4.4 Price-Performance Trade-Offs and Customer Value (Figures 4-28 to 4-30)

Analysis
Performance Factor
Taste Quality
Values  
Poor
0.00
 
Avg.
0.80
 
Good
1.00
 
Range/Percentage
1.00
52
Service Quality
Values  
Poor
0.33
 
Avg.
0.67
 
Good
0.80
 
Range/Percentage
0.47
24
Hamburger Price
Values  
25% Lower
0.80
 
Avg.
0.67
 
25% Higher
0.33
 
Range/Percentage
0.47
23
 
1.93
100
 
Poor
Avg.
Good
 
Poor
Avg.
Good
 
25% Lower
Avg.
25% Higher
Positioning
Taste Quality
Service Quality
Hamburger Price
Value
Competitor  
Preference Value
0.31
0.44
0.31
1.06
Company  
Preference Value
1.00
0.56
0.31
1.87

Instruction: Input the positioning to competitor and company and corresponding preference values from table above.

Value Pricing Strategy VP1 VP2 VP3
Company Price
25% Lower
Avg.
25% Higher
Competitor Price
Avg.
Avg.
Avg.
Total Value
2.13
1.99
2.06
Value Advantage
1.07
0.93
1.00
Percent Value Advantage
50
47
49
Setup
Performance Factor Low Mid High
Taste Quality
Poor
Avg.
Good
Service Quality
Poor
Avg.
Good
Hamburger Price
25% Lower
Avg.
25% Higher

Instruction: Name each performance factor and specify three levels of performance for each going from low to high.

Starting Data
Option A
8
Taste Quality
None
Service Quality
Poor
Hamburger Price
25% Lower
Option B
5
Taste Quality
Average
Service Quality
Poor
Hamburger Price
Avg.
Option C
6
Taste Quality
Good
Service Quality
Poor
Hamburger Price
25% Higher
Option D
9
Taste Quality
Poor
Service Quality
Average
Hamburger Price
25% Higher
Option E
3
Taste Quality
Average
Service Quality
Average
Hamburger Price
25% Lower
Option F
2
Taste Quality
Good
Service Quality
Average
Hamburger Price
Avg.
Option G
7
Taste Quality
Poor
Service Quality
Good
Hamburger Price
Avg.
Option H
4
Taste Quality
Average
Service Quality
Good
Hamburger Price
25% Higher
Option I
1
Taste Quality
Good
Service Quality
Good
Hamburger Price
25% Lower

Instruction: Rank these options from 1 (most preferred) to 9 (least preferred). Place the preference in the blue cell next to that option.

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