Attribute Importance & Performance for Customer-Based Strategy
Firms gain a competitive advantage by differentiating themselves on benefits that are important to their customers, and on which their performance is perceived as being better than competitors. Thus, Walmart positions itself on low price because low price is important for its customers’ overall satisfaction, and because Walmart’s target customers are more satisfied with Walmart on low price than its competitors.
This note describes the concept of attribute importance, different methodologies to measure attribute importance, and perceived performance. The concept is illustrated using the example of dealership service for an automotive company…
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