Comp XM Practice Quiz Questions and Answers
Marketing & R&D
Q1. A product in the Traditional segment is most likely to fail if:
A) Price is $0.50 below the segment average
B) Age is greater than 3 years
C) MTBF is above 20,000 hours
D) Perf/Size coordinates are exactly at ideal spot
Answer: B (Age is greater than 3 years)
Rationale: Traditional customers value a reasonably updated product. Age above 3 years
significantly reduces customer appeal, even if price and positioning are correct.
Q2. Which of the following will cause a product to be "repositioned" in R&D? (Select 2)
A) Changing MTBF
B) Changing the product name
C) Changing Performance coordinate
D) Changing the price
Answer: A and C
Rationale: MTBF (reliability) and Performance/Size coordinates are R&D-adjustable attributes. Price
is changed in Marketing, not R&D.
,Q3. What is the ideal age for a Low End product at time of release?
A) 0 years (brand new)
B) 1 year
C) 2 years
D) 3+ years
Answer: C (2 years)
Rationale: Low End customers prefer cheap, mature products. Releasing with age 2 allows you to
keep it in production longer before it becomes too old.
Q4. True or False: You can change a product's Performance and Size coordinates without changing
its Age.
A) True
B) False
Answer: B (False)
Rationale: Any R&D project that changes Perf/Size resets the Age to 0 (the product becomes "new"
at completion).
Q5. If you want a product to appeal to both Performance and Size segments, you should position it:
A) At the Performance ideal spot
B) At the Size ideal spot
C) In the overlapping region between both circles
D) In the Low End circle
, Answer: C (Overlapping region between both circles)
Rationale: Products positioned in the intersection of two segment circles can attract customers from
both segments, increasing total addressable market.
Q6. The Sales budget primarily affects which metric?
A) Awareness
B) Accessibility
C) Product Age
D) Price
Answer: B (Accessibility)
Rationale: Promotion builds awareness; Sales budget builds accessibility (distribution channel
coverage).
Q7. What happens to a product's perceived age at the start of each year?
A) It decreases by 1 year
B) It increases by 1 year
C) It resets to zero
D) It stays the same
Answer: B (It increases by 1 year)
Rationale: Each year, the product's revision date moves one year further into the past, increasing its
age.
Marketing & R&D
Q1. A product in the Traditional segment is most likely to fail if:
A) Price is $0.50 below the segment average
B) Age is greater than 3 years
C) MTBF is above 20,000 hours
D) Perf/Size coordinates are exactly at ideal spot
Answer: B (Age is greater than 3 years)
Rationale: Traditional customers value a reasonably updated product. Age above 3 years
significantly reduces customer appeal, even if price and positioning are correct.
Q2. Which of the following will cause a product to be "repositioned" in R&D? (Select 2)
A) Changing MTBF
B) Changing the product name
C) Changing Performance coordinate
D) Changing the price
Answer: A and C
Rationale: MTBF (reliability) and Performance/Size coordinates are R&D-adjustable attributes. Price
is changed in Marketing, not R&D.
,Q3. What is the ideal age for a Low End product at time of release?
A) 0 years (brand new)
B) 1 year
C) 2 years
D) 3+ years
Answer: C (2 years)
Rationale: Low End customers prefer cheap, mature products. Releasing with age 2 allows you to
keep it in production longer before it becomes too old.
Q4. True or False: You can change a product's Performance and Size coordinates without changing
its Age.
A) True
B) False
Answer: B (False)
Rationale: Any R&D project that changes Perf/Size resets the Age to 0 (the product becomes "new"
at completion).
Q5. If you want a product to appeal to both Performance and Size segments, you should position it:
A) At the Performance ideal spot
B) At the Size ideal spot
C) In the overlapping region between both circles
D) In the Low End circle
, Answer: C (Overlapping region between both circles)
Rationale: Products positioned in the intersection of two segment circles can attract customers from
both segments, increasing total addressable market.
Q6. The Sales budget primarily affects which metric?
A) Awareness
B) Accessibility
C) Product Age
D) Price
Answer: B (Accessibility)
Rationale: Promotion builds awareness; Sales budget builds accessibility (distribution channel
coverage).
Q7. What happens to a product's perceived age at the start of each year?
A) It decreases by 1 year
B) It increases by 1 year
C) It resets to zero
D) It stays the same
Answer: B (It increases by 1 year)
Rationale: Each year, the product's revision date moves one year further into the past, increasing its
age.
