enter the Indian market they can do so but to the extent of 26 % of share only with any of Indian partner. Today almost 15 private life insurance companies are working India, some in wholly owned format and some as a joint venture with foreign company or with Indian company.Together they hold the market share of approx. 24 % in life insurance market. Still LIC holds the kingship with almost 76 % of market share. That's the good news for the LIC people on one part but on another aspect if we deal that shows the pace at which the private life insurance companies are moving, they are defiantly going to give the tough fight to LIC. The leadership lies not in getting the maximum out of market share but it is there somewhere in understanding the reason for the choice of one product over another one. VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABADPage 8 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY Consumer hierarchy of needIt is important to understand the relevance of human needs to buyer behavior remember, marketing is about satisfying needs). Need as a physiological or psychological deficiency a person feels the compulsion to safety, suggesting that need creates tension that can influence a person’s work attitudes and behavior. Customers set an order for their needs from high level – low level need. They prefer 1st, which is most essential for them, after completed that, they give privilege to next need.There are five needs exist in a hierarchy – Need- Physiological needs such as food, air, water, heat, and the basic necessities of survival need to be satisfied. Safety -Need for a secure environment, protection and stability in the events of day to day’s life, Such as life insurance. It make people tension free about any risk at their life. Society- At the third level we meet our social and belongingness needs i. e. we marry, or join groups of friends, etc. person paying tax according to their income, feels the social responsibility and acceptance by society as a good citizen.Life insurance is also a part of the social needs, which reduce the tax and also cover the risk with the attribution of facilities towards plans. Esteem- Esteem means that you achieve something that makes you recognized and gives personal satisfaction, example writing a book, investment for family obligation or have a pension plan for support at future, which arise self respect insight a person. Self actualization – Self actualization is achieved by few. Here a person is one of a small number to actually do something.For example, Neil Armstrong self-actualized as the first person to reach the Moon. The study of how and why people purchase goods and services is termed consumer buying behavior. The term covers the decision-making processes from those that precede the p urchase of goods or services to the final experience of using the product or service. Models of consumer VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 9 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY buying behavior draw together the various influences on, and the process of, the buying decision.They attempt to understand what happens within the consumer between his or her exposure to marketing stimuli and the actual decision to purchase. Characteristics of Indian consumer behavior The Indian consumers are noted for the high degree of value orientation. Such orientation to value has labeled Indians as one of the most discerning consumers in the world. Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market. Indian consumers have a high degree of family orientation.This orientation in fact, extends to the extended family and friends as well. Brands with identities that support family values tend to be popular and accep ted easily in the Indian market. Indian consumers are also associated with values of nurturing, care and affection. These values are far more dominant that values of ambition and achievement. Product which communicate feelings and emotions†¦ What is insurance? Insurance is a policy from a large financial institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages.The meaning of insurance is important to understand for anybody that is considering buying an insurance policy or simply understanding the basics of finance. Insurance is a hedging Instrument used as a precautionary measure against future contingent losses. This instrument is used for managing the possible risks of the future. What is life insurance? Life Insurance is the key to good financial planning. On one hand, it safeguards your money and on the other, ensures its growth, thus providing you with complete financial well being.Life Insur ance can be termed as an agreement between the policy owner and the insurer, where the insurer for a consideration agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness, critical illness or VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 10 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY maturity of the policy. Life insurance plans, unlike mutual funds, are beneficial when you look at them as a long term avenue of investment which also offers protection through life cover. Life insurance policies are broadly categorized into two Types- Traditional Plans ? Unit Linked Insurance Plans (ULIPs) Traditional planTraditional policies offer in-built guarantees and define maturity benefits through variety of products such as guaranteed maturity value. The investment risk in traditional life insurance policies is borne by life insurance companies. Additionally, the investment decisions are regulate d to a large extent by IRDA rules and regulations, ensuring stable returns with minimal risk. Investment income is distributed amongst the policy holders through annual bonus. These policies are ideal for policy holders who are not market savvy and do not wish to take investment risks.Term planTerm Insurance helps the customers in safeguarding their families from financial worries that rise due to unfortunate circumstances. Term plans are pure risk cover plans with or without maturity benefits. These pure risk plans cover your life at a nominal cost Term plans also let you avail the benefit to cover your outstanding debts like mortgage, home loan etc. In case of something happens to you, the financial burden is borne by the insurance company and not your loved ones. VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 11 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICYTerm plan offers following benefits? High insurance Cover at lower costs ? Financial security against loans and mortgages, ? Single premium payment option available Whole life policy? As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of when it happens. ? Under this plan, the policyholder pays regular premiums until his death, following which the money is handed over to his family. Endowment policyCombining risk cover with financial savings, endowment policies is the most popular policies in the world of life insurance. In an Endowment Policy, the sum assured is payable even if the insured survives the policy term. ? If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover. ? A pure endowment policy is also a form of financial saving, whereby if the person covered remains alive beyond the tenure of the policy; he gets back the sum assured with some other investment benefits. In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans.The cost of such a policy is slightly higher but worth its value. Money back policy? These policies are structured to provide sums required as anticipated expenses (marriage, education etc) over a stipulated period of time. With inflation becoming a big issue, companies have realized that sometimes the money value of the policy is eroded. That is VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 12 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY why with-profit policies are also being introduced to offset some of the losses incurred on account of inflation. ?A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable. ? ? In case of death, the full sum assured is payable to the insured. The premium is payable for a particular period of time. Annuities and pensionIn an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against risk as well as provide money in the form of pension at regular intervals. Over the years, insurers have added various features to basic insurance policies in order to address specific needs of a cross section of people.ULIP planUnit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time. In a ULIP, the invested amount of the premiums after deducting for all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders are pooled together to form a Unit fund.A Unit is the component of the Fund in a Unit Linked Insurance Policy. The returns in a ULIP depend upon the performance of the fund in the capital market. ULIP investors have t he option of investing across various schemes, i. e. , diversified equity funds, balanced funds, debt funds etc. It is important to remember that in a ULIP, the investment risk is generally borne by their investor. Life insurance companies in IndiaIn India, Insurance is a national matter, in which life and general insurance is yet a booming sector with huge possibilities for different global companies, as life insurance premiums ccount to 2. 5% and general insurance premiums account to 0. 65% of India's GDP. The Indian Insurance sector has gone through several phases and changes, especially after 1999, when the Govt. of VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 13 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY India opened up the insurance sector for private companies to solicit insurance, allowing FDI up to 26%. Since then, the Insurance sector in India is considered as a flourishing market amongst global insurance companies. However, the largest life insurance com pany in India is still owned by the government.Top 5 life insurance Company in India? Life Insurance Corporation of India (LIC): This remains the largest insurance company in India and is owned by the government. In 2008, LIC accounted for 64 percent market share. Although it is still the market leader, the company has to battle against the innovative strategies and better sales force of private enterprises. Life Insurance Corporation of India (LIC) registered an 83 per cent increase in new business income in March 2010, while private players posted a 47 per cent growth in new business premium. ICICI Prudential Life Insurance: This life insurance companies has attracted a loyal customer base with great customer support and a wide range of cheap policies to choose from. ? Bajaj Allianz general Insurance: This private company has been rising steadily in terms of market capture. It now sells the second most number of insurance policies in India after LIC and has been growing at a fast pace since 2006. ? Birla Sun Life Insurance: This Company has played its cards well. It offers a variety of insurance policies for the customers to choose from, provides them with attractive deals and offers great customer service and support.There is no reason why people shouldn’t prefer this one. VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 14 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY ? SBI Life: Though a little slow on the marketing propaganda, SBI Life has been consistently growing in the Indian life insurance market because of good service and a great brand image. Consumer perception for life insurance – According to the need life insurance is the second need of people, because nobody knows about future. Life is suffering from full of risk and incidents. Nobody knows that what would be a financial condition in coming time.To be secure about future people are speedily holding insurance policy. Insurance is actually a protection against economic l oss, by sharing the risk with others. â€Å"Consumers need Life Insurance because typically the need for income continues for those who are financially dependent on them, but there is no guarantee of their ability to earn consistently and for the rest of their life. Life insurance can help them safeguard the financial needs of their family. This need has become even more important due to steady disintegration of the prevalent Joint family system and emergence of nuclear families.The need to protect their family's ever growing needs is why they need Life Insurance†. Consumer buying behavior for buying life insurance policyA consumer buying behavior starts from need/requirement for product, then evaluation about product and decide product, which gives better satisfaction then take decision for buying. ? Need- Need or requirement is a primary model for buying a life insurance. A need arouse people to act of buy. Different person have different purpose for buying life insurance s uch as: investment for future security or family obligation (children education, children marriage) or risk cover.If there are individuals who depend on you for financial support, or if you work at home providing your family with such services as child care, cooking, and cleaning, you need life insurance. Older couples also may need life insurance to protect a surviving spouse against the possibility of the couple's retirement savings being depleted by unexpected medical expenses. And individuals with substantial VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 15 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY assets may need life insurance to help reduce the effects of estate taxes or to transfer wealth to future generations. Information search- After recognize need, they search for limited amount of information regarding loyal companies, and its plan according to their desire. At the next level the person may enter an active information search: looking for regarding insu rance, phoning friend, go online, meet to salesman and advertisement are rich source to gather information. ? Evaluation of alternatives- Having information about many companies, they evaluate which company giving better plan according to their’ admire within the budget. Second they look for certain benefits from the policy and stability of company.Third customer see Each insurance as a bundle of attributes with varying abilities for delivering the benefit sought to satisfy their need such as: ? ? Face Value — The original death benefit amount. Convertibility — Option to convert from one type of policy to another (whole life), usually without a physical examination. ? ? ? ? Cash Value — The savings portion of a policy that can be borrowed against or cashed in. Premiums — Monthly, quarterly, or yearly payments required to maintain coverage. Beneficiary — The individual(s) or entity (trust) that is designated as benefit recipient.Paid Up †” A policy requiring no further premium payments due to prepayment or earnings. ? â€Å"Customers evaluate all positive and negative point of services according to importance and give preference to a better plan provided by company. † Purchase decision-. In the evaluation stage, customer form preference among the company, full filling their requirements. But there are few factors, which can divert consumer mind set. ? Other person can make them advice for another investment like: share market, bond, mutual fund and bank deposit or other alternatives. VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 16CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY ? ? ? ? ? ? ? An unsatisfied policy holder can divert their mind. Customer is not getting a loyal salesperson. Customer is influenced by perceived risk for losing money. The policy is not giving up as ones expected. They attracted for other best investment. Ones may be a policy holder and not getting benefit as ones expec ted, so he is not getting decision for buy. Customer may be from rural area, he is not getting belief at company cause of conservative thinking. â€Å"If Customers get satisfaction struggling from these all factor, then they make decide for buy insurance policy. The Purchase Decision The purchase decision in general is prompt by number of factors viz. Psycho graphical, Economical, Social, Political legal and Demographical.The list is not exhaustive but it is sufficient to have the deep understanding of the factors influencing the decision. Psycho graphical Factors are those factors, which includes the behavioral aspect of the individual viz. lifestyle, living standard. Here purchase decision in influenced by those issues that affect the lifestyle of the consumer or in the other that reflects the status. For e. g. purchase decision related to buying of car and that to Mercedes Benz. Talking specifically to the insurance sector, here customer will buy only that policy that has got hi gh premium or that type of policy which company is promoting to limited high-income level group only. For e. g. â€Å"Classic Life premier† policy of Birla Sun life insurance is meant for only those individual who can pay at least Rs. 25000/- per annum. Economical factorEconomical factors affect the purchase decision by influencing the issues pertaining to money and income level of the individual.Consumer will buy only that product which will not have any VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 17 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY negative effect on his pocket. For e. g. decision to buy an insurance policy is influenced by the deepness in the pocket. Social factorSocial factor affect the purchase decision by influencing the issues pertaining to social beliefs and morals. Person influenced by group and their family members. They buy mostly same plan from same company whether their friends or family members have it.Some time if ones want to buy a new plan from other companies, their family member remorse them to buy it. Political factorsPolitico legal is the macro level environment. It effects in a way, say IRDA has restricted the sale of Key Man Insurance policy through Term Plan only. Demographic factorDemographical factor is that factor which has got the maximum of its effect in the purchase decision of the product and especially if that product is life insurance product. It is so because these factors incorporate other above said factors and includes those factors that can influence the buying decision to maximum extent viz.Occupational factor (service/business), Age factor, Gender, Marital status factor and Income level etc. It cannot be denied that buying decision of the individual who is unmarried and is into business, having the income level of the range Rs. 2. 4 lakhs per annum, is into the age group of say 25 years have the entirely different approach towards purchase of the life insurance policy with the individu al who is into service and is married, is into the age group of, say 35, and is earning Rs. 30000/- per month.Keeping the above phenomena under consideration a study was conducted to know exactly to what extent Demographical factor has got its influence in purchase decision of the life insurance product. VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 18 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY The Study This study, which was conducted in the city of Bangarmau (Utter Pradesh), covered almost 50 individual of different status. The duration of the study was almost one month. The method which we used to collect the information was through questionnaire and personnel interview.The data so collected was grouped according to the company of the consumer's choice from where they have purchased the product and further it was analyzed that what was the demographic profile of that consumer and result was thus generalized. The study covered 50 individuals, of which 84 % were fo und insured and 16 % uninsured. Of the total insured 75% were from 21-45 age group and 25 % were from age group 46-60. It was 78 % of the male who was there in the total insured and rest 22% were female. Occupation wise 40 % of the total insured were into service and 60 % into business.Thus the overall penetration of companies in to the psyche of consumer buying preference (based on the customer's purchase of a company's life insurance policy) is given in the graph as under: Types of consumer- There are two kinds of customers according to their region? Urban customer? Rural customer- I did my research in rural area. It is my home town name is Bangarmau. I find that people having lack of knowledge and awareness about life insurance. Here insurance adviser playing a vital role to make them aware and convenience them for buying life insurance policy.In the exact word I can say that people don’t buy policy here, they buy belief of adviser. They buy it on the basis of reputation a nd loyalty of insurance adviser. Here customer do not worry about their security, they buy it as a investment, which should give them good return in very short of time. I find that if adviser does not push them for having life insurance, number of people would be very less to buy life insurance. VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 19 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY The main factor is unawareness, that’s why they do not believe at Pvt Company.They have fear about lost their money, because they don’t know what IRDA is and what it is work. QuestionnairesI prepared 13 questionnaires to know about consumers’ perception for buying life insurance policy. 1-Whether you have life insurance policy? life insurance 50 40 30 20 10 0 yes No 8 yes No 42 2- As what purpose did you buy it? VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 20 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY policy holder investment family obligation sa ving tax 10% 19% 71% 3-If yes, which company life insurance you have? COMPANYNO. OF POLICY (x-8. 4) HOLDER (x) S. D. LIC SBI Reliance ICICI Bajaj 26 4 6 0 6 17. 6 -4. 4 -2. 4 -8. 4 -2. 4 9. 11 I did survey around 50 people at Bangarmau. I find that consumer mostly prefer LIC for life insurance. Actually it is a business town and people do not have enough knowledge about regulatory authority, that’s why they do not believe on other Pvt. companies. I got above 60% people have policy of LIC out of 42 policyholder. VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 21 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY Three more Pvt.Insurance companies are providing service at Bangarmau, but consumers are less responsive for those companies, it is less than 40 % customer hold by these companies. Mean for all these customer towards company is 8. 4 and standard deviation is 9. 11. 4-What was the source of medium, you buy it? T. V. Insurance adviser Other 6 34 2 Here customer do not go at company to buy policy, they always need a agent to make them understand about the better plans and companies, which is good service responsiveness. Those people belong to the service sector, they influenced towards TV and other sources for buying policy -What is the feature of your policy attracted to you? Low premium High risk coverage Money back guarantee Reputation of company Agents convictions 2 2 12 3 23 VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABADPage 22 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY Most of the policyholder in this region are businessman, they need only high growth of their money that’s why they maximum attracted by money back guarantee, but agent attracted them a lot. They make them understand better plans. Customer influenced by agents behavior and they believe upon company, what they suggest them. -Now you are satisfied with your policy? Satisfied Not satisfied Not respondent 36 4 2 7- People perception at appropriate age for buy ing life insurance policy? VIGNANA JYOTHI INSTITUTE OF MANAGEMENT, HYDERABAD Page 23 CONSUMER BUYING BEHAVIOR FOR LIFE INSURANCE POLICY Age No. (X) Mean Standard deviation < 25 year 25-34 35-44 45-54 55-64 65 above 3 15 12 5 5 2 0. 6 3 2. 4 1 1 0. 4 1. 07 5. 36 4. 29 1. 78 1. 76 0. 71 Customer belongs to 25 -45 maximum prefer the insurance policy sake of growth of money and saving the tax. People, who are less than 25 year are students,