Question 1

6.25 out of 6.25 points

Market segments are named for:

Selected Answer:

d.

The customer's top concern

Answers:

a.

The customers end product

b.

The manufacturer's geographic region

c.

The customer's geograhic region

d.

The customer's top concern

Question 2
6.25 out of 6.25 points

Of the five market segments, which three are more concerned about leadingedge technology within their respective segment expectations?
Selected
Answer:
Answers:

d.

Size Segment, Performance Segment, and High End Segment

a.

Size Segment, Performance Segment, and Traditional Segment

b.

Low End Segment, Traditional Segment, and High End

Segment
c.

Size Segment, Performance Segment, and Traditional Segment

d.

Size Segment, Performance Segment, and High End Segment

Question 3
6.25 out of 6.25 points

Each circle on the Perceptual Map represents:

Selected Answer:

d.

Both A and B
Answers:

a.

A market segment
b.

A group of like-minded customers

c.

Products
d.

Both A and B

Question 4
6.25 out of 6.25 points

Your R&D functional area controls which of the following product attributes:
Selected Answer:

b.

Size, Performance, Age, and Reliability

Answers:

a.

Age, Size, Performance, and Price

b.

Size, Performance, Age, and Reliability

c.

Age, Size, Performance, and Awareness

d.

Price, Awareness, Accessibility, and Age

Question 5
6.25 out of 6.25 points

In the marketing area, which expenditure drives customer awareness?

Selected Answer:

c.

Promotion Budget
Answers:

a.

MTBF
b.

Sales Budget
c.

Promotion Budget
d.

Price

Question 6
6.25 out of 6.25 points

Customers ignore reliability above the expected range.

Selected Answer:
Answers:

True
True
False

Question 7
6.25 out of 6.25 points

Before you can address your customers' continous demand for lower prices,
what must you do?
Selected Answer:

a.

Reduce Costs
Answers:

a.

Reduce Costs
b.

Retire Bonds
c.

Issue Bonds
d.

Issue Stock

Question 8
6.25 out of 6.25 points

Over time, what will happen on the Perceptual Map to represent changes in
market segment customer expectations regarding Size and Performance?
Selected
Answer:

Answers:

b.

Circles move towards the bottom right corner as customers

demant that the sensors decrease in Size and increase in
Performance
a.

Circles remain stationary, representing customer's expectations for

no changes in the technology of the electronic sensors.
b.

Circles move towards the bottom right corner as customers

demant that the sensors decrease in Size and increase in
Performance
c.

Products will move automatically as the circles move

d.

None of the above

Question 9
6.25 out of 6.25 points

In addition to expecting decreasing Size and Increasing Performance of the

sensors, what other demands do Capstone customers place on the market?
Selected Answer:

a.

Decreasing Price

Answers:

a.

Decreasing Price
b.

Increasing Reliability
c.

Demands for exclusive distribution deals

d.

All the above

Question 10
6.25 out of 6.25 points

Promotion and Sales expenditures offer rapidly diminishing returns above what
levels?
Selected Answer:

c.

About $3M each

Answers:

a.

$500K each
b.

$500K combined
c.

About $3M each

d.

About $2M combined

Question 11
6.25 out of 6.25 points

Whatever figure you enter in the Your Sales Forecast cell on the Marketing
screen will automatically be
produced.
Selected Answer:
Answers:

False
True
False

Question 12
6.25 out of 6.25 points

Increases in Plant Automation will decrease labor costs. Decreases in Plant

Automation will:
Selected
Answer:
Answers:

d.

All the above

a.

Increase labor costs, making it difficult to meet customer

demands for falling prices

b.

Increase labor costs, placing additional pressure on profit

marging
c.

Slightly reduce R&D cycle time

d.

All the above

Question 13
6.25 out of 6.25 points

What is the lag time between purchase and use of new and/or additional Plant
and Equipment?
Selected Answer:

a.

1 Year
Answers:

a.

1 Year
b.

6 months
c.

2 Years
d.

None

Question 14
6.25 out of 6.25 points

Investments in Plant Automation, Capacity Increases, and Plants for new

products will show up on the Finance screen and in the Proformas. What
options are provided for funding investments in Plant and Equipment?
Selected
Answer:
Answers:

d.

All of the above

a.

You may use expected Revenues from sales (if sufficient to also
cover operating costs), and sell-offs of existing Plant Capacity
b.

You may issue stocks (within limits) and 10-year corporate bonds
within limits
c.

You may borrow short term from the bank (repayment required

following year)
d.

All of the above

Question 15
6.25 out of 6.25 points

Prices are established by which department?

Selected Answer:

a.

Marketing
Answers:

a.

Marketing
b.

Reasearch and Develpoment

c.

Production

Question 16
6.25 out of 6.25 points

Before finalizing Finance decisions, decisions must be made in all other

functional areas first. Otherwise, how will the Finance Manager know what the
financial projections and demands for capital look like?
Selected Answer:
Answers:

True
True
False