Convince consumers that currently do not own life insurance that they should have a life insurance policy, and encouraging existing policyholders with inadequate levels of coverage to increase their coverage. Which stage of the decision-making process is most relevant here? How would you proceed in deciding what the company should do?

   Convince consumers that currently do not own life insurance that they should have a life insurance policy, and encouraging existing policyholders with inadequate levels of coverage to increase their coverage.  Which stage of the decision-making process is most relevant here?  How would you proceed in deciding what the company should do?   

   It is advisable for the people to buy insurance as it provides protection against unfortunate events in life such as illness, accident, disability or death thus ensuring family and beloved are well protected. (Protection 2009)

The company should posses of different package of insurance to segment to market due to the needs of individual thru demographic analysis. The demographics analysis is further segment to age structure of markets. It is important for the company to understand customers’ lifecycle stage and their age to target on their customer.

For bachelor stage’s people, they will tend to purchase insurance only for themselves, especially to those people who love to travel like Experiences in VALS.  Their income is very important as if they lose the job; they are unable to afford their living expenses. They will need income protection plan that is designed to safeguard their earning against uncertain changes. (PaySecure 2010)

For the newly married couples, they are mostly falls into the category of thinkers in VALS. They are well educated and actively seek out information in the decision-making process. (Thinkers 2009-2010) Thinkers look for durability, function ability and value in the product before they purchase. (Thinkers 2009-2010)So, counter on this point, the company should introduce renewable and convertible terms which offer a longer term. (ykconsultancy 1999-2006) There will be income replacement to their beneficiaries when they die, which is most probably the partner in their marriage.

Furthermore, the one with the full nest family will be falls in Makers of VALS. They are willing to buy insurance to protect their children from misfortune. They want the assurance that should accidents occur, they will be financially prepared to handle it.

While, the empty nest couples will be falls in the Believers of VALS. In their age, they are mostly suitable for medical coverage or health coverage.

Some of the customer does not believe in insurance has any value and consider spending money on it to be a waste. They are having a mindset that, “it won’t happen on me”, self-insurance plan. The risk of their self is ignored. (Crump 2009)Moreover, many people misunderstand the risk they might be facing. For example, car owners will mostly buy accident protection instead of life insurance as they doesn’t aware of the rate of die of an illness is far higher than by an accident. (Robert Riegel 1921)Another problem is, sometimes people know it is necessary to buy insurance, but they just don’t trust the insurance company will pay the claims to them when the unfortunate event happens. The company must combat misperceptions about the customer that makes a brand unattractive.

This is where the company should increase the number of sales assistant to educate the customer about the prestige of the company and they should trust on our company .Their potential risk and how insurance can be helpful should be told. (Crump 2009) This may increase the awareness of the company towards the customers. Consumer is unlikely to purchase a product when they lack information about use. Besides, the most important information must be providing to customer is -what is for them. They are concern about what benefit can they get by buying this insurance.

The company should strengthen their advertising regarding to the company product especially those products that are very common and brings more benefits to the customer. The company should communicate more to the customer to know what they want and try to package it out as a product to satisfy their needs and wants. Promotion is critical to make consumers aware of the benefits and how it will satisfy their needs, also communicate pricing and location where consumer can obtain.

2.      There are also many existing policyholders with insufficient levels of coverage. It is we, as the consultant to advise them to increase their coverage to utilize the advantage of insurance that suits them by paying a top up fees which is more affordable than purchasing another insurance plan that could be covered in existing insurance.

In the decision-making process, need recognition stage is most relevant here as the existing policyholders need to realize should they further accept the offer of incensement on the coverage of current insurance, which levels of policy coverage that they should have, has not been purchased. When the policyholders realize that they do not have enough coverage, they will tend to purchase it. Sometimes, they do not aware of the need to further increase their coverage because they will think that it is not necessary and it is a waste of money.

This is where marketers intervene and convince them. They need to influence how consumers perceive their current state by changing consumers’ decision with a more adequate top up coverage it will then make them more secure to the future and being protected. Besides, the company should lower the cost of the top up coverage to the existing insurance to attract them.

It is told that unwarranted optimism that charges policyholders inadequate rates will lead to financial lose, policyholders should be encouraged to seek for adequate levels of coverage. (Lynch 1992) Sometimes, a person with the purchase of life insurance is not enough as the life insurance does not covers all misfortunate events. When the insurance is bought and the misfortunate events happens, they do not get any funding from insurance company as the events was not covered in the terms and conditions of the existing insurance.  Long term insurance provides only 7% of the total funding while the total expenditure is even higher. (Moody 2006)