Question

Cases C1. Progressive Insurance

In the 1980s, Progressive was a small auto insurance company that sold most of its policies to people who had poor driving records and could not qualify for the standard rate policies sold by other insurers. Progressive charged higher premiums for these policies, which the insurance industry calls substandard policies. Often, other insurers who could not write standard polices for customers would refer those customers to Progressive. The combination of high premiums and the lower cost of its smaller sales force enabled Progressive to earn good profits on this business. Eventually, other insurers noticed Progressive's success and began to offer their own substandard policies. To respond to the increased competition, Progressive improved its claim service and became one of the first insurance companies to offer 24/7 service every day of the year. During the 1990s, Progressive gradually developed a full line of auto insurance products for all types of drivers and focused on offering the lowest prices in both standard and substandard markets. Although Progressive's advertising mentions the quality of its service, it always emphasizes its low prices. Progressive was the first auto insurance company to launch a Web site (in 1995) and was the first to sell policies online (in 1997). Knowing that most potential insurance buyers shop multiple Web sites to find the best rate, the company began showing its competitors' rates on its Web site in 2002, allowing potential customers to compare prices without leaving Progressive's site. The site displays these rates even when Progressive's rate is higher than a competitor's rate on a particular policy. Progressive's management has expressed a belief that people prefer to buy insurance from honest companies who offer the best prices. In 2008, Progressive introduced a female character, "Flo," who embodies openness, honesty, and devotion to low prices. Flo appears in the company's television and radio ads, and is featured prominently on its Web site. In fact, the character often appears in television ad vignettes that tout the price comparison feature of the Web site.

REQUIRED:

1. Many managers would be reluctant even to mention competitors, much less provide their competitor's prices to potential customers. In about 200 words, outline Progressive's reasons for showing competitors' prices and analyze the costs and benefits of doing so.

2. In the chapter, you learned that it is important for a company to present an image consistent with its philosophy, principles, and identity on its Web site. In about 100 words, explain how Progressive does or does not accomplish this objective.

3. Visit the Progressive Web site and assume you are a potential customer who needs insurance for a used car you plan to buy. Evaluate the usability of the site and write a report of about 100 words in which you describe your experience. Be sure to mention specific site features that were or were not helpful and conclude with an overall impression of the site's effectiveness.

prepare a 3-page analysis that includes the following elements:

1. Introduction
2. Analysis
3. Recommendations

Answer 1

1.. The progressive organization shows that its rivals' rates on its Web website and enabling potential clients to analyze costs without leaving Progressive's webpage. So clients may effectively checkout their decisions with different contributions. This procedure has functioned admirably for the Progressive. Anyway, its technique has two advantages and its expenses.

Above all else, I will discuss the advantages. The primary advantage is that in the present day we see that the clients are exceptionally intrigued by the costs offered by contenders. This has become a significant need of the clients. Valuing is one of the most significant things and giving this examination gives extraordinary help to clients. Henceforth this correlation can get the Progressive clients effectively to the following phase of purchasing the item. Another advantage is that to exhibit the offer. Here and there tow items may be estimated in a similar value band anyway the worth offered by the two is the choice factor here. The item that gives more an incentive for cash. So for this situation, the better worth can even beat a more significant expense. The client will go with the better an incentive at the cash that better costs as it were.

Yet, this technique additionally has its very own expenses. There may be lawful procedures on the off chance that the contender sees the data as deluding or wrong. Again the clients may proceed with the following offering believing it to be better, not all individuals comprehends an incentive for cash or different things like the organization has pictured. This increases a free publicizing accomplished for your rival by your organization. Inappropriate or deceiving data likewise brings about the loss of trust among the clients.

Thus these are the explanations behind utilizing or not utilizing the value examination by Progressive.

2.. In my sentiment, Progressive does an awesome activity of displaying a picture that is predictable with its way of thinking, standards, and personality on its site. The name says everything, "Dynamic" has advanced with time and refreshed its arrangements reliably, in a regularly evolving world. They go back to times before the web, be that as it may, the had smooth progress in 1997 as the principal site to sell protection strategies on the web. They needed to learn "on the fly". I likewise think their transparency and trustworthiness to show other contenders' rates, regardless of whether they are not in the same class as Progressive, oozes certainty. Not all organizations had as smooth change as Progressive. At long last, their showcasing division is virtuoso also. "They discovered something that works and stayed with that. up to this point, it has worked very well. Relatively few different organizations can say the equivalent.

3.. Progressive site is very easy to understand, as I would see it. The absolute first page of their site is stuffed with general information. There are various tabs to choose from forever, Auto + Property, and Rental Insurances. When you jump into one of these tabs, you will get to a second page with separates the chose theme into ever more noteworthy detail. It shows what the arrangement will inclusion, and how you would potentially be able to spare by packaging numerous things into one arrangement. When you're prepared to begin making a statement, it is extremely straightforward where to go to start. One incredible element of their site is they communicated their live telephone number right toward the start. This is extraordinary for clients that don't care to just utilize the PC to make a statement, or if clients have particular subtleties they need to be replied. The statement requires a great deal of individual data, however, it is required to give an exact statement. Generally speaking, their site is very easy to understand and amazingly enlightening.