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Asset Turnover Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 174 How Customers Select Among Competitive Suppliers ? Customer buys on value ? Value equals quality relative to price ? Quality includes all nonprice attributes Product Customer Service ? Quality, price, and value are relative Value Quality Price Customer service Product Source:Bradley T. Gale, Managing Customer Value (New York: The Free Press, 1994), p. 29. Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 175 Creating Value That Customers Can See Understanding customer needs in a welldefined market Superior quality in areas that matter to customers Marketperceived quality Exceptional customer value Business results Profitability, growth, and shareholder value Advertising and other marketing munications Low “cost of quality” and overall cost leadership Effective design and quality control Source:Bradley T. Gale, Managing Customer Value (New York: The Free Press, 1994), p. 19. Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 1713 How Logistics Affects EVA Working Capital Fixed Assets Transportation Costs Warehousing Costs Lot Quantity Costs Information System Costs Non Cost of Money Components of Inventory Carrying Cost Equipment/Vehicles Accounts Receivable Land/Facilities (owned) Inventory Equipment/Facilities