Make decisions on service levels – level of performance firm plans to offer on each attribute
Easily quantified attributes are easier to understand – e.g.,vehicle speed, physical dimensions
Qualitative attributes subject to individual interpretation – e.g., physical comfort, noise levels
Can often segment customers according to willingness to trade off price versus service level:
Price-insensitive customers willing to pay relatively high price for high levels of service
Price-sensitive customers look for inexpensive service with relatively low performance