Research has determined that 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 bene 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.

Attribute Importance (constant sum scale assigning 100 points) Flavors 30 Texture 30 Package 40 100 Quality Perceptions (1: poor, 10 = excellent) Hood Breyers Flavors 6 5 Texture 7 Package 5 6 HI