Introduction to Health Insurance Industry

Health insurance in India is a growing segment of India's economy. In 2011, 3.9% of

India's gross domestic product was spent in the health sector. According to the World
Health Organization (WHO), this is among the lowest of the BRICS (Brazil, Russia,
India, China, South Africa) economies. Policies are available that offer both individual
and family cover. Out of this 3.9%, health insurance accounts for 5-10% of expenditure,
employers account for around 9% while personal expenditure amounts to an astounding
82%. For the financial year 2014-15 Health Insurance premium was Rs.20,440 crores.

Launched in 1986, the health insurance industry has grown significantly mainly due to
liberalization of economy and general awareness. According to the World Bank, by 2010,
more than 25% of India’s population had access to some form of health insurance. There
are standalone health insurers along with government sponsored health insurance
providers. Until recently, to improve the awareness and reduce the procrastination for
buying health insurance, the General Insurance Corporation of India and the Insurance
Regulatory and Development Authority had launched an awareness campaign for all
segments of the population.

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 Types of policies

Health insurance plans in India today can be broadly classified into these categories:

 Hospitalization
Hospitalization plans are indemnity plans that pay cost of hospitalization and
medical costs of the insured subject to the sum insured. The sum insured can be
applied on a per member basis in case of individual health policies or on a floater
basis in case of family floater policies. In case of floater policies the sum insured
can be utilized by any of the members insured under the plan. These policies do
not normally pay any cash benefit. In addition to hospitalization benefits, specific
policies may offer a number of additional benefits like maternity and newborn
coverage, day care procedures for specific procedures, pre- and post-
hospitalization care, domiciliary benefits where patients cannot be moved to a
hospital, daily cash, and convalescence.
 Family Floater Health Insurance:
Family health insurance plan covers entire family in one health insurance plan. It
works under assumption that not all member of a family will suffer from illness in
one time. It covers hospital expense which can be pre and post. Most of health
insurance companies in India offering family insurance have good network of
hospitals to benefit the insurer in time of emergency.
 Pre-Existing Disease Cover Plans:
It offers covers against disease that policyholder had before buying health policy.
Pre-Existing Disease Cover Plans offers cover against pre-existing disease e.g
diabetes, kidney failure and many more. After Waiting period of 2 to 4 years it
gives all covers to insurer.
 Senior Citizen Health Insurance:
As name suggest These kind of health insurance plans are for older people in the
family. It provide covers and protection from health issues during old age.
According to IRDA guideline, Each insurer should provide cover up to age of 65
years.
 Maternity Health Insurance:
Maternity health insurance ensures coverage for maternity and other additional
expenses. It takes care of both pre and post natal care, baby delivery ( either
normal or caesarean). Like Other Insurance , The maternity insurance provider
have wide range of network hospitals and takes care of ambulance expense.
 Hospital daily cash benefit plans:

2
 Daily cash benefits is a defined benefit policy that pays a defined sum of money
for every day of hospitalization. The payments for a defined number of days in the
policy year and may be subject to a deductible of few days.
 Critical illness plans:
These are benefit based policies which pay a lumpsum (fixed) benefit amount on
diagnosis of covered critical lllness and medical procedures. These illness are
generally specific and high severity and low frequency in nature that cost high
when compared to day to day medical / treatment need. eg heart attack, cancer,
stroke etc now some insurers have come up with option of staggered payment of
claims in combination to upfront lumpsum payment.
 Proactive plans:
Some companies like Cigna TTK offer Proactive living programs. These are
designed keeping in mind the Indian market and provide assistance based on
medical, behavioural and lifestyle factors associated with chronic conditions.
These services aim to help customers understand and manage their health better.
 Disease specific special plans:
Some companies offer specially designed disease specific plans like Dengue Care.
These are designed keeping in mind the growing occurrence of viral diseases like
Dengue in India which has become a cause of concern and thus provide assistance
based on medical needs, behavioural and lifestyle factors associated with such
conditions. These plans aim to help customers manage their unexpected health
expenses better and at a very minimal cost.

Introduction to Religare Health Insurance

Religare Health Insurance Company Limited is a stand-alone Indian health insurance firm
established in July 2012, by Religare enterprise limited, Union Bank of
India and Corporation Bank. The company is headquartered in Gurgaon, Haryana and

3
operates out of 54 offices across India with employee strength of 1200+ and caters to
individual as well as familial health insurance needs. Anuj Gulati is the present Managing
Director and CEO of the company. Other than that it has also won 2015’s Best Health
Insurance Company award by ABP News BFSI, 2013’s ‘Editor’s Choice Award’ by
Finnoviti for ‘Innovation in Product– Care’.

Religare Health Insurance Company Limited is a specialist health insurer engaged in the
distribution & servicing of health insurance products. Religare Health Insurance is
promoted by Religare Enterprises Limited, a leading diversified financial services group
based out of India; its other shareholders are Union Bank of India & Corporation Bank.
Religare is promoted by the founders of Fortis Healthcare, which owns or manages 54
healthcare facilities in India, Dubai & Mauritius; SRL Diagnostics, India’s largest
diagnostics company with 306 networking laboratories, 6900 collection points and
presence in Dubai, Sri Lanka & Nepal and the Fortis Health world chain of pharmacy and
wellness stores. Our expertise in the spectrum of financial services, healthcare delivery
and preventive health solutions, coupled with a robust distribution model, offers us a
unique edge to deliver and excel in a business environment that is driven by serviceability
& scale.

Core Values

 Respect: We treat all our stakeholders the way we want to be treated, with
consideration and respect.
 Trust: We build long term relationship with employees, customers and
distributors honoring our commitments.
 Customer Excellence: We offer finest products and services to the customers by
being refreshingly different and innovative.

Vision

Being the most preferred health service provider, which is caring, cost effective,
innovative and reachable.
Mission

4
To deliver solutions, beneficial to all stakeholders: our customers, our distributors, our
employees and our shareholders.

 To ensure, as part of the above, that all parts of society benefit from our
developments and proposition e.g. rural areas, and the social sector.

 As we guide our customers to address their Health needs, we ensure that both our
services and relationships hold value for a lifetime.

 To provide leading solutions for employers, so they can ensure better health for
their staff.

Products

 Mediclaim Insurance

 Senior Citizen Health Insurance

 Family Health Insurance

 Health Insurance Quotes

 Individual Health Insurance

 Maternity Health Insurance

 Compare Religare Health Insurance Plans

 Compare Religare Travel Insurance Plans

Major Competitors

• Apollo Munich Health Insurance

• Max Bupa Health Insurance Company Limited
• ICICI Lombard
• Bajaj Allianz Health Insurance

5
 SWOT Analysis

Strengths:

1. Innovative Policies with emphasis on long term returns

2. Online products
3. Strong and aggressive marketing

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 4. Religare has over 10,000 employees across multiple geographies, Religare serves
over a million clients

Weaknesses:

1. Less penetration in rural areas

2. Small agent base catering to huge customer base as compared to big players

Opportunities:

1. Growing rural market

2. Earning Urban Youth

Threats:

Stringent Economic measures by Government and RBI

REGULATORY BODY – IRDA31:

IRDA - Insurance Regulatory Development and Authority is the statutory, independent

and apex body that governs and supervise the Insurance Industry in India.

7
It was constituted by Parliament of India Act called Insurance Regulatory and
Development Authority of India (IRDA of India) after the formal declaration of Insurance
Laws (Amendment) Ordinance 2014, by the President of India Pranab Mukherjee on
December 26,2014.

Establishment:
 IRDA Act was passed upon the recommendations of Malhotra Committee
report (7 Jan,1994), headed by Mr R.N. Malhotra (Retired Governor, RBI)
 Main Recommendations - Entrance of Private Sector Companies and Foreign
promoters & An independent regulatory authority for Insurance Sector in India
 In April,2000, it was set up as statutory body, with its headquarters at New Delhi.
 The headquarters of the agency were shifted to Hyderabad, Telangana in 2001.


Objectives:
 To promote the interest and rights of policy holders.
 To promote and ensure the growth of Insurance Industry.
 To ensure speedy settlement of genuine claims and to prevent frauds and
malpractices
 To bring transparency and orderly conduct of in financial markets dealing with
insurance.

Organizational Setup:
IRDA is a ten member body consists of:
 One Chairman (For 5 Years & Maximum Age - 60 years )
 Five whole-time Members (For 5 Years and Maximum Age- 62 years)
 Four part-time Members (Not more than 5 years)

Introduction to topic

Customer Retention

Customer retention refers to the ability of a company or product to retain its customers
over some specified period. High customer retention means customers of the product or

8
business tend to return to, continue to buy or in some other way not defect to another
product or business, or to non-use entirely. Selling organizations generally attempt to
reduce customer defections. Customer retention starts with the first contact an
organization has with a customer and continues throughout the entire lifetime of a
relationship and successful retention efforts take this entire lifecycle into account. A
company's ability to attract and retain new customers is related not only to its product or
services, but also to the way it services its existing customers, the value the customers
actually generate as a result of utilizing the solutions, and the reputation it creates within
and across the marketplace.

The measurement of customer retention should distinguish between behavioral intentions

and actual customer behaviors. The use of behavioral intentions as an indicator of
customer retention is based on the premise that intentions are a strong predictor of future
behaviors, such that customers who express a stronger repurchase intention toward a
brand or firm will also exhibit stronger corresponding behaviors. Customer repurchase
and retention behaviors can be measured in a variety of different ways which are
enumerated in several award-winning articles published in the marketing discipline. The
different studies that also involve different metrics to measure customer repurchase
intention and actual repurchase behaviors are summarized in a series of review papers
such as Keiningham and colleagues (2007), Gupta and Zeithaml (2006), [4] and Morgan
and Rego (2006).[5]These studies point to the following general conclusions:

1. Customer satisfaction is a strong predictor of both customer repurchase intentions

and repurchase behavior
2. Repurchase intentions are statistically significantly, and positively associated with
repurchase behavior: as people's repurchase intention increases, so does their
likelihood to actually repurchase the brand. However, the magnitude of the
association, though positive, is moderate to weak—suggesting that intentions and
behaviors are not interchangeable constructs to measure customer retention.

3. The association between different retention metrics is not always straightforward.

It can be (a) non-linear exhibiting increasing or diminishing returns, (b) different
for different customer segments), and also vary by type of industry.

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 4. Customer retention is a strong predictor of a firm's financial success, both using
accounting and stock market metrics. A study of a Brazilian bank showed that
bank branches that were more adept at efficiently satisfying and retaining
customers were more profitable than their counterparts that did one or the other
but not both.[5]

In terms of measurement, the intention measures can typically be obtained using scale-
items embedded in a customer survey. The retention behaviors must be measured using
secondary data such as/ accounting measures of the volume (amount and financial value)
and frequency with which a customer purchases the firm's goods or services. This
requires that the firm should have a strong customer information management department
that can capture all the relevant metrics that may be needed for analysis. In a typical firm,
these may come from a diverse set of departments such as accounting, sales, marketing,
finance, logistics, and other customer research.

Customer Satisfaction

Customer satisfaction (often abbreviated as CSAT, more correctly CSat) is a term

frequently used in marketing. It is a measure of how products and services supplied by a
company meet or surpass customer expectation. Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported experience with a
firm, its products, or its services (ratings) exceeds specified satisfaction goals."[1]

The Marketing Accountability Standards Board (MASB) endorses the definitions,

purposes, and constructs of classes of measures that appear in Marketing Metrics as part
of its ongoing Common Language in Marketing Project. [2] In a survey of nearly 200
senior marketing managers, 71 percent responded that they found a customer satisfaction
metric very useful in managing and monitoring their businesses.[1]

It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy.[3]

Customer satisfaction provides a leading indicator of consumer purchase

intentions and loyalty." [1] "Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:" [1]

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 1. "Within organizations, the collection, analysis and dissemination of these data
send a message about the importance of tending to customers and ensuring that
they have a positive experience with the company's goods and services."[1]
2. "Although sales or market share can indicate how well a firm is
performing currently, satisfaction is perhaps the best indicator of how likely it is
that the firm’s customers will make further purchases in the future. Much research
has focused on the relationship between customer satisfaction and retention.
Studies indicate that the ramifications of satisfaction are most strongly realized at
the extremes."

On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to
become return customers and might even evangelize for the firm. (A second important
metric related to satisfaction is willingness to recommend. This metric is defined as "The
percentage of surveyed customers who indicate that they would recommend a brand to
friends." When a customer is satisfied with a product, he or she might recommend it to
friends, relatives and colleagues. This can be a powerful marketing advantage.)
"Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return.
Further, they can hurt the firm by making negative comments about it to prospective
customers. Willingness to recommend is a key metric relating to customer satisfaction."

"Customer satisfaction is measured at the individual level, but it is almost always reported
at an aggregate level. It can be, and often is, measured along various dimensions. A hotel,
for example, might ask customers to rate their experience with its front desk and check-in
service, with the room, with the amenities in the room, with the restaurants, and so on.
Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your
stay.'"[1]

As research on consumption experiences grows, evidence suggests that consumers

purchase goods and services for a combination of two types of benefits: hedonic and
utilitarian[9]. Hedonic benefits are associated with the sensory and experiential attributes
of the product. Utilitarian benefits of a product are associated with the more instrumental
and functional attributes of the product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and

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physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization's products.

Affective Commitment

The tendency of a worker to stay with a company that is based on an emotional

attachment. An employee of a business who displays affective commitment to their
company will often identify strongly with the company and its objectives, and might turn
down offers to move to a new company, even if they seem more attractive financially.

AC is defined as the employee's positive emotional attachment to the organization. Meyer

and Allen pegged AC as the "desire" component of organizational commitment. An
employee who is affectively committed strongly identifies with the goals of the
organization and desires to remain a part of the organization. This employee commits to
the organization because he/she "wants to". This commitment can be influenced by many
different demographic characteristics: age, tenure, sex, and education but these influences
are neither strong nor consistent. The problem with these characteristics is that while they
can be seen, they cannot be clearly defined. Meyer and Allen gave this example that
"positive relationships between tenure and commitment maybe due to tenure-related
differences in job status and quality"[1] In developing this concept, Meyer and Allen drew
largely on Mowday, Porter, and Steers's (2006) [3] concept of commitment, which in turn
drew on earlier work by Kanter (1968).[4] Mercurio (2015) stated that..."affective
commitment was found to be an enduring, demonstrably indispensable, and central
characteristic of organizational commitme

Calculative Commitment

The calculative component is based on the committed person feeling more or less
compelled to continue the relationship in question. In older behavioural-science literature
this component of commitment is usually called “continuance commitment”, which
means that the committed person will continue to be employed in the organisation due to
the costs (both economic and social) that arise in connection with the termination of
employment. In many cases, the committed person therefore has no other choice than to

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continue, and consequently feels locked in (Meyer & Herscovitch, 2001, Sharma, Young
& Wilkinson, 2006). The person who has a stronge

calculative commitment must, in other words, for business (economic and social) reasons
try to preserve the relationship. The calculative component consists of two dimensions –
negative and positive. The negative dimension means locked-in values, such as the
committed person being aware that relationship-specific investments already made in
time, effort, money, knowledge etc. may be lost, that new costs may arise and that new
relationshipspecific investments must be made (‘switching costs’) if the relationship
concerned comes to an end. The positive dimension relates to future values, such as
anticipating future gains in terms of time, effort, money, knowledge etc. (Sharma, Young
& Wilkinson, 2006, Bansal, Irving & Taylor, 2004). These two dimensions are closely
linked to past and present investment and returns. Empirical studies in both organisational
and market research indicate that if the committed person feels that there are locked-in
and future values or that there is a lack of alternative relationship partners, this gives rise
to calculative commitment

Theoretical Framework

CONSTRUCT:-

13
“Studying the effect of customer satisfaction, relationship commitment dimensions and
triggers on customer retention in Religare Health Insurance Company”

DEPENDENT VARIABLE:-

Customer retention

INDEPENDENT VARIABLE:-

1. Customer satisfaction
2. Relationship commitment (Affective and calculative Commitment)
3. Triggers (Situational and Reactional Triggers)

LITERATURE REVIEW
Books

14
 Malhotra K Naresh1 (5th Edition),“Marketing Research: An Applied
Orientation”,
(Types of research design and researcher has used this knowledge in determining
the purpose of the study, time horizon, study setting and type of investigation for
this study.)
 Kothari C.R2 (2nd Revised Edition),“Research Methodology Methods and
Techniques”,
(Research methods which have been used by researcher. Researcher has used the
knowledge while designing sampling design which helped in determining sample
area, sample unit etc. of the present study.)
 Jain T.R3.(4th Edition),“Statistics for MBA”,
(The importance of regression and also understanding the null and alternate
hypothesis which helps in the development of hypothesis in the study and also
help in understand about the sample and sampling design.)
 J Sheridan, Steed Lyndall & Dzidic Peta4, “SPSS Version 17.0 for Windows”,
(Researcher collected information regarding the important tool used in the study
and defines where it is applied and why. It explains the relevance of different tools
to be used.)
 Beri G.C5.(III Edition), “Marketing Research”,
(The book helped the researcher in understanding the different research process
and analytical tools used here.)
 Sekran Uma6 (4th Edition),“Business Research Methodology”,
(Research methodology which has used by researcher do design proper research
framework. Researcher has studied data analysis and interpretation from this
which can be used by her in analyzing the responses of the individuals.)
 Hair Joseph f. & Robert P. Bush7 ( ED.2007), “Marketing Research”,
Attitude measurements and meaningful diagnostic Marketing Research
Information.
 Sharma D.D8, “Marketing Research”,
(The book helped the researcher in understanding the Factor Analysis.)
 Boyd W. Harper; Westfall-Ralph, Stash F. Stanley 9, “Marketing Research (Text
& Cases)”,
(The book helped the researcher in understanding the research objective and
information needs.)
 Mari Smith14 “The New Relationship marketing”,
(Researcher studied about the new dimensions of relationship marketing)
 Regis Mckenna15 “Relationship Marketing”,
(This book helped in studying the strategies of relationship marketing)
 Jill Griffin16 “Customer satisfaction”,
(This book helped in studying about the customer satisfaction)

15
Journals:
 G.S. Sureshchandar, Chandrasekharan Rajendran, R. N. Anantharaman 24
(2002), “The relationship between customer retention and customer satisfaction:
A factor specific approach”, Journal of Services Marketing.
(This paper helps in studying the ways to measure customer satisfaction and
relationship between them.)
 Jani, A. S.16 (May-2012)“A Study Of Consumer Perception About customer
retention Of Indian Non-Life Insurance Companies: Comparative Analysis
between Governments Owned Non-Life Insurance and Privately Owned Non-Life
Insurance”, Journal of Business and Management :
(Researcher studied the customer retention is becoming indispensable)
 Malini, D. H.17 (August-2012), “A study on customer retention measurement and
its impact in opting insurance companies”, International Journal of Social
Science and Interdisciplinary Research.
(Researcher’s purpose of this study is to evaluate customer’s general expectation
and perception of insurer in terms of Services offered at the insurance service
measurement.)
 Albert Caruana18 (Aug-2002), “customer retention: The effects of customer
retention and the Mediating Role of Customer Satisfaction”, European Journal of
Marketing.
(Researcher studied about customer retention and the differentiation between
customer retention and customer satisfaction.)
 Haemoon Oh*19 (1999), “customer retention, customer satisfaction, and customer
value : A holistic perspective”, International Journal of Hospitility Management.
(Researcher studied an integrative model of customer retention, customer
satisfaction and customer value.)
 Steven A. Taylor, Thomas L. Baker 20 (1994).” An Assessment of the
Relationship Between customer retention and Customer Satisfaction in the
Formation of Consumers’ Purchase Intentions”. Journal of Retailing.
(Researcher studied about, how customer retention and customer satisfaction help
in building consumer purchase intention’s.)
 A. Parasuraman, Valarie A. Zeithaml, & Leonard L. Berry 21 (Fall 1985), “A
Conceptual Model of customer retention and Its Implications for Future
Research”. Journal of Marketing. (Researcher studied customer retention and a
model of customer retention.)
 Valarie A. Zeithaml, Leonard L. Berry & A. Parasuraman 22
(April-1996),
“The Behavioral Consequences of customer retention”, Journal of Marketing.

16
 (Reseacher studied about the conceptual model of the impact of customer
retention on particular behaviours)
 Meharajan, T., & Vanniarajan, T.23 (April-2011). “Cultural Influences on
Giqual: An Empirical Study in Insurance Sector”. Global Management Review,
(Researcher studied about the retention is the outcome of customers' satisfaction)
Websites:
 http://basics.ibx.com/what-is-health-insurance/27
Researcher has taken information about health insurance.
 http://en.m.wikipedia.org/wiki/Religare_Health_Insurance_Company_Limited 28
Researcher has taken information regarding executive training company.
 http://www.irdai.gov.in29
Researcher has taken information regarding regulatory body.
 http://www.busdiinessdictionary.com/definition/customer retention.html30
Researcher has taken the information about customer satisfaction.
 http://en.m.wikipedia.org/wiki/customer_satisfcation31
Researcher has collected information regarding customer satisfaction.
 http://www.servqual.estranky.cz/clanky/english/wahtisen.html32
Researcher has taken the information about customer retention.

Objectives of the study

Research Objective:

To study the effect of customer satisfaction, relationship commitment dimensions and

triggers on customer retention in Religare health insurance company

Research Questions:

• To Study the customer retention practices of Religare Health Insurance company

on the basis of customer satisfaction and relationship commitment, and Triggers
(Situational and reactional)

• To study that how much variations in independent variable is explained by

dependent variable using factor as well as regression analysis

• To study the customer retention practices adopted by Religare Health Insurance

company in this changing business environment.

17
RESEARCH METHODOLOGY6

18
Research is common refers to search for knowledge. It is the pursuit of truth with the help
of study, observation, composition and experiment. Research methodology is a systematic
way to solve the research problems. It helps in studying the various steps that are adopted
by the researcher to study the research problems along with the logic behind it. It describe
mail what must be done, how will be done. What data will be needed and how the data
will be analyzed.

OBSERVATION

Broad area of
research interest
identified
3
4 5 7
PROBLEM
6
DEFINITION
THEORETICAL GENERATION DATA COLLECTION,
FRAMEWORK OF HYPOTHESES SCIENTIFIC
Research
RESEARCH ANALYSIS AND
Problem
DESIGN INTERPRETATION
Delineated

Variables clearly
identified and 8
labeled
2 DEDUCTION

PRELIMINARY Hypotheses
DATA GATHERING substantiated?
Research
Interviewing NO Yes
question
Literature Survey answered?
11
9 10
Manager
Report Report ial
writing Presenta decision
tion making

Research Design

19
 Purpose of the study Descriptive

Type of Investigation causal as well as correlational

Study Setting Non contrived

Time Horizon Cross sectional

Measurement and scaling 4 point rating Likert Scale

Type of Research Design:

The present study has been Descriptive in nature, as it seeks to discover ideas and
insight to bring out new relationship based on previous findings in other organizations

Type of Investigation:

The present study has been primarily of Causal as well as co relational relationship
because the researcher has attempted to find out the cause & effect relationship of
customer satisfaction Relationship commitment, and triggers with customer retention.

Time Horizon1:

The study has been found to be Cross-sectional as data has been collected at particular
time period.

Study Setting:
20
The study setting is Non Contrived as the study has been carried out in natural
environment and no researcher interference has been there in data collection process.

Measurement & Scaling:

Four point Likert (interval) scaling has been used for conducting the survey to analyze the
impact of customer retention on the basis of customer satisfaction and relationship
commitment, and Triggers.

4 - Strongly Disagree

3 - Disagree

2 – Agree

1 - Strongly Agree

Flow Chart for Selection of Statistical Tool:

21
22
23
 SAMPLE AND SAMPLING DESIGN2

TARGET POPULATION Customers of Gurugram

SAMPLE SIZE 370 customers

SAMPLING TECHNIQUE Convenience Sampling

SAMPLING AREA Gurugram

DATA COLLECTION

24
After the research problem has been identified and selected, the next step is to gather the
requisite data. While deciding about the method of data collection to be used for, the
researcher should keep in mind two types of data: primary and secondary.

In the present study researcher has made use of the primary data which has been collected
through Questionnaire

1. Primary Data

The primary data are those, which are collected afresh and for the first time, and thus
happened to be original in character. We can obtain primary data either through
observation or through direct communication with respondent in one form or another
or through personal interview

2. Secondary Data

The data which already exists in the company in the form of balance sheets and other
financial statements.

 Personal Interview
PRIMARY
 Questionnaire
DATA
 Marketing Manuals
SECONDAR  Internet
Y DATA  Books
 Journals

Method of Data Collection for this Study

 Method of data collection used for this study is primary data.

The primary data was collected from Questionnaire filled by 370 respondents.

STATISTICAL TOOLS3

25
Statistical tools helped the researcher to correctly analyze the data .The researcher is
likely to use the SPSS 16.0 (Statistical Package for Social Sciences) and software for
analysis of the data15.

The following tools are likely to be used by the researcher:-

 Reliability Analysis
 Factor Analysis
 Regression Analysis

Reliability

26
 Case Processing Summary
N %
Cases Valid 370 100.0
a
Excluded 0 .0
Total 370 100.0
a. Listwise deletion based on all
variables in the procedure.

Reliability Statistics
Cronbach's
Alpha N of Items
.761 19

Interpretation:

 By applying reliability statistics on variables, the value of Cronbach’s Alpha has

been found to be 0.761 which is greater than 0.5. It means that survey instrument
is reliable.

Factor Analysis

27
 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling .778
Adequacy.
Bartlett's Test of Approx. Chi-Square 1428.139
Sphericity Df 171
Sig. .000

Interpretations:
 Kaiser-Meyer-Olkin measure of Sampling Adequacy is 0.778 which is more than
0.7.

 The Kaiser-Meyer-Olkin measure of sampling adequacy tests whether there exist

an inter correlation among variables and whether the sample size is adequate or
not. In the table, sig. value is .000, which is <.05, which shows that there exists
the significant correlation among the various items.

Total Variance Explained

Component Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
% of Cumulative % of Cumulative % of Cumulative
Total Variance % Total Variance % Total Variance %
1 4.316 22.714 22.714 4.316 22.714 22.714 2.630 13.844 13.844
2 1.655 8.709 31.424 1.655 8.709 31.424 2.223 11.700 25.544
3 1.479 7.782 39.206 1.479 7.782 39.206 1.721 9.058 34.601
4 1.191 6.268 45.474 1.191 6.268 45.474 1.553 8.174 42.775
5 1.097 5.774 51.248 1.097 5.774 51.248 1.335 7.024 49.799
6 1.037 5.459 56.707 1.037 5.459 56.707 1.312 6.908 56.707
7 .979 5.153 61.859
8 .911 4.792 66.651
9 .856 4.504 71.155
10 .806 4.242 75.397
dimension0

11 .739 3.890 79.287

12 .668 3.516 82.804
13 .567 2.982 85.786
14 .526 2.768 88.554
15 .500 2.631 91.185
16 .479 2.523 93.707
17 .432 2.275 95.982
18 .422 2.220 98.202
19 .342 1.798 100.000
Extraction Method: Principal Component Analysis.

28
Rotated Component Matrixa
Component
1 2 3 4 5 6
RHI1 .726
RHI2 .619
RHI3 .789
RHI4 .841
RHI5 .652
RHI6 .538
RHI7
RHI8 .652
RHI9 .544
RHI10 .635
RHI11 .715
RHI12 .600
RHI13
RHI14 .781
RHI15 -.745
RHI16 .726
RHI17 .793
RHI18 .580
RHI19 .608
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.

Interpretations:

The total variance explained table shows that all the 6 components are cumulatively
explaining 56.707% variation in dependent variable i.e. customer retention. These 6
components are:

 Affective Commitment
 Reactional Trigger
 Customer Satisfaction
 Situational Trigger
 Customer Retention
 Calculative Commitment

29
Regression
Regression analysis tool is used to quantify the impact of independent variable on
dependent variable. Researcher4 has applied this tool to measure the impact of
independent variables on dependent variables.

Types of Regression Analysis10

 Simple and multiple regression:

In case of simple regression, we study only two variables i.e. one dependent and one
independent. But in case of multiple regressions we take more than two variables i.e. one
dependent and other independent.

 Linear and non linear regression:

When one variable changes with another variable in some fixed ratio, it is called as linear
regression. But if this ratio is not constant, it is known as Non-linear regression.

 Partial and total regression:

If from more than two variables only two variables are taken into consideration. It is
called as partial regression. But all variables are taken into consideration at a single slank.
It is called as total regression.

30
Model Summaryb

M Std. Change Statistics

od R Adjuste Error of R F
el Squa dR the Square Chang Sig. F
R re Square Estimate Change e df1 df2 Change Durbin-Watson
d1 . .050 .037 . .050 3.864 5 36 .002 2.153
a
i 225 9811426 4
m 9
e
n
s
i
o
n
0
a. Predictors: (Constant), REGR factor score 5 for analysis 3, REGR factor score 4
for analysis 3, REGR factor score 3 for analysis 3, REGR factor score 2 for analysis
3, REGR factor score 1 for analysis 3
b. Dependent Variable: REGR factor score 1 for analysis 2

31
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 18.599 5 3.720 3.864 .002a
Residual 350.401 364 .963
Total 369.000 369
a. Predictors: (Constant), REGR factor score 5 for analysis 3, REGR factor score 4 for analysis 3, REGR
factor score 3 for analysis 3, REGR factor score 2 for analysis 3, REGR factor score 1 for analysis 3
b. Dependent Variable: REGR factor score 1 for analysis 2

Interpretation:

The adjusted r-square is 0.037, which means that above regression model is explaining on
3.7% variation in dependent variable in totality. The value of Durbin Watson is 2.153
which is also in range, So the multi-co linearity is under tolerable limit.

Coefficientsa
Model Standardi
zed
Unstandardized Coefficie 95.0% Confidence
Coefficients nts Interval for B
Lower Upper
B Std. Error Beta t Sig. Bound Bound
1 (Constant) 9.653E-17 .051 .000 1.000 -.100 .100
REGR factor score 1 .029 .051 .029 .571 .020 -.071 .130
for analysis 3
REGR factor score 2 .049 .051 .049 .955 .340 -.052 .149
for analysis 3
REGR factor score 3 .083 .051 .083 1.616 .107 -.018 .183
for analysis 3
REGR factor score 4 .162 .051 .162 3.173 .002 .062 .262
for analysis 3
REGR factor score 5 -.119 .051 -.119 -2.325 .021 -.219 -.018
for analysis 3
a. Dependent Variable: REGR factor score 1 for analysis 2
Interpretation:

CR2 =9.653E-17+.029(AC) +.049(RT) +.083(CC) +.162(CS) +(-.119)(ST)

Individually, affective commitment, reactional trigger, calculative commitment, customer

satisfaction, and situational trigger having 2.9%, 4.9%, 8.3%, 16.2%,11.9% impact on
customer retention. Affective commitment and customer satisfaction and situational
triggers are the most significant variables that effect the customer retention which is .020
and .002 and .021. out of these three variables situational trigger is negatively impacting

32
the customer retention which means when situational trigger increased, customer
retention decreased.

Cross Tabulation

Customer Retention

C_R * Gender Crosstabulation

Gender
Male Female Total
C_R LOW customer retention Count 90 101 191
% within C_R 47.1% 52.9% 100.0%
% within Gender 54.5% 49.3% 51.6%
% of Total 24.3% 27.3% 51.6%
Residual 4.8 -4.8
Std. Residual .5 -.5
HIGH customer retention Count 75 104 179
% within C_R 41.9% 58.1% 100.0%
% within Gender 45.5% 50.7% 48.4%
% of Total 20.3% 28.1% 48.4%
Residual -4.8 4.8
Std. Residual -.5 .5
Total Count 165 205 370
% within C_R 44.6% 55.4% 100.0%
% within Gender 100.0% 100.0% 100.0%
% of Total 44.6% 55.4% 100.0%

33
 Interpretation:

 Male customer group compose of 44.6% of total population out of which

20.3% customers have an opinion that Religare Health Insurance provides good
services.
 Female Customers group compose of 55.4% of total population out of which
28.1% customers have an opinion that Religare Health Insurance provides good
services.

Customer Satisfaction

34
 C_S * Gender Crosstabulation
Gender
Male Female Total
C_S LOW customer Count 74 60 134
satisfaction % within C_S 55.2% 44.8% 100.0%
% within 44.8% 29.3% 36.2%
Gender
% of Total 20.0% 16.2% 36.2%
Residual 14.2 -14.2
Std. Residual 1.8 -1.7
HIGH customer Count 91 145 236
satisfaction % within C_S 38.6% 61.4% 100.0%
% within 55.2% 70.7% 63.8%
Gender
% of Total 24.6% 39.2% 63.8%
Residual -14.2 14.2
Std. Residual -1.4 1.2
Total Count 165 205 370
% within C_S 44.6% 55.4% 100.0%
% within 100.0% 100.0% 100.0%
Gender
% of Total 44.6% 55.4% 100.0%

Interpretation:

35
  Male customers compose of 44.6% of total population out of which 24.6% are
satisfied with Religare Health Insurance Company.
 Female customers compose of 55.4% of total population out of which 39.2% are
satisfied with Religare Health Insurance Company.

Affective Commitment
A_C * Gender Crosstabulation
Gender
Male Female Total
A_C LOW affective Count 101 98 199
commitment % within A_C 50.8% 49.2% 100.0%
% within 61.2% 47.8% 53.8%
Gender
% of Total 27.3% 26.5% 53.8%
Residual 12.3 -12.3
Std. Residual 1.3 -1.2
HIGH affective Count 64 107 171
commitment % within A_C 37.4% 62.6% 100.0%
% within 38.8% 52.2% 46.2%
Gender
% of Total 17.3% 28.9% 46.2%
Residual -12.3 12.3
Std. Residual -1.4 1.3
Total Count 165 205 370
% within A_C 44.6% 55.4% 100.0%
% within 100.0% 100.0% 100.0%
Gender
% of Total 44.6% 55.4% 100.0%

36
Interpretation:

 Male customers compose of 44.6% of total population out of which 17.3% from
high affective Commitment
 Male customers compose of 55.4% of total population out of which 28.9% from
high Affective Commitment

Calculative Commitment

37
 C_C * Gender Crosstabulation
Gender
Male Female Total
C_C LOW calculative Count 68 67 135
commitment % within C_C 50.4% 49.6% 100.0%
% within 41.2% 32.7% 36.5%
Gender
% of Total 18.4% 18.1% 36.5%
Residual 7.8 -7.8
Std. Residual 1.0 -.9
HIGH calculative Count 97 138 235
commitment % within C_C 41.3% 58.7% 100.0%
% within 58.8% 67.3% 63.5%
Gender
% of Total 26.2% 37.3% 63.5%
Residual -7.8 7.8
Std. Residual -.8 .7
Total Count 165 205 370
% within C_C 44.6% 55.4% 100.0%
% within 100.0% 100.0% 100.0%
Gender
% of Total 44.6% 55.4% 100.0%

38
Interpretation:

 Male customers compose of 44.6% of total population out of which 26.2% from
high Calculative Commitment
 Female customers compose of 55.4% of total population out of which 37.3%
from high Calculative Commitment

39
 Reactional Triggers

R_T * Gender Crosstabulation

Gender
Male Female Total
R_T LOW reactional Count 67 76 143
triggers % within R_T 46.9% 53.1% 100.0%
% within 40.6% 37.1% 38.6%
Gender
% of Total 18.1% 20.5% 38.6%
Residual 3.2 -3.2
Std. Residual .4 -.4
HIGH reactional Count 98 129 227
triggers % within R_T 43.2% 56.8% 100.0%
% within 59.4% 62.9% 61.4%
Gender
% of Total 26.5% 34.9% 61.4%
Residual -3.2 3.2
Std. Residual -.3 .3
Total Count 165 205 370
% within R_T 44.6% 55.4% 100.0%
% within 100.0% 100.0% 100.0%
Gender
% of Total 44.6% 55.4% 100.0%

40
Interpretation:

 Male customers compose of 44.6% of total population out of which 26.5% from
Reactional Triggers
 Female customers compose of 55.4% of total population out of which 34.9% from
Reactional Triggers

Situational Triggers

41
 S_T * Gender Crosstabulation
Gender
Male Female Total
S_T LOW situational Count 103 112 215
triggers % within S_T 47.9% 52.1% 100.0%
% within 62.4% 54.6% 58.1%
Gender
% of Total 27.8% 30.3% 58.1%
Residual 7.1 -7.1
Std. Residual .7 -.7
HIGH situational Count 62 93 155
triggers % within S_T 40.0% 60.0% 100.0%
% within 37.6% 45.4% 41.9%
Gender
% of Total 16.8% 25.1% 41.9%
Residual -7.1 7.1
Std. Residual -.9 .8
Total Count 165 205 370
% within S_T 44.6% 55.4% 100.0%
% within 100.0% 100.0% 100.0%
Gender
% of Total 44.6% 55.4% 100.0%

42
Interpretation:

 Male customers compose of 44.6% of total population out of which 16.8% high
situational triggers
 Female customers compose of 55.4% of total population out of which 25.1 %
from high situational triggers

RESULTS AND FINDINGS

43
 By applying reliability statistics on variables, the value of Cronbach’s Alpha has
been found to be 0.761 which is greater than 0.5. It means that survey instrument
is reliable

 Kaiser-Meyer-Olkin measure of Sampling Adequacy is 0.778 which is more than

0.7.

 The Kaiser-Meyer-Olkin measure of sampling adequacy tests whether there exist

an inter correlation among variables and whether the sample size is adequate or
not. In the table, sig. value is .000, which is <.05, which shows that there exists
the significant correlation among the various items.
 The total variance explained table shows that all the 6 components are
cumulatively explaining 56.707% variation in dependent variable i.e. customer
retention.

 The adjusted r-square is 0.037, which means that above regression model is
explaining on 3.7% variation in dependent variable in totality. The value of
Durbin Watson is 2.153 which is also in range, So the multi-co linearity is under
tolerable limit.

 Individually, affective commitment, reactional trigger, calculative commitment,

customer satisfaction, and situational trigger having 2.9%, 4.9%, 8.3%,
16.2%,11.9% impact on customer retention. out of these three variables situational
trigger is negatively impacting the customer retention which means when
situational trigger increased, customer retention decreased.

 Male customers compose of 44.6% of total population out of which 17.3% from
high affective Commitment
 Male customers compose of 55.4% of total population out of which 28.9% from
high Affective Commitment

LIMITATIONS OF THE STUDY

44
However the researcher has tried her best in collecting the relevant information for
research, yet there have been some problems faced by the researcher. The prime
difficulties which researcher has faced in collection of information are discussed below:

1. Non-Applicability: The instrument may not be applicable to the rest of the

sectors in India without further restructuring.
2. Unwillingness of respondents: While collection of the data many customers were
unwilling to fill the questionnaire. Respondents were having a feeling of wastage
of time for them.
3. Respondents’ bias: Due to the biasness on the part of respondents, data collected
may have been affected which further reduces the credibility of the findings.

4. Lack of Experience: Researcher was new on the topic which was assigned to me.
And first time researcher has done research for any organization. So lack of
experience in getting information from respondents came in to the way of
collecting the relevant data.

POLICY IMPLICATIONS

Policy Implications are the Probable outcomes resulting from the implementation of
various recommendations given by the researcher. According to researcher the following
are the policy implication:

 Company ensures that every service is available in each branch.

45
  Company ensures that they respond to the customer’s requests on time without
making any delay.

 Company ensures that all the transactions of the customers are safe and secure.

In case the company implements the recommendations suggested by the researcher,

there will be an increase in the sales and hence increased profits.

RECOMMENDATIONS

After completing the analysis and interpretation the researcher has suggested following
recommendations to the Company so that they would be able to provide such services
which increases Customer Retention :

 Company should have a wide range of products and a number of options in

the products .
 Company should provide prompt services and when promised.
 Company should standardize the delivery process and also minimize the
service delivery time.
 Company should have adequate personnel for good customer service.

46
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49