Search results
1 – 10 of over 6000
International business/International marketing.
Abstract
Subject area
International business/International marketing.
Study level/applicability
Courses: the case is directly related to courses on “International Business” and “International Marketing” in the Master of Business Administration programme.
Training programmes: management development programmes for working executives, on the topics “Business across borders”, “Business stabilization in foreign markets”.
Case overview
In 1999, the liberalization of the insurance sector as per the recommendations of the Malhotra committee gave way for privatization and foreign firms entered this sector through joint ventures. The business growth, which was enjoyed by these firms from 1999 to 2008, was tremendous. The growth percentage started declining following the global economic downturn in the capital markets. This situation compelled the insurance firms to re-look into their business strategy. On one hand whatever growth they had, 80 percent of it was through unit linked insurance plans depending on the capital market. On the other, it was identified that in a country like India the untapped market potential was among the rural millions. Reaching those people who are at the bottom of the pyramid necessitated a completely new business model to be developed as the need of the hour. The take stock of the position at this vnjuncture is the crux of the present case study, which envisages finding out alternative delivery models to suit the Indian rural market taking into account the intrinsic nature of life insurance and the basic living styles and mentality of the rural folk.
Expected learning outcomes
After discussion and analysis of this case, students will be able to:
understand how market culture in a target country differs from that in the home country;
appreciate how challenges in a developing country market have their own unique features to be understood;
identify various courses of action and evaluate them on the basis of the host country factors;
understand the “international planning process”; and
appreciate how important it is for a country manager of a multinational firm to plan and execute the marketing mix suited to the inherent qualities of the target market.
understand how market culture in a target country differs from that in the home country;
appreciate how challenges in a developing country market have their own unique features to be understood;
identify various courses of action and evaluate them on the basis of the host country factors;
understand the “international planning process”; and
appreciate how important it is for a country manager of a multinational firm to plan and execute the marketing mix suited to the inherent qualities of the target market.
Supplementary materials
Teaching notes.
Details
Keywords
Hafizuddin-Syah Bangaan Abdullah, Rubayah Yakob, Sajiah Yakob and Nuratikah Syafiqah Sharif
Participation in micro-family takāful plans amongst low-income earners remains low despite the various initiatives promoted by the Malaysian Government. Therefore, this study aims…
Abstract
Purpose
Participation in micro-family takāful plans amongst low-income earners remains low despite the various initiatives promoted by the Malaysian Government. Therefore, this study aims to conduct an in-depth examination on the indicators of having micro-takaful tafakul in Malaysia.
Design/methodology/approach
Questionnaires were distributed to respondents residing in Selangor, the state with the highest recorded percentage of low-income earners in Malaysia. Regression analysis was conducted in this study. Demographic characteristics and knowledge were treated as the independent variables, whereas the tendency of having a micro-family takāful plan was considered the dependent variable.
Findings
Gender and knowledge on the benefits of micro-family takāful plans have significant and positive effects on the tendency of having a micro-family takāful plan. Married and employed women are more likely to own a micro-family takāful plan compared with their male counterparts.
Research limitations/implications
This study contributes to the growing literature on the research of micro-takāful determinants in Malaysia.
Practical implications
Industry players and regulators need to tailor the operating and marketing strategies of micro-family takāful plans based on the gender and knowledge of potential participants. The industry may also improve the features of takāful plans to ensure that they are even more attractive and comprehensive.
Originality/value
This study offers a much deeper analysis compared with past research owing to the identified dimensions of a demographic factor that can influence the tendency of having micro-family takāful plans. Besides, this study offers a comprehensive measurement of the knowledge on micro-family takāful plans by considering all aspects (i.e. concept, importance and benefit) of these plans. Moreover, this study examines the influence of each element of knowledge on the tendency of having a micro-family takāful plans, a topic that was rarely studied in the past.
Details
Keywords
Sheila Nu Nu Htay, Nur Shazwani Sadzali and Hanudin Amin
This research aims to examine the viability of micro-health takaful in Malaysia. Current practices in the takaful industry in Malaysia reveal that takaful operators (TOs) are keen…
Abstract
Purpose
This research aims to examine the viability of micro-health takaful in Malaysia. Current practices in the takaful industry in Malaysia reveal that takaful operators (TOs) are keen on offering products that are affordable for middle- to high-income people. However, the concept of takaful is based on mutual help, and, hence, it is believed that TOs should offer products affordable by the poor and lower income people.
Design/methodology/approach
To achieve this objective, the interest of the poor to participate in this product is examined by sending the questionnaire. In addition, TOs were approached to understand why micro-health takaful products have not been offered as yet. The regulator was also interviewed to gauge whether the government is supportive of this scheme.
Findings
From the survey, it was noted that the poor people are interested to participate in such a scheme. However, most of them are only willing to contribute about RM5 per month, while some of the respondents, especially, zakat recipients are unable to afford to pay at all. The zakat authority when interviewed stated they were unable to contribute on behalf of the zakat recipients. To a certain extent, zakat authority is required to obtain an approval from the National Fatwa Council with regard to that issue. The regulator views that the micro takaful is still in an experimental stage. From the perspective of TOs, it might be viable if the product is offered as part of the corporate social responsibility, rather than by individual operators. Therefore, it could be summed up that micro-health takaful will be viable if and only if TOs collectively offer it as a part of their corporate social responsibility, and it must be subsidized by the zakat or waqf authorities.
Research limitations/implications
Particularly, this study only considers a limited geography in Malaysia to understand the viability of micro-health. On the same note, the current focus of the study is on micro-health takaful in which it has not tapped other potential micro takaful products.
Originality/value
This study is a pioneering effort in understanding the viability of the micro health takaful in Malaysia.
Olajumoke Olaosebikan and Mike Adams
The purpose of this study was to, using a case study research design informed by organizational economics theory, to examine the prospects for micro-insurance in promoting micro…
Abstract
Purpose
The purpose of this study was to, using a case study research design informed by organizational economics theory, to examine the prospects for micro-insurance in promoting micro-credit in a low-income Anglophone country in sub-Saharan Africa – The Gambia. Two main research questions are addressed: first, what is the most appropriate micro-finance institution (MFI) organizational structure to maximize the economic benefits of micro-insurance? Second, what are the financial management and wider economic benefits of the use of micro-insurance by MFIs?
Design/methodology/approach
To address our two research questions, we used a semi-structured interview protocol, informed by the organizational economics literature, to interpret the data collected from our field cases. We believe that these intrinsic qualities of case study methodology are particularly apt in the present study, given the complex and emergent nature of micro-finance and micro-insurance in low-income countries such The Gambia. By focusing on case studies in a single country, we also to some extent help control for variations in business environment that could confound interpretations of field data obtained from different jurisdictions.
Findings
The results of our study suggest that the mutual (cooperative) structure of credit unions is likely to be the most cost-efficient and effective organizational form for reducing information asymmetries, agency problems and transaction costs. We also observe that micro-insurance can help reduce the risk of loan defaults, thereby increasing returns on savings and lowering the costs of debt. As such, micro-insurance stimulates the demand–supply of financial intermediation in less developed countries and so helps promote economic development. In addition to contributing new insights, our findings have potentially important commercial and public policy implications.
Research limitations/implications
We acknowledge that our research is subject to inherent limitations such as the focus on three interviews in three different types of MFI organization while excluding other structural forms of organization such as government-owned/sponsored organizations. Nonetheless, the organizational characteristics of the cases examined in the present study are representative of most MFIs in developing countries. Given the prevalent hierarchical nature of corporate systems in sub-Saharan Africa, the views of the interviewees are also deemed to reflect those of other board members. Nonetheless, we acknowledge that the conclusions from our research may need to be tempered in line with these inherent limitations with the research approach adopted.
Practical implications
The insights obtained from our Gambia-based research could be generalized to developing countries elsewhere in sub-Saharan Africa, and indeed, other parts of the developing world. Consequently, the study could be of interest and relevance to international financiers (e.g. the World Bank), aid agencies, governments and other development organizations.
Originality/value
Despite its evident business and development potential, academic management research on micro-insurance, and in particular, its role in supporting micro-finance initiatives, is still very much at an embryonic stage. Our study thus seeks to fill this knowledge gap.
Details
Keywords
George Apostolakis, Gert van Dijk and Periklis Drakos
This study aims to offer a literature review on microinsurance, focusing on its financial performance and social impact. The aim is to review current research in microinsurance…
Abstract
Purpose
This study aims to offer a literature review on microinsurance, focusing on its financial performance and social impact. The aim is to review current research in microinsurance performance. Over the past decade, microinsurance has aroused the interest of the scientific community. Scholars have monitored its development and have examined its impact on the poor’s ability of breaking out of the poverty trap.
Design/methodology/approach
A systematic-narrative method was used to review the relevant literature. In total, 64 relevant articles on investigating the financial performance and the effects of microinsurance programs on the poor’s well-being were reviewed, coded and followed by a narrative synthesis.
Findings
This review synthesizes current published data on microinsurance to provide practitioners and researchers with a better understanding of this important area. Microinsurance benefits the poor, as it reduces their vulnerability to poverty. Microinsurance has a twofold impact on an individual’s ability to overcome poverty. First, it has a direct impact on access to healthcare services and, second, it has an indirect effect on an individual’s economic status, by moderating risk vulnerability and improving income stability. Further research is necessary to reach concrete conclusions about the financial performance of microinsurance programs. Finally, the analysis of the literature revealed an absence of research regarding the impact of microinsurance on society and sustainable development.
Research limitations/implications
An understanding of the performance of microinsurance services is important. Therefore, the findings can be used by microinsurance practitioners to assess and improve their performance. Further, policy implications such as improvement of financial knowledge and social marketing via education polices to increase microinsurance awareness of its benefits are recommended.
Originality/value
This review provides a synthesis of the literature in microinsurance concerning its financial and social performance, and raises suggestions for future research.
Details
Keywords
Rozaimah Zainudin, Nurul Shahnaz Ahmad Mahdzan and Ee Shan Leong
This study is an exploratory study investigating firm-specific internal factors that influence the profitability performance of selected life insurance firms in eight Asian…
Abstract
Purpose
This study is an exploratory study investigating firm-specific internal factors that influence the profitability performance of selected life insurance firms in eight Asian countries (China, Hong Kong, Taiwan, Singapore, Japan, South Korea, Thailand and Malaysia) from 2008-2014. This paper aims to focus on internal rather than external factors based on the resource-based view suggesting that the internal resources of a firm are key to gaining competitive advantage.
Design/methodology/approach
The authors used panel data estimation model to test our six hypotheses on these eight selected countries for the period between 2008 and 2014.
Findings
A random effect model reveals that size, volume of capital and underwriting risk are significantly related to the profitability of Asian life insurance firm, measured as return on assets. Premium growth, asset tangibility and liquidity are insignificant predictors of the profitability performance of these life insurance firms.
Practical implications
Three implications of this study are that life insurance firms need to proactively tap new business opportunities by attracting younger generation customers via e-marketing technologies; secure larger capital base to finance their market expansion strategies; and focus on intangible resources such as goodwill, brand equity and reputation.
Originality/value
This study contributes to the literature by conducting an exploratory regional-based panel study of Asian life insurance firms to find common factors that contribute towards profitability. The study is conducted on a collective sample of Asian life insurance firms based on the premise that the firms included in the sample engage in cross-border activities and share the same international financial reporting standards. These commonalities allow us to treat the firms jointly in a somewhat similar Asian macroeconomic environment.
Details
Keywords
Samuel Ampaw, Edward Nketiah-Amponsah and Nkechi Srodah Owoo
Against the background that Ghanaians seldom purchase insurance policies, the purpose of this paper is to investigate the determinants of life insurance uptake among male and…
Abstract
Purpose
Against the background that Ghanaians seldom purchase insurance policies, the purpose of this paper is to investigate the determinants of life insurance uptake among male and female household heads in Ghana.
Design/methodology/approach
The study employs data on 775 male and 233 female household heads from the sixth round of the Ghana Living Standards Survey. Adjusted Wald test statistics and logistic regressions are employed for the empirical estimations.
Findings
Results from the adjusted Wald test show that the sampled male household heads significantly differ from their female counterparts in terms of the selected socioeconomic and demographic characteristics. Though ill health status, higher wealth, being self-employed or in wage or salaried employment and residing in either of the three northern regions (upper east, upper west and northern regions) in Ghana broadly affect the demand for life insurance among both male and female heads, other factors are peculiar to either parties. Particularly, whereas female heads who are married and those with more dependants have a higher propensity of purchasing life insurance policies, their male counterparts with higher education are more likely to buy life insurance policies.
Research limitations/implications
The paper adds to the paucity of cross-sectional studies on life insurance demand in Africa.
Practical implications
Based on the explored determinants, insurers could better regulate the purchase of their products by taking into consideration the gender differences to maximize their sales and enhance economic growth and development.
Originality/value
This paper explores the gender dynamics in the determinants of life insurance demand in a developing country, Ghana. Besides, findings from related literature are reported to be mixed. Though the current paper is not wholly nationally representative, it utilizes data from across all the ten administrative regions of Ghana. To the best of the authors’ knowledge, no prior study has been conducted in this manner.
Details
Keywords
Parthasarathi Das, Tapas Ranjan Moharana and Indirah Indibara
The specific learning objectives of the case are as follows: To contribute to the knowledge of environmental challenges faced by various financial companies while trying to foray…
Abstract
Learning outcomes
The specific learning objectives of the case are as follows: To contribute to the knowledge of environmental challenges faced by various financial companies while trying to foray into the rural markets, especially in case of insurance products’ expansion strategy; to understand the distribution strategy adopted by insurance companies in rural as well as urban markets; to apply the concepts such as mental accounting, designing and pricing of insurance products to develop an effective strategy for insurance products targeting the rural market; to be able to analyse the data available on products and the rural market structure that enables the students to derive from an implementable managerial framework and design an effective rural market strategy for insurance products; and to enable the students to evaluate the key rural market drivers, which will subsequently help them to develop a new structure of rural distribution channel.
Case overview/synopsis
ICICI Prudential Life Insurance Company Limited (IPRU) was trying to reach the last mile customers of rural India to tap the opportunity and meet the Indian Government's statutory requirement of financial inclusion. Even though the leadership of IPRU was optimistic about the untapped potential of rural India, and launched a separate business vertical - Rural Business Channel (RBC) in the year 2002 to cater to this target segment, yet it faced many strategic issues while foraying into the rural domain. The company struggled with both the designing of products as per the rural customers' needs, as well as the distribution of these products in rural areas. The present case study is an attempt to bring out the strategic challenges that were faced by the IPRU management, with a major focus on designing, pricing and distribution of rural insurance products. The case study will help the readers in understanding what might go wrong while entering new rural markets and how to deal with these challenges.
Complexity academic level
The case study can be used to teach both undergraduate and postgraduate management students.
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 8: Marketing.
Details
Keywords
Muhammad Mehedi Masud, Md Rajibul Ahsan, Noor Azina Ismail and Md Sohel Rana
Life insurance remains an essential part of financial and social security. The insurance penetration rate is high in the developed countries but very low in developing countries…
Abstract
Purpose
Life insurance remains an essential part of financial and social security. The insurance penetration rate is high in the developed countries but very low in developing countries such as Malaysia, with only 4.8% penetration and extremely low underwritings. Therefore, this study aims to scrutinize the underlying determinants of a household purchase behaviour of life insurance.
Design/methodology/approach
The data generated from the administration of survey questionnaires to 325 households were analysed, using structural equation modelling to obtain the research purposes.
Findings
The analysis reveals that the knowledge of life insurance, attitudes towards life insurance, subjective norms (SN), trust and risk perception, affect the tendency of a household to purchase life insurance. The results of this study also highlight that households’ purchase-propensity influences the purchase behaviour of life insurance. Concurrently, the intention to purchase has mediating effects on explanatory variables and purchase behaviour.
Originality/value
This paper established awareness, SN, perceived behavioural control, trust and risk perception as the key determinants promoting positive attitudes towards purchasing life insurance. The findings of this study can be successfully applied to different stakeholders in a similar context. This study suggests that the managers of life insurance companies should adjust their policy guidelines in accordance with the positive relationship between the constructs and consumers’ intention to purchase life insurance.
Details
Keywords
Strategic Management and Marketing.
Abstract
Subject area
Strategic Management and Marketing.
Study level/applicability
Management students (MBA).
Case overview
In the present times of global competition and busy schedules of individuals, it is expected that companies provide service with security, sincerity and flexibility keeping pace with changing global scenario of marketing. Service receiver expects competitive and optimum facilities with ease while sitting in any corner of the world at any time of the day. It implies that the service provider should be available at all times/all places for satisfying the needs of the customers. A daunting task ahead of Life Insurance Corporation of India (LIC) was to change its conventional approach and work toward a newer, user-friendly one. The top management, i.e. the Board of Directors, took up the task of identifying a quicker but securer approach to provide optimum facilities to the policyholders.
Expected learning outcomes
Achieving customer satisfaction through alternate collection channels and retaining market share, role of customer servicing in creating competitive advantage, challenges for a large public sector enterprise – traditional approach or modern approach, role of private companies in development of insurance industry, creating awareness about the product/service through different distribution channels and use of information and telecommunication technologies to reach remote places, are the expected learning outcomes.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 8: Marketing
Details