Page | 34

Chapter 3

Research Methodology

3.1 Elaborating the Conceptual Model

This study will perform with five steps for hypothesis testing.

Step 1 - State the Null and Alternate Hypothesis

X1 H0 : Myanmar People prefer life insurance policies of IKBZ Insurance

Co., Ltd with difference degrees of premium level, the periods of premium payment,

Evaluating

Myanmar

People’s

Preferences for

Life and Health

Insurance

Policies of

IKBZ

Insurance Co,.

Ltd.

“Y”

Myanmar People prefer health insurance

Policy of IKBZ Co., Ltd

Premiums

Benefits

Sales Channels of health

insurance policy

“X2”

Myanmar People prefer life insurance

Policy of IKBZ Co., Ltd

Premiums

Benefits

Sales Channels of life

insurance policies

“X1”

d

Myanmar People prefer life insurance

and health insurance policies of IKBZ

Co., Ltd

Premiums

Benefits

Sales Channels of life and

health insurance policies

“X3”

Page | 35

covering of unexpected risks level, the services of 12-IKBZ branch offices and awareness

of sales channels.

X1 H1 : Myanmar People prefer life insurance policies of IKBZ Insurance

Co., Ltd with no difference degrees of premium level, the periods of premium payment,

covering of unexpected risks level, the services of 12-IKBZ branch offices and awareness

of sales channels.

X2 H0 : Myanmar People prefer health insurance policy of IKBZ

Insurance Co., Ltd with difference degrees of premium level, the periods of premium

payment, covering of unexpected risks level, the services of 12-IKBZ branch offices and

awareness of sales channels.

X2 H1 : Myanmar People prefer health insurance policy of IKBZ

Insurance Co., Ltd with no difference degrees of premium level, the periods of premium

payment, covering of unexpected risks level, the services of 12-IKBZ branch offices and

awareness of sales channels.

X3 H0 : Myanmar People prefer both life and health insurance policies of

IKBZ Insurance Co., Ltd with difference degrees of premium level, the periods of

premium payment, covering of unexpected risks level, the services of 12-IKBZ branch

offices and awareness of sales channels.

X3 H1 : Myanmar People prefer both life and health insurance policies of

IKBZ Insurance Co., Ltd with no difference degrees of premium level, the periods of

premium payment, covering of unexpected risks level, the services of 12-IKBZ branch

offices and awareness of sales channels.

Step 2 - Select the Level of Significance (confidence)

In this study, the level of significance (confidence) is 95% and the determination of

confidence desired for Z value is 1.96 (Z0.05).

Page | 36

Step 3 - Use appropriate test statistic and compute the test.

This study needs test requiring the value of differences and the test statistic will be one-

sample chi-square test and one-sample binomial test (non-parametric test) for determine

whether to reject the null hypothesis and whether or not frequency differences have

occurred on the basis of chance. The formula of “chi-square” test is

X2

= Ʃ(𝐹𝑜−𝐹𝑒)2

𝐹𝑒

Where, X2 = chi-square

Fo = Observed sample in each category

Fe = Expected frequency in corresponding category

The formula of “binomial test” is

P(r) binomial = nCr*pr*q

n-r = (n!p

rq

n-r)(r!(n-r)!)

Where, p(r) = binomial test

r = observations in one category of a dichotomy

(n-r) = observations in the other category, given sample size n

p = the probability of getting the first category

q = (1-p) = the probability of getting the other

Step 4 - Formulate a decision rule, which is a statement of condition under which

the null hypothesis is rejected.

X1 Statistical Notion H0 : Z ≥ Z ∞/2

Statistical Notion H1 : Z ˂ Z∞/2

X2 Statistical Notion H0 : Z ≥ Z∞/2

Page | 37

Statistical Notion H1 : Z ˂ Z∞/2

X3 Statistical Notion H0 : Z ≥ Z∞/2

Statistical Notion H1 : Z ˂ Z∞/2

Step 5 - Make a decision where to reject or not reject the Null.

According to the result from the statistical analyzing of questionnaire, the null hypotheses

will be rejecting or accepting.

3.2 Research Method

This study underpins qualitative and descriptive methodology to conduct of the

investigations for Myanmar people’s preferences of life and health insurance policies

from IKBZ Co., Ltd. For the finding out the answers of the research questions, this study

will approach with exploration, description and hypothesis testing. The types of

investigation are finding out the difference degrees of the dependent and independents

variables by using the measurements of operational delimitation, nominal {Choice

Technique} and ordinal {Likert} in this study. Questionnaires and interviews of the data-

collection methods will help to get logical information from the respondents of each

individual sample units for the data analysis of this research such as feel for data,

confirmation of target population and hypothesis testing.

Page | 38

Research Design Structure

3.1 Figure of Research Design Structure

3.3 Concepts and Variables Operationalization

Labelling Definition Operational

components Measurement

Myanmar People

prefer

life insurance

policies of IKBZ

Co., Ltd

Myanmar People are

interesting and

willing

to buy life insurance

policies

from IKBZ Co., Ltd

- Premium for the life

insurance policies of

IKBZ Co., Ltd

-Benefits for the life

insurance policies of

IKBZ Co., Ltd

-Sales Channels for the

life insurance policies of

IKBZ Co., Ltd

Ordinal

{Likert}

Purpose of

the study

Types of

investigation

Extent of

researcher

interference

Study settingMeasurement

and measures

Unit of Analysis

(Population to be

studied)

Sampling Time horizonData-collection

Method

MEASUREMENT

Operational

definition

Scaling

-ordinal {Likert}

-Nominal {Choice

Technique}

1. Feel for data

-mean

-mode

-median

2. Confirmation of

target

population

-demographic

characteristic by

pie chart display

3. Hypothesis

testing

- one-sample chi-

square test

-one-sample

binomial test

Interview

Questionnaires

DATA ANALYSIS

Individuals

Organizations

Non - Probability

Probability

Sample size (n)

Longtiudinal

DETAILS OF STUDY

Exploration

Description

Hypothesis testing

Establishing:

-Causal

relationships

-Correlations

-ranks

Minimal: Studying

events as they

normally occur

Contrived

"E

va

lua

ting

of M

ya

nm

ar P

eo

ple

's Prefe

ren

ces fo

r L

ife

an

d H

ea

lth In

sura

nce P

olic

ies o

f IKB

Z C

o., L

td

Page | 39

Labelling Definition Operational

components Measurement

Myanmar People

prefer both life

and health

insurance

policies of IKBZ

Co., Ltd

Myanmar People are

interesting and

willing

to buy life and health

insurance policies

from IKBZ Co., Ltd

-Premium for life

and health

insurance policies

of IKBZ Co., Ltd

-Benefits for life

and health

insurance policies

of IKBZ Co., Ltd

-Sales Channels

for life and health

insurance policies

of IKBZ Co., Ltd

Ordinal

{Likert}

Labelling Definition Operational

components Measurement

Myanmar

People prefer

health insurance

policy of IKBZ

Co., Ltd

Myanmar People are

interesting and

willing

to buy health

insurance policy

from IKBZ Co., Ltd

-Premium for the

health insurance

policy of IKBZ

Co., Ltd

-Benefits for the

health insurance

policy of IKBZ

Co., Ltd

-Sales Channels

for the health

insurance policy

of IKBZ Co., Ltd

Ordinal

{Likert}

Page | 40

Labelling Definition Operational

components Measurement

Evaluating

Myanmar

People’s

Preferences for

Life and Health

Insurance

Policies of IKBZ

Co., Ltd.

Revealing the

preferences of

Myanmar People

upon life and health

insurance policies of

IKBZ Co., Ltd.

-Myanmar People

prefer life

insurance policies

of IKBZ Co., Ltd

- Myanmar People

prefer health

insurance policy of

IKBZ Co., Ltd

- Myanmar People

prefer life and

health insurance

policies of IKBZ

Co., Ltd

Nominal

{Choice

Technique}

3.4 The Sampling Plan (Process) for Questionnaires

This study designs with six steeps in sampling process such as target population,

sampling unit, sampling frame, sample design, size of sample and sample plan.

3.4.1 Target Population

The population for Myanmar people is huge elements and it can be take too long

time and used more budgets to collect data for the research questions. Therefore, the

target population from the total population of this study is decided 150 elements of IKBZ

customers by using Judgmental Sampling from the non-probability sampling design to get

the ensured answer for research questions. The people from the population of Yangon and

Mandalay areas are the target population for this paper to collect the information for

hypothesis testing. These target population has more knowledge upon the insurance

policies and interested upon the insurance services than other areas of Myanmar

according to the economic cities.

Page | 41

3.4.2 Sampling unit (Unit of Analysis)

This research was conducted to examine Myanmar people’s preference for life

and health insurance from IKBZ Co., Ltd regarding their considerations of price or

premium of life and health insurance policies, benefits of life and health insurance

policies and sales channels of life and health insurance policies. Life and health insurance

policies of IKBZ Co., Ltd are service products which are relating to people consumption

for avoiding risks. Therefore, the unit of analysis for the evaluating Myanmar people’s

preferences for the life and health insurance policies of IKBZ Co., Ltd is individuals or

organization such as the life or health or both policyholders of IKBZ Co., Ltd and people

who are interested in insurance policies and willing to buy insurance products from the

economic cities Yangon and Mandalay.

3.4.3 Sampling Frame

Sampling Frame represents all of elements of the target population of interest that

consists of a list a set of directions for identifying the target population. Generally, the

sampling frame of this study is a list of people who prefer life insurance policies of IKBZ

Co., Ltd, people who prefer health insurance policy of IKBZ Co., Ltd, people prefer life

and health insurance policies of IKBZ Co., Ltd.

3.4.4 Sample Design

A technique of sampling design for this paper is Stratified Sampling of Probability

Sampling Design. The researcher first divided three strata according to the Myanmar

people’s interested in insurance police of IKBZ Co., Ltd such as people prefer life

insurance policies of IKBZ Co., Ltd (L), people prefer health insurance policy of IKBZ

Co., Ltd (H) and people prefer both life and health insurance policy of IKBZ Co., Ltd

(L+H) from 150 elements of target population.

N = L + H + (L+H)

Then, 150 = L + H + (L+H)

Page | 42

3.4.4 Sampling Design Diagram

3.4.5 Size of Sample

The sample size for the Myanmar people’s preferences of life and health insurance

policies was calculated with the formula of Yamane. (Yamane, 1967)

𝑛 = 𝑁

1+𝑁 𝑒2

where, n = the sample size

N = the size of target population

E = the error of 5 percentage points

Therefore, 𝑛 = 150

1+(150 ∗ 0.052)

n= 110

The sample size (n) will be 172 by using the sample size formula of Yamane with

an error 5% and with the confidence coefficient of 95% from the total target population

300 of three strata. This study will tolerate the error sequences with 5% and the

confidence coefficient level 95%, which is acceptable (1-0.95) Z 0.05 then

Z0.05 = 1.96

Myanamr People prefer life insurance policies of

IKBZ Co., Ltd

Myanmar People prefer heath insurance policy of

IKBZ Co., Ltd

Myanmar People prefere both polices of

IKBZ Co., Ltd

Page | 43

3.5 Sources of Data

To reach the target of the objectives of this research, data are collected from

primary and secondary data.

3.5.1 Primary Data

Primary Data for this study is a questionnaire, which is a set of questions for

gathering information and Interview from individuals of IKBZ customers and Myanmar

people who are interested in insurance products. The questionnaire was collected by

email, telephone and social network (Facebook and Twitter). The answer from the

response of sample size will help to analyze the result of this study with statistical tools.

3.5.1 Primary Data

Social networks

Telephone

Email

Telephone

Social Networks

(Facebook &

Twitter)

Interview

Questioning

Primary Data

Page | 44

3.5.2 Secondary Data

The secondary data was collected from internal sources of IKBZ Co., Ltd.’s

marketing team and the external sources such as magazine, Myanmar Journals,

Newspaper, Internet Website and Text books. The secondary data of this study provides

for the primary research.

3.5.2 Secondary Data

3.6 Data Collection for Questionnaires

Questionnaire will help in gathering information for this study to reach its

objectives. The questionnaire was designed with four parts such as Demographic part,

Myanmar People prefer life insurance policies of IKBZ Co., Ltd part, Myanmar people

prefer health insurance policies of IKBZ part and Myanmar people prefer both life and

health insurance policies of IKBZ Co., Ltd part. At Demographic part, questionnaire will

include questions such as sex, age, education, income level, which polices the participant,

prefers and where the participant lives. At the other three parts, questionnaire will

combine the questions such as price or premium of the insurance policies from IKBZ Co.,

Ltd, benefits of the insurance policies and sales channels of the IKBZ Co., Ltd. The 110

questionnaires will be distributed to the sample elements or Myanmar People who stay in

Social networks

Telephone

Internal Source

Market team of IKBZ

Secondary Data

Magazine

Journals

Newspapers

Social Network

Text Books

External Sources

Page | 45

Mandalay and Yangon area and who are customers of IKBZ Co., Ltd or who are

interested in insurance policies by using the Email, Social Network (Facebook and

Twitter), and Telephone. The questionnaire was the multiple choice questions with the

ordinal {Likert scales} measurement.