ENTR Ch 7 Midterm
35. Which of the following is the main problem regarding intuition in the role of decision making? a. People tend to lack sufficient experience. b. It does not provide evidence to support the idea. c. Few people have good intuition. d. Intuition is not real and cannot be trusted.
B
39. What do the authors suggest about using data that was not specifically gathered to test the hypothesis? a. It can be discarded as it will not address the issue at hand. b. It should not be ignored. Keep track of everything. c. It should be kept if it is positive information. d. Discard it unless there is a minimum of six pieces of information saying the same thing.
B
45. A prototype is described as which of the following? a. a type of customer b. an initial version of a product or service designed for use in experimentation c. a type of stakeholder d. the final finished product
B
46. What is necessary for a prototype to be effective? a. It must be a working model of the product or service. b. It must communicate what our ideas look like, behave like, and how they work. c. It must be the same as the model that will be launched at the start of the business. d. It must include engineering models or, for a service, an operational plan.
B
48. A storyboard is classified as what category of business development tools? a. drawings b. prototyping c. beta tests d. pilots
B
49. Who is credited with developing the idea of storyboarding? a. Warner Brothers b. Walt Disney c. Bell Laboratories d. U.S. Steel
B
5. Which of the following is an important benefit of experimentation? a. It makes you get out from behind the desk. b. Assumptions are validated or proven false. c. It generates new ideas. d. It generates new business plans.
B
51. In storyboarding, who or what is at the center of the story? a. the company b. the customer c. the manufacturer d. the viewer
B
56. How does one formulate a hypothesis? a. One simply states what one thinks would happen as a result of the experiment. b. by asking questions, conducting background research, and creating theories of what might work c. by considering the potential outcomes of the experiment d. by studying the business and determining why things work the way they do
B
60. Sabrina just received a toy for her seventh birthday. She is describing all the things she likes and dislikes about the new toy. What type of customer is Sabrina? a. engaged user b. end user c. early adopter d. decision maker
B
63. Carmen has recently published her first book and is delighted when she sees an A-list actor praising it on a morning talk show. What kind of customer is the actor? a. a recommender b. an influencer c. an end user d. a decision maker
B
66. Kristin is a buyer for a local big box store. She is interested in having your line of one-of-a-kind jewelry displayed during a weekend promotion. She suggests that she talk with Larry French who is in charge of all the company's big box stores on the West Coast. What type of customer would Larry French be? a. an influencer b. an economic buyer c. a saboteur d. an end user
B
69. If you were to storyboard the idea for Rent the Runway, which offers rentals of designer dresses, in what part of the framework would the fact the online business would allow wowen to have access to designer dresses for one-tenth of the original cost? a. The problem b. The solution c. The idea d. The benefit
B
9. If an experiment outcome indicates that the original hypothesis was incorrect, what should the entrepreneur do? a. conduct another experiment b. adapt the original assumption c. move forward until there is another assumption to test d. terminate the product or business concept
B
62. Sabrina just received a toy from her mother for her seventh birthday. The toy was recommended by her elementary school teacher for its educational value. The teacher has been conducting lectures on educational toys for children. Sabrina's teacher is what kind of customer? a. decision maker b. recommender c. influencer d. economic buyer
C
67. Sarah is a musician who is frequently photographed for celebrity magazines. Readers often inquire about where to buy the fashions she is seen wearing in the photographs. What kind of customer would Sarah be? a. a saboteur b. a decision maker c. an influencer d. a recommender
C
13. Before Carlos opened his new bakery, he baked a variety of sample cupcakes and cookies to sell at local farmers markets and other local events. Which stage of the scientific process of experimentation does this represent? a. asking lots of questions b. carrying out background research c. developing hypotheses d. testing the hypotheses by running experiments
D
30. A customer who delays or vetoes the purchasing decision is referred to as which of the following? a. influencer b. decliner c. negator d. saboteur
D
36. Why do some organizations discourage experimentation? a. Their product or service is already optimized. b. They lack the skills required for experimentation. c. They no longer have the time to engage in experimentation. d. They fear failure or incurring short-term loss.
D
38. In designing experimentation opportunities, on which of the following should the entrepreneur focus? a. partners b. customers c. distributors d. all of these
D
41. If you were to storyboard the idea for Rent the Runway, which offers rentals of designer dresses, in what part of the framework would the fact that the rental model gives many more women the opportunity to wear designer dresses, which they could have never afforded before, fall?? a. The problem b. The solution c. The idea d. The benefit
D
50. What is the advantage of storyboarding that makes it so effective? a. It is shorter. b. it provokes discussion. c. The visual element gets the idea across quickly. d. all of these
D
28. Customers who have the ability to approve large scale purchases are called which of the following? a. recommenders b. economic buyers c. decision makers d. end users
B
12. What was the first step of experimentation that the founder of Amazon began using the process to assess online business opportunities? a. He asked questions about shopping behavior and mail order shopping. b. He browsed the Internet for online shopping sites. c. He conducted a survey about interest in online shopping. d. He tested product online, using someone else's website.
A
15. In experimentation, an entrepreneur's goal should be to do which of the following? a. Use continual iteration to test and shape ideas. b. Create perfect experiments for perfect outcomes. c. Use scientific rigor in the testing of his or her products. d. Use the scientific method sparingly so as to save resources.
A
17. Anthony is thinking of starting a small hot-dog cart that he will take to the beach area in San Diego, California. Before starting, he investigates city ordinances and talks to vendors in the beach area. He also talks to people at the local parks who sell hot dogs to find out what makes their business successful. Anthony is conducting what stage of the scientific process? a. background research b. experimentation c. data analysis d. testing the hypothesis
A
18. Anthony is thinking of starting a small hot dog cart that he will take to the beach area in San Diego, California. Before starting, he asks an ice cream vendor if he can offer hot dogs using his stand for a small rental fee. He will only need to use space for one day. Anthony is conducting what stage of the scientific process ? a. testing the hypothesis by running an experiment b. implementation of the plan c. developing a hypothesis d. carrying out background research
A
19. The owner of Amazon.com developed a site for a relatively low cost and offered books on the site. What stage of the scientific process was the owner executing by doing this? a. testing the hypothesis by running an experiment b. implementation of the plan c. developing a hypothesis d. carrying out background research
A
31. Angelina makes all purchases of printers and small computers for her company, a company that employs over 1000 people. However, all purchases must be approved by her district vice president. The district vice president would be listed under which of the following customer types? a. decision maker b. saboteur c. recommender d. approver
A
32. Which of the following participant right is an ethical requirement when performing an experiment? a. the right to informed consent b. the right to review the results of the experiment c. the right to be paid d. none of these
A
33. How have large businesses traditionally gauged customer tastes and preferences? a. by analyzing large amounts of historical data b. by conducting short market experiments c. by prototyping new concepts d. by asking employees
A
37. Khalil is buying a new phone for his son. What sort of customer is Khalil? a. A decision maker b. A saboteur c. An economic buyer d. An end user
A
4. What is a hypothesis? a. an assumption tested through experimentation b. a method used to prove or disprove the validity of an idea c. the process of conducting a research study d. a widespread belief
A
40. If you were to storyboard the idea for Rent the Runway, which offers rentals of designer dresses, in what part of the framework would the fact that most women cannot afford designer clothes fall? a. The problem b. The solution c. The idea d. The benefit
A
43. Taking apart products and putting them together again can be thought of as experimentation because doing so ______. a. generates ideas about how we can make our products or services work better b. gives us important information about how products are made c. increases creativity as one imagines how to put the parts together again d. increases general creative capacities that can transfer to other projects
A
44. A pilot test ______. a. is a small-scale study conducted to assess the feasibility of a product or service b. is a study restricted to the field of aviation c. is a the launch of a single, "solo" product d. is a prototype of a product
A
54. What are the elements in the framework for storyboarding? a. problem, solution, benefit b. solution, approval, action c. problem, product, organization d. need, mindset, product
A
55. What does one hope the storyboard will do when presented? a. generate questions b. gain approval c. encourage people to invest in the idea d. answer all questions
A
57. Sean has created an automatic cat feeder that will release small amounts of wet food at times set by the owner. He hopes that the unit will solve the problem of having to feed the cat multiple times a day or having to throw out food that has gone dry. He builds seven crude but serviceable units and asks friends with cats to test the product. He then obtains their feedback. What is this action called? a. a pilot b. a storyboard c. a product launch d. an operational test
A
59. Sean is thinking about creating an automatic cat feeder similar to one that he created for dogs. He believes that cats eat several times a day. He also believes that cats can be trained to come to the sound of a slight ding, indicating that a new tray of food has been opened. He has several friends set out small trays of food, sounding a ding to see if cats will associate the sound with curiosity about the food. This action is called ______. a. testing the hypothesis b. forming a hypothesis c. analyzing data d. assessing results
A
61. Sabrina just received a toy from her mother for her seventh birthday. She is describing all the things she likes and dislikes about the new toy. What type of customer is Sabrina's mother? a. decision maker b. end user c. intermediary d. economic buyer
A
64. Shelisa, an author, is on a TV show talking about her latest book. The host of the TV show holds up her book and says "This is a must read for all of my readers." What kind of customer is the TV show host? a. a recommender b. an saboteur c. an end user d. a decision maker
A
65. Kristin is a buyer for a local Costco. She is interested in having your line of one-of-a-kind jewelry displayed during a weekend promotion. However, her supervisor, Dave, says they have had too many unsuccessful jewelry displays lately and he does not want to present the idea to the store manager. What type of customer is Dave? a. a saboteur b. an economic buyer c. an end user d. a decision maker
A
68. Mehreen is one of the most popular girls in school. She arrives one morning carrying a fidget spinner and within weeks it seems like everyone in the school has one too. What kind of customer is Mehreen? a. An influencer b. A saboteur c. An economic buyer d. A decision maker
A
8. Rather than just gathering data, an experiment matches an outcome to which of the following? a. the hypothesis b. the data collection method c. the business problem d. the business opportunity
A
6. Experiments need to have a clear purpose, be achievable, and generate ______. a. positive outcomes b. product ideas c. reliable results d. action
C
11. What did the founder of Amazon come to discover that encouraged him to begin the scientific process? a. He read about the growth of online shopping on the Internet. b. He read about the huge growth of Internet usage. c. He read that bookstores were struggling to keep up with the costs of keeping book inventories. d. He read that bookstores were experiencing a decline in sales.
B
14. As an entrepreneur, one should think like a scientist and ______. a. act like one as well b. not put as much time or precision in experiments as a scientist would c. conduct experiments with more precision since the results will be acted upon d. use the same methods as a scientist
B
2. Why is experimentation required? a. to meet the requirements of investors and loan officers b. to strengthen ideas c. to help with inspiration d. to form hypotheses
B
21. How should an entrepreneur approach experimentation? a. invest high levels of time and resources to strictly adhere to the scientific method b. use quick, low cost methods of experimentation informed by scientific thinking c. focus on asking lots of questions and ignore the scientific method d. rely upon historical data rather than collecting experimental data
B
22. What hypothesis did Subway marketers make during the 2008 recession? a. Sales would improve if there were fewer stores. b. Selling foot-long subs at the reduced price of $5 would increase sales. c. More foot-long subs would sell if more expensive items were removed from the menu. d. Subway sales would improve after the recession were over.
B
23. How did Subway carry out their experiment to test the effect of $5 subs? a. They lowered the price of the sub throughout the summer of 2008. b. They tested the price of the sub at selected stores for a limited period of time. c. They tested the price of the sub at their flagship store. d. They conducted a survey to see if people would be willing to purchase the $5 sub.
B
26. The customers who actually buy, use, and give feedback on your product are called which of the following? a. saboteurs b. end users c. influencers d. economic buyers
B
1. What phase of design thinking is associated with experimentation? a. inspiration b. ideation c. implementation d. nonlinearization
C
10. The first step of the scientific process for an entrepreneur is which of the following? a. to conduct a thorough Internet search b. to develop the hypothesis c. to ask a lot of questions d. to analyze the data
C
16. What is the last step of the scientific process? a. analyze the data b. run the experiment c. assess the results of the data analysis d. redesign the product or service
C
20. What question is asked when an entrepreneur draws conclusions from the results of the data analysis? a. What can be put into charts and graphs? b. Can the results be communicated? c. Do the results support the hypothesis? d. How can the observations be summarized?
C
24. The best way to conduct an experiment is to ______. a. test the product, service, or idea in a controlled environment b. test the product, service, or idea with family and friends c. test the product, service, or idea with real customers d. conduct the experiment in another location where you will not be using "real" customers
C
25. In general, how many different types of customers are there? a. one b. three c. six d. 10
C
27. People with a large following who can affect purchasing decisions are called ______. a. recommenders b. end users c. influencers d. decision makers
C
29. What is the term for customers who have a high level of authority in their ability to approve purchases others make due to their high position in the hierarchy? a. recommenders b. economic buyers c. decision makers d. end users
C
3. Why is experimentation required? a. to meet the requirements of investors and loan officers b. to generate ideas that can be used in further business development c. to make sure that entrepreneurs have the right assumptions about meeting the demands of potential customers d. to form hypotheses about customer behavior towards their product or service
C
34. The main problem with analyzing historical data is that ______. a. There is never enough of it to provide reliable data. b. The data collected was for another purpose than that addressed by the current issue. c. Historical data can provide insight into past behaviors, but may not predict behavior in new environments. d. Historical data was gathered on a different market segment.
C
42. The ability to make connections, expand our knowledge, and become more innovative is often the result of which of the following? a. formal in-depth study b. gaining experience in a particular industry or profession c. trying out new experiences and learning new skills d. hours of work in a particular area
C
47. A high-level view of thoughts and ideas displayed in sequence through drawings, sketches, or illustrations is called a ______. a. process flow b. high view c. storyboard d. pictogram
C
53. A city is suggesting that homeowners participate in a mandatory recycle program. Which of the following would most likely be sketched as the benefit (remember that storyboards are from the customer's perspective)? a. overflowing landfills b. people not paying the bill c. neat recycling bins placed near the curb and a happy resident d. overflowing trash cans
C
58. Sean is thinking about creating an automatic cat feeder similar to one that he created for dogs. He talks to several cat owners to find out what they dislike about feeding their cats. He also takes a look at current cat feeders and asks the same cat owners what they like and don't like about the feeders. What is this action called? a. asking questions and a pilot study b. asking questions and hypothesis testing c. asking questions and background research d. asking questions and prototyping
C
52. A city is suggesting that homeowners participate in a mandatory recycle program. Which of the following would most likely be sketched as the problem (remember that storyboards are from the customer's perspective)? a. overflowing landfills b. the city facility for processing the recycled items c. recycling bins placed near the curb d. overflowing trash cans and a resident not knowing what to do with a bottle that says "recycle"
D
7. Before opening his new bakery, Carlos has received numerical ratings for each of his products from family and friends he has enlisted as tasters. Now Carlos is adding up the ratings for each variety. What step in the scientific process of experimentation is Carlos engaged in? a. asking lots of questions, b. carrying out background research, c. developing hypotheses, d. analyzing the data
D