EVC analysis
Miracle Shield Auto Finish is the best car polish and paint protection available anywhere. It is a substitute for regular wax and sold in a bottle that is adequate for one application to one car. Regular wax, which is sold in a container that is enough for two applications, costs about $4.00/container.
Miracle Shield protects and maintains the shine of a car's finish at least 20% longer than regular car wax. It needs 2 hours to apply Miracle Shield, the same as regular wax. The labor cost is $5.00 per hour.
Some cars have oxidized paint (no shine) at the time wax is to be applied, requiring cleaning with an oxidation cleaner before one can apply regular car wax. Oxidation cleaner costs $2.50 per bottle (good for one application) and needs 2 hours to be applied. However, Miracle Shield removes the oxidation and shines the car's surface in one step.
Miracle Shield can also be applied directly to a car's surface that is already highly oxidized.
1) Estimate the EVC of Miracle Shield Auto Finish for consumers whose cars require cleaning with an oxidation cleaner before applying regular car wax and consumers whose cars do not require an oxidation cleaner.
2) There are a number of factors that influence price sensitivity other than EVC. Consequently, it may the case the customers would not be willing to pay as much as this product is really worth. Please identify at least two other factors that could influence how much people would be willing to pay for this product and briefly state the marketing effort you can make to influence their willingness to pay or price sensitivity. Please refer to the textbook on the 8 factors affecting price sensitivity.