Sensitivity Analysis with the Compete IFPS/Personal Student Analysis Package: A Marketing Decision Support System

Abstract

Sensitivity analysis with the COMPETE IFFS/Personal worksheet is used by student teams participating in the marketing simulation COMPETE (Faria, Nulsen, and Roussos 1984) to explore and evaluate alternative scenarios before finalizing their marketing decisions. Using this type of sensitivity analysis, marketing teams can preview the results of their marketing decisions under a given set of assumptions. Based on this preview they may find it necessary, for instance, to adjust their desire to increase advertising expenditures, hire additional sales people, plow money into R&D, and spend heavily on marketing research. Students can, thereby, improve their decision-making skills by using this simple yet powerful marketing decision support system.