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:

Finishing Department

The department in a manufacturing process where products undergo final operations, such as painting, polishing, or packaging, before being sold.

Direct Labor-Hour

A unit of measure for the time spent by workers on producing a specific number of goods.

Machining Department

A segment within a manufacturing facility where machining, a process of removing material from a workpiece to create desired shapes and features, takes place.

Machine-Hour

A unit of measure indicating the time a machine is operated to produce goods, often used in allocating manufacturing overhead.