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:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Payroll Tax Expense

The financial charge associated with employing labor, including taxes imposed by government entities such as Social Security and Medicare taxes in the United States.

Current Liability

A financial obligation that is due to be paid within one year.

Notes Payable

Financial obligations or loans that companies are required to pay back within a specified timeframe, often evidenced by promissory notes.