Safe Auto Insurance Advertises "Minimum Coverage for Minimum Budgets" for Its

question 155

Multiple Choice

Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?

• A) Customers often use price as an indicator of quality, and Safe wants to be seen as a low-quality provider.
• B) This type of advertising makes insurance more tangible to the customer.
• C) Safe wants to reassure customers that they provide the highest level of service quality available.
• D) Because market conditions limit prices on auto insurance, Safe uses this approach to gain customers.
• E) For some services, customers look for the low-cost provider, which is what Safe claims to be.

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Definitions:

Reaction Formation

A defense mechanism where an individual behaves in a manner opposite to their actual feelings or thoughts.

Case Study Data

In-depth information collected from the analysis of a single subject, group, event, or community, often used in qualitative research.

Hypotheses

Proposed explanations or predictions for phenomena or relationships, subject to testing and verification through scientific research.

Thematic Apperception Test

A projective psychological test that involves presenting individuals with ambiguous scenes and asking them to make up stories about them, used to assess their underlying thoughts, feelings, and themes.