bus ad simulation quiz

Which one of the following is NOT one of the four product characteristics that R&D can set? A. reliability B. performance C. quality D. age E. size

C. quality

What is a market segment? A. A group of customers with similar purchasing concerns B. A geographic area where customers are located C. The common area of customers buying patterns D. A group of customers with differing purchasing concerns E. An area of perceptual map where all points intersect

A. A group of customers with similar purchasing concerns

The promotion budget affects: A. Awareness B. Performance C. None of the above D. Brand Equity E. Size

A. Awareness

If you are marketing to High Tech customers, which criteria are most important to them in order of importance? A. Positioning, Age, Price, MTBF B. MTBF, Positioning, Age, Price C. Positioning, Age, MTBF, Price D. Price, Age, MTBF, Positioning E. Age, Price, Positioning, MTBF

A. Positioning, Age, Price, MTBF

What's the measure for product reliability? A. Return rates of products sold B. How long a product is expected to function C. All of the above D. Customers' happiness statements E. Price

B. How long a product is expected to function

How can assembly lines double their capacity? A. Assembly line capacities can not be doubled B. Speed up the production by automating C. Add a second shift D. Double the material available to the line E. Build more assembly lines

C. Add a second shift

The 2 market segments learned in the Foundation book are the following: A. none of the above B. High Beginning and Medium Low C. Performance and Low End D. High Tech and Low Tech E. Low End and Size

D. High Tech and Low Tech

Which market segment places the most importance on price? A. High Tech B. Both market segments place the most importance on price C. None of the above D. Low Tech

D. Low Tech

When a segment's product supply exceeds demand, how much appeal, to the customer, will a product priced at $1 above or below the segment price range lose? A. 10% B. 5% C. 30% D. 20% E. 15%

A. 10% (think - if above or below $10, lose 100% appeal)

When the practice rounds are over (both individual and team) the simulation will be reset so that real competition can begin among the teams. Each management team will take the reins of... A. a $40 million company with 1 product B. a $140 million company with 5 products C. a $100 million company with 5 products D. a $80 million company with 4 products E. a $100 million company with 4 products

A. a $40 million company with 1 product

If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level? A. There is nothing to do I have already reached as much awareness as I could B. I would scale back promotional expenditures to about $1,400,000 to maintain 100% awareness C. I would only need to create 33% new awareness to maintain 100% this year D. Spend the same amount of money spend the previous year to reach the same percentage of awareness this year E. I need to spend at least half of the money spend the previous year to reach 75% of the population

B. I would scale back promotional expenditures to about $1,400,000 to maintain 100% awareness

At the beginning of the simulation, how many assembly lines are there? A. As many as a company needs to produce its products, in an unlimited amount B. One line per company C. One, shared by all companies D. None of the above E. Always exactly five lines per company

B. One line per company

If you or your team decides to introduce a new sensor product, when should capacity and automation be purchased? A. Purchase of capacity and automation is not necessary for new product release B. One round prior to product release C. Two years or rounds prior to product release D. The round after product release E. The round of product release

B. One round prior to product release

If you sell all of the capacity on a production line, inventory from that line is sold at... A. what you determine it to be worth B. half the average cost of production C. an equivalent percentage of your revenues D. actual costs incurred thus far E. half the value as it shows on the accounting department's books

B. half the average cost of production

Last year, your company built 1,500,000 units of product Able and sold 1,405,000. After 12 months in R&D, a revision of the product Able is due out tomorrow, on January 2 (the first business day of the year). What will happen to the unsold inventory of 95,000 units of "old" product Able? A. They will compete for sales based on the product attributes they were built under before any of the new product Able is offered for sale B. They will be scrapped for 50 cents on the dollar C. They will be reworked to match the new specifications for product Able D. They will be carried on the books based on a LIFO accounting system E. They will be expensed as an adjustment to income and "disappear"

C. They will be reworked to match the new specifications for product Able

The relationship between promotion and sales budgets and sensor sales is generally... A. a bimodal relationship B. an inverse one C. a direct one D. nonexistent (there is essentially no significant relationship between promo budgets and sensor sales) E. a binomial relationship

C. a direct one

An increase in promotional budget has: A. returns to advertising expenditures follow a U-shared function B. level returns over time C. diminishing returns become apparent at greater than $2 million D. diminishing up to about $15 million, then increasing returns over time E. increasing returns over time

C. diminishing returns become apparent at greater than $2 million

In a seller's market event pathetic products are snapped up by desperate buyers because... A. first shift capacity plus second shift capacity are greater than demand B. first shift capacity is just sufficient to meet demand C. first shift capacity plus second shift capacity are less than total segment demand D. total industry capacity times the average automation level are still less than total segment demand E.first shift capacity plus products expected to enter the segment's rough cut circle next year are still less than total segment demand

C. first shift capacity plus second shift capacity are less than total segment demand

If you purchase production capacity and automation: A. it is available in 6 months B. it is available when you need it C. it is available in the next year D. it is available immediatly E. none of the above

C. it is available in the next year

The Low segment's ideal spot is A. near the upper-right of its circle B. near the lower-right of its circle C. near the center of its circle D. near the upper-left corner of its circle E. near the lower-left of its circle

C. near the center of its circle

What is the minimum amount of time that it takes to invent a new sensor? A. 6 months B. 5 years or more C. 2 years at least D. 1 year at least E. 3 months

D. 1 year at least

Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year? A. 33% B. 0% C. 50% D. 67% E. none of the above

D. 67%

The Finance Department can use which of the following methods to acquire capital for company activities? A. Current Debt, Stock Issues, Bond Issues, and cooking the books B. Credit Lines, Bond Issues, Stock Issues and Profits C. Liquidating Inventory, Stock Issues, Bond Issues, and Profits D. Current Debt, Stock Issues, Bond Issues, and Profits E. Profits, Current Debt, Withholding Pensions and Stock Issues

D. Current Debt, Stock Issues, Bond Issues, and Profits

A change in MTBF affects: A. none of the above B. positioning C. inventory D. material cost E. project management

D. material cost

Age, price and ____________________ criteria remain contact from year to year. A. size B. performance C. price D. reliability E. perceived age

D. reliability

Inside each fine cut circle, A. product segments strive to be near the boundries B. demand is at its highest as long as product segments are within the curcle C. product segments strive to be in the center D. segments have an ideal spot where demand is at its highest E. none of the above

D. segments have an ideal spot where demand is at its highest

If your short-term interest rate (the rate on your current debt) is 12.1%, then your bond rate (the rate on your long-term debt) is: A. 10.7% (1.4% lower than the current debt rate) B. 12.0% (one tenth percent less than the current debt rate) C. 12.1% (the current debt rate) D. 6.05% (one-half the current debt rate) E. 13.5% (1.4% higher than the current debt rate)

E. 13.5% (1.4% higher than the current debt rate) - long term is always higher

Based on the example in the Team Member Guide, what additional awareness does a promotion budget of $1,500,000 buy? A. 16% B. 56% C. 26% D. 46% E. 36%

E. 36%

Which of the following are not considered in the Fine Cut? A. Positioning B. Reliability C. Price D. Age E. Automation

E. Automation

How much do segment prices fall each year? A. $0.50 B. Segment price changes vary depending upon relative market demand C. $0.75 D. $1.00 E. Prices remain constant in each segment

E. Prices remain constant in each segment