You have been hired as a consultant for Kyle Hoffman, whose company designs Web sites. Hoffman has asked for your advice in assessing customers’ perceptions of the value of its products. You collect the following information about Hoffman’s design of a Web site for a small co-op grocery store.

Value Number Activity Description Cost (5 = highest value)

1 Marketing and design ila Prepare contract with the customer $ 5,000 4

(the grocery store)

12 Perform marketing research for customer 8,000 5 ile Hoffman purchases hardware, software, and 6,000 infrastructure for the customer's site 1.4 Program and construct site 10,000 s8) Hoffman performs payroll services, personnel 16,000 2 administration, and other management functions for itself 1.6 Hoffman provides office space for its workers 6,000 1 Required

a. Explain the sources of the customer values. Do you agree with all of the customer values? Why or why not?

b. Create a table similar to Exhibit 54 for these activities, and prepare a memo to Hoffman’s management summarizing your results.