Marketing Research As A Tool For Profitability In The Service Industry A Case Study Of Aiico Insurance Company Operations In Enugu Metropolis

MARKETING RESEARCH AS A TOOL FOR PROFITABILITY IN THE SERVICE INDUSTRY A CASE STUDY OF AIICO INSURANCE COMPANY OPERATIONS IN ENUGU METROPOLIS

ABSTRACT

Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. (Koller P 2003).

This study focused on marketing research as a tool for profitability in the service industry, a case study of AIICO insurance company operation in Enugu metropolis.

In order to carryout the study, the following objectives amongst others were states;

-                     To ascertain the proportion of marketing bodget allocated to the marketing research activities in a given period in AIICO Insurance Company.

-                     To ascertain, if the marketing research activities increase the number of policy holders in AIICO insurance company.

-                     To ascertain whether marketing research contributes to increase in profit in AIICO insurance company.

-                     To ascertain whether marketing research creates awareness of AIICO insurance company and its services.

Based on the stated objectives, three hypotheses were formulated, they are:-

Ho: Marketing research does not create awareness of AIICO insurance company.

HI₁ Marketing research creates awareness of AIICO insurance company.

Ho₂ marketing research does not increases the number of policy holders

HI₂ Marketing research increases the number of policy holders

Ho₃ Marketing research does not increase profit of AIICO Insurance Company.

HI₃ Marketing research increase profit of AIICO insurance company. 

Extensive literature review of textbooks, newspapers, magazines business journals and some past projects of graduated students who studied related topic of the study was carried out to source secondary data. Primary data were source from respondents comprising policy holders, management and relevant staff of AIICO insurance company in Enugu.

The sample size was determined using Topman’s formular for the policy holders of AIICO Insurance company while a census was conducted for management and relevant staff of AIICO insurance company in Enugu.

The researcher used chi-square (x²) statistical method to test the hypotheses which were earlier formulated for the study. The data collected were presented on statistical tables using frequencies and percentages for analysis.

In the process of the study, the following finding were revealed.

-                     That AIICO insurance company at one time or the other engaged in marketing research activities.

-                     That the company has a marketing research department at the headquarters only but not at the zonal offices.

-                     That marketing  research activities increase the number of policy holders.

-                     That marketing research activities increase the profit level of the company.

In view of the releasing findings, recommendations on how to apply marketing research for the success of the company were offered.

In conclusion, the ultimate aim of using marketing research is geared towards customers satisfaction at a profit to the company, so AIICO Insurance Company is advised to continue putting marketing research into effective use.

TABLE OF CONTENTS

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of contents

CHAPTER ONE

1.0      Introduction

1.1      Background of the study

1.2      Statement of the problem

1.3      Objectives of the study

1.4      Formulation of hypotheses

1.5      Significance of the study

1.6      Scope of the study

1.7      Definition of terms

CHAPTER TWO

2.0      Literature review

2.1      What is marketing research?

2.2      Scope of marketing research

2.3      The place of marketing research in marketing

2.4      Marketing research problem facing Nigerian manufacturer

2.5      The future of marketing research in Nigeria

2.6      Role of marketing research in the service industry

2.7      Role of marketing research in the profitability of AIICO insurance company.

CHAPTER THREE

3.0      Research methodology

3.1      Sources of data

3.2      Population of the study

3.3      Sample size determination

3.4      Sampling technique

3.5      Research instruments used

3.6      Method of data treatment and analysis

3.7      Limitations of the study

CHAPTER FOUR

4.0      Data presentation and analysis

4.1   Test of hypotheses

CHAPTER FIVE

5.0   Summary of findings recommendations and conclusion

5.1      Summary of findings

5.2      Recommendations

5.3      Conclusion

Bibliography

Appendices

CHAPTER ONE

1.0      INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Organizations uses many types of resources to function. One of the most valuable, often the least understood, is their knowledge base. Management is unable to take formed decisions without knowledge and the quality of that organization knowledge, skills, resides primarily in employees but can also be collected in data bases, reports patents, plans, budgets, memoranda and a variety of other documents. The knowledge base covers all aspects of the organizations activities products, technology, human resources, finance, sales and marketing and is a wasting asset requiring constant