An Empirical Investigation of the Investor’s Comparative Behavioural Model on the Relative Influence of Service Marketing Mix Elements on the Pricing Perception and the Retention Pattern in the Life Insurance Sector in India

Abstract

The Indian life insurance sector has become increasingly competitive, requiring insurers to understand the behavioural factors that shape investors' pricing perceptions and long-term retention. This study empirically investigates the relative influence of service marketing mix elements on pricing perception and retention behaviour through a comparative behavioural framework. The research aims to examine how investors comparatively evaluate service marketing mix dimensions before forming pricing perceptions and renewal intentions. A mixed-methods research design was adopted, integrating primary data collected through structured questionnaires from 406 life insurance policyholders with evidence synthesized from existing scholarly literature. Quantitative data were analysed using descriptive statistics, cross-tabulation, Chi-square tests, correlation analysis, and multiple regression to determine the relative contribution of individual service marketing mix elements. The findings reveal that all service marketing mix dimensions significantly influence investor retention, with people and process emerging as the strongest behavioural determinants. While transparent pricing remains important, investors primarily evaluate pricing fairness through service quality, employee professionalism, operational efficiency, and organisational credibility rather than premium affordability alone. The study validates a comparative behavioural model demonstrating that pricing perception is behaviourally constructed through integrated service evaluations, which subsequently influence long-term policy retention. These findings contribute to behavioural marketing and insurance literature while offering practical insights for insurers seeking to strengthen customer loyalty through service-oriented strategies rather than price-based competition.