IMPACT OF INTERNET MARKETING ON INSURANCE SERVICE
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IMPACT OF INTERNET MARKETING ON INSURANCE SERVICE
ABSTRACT
People today expect rapid access to information due to technological advancements. In their hectic schedule, people prefer to make purchasing decisions quickly. Marketing managers at various firms use technology to identify the correct client for their various classes of products using the right techniques.
The internetization of marketing allows them to detect all of the factors that influence client decision making. This study examined consumers’ attitudes regarding several components of internet marketing for health insurance products. The study also investigates the changing nature of customer attitudes towards their demographic profile.
Chapter one
INTRODUCTION
1.1. Background of the Study
In recent decades, the internet has substantially altered the way people communicate, share information, and advertise their businesses. The World Wide Web allows us to participate in the global virtual marketplace as both consumers and business owners (Kothari and Saxena, 2004).
This results in a creative and effective marketing strategy that benefits both sellers and purchasers of any goods. In today’s technological age, digital marketing is essential for selling any product.
Digital marketing, or Internet marketing, has not grown more efficient than traditional marketing. However, effectiveness varies depending on the type of the items, target customers, market structure, and other factors.
According to PWC’s (2012) report titled “Life Insurance 2020: Competing for a Future” (Yoder, Rao, Bajowala, & Sunder, 2012), nearly half of respondents felt that online marketing has impacted their approach of selecting and purchasing insurance products.
The recent advancements in Big-Data Analysis, Search Engine Optimisation, Google Analytics, and other technologies have made digital marketing methods considerably more effective. N. Kink and T. Hess’s study demonstrates that customers prefer to use search engines over traditional sources of information (Kink & Hess, 2008, pp. 18-29).
According to a study of 12 Indian tyre I and tyre II markets, almost 40% of buyers conducted their research online before making a purchase choice.
Digital Marketing
Digital marketing is the concept of promoting a product (goods or services) using the internet (Hanson and Kalyanam, 2007). The notion is also known as web marketing, Internet marketing, e-marketing, e-commerce, or e-business. As the cost of using the internet decreases, an increasing number of people become users and gain digital communication skills.
They are connected to various social media platforms, and they are becoming increasingly technologically sophisticated in terms of gathering and comparing product information,
purchasing things, and using services. Corporates, whether private or public, have also adopted digital communication technology as a marketing medium.
This channel comprises websites, social networking sites, YouTube, online communications, email, mobile phones, and so on. The channels can identify target audiences and track various e-marketing campaigns (Salehi, Mirzaei, Aghaei, & Abyari, 2012).
Health Insurance Products and Digital Marketing
Insurance services, particularly health insurance services, are intangible, indivisible, heterogeneous, and perishable in nature, hence digital marketing of such services has a different effect than that of real products. G. Radha Krishna discusses the evolving scenario of the health insurance industry’s marketing methods in his book “Marketing of Insurance Services in India” (Radha Krishna 2008).
The paradigm shift in the nature of marketing from traditional agent-based marketing to e-marketing, as well as the digitalization of product information, is an emerging trend in both the private and governmental sectors.
1.2 Statement of Problem
The effectiveness of digital marketing on different tangible product categories such as bikes, cars, consumer durable products, fashion accessories, and many others has been analysed by different researchers in various parts of India and abroad,
but products such as health insurance policies, which are intangible, inseparable, heterogonous, and perishable in nature, have not been thoroughly researched, particularly in the context of the Indian health insurance sector.
The situation is more troubling and concerning when compared to what other emerging and industrialised countries have accomplished with their insurance businesses (Basil, 2011).
However, with all of the challenges listed above plaguing Nigeria’s insurance firm sub-sector, there is a need for strong marketing skills. This is because the globe has become a global village. The rise of the Internet, particularly Web 2.0, and social networks is challenging the levels of power and influence held by brand image agents.
With the incredible power of message dissemination on the Web, customer opinions, recommendations, and complaints are becoming increasingly important in shaping company image. As a result, brands are obviously bidirectional. Decisions are made based on more than just messages delivered by businesses to their customers, as technology makes it easier for individuals to communicate.
As a result, a transfer of power occurs between firms and their customers. Consumers rely heavily on recommendations from those who have used the product or service and shared their experiences on the internet when making purchasing decisions.
This phenomenon is gaining traction at an incredible rate, and for many buyers, sites like Tripadvisor and Ciao have already become vital pre-purchase resources. In this type of setting, effective management of the brand experience appears to be one of the most important criteria for brand success.
Only satisfied customers will provide us with positive recommendations in these virtual settings, which will favourably affect our consumers’ purchasing decisions when they consult these platforms.
Developing effective techniques for influence and communication on Web 2.0 and social networks is also a critical success factor in this competitive market. Unfortunately, many firms are still in denial and are failing to implement proactive Internet presence strategies.
Some allocate a portion of their communications budget to the Internet, but have no overall understanding of what the medium can give them or how an online presence must be linked with other brand messages. Too many businesses are still attempting to dominate public network debates about their brands, and too few are committing.
1.3 GOALS OF THE STUDY
The primary goal of the research is to investigate online marketing as a key driver of sales growth in insurance services in Lagos Metropolis.
The study’s sub-objectives are:
Investigate the association between various forms of internet marketing (email, search engine, online advertising, and blogs) and the improvement of insurance sales in the Lagos metropolis.
Examine the impact of internet marketing on the performance of insurance services in Lagos.
RESEARCH QUESTIONS:
What influence does internet marketing have on the growth of insurance sales in Nigeria?
What are the internet marketing challenges faced by insurance firms in Lagos, Nigeria?
RESEARCH HYPOTHESIS: There is no association between online marketing and increased sales of insurance services.
1.6 Justification for the Study.
Insurance services are critical to the economy of Lagos State in particular, as well as the whole Nigerian economy. The insurance industry contributes to the state’s GDP and serves as a platform for reducing unemployment rates by allowing citizens to be job owners and creators.
This study’s findings and policy recommendations are expected to benefit microfinance, insurance services, investors, business analysts, financial institutions, non-financial institutions, corporate stakeholders, and the government through its agencies such as the Ministry of Trade, Industry, Investment and Commerce. It will also benefit future researchers who wish to conduct studies in this area.
1.7 Scope and Limitations of the Study
The study looked at online marketing as a primary driver of increased insurance sales, with a focus on the Lagos metropolitan. Control, time, and money constraints were all encountered while carrying out the investigation.
Control Limitation- The researcher was only able to conduct the study in the Lagos metropolis due to the project supervisor’s orders.
Time Limitation- Given other academic responsibilities, the researcher had only a limited amount of time to conduct this study.
Financial Limitation- Due to a lack of funds, the researcher was unable to sample insurance companies throughout the metropolitan.
Despite these indicated restrictions, a thorough, high-quality, fact-finding research was conducted.
1.8 Definition of Terms
Marketing is the communication between a person (salesperson) and his real or prospective consumers with the goal of selling a product or service to them.
Internet marketing is the use of electronic devices and tools to communicate with existing or prospective clients of a company in order to sell them a product or service.
Sales are the exchange of a commodity or money for the price of goods and services.
Sales Improvement: This refers to a considerable improvement in the company’s sales.
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