Back to Basics Auto Insurance Advertises "Minimum Coverage for Minimum

question 264

Multiple Choice

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

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

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Definitions:

Formal Group

An organized collection of individuals with a defined structure that is established to achieve specific goals.

Organizational Boundaries

Limits that define an organization's structure, roles, and responsibilities, and separate it from its environment and other organizations.

Grapevine Network

An informal communication network within an organization, characterized by the personal, unofficial sharing of information among employees.

Laissez-Faire Leadership

A leadership style characterized by minimal supervision, where leaders provide tools and resources but allow individuals to solve problems on their own.