CAPSTONE SIMULATION EXAM
QUESTIONS WITH CORRECT
ANSWERS
Industry Conditions - Correct Answers -Traditional, Low End, High End, Performance,
and Size
Buying Criteria - Correct Answers -Price, Age, MTBF, and Positioning
Positioning and price criteria change every year.
Age and MTBF criteria always remain the same.
Positioning - Correct Answers -Size and Performance
Perceptual Maps - Correct Answers -Position of each each product is placed to
determine customer demands.
Over time, your customers expect products that are smaller and faster, causing
segments to drift each month, at different rates.
Customer Survey Score - Correct Answers -Drives product demand; higher score
outsells lower score.
Evaluates each product against the buying criteria.
Scores are calculated each month.
Demand in any month is your score divided by the sum of the competitors scores
Perfect Customer Survey Score - Correct Answers -Is positioned at the ideal spot (only
once a year)
Is priced at the bottom of the expected range
Has the ideal age for that segment (only once a year)
Has an MTBF specification at the top of the expected range
Rough Cut Circle - Correct Answers -Dashed outer circle; Customers will not purchase
a product outside of this circle; products here will have reduced customer survey scores
Fine Cut Circle - Correct Answers -Solid inner circle; Heart of the segment; Customers
prefer products within this circle
Ideal Spot - Correct Answers -Point in the heart of the segment where, all other things
being equal, demand is highest.
, Perfect world Segment Movement - Correct Answers -Product positioned in front of the
ideal spot in January, on top of the ideal spot in June, and trail the ideal spot in
December; then it would complete an R&D project to jump in front of the ideal spot for
next year.
Price Score - Correct Answers -Every segment has a $10.00 price range; customers
prefer toward the bottom of the range; Sensors priced $5 above or below the segment
guidelines lose 20% of their customer survey score for each dollar above or below. At
$5, demand = 0; As price goes down, price score goes up
MTBF Score - Correct Answers -Number of hours a product is expected to operate
before it malfunctions; customers prefer products towards the top of the range; Each
segment as a 5,000 hour range; products lose 20% of their demand score for every
1,000 hours below the guideline; customer survey score improve as MTBF increases.
Age Score - Correct Answers -A product will never be too young or too old to be
considered for purchase; preferred age differs based on customer segment
What generates Customer Survey Score? - Correct Answers -4 P's - Product, price,
place, and promotion
Product and price = buying criteria
Promotion budget builds awareness
Sales budget builds accessibility
Credit terms = expressed by A/R
Availability = addresses inventory shortages
A/R - Correct Answers -Sets the amount of time customers have to pay for their
purchases
Stocks out - Correct Answers -Product generates high demand but runs out of inventory
Seller's Market - Correct Answers -Customers will accept low-scoring products as long
as they fall within the segment's rough cut limits; if industry capacity cannot meet
demand for the segment, then poor products will stock out as customers search for
anything that will meet their needs.
Research and Development - Correct Answers -Oversees invention and redesign;
"product"
All R&D projects begin on January 1
R&D in Marketing addresses: - Correct Answers -The positioning of each product inside
a market segment
The number of products in each segment
The age of your products
The reliability (MTBF rating) of each product
QUESTIONS WITH CORRECT
ANSWERS
Industry Conditions - Correct Answers -Traditional, Low End, High End, Performance,
and Size
Buying Criteria - Correct Answers -Price, Age, MTBF, and Positioning
Positioning and price criteria change every year.
Age and MTBF criteria always remain the same.
Positioning - Correct Answers -Size and Performance
Perceptual Maps - Correct Answers -Position of each each product is placed to
determine customer demands.
Over time, your customers expect products that are smaller and faster, causing
segments to drift each month, at different rates.
Customer Survey Score - Correct Answers -Drives product demand; higher score
outsells lower score.
Evaluates each product against the buying criteria.
Scores are calculated each month.
Demand in any month is your score divided by the sum of the competitors scores
Perfect Customer Survey Score - Correct Answers -Is positioned at the ideal spot (only
once a year)
Is priced at the bottom of the expected range
Has the ideal age for that segment (only once a year)
Has an MTBF specification at the top of the expected range
Rough Cut Circle - Correct Answers -Dashed outer circle; Customers will not purchase
a product outside of this circle; products here will have reduced customer survey scores
Fine Cut Circle - Correct Answers -Solid inner circle; Heart of the segment; Customers
prefer products within this circle
Ideal Spot - Correct Answers -Point in the heart of the segment where, all other things
being equal, demand is highest.
, Perfect world Segment Movement - Correct Answers -Product positioned in front of the
ideal spot in January, on top of the ideal spot in June, and trail the ideal spot in
December; then it would complete an R&D project to jump in front of the ideal spot for
next year.
Price Score - Correct Answers -Every segment has a $10.00 price range; customers
prefer toward the bottom of the range; Sensors priced $5 above or below the segment
guidelines lose 20% of their customer survey score for each dollar above or below. At
$5, demand = 0; As price goes down, price score goes up
MTBF Score - Correct Answers -Number of hours a product is expected to operate
before it malfunctions; customers prefer products towards the top of the range; Each
segment as a 5,000 hour range; products lose 20% of their demand score for every
1,000 hours below the guideline; customer survey score improve as MTBF increases.
Age Score - Correct Answers -A product will never be too young or too old to be
considered for purchase; preferred age differs based on customer segment
What generates Customer Survey Score? - Correct Answers -4 P's - Product, price,
place, and promotion
Product and price = buying criteria
Promotion budget builds awareness
Sales budget builds accessibility
Credit terms = expressed by A/R
Availability = addresses inventory shortages
A/R - Correct Answers -Sets the amount of time customers have to pay for their
purchases
Stocks out - Correct Answers -Product generates high demand but runs out of inventory
Seller's Market - Correct Answers -Customers will accept low-scoring products as long
as they fall within the segment's rough cut limits; if industry capacity cannot meet
demand for the segment, then poor products will stock out as customers search for
anything that will meet their needs.
Research and Development - Correct Answers -Oversees invention and redesign;
"product"
All R&D projects begin on January 1
R&D in Marketing addresses: - Correct Answers -The positioning of each product inside
a market segment
The number of products in each segment
The age of your products
The reliability (MTBF rating) of each product
