Question 1

When carrying out your venture concept reality check, where is the best place to engage your customers?

Accepted Answer

A)  In the place where customers use the product 
B)  On a nearby street 
C)  Both places 
D)  Neither place 
A)  In the place where customers use the product 
B)  On a nearby street 
C)  Both places 
D)  Neither place A

Question 2

When do you "stop" talking to customers when gathering data on your venture concept reality check?

Accepted Answer

A)  When no new significant information is being obtained 
B)  After 30 customers 
C)  When customers stop answering your questions 
D)  After 10 customers 
A)  When no new significant information is being obtained 
B)  After 30 customers 
C)  When customers stop answering your questions 
D)  After 10 customers A

Question 3

If an entrepreneur walks in with revenue projections without having talked to customers to validate purchase intent, price levels, place of purchase, and purchase frequency, how do you think he or she created those projections? How might the typical investor respond?

Accepted Answer

The entrepreneur likely created those revenue projections based on assumptions and guesswork rather than actual data and customer feedback. Without talking to customers to validate purchase intent, price levels, place of purchase, and purchase frequency, the projections are essentially speculative and not grounded in reality.

The typical investor would likely be skeptical of these revenue projections and may question the entrepreneur's understanding of their target market and the viability of their business model. Investors want to see evidence of market demand and a solid understanding of the customer base before they are willing to invest in a business. Without customer validation, the revenue projections may be seen as unreliable and overly optimistic. The investor may also question the entrepreneur's ability to make informed and data-driven decisions, which could impact their confidence in the entrepreneur's overall business acumen. In order to gain the trust and support of investors, it is crucial for entrepreneurs to conduct thorough market research and gather customer feedback to validate their revenue projections.

Question 4

In technology-intensive businesses it is a common flaw to focus too much on ______, which often causes them to short-change the ________.

Accepted Answer

A)  Products / Go-to-Market 
B)  Products / Target Customers 
C)  Target Customers / Price 
D)  Price / Go-to-Market 
A)  Products / Go-to-Market 
B)  Products / Target Customers 
C)  Target Customers / Price 
D)  Price / Go-to-Market

Question 5

Which data collection technique has the major advantage of enabling you to ask probing questions or see the reactions of the respondents to your venture concept reality check questions?

Accepted Answer

A)  Mail surveys 
B)  Telephone interviews 
C)  Personal interviews 
D)  Online surveys 
A)  Mail surveys 
B)  Telephone interviews 
C)  Personal interviews 
D)  Online surveys

Question 6

Which of the following statements is true with regard to deciding the number of customers to target for the venture reality check?

Accepted Answer

A)  You must select a large enough sample to be statistically significant 
B)  You should talk to at least 50 people 
C)  There is no magic number of potential customers with whom you should communicate 
D)  None of the above statements is true 
A)  You must select a large enough sample to be statistically significant 
B)  You should talk to at least 50 people 
C)  There is no magic number of potential customers with whom you should communicate 
D)  None of the above statements is true

Question 7

For your term project, what is your approach to conducting a reality check for your venture concept and your business model? Who are you going to talk to and what types of questions are you going to ask them? If you have already completed your reality check, what did your learn, and were there any surprises?

Accepted Answer

For our term project, our approach to co

Question 8

How can you gauge target customer purchase intent during the venture concept reality check?

Accepted Answer

A)  Simply by asking if the target customer likes the concept 
B)  Simply by asking if the target customer is dissatisfied with existing alternatives 
C)  Simply by asking if the target customer is likely and/or very likely to purchase your presented concept 
D)  You cannot gauge the purchase intent with any of the above methods 
A)  Simply by asking if the target customer likes the concept 
B)  Simply by asking if the target customer is dissatisfied with existing alternatives 
C)  Simply by asking if the target customer is likely and/or very likely to purchase your presented concept 
D)  You cannot gauge the purchase intent with any of the above methods

Question 9

What framework contains the target customer, the problem to be solved, the difference from competitive offerings, and the benefits that customers will expect?

Accepted Answer

A)  A industry focus description 
B)  A venture concept summary statement 
C)  A positioning diagram for your venture 
D)  A business model framework for your venture 
A)  A industry focus description 
B)  A venture concept summary statement 
C)  A positioning diagram for your venture 
D)  A business model framework for your venture

Question 10

If you wish to get potential customers' reactions to your prototype, what is the best way to do so?

Accepted Answer

A)  Mail survey 
B)  Telephone survey 
C)  Personal interviews 
D)  None of the above 
A)  Mail survey 
B)  Telephone survey 
C)  Personal interviews 
D)  None of the above

Question 11

Which of the following is very important to ascertain during your venture concept reality check process?

Accepted Answer

A)  Customer satisfaction with existing solutions/alternatives 
B)  Whether customers perceive your solution as distinctive 
C)  Whether customers would be willing to pay more for your solution 
D)  All the above 
A)  Customer satisfaction with existing solutions/alternatives 
B)  Whether customers perceive your solution as distinctive 
C)  Whether customers would be willing to pay more for your solution 
D)  All the above

Question 12

The reality check for your go-to-market strategy typically includes all of the following except for:

Accepted Answer

A)  Typical "spend" for each purchase 
B)  Preferred place of purchase 
C)  Preferred information channel for product information 
D)  How they pay for each purchase 
A)  Typical "spend" for each purchase 
B)  Preferred place of purchase 
C)  Preferred information channel for product information 
D)  How they pay for each purchase

Question 13

What is one of the big assumptions one makes when projecting revenue for the venture concept?

Accepted Answer

A)  Assuming those who make an initial purchase will continue to be repeat purchasers 
B)  Assuming customers currently satisfied with existing alternatives will switch to your offering 
C)  Assuming those who make an initial purchase will not continue to be repeat purchasers 
D)  None of the above 
A)  Assuming those who make an initial purchase will continue to be repeat purchasers 
B)  Assuming customers currently satisfied with existing alternatives will switch to your offering 
C)  Assuming those who make an initial purchase will not continue to be repeat purchasers 
D)  None of the above

Question 14

You can generate data for your venture concept reality check via _______________.

Accepted Answer

A)  personal interview 
B)  telephone interview 
C)  online surveys 
D)  All of the above 
A)  personal interview 
B)  telephone interview 
C)  online surveys 
D)  All of the above

Question 15

What does a classic "two-score score" in a venture concept reality check consists of?

Accepted Answer

A)  The percentage of target customers responding they are likely and very likely to buy the concept presented to them 
B)  The percentage of target customers likely to continue buying the existing solutions 
C)  The percentage of target customers responding they are not likely and very unlikely to buy the concept presented to them 
D)  None of the above 
A)  The percentage of target customers responding they are likely and very likely to buy the concept presented to them 
B)  The percentage of target customers likely to continue buying the existing solutions 
C)  The percentage of target customers responding they are not likely and very unlikely to buy the concept presented to them 
D)  None of the above

Question 16

When conducting your venture concept reality check what is one thing you want to do?

Accepted Answer

A)  Confirm target customers' core needs 
B)  Understand your target customers' attitudes 
C)  Understand your target customers' behaviors 
D)  All of the above 
A)  Confirm target customers' core needs 
B)  Understand your target customers' attitudes 
C)  Understand your target customers' behaviors 
D)  All of the above

Question 17

What do we call a venture that has started successfully, figured out its business model, and has expanded its customer base and product or service offerings?

Accepted Answer

A)  A venture concept 
B)  A prototype 
C)  A scaled-up venture 
D)  An early startup 
A)  A venture concept 
B)  A prototype 
C)  A scaled-up venture 
D)  An early startup

Question 18

Which of the following is a fatal mistake entrepreneurs can make when doing their venture concept reality check research?

Accepted Answer

A)  Talking to too many target customers 
B)  Failing to talk to that magic number of 100 customers 
C)  Failing to gain target customer insight with regard to the go-to-market aspects of the venture 
D)  Failing to talk to all competitors 
A)  Talking to too many target customers 
B)  Failing to talk to that magic number of 100 customers 
C)  Failing to gain target customer insight with regard to the go-to-market aspects of the venture 
D)  Failing to talk to all competitors

Question 19

Why might you find a gap between target customers' receptivity to buying a new venture's products or services and actually buying the products or services?

Accepted Answer

A)  The concept sounded or looked better in the reality check compared to the reality in the marketplace 
B)  The concept was not demonstrated or communicated effectively to the target customer 
C)  The venture failed to execute effectively in the marketplace, including packaging and merchandising 
D)  All of the above could lead to this gap 
A)  The concept sounded or looked better in the reality check compared to the reality in the marketplace 
B)  The concept was not demonstrated or communicated effectively to the target customer 
C)  The venture failed to execute effectively in the marketplace, including packaging and merchandising 
D)  All of the above could lead to this gap

Question 20

What is another key aspect of the venture concept reality check?

Accepted Answer

A)  How target customers prefer to pay for your offering 
B)  What target customers are willing to pay 
C)  Both A and B 
D)  None of the 
A)  How target customers prefer to pay for your offering 
B)  What target customers are willing to pay 
C)  Both A and B 
D)  None of the

When carrying out your venture concept reality check, where is the best place to engage your customers?

When do you "stop" talking to customers when gathering data on your venture concept reality check?

If an entrepreneur walks in with revenue projections without having talked to customers to validate purchase intent, price levels, place of purchase, and purchase frequency, how do you think he or she created those projections? How might the typical investor respond?

In technology-intensive businesses it is a common flaw to focus too much on , which often causes them to short-change the __.

Which data collection technique has the major advantage of enabling you to ask probing questions or see the reactions of the respondents to your venture concept reality check questions?

Which of the following statements is true with regard to deciding the number of customers to target for the venture reality check?

How can you gauge target customer purchase intent during the venture concept reality check?

What framework contains the target customer, the problem to be solved, the difference from competitive offerings, and the benefits that customers will expect?

If you wish to get potential customers' reactions to your prototype, what is the best way to do so?

Which of the following is very important to ascertain during your venture concept reality check process?

The reality check for your go-to-market strategy typically includes all of the following except for:

What is one of the big assumptions one makes when projecting revenue for the venture concept?

You can generate data for your venture concept reality check via _______________.

What does a classic "two-score score" in a venture concept reality check consists of?

When conducting your venture concept reality check what is one thing you want to do?

What do we call a venture that has started successfully, figured out its business model, and has expanded its customer base and product or service offerings?

Which of the following is a fatal mistake entrepreneurs can make when doing their venture concept reality check research?

Why might you find a gap between target customers' receptivity to buying a new venture's products or services and actually buying the products or services?

What is another key aspect of the venture concept reality check?

Defining Your Industry Focus and the Type of Business You Want to Start

Defining the Target Customer

Defining the Needs of Target Customers

Defining Solutions for Customers

Defining the Business Model for a Venture

Positioning and Branding a Venture in the Marketplace

Financial Sources for Startups and Corporate Ventures

Projecting the Financial Performance and Requirements for the Venture

Organizing the Venture Team

Writing the Business Plan

Making the Pitch

Filters

Exam 7: A Reality Check on the Venture Concept and the Business Model

When carrying out your venture concept reality check, where is the best place to engage your customers?

When do you "stop" talking to customers when gathering data on your venture concept reality check?

If an entrepreneur walks in with revenue projections without having talked to customers to validate purchase intent, price levels, place of purchase, and purchase frequency, how do you think he or she created those projections? How might the typical investor respond?

In technology-intensive businesses it is a common flaw to focus too much on ______, which often causes them to short-change the ________.

Which data collection technique has the major advantage of enabling you to ask probing questions or see the reactions of the respondents to your venture concept reality check questions?

Which of the following statements is true with regard to deciding the number of customers to target for the venture reality check?

How can you gauge target customer purchase intent during the venture concept reality check?

What framework contains the target customer, the problem to be solved, the difference from competitive offerings, and the benefits that customers will expect?

If you wish to get potential customers' reactions to your prototype, what is the best way to do so?

Which of the following is very important to ascertain during your venture concept reality check process?

The reality check for your go-to-market strategy typically includes all of the following except for:

What is one of the big assumptions one makes when projecting revenue for the venture concept?

You can generate data for your venture concept reality check via _______________.

What does a classic "two-score score" in a venture concept reality check consists of?

When conducting your venture concept reality check what is one thing you want to do?

What do we call a venture that has started successfully, figured out its business model, and has expanded its customer base and product or service offerings?

Which of the following is a fatal mistake entrepreneurs can make when doing their venture concept reality check research?

Why might you find a gap between target customers' receptivity to buying a new venture's products or services and actually buying the products or services?

What is another key aspect of the venture concept reality check?

Defining Your Industry Focus and the Type of Business You Want to Start

Defining the Target Customer

Defining the Needs of Target Customers

Defining Solutions for Customers

Defining the Business Model for a Venture

Positioning and Branding a Venture in the Marketplace

Financial Sources for Startups and Corporate Ventures

Projecting the Financial Performance and Requirements for the Venture

Organizing the Venture Team

Writing the Business Plan

Making the Pitch

Filters

In technology-intensive businesses it is a common flaw to focus too much on , which often causes them to short-change the __.