Product Attributes Model: A Tool for Evaluating Brand Positioning

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.