CAPSIM STUDY GUIDE 2025/2026 QUESTIONS AND
SOLUTION RATED A+
✔✔price - ✔✔Customers always favor lower prices within expected range. The price
range remains constant across the 8 years. Sensors priced above or below the range
face significant declines in sales. Those products fail the price rough cut. In calculating
the customer survey score, customers give products priced at the low end of the price
range 100 satisfaction points; 1 point to those at the high end of the price range.
✔✔age - ✔✔length of time since product was invented or revised.
High Tech wants- new tech
Low Tech-proven tech in market for a few years.
The ideal age and range remains constant across the 8 years;
In high tech segment, an age of 0 yields results in 100 satisfaction points for calculating
the customer survey score and scores decline with age. In low tech segment, age of 3.0
yields 100 satisfaction points for customer survey score. Ages either higher or lower
yield lower scores.
✔✔MTBF (mean time before failure) - ✔✔a rating of reliability (not overall quality!)
measured in hours, it is the number of hours a product is expected to operate before it
malfunctions. MTBF range remains constant across the 8 years
✔✔position - ✔✔• In the high tech segment, position at the ideal spot yields 100
satisfaction points with points declining to 1 at the trailing edge. In the low tech
segment, 100 satisfaction points are achieved when a product is at the ideal spot in the
center of the segment, with points declining to 1 for a product at either the leading or
trailing edge of the segment.
✔✔Low Tech Segment Buying Criteria - ✔✔Low Tech customers seek proven products,
are indifferent to technological sophistication and are price motivated.
• Summary of LT criteria: Price (41%; $15-$35), Age (29%, ideal = 3.0), reliability (21%;
14,000-20,000), and ideal position (9%; segment center)
✔✔high tech segment buying criteria - ✔✔• High Tech customers seek cutting-edge
technology in size/performance and new designs.
• Summary of HT criteria:: Ideal position (33%; leading edge), Age (29%; ideal = 0.0),
price (25%; range $25-$45), and reliability (13%; 17,000-23,000)
✔✔customer survey score - ✔✔calculated each month to determine market share
✔✔Research & Development (R&D) decision
role - ✔✔setting and revising position (size & performance), and reliability (Mean Time
Between Failure / MTBF) for existing and new products; indirectly sets age with
changes to position.
, ✔✔marketing decision role - ✔✔• Price, promotion (awareness), and sales
(accessibility) Accounts receivable (A/R) and accounts payable (A/P) lag, and
company's sales forecast.
✔✔production decision role - ✔✔• Production schedule, buying and selling capacity,
setting automation level, A/P lag.
✔✔finance decision role - ✔✔issue and retire stock, set dividend, borrow current debt,
issue and retire long-term debt, and set A/R and A/P lag.
✔✔material costs - ✔✔Materials costs = MTBF cost + Position Cost
✔✔position cost - ✔✔Material Cost per unit - MTBF Cost per unit
✔✔rough cut circle - ✔✔dashed outer circle defines the outer limit of the segment.
Customers are saying, "I will NOT purchase a product outside this boundary." We call
the dashed circle the rough cut boundary; rough cut circles have a radius of 4.0 units.
✔✔fine cut circle - ✔✔The solid inner circle defines the heart of the segment.
Customers prefer products within this circle. We call the inner circle the fine cut because
products within it "make the fine cut." Fine cut circles have a radius of 2.5 units
✔✔awareness - ✔✔percentage of customers who are familiar with your product; 100%
means every customer knew about your product. Awareness declines by one third each
year.
✔✔calculating awareness at the start of the year - ✔✔(33% x Last Year's Awareness)
✔✔promotional budget spending - ✔✔Spending on promotional budgets has
diminishing returns. The first $1,500 buys 36% awareness, an additional $1,500 buys
just under 14% additional awareness ($3,000 buys just under 50% total).
✔✔new product awareness - ✔✔launch with 25% awareness + any promotional
spending budgeted. If you spend nothing extra, the product will have 25% awareness
for its first year on the market.
✔✔Accesability - ✔✔The percentage of customers your salesforce reaches regularly.
Accessibility declines by one third (33.3%) each year.
✔✔spending on sales budget - ✔✔The maximum spending for one product's sales
budget is $3,000 (buys 32% accessibility).
SOLUTION RATED A+
✔✔price - ✔✔Customers always favor lower prices within expected range. The price
range remains constant across the 8 years. Sensors priced above or below the range
face significant declines in sales. Those products fail the price rough cut. In calculating
the customer survey score, customers give products priced at the low end of the price
range 100 satisfaction points; 1 point to those at the high end of the price range.
✔✔age - ✔✔length of time since product was invented or revised.
High Tech wants- new tech
Low Tech-proven tech in market for a few years.
The ideal age and range remains constant across the 8 years;
In high tech segment, an age of 0 yields results in 100 satisfaction points for calculating
the customer survey score and scores decline with age. In low tech segment, age of 3.0
yields 100 satisfaction points for customer survey score. Ages either higher or lower
yield lower scores.
✔✔MTBF (mean time before failure) - ✔✔a rating of reliability (not overall quality!)
measured in hours, it is the number of hours a product is expected to operate before it
malfunctions. MTBF range remains constant across the 8 years
✔✔position - ✔✔• In the high tech segment, position at the ideal spot yields 100
satisfaction points with points declining to 1 at the trailing edge. In the low tech
segment, 100 satisfaction points are achieved when a product is at the ideal spot in the
center of the segment, with points declining to 1 for a product at either the leading or
trailing edge of the segment.
✔✔Low Tech Segment Buying Criteria - ✔✔Low Tech customers seek proven products,
are indifferent to technological sophistication and are price motivated.
• Summary of LT criteria: Price (41%; $15-$35), Age (29%, ideal = 3.0), reliability (21%;
14,000-20,000), and ideal position (9%; segment center)
✔✔high tech segment buying criteria - ✔✔• High Tech customers seek cutting-edge
technology in size/performance and new designs.
• Summary of HT criteria:: Ideal position (33%; leading edge), Age (29%; ideal = 0.0),
price (25%; range $25-$45), and reliability (13%; 17,000-23,000)
✔✔customer survey score - ✔✔calculated each month to determine market share
✔✔Research & Development (R&D) decision
role - ✔✔setting and revising position (size & performance), and reliability (Mean Time
Between Failure / MTBF) for existing and new products; indirectly sets age with
changes to position.
, ✔✔marketing decision role - ✔✔• Price, promotion (awareness), and sales
(accessibility) Accounts receivable (A/R) and accounts payable (A/P) lag, and
company's sales forecast.
✔✔production decision role - ✔✔• Production schedule, buying and selling capacity,
setting automation level, A/P lag.
✔✔finance decision role - ✔✔issue and retire stock, set dividend, borrow current debt,
issue and retire long-term debt, and set A/R and A/P lag.
✔✔material costs - ✔✔Materials costs = MTBF cost + Position Cost
✔✔position cost - ✔✔Material Cost per unit - MTBF Cost per unit
✔✔rough cut circle - ✔✔dashed outer circle defines the outer limit of the segment.
Customers are saying, "I will NOT purchase a product outside this boundary." We call
the dashed circle the rough cut boundary; rough cut circles have a radius of 4.0 units.
✔✔fine cut circle - ✔✔The solid inner circle defines the heart of the segment.
Customers prefer products within this circle. We call the inner circle the fine cut because
products within it "make the fine cut." Fine cut circles have a radius of 2.5 units
✔✔awareness - ✔✔percentage of customers who are familiar with your product; 100%
means every customer knew about your product. Awareness declines by one third each
year.
✔✔calculating awareness at the start of the year - ✔✔(33% x Last Year's Awareness)
✔✔promotional budget spending - ✔✔Spending on promotional budgets has
diminishing returns. The first $1,500 buys 36% awareness, an additional $1,500 buys
just under 14% additional awareness ($3,000 buys just under 50% total).
✔✔new product awareness - ✔✔launch with 25% awareness + any promotional
spending budgeted. If you spend nothing extra, the product will have 25% awareness
for its first year on the market.
✔✔Accesability - ✔✔The percentage of customers your salesforce reaches regularly.
Accessibility declines by one third (33.3%) each year.
✔✔spending on sales budget - ✔✔The maximum spending for one product's sales
budget is $3,000 (buys 32% accessibility).
