Page 1 of 18
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 573
Role of demographic variables on the Consumers Buying Decision for
Purchasing Life Insurance Products
Submitted By: Rajneesh Karloopia1
Research Scholar, Dept. of Management,
Central University of Rajasthan
Dr. Maithili R P Singh2
Professor, Dept. of Management,
Central University of Rajasthan
Consumer’s desires and preferences are varying with change in factors like demographics and
lifestyles. These factorial changes can be a potential business opportunities for marketers and
threats for marketers who fail to adapt them. It is very important to know how consumers buying
behavior in modern market. Buying behavior can be influenced by personality, socio- demographic character, and lifestyle. Consumer buying Behavior analysis helps us to identify the
internal variables like motivation, personality, perception, learning, and attitude, and external
variables like reference groups, family, social class, and, culture, and their influence on
consumer decision-making process. Buyer behavior focuses how individual decision processes
varied during spend of their resources (Time, Money and efforts) on consumption related items.
Buyer behavior has changed drastically post liberalization of the markets.
Indian insurance sector has undergone to major structural changes in case of both life insurance
and general insurance. Everyone is looking for best insurance plans as per their investment
capacity. The impact of living status of public also plays an important role in the buying decision
of insurance products. The present paper is an attempt to study the role of demographic factors
in consumer’s buying decision in insurance products in Jammu and Kashmir.
Keywords: Consumer, Buying Decision, Insurance, Insurance Products, Demographic factors.
Indian insurance sector has undergone to major structural changes in case of both life insurance
and general insurance. According to IRDA, annual report of 2011-12, the Indian insurance sector
Page 2 of 18
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 574
has enjoyed a rapid growth. Everyone is looking for best insurance plans as per their investment
capacity. The impact of living status of public also plays an important role in the buying decision
of insurance products. The term consumer buying behavior is defined as the behavior that
consumer display in searching for purchasing, using, evaluating and disposing of
products/services that are required for satisfying their needs. Consumer behaviour is a complex,
dynamic, multidimensional process, and all marketing decisions are based on assumptions about
consumer behaviour. Consumer buying pattern is unswervingly evolved from the consumer
behavior and its attitude. Many things combine to build up the actions of any individual. The first
thing which influences the consumer behavior is his culture. Culture builds the strong
perceptions of the products in the mind of the customers (Hye-Shin Kim, 2008).
According to Rai, 2013, “there are several national and international brands which people
recognized and have strong perception in their minds. These perceptions are pinched in their
mind because of their culture, life styles and surroundings.” Consumers in all over the world are
attracted towards the brand and products which are emotionally attached with their behaviors.
Studies found that emotional attachments put a huge influence on the customers and their buying
behavior as people tend to associate themselves with the brand. The current research paper is an
attempt to study consumer buying attitude towards the insurance products. Research has studied
various material related to it. He found the need of more work in this area concerning towards
consumer thought.
Dr. I. Meenakshi. (April 30, 2018) “A Study on Preference of Policyholders about Public
and Private Life Insurance Companies in Tirunelveli District.” The research gives a very
positive response of attitude of life insurance products. There is no doubt that LIC’s life
insurance products are the most preferred ones in India and LIC is the only Public Sector
Insurance Company which is the most dominating in India. In fact LIC is also the largest life
insurance company in India. It is also country's largest investor. Nikita Kumari.(2015) in the
study on “Determinants of Insurance Investment: A case Study of Life Insurance
Corporation of India” tried to study the impact of premium on the investment of insurance
companies by the people. The research paper emphasized that freedom should be given to
insurance industry of our country to safeguard the interest of the clients. It is in the insurance
Page 3 of 18
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 575
environment which is more regulated that the investor enjoys the fruits of investment. Insurance
sector should let provide accessible and alternative increase opportunities. It was revealed that
there is a significant impact of claim on investment of Life Insurance Corporation of India.
Present research work is concerned to check out the impact of demographic variables on
consumer buying behavior on insurance products.
Review of Literature:
D. Sidhardha, M Sumanath. (July, 2017) after studying consumer buying behaviour
towards life insurance in the paper “Consumer Buying Behaviour Towards
LifeIinsurance: An Analytical Study” concluded that the consumers in India have
consuming habits that change very quickly. People in India have different opinions about
investment and this research work focused on understanding the behaviour of customers
towards investment in life insurance. The researchers tried to identify the reasons that
drive customers to Indian life insurance. And it was revealed that customers take
insurance policies as best option of tax saving. Insurance for customers are safe and low
risk options of investment. Overall, there is a positive attitude towards life insurance in
our country. It is very much possible that India becomes one of the biggest markets for
insurance company one day.
Shiau Pei Shih, Szuchiang Yu , Hui Chin Tseng (March, 2015) studied the consumers
beverage purchasing behaviour in different beverages groups in Tainan city, Taiwan in
their study titled “The Study of Consumer Buying Behaviour and Consumer
Satisfaction in Beverages Industry in Tainan, Taiwan”. It was found that group of self
prepare drinks get more attention and people were more concerned about healthy and
formula drinks other than bottled drinks and handmade beverages. The youngest female
preferred handmade drinks email while younger males preferred bottle drinks.
Dr. M .Velumani.( December, 2014). In this study on “A Study on Consumer Buying
Behaviour towards Nokia Mobile in Erode District”, the researcher had made an
attempt to study the level of buying behaviour of Nokia mobile in Erode District. The
study revealed that there is high level of positivity towards Nokia services among the
