| Abstract: | To be successful, organizations must look into their customer purchasing behavior since
customer behavior is dynamic will change through time due to different factors.Social factor,
cultural factor, personal factor and psychological factors are important for effective
understanding of customer purchasing behavior because many researches have shown that the
constructs of customer behavior and factors affecting of customer purchasing behavior has an
effect on customer purchasing behavior towards any product or service.The study was conducted
on the factors affecting customer purchasing behavior towards to life insurance on Nyala
Insurance. The main reason that initiates the researcher to conduct the study was, intending to
fill the literature gap related to the factors affecting customer purchasing behavior towards life
insurance and its challenges in the case company. More specifically this study served as
preliminary work or a stepping stone for further study on the issue. The general objective of this
study was to factors affecting customer purchasing behavior towards life insurance. It is more
significant for the insurance to know and identify gaps in customer purchasing behavior and
related practices. The design of study was descriptive and casual in nature. Primary data and
secondary data were used in this study. Since the total populations of customers were known, the
student researcher used convenience sampling techniques to collect the data using telegram
platform designed for this study due to the current Global Health Pandemic COVID 19.
Conveniently, the student researcher conducted the research by taking the sample determination
method developed by Cochran (1983).According to the method 74 customers were selected and
presented them with closed-ended questions. However unfortunately, 30 customers hadn’t the
questionnaires. And an interview was conducted with the manager.The techniques of analysis
used in this study are descriptive (frequency, percentage, mean and standard deviation) and
inferential analysis (regression correlation and multi-co linearity test).The findings show that
personal and psychological factors has more effect on customer purchasing behavior. All the
independent variables are directly related to customer purchasing behaviorparticularly in
NISCO and in general in insurance industry. The relationship between factors affecting
customer behavior and purchasing behavior is significant. Therefore, insurance should make the
whole system on work with customers, not in opposite of those factors affecting customer
purchasing behavior. And also they are expected to invest more on encouraging and retaining
their customers. |
