Module 6

The "share of market" is the portion of a market that a specific company proposes to capture.

True

Which of the following is NOT one of the customer judgments addressed in this module?

What do they experience now?

Which of the following questions is most directly related to learning about customer gains?

Which is more important to you, lower prices or higher quality?

Effective entrepreneurs conduct extensive research so they can describe customer personas they are trying to help and market segments they might address with their offerings. Which of the following key issues for understanding customers are most directly addressed by these methods?

Who are they?

In addition to awareness and frustration, entrepreneurs should consider whether customers in their initial target market segment

have acquired or budgeted money to address their problem.

The starting point for estimating the size of market you are addressing is to

know the problem you are solving.

Dr. Ford just signed up for an Instagram account so he could learn more about what kids are talking about these days. With respect to innovation adoption, Dr. Ford would be described as a(n)

laggard

Auto-correct employed in a texting app would be an example of a pain reliever that helps

limit risks associated with making mistakes.

Part of determining your potential market size is to estimate the percentage of customers who match your persona description who will buy your offering. This is typically referred to as your

market penetration.

What is the critical factor that helps you judge whether your interests can motivate a successful new venture or whether it will be more like a hobby?

market size

To estimate your market size (opportunity expressed in dollars) you need to multiply

market volume x market value.

When conducting customer discovery and other forms of "startup science", knowing who your customers are helps you most directly to

measure how customers respond to solutions.

Evidence that relevant stakeholders (e.g., customers, distributors, etc.) value your ideas and are willing to support your venture or purchase your offering is key to building new venture

momentum

Belinda created new material that could be used to make bags and luggage up to 30% lighter than traditional materials. This example best illustrates creating customer gains by

outperforming current alternatives.

Efforts to reduce friction and risk are associated with

pain reliever triggers.

An important opportunity judgment that entrepreneurs inform by researching performance and price of alternative solutions focuses on

painkillers.

An important opportunity judgment that entrepreneurs inform by researching importance, frequency, urgency and pervasiveness focuses on

problems

One can think of opportunities existing where an entrepreneur's judgment finds an overlap among

problems, people, and painkillers.

A market opportunity is usually described as

the total revenue that might be earned from a specified share of the market.

Which of the following questions is most directly related to learning about customer pains?

Are there upfront costs, a steep learning curve, or other obstacles preventing adoption?

Which of the following is NOT a trigger to help imagine better gain creators?

Can you limit common mistakes your customer makes?

Jill is a frequent business traveler who prefers to learn about alternative solutions and special offers through targeted emails sent by brands that she trusts. Which of the following aspects of a customer persona is most closely reflected by this example?

Channels, influencers, and brands

A customer persona helps you address the question

"who is your customer?"

Efforts to expand sales of an innovation beyond small early adopter markets into large mainstream consumer markets is commonly described as

"crossing the chasm."

According to research describing innovation adoption curves, customers who are least likely to adopt an innovation in the short term would be found where on the above distribution curve?

4 and 5

According to entrepreneurship expert Steve Blank, good products and services have one customer segment.

False

Which of the following is not a typical attribute to consider when developing a customer persona?

Favorite teams

Entrepreneurship methods that attempt to characterize the size of customer markets and market segments most directly address which of the following keys for understanding customers?

How many could you help?

Which of the following is NOT one of the questions about customer experiences you need to address?

How much can they afford to spend?

Which of the following is not one of the primary sources of "gaps" between current and desired experiences that motivates customers to seek new alternative solutions?

Momentum

Jill is a frequent business traveler who tends to be introverted and analytical, thus making it likely that she could be influenced by ads showing comparisons among various offers. Which of the following aspects of a customer persona is most closely reflected by this example?

Psychographics

Brandon decided to invest in an expensive designer suit so that others would view him as a highly successful young professional. Which of the following types of customer jobs is motivating Brandon's purchase in this example?

Social Job

The consulting company Strategizer has developed a popular methodology for identifying jobs-to-be-done and associated customer frustrations that helps entrepreneurs design solutions that directly address those frustrations. Their widely used method is called

a Value Proposition Canvas.

The primary elements of the value proposition canvas include

a customer profile and value map.

This type of job, if completed, would improve how a customer is perceived by others.

a social job

Nicole interviewed dozens of potential customers and learned that people really hate to wait in line at fast-casual restaurants. Thus, she determined that the primary value proposition for her restaurant "speed pass" system was to help people

avoid undesired outcomes (pains).

Once a startup achieves success in their initial market, they often engage adjacent markets and introduce new offerings as a means of growing their ventures. This process is often described using the metaphor of

bowling pins.

Practitioners sometimes refer to a "customer persona" using the synonymous narrative term

customer archetype.

The customer segment of the Value Proposition Canvas focuses on gains, pains, and

customer jobs.

It's important to understand who has spending authority and how much they have available to spend. This refers to the customer personal characterization of

discretionary budget.

According to research describing innovation adoption curves, the greatest percentage of customers who might adopt a solution include

early majority and late majority adopters.

Customers who are so concerned with the problem that they often tinker with developing their own solutions are commonly described as

early-vangelists.

According to entrepreneurship expert Steve Blank, customers do not

exist to buy from you.

The primary emotion that entrepreneurs must understand about their customers is

frustration

Entrepreneurs have limited resources and are well advised to focus their initial efforts on one market segment that holds the highest odds of success. This initial, enthusiastic market segment is often described using the metaphor

headpin market.

The question addressed most directly by sizing a market is

how pervasive is the frustration you want to address?

According to research describing innovation adoption curves, customers who are MOST likely to adopt a novel solution in the short term include

innovators.

An "emotional job" is an outcome someone would like to attain because it

provides a sense of self-satisfaction.

The creation of drive-throughs found in many fast-food restaurants would be an example of a pain reliever that helps

remove "friction" and make your customers' life easier.

According to entrepreneurship expert Steve Blank, it's possible that you might have different types of customers who might benefit from your offering. These different types of customers are described as customer

segments.

The total number of customers experiencing the specific problem you are trying to target in the geographic area that interests you is commonly described as the

serviceable available market.

The highlighted face in the middle of the above circle is meant to represent

the customer persona that you are trying to help.

A customer persona or archetype is a generalization or caricature intended to represent

the one you would like to help.

According to entrepreneurship expert Steve Blank, a well-researched customer persona description includes descriptions of influencers and channels that affect customers purchasing decisions. He asserts that this makes it incredibly easy too sell to them since

they've already told you how to get them to buy from you.

Capacitech, a UCF startup company, recently earned a $225,000 grant from the National Science Foundation that has helped them to engage potential corporate partners interested in developing their technology solutions. This kind of momentum demonstrating that potential supporters value a novel offering is commonly described as

traction

Invisasox is a student-led startup that offers innovative no-show socks (seriously, they're awesome!). They started by making 1500 socks to see if people would buy them. Customers did, so Invisasox used their revenue to make and sell 5000 socks, and then used those profits to make and sell 15,000 socks. This kind of momentum demonstrating that customers value your offering is commonly described as

traction

Hypotheses regarding your customer persona have the most direct impact on "startup science" by influencing

who you sample as subjects in your tests.

According to entrepreneurship expert Steve Blank, gaining a better understanding of customer segments helps you understand who your customers are and

why they would buy from you.