entrepreneurship Test #2

What was Tata's CVP for its product to replace scooters in India? Learn why the scooters were the popular mode of transportation. Provide an affordable, safer mode of transportation. Make a high-end luxury vehicle. Build more affordable buses.

Provide an affordable, safer mode of transportation.

______ refers to the people who compete for customers in the marketplace. Supply Buyers Demand Vendors

Supply

What did the Babson College students learn from the flag experiment in class? Students continued to be distracted. It was too expensive, though it was effective. Calling out to students was more distracting than had been hypothesized. The flags deterred students from being unproductive and made them engage more in class.

The flags deterred students from being unproductive and made them engage more in class.

What insight did Knock Knock City founders gather while hauling around baggage as they were traveling? Travelers should use backpacks rather than roller bags. There is a connection between the need for baggage storage and empty retail space. There is a link between baggage storage and bus terminal storage. People are not comfortable storing their bags with strangers.

There is a connection between the need for baggage storage and empty retail space.

How did design thinking help 2U Laundry gain customers? They took over their competition. They built their business from angel investors. They expanded by looking at customers different from themselves. They scaled back to offer only dry cleaning services.

They expanded by looking at customers different from themselves.

How did a competitor influence 2U Laundry? They went out of business which caused uncertainty in the market. They hurt the overall business market perspective. They caused a glut in the market. They created a new niche.

They went out of business which caused uncertainty in the market.

A good experiment is a well-planned experiment. True False

True

A good tip to build curiosity is to connect with people who are curious. True False

True

An example of a lack-of-access problem is solar energy. True False

True

Bryan Bitticks, a Great Clips franchise owner, targeted younger customers by creating a virtual online experience. True False

True

Building personas is an important exercise in understanding customers. True False

True

Design thinking is a skillset held by entrepreneurs. True False

True

Developing empathy is part of design thinking. True False

True

Fulfilling unmet needs of customers using an existing product is called differentiation. True False

True

Latent needs are needs we did not know we had. True False

True

One of the key factors of brainstorming, in Osborne's model, was to "hold back criticism until the creative current has had every chance to flow." True False

True

The CVP helps delineate the value of the entrepreneur's idea. True False

True

The founder of WordSmithRapport used experimentation to validate her hypothesis. True False

True

Walt Disney animators use storyboards to develop ideas. True False

True

When novice entrepreneurs are identifying market opportunities, they tend to focus on novelty. True False

True

______ testing is the entrepreneur working behind the scenes to manually provide the service. Live product Wizard of Oz Concierge Preselling

Wizard of Oz

SELECT ALL THAT APPLY. What main elements define a market? a given set of products or services those with a common set of wants or needs a set of actual or potential customers people solving problems

a given set of products or services, those with a common set of wants or needs, a set of actual or potential customers

Design thinking is ______. the solution a special skillset an entrepreneurship an artist creation

a special skillset

SELECT ALL THAT APPLY. Which components of the BMC are part of infrastructure? value proposition activities resources revenue streams

activities, resources

The technology ______ life cycle is a model describing the process of acceptance of new innovation over time. adoption group product early

adoption

SELECT ALL THAT APPLY. What are the three main types of approaches to creating value propositions? favorite-market all-benefits points-of-difference resonating-focus

all-benefits, points-of-difference, resonating-focus

Once you have a short list of broad questions, it is important to have a(n) ______. serious face calm attitude approach hurried pace

approach

What powerful way of gathering data did Hivecast's founder use? asking one random person one question every day buying billboards to advertise giving away fidget spinners with a website name biking to work every day

asking one random person one question every day

Which item below correctly identifies something Pulp Pours did as they looked at their target customers? hosted special invitation-only parties studied wellness businesses looked at their competition assessed a target demographic

assessed a target demographic

When conducting an interview, in addition to the questions, you should record ______. but not repeat the answers the time and temperature during the interview the person's tone when answering the question basic facts about the person

basic facts about the person

When entrepreneurs check out all the data for customers by going to where they will sell the products and then estimating realistic sales, they are using the ______. bottom-up analysis gut check tornado competition

bottom-up analysis

When conducting an interview, you should ask ______. yes/no questions questions you know the answers to as confirmation broad, open-ended questions act nervous to put the person at ease

broad, open-ended questions

A ______ describes the rationale of how a new venture creates, delivers, and captures value. business model innovation business plan differentiation

business model

SELECT ALL THAT APPLY. What tests involve websites that help assess interest? button to nowhere advertising task completion landing page

button to nowhere, landing page

Which realization did this entrepreneur see as a result of using design thinking? using a Fed Ex approach maintaining high quality cutting back to only dry cleaning capacity is underutilized

capacity is underutilized

What one item was identified as the biggest change that occurred for LaFleur Winery? mentor support feedback from trusted friends change in club membership documentation of changes

change in club membership

SELECT ALL THAT APPLY. What are the channels for the delivery of the value proposition? communication sales street distribution

communication, sales, distribution

The type of thinking that allows us to narrow down the number of ideas generated is known as ______. constructive convergent divergent inspiring

convergent

What is an important trait of entrepreneurs? shyness curiosity bravado stubbornness

curiosity

What is one of the most important parts of an experiment? sales engineering feedback delayed feedback customer engagement

customer engagement

Customer segments are part of ______. decision makers corporate planning customer groupings of a market business models

customer groupings of a market

What is the visual representation that captures the customer experience across multiple touchpoints of the entrepreneur's business? Venn diagram graphic organizer spreadsheet customer journey map

customer journey map

Creating a CVP involves uncovering ______. customer needs a cheap, new product an overt benefit the financial needs of a company

customer needs

CVP stands for ______. customer value proposition customer versus participant customer virtue product caring value proposition

customer value proposition

The ______ is a statement that describes exactly what products or services your business offers and sells to customers. offering prospectus customer value perspective customer value proposition

customer value proposition

The customer segment defined by who they are is ______. geographic demographic offering behavior

demographic

"How might we" is an important phrase in the ______ process, according to the IDEO CEO Tim Brown. self-cueing creative process entrepreneur design thinking

design thinking

The Designing for Growth author's four questions and The Stanford Design School five phases are other approaches to ______. observations entrepreneurship ideas design-thinking

design-thinking

What answers the question "What do people need?" experiment pressure feasibility desirability

desirability

How can entrepreneurs make products and services attractive to more than one customer segment? insight one broad CVP different CVPs for each customer segment niche market

different CVPs for each customer segment

Entrepreneurs use ______ to try to encourage existing customers to switch to their product. packaging pricing advertising differentiation

differentiation

The advent of Massive Open Online Courses (MOOCs) is an example of the business model ______. imitation disruption innovation differentiation

disruption

SELECT ALL THAT APPLY. In order to cross the chasm after the beachhead market is identified, the entrepreneur should ______. penetrate the competitors' market space distribute the product through the correct channels position the product create the sample product first

distribute the product through the correct channels, position the product

What is the concept similar to the practice of play? divergent thinking inspiration insight convergent thinking

divergent thinking

Who are the people who tend to buy a product once it begins to have mass appeal? laggards early majority early adopters innovators

early majority

Researchers at Massachusetts Institute of Technology created the AGNES suit in order to gain empathy for what population? elderly babies athletes millennials

elderly

Developing ______ ability allows entrepreneurs to recognize both the physical and emotional needs of people. empathic self-regulating sympathetic telepathic

empathic

which of the following is the correct order of Stanford Design School's five phases of design-thinking from first to last? define, ideate, prototype, empathy, test prototype, test, ideate, define, empathy ideate, empathy, define, prototype, test empathy, define, ideate, prototype, test

empathy, define, ideate, prototype, test

The most important aspect of building community can be summarized as engagement and connectedness great crowds every weekend great prices to beat the competition special events that drive business

engagement and connectedness

SELECT ALL THAT APPLY. Which of the following help differentiate 2U Laundry from their competitor? focusing only on dry cleaning established static scheduled routes developed owning the processes using an Uber or Fed Ex approach to pick-up/delivery

established static scheduled routes, developed owning the processes

SELECT ALL THAT APPLY. What are the types of design? fashion architectural steady industrial

fashion, architectural, industrial

What answers the question "Can we do it?" experiment desirability feasibility pressure

feasibility

What is the interview done after the experiment called? peer feedback initial customer

feedback

In order to test a way to keep college students more focused on class, Babson College students built an experiment using a(n) ______. flag whistle whiteboard app

flag

A storyboard involving a large piece of white paper using color, arrows, and labels is ______. gallery sketch before and after back of napkin Disney sketch

gallery sketch

One customer segment related to where the customers are located is ______. lifestyle demographic geographical behavioral

geographical

Lack of access prevents people's ability to______. try new products figure out a new product get jobs done communicate with other entrepreneurs

get jobs done

SELECT ALL THAT APPLY. Which of the following represent LeFleur Winery's concept of building community? great place to be best prices in town participate with guests place to tell stories

great place to be, participate with guests, place to tell stories

SELECT ALL THAT APPLY. In which ways did social media play in helping LeFleur Winery make decisions? helping to plan for events tracking social media for expected attendance at events telling which products to sell marketing to millennials

helping to plan for events, tracking social media for expected attendance at events, marketing to millennials

An example of a local event that would be considered experimental for LeFleur Winery is ______. inviting college student clubs hosting a plant workshop event working with competitors testing prices that customers prefer

hosting a plant workshop event

Design thinking helps create a system to explore new ideas in a ______ way. creative robotic critical human-centric

human-centric

In order to abandon popular assumptions, entrepreneurs need a clear ______. hypothesis idea experiment financial vision

hypothesis

In traditional marketing, the most viable customer segment is ______. young tested identified unfamiliar

identified

In what phase of the design-thinking process does experimentation occur? viability ideation inspiration implementation

implementation

The process of testing assumptions to shape the final project is the ______ phase. inspiration ideation isolation implementation

implementation

A(n) ______ is someone who uses status to promote a product without necessarily using it himself. recommender user purchaser influencer

influencer

SELECT ALL THAT APPLY. Which of the following are parts of the business model? infrastructure offering testing customers

infrastructure, offering, customers

Who are the first customers to try a new product? laggards early adopters early majority innovators

innovators

Companies group customers into specific groups to gain ______ about who might buy their product. observations insight personas facts

insight

User + Need + Why describes a(n) ______ statement. convergent divergent insight observation

insight

Put the three phases of IDEO's approach combining empathy, creativity, and action in order from first to last. ideation inspiration implementation

inspiration ideation implementation

What is a fast and easy way to get insights into your idea? prototype interview experiment hypothesis

interview

The component that describes managing such stock and design is ______. key resources channels customer relationships key activities

key activities

Which category of customers tends not to buy the new innovation? early adopters early majority laggards innovators

laggards

SELECT ALL THAT APPLY. LeFleur Winery experiments in two different ways with their customers including ______. local vender events social media trials the wines group sessions

local vender events, the wines

According to this entrepreneur, the ______ always dictates where you should take the company. competition attorney accountant market

market

What is the method of estimating the number of potential customers and possible profitability? market sizing customer sales market analysis customer acquisition

market sizing

What is the version of a new product which allows for maximum collection of validated learning with the least effort? interview minimum viable product paper testing rapid prototype

minimum viable product

In order to create the business model canvas, the business ______ is broken into nine components. plan model market visual

model

The business intends to create, deliver, and capture value for customers is known as the business ______. market model model canvas plan

model canvas

What is the action of closely monitoring the behavior and activities of users/potential customers in their own environment? inspiration insight observation ideation

observation

SELECT ALL THAT APPLY. What does Pulp Pours look for in the companies they target as customers? traditional corporate-minded offering wellness options youthful

offering wellness options, youthful

SELECT ALL THAT APPLY. Customers can be divided into separate segments if ______. paying for different aspects of the offer they call for same types of relationships their needs validate an offering they have different distribution channels

paying for different aspects of the offer, their needs validate an offering, they have different distribution channels

Receiving feedback from ______ was essential for moving forward with the original business plan. business professionals customers and friends a helpful mentor people they trusted

people they trusted

Curiosity increases ______. perseverance overconfidence shyness mistakes

perseverance

SELECT ALL THAT APPLY. Marketing sizing is a method of determining ______. actual customers potential customers possible revenue financial budgets

potential customers, possible revenue

Developing keen observation skills requires ______. practice participation personality perfection

practice

What is the message of CVP? promising value to the customer persuading the customer to buy listening to competition convincing the customer to need

promising value to the customer

What type of customer is a mother who buys her son a toy train she noticed at the grocery store? purchaser user influencer parent

purchaser

SELECT ALL THAT APPLY. Surprisingly, which customers turned out to be the largest growth market? regular laundry cleaning customers college students in dorms dry cleaning customers working families with children

regular laundry cleaning customers, working families with children

Building a customer value proposition for LaFleur Winery includes: revisiting how their store welcomed customers introducing new wines and labels revamping their membership in a truly unique way offering special discounts and perks

revamping their membership in a truly unique way

What is the prototype version that lets the entrepreneur step into the user's shoes? Wizard of Oz storyboard role-playing Lego

role-playing

According to the wine business data, which product was on the rise with customers? white wines bold red wines red blends rose wines

rose wines

Current buyer's decisions occur without ______. focus groups social networks seller input customer understanding

seller input

SELECT ALL THAT APPLY. Taking steps to build the business model for LaFleur Winery included which items from below? shared with trusted friends examined mentor's business worked long hours developing extensive plan put own twist on business

shared with trusted friends, examined mentor's business, put own twist on business

The business model presented in the textbook is a journey to gather evidence and prove the startup can be ______. small-scale sustainable environmentally friendly explored

sustainable

Efficient changes to the business model can be made during the startup stage because ______. the business is small in the beginning the mistakes are obvious it's the only time a business needs to change the investors are willing to contribute more money

the business is small in the beginning

What is the share of the market? the section of the market targeted actual sales the total market demand the portion of the market realistically reached

the portion of the market realistically reached

After allowing customers to create red blends, LeFleur discovered that ______. they discovered a new blend customers liked it was not a good fit for their business the community was disengaged they will not do this type of testing again

they discovered a new blend customers liked

What was an aspect of their customer base that was surprising to these entrepreneurs? they were younger than expected they were more diverse than expected they were older than expected They didn't visit as frequently as expected

they were more diverse than expected

Which event has been popular but may not be economically feasible to continue to offer ______. line dancing painting planting trivia

trivia

SELECT ALL THAT APPLY. What activities have they experimented with ______. trivia customer conversations line dancing painting

trivia, line dancing, painting

SELECT ALL THAT APPLY. Entrepreneurs are able to create a product or service that customers are willing to buy by considering customer's ______. unmet needs markets desires motivations

unmet needs, desires, motivations

SELECT ALL THAT APPLY. Which of the following are types of customers? testers users recommenders influencers

users, recommenders, influencers

While helping Rise Science develop their sleep training system for its customers, IDEO identified better usership of the new system by customers when ______. using an impersonal approach to onboarding creating infomercials to educate consumers using an introduction to the system by a company employee to the customer sending the kit to the customer with a customer hotline for questions

using an introduction to the system by a company employee to the customer

What answers the questions, "Can we make money doing it? Is it sustainable?" desirability feasibility viability experiment

viability

SELECT ALL THAT APPLY. What are sources for data from customers? competition website analytics direct contact social media

website analytics, direct contact, social media

How did the entrepreneur come up with a robotic lighting company? when studying under bad light late at night after being hired by lighting company over a camping trip with friends while shadowing a surgeon

while shadowing a surgeon

SELECT ALL THAT APPLY. Which of the following methods did the LeFleur Winery principals use when examining their customers? winery data talking to people in the business local fairs and food shows pop-up events

winery data, talking to people in the business

Which of the following were identified as part of the target customer group for Pulp Pours? primarily female young working professionals 34-55 age group traditionalists

young working professionals

What is the difference between a customer and a consumer? A customer buys the product while the consumer uses it. A customer uses the product while the consumer only pays for it. There is no difference between a customer and a consumer. A consumer buys the product and uses it.

A customer buys the product while the consumer uses it.

What is most challenging in identifying market opportunity? A large enough market exists. Any market exists. A niche market exists. Someone will buy the product.

A large enough market exists.

What is the first step in scientific experimentation? Prove the hypothesis. Assess data. Ask lots of questions. Carry out background research.

Ask lots of questions.

What is a way in which entrepreneurs solve the customer's problem of lack of money? Make products for people who can afford them. Deliver previously unaffordable products or services for less. Teach the customer to make more money. Convince the customer of the additional value added by the new product.

Deliver previously unaffordable products or services for less.

______ personas save you time and resources by identifying the people who will not buy the new product. Exclusionary Hesitant Buyer Innovator

Exclusionary

______ are the methods used to prove or disprove the validity of an idea or hypothesis. Prototypes Peer reviews Interviews Experiments

Experiments

All customer journey maps are detailed and complicated in order to ease the planning process down the line. True False

False

All five categories of customers in the adoption life cycle will adopt the new innovation. True False

False

Amazon is an example of a niche market. True False

False

Carrying out background research comes after developing a hypothesis. True False

False

Design thinking applies to new products and services only. True False

False

Design thinking begins by asking "Will this idea make money?" True False

False

Design thinking involves "if you build it, they will come." True False

False

Empathy involves thinking about what would make the entrepreneur's life better. True False

False

Entrepreneurial experiments are simply smaller-scale versions of analytical experiments; both rely upon data systems analytics. True False

False

FedEx solved delivery transportation before focusing on customer needs. True False

False

Getting feedback directly from customers is not useful because it is difficult to organize. True False

False

IDEO found it easy to redesign the Los Angeles voting system since it was only a matter of making a voting machine. True False

False

Imitation is an acceptable business model. True False

False

Infrastructure includes financial forecasts. True False

False

Inspiration is the phase of design thinking when you have a solution. True False

False

Most entrepreneurs ask too many questions. True False

False

Segmenting markets is not a good way to generate more business. True False

False

Testing hypotheses is only about gathering data. True False

False

The best feedback interview questions are yes/no. True False

False

The four parts of the business model exist on their own. True False

False

The only definition of the market is the place where people sell goods. True False

False

The terms "pilots" and "prototypes" are interchangeable. True False

False

To retain curiosity, it is usually best to enter any room by presenting yourself as an expert so that other curious people will actively seek you out. True False

False

When analyzing the market, entrepreneurs need to go for it and not worry about if the numbers are wrong. True False

False

What describes something that can be possibly achieved in the near future? Desirability Viability Feasibility Maintainability

Feasibility

SELECT ALL THAT APPLY. Which of the following questions are answered in the implementation phase of design thinking? How do I test the idea? How do I come up with the idea? When do I start making money? How do I get feedback for the idea?

How do I test the idea?, How do I get feedback for the idea?

SELECT ALL THAT APPLY. When considering customers, entrepreneurs must ask themselves ______. How will you reach your target audience? Who will pay for what I am offering? How will you maintain customer relations once they're established? What resources do I have to deliver the CVP?

How will you reach your target audience?, Who will pay for what I am offering? How will you maintain customer relations once they're established?

SELECT ALL THAT APPLY. When creating a storyboard, you should consider which of the following questions? How will your customer benefit from your product/service offering? What is the problem your customer is experiencing? Why are some people not interested? What are you offering as a solution to the problem?

How will your customer benefit from your product/service offering?, What is the problem your customer is experiencing?, What are you offering as a solution to the problem?

Why is the BMC important? The venture capitalists will require it for financing. It fills in the details of the business model. It provides more jobs within the company. Without it, the business cannot succeed.

It fills in the details of the business model.

Why is observing important to the entrepreneurial process? It is important to see the bigger picture. It is easy to consciously stop and simply observe. We have an ethical mandate to do so. It is a natural reaction to our surroundings.

It is important to see the bigger picture.

What did IDEO discover when tasked with developing a medical device for nurses? Nurses had no idea what they needed. Nurses could describe what they needed. Nurses needed to be observed working. Nurses' feedback was not necessary.

Nurses needed to be observed working.

What is an early and often crude version of the product called? Prototype Model Mold Paper testing

Prototype

______ personas are profiles or representations of the ideal customer based upon information and market research. Buyer Exclusionary Ideal Inspiration

Buyer

General Mills had to change its business model to make new yogurt with less sugar. True False

False

______ are customers that veto or slow down purchasing. Purchasers Users Recommenders Saboteurs

Saboteurs

Interviewing is an important part of the inspiration phase. True False

True

A ______ market comprises a large group of customers with similar needs and problems. niche segmented mass diversified

mass