Originally published on WalletHub on January 26, 2023
UCF Associate Professor of Marketing Axel Stock, Ph.D. was quoted in WalletHub’s review of Farmers Insurance Review. To access the review in its entirety, click here.
What should consumers take away from Farmers’ choice of celebrity endorsers (J.K. Simmons) and sponsorships (e.g. Farmers Insurance Open golf tournament), as well as its marketing more generally?
One way to think about significant Marketing expenditures like celebrity endorsements and sponsorships is that they are a signal to uninformed consumers about the high quality of a product offered which a low-quality alternative brand is unable to match. In the example of Farmers’ it means that because the company is able and willing to spend this amount of money on Marketing, consumers can be more ensured that Farmers’ will also provide a quality insurance product and experience.
Should the number of discounts Farmers offers sway potential customers’ decisions?
Discounts are often a strategy to attract customers to switch insurance providers. However, instead of looking at the percentage discounts offered, consumers should examine final premiums for comparable insurance coverages of different providers. Only then they can make the best decision in terms of price.