ENT Module 7
The feasibility and affordability tests featured in the Jet Suit TED Talk were primarily trying to address the basic question of "will it work?" What type of test does this best illustrate? -Reliability -Function -Form -Manufacturability
Function
The feasibility and affordability tests featured in the Jet Suit TED Talk were primarily trying to address the basic question of "will it work?" What type of test does this best illustrate? -Function -Manufacturability -Form -Reliability
Function
Customer discovery experiments can be difficult and time-consuming to conduct. Consequently, the Testing with Humans book advises you to be very selective with respect to the hypotheses you test using experimental methods. What hypotheses attributes do they suggest you should emphasize when determining which would benefit most from using experimental research methods? -Low impact and low uncertainty -Low impact and high uncertainty -High impact and high uncertainty -High impact and low uncertainty
High impact and high uncertainty
Which library database does Dr. Ford use to show you how to find information regarding a specific company, including its products, strategies, plans, and current performance? -US Census -Ibis World -Market Line -Hoovers
Hoovers
In his customer discovery research for his T-shirt design company, Kyle wants to learn what proportion of millennials identify with characters from the TV show Bob's Burgers. Which of the following key research considerations is Kyle considering in this example? -Analysis -Sample -Hypotheses -Method
Hypotheses
Which library database does Dr. Ford use to show you how to find information regarding total available market (TAM) and served available market (SAM) size associated with an industry? -Hoovers -US Census -Market Line -Ibis World
Ibis World
According to the advice offered in the Talking to Humans book, which of the following approaches typically yields the most informative and valid results? -In-person interviews -Facebook surveys -Skype interviews -Focus groups
In-person interviews
Which type of failures are worthy of being celebrated? -Intentional failures -Unavoidable failures -Intelligent failures -Preventable failures
Intelligent failures
Michael is trying to determine if exercising daily will improve his quality of sleep. He does this by recording his quality of sleep for a week without daily exercise, and then again for a week with daily exercise. He makes sure that every other aspect of his life, such as diet, bedtime, and location of sleep, are as identical as possible for those two weeks. What is Michael attempting to establish in his experiment? -Fact -External validity -Internal validity -Experience
Internal validity
According to the Testing with Humans book, which of the following is the least believable method for collecting information during customer discovery? -Wizard of Oz -Pre-selling -Landing pages -Interviews
Interviews
What is the first step you need to undertake when judging your value proposition? -Design tests -Invest in understanding the problem -Prioritize your hypotheses -Capture evidence
Invest in understanding the problem
This module has described many methods that modern entrepreneurs use to take smart steps that generate data, promote learning, and reduce uncertainty. Information from observing, interviewing, experimenting, and testing can all be used to evaluate the plausibility of your creative value proposition. What is the judgment process called that determines whether you will take additional steps based on what you imagine, or forecast will happen if you proceed? -Imagination -Evaluation -Justification -Creation
Justification
During a customer discovery interview, Crystal asked an interviewee "Don't you think it's really important for us to take steps to reduce the amount of plastic floating in the ocean?" Which threat to her interview's validity is best illustrated by Crystals question? -Hearing what you want here -Asking the wrong people the wrong questions -Leading the witness -Treating speculation as confirmation
Leading the witness
What were the two types of risk Owlet knew they would be facing? -Market and cost -FDA and health -Market and technology -Technology and cost
Market and technology
In Lean Startup practice, what do you do after building your product or service? -Pivot your idea -Learn from your customers -Measure how customers respond -Sell your product or service
Measure how customers respond
In his customer discovery research, Trevor will randomly interview 100 fans at an Orlando Magic game. Which of the following key research considerations is Trevor considering in this example? -Controls -Methodology -Analysis -Hypotheses
Methodology
Which of the following refers to a prototype that demonstrates an offerings value by presenting the smallest set of features that work as a stand-alone offering while solving at least the core problem? -Minimum Viable Product (MVP) -Low-Fidelity Value Proposition -Least Common Denominator -Initial Public Offering
Minimum Viable Product (MVP)
What are "intelligent failures at the frontier"? -"Bad" failures resulting from deviance, inattention, or lack of ability performing routine tasks - "Good" failures from experimentation resulting in new knowledge and reduced uncertainty -Failures that help improve creativity and defensibility - "Acceptable" failures reflecting known risks inherent in uncertain and complex work
"Good" failures from experimentation resulting in new knowledge and reduced uncertainty
In his TED Talk, Michael Patrick Lynch describes the paradox our society is facing as we have access to more information by saying "It's as if we know more but understand less." "It's as if we know less but understand more." "It's as if we understand less than we know." "It's as if we understand more than we know."
"It's as if we know more but understand less."
Which of the following types of experiments involves randomly directing website viewers to one of two web pages to determine how the difference affects conversion rates? -Mockup tests -Landing page tests -Pre-selling -A/B (Split) Testing
A/B (Split) Testing
According to the book Talking to Humans, adequately preparing for customer discovery interviews is especially crucial for avoiding which of the following threats to validity? -Treating speculation as confirmation -Asking the wrong people the wrong questions -Hearing what you want here -Leading the witness
Asking the wrong people the wrong questions
Which of the following limits profits available in an industry and increases fitness requirements among rivals? -Revenue stream -Value network -Target customer -Competition
Competition
According to the Testing with Humans book, which of the following is the most believable method for collecting information during customer discovery? -Landing pages -Concierge -Prototypes -Button to nowhere
Concierge
Which of the following types of experiments involves allowing interested customers to pre-order new products or make reservations for new services? -Crowdfunding -Usability tests -Landing page tests -Task engagement and completion tests
Crowdfunding
Eric designed an experiment to test the hypothesis that retailers want to carry his product. He decided he would consider this hypothesis supported if 40% of the retailers he contacted were willing to sign a nonbinding letter of intent indicating their willingness to carry the product. With respect to the anatomy of an experiment described in Testing with Humans, which of the following issues does Eric address in this example? -Determining the appropriate method for running the experiment -Determining a quantifiable result that indicates success -Determining the number of participants needed -Determining the appropriate sample for his experiment
Determining a quantifiable result that indicates success
Mitra was designing an experiment to test the hypothesis that early career health care providers would sign up for his online training program. He knew the people participating in his test had to belong to his target market. With respect to the anatomy of an experiment described in Testing with Humans, which of the following issues does Mitra ra address in this example? -Determining the appropriate sample for his experiment -Determining the number of participants needed -Determining the appropriate method for running the experiment -Determining a quantifiable result that indicates success
Determining the appropriate sample for his experiment
Which of the following is one of the primary benefits of conducting experiments, or "Testing with Humans", during the customer discovery process? -Experiments are helpful when you are initially exploring an idea -Experiments are good for quantifying levels interests and frequency of behaviors -Experiments are especially effective at discovering surprising ideas -Experiments allow you to use effective research methods favored by ethnographers
Experiments are good for quantifying levels interests and frequency of behaviors
When you are trying to judge you value proposition, what should you do after you believe you understand the problem you are addressing? -Capture and evaluate evidence -Run tests -Extract hypotheses regarding the novelty and value of your proposal -Design tests
Extract hypotheses regarding the novelty and value of your proposal
In the story presented in the Talking to Humans Book, what research method did Koshi and Roberta use that allowed them to discover that over half of customers shopping for pillows used their phones for Internet research while they were comparing alternatives? -Sale actions -Observation -Lab studies -Interviews
Observation
Which of the following is not a common research method used when Testing with Humans during customer discovery? -Sales actions -Observation -Participatory design and evaluation -Lab studies
Observation
According to the advice offered in the Talking to Humans book, what should you do periodically through your interviews to make sure that you are interpreting people's statements correctly? -Drill down and ask "why" questions -Parrot back insights to confirm your understandings -Bring a note taker -Ask warm-up questions, and keep it "human"
Parrot back insights to confirm your understandings
What did Owlet do after deciding to remove the alarm function in their tracker? -Re-validate the product -Re-calculate their costs -Sell their product -Re-apply for approval from the FDA
Re-validate the product
In her customer discovery research, Blair is interested in learning from Caucasian females from ages 18-24 she thinks will like her lifestyle blog. Which of the following key research considerations is Blair considering in this example? -Method -Analysis -Sample -Controls
Sample
Michael Porter, the famous Harvard business strategy guru, explained how competitive forces make different industries easier or harder to engage and earn profits. Which of the following industries did Porter describe as particularly favorable with respect to likely profitability? -Soft drinks -Music production -Airlines -Marijuana
Soft drinks
According to the advice offered in the Talking to Humans book, what you do ask people to tell you during a customer discovery interview? -Lists of features they wish they had -Stories about their experiences and feelings -Whether they like your new product or service idea -Descriptions of their personal attributes
Stories about their experiences and feelings
What are the two action principles entrepreneurs need to embrace that promote learning and mitigate risk associated with imagining? -Fail quick and often/ask for help from experienced mentors -Take big leaps and learn on the way/imagine how you can help others -Learn from other's mistakes /have a lot of grit -Take small smart steps/reflect on experiences to justify next steps
Take small smart steps/reflect on experiences to justify next steps
In the story presented in the talking book, Koshi and Roberta hypothesized that new college graduates would be there primary target market. What that they discover from their research? -The evidence was inconclusive. They decided to set up sales actions to further test their hypothesis. -They were wrong. Older consumers in larger homes or a better target market. -They were right. 45% of new college grads by new pillows soon after graduation. -They were wrong. Slightly older customers who are moving of getting married buy more pillows.
They were wrong. Slightly older customers who are moving of getting married buy more pillows.
In the Owlet video, when Tanner was rejected by the hospital administrators, what valuable lesson did he learn? -Your user is not always your customer -Your customer controls your user -Hospitals are evil -Your user does not serve your customer
Your user is not always your customer
Module seven's learning objective can be best described as helping you develop your -ability to talk to humans. -ability to conduct research that can be used by Angel investors. -ability to evaluate a proposals value and justify further investment. -ability to conduct market research.
ability to evaluate a proposals value and justify further investment.
In terms of the Creative Action Cycle model we have used throughout the semester, conducting an experiment would be best described as an example of -creating. -justifying. -acting. -imagining.
acting
Ideally, you should express your market share goals (target market) as the -amount of revenue you earn from the customers you serve. -number of customers you serve. -total number of customers in the segment you serve. -total available revenue in the market you serve.
amount of revenue you earn from the customers you serve.
The most credible way of estimating the target market you hope to address with your value proposition is to estimate your capacity to serve/produce and use that to estimate the portion of the available market you might be able to acquire. This approach to market sizing is commonly referred to as -credible market estimates. -top-down market estimates. -TAM-SAM-SOM estimates. -bottom-up market estimates.
bottom-up market estimates.
Which of the following is not one of the questions you should be asking when you evaluate (judge) whether you have good problem/solution fit? -do you have evidence that your solution addresses the problem or need? -Can you produce your solution at a profit? -Do you have evidence that you are addressing a serious problem or need? -are there enough customers to constitute a "market"?
can you produce your solution at a profit?
Rivals, new entrants, substitutes, and power held by others in the value network increases -value propositions. -competition. -opportunity. -revenue.
competition.
The TED Talk that featured the evolution of a jet suit is a great example of -conducting feasibility experiments. -stupidity. -divergent thinking. -conducting customer discovery.
conducting feasibility experiments.
Our predisposition for hearing what we want to hear when we are conducting customer discovery refers to a bias called -confirmation bias. -sunk cost fallacy. -fake news neuroticism. -anchoring.
confirmation bias.
A research design consideration that aims to ensure effective sessions by eliminating alternative explanations for your results describes a study's -hypotheses. -controls. - sample. -analysis.
controls
The two ways to differentiate a company within an industry are low cost and high -quality. -forecast. -value. -differentiation.
differentiation.
Library databases such as Ibis world and Hoover's that provide industry reports and market segment breakdowns are especially useful when you are researching -emerging markets. -existing markets. -overlapping markets. -new markets.
existing markets.
Through his personal research, Michael determined that exercising daily improved his quality of sleep. However, Devin pointed out to Michael that he was the only subject in his research, so exercising daily may not improve quality of sleep for everyone else. Devin is suggesting Michael's experiment may have poor -experiences. -facts. -external validity. -internal validity.
external validity.
Feasibility and affordability experiments that address the question "is the design/interface effective?" are focused most directly on testing -form. -reliability. - function. - manufacturability.
form.
If customers can easily compare prices and switch between different products/service offerings, it is likely that the industry will be -relatively stable in the long run. -highly competitive and difficult to earn profits. -highly innovative and profitable. -receptive to new entrants and relatively easy to earn profits.
highly competitive and difficult to earn profits.
Competitor analysis is especially important when you are trying to determine -if you have achieved problem/solution fit. -if your solution is novel. -if your offering can be delivered at a profit. -if your solution works.
if your solution is novel.
Evaluating your capabilities, as well as the capabilities of those who might help you, is a key evaluation that should inform your judgment about -technology risk. -financial risk. -market risk. -implementation risk.
implementation risk
Deciding whether taking another step on an entrepreneurial journey is worth the time, effort, and other resources it requires describes the Creative Action Cycle process of -justifying. -learning. -evaluating. -acting.
justifying
Being ethical and sustainable are two considerations that should be made when assessing your value proposition's -legitimacy. -novelty. -cost. -value.
legitimacy.
One of the main "takeaways" you should get from this class is that it is critically important to test assumptions about your novel ideas with convergent thinking processes BEFORE spending significant resources developing a new venture proposal. This is how smart entrepreneurs reduce risk. For example, testing assumptions about what customers might pay for your solution (i.e., pricing) is critical for evaluating: -financial risk. -technology risk. -implementation risk. -market risk.
market risk.
Entrepreneurs who are introducing highly innovative offerings often find that they can't rely on existing industry report, and instead had to develop their own estimates based on researching their customer archetype within the geographical area they plan to serve. This kind of approach to value proposition research is especially important when you are addressing a(n) -overlapping markets. -existing markets. -new markets. -emerging markets.
new markets.
In his TED Talk, Michael Patrick Lynch talks about those who express bad faith towards the truth. He illustrates this by explaining how in most cases "fake news" really means -news stories that don't follow rigorous journalistic practices. -news stories that are faked. -news stories I don't like. -news stories I don't understand.
news stories I don't like.
Being unique and defensible are two considerations that should be made when assessing your value proposition's -novelty. -value. -cost. -legitimacy.
novelty.
A firm's competitive advantage results from their strategic positioning as well as their -overhead expenses. -operational effectiveness. -cost of capital. -market growth.
operational effectiveness.
In Lean Startup Practice, after learning from your customers, you can either -measure or build. -start or stop. -persevere or pivot. -buy or sell.
persevere or pivot.
Our predisposition for persisting with investments even when we have substantial evidence that these are likely to fail refers to a bias called -confirmation bias. -sunk cost fallacy. -failure to launch. -anchoring.
sunk cost fallacy.
One method for clearly articulating your research methodology and organizing information from interviews is to employ -audio and video recordings. -test and learning cards. -warm-up questions. -a note taker.
test and learning cards.
According to the Testing with Humans book, it's important to pay attention to outliers when you analyze the results of an experiment because -every individual is unique and special and deserves your attention. -they can provide insights regarding measurement error in your research design. -your biases are likely to overestimate their importance. -they might help you discover new market opportunities.
they might help you discover new market opportunities.
The least credible way, but easiest, way to estimate the size of the target market you hope to address with your value proposition is to estimate the total market for the type of solution you offer and then assume you will acquire a small percentage of the total available market (TAM). This (lazy) approach to market sizing is commonly referred to as -credible market estimates. -TAM-SAM-SOM estimates. -bottom-up market estimates. -top-down market estimates.
top-down market estimates.
The best way to achieve competitive advantage is to develop a strategic position that is -the least expensive option in your target market. -well-established by competitors. -high with respect to nonprice buyer value delivered. -unique and close to the productivity frontier.
unique and close to the productivity frontier.
Being profitable and scalable are two considerations that should be made when assessing your value proposition's -value. -legitimacy. -cost. -novelty.
value.
In his TED Talk, Michael Patrick Lynch describes an alternative to "bubble-knowing" wherein one dares to know and understand, thereby risking the possibility of being wrong and discovering that -what you want and what's true are different things. -what you want and what others want are different things. -what you want and what you need are the same things. -what you want and what's true are the same things.
what you want and what's true are different things.
Feasibility and affordability tests are especially important considerations for determining whether you should proceed, pivot, or punt because they address whether -your solution works. -customers think your solution is more valuable in alternatives. -you are addressing a serious problem or need. -your solution is novel.
your solution works.
