Chapter 4
__________ is a market research techniques that involves enlisting a small number of potential customers, typically 8 to 12, to provide feedback about a product or service.
a focus group
The __________ portion of the business model canvas identifies how a company intends to promote itself to potential customers, communicate with customers who purchase its products or services, and how it plans to distribute its products or services to customers.
channels
The Great Recession during which many businesses, both big and small, failed, is an example of which macro force?
economic
Which type of market research involves gathering and analyzing data that has already been compiled and is available, often at a reasonable cost or sometimes even free?
secondary
Which macro force in an industry addresses the similarities and the differences among the various generations (for example, Baby Boomers, Generation X, Millennials, and Generation Z)?
demographic
The typical entrepreneur in the United States launches a business with an average of $________
30,000
Retail giant Walmart's ability to negotiate price concessions from its vendors and suppliers illustrates which of the forces in Porter's Five Forces model? A. Bargaining power of buyers B. Bargaining power of suppliers C. Threat of substitute products and services D. Rivalry among companies competing in the industry E. Threat of new entrants
A
Which of the following is not a component of the Really Big Idea Sketch Pad?
Profit
Sonya is considering launching a daycare center in her community and uses information from the U.S. Census Bureau to determine the number of children who are less than six years old, the number of households with children present, and a breakdown of the household incomes in her community as she assesses the feasibility of her business idea. What type of market research is Sonya using?
secondary
The influx of women into the U.S. workforce in the 1970s and 1980s and the sweeping changes that this event created in both society and the economy is an example of which macro force?
sociocultural
A study by CCH and Wolters Kluwer concluded that 49 percent of business start-ups fail due to:
starting with too little money
Which element lies at the center of the business model canvas and represents the collection of products and/or services a business will offer to meet the needs of customers?
Value proposition
The _______ element of a financial feasibility analysis involves estimating the amount of start-up investment an entrepreneur needs to launch the business.
capital requirement
What type of market research involves collecting data firsthand and analyzing it?
primary
E-mail has given companies and individuals the ability to send documents as attachments instantly to recipients around the world rather than sending them through a package delivery services such as FedEx, UPS, DHL, and others. For these package delivery services, e-mail represents which of the following forces in Porter's Five Forces Model? A. Bargaining power of buyers B. Threat of substitute products and services C. Threat of new entrants D. Rivalry among companies competing in the industry E. Bargaining power of suppliers
B
Which of the following factors makes an industry more attractive? A. The items that companies sell account for a large portion of the cost of their customers' finished products. B. The opportunity to sell a differentiated product exists. This is the correct answer. C. Quality substitute products are readily available. Your answer is not correct. D. Competitors are of similar size and capability. E. The prices of substitute products are significantly lower than those of the industry's products.
B
A(n) ________ is the simplest version of a product or service of a product or service with which an entrepreneur can create a sustainable business.
minimum viable product
Which part of the new business planning process is a visual process that examines how all of the "moving parts" of a business must work together to build a successful business venture?
Business model
Which of the five forces in Porter's Five Forces Model has the greatest impact on companies competing with one another in a given market? A. Bargaining power of suppliers B. Threat of new entrants C. Threat of substitute products and services D. Rivalry among companies competing in the industry E. Bargaining power of buyers
D
Generally, an industry is more attractive when: A. the number of competitors is large, or, at the other extreme, quite small. B. the opportunity to sell a differentiated product or service exists. C. the industry is growing at a rapid rate. D. competitors in the industry are not similar in size or capability. E. All of these are correct.
E
Which of the following components of the Really Big Idea Sketch Pad addresses the unique features of a start-up company's product or service that will differentiate it from those of competitors?
core competencies
A(n) ________________ is the process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business.
feasibility analysis
Which part of a feasibility analysis assesses the concept from the broadest "macro" level?
industry and market feasibility
Enrique has built a prototype of a new product that he created and put it into the hands of several potential customers, who have agreed to use it and provide him with feedback. What type of market research is Enrique using?
primary
Which of the following elements is not part of Porter's Five Forces Model?
profit potential of the industry
Creating an original, functional model of a new product that entrepreneurs put into potential customers' hands so that they can test and use it involves which market research technique?
prototype
Teresa, owner of a start-up company, divides the earnings that she has forecasted for her business by the amount of capital she has invested in the business. She has calculated her company's:
return on investment
Which of the following components of the Really Big Idea Sketch Pad involves explaining why a proposed product or service is valuable to customers and how it addressees an unmet need?
value proposition
