Capsim
Pricing plays a role: both a and b,
in the fine cut of the stage of the purchase decision; in the rough cut stage of the purchase decision
Which of the following is NOT one of the fourproduct characteristics ?
quality
Rapid movement of an existing product on the Perceptual Map
requires low automation levels
What section on the Perceptual Map is considered ideal for the low end segment?
upper left
Labor costs are driven by three factors
wage and benefit rates, automation levels, and second shift
Adding one additional unit of capacity costs
$6 + ($4 * Automation level)
How much does it cost for mtf per 1000 of reliability?
.30
how much do segment prices fall each year?
.50
hat percentage of additional awareness does the second(first) $1,000,000 increase in promotion budget buy?
20% (26%)
Products must plot within units from the center of the circle on the Perceptual Map to survive the Rough Cut:
4
f a product's price was $20, its material $8, and its labor $7, the Margin Per Unit would be:
5
Emergency loans are made at what rate over normal Current Debt interest rate?
7.5
If your company has sales budget of $3 million and it drops to zero:
Accessibility drops to 0% in three years
Which of the following are not considered Fine Cut
automation
The Promotion budget affects:
awareness
Where is proximity to the Ideal Spot particularly important
high tech segments
Increasing a products reliability will result in which of the following changes to production costs?
higher material cost
Dividends are paid to stockholders
in quarterly installments at a rate per share that you will establish at the beginning of the year
EPS (Earnings Per Share) is calculated by
dividing net profit by the number of shares
Which customer group or market segment seeks high reliability, advanced technology products that emphasize high performance?
Performance customers
f you are marketing to High End Customers, which criteria is most important to them in order of importance?
Positioning, Age, MTBF, Price
What two factors are considered in both the Rough Cut and Fine Cut of the customers buying process?
Price and Reliability
Which automation rating requires the longest time to reposition a product?
10
What is your bond rate? The prime rate is 10%; your current bond rating slipped on category (to AA).
11.9
Inventory Carrying Costs is % of the average cost of production
12
If you want to add 500,000 units to an assembly line with an automation rating of 5
13 mill
How is the strength of sales channel measured?
Accessibility on a scale of O to 100%
Which of the following is true about Accounts Receivable Lag and its implications on demand?
At 60 days, demand is 98.5%
Stock price is a function of:
Book Value, EPS, and Dividend
What is market segment?
Group of customers with similar purchasing concerns
Within the process management initiatives, channel support systems.
Increase in effectiveness of the sales budgeted and therefore demanded
What happens to a product priced $1 above or below the segment guideline when a segment's product supply outstrips demand?
It loses 20% of its appeal
MTBF in the segments should be
MTBF (performance) > MTBF (high end); MTBF (low end) < MTBF (size)
Marketing is concerned with 4 things, what are they?
Price, Place, Promotion and Product(4 Ps)
What happens to a product's Perceived Age when it is repositioned in R&D
Reduced by 50%
Customers go through a two-stage buying process:
The Rough and Fine Cut. In the Rough Cut, buyers focus on four product characteristics.
Repositioning moves a product on the Perceptual Map form its old location on a new one?When does the new location become active?
The day the r and d project is done
What is one draw-back of increasing automation?
The product requires increased time/expense for subsequent short
Which customer group or market segment seeks proven products using current technology?
Traditional Customers
The Perceptual Map:
a marketing tool used to compare products against customer perceptions
In order to achieve 100% accessibility,
a team must: have two products in the same segment
In capstone, pricing standards are set by
customers
An increase in promotional budgets have
decreasing returns overtime
When a product is moved to a new location on the Perceptual Map, the Perceived Age (or Age) is:
divide in half
The economic environment for this simulation game will include: a favorable environment
featuring modest growth, low inflation and reasonable interest rates
changing MTBF
have no impact on Perceived Age
Which customer group or market segment seeks cutting edge technology in both size and performance?
high end
If you purchase production capacity and automation
it is available in the next year
What is the minimum amount of time it takes to create a new product?
it is available in the next year
When tracking market segments on the performance and size Perceptual Map, which segment moves or "drifts" the slowest
low
The two characteristics that the Perceptual Map evaluates are:
performance and size
What is the most important criteria to a "High End Segment" customer?
positioning
What is the most important criteria to a "Low End Segment" customer
price
Which product attribute do Low End customers value the most?
price
Which of the following is true?
traditional segment emphasizes the edge, low end segment price
