ENT 3003 Chapters 4-7 Exam 2

______ are customers that veto or slow down purchasing.

Saboteurs

What did the Babson College students learn from the flag experiment in class?

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

convergent

This concept is about moving from abstract to concrete after having opened the mind to a variety of possibilities.

Design thinking is a skillset held by entrepreneurs.

True

In the textbook's donut café example, what was the total available market?

United States

_____ testing is the entrepreneur working behind the scenes to manually provide the service.

Wizard of Oz

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

adoption

viability

aking money and sustainability.

Designers who use math, engineering, and software are ______.

architects

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

When conducting an interview, you should ask ______.

broad, open-ended questions

A ______ describes the rationale of how a new venture creates, delivers, and captures value.

business model

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

buyer

A ______ observer stays hidden from view or observes from plain sight without begin noticed.

complete

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

convergent

High-tech and marketing expert Geoffrey Moore identified ______ between each phase of the adoption life cycle.

cracks

What is an important trait of entrepreneurs?

curiosity

What is one of the most important parts of an experiment?

customer engagement

Customer segments are part of ______.

customer groupings of a market

What is the visual representation that captures the customer experience across multiple touchpoints of the entrepreneur's business?

customer journey map

CVP stands for ______.

customer value proposition

The ______ is a statement that describes exactly what products or services your business offers and sells to customers.

customer value proposition

______ implies the desire of prospective customers for goods and services.

demand

The customer segment defined by who they are is ______.

demographic

The tool used by entrepreneurs to solve complex problems for people is ______.

design thinking

You will now be shown the question you answered and what the correct answers are or if you selected an incorrect option. "How might we" is an important phrase in the ______ process, according to the IDEO CEO Tim Brown.

design thinking

The Designing for Growth author's four questions and The Stanford Design School five phases are other approaches to ______.

design-thinking

What answers the question "What do people need?"

desirability

Entrepreneurs use ______ to try to encourage existing customers to switch to their product.

differentiation

The Quip toothbrush is an example of the ______ business model.

differentiation

What is the stage in the customer journey where the need is identified?

discovery

Developing ______ ability allows entrepreneurs to recognize both the physical and emotional needs of people.

empathic

What is important to building customer relationships?

engendering positive feelings about business

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

exclusionary

______ are the methods used to prove or disprove the validity of an idea or hypothesis.

experiments

When Smart Skin Care patented a slow-release medication, they found what beachhead market?

extreme sport competitors

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

false

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

false

An interview is a fast and expensive experiment.

false

Analyzing demographics is the most important piece in creating an end user.

false

Businesses should identify a single type of customer.

false

Carrying out background research comes after developing a hypothesis.

false

Design thinking applies to new products and services only.

false

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

false

Desirability is how sustainable the idea is in the long term.

false

Diet Coke and Coca-Cola Zero have the same target markets.

false

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

false

Entrepreneurs identify the target customer segments before they have an idea for a new product.

false

Entrepreneurs need risky and expensive experiments once they are in the final design stage.

false

Entrepreneurs should ignore data that does not support the hypothesis and contradict original assumptions.

false

FedEx solved delivery transportation before focusing on customer needs.

false

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

false

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

false

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

false

Most entrepreneurs ask too many questions.

false

Product application refers to the place where goods are sold.

false

Prototypes are always basic, low-lost versions of the product.

false

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

false

Similar to design thinking, CVP means thinking about your business from an organizational perspective.

false

Testing hypotheses is only about gathering data.

false

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

false

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

false

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

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.

false

Companies have realized that they must treat users like ______ to increase profits.

families

What is the interview done after the experiment called?

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

A storyboard involving a large piece of white paper using color, arrows, and labels is ______.

gallery sketch

business model canvas

gives a more thorough overview of the business model logic.

In the United States, people waste $1.5 billion annually by waiting for ______.

hospital visits

In order to abandon popular assumptions, entrepreneurs need a clear ______.

hypothesis

The creative process that involves generating and developing new ideas based on observations gained during the inspiration process to address latent needs is ______.

ideation

What design-thinking phase involves coming up with potential solutions?

ideation

In traditional marketing, the most viable customer segment is ______.

identified

What is the business model that offers a product without differentiation?

imitation

In what phase of the design-thinking process does experimentation occur?

implementation

The process of testing assumptions to shape the final project is the ______ phase.

implementation

When the customers are segmented and an end user profile created, the entrepreneur has a better understanding of ______.

important groups to target

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

influencer

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

insight

What is a fast and easy way to get insights into your idea?

interview

Creating a launch market helps convince ______ that customer base is real.

investors

pilot

is a small-scale study to assess the feasibility of a product.

The component that describes managing such stock and design is ______

key activities

What is the method of estimating the number of potential customers and possible profitability?

market sizing

A ______ market comprises a large group of customers with similar needs and problems.

mass

A ______ product is the version of a new product which allows a team to collect the maximum amount of validated learning about customer with least effort

minimum viable

What is the version of a new product which allows for maximum collection of validated learning with the least effort?

minimum viable product

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

model

The business intends to create, deliver, and capture value for customers is known as the business ______

model canvas

Human emotions or desires discovered during the design-thinking process are ______.

needs

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

observation

The first part of the business model is ______, which identifies the product or service, the value generated by it, and how you will reach the customers.

offering

A simple way to outline your vision and spot any mistakes before going further is ______

paper testing

Curiosity increases ______.

perseverance

What is the message of CVP?

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

What is the type of CVP that describes why people really like your products and focuses on the customers and what they really need and want?

resonating-focus

What is the prototype version that lets the entrepreneur step into the user's shoes?

role-playing

Current buyer's decisions occur without ______.

seller input

consumer

someone using a product or service

customers

someone who pays for a product or service

______ refers to the people who compete for customers in the marketplace.

supply

The business model presented in the textbook is a journey to gather evidence and prove the startup can be ______.

sustainable

Efficient changes to the business model can be made during the startup stage because ______.

the business is small in the beginning

The assumption that is being tested through research is ______.

the hypothesis

According to author Doug Hall, what is the one big benefit for the customer?

the overt benefit

What is the share of the market?

the portion of the market realistically reached

If the projected numbers exceed the market, the entrepreneur rechecks the ______.

total available market

A good experiment is a well-planned experiment.

true

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

true

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

true

Building personas is an important exercise in understanding customers.

true

Focusing your resources on a single, primary market is known as a beachhead market.

true

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

true

Psychographics is the method used to describe the psychological attributes of your target users.

true

Social media sites are examples of the innovation business model.

true

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

true

The business model canvas is a type of visual plan that depicts the business on one page by filling in nine blocks of the business model.

true

The design challenge is the problem or opportunity that stimulates the quest for a solution.

true

The founder of WordSmithRapport used experimentation to validate her hypothesis.

true

Walt Disney animators use storyboards to develop ideas.

true

Financial ______ defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations.

viability

For design thinkers, an idea is deemed successful if it strikes a balance among three main criteria. To determine ______, they ask how sustainable an idea is in the long term.

viability

What answers the questions, "Can we make money doing it? Is it sustainable?"

viability

How did the entrepreneur come up with a robotic lighting company?

while shadowing a surgeon

SELECT ALL THAT APPLY. For a CVP to be effective, it needs which of the following qualities?

-Be sustainable. -Offer better value than the competition. -Be measurable in monetary terms.

SELECT ALL THAT APPLY. What are some of the basic steps to creating a customer journey map?

-Create a whiteboard, writing down touch points of the journey. -Resolve problems and improve the customer experience. -Identify a few aspects of the journey to explore such as emotional needs, pain points, or obstacles.

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 get feedback for the idea?

SELECT ALL THAT APPLY. Which of the following are questions found in the experimentation template?

-How long is the experiment? -How many participants are needed? -What is the hypothesis?

SELECT ALL THAT APPLY. When creating a storyboard, you should consider which of the following questions?

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

SELECT ALL THAT APPLY. Which of the following are requirements of experiments?

-a clear purpose -generate reliable results -must be achievable

SELECT ALL THAT APPLY. Which components of the BMC are part of infrastructure?

-activities -resources

SELECT ALL THAT APPLY. What methods do large companies use to gather data about their customers?

-advertising -direct mail -surveys

SELECT ALL THAT APPLY. A feedback interview involves ______.

-asking for an opinion of a product or service -use of some type of prototype

SELECT ALL THAT APPLY. Prototypes come in the form of ______.

-basic models -sketches

SELECT ALL THAT APPLY. Building buyer personas will generate which key buying insights?

-features buyers need and those features not relevant -types of buyers and their influence -interested buyers and disinterested buyers

SELECT ALL THAT APPLY. Which of the following are parts of the business model?

-infrastructure -customers -offering

SELECT ALL THAT APPLY. The all-benefits approach to CVP involves ______.

-little regard for the competition -identifying and promoting all the benefits of the product

SELECT ALL THAT APPLY. In order to cross the chasm after the beachhead market is identified, the entrepreneur should ______.

-position the product -distribute the product through the correct channels

SELECT ALL THAT APPLY. Marketing sizing is a method of determining ______.

-potential customers -possible revenue

SELECT ALL THAT APPLY. Professor Barclay Burns created a method called the "Five Types of Value" to analyze which of the following?

-quantitative data -qualitative data

SELECT ALL THAT APPLY. Customers can be divided into separate segments if ______.

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

SELECT ALL THAT APPLY. Which of the following are types of customers?

-users -recommenders -influencers

SELECT ALL THAT APPLY. What are sources for data from customers?

-website analytics -social media -direct contact

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

1. Inspiration 2. Ideation 3. Implementation

Put the steps of the scientific process of experimentation in order from first to last.

1. ask lots of questions 2. carry out background research 3. develop hypothesis 4. test hypothesis with experiments 5. analyze the data 6. assess results

What is the difference between a customer and a consumer?

A customer buys the product while the consumer uses it.

What is most challenging in identifying market opportunity?

A large enough market exists.

What is the first step in scientific experimentation?

Ask lots of questions.

What is a way in which entrepreneurs solve the customer's problem of lack of money?

Deliver previously unaffordable products or services for less.

At what point can an entrepreneur safely assume they have learned enough about their area of expertise?

Entrepreneurs never reach this point; they must be insatiable learners.

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

False

What describes something that can be possibly achieved in the near future?

Feasibility

Why is the BMC important?

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.

What is an early and often crude version of the product called?

Prototype

What was Tata's CVP for its product to replace scooters in India?

Provide an affordable, safer mode of transportation.

SELECT ALL THAT APPLY. What tests involve websites that help assess interest?

-button to nowhere -landing page

SELECT ALL THAT APPLY. Which of the following are types of experiments?

-button to nowhere -landing page -advertising

SELECT ALL THAT APPLY. Financial viability includes ______.

-cost structure -revenue streams

Shaymaa Gaaffar's fashion brand focuses on ______.

being true to personal values

A business model is all about revenue and costs.

false

The best feedback interview questions are yes/no.

false

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

false

What answers the question "Can we do it?"

feasibility

supply

goods and services

prototype

is a version of a product

Which category of customers tends not to buy the new innovation?

laggards

demand

people who wish to buy a product or service

______ are customers who actually use the product.

users

Creating a CVP involves uncovering ______.

customer needs

SELECT ALL THAT APPLY. When considering customers, entrepreneurs must ask themselves ______.

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

SELECT ALL THAT APPLY. What are the three main types of approaches to creating value propositions?

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

What are the types of design?

-architectural -fashion -industrial

SELECT ALL THAT APPLY. The CVP for selling luxury yachts might combine which of the following?

-people living close to water -professionals between ages 30 and 65 with high income -people with an interest in water sports

SELECT ALL THAT APPLY. In addition to designing a voting machine for the Los Angeles community, IDEO needed to consider ______.

-privacy -regulations -security

SELECT ALL THAT APPLY. Insight differs from observation in that it ______

-provides an interesting, nonobvious piece of information -articulates users' needs

SELECT ALL THAT APPLY. What are the channels for the delivery of the value proposition?

-sales -communication -distribution

SELECT ALL THAT APPLY. Osborne's ground rules for brainstorming include ______.

-suspend all judgment -be open to wild suggestions -generate as many ideas as possible

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

False

What insight did Knock Knock City founders gather while hauling around baggage as they were traveling?

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

Design thinking is ______.

a special skillset

Once you have a short list of broad questions, it is important to have a(n) ______.

approach

When conducting an interview, in addition to the questions, you should record ______.

basic facts about the person

What is the starting point of design thinking?

desirability

How can entrepreneurs make products and services attractive to more than one customer segment?

different CVPs for each customer segment

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

disruption

What is the concept similar to the practice of play?

divergent thinking

A ______ market serves two or more customer segments with different needs and problems which have no relationship to each other.

diversified

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

elderly

The ______ map is a tool to help you collate and integrate the interview data in order to discover insights.

empathy

Which of the following is the correct order of Stanford Design School's five phases of design-thinking from first to last?

empathy, define, ideate, prototype, test

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

false

Infrastructure includes financial forecasts.

false

Design thinking helps create a system to explore new ideas in a ______ way.

human-centric

User + Need + Why describes a(n) ______ statement.

insight

Blackberry failed to adapt to new competitors and slowly declined

true

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

true

In order to see what a voter needed in a voting machine, IDEO spent hundreds of hours observing, listening to, and interviewing people.

true

Interviewing is an important part of the inspiration phase.

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

Insights are ideas.

false