CAPSIM EXAM 1 UPDATED QUESTIONS AND ANSWERS
1. When opening the Excel version of Capstone®, you should do what to Macros? - CORRECT
ANSWER✅✅✅Enable
If there are two identical products, one that has 100% accessibility and one that has 0% accessibility, -
CORRECT ANSWER✅✅✅the product with 100% accessibility will outsell the other 2 to 1 providing all
other attributes are identical.
3. How many products does every team start with? - CORRECT ANSWER✅✅✅Five products
4. What are three of the five Segments? - CORRECT ANSWER✅✅✅a. Traditional, Low End,
Performance
5. A segment manager's task is to - CORRECT ANSWER✅✅✅b. verify the products entering and
leaving a segment, the margin potential for those products, capacity level and the distribution system as
compared to competitors.
6. What is the difference between the market segments at the beginning of the round to the final
round? - CORRECT ANSWER✅✅✅b. The fine cuts overlap in the beginning and in year 8 only the
rough cuts overlap.
7. Successful managers will: - CORRECT ANSWER✅✅✅a. Create a strategy
b. Coordinate company activities
c. Analyze the market and its competing products
After you have uploaded your decisions to the website, can you change your official decisions as many
times as you want prior to the processing date and time of the round? - CORRECT ANSWER✅✅✅yes
9. Once you upload your official decisions during a round, how many times can you change them before
the end of the round? - CORRECT ANSWER✅✅✅e. As many times as you want
,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%
12. MTBF is measured in - CORRECT ANSWER✅✅✅b. hour increments.
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.
15. In Capstone©, pricing standards are set by: - CORRECT ANSWER✅✅✅a. Customers (Market
Segment).
16. "Reliability" is expressed in terms of: - CORRECT ANSWER✅✅✅a. Mean Time Between Failure.
17. MTBF measures what? - CORRECT ANSWER✅✅✅c. Reliability
18. The two characteristics that the perceptual map evaluates are - CORRECT ANSWER✅✅✅a.
Performance and Size.
19. The Perceptual Map is - CORRECT ANSWER✅✅✅a. a marketing tool used to track the position of
the company's products against those of the competitors.
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.
c. Customers want smaller and faster products. - CORRECT ANSWER✅✅✅d. down; right
,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.
24. What's the measure for product reliability? - CORRECT ANSWER✅✅✅c. Expected time a product
lasts
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).
28. Which of the following are not buying criteria? - CORRECT ANSWER✅✅✅b. Automation
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
32. Age refers to: - CORRECT ANSWER✅✅✅b. Product Age.
, 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.
c. zero years for high end and seven years for low end. - CORRECT ANSWER✅✅✅a. 2
36. Pricing plays a role - CORRECT ANSWER✅✅✅in the rough cut stage of the purchase decision and
in the fine cut stage of the purchase decision.
37. What are the top buying criteria that low end customers most value? - CORRECT
ANSWER✅✅✅b. Price
38. Which of the following is not a type of market segment in CapSim? - CORRECT ANSWER✅✅✅c.
Standard
39. What is the correct answer concerning the top buying criteria for the following segment: - CORRECT
ANSWER✅✅✅d. Price for low end and Positioning for high end.
40. Low End customers emphasize buying criteria in which order? - CORRECT ANSWER✅✅✅a. Price,
Age, Positioning, Reliability
41. Each segment places - CORRECT ANSWER✅✅✅b. a different emphasis on features of the 4
buying criteria.
42. Which market segment places the most importance on price? - CORRECT ANSWER✅✅✅c. Low
End
43. What is the most important criterion to a "Low End Segment" customer? - CORRECT
ANSWER✅✅✅a. Price
1. When opening the Excel version of Capstone®, you should do what to Macros? - CORRECT
ANSWER✅✅✅Enable
If there are two identical products, one that has 100% accessibility and one that has 0% accessibility, -
CORRECT ANSWER✅✅✅the product with 100% accessibility will outsell the other 2 to 1 providing all
other attributes are identical.
3. How many products does every team start with? - CORRECT ANSWER✅✅✅Five products
4. What are three of the five Segments? - CORRECT ANSWER✅✅✅a. Traditional, Low End,
Performance
5. A segment manager's task is to - CORRECT ANSWER✅✅✅b. verify the products entering and
leaving a segment, the margin potential for those products, capacity level and the distribution system as
compared to competitors.
6. What is the difference between the market segments at the beginning of the round to the final
round? - CORRECT ANSWER✅✅✅b. The fine cuts overlap in the beginning and in year 8 only the
rough cuts overlap.
7. Successful managers will: - CORRECT ANSWER✅✅✅a. Create a strategy
b. Coordinate company activities
c. Analyze the market and its competing products
After you have uploaded your decisions to the website, can you change your official decisions as many
times as you want prior to the processing date and time of the round? - CORRECT ANSWER✅✅✅yes
9. Once you upload your official decisions during a round, how many times can you change them before
the end of the round? - CORRECT ANSWER✅✅✅e. As many times as you want
,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%
12. MTBF is measured in - CORRECT ANSWER✅✅✅b. hour increments.
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.
15. In Capstone©, pricing standards are set by: - CORRECT ANSWER✅✅✅a. Customers (Market
Segment).
16. "Reliability" is expressed in terms of: - CORRECT ANSWER✅✅✅a. Mean Time Between Failure.
17. MTBF measures what? - CORRECT ANSWER✅✅✅c. Reliability
18. The two characteristics that the perceptual map evaluates are - CORRECT ANSWER✅✅✅a.
Performance and Size.
19. The Perceptual Map is - CORRECT ANSWER✅✅✅a. a marketing tool used to track the position of
the company's products against those of the competitors.
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.
c. Customers want smaller and faster products. - CORRECT ANSWER✅✅✅d. down; right
,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.
24. What's the measure for product reliability? - CORRECT ANSWER✅✅✅c. Expected time a product
lasts
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).
28. Which of the following are not buying criteria? - CORRECT ANSWER✅✅✅b. Automation
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
32. Age refers to: - CORRECT ANSWER✅✅✅b. Product Age.
, 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.
c. zero years for high end and seven years for low end. - CORRECT ANSWER✅✅✅a. 2
36. Pricing plays a role - CORRECT ANSWER✅✅✅in the rough cut stage of the purchase decision and
in the fine cut stage of the purchase decision.
37. What are the top buying criteria that low end customers most value? - CORRECT
ANSWER✅✅✅b. Price
38. Which of the following is not a type of market segment in CapSim? - CORRECT ANSWER✅✅✅c.
Standard
39. What is the correct answer concerning the top buying criteria for the following segment: - CORRECT
ANSWER✅✅✅d. Price for low end and Positioning for high end.
40. Low End customers emphasize buying criteria in which order? - CORRECT ANSWER✅✅✅a. Price,
Age, Positioning, Reliability
41. Each segment places - CORRECT ANSWER✅✅✅b. a different emphasis on features of the 4
buying criteria.
42. Which market segment places the most importance on price? - CORRECT ANSWER✅✅✅c. Low
End
43. What is the most important criterion to a "Low End Segment" customer? - CORRECT
ANSWER✅✅✅a. Price
