CHAPTER IV

135

CHAPTER IV
PERCEPTION AND EXPECTATION OF THE POLICY HOLDERS
The insurance industry forms an integral part of the Indian financial
market, with insurance companies being significant institutional investors. In
recent decades, the insurance sector, like other financial services, has grown in
economic importance. This growth can be attributed to a number of factors
including rising income and demand for insurance, rising insurance sector
employment, and increasing financial intermediary services for policy holders.
A sound national insurance market is an essential characteristic of
economic growth. This is not surprising as the insurance industry forms a major
component of an economy by virtue of the amount of premiums it collects, the
scale of its investment, and, more fundamentally, the essential social and
economic role it plays by covering personal and business risks. By encouraging
these factors that promote insurance demand and aid financial development,
policymakers possess a strong tool to stimulate economic growth.
A number of foreign insurance companies have set up representative
offices in India and have also tied up with various Life Insurance companies. The
business environment is constantly changing and demand for adaptability among
the organizations tends to increase. Demands from customers, technological
development, change of value and globalization are the factors that drive the need
to change and develop an organization. It is hard to get advantages by quickly
adapting technology to product or service in an efficient manner. The ability to
handle organizations intangible assets such as service is of great importance to
reach success, then the ability to invest and manage tangible assets.

136

In the huge service sector, insurance sector is one of the most important
entities which has been growing relatively fast in India. At present there are
twenty three players in the Indian life insurance industry out of which Life
Insurance Corporation is one of the leading public companies, holds largest
number of policies in the world to suit different financial requirement of an
individual. With a greater choice and an increasing awareness, there is a
continuous increase in the customers expectations and they demand better
quality service. Therefore, to sustain in the market, service quality becomes a
most critical component of competitiveness for Life Insurance Corporation of
India.
Although, by providing quality services to its customers, the Corporation
can differentiate itself from other service firms and will able to improve its
profitability. This chapter measures the customers perception and expectation
towards service quality of Life Insurance Corporation of India.
4.1 PROFILE OF THE RESPONDENTS
Generally the level of perception and expectation of the respondents
varies according to their individual demographic variables such as, sex, age,
educational qualifications, experience and income. Therefore, the profile of the
respondents is given in the succeeding pages and on the basis of which the
analysis has been made in the study.
4.1.1 SEX-WISE DISTRIBUTION OF THE RESPONDENTS

In the study, the samples were selected at random which includes both
male and female customers of the Life Insurance Corporation of India in the
study area. The sex-wise distribution of the sample respondents in the study unit
is given in Table 4.1.

137

TABLE 4.1
SEX WISE DISTRIBUTION OF THE RESPONDENTS
Sex

No. of Respondent

Percentage

Male

219

60.83

Female

141

39.17

Total

360

100.00

Source: Primary data

It is observed from Table 4.1 that out of 360 respondents, the majority of
them are male (61 percent) and 39 per cent are female. The table also reveals that
female customers constitute a significant portion in the customer base of the Life
Insurance Corporation of India in the study area.
4.1.2 AGE WISE CLASSIFICATION OF THE RESPONDENTS

The samples should have different age groups so that exact situation may
be viewed through their opinion. Hence, the age-wise classification of the sample
respondents is given in Table 4.2
TABLE 4.2
AGE-WISE DISTRIBUTION
Age
Below 30 years
30 - 40 years
40 - 50 years
Above 50 years
Total

No. of Respondent

Percentage

14

03.89

94

26.11

185

51.39

67

18.61

360

100.00

Source: Primary data

138

Table 4.2 shows that out of 360 respondents 51 per cent of the
respondents are in the age group of 40 50 years followed by nearly 26 per cent
of the respondents who are in the age group of 30-40 years, about 19 per cent of
the respondents fall in the age group of above 50 years and a small portion of the
respondents (4 per cent) are below 30 years of age. From the table it is
understood that the study unit is dominated by the customers who are in the age
group of 40 - 50 years.
4.1.3 EDUCATIONAL QUALIFICATIONS

The perception and expectation of customers about service quality may

differ based on their educational qualifications. Therefore, the educational
qualifications of the respondents are given in table 4.3.
TABLE 4.3
EDUCATIONAL QUALIFICATIONS
Educational qualifications

No. of Respondent

Percentage

Upto Higher Secondary level

47

13.06

Diploma/ Certificate Course

19

05.28

Undergraduate

224

62.22

Postgraduate

70

19.44

360

100.00

Total
Source: Primary data

Table 4.3 shows that nearly 62 per cent of the respondents are
undergraduate, 19 per cent of the respondents are postgraduate, 13 per cent of the
respondents have studied upto higher secondary education and 5 per cent of the
respondents have studied diploma/certificate courses. It is noteworthy to mention
that more than three-fourth of the respondents are graduates, which shows the

139

customer base of the study unit consists of highly educated customers in the study
area.
4.1.4 OCCUPATION-WISE DISTRIBUTION OF THE RESPONDENTS

The occupation-wise distribution of the customers in the study unit is

shown in table 4.4.
TABLE 4.4
OCCUPATION OF THE RESPONDENTS
Occupation

No. of Respondent

Percentage

Employees

213

59.17

Agriculturalists

99

27.50

Businessmen

36

10.00

Housewives

12

03.33

360

100.00

Total
Source: Primary data

Table 4.4 shows that the majority of the respondents (59.17 per cent) is
working in the private and government services and 28 per cent of the
respondents are agriculturalists. 10 per cent and 3 per cent of the respondents are
businessmen and housewife respectively. It can be inferred from the table that in
the customer base of study unit in the study area mainly consists of employees
and agriculturalists.

140

4.1.5 INCOME-WISE DISTRIBUTION OF THE RESPONDENTS

The income-wise distribution of the customers in the study unit is given in

table 4.5.
TABLE 4.5
INCOME-WISE DISTRIBUTION
Monthly Income ( )

No. of Respondent

Percentage

62

17.22

201

55.84

Above 30,001

97

26.94

Total

360

100.00

Below 20,000
20,001 30,000

Source: Primary data

Table 4.5 reveals that the majority of the respondents monthly income is
in between 20,001 - 30,000 and 27 per cent of the respondents monthly income
is above

30,000. The respondents whose monthly income is below

20,000

constitute 17 per cent of the total respondents. It can be inferred from the table
that most of the policyholders monthly income is more than

20,000 in the

study area.
4.2 PERCEPTION AND EXPECTATION ABOUT SERVICE QUALITY
The SERVQUAL model is used to assess consumers expectations and
perceptions regarding service quality in the selected study unit. Both expectations
and perceptions are measured using a 7 point scale to rate their level of agreement
or disagreement (1 strongly disagree and 7 strongly agree), on which the higher
numbers indicate a higher level of expectation or perceptions.

141

Perceptions are based on the actual service they receive from Life
Insurance Corporation of India while expectations are based on past experiences
and information received about life insurance industry. Service quality scores are
the difference between the perception and expectation scores (P-E) with a
possible range of values from -6 to +6 (-6 stands for very dissatisfied and +6
means very satisfied). The quality score measures the service gap or the degree to
which expectations exceed perceptions. The more positive the P-E scores, the
higher the level of service quality leading to a higher level of customer
satisfaction. Satisfaction and service quality are both treated together as functions
of a customers perception and expectations. If expectation and perception are
equal, service quality is satisfactory.
4.3 QUALITY PERCEPTIONS ON TANGIBLES
Tangibles involve the appearance of psychical facilities, equipment,
personnel and communication materials. To study the quality perceptions of
customers on the tangibles, four parameters are used. The perception and
expectation of the respondents about tangibles is shown in table 4.6.

142

TABLE 4.6
PERCEPTION AND EXPECTATION ON TANGIBLES

S.No

Parameters

LIC has upto-date

equipment.
LICs
physical
02 facilities are visually
appealing
LIC's employees are
03 well
dressed
and
appear neat
The appearance of the
physical facilities of
04 the LIC is in keeping
with the type of
services provided
Overall (N=360)
Source: Primary data
01

Perception
Expectation
Mean Mean Mean Mean
Service
Score Score Score Score Quality Score
(%)
(%)
4.90

70.00

6.50

92.86

-1.60

3.22

46.00

5.87

83.86

-2.65

5.74

82.00

5.23

74.71

0.51

3.11

44.43

6.58

94.00

-3.47

16.97

60.61

24.18

86.34

-7.21

Table 4.6 reveals the mean score obtained by the respondents for service
quality in respect of tangibles. The average score of total expectations is 24.18
and the overall perception score is 16.97. The score shows a 7.21 difference. It
implies that the expectations are higher than the perceived service quality. The
respondents have a negative gap score for all the parameters except the parameter
LIC employees are well dressed and appear neat. In this parameter perceptions
of the customers are close to their expectations.
4.4 QUALITY PERCEPTION ON RELIABILITY
The reliability dimension of service quality is an important service quality
dimension as it provides an insight as to the ability of a Life Insurance
Corporation of India to perform promised service dependably and accurately
from the policyholders point of view. To assess the perception of the
respondents in so far as the reliability is concerned, five parameters are used.

143

The perception and expectation of the respondents on reliability is

analyzed in Table 4.7.
TABLE 4.7
PERCEPTION AND EXPECTATION ON RELIABILITY
S.No

Parameters

When LIC promises to

do something by a
certain time, it does so.
When
policyholders
02
have problems, the LIC
is
sympathetic
and
reassuring
The LIC performs the
03
service right the first
time
The LIC provides its
04
services at the time it
promises to do so.
The LIC keeps its
05
records accurate.
Overall (N=360)
Source: Primary data
01

Perception
Mean Mean
Score Score
(%)

Mean
Score

Expectation
Mean Service
Score Quality
(%)
Score

2.78

39.71

6.45

92.14

-3.67

3.11

44.43

6.57

93.86

-3.46

2.89

41.29

6.68

95.43

-3.79

3.27

46.71

6.34

90.57

-3.07

6.28

89.71

5.97

85.29

0.31

18.33

52.37

32.01

91.46

-13.68

As per table 4.7 the average score for overall expectations and perception
about reliability was 18.33 and 32.01. The average service quality score was
-13.68, it is understood from the table that there is a gap in service quality with
regard to reliability. The respondents have secured negative gap score for all the
parameters except the parameter LIC keeps its records accurate. The
respondents have low perceived service quality for the parameter when LIC
promises to do something by a certain time, it does so followed by the parameter
LIC performs the service right the first time. Therefore, it can be inferred from
the table that the customers are not at all satisfied with the service quality with
regard to reliability.

144

4.5 QUALITY PERCEPTION ON ASSURANCE

Assurance means competence and courtesy of employees and their ability
to convey trust and confidence. This category includes this measured component
of competence, courtesy, credibility and security. To study the perceptions on
assurance as a quality dimension four parameters are used. The perception and
expectation of the respondents on assurance is analyzed in table 4.8.
TABLE 4.8
PERCEPTION AND EXPECTATION ON ASSURANCE

S.No

Parameters

The customer can trust

employees of the LIC
The customer feels safe
02
in transactions with LIC's
employees.
Employees of the LIC are
03
polite.
Employees get adequate
04
support from LIC to do
their job well.
Average (N=360)
Source: Primary data
01

Perception
Mean
Mean
Score
Score
(%)

Expectation
Mean Service
Mean
Score Quality
Score
(%)
Score

3.57

51.00

5.25

75.00

-1.68

4.28

61.14

6.53

93.29

-2.25

2.16

30.86

6.78

96.86

-4.62

3.34

47.71

6.26

74.00

-2.92

13.25

47.32

24.82

88.64

-11.57

Table 4.8 shows overall expectations of the customers in the service

quality dimension of assurance at a mean score of 24.82. Their perceptions show
mean score at 13.25. The difference between expectation and perception was
calculated to 11.57. The difference was calculated for each statement to -1.68, 2.25, -4.62 and -2.92. The negative gap score was found in all the parameters. It
is inferred from the table that the policyholders do not think that their overall
expectations are fulfilled within the service quality dimension of assurance.

145

4.6 QUALITY PERCEPTION ON RESPONSIVENESS

Responsiveness means willingness to help customers and to provide
prompt service, while capturing the notion of flexibility and the ability to
customize the service to customer needs. To assess the responsiveness dimension
of service quality, four parameters are considered. The perception and
expectation of the respondents on responsiveness is shown in table 4.9.
TABLE 4.9
PERCEPTION AND EXPECTATION ON RESPONSIVENESS

S.No

Parameters

Perception
Mean Mean
Score Score
(%)

Employees at LIC tell

customer exactly when 3.69
services will be performed
Employees at LIC give
02 prompt
service
to 2.58
customers
Employees at LIC are
03 always willing to help the 2.86
customers.
Employees at LIC are
04 never too busy to respond 3.11
to customer request
Average (N=360)
12.24
Source: Primary data
01

Mean
Score

Expectation
Mean Service
Score Quality
(%)
Score

52.71

5.68

81.14

-1.99

36.86

6.82

97.43

-4.24

40.86

6.94

99.14

-4.08

44.43

5.81

83.00

-2.70

43.71

25.25

90.18

-13.01

As per table 4.9, the expectation means score obtained by all the sample
respondents for service quality with regard to responsiveness was 25.25 while
their perception show mean of 12.24. The difference between expectation and
perception is calculated to -13.01. At each statement the differences are
calculated to -1.99, -4.24,

-4.08, and -2.70. There is a negative gap in service

quality for all the four parameters. The high gap score was found in the statement
Employees at LIC give prompt service to policyholders followed by the statement
Employees at LIC are always willing to help the policyholders.
146

The policyholders have low perception about the service quality in

relation to responsiveness and there is a negative gap between their expectation
and perception about responsiveness. This result shows that the policyholders are
not at all satisfied with the quality described in the responsiveness.
4.7 QUALITY PERCEPTION ON EMPATHY
Empathy represents the provision of caring individualized attention to
policyholders. It includes access, communication and understanding the
policyholders. Empathy as a quality dimension is measured using five parameters
as shown in table 11. The perception and expectation of the respondents of
empathy are shown in table 4.10.
TABLE 4.10
PERCEPTION AND EXPECTATION ON EMPATHY

S.No

Perception
Expectation
Mean Mean Mean Mean
Score Score Score Score
(%)
(%)

Parameters

Employees of the LIC should

01
give individual attention to
their customers
The LIC has operating hours
02
convenient
for all
its
customers.
LIC
employees
should
03
understand the specific needs
of their customers.
The LIC has customer best
04
interest at heart.
The LIC has excellent
05
complaint handling system
Average (N=360)
Source: Primary data

Service
Quality
Score

3.63

51.86

5.67

81.00

-2.04

4.26

60.86

5.39

77.00

-1.13

2.54

36.29

5.96

85.14

-3.42

3.11

44.43

6.07

86.71

-2.96

2.94

42.00

6.25

89.29

-3.31

16.48

47.09

29.34

83.83

-12.86

147

Table 4.10 shows the perception and expectation score obtained by the
respondents for service quality in respect of empathy. The mean expectation
score achieved by the respondents for all the five statements was 29.34 while the
perception score was 16.48, the difference mean score of -12.86 was service
quality gap in respect of empathy. The respondents have secured the expectations
mean score of more than 5, which indicates that they are having high
expectations from the study unit with individual attention to customers, operating
hours convenient for all its policyholders, understand the specific needs of the
policyholders, policyholders best interest at heart and complaint handling system.
The respondents have secured low perception for the all the statement and there is
a gap between their expectations and perceptions. Therefore, it can be inferred
from the table the service quality with regard to empathy of the study units is not
upto the expectations of the policyholders.
4.8 OVERALL PERCEPTION ON SERVICE QUALITY
The summary of policyholders' perception, expectations and service
quality scores for all the service quality dimensions such as tangibles, reliability,
assurance, responsiveness, and empathy is analyzed in table 4.11.

148

TABLE 4.11
OVERALL PERCEPTION ON SERVICE QUALITY

Tangibles

Perception
Mean
Mean
Score
Score
(%)
16.97
60.61

Expectation
Mean
Service
Mean
Score
Quality
Score
(%)
Score
24.18
86.34
-7.21

Reliability

18.33

52.37

32.01

91.46

-13.68

Assurance

13.25

47.32

24.82

88.64

-11.57

Responsiveness

12.24

43.71

25.25

90.18

-13.01

Empathy

16.48

47.09

29.34

83.83

-12.86

Average (N=360)

77.27

50.18

135.60

88.06

-58.33

Dimension

Source: Primary data

Table 4.11 shows the difference between policyholders expectations and
perceptions of the service quality provided by the study unit in the study area.
Out of a maximum score of 154, the average expectation and perception
score obtained by the respondents for overall service quality was 135.60 and
77.27. The difference between expectation and perception score was -58.33,
which indicates a wide service quality gap perceived by the respondents.
The highly perceived Service Quality Factors among the customers is
Reliability since its mean score is 18.33. The second Service Quality Factor
perceived by the customer's is Tangibles since their mean score is 16.97. The next
three Service Quality Factors perceived by the customers is Empathy, Assurance
and responsiveness since their mean scores are 16.48, 13.25 and 12.24
respectively. However, the highest negative gap score was found in reliability
(mean score of --13.68) followed by Responsiveness (mean score of -13.01).
Empathy, Assurance and Tangibles was -12.86, -11.57 and -7.21 respectively.

149

Table further reveals that the respondents have secured negative mean gap
score for all five service quality dimensions such as Tangibles, Reliability,
Responsiveness, Assurance and Empathy. Therefore, it can be inferred from the
table that the policyholders have high expectation whereas their perceived low
towards the quality of service provided by the study unit. The insurance services
provided by the Life Insurance Corporation of India is not upto the expectations
of policyholders in the study area. The overall perception of the policyholders
about service quality is also given in figure 4.1.

150

FIGURE 4.1
OVERALL PERCEPTION ON SERVICE QUALITY

140
120
100
80

Mean Score

60
40
20
0
-20
-40
-60

gi
an

e
bl

b
lia
Re

t
ili

y
s
As

an
ur

ce
o
sp
Re

i
ns

s
ne
ve

pa
Em

y
th
er
Av

e
ag

=3
(N

)
60

Service Quality Dimension

Perception Mean Score

Expectation Mean Score

151

Service Quality Score

4.9 LEVEL OF PERCEPTION

Level of perception after using the insurance service has been examined
to find out the clearer picture regarding their status on the basis of five
parameters i.e. Tangible, Reliability, Assurance, Responsiveness and Empathy.
The level of perception of the respondents regarding service quality is
assumed to be normally distributed. The level of perception of the respondents is
divided into three categories, i.e. below average, average and above average
levels, which have been defined as Low, Medium and High level of perception
respectively. The lower and upper limits of average level have been calculated
with the help of the following formula:
Lower limit of average level = Mean - 1 Standard deviation
The upper limit of average level = Mean + 1 Standard deviation
Source: Dr. A.B.Bhatnagar; Measurement & Evaluation, P. 116-120
The level of perception of the various service quality dimensions is shown
in the following tables.
4.9.1 LEVEL OF PERCEPTION ABOUT TANGIBLES

The level of perception of the policyholders about the service quality

dimension of tangibles is analyzed in table 4.12.
TABLE 4.12
LEVEL OF PERCEPTION ABOUT TANGIBLES
Level of perception

No. of Respondents

Percentage

Low

196

54.45

Medium

129

35.83

High

35

09.72

360

100.00

Total
Source: Primary data

152

Table 4.12 depicts the customers perception level towards service quality
in respect of tangibles.

About 54.45 per cent of the respondents have low

perception and 36 percent of the respondents have moderate level of perception.

About 10 per cent of the respondents have perceived high level towards service
quality with regard to tangibles. Therefore, it can be inferred from the table that
the majority of the customers has a low perception towards the appearance of
physical facilities, equipment, personnel dress, communication materials, the
LICs outward appearance, exterior design, location, accessibility and all kinds of
tools that are used for providing service in Life Insurance Corporation of India in
the study area.
4.9.2 LEVEL OF PERCEPTION ABOUT RELIABILITY
The level of perception of the respondents about the service quality
dimension of reliability is shown in table 4.13.
TABLE 4.13
LEVEL OF PERCEPTION ABOUT RELIABILITY
Level of perception

No. of Respondents

Percentage

Low

222

61.67

Medium

89

24.72

High

49

13.61

360

100.00

Total
Source: Primary data

It is understood from the table 4.13 the majority of the respondents

perceived low, about one fourth of the respondents perceived moderate and 14
per cent of the respondents perceived high level of service quality in relation to
reliability. It is inferred from the table that the study unit fails to provide services
up to the expectations of the customers with regard to reliability.

153

4.9.3 LEVEL OF PERCEPTION ABOUT ASSURANCE

Table 4.14 shows the level of perception of the respondents about one of
the service quality dimension of assurance.
TABLE 4.14
LEVEL OF PERCEPTION ABOUT ASSURANCE
Level of perception

No. of Respondents

Percentage

Low

205

56.94

Medium

108

30.00

High

47

13.06

360

100.00

Total
Source: Primary data

Table 4.14 shows the majority of the respondents have a low level
perception about the service quality dimension of assurance followed by 30 per
cent of the respondents have moderate level of perception and 13 percent of the
respondents have a high level of perception about assurance. It can be inferred
from the table that the majority of the policyholders perceives poor service
quality towards the LICs capability to deliver the service, specifically in terms of
the knowledge, politeness and trustworthiness of the employees.
4.9.4 LEVEL OF PERCEPTION ABOUT RESPONSIVENESS
The level of perception of the respondents about the service quality
dimension of responsiveness is analyzed in table 4.15.

154

TABLE 4.15
LEVEL OF PERCEPTION ABOUT RESPONSIVENESS
Level of perception

No. of Respondents

Percentage

Low

237

65.83

Medium

76

21.11

High

47

13.06

360

100.00

Total
Source: Primary data

Table 4.15 reveals that the majority of the respondents have a low level of
perception, 21 percent of the respondents have moderate and 13 percent of the
respondents have a high level of perception about the service quality dimension
of responsiveness. Therefore, it can be presumed from the table that the
policyholders perceived poor service quality towards Life Insurance Corporation
towards capability to respond to and satisfy the policyholders wishes in the study
area.

155

4.9.5 LEVEL OF PERCEPTION ABOUT EMPATHY

The level of perception about the service quality dimension of empathy is
shown in table 4.16.
TABLE 4.16
LEVEL OF PERCEPTION ABOUT EMPATHY
Level of perception

No. of Respondents

Percentage

Low

218

60.67

Medium

117

32.33

High

25

07.00

360

100.00

Total
Source: Primary data

It is understood from the table 4.16 that nearly 61 per cent of the
respondents perceived low service quality followed by nearly 32 per cent
perceived moderate service quality and a small portion of the respondents
perceived high service quality with regard to empathy. Therefore, it can be
inferred from the table that the most of the policyholders perceive poor service
quality towards the Life Insurance Corporations willingness and capability to
respond to individual policyholders desires.
4.9.6 LEVEL OF PERCEPTION ABOUT OVERALL SERVICE QUALITY
The level of perception of the respondents about overall service quality
provided by the Life Insurance Corporation in the study area is given in the table
4.17.

156

TABLE 4.17
LEVEL OF PERCEPTION ABOUT OVERALL SERVICE QUALITY
Level of perception

No. Of Respondents

Percentage

Low

196

54.44

Medium

114

31.67

High

50

13.89

360

100.00

Total
Source: Primary data

Table 4.17 shows that about 54 per cent of the respondents perceived low
service quality followed by nearly 32 per cent of the respondents perceived
moderate and 14 per cent of the respondents perceived high level of service
quality. Therefore, it can be inferred from the table that the majority of the
policyholders perceives poor service quality of overall service quality of the Life
Insurance Corporation of India in the study area. The overall perception of the
respondents towards service quality is also depicted in figure 4.2.

157

FIGURE 4.2
LEVEL OF PERCEPTION ABOUT OVERALL SERVICE QUALITY

200

196

No. of Respondents

180
160
140

114

120
100
80

50

60
40
20
0
Low

Medium
Level of Perception

158

High

4.10 GAP ANALYSIS

The Gap Analysis is a technique used to identify the Gap - the difference
between the level of perception and level of expectation on the various service
quality dimensions For this analysis t- test is employed to find whether the Gap
obtained is significant or not.
Null hypothesis
There is no significant difference in the mean scores between the level of
perception and the level of expectation (GAP) on the various service quality
dimensions.
TABLE 4.18
GAP ANALYSIS
Service Quality Dimensions

Gap

t-value

Result

Tangibles

-7.21

2.51

*Significant

Reliability

-13.68

4.08

**Significant

Assurance

-11.57

5.18

**Significant

Responsiveness

-13.01

8.02

**Significant

Empathy

-12.86

7.69

**Significant

Overall perception and expectation

-58.33

5.36

**Significant

**Significant at 5% level and 1% level, *Significant at 5% level

Table 4.18 reveals that the calculated t-value is greater than the tabulated
value. Therefore, the null hypothesis is rejected, hence, it can be concluded there
is a significant difference in the mean scores between the level of perception and
the level of expectation (GAP) on the service quality dimensions tangibles,
reliability, Assurance, Responsiveness and Empathy.

159

4.11 CORRELATION COEFFICIENTS BETWEEN VARIABLES

In order to find out whether there is any significant association between
perceptions of the respondents about the service quality dimension and overall
service quality, the correlation coefficient is used to test the following hypothesis.
Null hypothesis
There is no positive relationship between perceived value of the service
quality dimension such as tangible, reliability, assurance, responsiveness and
empathy and assurance and perceived value of overall service quality.
The test statistic used to test the null hypothesis is
r
t=

Sqrt[(1r )/(N2)]
2

160

TABLE 4.19
CORRELATION COEFFICIENTS BETWEEN VARIABLES AND DESCRIPTIVE STATISTICS
Mean

SD

77.27

2.58

Overall service
Quality
1.00

16.97

1.29

0.98**

1.00

Reliability

18.33

1.47

0.97**

0.91**

1.00

Assurance

13.25

0.88

0.99**

0.97**

0.98**

1.00

Responsiveness

12.24

0.47

0.95**

0.88**

0.99**

0.96**

1.00

0.99**

0.96**

0.99**

0.93**

Variables
Overall
quality
Tangible

service

0.99**
16.48 0.67
The correlation value is significant both at **p<0.05 and p<0.01,
Empathy

Tangible

161

Reliability

Assurance

Responsiveness

Empathy

1.00

Table 4.26 shows the results of testing the relationship between service
quality features and perceived value. The outcomes of testing the relationship
display that tangible, reliability, assurance, responsiveness and empathy is
positively and significantly related to the overall perceived value of service
quality, therefore the hypothesis is supported. These statistical results show that
the service quality characteristics are important antecedents of perceived value in
the organizational samples.
4.12 DEMOGRAPHIC VARIABLES AND LEVEL OF PERCEPTION
The level of perception overall service quality in the study unit in
accordance with individual demographic variables such as gender, age, education,
occupation, and income is analyzed and presented in the following tables.
4.12.1 SEX AND LEVEL OF PERCEPTION

The level of perception about overall service quality and the sex of the
respondents is shown in table 4.20.
TABLE 4.20
SEX AND LEVEL OF PERCEPTION

Sex

No. of Respondents
Low

Medium

High

146
42
31
(74.49)
(36.84)
(62.00)
50
72
19
Female
(25.51)
(63.16)
(38.00)
196
114
50
Total
(100.00)
(100.00)
(100.00)
Source: primary data, figure in the bracket percentage of the total.
Male

Total
219
(61.83)
141
(39.17)
360
(100.00)

Table 4.20 shows the sex-wise distribution of the respondents and their
level of perception about service quality. Out of 196 respondents who perceived
low level of service quality nearly three-fourth and one-fourth of the respondents
are male and female.
162

Among the respondents who perceived moderate level of service quality,

the majority of them female and 37 per cent of the respondents are male. Out of
42 respondents who perceived a high level of service quality about 62 per cent of
the respondents are male and 38 per cent of the respondents are female. It is
inferred from the table that the male policyholders perceive poor service quality
than that of female policyholders about the service quality of the LIC in the study
area.
4.12.2 AGE AND LEVEL OF PERCEPTION

The age wise distribution of the respondents and their level of perception
about overall service quality is shown in table 4.21.
TABLE 4.21
AGE AND LEVEL OF PERCEPTION

No. of Respondents
Low
Medium
High
08
04
02
Below 30 years
(04.08)
(03.51)
(04.00)
47
29
18
30 - 40 years
(23.98)
(25.44)
(36.00)
115
48
22
40 - 50 years
(58.67)
(42.11)
(44.00)
26
33
08
Above 50 years
(13.27)
(28.95)
(16.00)
196
114
50
Total
(100.00)
(100.00)
(100.00)
Source: primary data, figure in the bracket percentage of the total.
Age (Years)

Total
14
(03.89)
94
(26.11)
185
(51.39)
67
(18.61)
360
(100.00)

Table 4.21 depicts the age and level of perception. About 59 per cent of
the respondents belong to the age group of 40 50 years has low level perception
followed by 24 per cent of the respondents belong to the age group of 30-40
years. About 13 per cent of the respondents fall in the age group of above 50
years and 4 per cent of the respondents belong to the age group of less than 30
years.

163

Out of 114 respondents who have exposed moderate perception, as much

as 42 per cent of the respondents were in the age group of above 40-50 years
have a medium level of perception. Among the respondents who have enjoyed a
high level of perception, nearly 44 per cent of the respondents were in the age
group of 40-50 years have a high level of perception. Therefore, it can be
inferred from the table that the customers in the age group of 30-50 years
perceive poor service quality of the study unit in the study area.
4.12.3 EDUCATIONAL QUALIFICATIONS AND LEVEL OF PERCEPTION

The educational qualifications of the respondents and their level of

perception about the overall service quality of the study unit is shown in table
4.22.
TABLE 4.22
EDUCATIONAL QUALIFICATIONS AND LEVEL OF PERCEPTION
No. of Respondents

Educational
Qualifications

Low

Medium

Up to higher
Secondary level
Diploma/
Certificate course

High

25
13
09
(12.76)
(11.40)
(18.00)
08
06
05
(04.08)
(05.26)
(10.00)
137
57
30
Undergraduate
(69.90)
(50.00)
(60.00)
26
38
06
Postgraduate
(13.27)
(33.33)
(12.00)
196
114
50
Total
(100.00)
(100.00)
(100.00)
Source: primary data, figure in the bracket percentage of the total.

Total
47
(13.06)
19
(05.28)
224
(62.22)
70
(19.44)
360
(100.00)

The table 4.22 depicts the educational qualifications and their level of
perception about service quality. The respondents who perceived low level of
perception, the majority of them are graduates and 13 percent are postgraduates,
which indicate that the graduate and postgraduate policyholders perceive poor
service quality of the study unit in the study area.
164

4.12.4 OCCUPATION AND LEVEL OF PERCEPTION

The occupation wise distribution of the respondents and their level of

perception are shown in table 4.23.
TABLE 4.23
OCCUPATION AND LEVEL OF PERCEPTION

Occupation

No. of Respondents
Low

Medium

High

116
71
26
(59.18)
(62.28)
(52.00)
52
28
19
Agriculturalists
(26.53)
(24.56)
(38.00)
21
12
03
Businessmen
(10.71)
(10.53)
(06.00)
07
03
02
Housewives
(03.57)
(02.63)
(04.00)
196
114
50
Total
(100.00)
(100.00)
(100.00)
Source: primary data, figure in the bracket percentage of the total.
Employees

Total
213
(59.17)
99
(27.50)
36
(10.00)
12
(03.33)
360
(100.00)

Table 4.23 shows out of 196 respondents who perceived low level of
perception the majority of them are employees followed by agriculturalists. An
insignificant portion of the businessmen and housewives are having low level of
satisfaction. It is inferred from the table that the employees and agriculturists
perceive poor service quality of the study unit in the study area.
4.12.5 INCOME AND LEVEL OF PERCEPTION

The income of the respondents and their level of perception about the
overall service quality of the study unit in the study area is analyzed in table 4.24.

165

TABLE 4.24
INCOME AND LEVEL OF PERCEPTION
Monthly Income ( )

No. of Respondents
Low

Medium

High

33
20
09
(16.84)
(17.54)
(18.00)
137
51
13
20,001 30,000
(69.90)
(44.73)
(26.00)
40
35
06
Above 30,001
(20.41)
(30.70)
(12.00)
196
114
50
Total
(100.00)
(100.00)
(100.00)
Source: primary data, figure in the bracket percentage of the total.
Below 20,000

Total
62
(17.22)
201
(55.83)
97
(26.94)
360
(100.00)

Table 4.24 reveals that out of 196 respondents who perceived low level of
perception, the majority of the respondents monthly income is

20,001-30000.

About 20 per cent of the respondents monthly income is above 30,000 and 17
per cent of the respondents monthly income is less than

20,000. Therefore, it

can be inferred from the table that the customers whose monthly income is above
20,000 perceive poor service quality of the study unit in the study area.
To find out whether there is a significant difference between demographic
variables such as sex, age, educational qualifications, occupation and income and
level of perception of the respondents about service quality, a null hypothesis is
framed and test with the help of ANOVA test.
Null hypothesis
There is no significant difference between demographic variables (sex,
age, educational qualifications, occupation and income) and level of perception
about service quality.
The result is given in table 4.25.

166

TABLE 4.25
ANOVA TEST
Variable
Sex and level
of perception
Age and level
of perception
Educational
qualification
and level of
perception
Occupation
and level of
perception
Income
and
level
of
perception

Df

Between groups
Within groups
Total
Between groups
Within groups
Total
Between groups
Within groups
Total

Sum of
Squares
3679
3643
7322
1839.5
5458.5
7298
1839.5
8770.5
10610

Between groups
Within groups
Total
Between groups

1839.5
7152.5
8992
2452.66

2
9
11
2

Within groups

3245.33

540.89

Total

5698.00

2
3
5
2
9
11
2
9
11

Mean
square
1839.50
1214.33

Result

1.51

Not
significant

919.75
606.50

1.52

Not
significant

919.75
974.50

0.94

Not
significant

919.75
794.72

1.16

Not
significant

1226.33

2.27

Not
significant

Table 4.25 shows that gender, age, educational qualification, occupation

and income have no significant difference in perception of the respondents about
service quality, which means that the customers are not differently perceived by
females and males, age, educational qualifications, occupation and income.
To conclude, from the results obtained, it is seen that customers perceived
service quality is poor in all dimensions. In this regard, all the dimensions show a
gap between perceived service and expected service and this therefore means that
service quality of the life insurance corporation of India in the study area needs to
make improvements in all dimensions in order to close gaps that could lead to
increased policy holders perception about service quality. The next chapter
analyzes the impact of service quality on policyholder satisfaction with insurance
service of the study unit in the study area.

167