All Capsim simulation assignments Help

Capsim simulation tool helps one to manage a company when given all the resources. The main aim is to ensure that the product meets the demand of the customer and the company gains profit from the product. This article will elaborate more on the buying criteria of customers and customer survey score. It will focus the buying criteria on sensor industry. There are five categories which the customers fall in the sensory industry. They include Traditional, Low End, High End, Performance and Size. These categories are often referred to as segments. A market segment is collection of customers who have similar needs. Are you looking for all Capsim simulation Assignment Help on Buying Criteria and Customer Survey Score? Worry no more! We got you covered!

At the start of the simulation, there are more customers on the Traditional Low-End Segment. As time goes by, the dynamic shifts and there are more customers in the High End since performance and size will have a greater say on the segments. Customers are different in every segment. They can use factors such as pricing, aging, MTBF and positioning.

Price

There are different prices for each segment. Customers in the Low-End Segment are purposed to seek low prices of products while High End Customers are willing to pay high prices so that they can obtain highly efficient products.

Age

There are different age expectations for each product. This is the amount of time passed before the sensor was revised or the time the sensor has been in the market since it was invented. High End customers prefer brand new sensors that have not been in the market due to technology issues. They believe that new products are an improvement from the prior products in terms of size and performance which is their preference.

Low End Customers are willing to purchase sensors that have been in the market for a few years. This is because the longer the product stays in the market, the lower the price of that product. The main aim of the Low-End Customers is to obtain products with low prices. Therefore, product with a higher age in the market serves them best.

MTBF (Mean Time Before Failure)

Every segment is different in regards with MTBF. MTBF is the amount of time that a sensor is expected to last before it malfunctions. High End Customers will prefer products with high MTBF due to their priority in performance. High performing sensors have a high MTBF. Also, the customer will not prefer to purchase a sensor that could easily malfunction when using it since it will imply poor performance.

Low End Customers are satisfied with sensors that have a low MTBF. They do not mind if the sensor will malfunction within a short time. The only factor considered by this segment is pricing. Therefore, they are willing to compromise on the MTBF factor on the sensors. Sensors with low MTBF have been in the market for few years and their price is low which suits the Low-End Customers.

Positioning

There is a huge difference in performance and size of different types of sensors. Combination of size and performance creates product positioning. A perpetual map is a tool used in tracking of a product positioning in the market. It also compares the positioning of products of your company with the company’s competitors. The vertical axis shows the size of the product and the horizontal axis contains the performance of the product.

The perpetual plot can be used in plotting any two characteristics of products. For instance, in the automobile industry; one can plot years and miles. The map contains dots whereby each dot represents two characteristics of a customer’s preference.  When numerous dots accumulate in one area then they form a segment. The segment represents customers who have almost similar preferences according to the characteristics used in measuring the product.

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In our case of sensor industry, each segment will be located in different positions of the perpetual map.  Low End Customers will be positioned on the side of large size and low performance in the map. This is because these are the core characteristics of a low-priced sensor. The High-End Customer will be positioned on the side of small size and high performance. These products of their preference will be set at the lower right of the map.

As time goes by, the High-End Customers will require more improved products with a higher performance and a small size. The segments drift every month due to this aspect. As more time in terms of years goes by, the change in the segment becomes noticeable and significant. There is high drift in the segment of High-End Customers due to the demand of highly performing products. There is a low drift on the Low-End Customer segment due to their low demand on the performance of sensors.

Customers will not be willing to purchase the product if it does not fall within their segment in the perpetual map. The Research and Development team should ensure that products fall within the positioning of the customer based on their demands. If it’s the High-End Customers, the department should ensure that sensors are regularly revised and new and improved sensors are introduced into the market.

Estimation of the Customer Survey Score

This score plays an important role in the demand of a product. The calculation of the demand of each product at any given month is given by the score of that product divided by the total number of scores. For example, if the product score is 20 in June, the competitor’s score is 20,20,20,10, 10 then the demand of your product will be equal to 20/ (20+20+20+20+10+10) which gives 20 per cent demand of that product.

The 4 Ps in the marketing mix which include product, price, promotion and place determines the customer survey score. The buying criteria contains the price and product which brings out their relationship. Promotions involves making the customers aware of your products. Place deals with the distribution channels of a product in a segment. It also deals with the accessibility of the products to the customers at any given point.

There are other factors that are used in determining the score such as the credit terms and availability.  The accounts receivable policy expresses the credit terms while availability is determined by the inventory shortages.

Accounts Receivable

This policy sets the amount of time the customers have to pay for their purchases. At 120 days, the customer survey score does not reduce. At 60 days, the score reduces by 1.5%, and at 30 days it reduces by 8%. When there are no credit terms offered, the score reduces by 35%.

Awareness

This is the process of ensuring the customers know that your products exist in the market. It is an aspect at the promotional budget. Assuming that you have not promoted your product for many years and your competitor has been promoting their product aggressively, then you will have 0% awareness and the competitor will have 100% awareness. The survey score will be twice as much as yours assuming that the products have equal aspects.

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