An Empirical Investigation of the Value Index: Linking Perceived Importance to Satisfaction
Department
Sociology and Criminal Justice
Document Type
Article
Publication Date
2003
Abstract
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.
Journal Title
Southwest Business and Economics Journal
Volume
11
First Page
17
Last Page
28
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