Discuss about the Retail Network Operations and Marketing Satisfaction.
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.
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 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.
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.
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.
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.
Strength
Weakness
Opportunities
Threats
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.
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.
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 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.
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).
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).
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 future plan, therefore these also have the emotional impacts on people. Another way knowledge about products, also influence the customers towards purchasing.
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.
Availability of products in the market brings various options to the company. This impacts on the buying decision of the customers.
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.
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.
After selling the products if the product review will be collected from the customers. This will help to develop the strong relationship with customers.
If the quarries and problems of the customers are being solved by the organization, this increases their trust towards the company.
Society highly impacts on human activities and their decision making process. By highlighting family and social class, the study has shown the impact of these elements on the purchasing behaviour of the customers.
The family is the important thing in everyone’s life. People easily get influenced by the interests and preferences of their family. In the case of life insurance policy, people mostly follow the company chosen by their family (Menkhoff, Wah, & Loh, 2016). If any of the family members of a person get good or bad experience from any organization, they recommend their family members to able it or not to able it. In this situation, people get influenced by the decision of the experienced one. On the other hand, in the case of friend and neighbour influence, people do the same. Therefore, this can be said that in the case of influencing the purchasing behaviour of a person, family plays an important role.
Depending on the brand image and its popularity the company impacts on the customers’ mind business revenue if the company gets influenced. The brand fascinated people mostly follows a particular brand with strong brand identity. Therefore, if an organization will be able to increase its popularity in the market, it will be able to attract large number of customers and it will also be able to change the purchasing behaviour of the customers.
Motivation is considered as the important factor to influence the decision making process of a customer. As stated by (Rani, 2014), motivation is the inner driver, which reflects on the goals-directed provocation. In the case of this study, this has been analysed that purchasing decision of individual gets influenced by individuals’ motivation. It helps to drive the person towards safety needs and demands through psychological and physiological connection with the service and products (Ho, 2014). Therefore this can be said that motivation is very important in the case of influencing customer behaviour.
According to Menkhoff, Wah & Loh (2016), Perception of the customers depends on the awareness, consciousness and impression about the company. The promotional strategy of an organization influences the customers’ perception. Therefore, this can be said that advertising, social media, public relations, customer review and personal experiences are important factors in the case of developing customers’ perception. In this study, the Life insurance policy of the company named Great Eastern Life has been highlighted, which has developed to provide secure future to the customers. In the case of emergency purpose, the company has introduced the policy for the customers. Therefore, this can be said that depending on the emotions of the customers, the company has influence the customers’ buying decision.
As opined by Lee, Tsao & Chang, (2015), personal factors such as economic status, occupation, lifestyle, age self-esteem and personality are the important elements of human life, which highly dominate the psychological changes of human life. The behaviour, attributes and ability of a person depend on the personal factors. Hence, this can be said that personal factors are very important for driving the human life. In this study, age and personality have chosen as the influential factors, which impacts on the purchasing behaviour of the customers.
Personality of individuals also impacts on their purchasing behaviour. Individuals have their characteristics and personality. In the case of fitness freak person this can be said that the person always prefers the fitness equipment. Another way Lee, Tsao & Chang, (2015) stated that the music lover will always prefer the music instruments, CDs, concerts and musical shows. Therefore, this can be said that depending on the interest of a person, the buying behaviour gets influenced. It interconnected with the demands and needs of individuals, in the case of this study, this can be said that the people who are conscious about their future and aware about the importance of an emergency situation, will prefer the life insurance policies.
According to Wu (2014), age is an important factor in human life. Depending on the age of a person, the interest and point of view get influenced. As its example, this can be said that the teenagers are being attracted towards the bright and attractive products rather than focusing on its quality. On the other hand, the middle-aged and aged people prefer the subtle and decent designs. In the case of preferences of bachelor, they prefer lavish items such as music, beer, cloths, bikes, clubs and many more. The young people hardly buy property, insurance policy or house. On the other hand, the people who have family, mostly prefer buying the things which will be beneficial for their families. They always try to make their future secure.
Conclusion
In the above study, this can be concluded that the company named Great Eastern Life has established its strong position in the Singaporean business market. It is going to increase its customer base for introducing the life insurance policy which highlighted the health needs. In order to achieve its goals and objectives, it has tried to develop the customer relationship. 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 provides the psychological satisfaction to the customers through its terms and regulations, it will help it to grab the large customer base.
Reference list
Berbegal-Mirabent, J., Mas-Machuca, M., & Marimon, F. (2016). Antecedents of online purchasing behaviour in the tourism sector. Industrial Management & Data Systems, 116(1), 87-102.
Gera, R., Mittal, S., Batra, D. K., & Prasad, B. (2017). Evaluating the Effects of Service Quality, Customer Satisfaction, and Service Value on Behavioral Intentions with Life Insurance Customers in India. International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 8(3), 1-20.
Greateasternlife.com. (2018). Greateasternlife.com. Retrieved 1 April 2018, from https://www.greateasternlife.com/sg/en/index.html
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), 6478-6492.
Ladhari, R., Souiden, N., & Dufour, B. (2017). The role of emotions in utilitarian service settings: The effects of emotional satisfaction on product perception and behavioural intentions. Journal of Retailing and Consumer Services, 34, 10-18.
Lee, C. Y., Tsao, C. H., & Chang, W. C. (2015). The relationship between attitude toward using and customer satisfaction with mobile application services: an empirical study from the life insurance industry. Journal of Enterprise Information Management, 28(5), 680-697.
Menkhoff, T., Wah, C. Y., & Loh, B. (2016). Notes from an intelligent Island’: Towards Strategic Knowledge Management in Singapore’s Small Business Sector. Internationales Asienforum, 35(1-2), 85-99.
Ramanathan, U., Subramanian, N., & Parrott, G. (2017). Role of social media in retail network operations and marketing to enhance customer satisfaction. International Journal of Operations & Production Management, 37(1), 105-123.
Rani, P. (2014). Factors influencing consumer behaviour. International journal of current research and academic review, 2(9), 52-61.
Wu, W. P. (2016). A Study on Business Strategy of Small Accountancy Firms.
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