A product's ________ is the way the product is defined by consumers on important attributes.

The correct answer is "Position." A product's position refers to how it is perceived in the minds of consumers relative to competing products, specifically based on key attributes that are important to them. This includes factors such as price, quality, features, and benefits. Positioning involves establishing a clear and distinct image of the product in the consumer's mind, helping to differentiate it in a competitive marketplace. By effectively communicating its unique qualities and advantages, a product can carve out a specific niche that appeals to targeted consumer segments.

In contrast, value relates to the perceived benefit that consumers believe they receive from the product compared to its cost. While this is important, it does not encompass the overall definition or perception that consumers form about the product. Image is often associated with the consumers' overall impression or identity of a brand or product, rather than specific attributes. Quality refers to the inherent characteristics of a product or service that provide the ability to satisfy stated or implied needs, which does not fully capture how consumers define the product in relation to others based on attributes. Thus, the concept of positioning is crucial for understanding how consumers internally categorize and evaluate products.