Ch 6

A buyer profile yields more information than a buyer persona. T/F

False

Match the order of the following calculations with the correct order of their likely matching names in the answer choices below: the population of the U.S. city in which the product is released; the population of the United States; the immediate neighborhood surrounding the available location of the newly released product.

SAM, TAM, SOM

What is the problem with relying on demographics when creating an end user profile?

They don't tell you much about attitudes or likes and dislikes.

Behavior is one of the four core ways in which customer segments can be defined. T/F

True

Which of the following best describes the process of market sizing?

estimating the number of potential customers and possible revenue or profitability of a product or service

How does the targeting process in entrepreneurship differ from the targeting process in traditional marketing?

Entrepreneurs begin the process with the idea for a new product.

A poorly executed bowling strategy is likely to cause your product to end up in the tornado. T/F

False

A product application refers to the proposal through which a new product will be created. T/F

False

Today, buying decisions are more commonly made through the input of the seller than through social media networks, though social media influence is growing rapidly. T/F

False

How does a customer journey map differ from a buyer persona?

It focuses on buyer experience rather than characteristics.

Which of the following is true of your product if it has arrived on "main street?"

It has a strong market position

Which of the following is true of the customer journey map?

It is a visual representation

Of the following, which is likely to be smallest in size or number?

SOM

What should you avoid doing with people who fit your product's exclusionary persona?

Spend resources trying to convert them into customers.

Which of the following would be calculated first in a top-down analysis?

TAM

You are doing market sizing research for your new restaurant. One potential customer, Greg, lives two blocks from your new restaurant, has good disposable income, and eats out often. Which of the following does Greg definitively appear in?

TAM, SAM, and SOM

When considering the types of customers, which of the following would best represent a saboteur?

Tali, who leaves a negative review online for a product.

When asking further questions to add detail to your customer journey map, which of the following might you discover by learning more about the "tasks" factor?

The customer wants to understand more about the product before purchasing.

Which of the following is a core component of a beachhead market?

The customers are already buying similar products.

Why is providing TAM, SAM, and SOM for a product or service unlikely to fully satisfy potential investors?

They don't provide information about where the market is going in the future.

Why did Smart Skin Care choose to first seek out and market primarily to 30-somethings who engaged in extreme sports?

They needed this group as a beachhead market because the larger sunscreen market was too competitive and diverse.

A bottom-up analysis aims will generate a more accurate predicted total sales figure than will a top-down analysis. T/F

True

Buyer personas provide the entrepreneur with more behavioral information about potential customers than psychographics. T/F

True

Creating exclusionary personas helps the entrepreneur better understand both who their customers are and who they are not. T/F

True

If you have successfully "crossed the chasm," you have captured the early majority customer group. T/F

True

In recent years, the best way to build buyer personas is by conducting real interviews with potential customers. T/F

True

It is wise for an entrepreneur to try to win over the late majority customer group. T/F

True

Journey mapping is key to developing empathy for your customers. T/F

True

Sanity checks are necessary when calculating your market size just to be certain you aren't overlooking something obvious. T/F

True

The existence of some saboteurs as a type of customer for a particular product could be the result of a mistake or practice on the part of the entrepreneur. T/F

True

When crossing the chasm, it is important to work out kinks in the product before distributing wider because the early majority will be less forgiving of glitches than your early adopters. T/F

True

How does the combination of demographics and psychographics help the entrepreneur to create a buyer persona?

It largely doesn't; at best, it helps the entrepreneur create a buyer profile.

In which of the following ways does a bottom-up analysis differ from a top-down analysis?

It produces more accurate results.

Proxy products can sometimes offer psychological information about a customer. T/F

True

The act of calculating market size is a vital step for any startup. T/F

True

What would the demonstration of a launch market communicate to potential investors?

You have a customer base who will buy your product or service as soon as it goes to market.

Of the following, which would be safest for an entrepreneur to ignore when launching a new product or service?

laggards

Which of the following hypothetical bits of data would most likely be part of a top-down analysis?

number of potential customers living in a drivable radius

In the process of crossing the chasm, what is the second step after identification of the beachhead market?

positioning the product

For a running shoe maker developing an end user profile for a new product, a running club meeting would be a great option for which component of that process?

. watering hole

Which of the following is a recommended strategy when conducting a bottom-up analysis?

Be quite conservative in initial sales and profit estimates.

Which of the following is true of what makes up a market?

It includes both supply and demand, and it can be a physical or virtual location.

Markets are, by definition, virtual spaces. T/F

False

As offered by the text's "six basic steps" in creating a customer journey map, what is the last step in the process?

Create a visual representation of the customer going through the process.

Why, compared with a couple of decades ago, has it become even more important to understand your customer before you try to sell to that customer?

More customers make buying decisions without the input of the seller.

What are website analytics least likely to be able to provide?

your customer's overall impression of your product

Customers can be divided into different segments if you anticipate the same level of profitability from them. T/F

False

In the six basic steps for creating a customer journey map, you should seek to identify up to 10 specific aspects of the customer experience to explore. T/F

False

People in the early majority category are both practical and extremely risk-tolerant T/F

False

The SAM is the section of the TAM that your product is realistically likely to reach. T/F

False

The age of social media tools has greatly diminished the importance of sitting down and talking with your customers. T/F

False

The first touchpoint in the visual customer journey map is typically the first time the customer uses or directly encounters the product T/F

False

What is the best strategy for crossing the "chasm"?

Focus limited resources on winning over a single, primary market, and then move on to capture larger markets.

Jakara has determined market size for her new line of high-end juicers. In her bottom-up analysis, she has calculated that she could reasonably sell 1500 juicers in the first six months of launch. If she wanted to estimate what kind of market and sales numbers she might expand to a year or more down the road, she would do best to calculate ______.

SAM

According to Everett Rogers' technology adoption life cycle, how do customers in the early majority group differ from those in the early adopter group?

They are more swayed by mass market appeal.

Direct customer interviews are a challenging but effective way to verify the findings of a customer journey map T/F

True

Which of the following best describes the concept of a market?

a place where a supply can be sold to those who wish to purchase it

Which of the following is one of the four main elements that define a market?

a set of actual or potential customers who reference each other when making buying decisions

Which of the following is likely to be an insight derived from the development of a buyer persona for a specific product?

attitudes that turn potential buyers off of a product/service

What is the first step in calculating market size?

defining your market segment

What is most likely to reveal a market opportunity for a specific product application?

degree of customer demand

What is the overall goal of Everett Rogers' technology adoption life cycle?

describing how different groups of people accept new innovations over time

Which of the following is the most challenging aspect of identifying and developing a new product or service for the market?

determining that there is a large enough market for the product

Natalia has developed a new kind of roofing tile that is more expensive than most on the market but that has superior storm-survival properties. She wants to develop a buyer profile before going to market. What his her best first step toward accomplishing this?

interviewing homeowners in areas where storms are common

In the marketing and early growth of Facebook, what does Harvard represent

the beachhead market

SAM represents ______.

the entrepreneur-intended portion of the total available market for your product or service

Marian is developing a customer journey map for the new food truck she is introducing in the neighborhood. Of the following, which would be the first touchpoint in her customer journey map?

when the customer receives a flyer in the mail announcing the food truck

What is a core benefit of building an exclusionary persona?

avoiding wasted effort marketing to people who will never buy your product

According to marketing expert Geoffrey Moore, where in the technology adoption life cycle is the "chasm"?

between early adopters and early majority

Before creating an end-user profile, you must ______.

carry out the customer segmentation process

What is the last step in the process of calculating market size?

competition research

Which of the following best helps an entrepreneur develop empathy for the customer?

customer journey map

What are the five typical key stages of customer interaction with a company?

discovery, research, purchase, delivery, and after the sale

In the technology adoption life cycle, which two groups represent the largest parts of the customer base?

early and late majorities

A journey map is necessary in which stage of your business?

early stages

When defining customer segments, you should ask about demographics, which includes ______.

education level

As described in the text, what would be the TAM for a new restaurant in a major U.S. city?

every possible customer who visits restaurants in the United States

Lucas is directing his business to develop a new product to bring to market after believing he has identified a market opportunity. Which of the following behaviors is likely to mark him as a new entrepreneur rather than an experienced one?

focusing on the fact that his new product has never been seen before in any market

If your product enters the "tornado," it triggers a particular need to ______.

meet customer demand efficiently

What is a product application?

the goods or services created to meet a customer or market demand

What is one common aspect of the creation of a launch market, the bowling pin strategy, and the beachhead strategy?

the need to show you have a group of ready customers who want your product or service

Which of the following represents the "chain of customers"?

users, purchasers, influencers

Keenan is planning to start a catering business and throws an initial party to test out his food and services. He has developed a buyer persona and accumulated an enormous amount of data on his customers, and wonders if it is really necessary to make a customer journey map. What might his customer journey map reveal that the rest of his research could not?

would the guests attend a second party thrown by his company