ENTR Ch 8 Midterm

1. A ______ describes the rationale of how a new venture creates, delivers, and captures value. a. business model b. business plan c. mission d. vision

A

12. The infrastructure generally includes ______. a. all the resources that are needed to deliver the CVP b. only technological resources that are needed to deliver the CVP c. only financial resources that are needed to deliver the CVP d. only human resources that are needed to deliver the CVP

A

18. What problem did IKEA solve for customers in its CVP? a. lack of attractive low-cost furniture b. lack of do-it-yourself furniture c. lack of European designs d. lack of antique furniture

A

19. What problem did FedEx solve for customers in its CVP? a. the lack of easy, door-to-door, overnight delivery of packages b. the lack of ways to obtain customer signatures for received goods c. the lack of variety in shipping options d. the lack of prepackaged envelopes

A

21. Which of the following allowed Tata Motors to be successful? a. its low-cost cars b. its small cars c. its self-parking cars d. its line of attractively designed scooters

A

23. As presented in the text, what major customer problem did ThedaCare hospital system solve in their CVP? a. lack of time b. lack of access c. lack of skill d. lack of money

A

28. What is the key feature of the resonating-focus approach to CVP? a. It focuses on why people will like your product. b. It describes all the features of the product relative to the competition. c. It tells customers why they should buy your product. d. It describes all the positive features of your product.

A

3. How do business models help entrepreneurs create value? a. by fulfilling unmet needs in an existing market b. by ensuring profits will be made c. by guaranteeing the stock will be valued d. by providing an interview template for new customers

A

34. Breaking customers into groups according to their different needs and problems would create which of the following market types? a. segmented b. niche c. mass d. diversified

A

37. Which of the following is most likely to have a diversified market? a. a hardware store that sells to contractors and nonprofessionals b. a dollar store that promotes its low prices c. a pet store that offers both supplies and small animals d. a retail shop that sells goods aimed at expectant mothers and babies

A

39. In the business model canvas (BMC), what components are related to customers? a. customer segments, channels, and customer relationships b. customer segments and value proposition c. customer segments and key activities d. customer segments and channels

A

46. What is the left side of the BMC focused on? a. value delivery b. value creation c. idea generation d. the value proposition

A

47. Jerry has stated that his business appeals to people 50 years of age and older who are restructuring their finances for retirement plans. What has Jerry defined? a. a niche market b. a segmented market c. a mass market d. a diversified market

A

10. The offering includes which of the following? a. the investment b. the customer value proposition c. the market segment d. the return on investment

B

15. Which of the following is necessary for an effective customer value proposition (CVP)? a. It must not have any direct competition. b. It must offer better value than the competition. c. It must cost less than the competition. d. It must offer the exact same value as the competition

B

2. The practice of hypothesizing, testing, and validating to create a business model is called ______. a. scientific entrepreneurship b. evidence-based entrepreneurship c. business planning d. customer value planning

B

20. To develop a good CVP, products must not only fulfill a need but also ______. a. have a technological component b. fit into customers' lifestyles c. fill a large market d. appeal to affluent customers

B

24. Andrew owns a popular but expensive Chinese restaurant. In order to introduce more people to his brand, he offers a series of one-time "taste fairs" in which he brings his recipes to a locally sponsored event. Customers are able to pay modest amounts for small servings of his creations while not paying for the ambiance of the famous restaurant. What problem is Andrew addressing? a. customers' lack of time b. customers' lack of money c. customers' lack of skills d. customers' lack of networks

B

26. Which term refers to the CVP approach that involves listing all the advantages of your product or service without comparing it to others? a. product-market fit b. all-benefits approach c. resonating-focus approach d. points-of-difference approach

B

32. A ______ market is a small market segment comprised of customers with specific needs and requirements. a. mass b. niche c. multisided d. diversified

B

33. Gift Prescriptions is a company that offers small gifts that can be left behind in doctors' offices. Gift Prescriptions sells their gifts to pharmaceutical companies and medical supply stores who want to leave doctors a small gift in appreciation for their time. Gift Prescriptions' market segment would be described as a ______ market. a. mass b. niche c. segmented d. diversified

B

41. In the business model canvas (BMC), what components are included in financial viability? a. revenue streams and market size b. cost structure and revenue streams c. investment funds and revenue streams d. revenue streams and growth projections

B

42. The answer to the question, "What are the different ways I can reach my customer?" will result in which component of the BMC? a. customer segments b. channels c. value proposition d. customer segments

B

43. Which of the following is the BMC component most involved with building positive feelings about your business and customer loyalty? a. value proposition b. customer relationships c. key activities d. channels

B

44. What is the right side of the BMC focused on? a. value delivery b. value creation c. idea generation d. the value proposition

B

45. When entrepreneurs are figuring out suppliers, associates, and distributors, they are determining ______. a. key resources b. key partners c. channels d. revenue streams

B

48. Danielle will be offering a tool-sharpening service at her garden and landscaping store on the first Tuesday of every month. She believes that this fulfills a customer need and that customers will help spread the word about her location and services. On which BMC component is Danielle focusing? a. value creation b. customer relationships c. market segmentation d. key activities

B

50. The ______ approach to CVP involves identifying and promoting all the benefits of your product or service relative to the competition and recognizes your offering is unique and different from others in the market. a. all-benefits b. points-of-difference c. resonating-focus d. product-market fit

B

52. When determining your revenue streams, which of the following questions is among those you should ask yourself? a. How do I establish and maintain relationships with customers? b. How much are my customers willing to pay? c. What are the most important costs inherent in the business model? d. What resources are the most expensive to get?

B

54. As described in the text, entrepreneurs Carlton and Hazel Solle created Bioscarf as an alternative to common filtration masks. This is an example of a ______ market. a. mass b. niche c. segmented d. diversified

B

7. BlackBerry, which gained significant market share in the early 2000s in the business, government, and consumer markets, lost market share because ______. a. demand for smartphones declined b. competitors offered smartphones with better designs and more features c. competitors lowered prices to undercut BlackBerry d. its advertising was not focused on new customers

B

11. Within a business model, customers refer to ______. a. people who express loyalty to your brand b. people who have purchased your product or service c. the people who populate the segments of the market your offering intends to serve d. the people in the geographic reach of the business

C

13. Which of the following would be included when describing the infrastructure? a. financial viability b. customers c. facilities d. the offering

C

14. The revenue and the cost structures would be included in which of the four parts of the business model? a. the offering b. infrastructure c. financial viability d. the customers

C

16. A CVP requires that you think about your business from the perspective of what group? a. the employees b. the investors c. the customers d. the operations team

C

25. Genetic testing services like 23andMe offer DNA analysis based on a saliva sample submitted by mail. Based on the discussion in the text, what need is 23andMe addressing in their CVP? a. a lack of benefits b. a lack of skill c. a lack of access d. a lack of money

C

27. Christine has obtained a job pitching a product at a local state fair. Her job is to demonstrate cookware, highlighting its features and demonstrating its use as she prepares food for visitors who can watch her cook and try samples. Christine will be selling the cookware based on which CVP type? a. resonating-focus approach b. points-of-difference approach c. all-benefits approach d. product-market fit approach

C

29. Which of the following is considered the "gold standard" for CVPs? a. all-benefits approach b. points-of-difference approach c. resonating-focus approach d. low-cost advantage approach

C

31. Which of the following best defines the term mass market? a. a generic group outside the target market b. a large crowd of nondiscriminating consumers c. a large group of customers with similar needs or problems d. a global market

C

38. In the business model canvas (BMC), what is covered under the offering? a. the value proposition and customer segments b. customer segments c. the value proposition d. customer segments and channels

C

4. Fulfilling unmet customer needs using an existing product or service is called ______. a. durability b. adaptation c. differentiation d. viability

C

40. In the business model canvas (BMC), what components are included in infrastructure? a. organizational design, facilities, and key resources b. key assets, key resources, and channels c. key activities, key resources, key partners d. cost structure, channels, and key partners

C

49. If an automobile manufacturer advertised an "automobile for all ages," what market is it addressing? a. a target market b. a niche market c. a mass market d. a diversified market

C

55. A common feature in the stories in the text about IKEA, FedEx, and Tata Motors is that ______. a. they all sell unique products to a limited number of peer customers b. each company has created its own processes and resource models to suit its CVP and industry c. distribution occurs in a different way from traditional services d. interactions are business to business

C

8. Given that startups can be flexible in their business model, what general guide should they follow? a. Existing models should not be changed. b. Existing models should be replaced frequently. c. Existing models should be prepared to adjust as markets change. d. Existing models require annual updating.

C

9. What are the four parts of a business model? a. target customers, employees, founders, investors b. financing, infrastructure, employees, customers c. offering, customers, infrastructure, financial viability d. financing, customers, product, service

C

17. The first step in creating your CVP is ______. a. persuading customers to purchase your product or service b. persuading customers to sign up for your marketing emails c. discovering your customers' contact information d. uncovering what your customer really needs

D

22. What are the four major categories of problems customers typically experience? a. lack of access, lack of support, lack of money, lack of friends b. lack of money, lack of contacts, lack of interest, lack of time c. lack of skill, lack of knowledge, lack of support, lack of money d. lack of time, lack of money, lack of skill, lack of access

D

30. What type of target market do toilet paper manufacturers target? a. niche b. segmented c. multisided d. mass

D

35. Which of the following offers a variety of products to two or more customer segments with different needs, even if the resulting markets are unrelated to one another? a. segmented market b. niche market c. mass market d. diversified market

D

36. Which term describes two or more customer segments that are linked but independent of each other? a. mass markets b. diversified markets c. matching markets d. multisided markets

D

5. What is the relationship between the business plan and the business model? a. The business model will not be possible without a business plan. b. A business plan is more of an exercise while a business model is a formal structure. c. Business plan is another term for business model. d. A business model is a journey to gather evidence while a business plan is a formal document.

D

51. As described in the text, the UK-based nonprofit Wayfindr provides software that can be used by anyone who needs audio instructions to help them navigate public transportation. For vision-impaired public transportation users, the software addresses what problem? a. lack of time b. lack of money c. lack of skills d. lack of access

D

53. When determining your cost structure, which of the following questions is among those you should ask yourself? a. How do I establish and maintain relationships with customers? b. How much are my customers willing to pay? c. What activities can be outsourced? d. What resources are the most expensive to get?

D

6. It is typically easier for new businesses to change their business model because new businesses ______. a. have the capital to fund such changes b. have not yet formulated a business plan c. have no competitors d. tend to be smaller and more agile

D