Price and Value Communication

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Words: 260

Pages: 2

Category: Business and Industry

Date Submitted: 09/16/2012 02:45 PM

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The advertisement I chose is with USAA (United Services Automobile Association) which is a financial services company founded in 1922 by retired Army officers. The company was formed due to military personnel being deemed as high risk individuals to insure. USAA is unique because it utilizes direct marketing and uses employees to provide services to members rather than agents. USAA provides services in banking, financial and insurance. The ad that I chose shows a soldier vigilantly on patrol with the words, “Military values, Member-driven service” written clearly across the ad. This evokes a very strong sentiment that USAA holds dear to the military values of loyalty, service and self-sacrifice. Additionally the ad’s mention of “Member-driven service” expresses that USAA’s services are strictly focuses on the member’s needs.

Although business services and life insurance tend to fall in the high complex experience goods, the ad also seems to evoke a strong psychological benefit associations and assurances. USAA’s premiums charges can be justified by the fact that their values of dedication and loyalty to members are similar to military culture that is not replicated elsewhere. USAA’s understanding of military culture and values create a linkage between the differential performance and affects subjective benefits to justify their pricing.

Military members who often face mobilizations and deployments have unique concerns and needs that most other financial services may not be able to accommodate. USAA’s emphasis of its values and services provided around the military member’s needs differentiates itself from competitors as well as creates the psychological assurance towards USAA’s products.