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Mini-Sim 3 Latest 2023 Test Accurate
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Mini-Sim 3 Latest 2023 Test Accurate Which characteristic is most important for the Urban Commuter segment? Comfort 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 MAR...

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  • August 31, 2023
  • 2
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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  • mini sim 3 latest 2023 test accurate which charac

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  • Mkt 103
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Mini-Sim 3 Latest 2023 Test Accurate
Which characteristic is most important for the Urban Commuter segment?
Comfort
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?
22.5
[45*.50]
Look at the data under PURCHASE BEHAVIOR. How often do consumers in this
segment purchase a backpack?
A purchase every four years
Review the DEMOGRAPHICS for each market segment. You can find an overview
of the TOTAL MARKET SIZE and the size of each market segment on the
SEGMENTS/SUMMARY tab. Which market segment represents the greatest
portion of the entire market at close to 36%?
School Children
[at 35,000]
Unit volume is one thing but to truly asses the potential of a market segment, you
need to look at the revenue potential. Revenue potential is MARKET SIZE
multiplied by the AVERAGE PURCHASE PRICE. What is the total market revenue
of all market segments combined?
$4,118,000
[900,000+350,000+1,260,000+840,000+768,000]
Based on your calculations, which segment will net the largest revenue?
Outdoor Enthusiast
As we get ready to move into the heart of this challenge and aligning
PREFERENCES with features, take another look at the PREFERENCES for each
segment. If you wanted to design a backpack with a CHARACTERISTIC that
appealed to more than one segment, which one would you focus on?
Comfort
[At 56% for Urban Commuters and 62% for Luxury Trendfollower, the preference for
comfort is two to one over the next closest preference.]
There are so many factors that need to be considered when determining which
market segment to target. You have already determined that Urban Commuters
purchase a backpack every four years. Now look at the PURCHASE BEHAVIOR
for all market segments. Based on the purchase rate, which market segment is
the most attractive?
Urban Commuters
[At 23%, their 2014 purchase rate is the highest for all the target segments.]
Pick a SHAPE that best aligns with your segment PREFERENCES.
Teardrop Rucksack
[Comfort is #1 with this segment followed by Capacity.]

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