In Capsim, you have an industry that manufactures ________ products for its business customers.

2. The market for Capsim products is divided into ____________ segments. List them.

3. There are __________ # of companies operating in the industry. Also list the companies by name.

4. Identify the 4 major areas of decision making in Capsim.

5. In Market Segments Analysis, Customer Buying Criteria is determined based on 4 factors – Reliability, Ideal Positioning and 2 more. Name them.

6. Ideal Positioning in the customer buying criteria is determined by Product _____ and Product __________.

7. Reliability in the customer buying criteria is determine by ____________.

8. On the Perceptual Map, all segments drift to the lower right. Which segment drifts at the fastest rate? Which drifts at the slowest?

9. Each Segments Ideal Spot shows the buyers preferred coordinates within the circle. Why is the High End Ideal Spot to the lower right of the segment center?

10. Why is the Low End Ideal Spot to the upper left of the Low End segment center?

11. Explain how increasing First Shift Capacity can reduce per unit labor cost?

12. Automation reduces per unit labor costs but it has some disadvantages. List one?

13. A products margin is determined by subtracting its manufacturing costs (labor and material) from its price. Logically, higher prices and lower labor and material costs result in higher margins. Keeping in mind the Customer Buying Criteria, how would you increase margins for a Low End product?

14. How would you increase margins for a High End product?

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