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Honda Accord owners are fiercely loyal to their auto choice. While interviewed by representatives of Honda number one reason for this continued brand attraction is solid engineering that allows the Accord to operate trouble-free for more miles than average car. In fact, reliability was rated as the most important perceived product benefit for automobiles, with a relative importance weight of 40. The Accord rated 8 out of 10 on this measure whereas three other competitors studied had a rating of 7, 6 and 5, correspondingly. In addition a Consumer Reports study of mid-size sedans rated the Accord 95 in performance tests, at a customer price of $22,000. The average performance of all mid-size sedans tested by Consumer Reports was 80, and the average price was $20,000.
1. For which life cycle cost has Honda created an economic value for its customers?
2-Illustrate what is the Accord's relative value against the other sedans tested?
3-Illustrate what is the Accord's perceived relative advantage with respect to reliability?
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