Real Choices at State Farm Case Study 1. What is the decision facing State Farm? State Farm is wanting to know how safe their drivers are. State Farm is not the only company who is implementing Big Data. Big Data is a popular term to describe the exponential growth of data in massive amounts that are difficult or completely impossible to process using traditional database techniques. Other well-known insurance companies already have driving tracking programs in place. The biggest issue State Farm is facing, is how their program will stand apart from the others in order to be successful. 2. What factors are important in understanding the decision situation? There are many factors that will play a key role in understanding this particular situation. The five elements of the external environment will help analyze the marketing environment. The …show more content…
What are the alternatives? There are a few alternatives that State Farm could choose to take in this situation. One possible alternative would be to have the customer’s State Farm agent go on a driving test with the customer. This would prove if the driver is safe and deserves the discount State Farm is offering if they install the device in their car. Another possibility would be to find another way to track how safe the drivers are without having to install a device in the client’s car. I think not having a device in the car, would make clients feel more comfortable and want to participant in the program, in order to get the discount. 4. What decision do you recommend? State Farm has a few decisions to make regarding the implementation of this program. I think State Farm needs to market this idea to their younger clients all the way up to middle-aged clients in order to substantially increase their products. Another great idea would be to create an incentive program for families who have more than one safe driver. Incentives such as t-shirts, restaurant gift cards, etc. might entice clients to join the program as
In 2012, State Farm launched Celebrate My Drive, a program that centralized on safe driving practices among teenagers. During its second year, State Farm decided to go through a multi-faceted approach that would also get parents and the community to make the commitment to drive safely. Celebrate My Drive began March 1-Oct. 17, and included the U.S. National Teen Driver Safety Week of October 18-26 (PRSA, “Celebrate My Drive”). Overview of the issue that created the problem or opportunity to be leveraged.
These data affect the consumer decision-making process through alternative evaluation, the consumer compares the different choices to best meet their individuals need. The consumer decides the criteria for judging the alternative products or services by evaluative criteria. Consumers use tangible and intangible criteria, and when evaluating alternatives, determine qualities that are important and evaluate the alternatives.
Star Tribune mentions that according to the Department of Public Safety, "distracted driving causes on in four Minnesota car crashes and results in at least 70 deaths and 305 serious injuries a year." This statistic appeals to logos by explaining how distracted driving is a serious matter. The statistic conveys an informative tone. Star Tribune incorporates the statistic to build their ethos. The statistic makes car accidents seem more realistic to their audience. This causes the audience to get alarmed about car accidents as well. Then, Star Tribune writes that the U.S. Department of Transportation reports, "Nationally, highway deaths spiked to 35,092 in 2015, the highest one-year increase since 1966." Star Tribune includes this statistic to explain how deadly car crashes are. This establishes a fretful tone. The statistic appeals to the audience's logical reasoning about how car accidents need to stop. The statistic also builds Star Tribune's ethos by quoting the U.S Department of Transportation: A trusted source. Star Tribune also adds that the U.S. Department of Transportation blamed the 7.2 percent of deaths per miles traveled on drunken driving, speeding, distracted driving from a phone or other hand held device. The data concluded "that about 10 percent of fatal crashes in 2015 involved at least one distracted driver." The statistic means that for every 3,509 car accident death, at least one death was from
When a case study is conducted, the researcher conducts an in-depth observation on a particular individual for an extended period of time. While observing the individual, the researcher records their observations which are then translated into case materials that are used to demonstrate a possible problem (American Psychological Association, 2009). Also, as mentioned before, case studies are solely focused on observations of a particular individual. However, even though the word individual is usually used to refer to a person, in this case, it can also be used to refer to a business, school, or neighborhood (Cozby & Bates, 2012).
I would agree that the welfare system is a “broken system”, but I wouldn’t necessarily say that the welfare system needs to be “wiped out” before it can be improved. The welfare system is a large system and within that large system there are parts of the system that works well and there are parts that need additions and changes made to be more effective system with assisting individuals to become self-sufficient. Additionally, the welfare system needs to undergo change to become a more efficient system.
The Coop has no major market research to go off of in order to effectively position them in a changing market. R&D doesn't seem to be supported by good research in the market segments.
In his political journal of law, Gregory Odegaard states that “an increased percentage of insured drivers not only reduces insurance costs for all motorists, but also promotes public safety because fewer drivers will flee the scene of accidents” (A Yes or No Answer: A Plea to End the Oversimplification of the Debate on Licensing Aliens).... ... middle of paper ... ... Works Cited Barteldes, Ernest.
Motor vehicle crashes cause over seven percent of teen deaths each year. Although this is true, according to Janet Adams, “Over the last decade, teen graduation from driver education classes has plunged from 100 percent to about 50 percent. During the same time period, injury accidents involving 16 to 19 year-olds have increased 55 percent.” Do these statistics reflect the removal of driver education from most school systems in Oklahoma? Oklahoma City is one of the few districts with a driver education program offered during the school year. Fees for these classes are $200 for in-district students and $250 for anyone living outside the district. In addition, driving sessions offered in the fall are conducted in the evening and on Saturdays, but no school credit is given. Although summer classes are offered, they are limited to 30 students each and sessions fill up quickly. Last year only 139 out of 458 students took the summer course. In summation, the safety of teenagers is affected when drivers’ training is not available. Therefore, driver education should be mandatory and offered at a low cost to high school students during the school year.
Driverless cars have 360 degree monitoring and have the potential to save billions of dollars and thousands of lives (Brown).
Car insurance is a very important aspect of driving that all motor vehicle owners should look into. It is underutilised with only around 35% of all road users having had their motor vehicle/s insured. This leaves many drivers in financial debts as they are unable to pay, either the medical expenses due to a collision or the physical damage done to the vehicle, as they are not covered.
Although it is a controversial topic, many individuals believe that the driving skills of senior citizens have declined and need to be addressed. According to The Telegraph, “more than a quarter (respondents) admitted to feeling unsafe when driven by someone over the age of 65” (The Telegraph). This topic dominates many family discussions, news stories, and headlines due to the risk that these driving skills have on others on the road. The Secretary of State Office in Michigan “receives 400 driver re-examination requests every month for drivers suspected to be unsafe, and the largest number, behind law enforcement, comes from family members” (USA Today). Although it is a hard discussion to introduce, families have a responsibility to address their concerns with their loved ones. Acknowledged as a popular and controversial topic, addressing the problem will ultimately prevent accidents and save
Senior citizens create risks when they drive in an unhealthy state. Diseases and other illnesses emerge because of old age. Medication prescribed by doctors can interact with other medicine and create side effects. As a person grows older, hearing often becomes impaired. This sense is essential to being an adequate and safe driver. Driving with these medical ailments can prove to be fatal to both the elderly and other motorists, and it can cause other drivers to be at risk for accidents. Testing the elderly to confirm their competence as drivers should be mandatory due to their failing health and for the safety for other motorists.
Telematics is a new method brought about by some insurance companies to charge premiums from clients based on the driving behavioral information collected by the device attached to cars. This new method breaks through the usual manner of pricing the insurance policy which involves insurers gathering statistical data and preparing it to check which people fit into what categories. They are then charged premiums accordingly. However, with the usual pricing strategy, there has been a problem of adverse selection (a market failure where bad products are more likely to get selected because of little information to either buyer or the seller), where the insurer does not fully know the risk that the client faces. Telematics can help against the issue of adverse selection depending upon how consumers open up to this policy, and the implementation of such policy may be more effective than the usual insurance pricing policies.
Law enforcement is responding to calls of reckless, aggressive, and unsafe driving while their resources may be better allocated elsewhere. If all drivers were responsible and safe in their driving, there would be less of a need for enforcement in this area. Aggressive and unsafe driving is a cost to society. According to the National Safety Council, “the economic cost to society due to speeding-related crashes is estimated to be $40.4 billion per year—$76,865 per minute or $1,281 per second.” This cost could be greatly reduced with safer more responsible
He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people, which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affects the products in two ways. Firstly, by basic demand, which builds consumer desires for old products of the company and secondly, refers to a new brand of the company.