CAPSIM EVALUATION EXAM 2025/2026 QUESTIONS AND
SOLUTION RATED A+
✔✔customer survey score - ✔✔reflects how well a product meets is segment's buying
criteria; also influenced by company promotion and sales and accounts receivable
policies
✔✔prices - ✔✔these are set by Marketing at the beginning of the year and will not
change during the year
✔✔perfect customer survey score - ✔✔requires that the product be at the ideal position,
be priced at the bottom of the expected range, have the ideal age for that segment, and
have an MTBF at the top of the expected range
✔✔rough cut circle - ✔✔the outer limit of the segment; customers will not purchase a
product outside this boundary
✔✔fine cut circle - ✔✔customers prefer products within this circle
✔✔ideal spot - ✔✔the point in the heart of the segment where, all other things being
equal, demand is the highest
✔✔20 - ✔✔each segment has a $__ price range
✔✔zero - ✔✔at $10 outside the price range, demand for a product is __.
✔✔6000 - ✔✔each segment sets a _____ hour range for MTBF
✔✔.3 - ✔✔material costs increase by $___ for every additional 1000 hours of reliability
✔✔demand - ✔✔= your customer survey score divided by the sum of the scores
✔✔price, product, promotion, place, credit terms, availability - ✔✔what generates the
customer survey score?
✔✔seller's market - ✔✔if a segment's demand exceeds the supply of products available
for sale; customers will accept low-scoring products as long as they fall within the
segment's rough cut limits
✔✔R&D - ✔✔this department oversees invention and redesign, developing the
innovations needed to keep the company ahead of the competition; responsible for the
"product" portion of the 4 P's of marketing
, ✔✔repositioning project - ✔✔this moves an existing product from one location on the
Perceptual Map to a new location, generally down and to the right
✔✔higher - ✔✔the more advanced a product is, (smaller size and better performance)
the _____ the cost
✔✔higher - ✔✔the more reliable a product is, the ______ the cost
✔✔marketing - ✔✔this department drums up interest in the company's product or
services through a mix of activities, including advertising, public relations, and good old-
fashioned salesmanship; concerned with price, place, promotion, and sales forecasting
✔✔starting awareness - ✔✔= last year's awareness - (33% x last year's awareness)
✔✔25% - ✔✔adding a new product creates a buzz that creates this much awareness at
no cost
✔✔awareness - ✔✔driven by the promotion budget; persuades the customer to look at
your product; influenced by money spent on advertising and public relations
✔✔accessibility - ✔✔driven by the sales budget; governs everything during and after
the sale; influenced by money spent on distribution, order entry, and public relations
✔✔benchmark prediction - ✔✔use this to evaluate the impact your decisions will have
upon your product's appeal; expressed in units demanded
✔✔sales forecast - ✔✔your own prediction of units demanded
✔✔first-shift capacity - ✔✔the number of units that can be produced on a single
assembly line in a single year with a daily eight-hour shift
✔✔1.0 - ✔✔at an automation cost of ___, labor costs are highest
✔✔finance - ✔✔this department is concerned with five issues: acquiring the capital
needed to expand assets, establishing a dividend policy that maximizes the return to
shareholders, setting accounts payable and accounts receivable policy, driving the
relationship between debt and equity, and selecting and monitoring performance
measures that support your strategy
✔✔capital - ✔✔can be acquired through current debt, stock issues, bond issues, or
profits
✔✔after - ✔✔finance decisions should be made _____ all other departments enter their
decisions
SOLUTION RATED A+
✔✔customer survey score - ✔✔reflects how well a product meets is segment's buying
criteria; also influenced by company promotion and sales and accounts receivable
policies
✔✔prices - ✔✔these are set by Marketing at the beginning of the year and will not
change during the year
✔✔perfect customer survey score - ✔✔requires that the product be at the ideal position,
be priced at the bottom of the expected range, have the ideal age for that segment, and
have an MTBF at the top of the expected range
✔✔rough cut circle - ✔✔the outer limit of the segment; customers will not purchase a
product outside this boundary
✔✔fine cut circle - ✔✔customers prefer products within this circle
✔✔ideal spot - ✔✔the point in the heart of the segment where, all other things being
equal, demand is the highest
✔✔20 - ✔✔each segment has a $__ price range
✔✔zero - ✔✔at $10 outside the price range, demand for a product is __.
✔✔6000 - ✔✔each segment sets a _____ hour range for MTBF
✔✔.3 - ✔✔material costs increase by $___ for every additional 1000 hours of reliability
✔✔demand - ✔✔= your customer survey score divided by the sum of the scores
✔✔price, product, promotion, place, credit terms, availability - ✔✔what generates the
customer survey score?
✔✔seller's market - ✔✔if a segment's demand exceeds the supply of products available
for sale; customers will accept low-scoring products as long as they fall within the
segment's rough cut limits
✔✔R&D - ✔✔this department oversees invention and redesign, developing the
innovations needed to keep the company ahead of the competition; responsible for the
"product" portion of the 4 P's of marketing
, ✔✔repositioning project - ✔✔this moves an existing product from one location on the
Perceptual Map to a new location, generally down and to the right
✔✔higher - ✔✔the more advanced a product is, (smaller size and better performance)
the _____ the cost
✔✔higher - ✔✔the more reliable a product is, the ______ the cost
✔✔marketing - ✔✔this department drums up interest in the company's product or
services through a mix of activities, including advertising, public relations, and good old-
fashioned salesmanship; concerned with price, place, promotion, and sales forecasting
✔✔starting awareness - ✔✔= last year's awareness - (33% x last year's awareness)
✔✔25% - ✔✔adding a new product creates a buzz that creates this much awareness at
no cost
✔✔awareness - ✔✔driven by the promotion budget; persuades the customer to look at
your product; influenced by money spent on advertising and public relations
✔✔accessibility - ✔✔driven by the sales budget; governs everything during and after
the sale; influenced by money spent on distribution, order entry, and public relations
✔✔benchmark prediction - ✔✔use this to evaluate the impact your decisions will have
upon your product's appeal; expressed in units demanded
✔✔sales forecast - ✔✔your own prediction of units demanded
✔✔first-shift capacity - ✔✔the number of units that can be produced on a single
assembly line in a single year with a daily eight-hour shift
✔✔1.0 - ✔✔at an automation cost of ___, labor costs are highest
✔✔finance - ✔✔this department is concerned with five issues: acquiring the capital
needed to expand assets, establishing a dividend policy that maximizes the return to
shareholders, setting accounts payable and accounts receivable policy, driving the
relationship between debt and equity, and selecting and monitoring performance
measures that support your strategy
✔✔capital - ✔✔can be acquired through current debt, stock issues, bond issues, or
profits
✔✔after - ✔✔finance decisions should be made _____ all other departments enter their
decisions
