| John Spacey, March 17, 2016 updated on January 05, 2017
A figure of merit is a particular metric that is commonly used to judge the value of a product or service. For example, fuel efficiency ratings such as Miles Per Gallon (MPG) are commonly used to compare cars. A figure of merit allows customers to qualitatively compare products and services. As a result, it tends to lead to intense competition to improve products and service.
|Definition||A number that is commonly used to compare a product or service.|
|Examples||Battery life in hours for mobile devices.
Bandwidth of an internet connection.Clock rate of a CPUCalories in food.|
|Related Concepts||Business Metrics|
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