MGNT 3234 Ch 7 Quizzes

Forest Gump is thinking of starting a small hot-dog cart that he will take to the beach area in Savannah, Georgia. 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. Forest is conducting what stage of the scientific process?

Background Research

As an entrepreneur, one should think like a scientist and ______.

conduct experiments with more precision since the results will be acted upon

What was the first step of the experimentation process that the founder of Amazon began using to assess online business opportunities?

He asked questions about shopping behavior and mail order shopping

The main problem with analyzing historical data is that ______.

Historical data can provide insight into past behaviors, but may not predict behavior in new environments.

An experiment begins with an assumption known as which of the following?

Hypothesis

What phase of design thinking is associated with experimentation?

Implementation

What is necessary for a prototype to be effective?

It must communicate what our ideas look like, behave like, and how they work.

Experiments need to have a clear purpose, be achievable, and generate ______.

Reliable results

What hypothesis did Subway marketers make during the 2008 recession?

Selling foot-long subs at the reduced price of $5 would increase sales

In general, how many different types of customers are there?

Six

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?

Testing the hypothesis by running an experiment

If an experiment outcome indicates that the original hypothesis was incorrect, what should the entrepreneur do?

Adapt the original assumption

What is a hypothesis?

An assumption tested through experimentation

What is the last step of the scientific process?

Assess the results of the data analysis

Which of the following is an important benefit of experimentation?

Assumptions are validated or proven false

Why do some organizations discourage experimentation?

Because they fear failure or incurring short-term loss

The first step of the scientific process for an entrepreneur is which of the following?

To ask a lot of questions

Why is experimentation required?

To strengthen ideas

A prototype is described as which of the following?

an initial version of a product or service designed for use in experimentation

How should an entrepreneur approach experimentation?

use quick, low cost methods of experimentation informed by scientific thinking