CapSim Word Study Guide
1. When opening the Excel version of Capstone®, you should do what to Macros?
a. Enable
b. Disable
c. Engage
d. Disarm
e. Does not matter
2. If there are two identical products, one that has 100% accessibility and one that has 0% accessibility,
a. the one with 0% accessibility will not sell at all because consumers can’t find it.
b. the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical.
c. the one with 0% accessibility will not sell at all because consumers do not know of it.
d. the product with 0% accessibility will only sell after all other products have sold in that segment.
e. the product with 100% accessibility will outsell the other 3 to 1 providing all other attributes are identical.
3. How many products does every team start with?
a. One product
b. Four products
c. Ten products
d. Five products
e. None of the above
4. What are three of the five Segments?
a. Traditional, Low End, Performance
b. Traditional, Low End, Cost End
c. Low End, High End, middle End
d. Median, Size, High End
e. Performance, Size, Cost
5. A segment manager’s task is to
a. decide which products enter the segment.
b. verify the products entering and leaving a segment, the margin potential for those products, capacity level
and the distribution system as compared to competitors.
c. review margin potential for each segment and evaluate the capacity for each segment compared to the
competition.
d. evaluate the capacity for each segment based on total demand and the competitor’s capacity; evaluate the
margin potential of all products and the distribution systems.
e. none of the above.
6. What is the difference between the market segments at the beginning of the round to the final round?
a. They all drift at an average rate of .7; down and to the right.
b. The fine cuts overlap in the beginning and in year 8; only the rough cuts overlap.
c. The fine and rough cuts overlap in the beginning and by round 8 neither the fine nor rough cuts overlap.
d. The traditional and low segment rough cuts overlap but all the remaining segments do not.
e. The High, Traditional and Low segment rough cuts overlap but all the remaining segments do not.
7. In order for a team to win at CapSim, they need to
a. have a proactive strategy and contingency plan in place.
b. have a contingency plan, a proactive strategy, open communications and the ability to make adjustments in a
dynamic market.
c. monitor the other teams and then head into the areas that are not being used by the other teams.
d. have a proactive strategy, contingency plan, open communications, strong knowledge of the industry and
have a strong understanding of the analyst report.
e. have a strategy in place and be ready to completely change it in round 4 if it isn’t working.
,8. After you have uploaded your decisions to the website, you can change your official decisions as many times as you
want prior to the processing date and time of the round.
a. True
b. False
9. Once you upload your official decisions during a round, how many times can you change them before the end of the
round?
a. 0
b. 1
c. 2
d. 5
e. As many times as you want
10. What trend can be explicitly observed in the industry in which your company is operating?
a. More and more products are sold directly to the private end consumer.
b. Products become more and more expensive.
c. Products become smaller and smaller.
d. Customers show less and less brand loyalty.
e. All of the above.
11. The economic environment for this simulation game will include
a. a favorable environment featuring limited growth, high inflation, and reasonable interest rates.
b. a favorable environment featuring modest growth, low inflation, and reasonable interest rates.
c. a highly variable environment featuring significant changes in growth, inflation, and drastic fluctuations in
interest rates.
d. a constant environment featuring measurable growth, constant inflation rates, and constant interest rates.
e. economic downturn and other surprises.
12. MTBF is measured in
a. day increments.
b. hour increments.
c. minute increments.
d. 30-minute increments.
e. 15-minute increments.
13. Customers that want low prices and are willing to sacrifice miniaturization and performance are in the
a. traditional segment.
b. high End segment.
c. low End segment.
d. performance segment.
e. size segment.
14. Customers that want small products and are willing to sacrifice performance are in the
a. traditional segment.
b. high End segment.
c. low End segment.
d. performance segment.
e. size segment.
15. In Capstone©, pricing standards are set by:
a. Customers (Market Segment).
b. Competitors.
c. You, The Company.
d. a range of the prices from all Teams.
e. Random Selection.
,16. In the Rough Cut buying stage, “reliability” is expressed in terms of:
a. Mean Time Between Failure.
b. how long the product will last.
c. years.
d. months.
e. Mean Time Before Failure.
17. MTBF measures what?
a. Price
b. Performance
c. Reliability
d. Size
e. Market Segment
18. The two characteristics that the perceptual map evaluates are
a. Performance and Size.
b. Performance and Price.
c. Size and Price.
d. Reliability and Performance.
e. none of the above.
19. The Perceptual Map is
a. a marketing tool used to compare products against customer perceptions.
b. a marketing tool used to compare performance against size.
c. a marketing tool used to compare reliability against price.
d. a marketing tool used to compare age against position.
e. a marketing tool used to compare time against motion.
20. The segments all drift to the lower-right section of the perceptual map. Why does this drift take place?
a. Customers want smaller and less expensive products.
b. Customers want reliable and affordable products.
c. Customers want smaller and faster products.
d. Customers want newer and faster products.
e. None of the above.
21. Over time, the segments will drift in which direction on the Perceptual Map?
a. up; left
b. up; right
c. down; left
d. down; right
e. will remain still and constant
22. When tracking market segments on the performance and size perceptual map, which segment moves or “drifts” the
slowest?
a. Low
b. Traditional
c. Size
d. Performance
e. High
, 23. What happens to a product priced at $1 above or below the segment guideline when a segment’s product supply
outstrips demand?
a. It loses 25% of its appeal.
b. It loses 10% of its appeal.
c. It loses 20% of its appeal.
d. It loses 15% of its appeal.
e. None of the above.
24. What’s the measure for product reliability?
a. Return rates of products sold
b. Customers’ happiness statements
c. Expected time a product lasts
d. Price
e. All of the above
25. At what dollar amount above the segment guidelines is all consumer appeal lost?
a. $3
b. $5
c. $10
d. $20
e. None of the above
26. The prices in each segment
a. drop by $0.50 each year.
b. drop by $1.00 each year.
c. increase by $0.50 each year.
d. vary depending upon relative market demand.
e. remain constant in each segment.
27. MTBF in the segments should be
a. MTBF (Performance) > MTBF (High End).
b. MTBF (Low End) > MTBF (High End).
c. MTBF (Low End) < MTBF (Size).
d. a, b, and c.
e. only a and c.
28. Which of the following are not considered in the Fine Cut?
a. Positioning
b. Automation
c. Age
d. Reliability
e. Price
29. Inside each fine cut circle,
a. segments have an ideal spot where demand is at its highest.
b. product segments strive to be in the center.
c. product segments strive to be near the boundaries.
d. demand is at its highest as long as product segments are within the circle.
e. none of the above.
30. The Traditional ideal spot is
a. near the upper-left corner of its circle.
b. near the lower-right of its circle.
c. near the center of its circle.
d. near the lower-left of its circle.
e. near the upper-right of its circle.
1. When opening the Excel version of Capstone®, you should do what to Macros?
a. Enable
b. Disable
c. Engage
d. Disarm
e. Does not matter
2. If there are two identical products, one that has 100% accessibility and one that has 0% accessibility,
a. the one with 0% accessibility will not sell at all because consumers can’t find it.
b. the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical.
c. the one with 0% accessibility will not sell at all because consumers do not know of it.
d. the product with 0% accessibility will only sell after all other products have sold in that segment.
e. the product with 100% accessibility will outsell the other 3 to 1 providing all other attributes are identical.
3. How many products does every team start with?
a. One product
b. Four products
c. Ten products
d. Five products
e. None of the above
4. What are three of the five Segments?
a. Traditional, Low End, Performance
b. Traditional, Low End, Cost End
c. Low End, High End, middle End
d. Median, Size, High End
e. Performance, Size, Cost
5. A segment manager’s task is to
a. decide which products enter the segment.
b. verify the products entering and leaving a segment, the margin potential for those products, capacity level
and the distribution system as compared to competitors.
c. review margin potential for each segment and evaluate the capacity for each segment compared to the
competition.
d. evaluate the capacity for each segment based on total demand and the competitor’s capacity; evaluate the
margin potential of all products and the distribution systems.
e. none of the above.
6. What is the difference between the market segments at the beginning of the round to the final round?
a. They all drift at an average rate of .7; down and to the right.
b. The fine cuts overlap in the beginning and in year 8; only the rough cuts overlap.
c. The fine and rough cuts overlap in the beginning and by round 8 neither the fine nor rough cuts overlap.
d. The traditional and low segment rough cuts overlap but all the remaining segments do not.
e. The High, Traditional and Low segment rough cuts overlap but all the remaining segments do not.
7. In order for a team to win at CapSim, they need to
a. have a proactive strategy and contingency plan in place.
b. have a contingency plan, a proactive strategy, open communications and the ability to make adjustments in a
dynamic market.
c. monitor the other teams and then head into the areas that are not being used by the other teams.
d. have a proactive strategy, contingency plan, open communications, strong knowledge of the industry and
have a strong understanding of the analyst report.
e. have a strategy in place and be ready to completely change it in round 4 if it isn’t working.
,8. After you have uploaded your decisions to the website, you can change your official decisions as many times as you
want prior to the processing date and time of the round.
a. True
b. False
9. Once you upload your official decisions during a round, how many times can you change them before the end of the
round?
a. 0
b. 1
c. 2
d. 5
e. As many times as you want
10. What trend can be explicitly observed in the industry in which your company is operating?
a. More and more products are sold directly to the private end consumer.
b. Products become more and more expensive.
c. Products become smaller and smaller.
d. Customers show less and less brand loyalty.
e. All of the above.
11. The economic environment for this simulation game will include
a. a favorable environment featuring limited growth, high inflation, and reasonable interest rates.
b. a favorable environment featuring modest growth, low inflation, and reasonable interest rates.
c. a highly variable environment featuring significant changes in growth, inflation, and drastic fluctuations in
interest rates.
d. a constant environment featuring measurable growth, constant inflation rates, and constant interest rates.
e. economic downturn and other surprises.
12. MTBF is measured in
a. day increments.
b. hour increments.
c. minute increments.
d. 30-minute increments.
e. 15-minute increments.
13. Customers that want low prices and are willing to sacrifice miniaturization and performance are in the
a. traditional segment.
b. high End segment.
c. low End segment.
d. performance segment.
e. size segment.
14. Customers that want small products and are willing to sacrifice performance are in the
a. traditional segment.
b. high End segment.
c. low End segment.
d. performance segment.
e. size segment.
15. In Capstone©, pricing standards are set by:
a. Customers (Market Segment).
b. Competitors.
c. You, The Company.
d. a range of the prices from all Teams.
e. Random Selection.
,16. In the Rough Cut buying stage, “reliability” is expressed in terms of:
a. Mean Time Between Failure.
b. how long the product will last.
c. years.
d. months.
e. Mean Time Before Failure.
17. MTBF measures what?
a. Price
b. Performance
c. Reliability
d. Size
e. Market Segment
18. The two characteristics that the perceptual map evaluates are
a. Performance and Size.
b. Performance and Price.
c. Size and Price.
d. Reliability and Performance.
e. none of the above.
19. The Perceptual Map is
a. a marketing tool used to compare products against customer perceptions.
b. a marketing tool used to compare performance against size.
c. a marketing tool used to compare reliability against price.
d. a marketing tool used to compare age against position.
e. a marketing tool used to compare time against motion.
20. The segments all drift to the lower-right section of the perceptual map. Why does this drift take place?
a. Customers want smaller and less expensive products.
b. Customers want reliable and affordable products.
c. Customers want smaller and faster products.
d. Customers want newer and faster products.
e. None of the above.
21. Over time, the segments will drift in which direction on the Perceptual Map?
a. up; left
b. up; right
c. down; left
d. down; right
e. will remain still and constant
22. When tracking market segments on the performance and size perceptual map, which segment moves or “drifts” the
slowest?
a. Low
b. Traditional
c. Size
d. Performance
e. High
, 23. What happens to a product priced at $1 above or below the segment guideline when a segment’s product supply
outstrips demand?
a. It loses 25% of its appeal.
b. It loses 10% of its appeal.
c. It loses 20% of its appeal.
d. It loses 15% of its appeal.
e. None of the above.
24. What’s the measure for product reliability?
a. Return rates of products sold
b. Customers’ happiness statements
c. Expected time a product lasts
d. Price
e. All of the above
25. At what dollar amount above the segment guidelines is all consumer appeal lost?
a. $3
b. $5
c. $10
d. $20
e. None of the above
26. The prices in each segment
a. drop by $0.50 each year.
b. drop by $1.00 each year.
c. increase by $0.50 each year.
d. vary depending upon relative market demand.
e. remain constant in each segment.
27. MTBF in the segments should be
a. MTBF (Performance) > MTBF (High End).
b. MTBF (Low End) > MTBF (High End).
c. MTBF (Low End) < MTBF (Size).
d. a, b, and c.
e. only a and c.
28. Which of the following are not considered in the Fine Cut?
a. Positioning
b. Automation
c. Age
d. Reliability
e. Price
29. Inside each fine cut circle,
a. segments have an ideal spot where demand is at its highest.
b. product segments strive to be in the center.
c. product segments strive to be near the boundaries.
d. demand is at its highest as long as product segments are within the circle.
e. none of the above.
30. The Traditional ideal spot is
a. near the upper-left corner of its circle.
b. near the lower-right of its circle.
c. near the center of its circle.
d. near the lower-left of its circle.
e. near the upper-right of its circle.
