Full Text

product attributes model

Kent A. Jones


Extract

Developed by Kelvin Lancaster (1971) , the product attributes model sets out to explain consumer behavior as a process of choosing bundles of product characteristics or attributes inherent in goods and services, rather than simply choosing bundles of goods or services themselves. The basic assumption of the model is that the consumer's choice is based on maximizing utility from the product attributes subject to a budget constraint ( see utility maximization ). The model is particularly useful in analyzing differentiated product markets, in which specific products that are substitutes for each other are distinguished by their embodiment of a specific set of characteristics. For purposes of exposition, a two‐dimensional graph reveals the model's main features (see Douglas, 1992 , for textbook treatment and examples), and links it to the traditional budget constraint and indifference curve analysis of consumer behavior ( see indifference curves ). Figure 1 shows three specific products, each offering a specific amount of attribute X and attribute Y in constant proportions. Each unit of product A contains X a of attribute X and Y a of attribute Y , for example. Similarly, each unit of products B and C offers the attribute bundles ( X b , Y b ) and ( X c , Y c ), respectively. The attributes could represent calories ( X ) and vitamin content ( Y ) for competing ... log in or subscribe to read full text

Log In

You are not currently logged-in to Blackwell Reference Online

If your institution has a subscription, you can log in here:

 

     Forgotten your password?

Find out how to subscribe.

Your library does not have access to this title. Please contact your librarian to arrange access.


[ access key 0 : accessibility information including access key list ] [ access key 1 : home page ] [ access key 2 : skip navigation ] [ access key 6 : help ] [ access key 9 : contact us ] [ access key 0 : accessibility statement ]

Blackwell Publishing Home Page

Blackwell Reference Online ® is a Blackwell Publishing Inc. registered trademark
Technology partner: Semantico Ltd.

Blackwell Publishing and its licensors hold the copyright in all material held in Blackwell Reference Online. No material may be resold or published elsewhere without Blackwell Publishing's written consent, save as authorised by a licence with Blackwell Publishing or to the extent required by the applicable law.

Back to Top