Blue Goose Kitchenware produces a wide variety of kitchen tools. It has just developed the Handy Opener, which automatically opens jars of various sizes. The target price is $8.95, and Blue Goose plans to make it available in white or black. The company uses customer panels to test its designs and cost parameters prior to going into main production. Here are the results from the eight customer panels it ran for the Handy Opener:

REQUIRED:

a. What is the average price customers are willing to pay?

b. Compared to the target price, what is the price gap?

c. Looking at the responses to performance questions, does Blue Goose have a problem with its design? How many customers appear happy with the cost and performance features of the product?

Transcribed Image Text:

Customer# Best Cost Ense of Use Color Quality Feel $5.95 Medium Okay More colors 1 Medium 2 $9.95 High High 3 $6.95 Medium Okay High 4 $6.95 Medium Nore colors Medium 5 $5.95 Low Nore colors Low High No black High Medium 6 $7.95 $6.95 Medium Okay 8 $5.95 Low More colors Medium