The "Gourmet" segment for frozen yogurt places an importance of about 70% on Quality and 30% on Price.  The non-price quality attributes for "Gourmet" segment are: flavors, creamy texture and protective packaging.  (shelf life in freezer).  The two main brands in the market are Hoods and Breyers.  Hood belief that it "owned" the value space allowed it to charge a slightly higher price than Breyers. The average price of Hoods is $3.59, while Breyers is $3.49.  Contribution margins average 35%.  Although Hoods historically has been perceived to be the quality leader in the category, it has been losing share to Breyers. This has led management to believe there may be a "value" problem.  Consequently, management commissioned a study to understand value perception in the market place.  The results are shown below.

How inferior is Hoods value position (CVA)?

 

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Attribute Importance (constant sum scale assigning 100 points) Flavors Texture Package 40 Flavors 30 Texture 30 Quality Perceptions (1 = poor, 10 = excellent) Package 100 Hood 6 7 5 Breyers 5 7 6 Based on this information it was determined that Hood had a disadvantage on Quality of about 1% (MPQR = .9933) and in light of the average prices was at a disadvantage on price, as well, about 2.8% (RPS=1.028). Attribute Importance (constant sum scale assigning 100 points) Flavors Texture Package 40 Flavors 30 Texture 30 Quality Perceptions (1 = poor, 10 = excellent) Package 100 Hood 6 7 5 Breyers 5 7 6 Based on this information it was determined that Hood had a disadvantage on Quality of about 1% (MPQR = .9933) and in light of the average prices was at a disadvantage on price, as well, about 2.8% (RPS=1.028).

Answer rating: 100% (QA)

To calculate the Customer Value Advantage CVA for Hoods in the Gourmet segment of frozen yogurt we c... View the full answer