Question

In: Economics

Does Tesla’s insurance program keep customers in the “ecosystem” and make them more likely to buy...

Does Tesla’s insurance program keep customers in the “ecosystem” and make them more likely to buy products from the brand in the future? Explain why.

Solutions

Expert Solution

The new insurance policy of Tesla will take customers into the ecosystem and their decision to provide lower cost insurance to the customers will potentially make them more to buy products from the brand in future.

The Tesla motors CEO Elon Musk is stepping into the insurance business as an attempted to accomplish what the company has struggled from past

The Company claims that they will begin offering insurance very soon that taps internal data from auto-pilot driver assist to reduce rates.
The product would "be much more compelling than anything else out there." Musk said on the quarter earnings call of Tesla.

The experts are also agreeing with that, the company can provide lower price because the auto pilot system will decrease the rate of collision claims.

By providing lower insurance rate to their new product they can take the customers into the ecosystem and they can make their unique selling point in the market.

Before stepping into this new insurance business the Tesla's models were among the top vehicles to insure in the U.S. Obviously this change will make them more familiar with customers and make them more likely to buy their products in the future.


PLEASE GIVE AN UP VOTE IF YOU ARE SATISFIED WITH MY ANSWER. LEAVE FEEDBACK IN THE COMMENT BOX. THANK YOU!


Related Solutions

Does the complexity of the financial sector make a recession more likely or does it help...
Does the complexity of the financial sector make a recession more likely or does it help spread risk? Is the US financial sector still dominant or is it being challenged by other countries?  Describe the current strength of the Chinese financial system?
Why does it not make sense to make workers/employees buy their own insurance? Please answer this...
Why does it not make sense to make workers/employees buy their own insurance? Please answer this for me with mutiple explanations! I need ideas to write an essay ! Thanks!
Explain how Tesla’s referral program incentivizes owners to get others (i.e. friends and family) to buy...
Explain how Tesla’s referral program incentivizes owners to get others (i.e. friends and family) to buy Tesla products as well. What is 1 way Tesla could improve this program to make it more effective?
1- The Affordable Care Act benefited health insurance companies by providing them with more paying customers...
1- The Affordable Care Act benefited health insurance companies by providing them with more paying customers and new government subsidies. True False 2- Immigration reform efforts are complicated by the complexity and interconnectedness of the issues raised by immigration policy. True False 3- Foreign policy conflicts tend to center around differences in material interests between competing groups. True False 4- Since the end of the Cold War, U.S. foreign policymakers have increasingly embraced reductions in tariffs and other trade barriers....
Why does college education keep getting more expensive? If you were in a position to make...
Why does college education keep getting more expensive? If you were in a position to make a change what would you recommend to change the tuition challenge?
Influence Insurance Co. is interested in purchasing reinsurance which will allow them to keep their overall...
Influence Insurance Co. is interested in purchasing reinsurance which will allow them to keep their overall loss ratio for 2020 below 110%. Given this information, which type of reinsurance would BEST address this objective? aggregate excess of loss per occurrence / catastrophe excess of loss predetermined maximum excess of loss per risk / per policy excess of loss
A survey found that 32​% of consumers from a Country A are more likely to buy...
A survey found that 32​% of consumers from a Country A are more likely to buy stock in a company based in Country​ A, or shop at its​ stores, if it is making an effort to publicly talk about how it is becoming more sustainable. Suppose you select a sample of 200 respondents from Country A. Complete parts​ (a) through​ (d) below. A. What is the probability that in the​ sample, fewer than 32​%are more likely to buy stock in...
A survey found that 25% of consumers from a Country A are more likely to buy...
A survey found that 25% of consumers from a Country A are more likely to buy stock in a company based in Country​ A, or shop at its​ stores, if it is making an effort to publicly talk about how it is becoming more sustainable. Suppose you select a sample of 200 respondents from Country A. Complete parts​ (a) through​ (d) below. ​ What is the probability that in the​ sample, fewer than 25% are more likely to buy stock...
When a company lets customers buy on credit, the company attracts more customers. Allowing sales on...
When a company lets customers buy on credit, the company attracts more customers. Allowing sales on credit is a part of doing business. However, it is not without risk! The result may be attracting some customers who will never pay the amount they owe to the business. When this money is not paid, the business has an uncollectible account which must be written-off. If a business has too many uncollectible accounts, the business suffers and the end result can spell...
C++ program, I'm a beginner so please make sure keep it simple Write a program to...
C++ program, I'm a beginner so please make sure keep it simple Write a program to read the input file, shown below and write out the output file shown below. Use only string objects and string functions to process the data. Do not use c-string functions or stringstream (or istringstream or ostringstream) class objects for your solution. Input File.txt: Cincinnati 27, Buffalo 24 Detroit 31, Cleveland 17 Kansas City 24, Oakland 7 Carolina 35, Minnesota 10 Pittsburgh 19, NY Jets...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT