Exam 12: Rent the Runway: Entrepreneurs Expanding an Industry by Blending Tech With Fashion, John Gallaugher - Information Systems: a Managers Guide to Harnessing Technology, Version 6.0

____________________ refers to the amount of money a firm spends to convince a customer to buy (or in the case of free products, try or use) a product or service.

The term ______________________ conveys the degree to which a product satisfies market demand. Successful efforts should be desired by customers, and scale into large, profitable businesses.

Several have wondered how big sharing firms can get. Airbnb has more beds than any hotel chain and Uber dwarfs any taxi or car service firm, but ZipCar never grew as large as major car rental firms. To get a sense of the size of the firm, Rent the Runway has had over 5.5 million women as customers of their service.

Most e-commerce shoppers buy brands they are already familiar; however, ____percent of Rent the Runway customers rent brands they've never bought before.

How is Rent the Runway working to encourage entrepreneurship among women?

Rent the Runway sees a much higher (75 percent) conversion rate from friend referrals than from other marketing methods

________________________ refers to the value of future cash flows discounted into today's dollars (it is discounted because a dollar today should be worth more in the future assuming inflation or the potential to earn money on the dollar if it is invested).

Providers of ________________, may need to spend more effort convincing customers to try their offerings.

What is Rent the Runway Unlimited?

Circle the equation that is true most firms with a profitable customer base:

Like Uber, the airline industry, hotels, and other service providers with limited inventory and varying demand, Rent the Runway also leverages analytics for ___________________.

The term _______________________ is often used in entrepreneurship and new product development and refers to a bare-bones offering that allows entrepreneurs and product developers to collect customer feedback and to validate concepts and assumptions that underlie a business idea.

One of the challenges of Rent the Runway Unlimited is that it will require women to further rethink their relationship with fashion and ownership.

Describe the advantages that Rent the Runway's physical stores offer the firm:

Which of the following did not help create demand for Rent the Runway?

______________________ is a systems development method in which requirements and solutions rapidly and iteratively evolve through collaboration between self-organizing, cross-functional teams, rather than a top-down, centrally-managed, schedule-driven approach.

Describe the experiments Rent the Runway's founders conducted to verify their idea even before building out their website and operations model.

Customers who are on the fence about a choice can choose a second style as a backup for an additional fee.

The halo-effect from a positive experience renting a designer's more daring dresses may prompt a woman to purchase more frequently-worn staples like a little black cocktail dress, leather leggings, or accessories.

_________________ is a software development approach where an organization's developers release products, features, and updates in shorter cycles, when ready, rather than wait for centrally-managed delivery schedules.