Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in
A) nonprice competition.
B) demand-based pricing.
C) competitive pricing.
D) price differentiation.
E) price competition.

Question

Quizplus · Accepted Answer

Safe Auto's advertising message emphasizes the lowest possible price, indicating that the company is engaging in price competition. By positioning its product as "minimum coverage for minimum budgets," the company aims to appeal to customers who prioritize affordability above all else.

Safe Auto Advertises Its Automobile Insurance as "Minimum Coverage for Minimum