Dr. Garry Smith talks Allstate Philanthropy on Wallet Hub

Allstate Insurance Review

Dr. J. Garry Smith

Clinical Associate Professor of Marketing, G. Brint Ryan College of Business, University of North Texas

Why do you think Allstate is so philanthropic (e.g. the Allstate Foundation)?

Allstate’s Shared Purpose includes the phrase, "... and work with local and national partners to improve communities." Their philanthropic efforts are consistent with this statement. However, there are other factors at play that make this a wise move by Allstate. First, their focus on breaking the cycle of domestic violence, improving the education of non-profit leaders, inspiring youth to become the leaders of the future, and improving wealth opportunities for racial minorities through attractive career opportunities correlates strongly with the Allstate slogan, "(Y)ou’re in good hands with Allstate." Each of the four focal areas represents "good" societal objectives. Thus, Allstate’s actions match their words (slogans), and lend a strong degree of authenticity to their image. Authenticity is a valuable commodity for any commercial organization, and post Baby Boomer generations value authenticity in businesses highly.

The commitment to improving society also resonates with consumers by allowing Allstate’s customers to feel they are not only benefiting themselves when they purchase an Allstate insurance policy, but they are also helping those less fortunate. Again, reinforcing the "good" aspect of the "good hands" slogan mentioned above. These slogans and actions provide a reinforced and consistent image for Allstate to adhere to and help guide the efforts of their employees. This strengthens the organizational culture of Allstate and makes Allstate more attractive to potential customers.

Should the number of discounts Allstate offers sway potential customers' decisions?

In general, the number of discounts offered really should not sway consumers’ purchase decisions when it comes to purchasing insurance. The quality of customer service, the financial strength of the insuring firm, responsiveness to customer claims and emergencies, and integrity in fulfilling insurance obligations should be of primary importance. The focus should be on overall value, not simply a discrete number of discounts. However, during periods of high inflation and economic uncertainty, many consumers may be more responsive to an increased number of discounts offered since they may use that as a proxy for value offered.

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