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:

Corporate Crisis

A significant threat to operations or reputations that can have negative consequences if not handled properly.

Product Crisis

A case in which a problem in a major product—for example, brakes in a car, faulty batteries in a phone, bacteria in food, or unintended side effects of medicine—creates a public hazard and the company is held responsible.

Unethical Management

Practices by leadership that violate moral principles or values, often compromising the well-being of employees, customers, or the environment.

Issue Life Cycle

The progression of an issue through stages, from emergence to resolution, relevant in crisis management and public relations planning.