An Empirical Investigation of the Value Index: Linking Perceived Importance to Satisfaction
Sociology and Criminal Justice
Modern management accounting systems have evolved to support total quality management. One example of this is target costing – a planning tool that incorporates product cost into the design process. To guide the value engineering efforts of the target costing process, the value index links the importance of product features desired by the customer to the functional components designed into the product. To add value, the product must be designed in such a way that customer satisfaction is increased. This study shows that the value index can be used to guide the design process so that higher levels of customer satisfaction are attained.
Southwest Business and Economics Journal
Calk, R. & Cheurprakobkit, S. (2003). An empirical investigation of the value index: Linking perceived importance to satisfaction. Southwest Business and Economics Journal, 11, 17-28.