Chapter $2$ Case Study$-$ Miracle Shield Auto Finish

Purpose:

This activity will give you an opportunity to analyze a case study. You will determine economic value for a carwash company. You will also discuss the factors that changes the service value of the company.

Instructions:

Review this week$$s Reading and Resources.

Read the case $$Miracle Shield Auto Finish$.$

Create a case analysis report that addresses the case study and includes the followings:

Making any reasonable assumptions that you need to make, estimate the economic value of Miracle Shield. $($You may assume that Miracle Shield is the only alternative to car wax available in this market. You may assume a labor cost of a person's leisure time who waxes his$/$her own car. Ignore the time value of money.$)$

There are a number of factors that influence price sensitivity other than "economic value." Consequently, it may be the case that customers would not be willing to pay as much as this product is really worth, or may pay even more than it is worth according to economic value analysis. Please identify at least two other factors that could influence how much people would be willing to pay for this product. Explain how and why you think these other factors might affect willingness$-$to$-$pay in this case.

Conclude your report with your biggest takeaway related to economic value of a service company.

Include at least $(2)$ in$-$text citations to support your report. You must include at least $(1)$ external sources such as textbooks, articles, or peer$-$reviewed journals to support and validate your ideas. You are strongly encouraged to use the OLLUSA library when appropriate.

APA formatting is required.