Mini Sim – Segmentation Exam Test with Verified Answers
1. Comfort Which CHARACTERISTIC is most important for the Urban
Commuter segment?
2. $22.50 Part of developing a profitable product is determining how
much to spend to produce your product. While industry
requirements vary, a good rule of thumb is to set a 50%
GROSS MARGIN. A 50% gross margin for a product that
sells for $100 means that the cost of the product is $50.
Given the AVERAGE PURCHASE PRICE for the Urban
Commuter, what product cost should you target to achieve
a 50% gross margin?
3. Once every 4 Look at the data under PURCHASE BEHAVIOR. How of-
years ten do consumers in this segment purchase a backpack?
4. School Children Review the DEMOGRAPHICS for each market segment.
You can find an overview of the TOTAL MARKET SIZE
[35,000] and the size of each market segment on the SEG-
MENTS/SUMMARY tab. Which market segment repre-
sents the greatest portion of the entire market at close to
36%?
5. $4,118,000 Unit volume is one thing but to truly asses the potential
of a market segment, you need to look at the revenue
[900,000+350,000+p1o,2te6n0t,i0a0l.0R+e8v4e0n,0u0e0p+o7t6e8n,t0ia0l0is] MARKET SIZE multiplied
by the AVERAGE PURCHASE PRICE. What is the total
market revenue of all market segments combined?
6. Outdoor Enthusi- Based on your calculations, which segment will net the
ast largest revenue?
7. Comfort As we get ready to move into the heart of this challenge
and aligning PREFERENCES with features, take another
[At 56% for Ur- look at the PREFERENCES for each segment. If you
ban Commuters wanted to design a backpack with a CHARACTERISTIC
and 62% for Lux- that appealed to more than one segment, which one would
ury Trendfollow- you focus on?
er, the preference
for comfort is two
1/3
1. Comfort Which CHARACTERISTIC is most important for the Urban
Commuter segment?
2. $22.50 Part of developing a profitable product is determining how
much to spend to produce your product. While industry
requirements vary, a good rule of thumb is to set a 50%
GROSS MARGIN. A 50% gross margin for a product that
sells for $100 means that the cost of the product is $50.
Given the AVERAGE PURCHASE PRICE for the Urban
Commuter, what product cost should you target to achieve
a 50% gross margin?
3. Once every 4 Look at the data under PURCHASE BEHAVIOR. How of-
years ten do consumers in this segment purchase a backpack?
4. School Children Review the DEMOGRAPHICS for each market segment.
You can find an overview of the TOTAL MARKET SIZE
[35,000] and the size of each market segment on the SEG-
MENTS/SUMMARY tab. Which market segment repre-
sents the greatest portion of the entire market at close to
36%?
5. $4,118,000 Unit volume is one thing but to truly asses the potential
of a market segment, you need to look at the revenue
[900,000+350,000+p1o,2te6n0t,i0a0l.0R+e8v4e0n,0u0e0p+o7t6e8n,t0ia0l0is] MARKET SIZE multiplied
by the AVERAGE PURCHASE PRICE. What is the total
market revenue of all market segments combined?
6. Outdoor Enthusi- Based on your calculations, which segment will net the
ast largest revenue?
7. Comfort As we get ready to move into the heart of this challenge
and aligning PREFERENCES with features, take another
[At 56% for Ur- look at the PREFERENCES for each segment. If you
ban Commuters wanted to design a backpack with a CHARACTERISTIC
and 62% for Lux- that appealed to more than one segment, which one would
ury Trendfollow- you focus on?
er, the preference
for comfort is two
1/3
