A study of consumer behavior factors and service market mix factors to formulate a solution about the problem of customers failing to renew the life support deposit BAAC Mobrak 1/1, Chamni Branch, Buriram Province

Abstract

The objective of this independent study was to a study of consumer behavior factors and service market mix factors to formulate a solution about the problem of customers failing to renew the life support deposit BAAC Mobrak 1/1, Chamni Branch, Buriram Province. Presently, the Bank for Agriculture and Agricultural Cooperatives (BAAC) launched Love Fund (Mob Rak Deposit) 1/1. However, a policy renewal rate of this product was lower than the bank's target. In this regard, the researcher initiated to study and identify the solutions to this problem. The objective of this study was to analyze the causes and solutions for customers’ rejection to renew the policy contract. This study used a quantitative analysis. A questionnaire was used as a research instrument for data collection. The sample was 400 borrowers of Love Fund (Mob Rak Deposit) 1/1 of the Bank for Agriculture and Agricultural Cooperatives (BAAC), Chamni Branch, Buriram Province.    

The results of this research indicated that in terms of personal factors, most of the respondents were female ( 61.25 percent), aged over 41-50 years (45.50 percent), graduated with a primary education level (30 percent), married person (58.75 percent), worked as farmer (49.50 percent), earned monthly income not more than 10,000 baht ( 64.50 percent), and had a debt burden between 100,001-200,000 baht ( 41.25 percent). In terms of the behavior of the Love Fund (Mob Rak Deposit) contract  renewal, most of the respondents indicated that they deposited for only one policy ( 71 percent). A main reason to choose to buy insurance was for life security ( 47.50 percent). The most influential person on insurance purchasing decision was oneself (59.50 percent). The respondents paid insurance premiums through a direct debiting (68 percent). They needed to get notification of  insurance premium payment schedule via text message (62.50 percent) and a main source of product information was from BAAC  employees ( 45.50 percent). A reason of Love Fund (Mob Rak Deposit) 1/1 contract renewal rejection was  inability to remember the days and the amount of payment (n=195,  48.75 percent). In terms of service marketing mix factor (7Ps),  three factors with the highest mean were Price, Process, and Product. Factors with the high mean were People, Place, Physical Evidence, and Promotion, respectively. Data were analyzed using statistics including frequency and percentage.