MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth. Our Chart of the Week is dedicated to sharing RDE results for a variety of categories.  If you have questions about your category – give us a call.

RDE Assessment among 500 men and women for eight major brands in the Automobile Insurance category led to the following insights:

RDE Assessment among 500 men and women for eight major brands in the Automobile Insurance category led to the following insights:

• Almost all brands score highest on the emotion dimension, perhaps because the category is heavily advertised with often whimsical copy that is light on functional details but seemingly designed to build an emotional connection with viewers.

• Market leader State Farm is unsurprisingly viewed as most relevant, with this position driven more by emotional connection (after all, who doesn’t want a Good Neighbor) than differentiation.

• USAA is the one brand where differentiation is strongest of the three RDE dimensions, perhaps due to the brand offering its services to past and present members of the Armed Forces.

• In addition, those choosing USAA in brand preference collection had by far the fastest reaction times, revealing a very high degree of certainty among those preferring USAA.

• The smallest brands, Liberty Mutual and Farmers, demonstrate by far the largest gap between emotion and relevance (the RDE dimension most strongly related to preference and market share).  These heavily advertised brands have succeeded in emotionally engaging consumers with the hope of being top-of-mind when purchase decisions are made in this high loyalty/low involvement category.

• The RDE composite is strongly correlated to brand preference in this category.  AAA is something of an exception, with relatively lower preference.  This is likely due to AAA being known foremost for Automotive and Travel Services with automobile insurance only offered through some AAA Affiliates.