Capsim Exam 1 Questions with Correct
Answers
What customer segment(s) does your company sell your product to?
Low tech and high tech
Two expectations customers have that are part of the Customer Buying Criteria
Positioning and price
Two of the scoring methods you are measured on in the simulation
Sales and contribution margin
What decisions are made in the R&D department?
Performance, size, and reliability
What does promo budget determine?
Customer Awareness, and your Sales Budget determines Customer Accessibility
When a product's positioning (Performance/Size) is updated, what happens to the
product's age?
It cuts in half
What is Contribution Margin defined as in the simulation?
Sales - Variable Costs
What decisions are made in the marketing department?
Price, forecast, and sales budget
Before you schedule a production order, you should...
, consider your left over inventory from last year
After your company purchases capacity, how much time does it take to be able to use
the added capacity?
1 year
You can produce ________ your capacity by running a full ________
Twice ; second shift
What department decisions are key to executing your plan?
R&D
What is reliability?
How long the product will last. The more reliable, the more it costs to produce
What is age?
How old customers perceive your product to be
What happens to the age of a new product?
It will have an age of 0 on its release date
What happens to high tech products if you update them every year?
Keeps positioning on the cutting edge and product's age closer to 0
What is the least important feature for low tech customers?
Positioning. Not updating your product each year will allow the product to age towards their
preference (3 years).
Positioning is comprised of a product's...
Answers
What customer segment(s) does your company sell your product to?
Low tech and high tech
Two expectations customers have that are part of the Customer Buying Criteria
Positioning and price
Two of the scoring methods you are measured on in the simulation
Sales and contribution margin
What decisions are made in the R&D department?
Performance, size, and reliability
What does promo budget determine?
Customer Awareness, and your Sales Budget determines Customer Accessibility
When a product's positioning (Performance/Size) is updated, what happens to the
product's age?
It cuts in half
What is Contribution Margin defined as in the simulation?
Sales - Variable Costs
What decisions are made in the marketing department?
Price, forecast, and sales budget
Before you schedule a production order, you should...
, consider your left over inventory from last year
After your company purchases capacity, how much time does it take to be able to use
the added capacity?
1 year
You can produce ________ your capacity by running a full ________
Twice ; second shift
What department decisions are key to executing your plan?
R&D
What is reliability?
How long the product will last. The more reliable, the more it costs to produce
What is age?
How old customers perceive your product to be
What happens to the age of a new product?
It will have an age of 0 on its release date
What happens to high tech products if you update them every year?
Keeps positioning on the cutting edge and product's age closer to 0
What is the least important feature for low tech customers?
Positioning. Not updating your product each year will allow the product to age towards their
preference (3 years).
Positioning is comprised of a product's...
