Question: 1 . Case 5 - step and get a free quote, read more about specific types of policies, or contact customer service with just a
Case step and get a free quote, read more about specific types of policies, or contact
customer service with just a click or a call, day or night. Messages about GEICO's high
levels of customer satisfaction and brand loyalty have more credibility because they are
based on expert sources named on the website: The University of Michigan's American
Customer Satisfaction Index and the Brand Keys Customer Loyalty Engagement Index.
To support its aggressive expansion into motorcycle insurance, GEICO recently
set up MyGreatRides com as a social networking website for motorcycle enthusiasts.
The idea is to provide an online forum for motorcycle owners to post upcoming events,
exchange views about favorite bike brands, and show off their trickedout rides.
Although the GEICO brand is nowhere to be found on the website, the company sees it
as an investment in learning how consumers think and feel about everything related to
their bikes, including insurance. If we can learn more about the needs of motorcycle
riders and what kind of service they expect, we think it will help us with our current
customers and potential ones," says GEICO's director of motorcycle products.
GEICO's Corporate Community Citizens program fosters positive consumer
attitudes through the company's involvement with local causes and organizations. Not
only does GEICO donate money to nonprofit groups all around the United States; its
employees also volunteer their time for causes such as Habitat for Humanity home
building projects, Bikers for Tykes motorcycle rally fundraisers, and Big BrothersBig
Sisters activities. One of GEICO's many auto safety initiatives is the Safety Belt Poster
Contest, in which schoolage children submit artwork for posters that remind drivers
about the importance of buckling up for safety. Local efforts such as these link the
GEICO name with worthwhile causes that touch an emotional chord with consumers. Despite increased competition from its larger rivals, GEICO's approach to
marketing car and motorcycle insurance has been extremely effective. The company
currently serves more than million customers and, according to JD Power &
Associates studies, enjoys high brand awareness as well as the highest newcustomer
acquisition rate among the major insurers. Watch for GEICO to keep driving toward
higher market share by reaching out to car and motorcycle drivers all over the United
States.
Case Questions
Does GEICO appear to be using marketing communications to change consumers'
beliefs, change their evaluations, add a new belief, encourage attitude formation
based on imagined experience, or target normative beliefs? Explain your answer.
What role does source credibility play in GEICO's marketing communications?
Do you agree with GEICO's decision not to show its brand on the
MyGreatRides.com website? How
GEICO Makes Its Case for Savings and Service
GEICO is the numberfour US car insurance firm, behind State Farm, Allstate,
and Progressive, yet its $ million annual budget for marketing communications is by
far the industry's largest. GEICO uses this budget to great advantage with a wide
variety of messages in a variety of media to influence consumers' attitudes toward its
insurance offerings, which include coverage for cars, motorcycles, homes, and
recreational vehicles. In a product category in which consumers do not switch from one
brand to another without considerable thought, GEICO's communications give drivers
something to think about and steer them toward positive brand attitudes.
The company's messages use strong arguments focusing on savings and
service to get consumers thinking about the cost of car insurance. Some of its
comparative messages show exactly how much money a particular consumer saved by
switching from a competing insurance company to GEICO, information that enhances
the product's believability. In a variation on this theme, many of its comparative ads say
that "fifteen minutes could save you fifteen percent." This message encourages
consumers to calculate how much less they could be paying for car insurance if they
were GEICO customers. It also reassures consumers by telling them that making the
switch to GEICO will be quick and easy.
Every ad not only mentions the brand name but also gives GEICO's tollfree
phone number or its website or botha call to action for consumers to take the next Does GEICO appear to be using marketing communications to change consumers
beliefs, change their evaluations, add a new belief, encourage attitude formation
based. Please answer questions please.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
