INFLUENCING FACTORS OF CUSTOMER’S DECISION ON PURCHASING LIFE INSURANCE INDUSTRY IN YANGON, MYANMAR

This is study on influencing factors of customer’s decision on purchasing life insurance in Myanmar. The objectives of this study are to identify the buying decisions of the consumer behaviors in life insurance policy and to analyze the influencing factors of customer’s buying decisions on life insurance policy in Yangon, Myanmar. For this study, the primary data were collected by the structured questionnaires that are delivered to the respondents who are existing policy holders of life insurance and lived in Yangon by using Simple Random Sampling (SRS). The method of research applied in this study is descriptive research method and mean score ranking is used to examine how customer behavior model influence on customer buying decision. To achieve the objectives, primary data were collected by interviewing with 100 respondents of life insured who live in Yangon till 2016-2017 FY by using structured Five-point Likert scale questionnaires. The determinant factors related with personal factor, cultural factor, social factor and psychological factor are identified and assessed with questionnaires. The study focus on the consumer behavior black box model which analyzes the cultural, social, personal and psychological factors effect on customer purchasing decision. The study found that socio-demographic factor and psychological factors mainly effect on customer buying decision. People factors mostly influence on customer buying decision followed by product factors while physical Evidence factors slightly influence on customer buying decision. The cultural and social factors moderately influence on decision making of the policy holders. According to the study, insurers need to emphasis the activities and programs for the awareness of life insurance and at the same time government needs to encourage the citizens to have life insurance coverage for life protection and saving. Moreover, more new products need to be created to need customer needs as the result from the study