Jack works for a polymer firm that has developed a new insulation material which has thepotential to make newly constructed homes more energy efficient. He is asked to develop a“voice of the customer” analysis.

a)[2 pts] Describe how many interviews he ought to plan for, whom he should interview,and in what sequence.

b)[1 pt] Jack’s colleague suggests he talk to the company’s salespeople to get insights morequickly than doing a VOC analysis. State whether you agree or disagree and why.

c)[3 pts] Suppose the new product can reduce a typical home’s energy bill by 15% per year(and take the typical annual energy bill for a home as $2500). It is expected that 1000 sqft of this product would suffice for installation in a single home. It is further expectedthat builders can charge a $1000 premium on the home price if this material is used dueto its brand value. Suppose the competing product currently being used is priced at$0.20 per square foot. What is the value-in-use for this new product per square foot(i.e., the theoretical maximum price that the firm can charge)?

d)[2 pts] When interviewing customers, one could ask them directly what new productsthey need. State two downsides of asking such a question.

e)[2 pts] Suppose that the cost to manufacture the new product is $0.14 per square foot.State a price that you would suggest to Jack for this new polymer material, and explainwhy (use the information from part c).