Hercules Fitness makes a line of fitness machines. It recently decided to enter the elliptical trainer market. The company designed a trainer that would cost the customer $995. Hercules’s target customer is the moderately fit, so, the trainer has reasonable resistance and multiple settings. Another goal was to make it of moderate size so it could fit into most rooms. Below are the results of the customer panels Hercules ran to evaluate its design:

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 Hercules Fitness have a problem with its design? How many customers appear happy with the cost and performance features of the product?

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Customer# Best Price Ese of Use Size Program Variety $695.00 Low Too large Too few Moderate Okay Too large 2 $750.00 Okay 3 $695.00 Low Too few High Okay Too large Too large 4 $800.00 Too few Moderate Okay Too few $750.00 $650.00 Low High Okay Too large $850.00 Okay 8 $695.00 Low Too few