THE IMPACT OF INSURANCE MARKETING RESEARCH IN NEW PRODUCT DEVELOPMENT

(SURVEY OF SELECTED INSURANCE COMPANIES)

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ABSTRACT

This study is on the Impact of Insurance marketing research in the development of new product. The development of new product requires information. Marketing research major purpose is to obtain needed information to aid marketing decision and policies. If producers of new insurance products did not carryout effective marketing research before developing and introducing their new products to the market for consumers to purchase sometimes nothing to reckon with. Hence, this study is conducted to disclose the significance of insurance marketing research in new product development. Data were collected on this account, analyzed using tables and samples percentage. Hypothesis were reviewed. And from all the literatures reviewed, analysis and test carried out, discovered that marketing research is highly significant in the development of new insurance products such as investment. Education and family protection products. The study concluded by recommending that more attention should be given to insurance marketing research because it is the information bank for marketing decisions.

 

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

An insurance product is the nucleuses of marketing efforts. A new product is a product that is introduced to the market for consumer attention, acquisition and use for the first time.

The development of a new product is not as easy as one may think.

The development and success of  new insurance product requires information.

The only means of obtaining these information is through insurance marketing research.

Marketing research is highly important in the success of new product irrespective of the nature of the product.

Insurance products are very intrinsic for this, marketing research is important in the survival and success of new insurance products introduced into the market.

Marketing research is important because the producer of the new insurance product must obtain information on how it will be developed, the features to be included, the contractual terms as well as the opinions of the consumer public concerning the new product.

The insurers also require information  on the profitability and viability of the said new product to be developed (Okonie, 2001).

Above all, even the idea of developing a new product in the insurance industry requires markting research.

After its development, sustaining it also requires marketing research to ascertain the needed strategies to achieve desired goals (Orji, 2002).

As a matter of fact, marketing research is very important in the survival of and development of new products. development of new product should employ marketing research to enable him/her to achieve desired goals objective.

1.2   STATEMENT OF THE PROBLEM

The purpose of insurance marketing research is to provide data needed for solving insurance marketing problems.

(Kotler, 2005). New product problem requires information to solve it.

However, most marketing firms and product developers, especially in the insurance industry ignores the significance of marketing research.

It is observed that most insurance firms do not sources for relevant information through marketing research before embarking on new product development projects. As a result, most insurance firms face liquidation e.g. Globe Insurance CO. Ltd., Rivbank Insurance Co, Destiny Insurance Co. Ltd. Etc.

Their new products did not stand the test of time and these recognized problem called for this research.

1.3   OBJECTIVES OF THE STUDY

The objectives of the study are as follow

  1. To ascertain what marketing research function is all about.
  2. To ascertain the process of developing new product in the insurance industry.

iii. To ascertain the various new products existing in the insurance industry.

  1. To ascertain the impact of marketing research in new product development especially in the insurance industry.

1.4   SIGNIFICANCE OF THE STUDY

This study is highly significant, it will help to disclose what marketing research is all about, its importance in insurance management as well as its impact in the development of products in the insurance industry.

In addition, the study is significant because it will serve as a reference material for researchers and scholars working in similar areas.

It will help to provide solution to how to tackle the rate of failures recorded in the insurance industry concerning new products development.

1.5 RESEARCH QUESTIONS

The research questions used or employed in the course of the study are as follows:

  1. Is marketing research relevant in the development of new insurance product.
  2. Does marketing research play any significant role in development of new insurance products.
  3. What is the impact of marketing research in the development of new product in the insurance industry.

1.6   HYPOTHESES

It is a conjectural or guess statement of relationship between two or more variables that need to be tested in order to obtain the tenacity of the statement.

  1. Ho: Marketing research does not play any significant role in the development of new insurance products.
  2. Hi: Marketing research plays a significant role in the development of new insurance products.

1.7   SCOPE OF THE STUDY

The scope of this study comprises all insurance companies operating in the metropolis of Port-Harcourt and some near by towns in Rivers State where Insurance companies’ offices and branches are located.

The scope also includes areas such as the meaning of marketing research, the problem of limitation of marketing research in the development of new products in the insurance industry.

The study is restricted to marketing research and its impact in new product development in the insurance industry.

1.8   LIMITATIONS OF THE STUDY

This study encountered certain short comings and they influenced the internal and external validities of the reeseach findings and generalization. These short comings include money, time and data.

Every money: the success of this research requires money but unfortunately the money available was not enough to conduct a more elaborate research.

Time: This is another factor that hindered the comprehensiveness of this study. There was not enough time to collect data or visit respondents. In view of that, questionnaires distributed were not fully retrieved.

1.9 DEFINITION OF TERMS

The terms used in this project work include:

New product Development: The task of coming up with a new product.

Insurance industry: Refers to insurers who are willing to bear risk and sell insurance products to those who are prepared to transfer their risks and are able to pay their fee called premium.

Impact: Roles, Contributions etc.

Data – Needed information

Market Research

Product

 

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