Aster Technologies Inc. ,a firm that sells inventory management software,has labor savings of 20% (0.33),a product warranty of five years (0.42),a competitive price (1.0),and no customer callbacks (0.83).Calculate its customer value index (CVI).
A)-0.26
B)0.26
C)0.92
D)1.08
E)2.58

Question

Quizplus · Accepted Answer

The Customer Value Index (CVI) is calculated by summing the weighted values provided for each factor: 0.33 (labor savings) + 0.42 (product warranty) + 1.0 (competitive price) + 0.83 (no customer callbacks) = 2.58.