Capsim study guide to exam Questions and Answers
What are the 5 market segments?
and what is a market segment?
1. Traditional
2. Low End
3. High End
4. Performance
5. Size
- Group of customers with similar purchasing concerns
What does the perceptual map show?
the positioning of...
Capsim study guide to exam Questions
and Answers
What are the 5 market segments?
and what is a market segment? - answer 1. Traditional
2. Low End
3. High End
4. Performance
5. Size
- Group of customers with similar purchasing concerns
What does the perceptual map show? - answer the positioning of a product in the
different segments.
Where do all 5 segments fall in the map? - answer - Upper left = low segment
- Next to low segment on the upper right side = Performance
- middle = traditional
- bottom left = size
- Bottom right = High end
What does a segment manager do? - answer verify the products entering and
leaving a segment, the margin potential for those products, capacity level and the
distribution system as compared to competitors.
What is the difference between the market segments at the beginning of the round vs.
the market segments in the final round? - answer The fine cuts overlap in the
beginning and in year 8;
- only the rough cuts overlap.
what is the distance between low and high preferred prices? - answer 10 bucks
Customers go through a two-stage buying process: The Rough Cut and the Fine Cut....
What two factors are considered in both the rough cut and fine cut of the customer
buying process? - answer mainly Price and Reliability
,- Age is not considered in the rough cut at all.
What trend can be explicitly observed in the industry in which your company is
operating? - answer Products become smaller and smaller.
- Example - Apple iphones get thinner and thinner.
What's the measure for product reliability? - answer Expected time a product lasts
MTBF (reliability) is - answer - Mean Time Between Failure.
- This measures reliability, size and market segment.
- measured in hour increments.
- MTBF per 1,000 hours = 0.30 cents.
- How much of a range does each segment have for MTBF? - 5,000 hour range.
Products with an MTBF 1,000 hours below the segment's guideline lose about ___20__
% of their customer survey score.
changing MTBF does not affect - answer on percieved age
Increasing a product's reliability will result in which of the following changes to
production costs? - answer higher material cost
What are the 4 buying criteria? - answer Price
Age
MTBF
Positioning (pfmn, size)
- Each segment values these buying criterias in different order.
Which two buying criterias remain the same over time? - answer Age
Reliability
Low Tech customers emphasize buying criteria in which order? - answer 1. Price
2. Age
3.Postioning (pfm and size)
4. Reliability
44. If you are marketing to HIGH END customers, which criteria are most important to
them in order of importance? - answer 1. Positioning (pfm and size)
2. Age
3. MTBF (reliability)
, 4. Price (matters about 9%)
what is the most important for high end customers? - answer positioning.
aka, (pfmn, size) = positioning.
- High end customers seek the cutting edge technology in both size and performance.
- buying criteria is the same for size and high end because they're both next to each
other on the map.
what is the most important for low end customers?
(Upper left area) - answer low price... low price matters 53% to them which is high.
Customers that want low prices and are willing to sacrifice size and performance are in
the _____ segment - answer low end segment.
- low end customers want the lowest price so they don't care that much about size or
performance.
- AKA boba's cheap ass lmfaoo
Customers who care about size are part of which segment? - answer Size segment
- Size's growth rate for their segment is 18.2%.
Which customer group or market segment seeks high reliability, advanced technology
products that emphasize high performance? - answer Performance customers
- Performance has the highest growth rate in the market.
Of the groups of the marketing segments (performance, size, traditional, high end, and
low end)
which 3 are considered to be in high tech segments and usually "ride the wave" of
technology? - answer 1. Performance
2. High end
3. Size
the performance segment places importance on - answer reliability (cause in order to
perform well, it needs good reliability).
and positioning - which is performance and size.
What does the perceptual map evaluate? like what is on the x and y axis's with the
circles. - answer the perceptual map moves based on the performance (x axis
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