Capsim Exam UPDATED ACTUAL Exam
Questions and CORRECT Answers
7. Successful managers will: - CORRECT ANSWER - a. Create a strategy
b. Coordinate company activities
c. Analyze the market and its competing products
10. What trend can be explicitly observed in the industry in which your company is operating? -
CORRECT ANSWER - c. Products become smaller and smaller.
11. On perceptual map, the percentage of customers interested in a product positioned outside of
the rough cuts of that product is - CORRECT ANSWER - 0%
13. Customers that want low prices and are willing to sacrifice miniaturization and performance
are in the - CORRECT ANSWER - c. low End segment.
14. Customers that want small products and are willing to sacrifice performance are in the -
CORRECT ANSWER - e. size segment.
20. The segments all drift to the lower-right section of the perceptual map. Why does this drift
take place? - CORRECT ANSWER - c. Customers want smaller and faster products.
22. When tracking market segments on the performance and size perceptual map, which segment
moves or "drifts" the slowest? - CORRECT ANSWER - b. Traditional
23. What happens to a product priced at $1 above or below the segment guideline when a
segment's product supply outstrips demand? - CORRECT ANSWER - c. It loses 20% of
its appeal.
,25. At what dollar amount above the segment guidelines is all consumer appeal lost? -
CORRECT ANSWER - b. $5
26. The prices in each segment - CORRECT ANSWER - a. drop by $0.50 each year.
27. MTBF in the segments should be - CORRECT ANSWER - MTBF (Performance) >
MTBF (High End)., and MTBF (Low End) < MTBF (Size).
29. Inside each fine cut circle, - CORRECT ANSWER - a. segments have an ideal spot
where demand is at its highest.
30. The Traditional ideal spot is - CORRECT ANSWER - c. near the center of its circle.
31. Increasing a product's reliability will result in which of the following changes to production
costs? - CORRECT ANSWER - b. Higher material cost
33. What happens to a product's Perceived Age when it is repositioned in R&D? - CORRECT
ANSWER - a. It is reduced by 50%.
34. The preferred product perceived age for each sector peaks at: - CORRECT ANSWER -
c. zero years for high end and seven years for low end.
37. What are the top buying criteria that low end customers most value? - CORRECT
ANSWER - b. Price
42. Which market segment places the most importance on price? - CORRECT ANSWER -
c. Low End
44. If you are marketing to High End customers, which criteria are most important to them in
order of importance? - CORRECT ANSWER - e. Positioning, Age, MTBF, Price
,49. When an R&D effort started in 2001 completes on September 15, 2002, the product revision
kicks in - CORRECT ANSWER - b. immediately upon completion.
50. The relative cost of a product's material cost increases as: - CORRECT ANSWER - c.
MTBF is raised.
51. R&D completion time can be shortened - CORRECT ANSWER - d. when a company
takes advantage of existing technology.
52. R&D completion time depends on - CORRECT ANSWER - a. number of projects in
R&D.
b. automation rating.
c. the age of the product.
53. Which Automation rating requires the longest time to reposition a product? - CORRECT
ANSWER - e. 10
56. Changing MTBF will: - CORRECT ANSWER - a. have no impact on Perceived Age.
58. If your team decides to introduce a new product, when should capacity and automation be
purchased? - CORRECT ANSWER - b. One round prior to product release
64. Assuming no additional product promotion, what percent of customers, reached through last
year's marketing campaign will carry over into the current year? - CORRECT ANSWER -
c. 67%
65. How is the strength of the sales channel measured? - CORRECT ANSWER - b.
Accessibility on a scale of 0 to 100%
, 66. If you drop your sales budget to zero, accessibility drops to 0% in how many years? -
CORRECT ANSWER -3
71. What is one drawback of increasing automation? - CORRECT ANSWER - a. The
product requires increased time/expense for subsequent short-move repositioning.
72. If you reduce automation in the production component of Marketing, you will: - CORRECT
ANSWER - b. incur a retooling cost.
75. Depreciation is calculated: - CORRECT ANSWER - e. over a straight line 15-year
period.
76. Which three factors drive labor cost? - CORRECT ANSWER - b. Wage and benefit
rates
c. Automation levels
d. Second shift/Overtime costs
79. For Wages, the negotiation Starting Position cannot be less than ____% or more than ____%
of the current contract. - CORRECT ANSWER - d. 80; 150
80. Labor Negotiation includes: - CORRECT ANSWER - a. hourly wage.
b. benefits.
c. profit sharing.
d. annual raise.
81. To run perfectly, all HR department managers should know that - CORRECT
ANSWER - c. all strike settlements should be halfway between the demand and the
negotiation ceiling.
Questions and CORRECT Answers
7. Successful managers will: - CORRECT ANSWER - a. Create a strategy
b. Coordinate company activities
c. Analyze the market and its competing products
10. What trend can be explicitly observed in the industry in which your company is operating? -
CORRECT ANSWER - c. Products become smaller and smaller.
11. On perceptual map, the percentage of customers interested in a product positioned outside of
the rough cuts of that product is - CORRECT ANSWER - 0%
13. Customers that want low prices and are willing to sacrifice miniaturization and performance
are in the - CORRECT ANSWER - c. low End segment.
14. Customers that want small products and are willing to sacrifice performance are in the -
CORRECT ANSWER - e. size segment.
20. The segments all drift to the lower-right section of the perceptual map. Why does this drift
take place? - CORRECT ANSWER - c. Customers want smaller and faster products.
22. When tracking market segments on the performance and size perceptual map, which segment
moves or "drifts" the slowest? - CORRECT ANSWER - b. Traditional
23. What happens to a product priced at $1 above or below the segment guideline when a
segment's product supply outstrips demand? - CORRECT ANSWER - c. It loses 20% of
its appeal.
,25. At what dollar amount above the segment guidelines is all consumer appeal lost? -
CORRECT ANSWER - b. $5
26. The prices in each segment - CORRECT ANSWER - a. drop by $0.50 each year.
27. MTBF in the segments should be - CORRECT ANSWER - MTBF (Performance) >
MTBF (High End)., and MTBF (Low End) < MTBF (Size).
29. Inside each fine cut circle, - CORRECT ANSWER - a. segments have an ideal spot
where demand is at its highest.
30. The Traditional ideal spot is - CORRECT ANSWER - c. near the center of its circle.
31. Increasing a product's reliability will result in which of the following changes to production
costs? - CORRECT ANSWER - b. Higher material cost
33. What happens to a product's Perceived Age when it is repositioned in R&D? - CORRECT
ANSWER - a. It is reduced by 50%.
34. The preferred product perceived age for each sector peaks at: - CORRECT ANSWER -
c. zero years for high end and seven years for low end.
37. What are the top buying criteria that low end customers most value? - CORRECT
ANSWER - b. Price
42. Which market segment places the most importance on price? - CORRECT ANSWER -
c. Low End
44. If you are marketing to High End customers, which criteria are most important to them in
order of importance? - CORRECT ANSWER - e. Positioning, Age, MTBF, Price
,49. When an R&D effort started in 2001 completes on September 15, 2002, the product revision
kicks in - CORRECT ANSWER - b. immediately upon completion.
50. The relative cost of a product's material cost increases as: - CORRECT ANSWER - c.
MTBF is raised.
51. R&D completion time can be shortened - CORRECT ANSWER - d. when a company
takes advantage of existing technology.
52. R&D completion time depends on - CORRECT ANSWER - a. number of projects in
R&D.
b. automation rating.
c. the age of the product.
53. Which Automation rating requires the longest time to reposition a product? - CORRECT
ANSWER - e. 10
56. Changing MTBF will: - CORRECT ANSWER - a. have no impact on Perceived Age.
58. If your team decides to introduce a new product, when should capacity and automation be
purchased? - CORRECT ANSWER - b. One round prior to product release
64. Assuming no additional product promotion, what percent of customers, reached through last
year's marketing campaign will carry over into the current year? - CORRECT ANSWER -
c. 67%
65. How is the strength of the sales channel measured? - CORRECT ANSWER - b.
Accessibility on a scale of 0 to 100%
, 66. If you drop your sales budget to zero, accessibility drops to 0% in how many years? -
CORRECT ANSWER -3
71. What is one drawback of increasing automation? - CORRECT ANSWER - a. The
product requires increased time/expense for subsequent short-move repositioning.
72. If you reduce automation in the production component of Marketing, you will: - CORRECT
ANSWER - b. incur a retooling cost.
75. Depreciation is calculated: - CORRECT ANSWER - e. over a straight line 15-year
period.
76. Which three factors drive labor cost? - CORRECT ANSWER - b. Wage and benefit
rates
c. Automation levels
d. Second shift/Overtime costs
79. For Wages, the negotiation Starting Position cannot be less than ____% or more than ____%
of the current contract. - CORRECT ANSWER - d. 80; 150
80. Labor Negotiation includes: - CORRECT ANSWER - a. hourly wage.
b. benefits.
c. profit sharing.
d. annual raise.
81. To run perfectly, all HR department managers should know that - CORRECT
ANSWER - c. all strike settlements should be halfway between the demand and the
negotiation ceiling.
