Product Attributes Model: A Tool for Evaluating Brand Positioning

TLDR

Brand positioning seeks sustainable competitive advantage by shaping consumer perceptions of product attributes, and while perceptual maps are commonly used, the product attributes model incorporates attribute ratings, budget constraints, and indifference curves to evaluate positioning. This paper aims to show how the product attributes model aids managers in understanding the strategic implications of positioning decisions and demonstrates its application with an example. The authors apply the product attributes model, which integrates attribute ratings, budget constraints, and indifference curves, to assess brand positioning. The analysis shows that, unlike perceptual maps, the product attributes model can incorporate price effects into the assessment of brand positioning.

Abstract

A brand’s positioning is designed to develop a sustainable competitive advantage on product attribute(s) in the consumer’s mind. Perceptual maps are commonly used to evaluate a brand’s positioning. Another tool from the economics literature, the product attributes model (based on Lancaster 1966,1979), utilizes three components: attribute ratings, budget constraint, and indifference curves. The key advantage of this analysis over perceptual maps is the ability to incorporate the impact of price into assessment of the brand’s positioning. This paper discusses how the product attributes model helps managers understand the strategic implications of positioning decisions and provides an example of its use.