Final answer:
Competitiveness metrics are used to compare businesses or products in terms of performance, quality, and brand image, playing a pivotal role in strategic decision-making in a competitive market.
Step-by-step explanation:
The index that a business or product uses to measure against another similar business or product with respect to product performance, service quality, and brand image is known as Competitiveness metrics. These metrics are a crucial part of understanding a company's position within a competitive market. They help businesses identify their core competencies, which refers to the unique advantage that a business has by focusing on a narrow range of products or services. Competitiveness metrics can influence strategic decisions and highlight areas where a business can enhance its market share, service quality, and overall brand reputation.