Question 1

________________________ 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).

Accepted Answer

The answer of ________________________ refers to the value of future...

Question 2

_________________ 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.

Accepted Answer

The answer of _________________ is a software development approach where...

Question 3

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

Accepted Answer

A)  Customer Acquisition Costs < CLV = NPV (future customer profits) 
B)  CLV < Customer Acquisition Costs = NPV (future customer profits) 
C)  NPV (future customer profits) < CLV = Customer Acquisition Costs 
D)  Customer Acquisition Costs < MVP = Product/Market Fit

Question 4

Creating a business often involves convincing suppliers to participate in your new offering. While Rent the Runway had proven customer interesting, some designers had initial concerns about Jenn Hyman and Jenny Fleiss's firm. Briefly describe supplier concern.

Accepted Answer

The answer of Creating a business often involves convincing suppliers...

Question 5

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

Accepted Answer

The answer of How is Rent the Runway working to...

Question 6

Which of the following is not a reason why Rent the Runway appeals to designers?

Accepted Answer

A)  The firm introduces high-end designer brands to new customers. 
B)  The firm brings in younger customers, averaging about a decade younger than department store customers. 
C)  Most Rent the Runway customers rent brands they've never bought before. 
D)  Some designers have used Rent the Runway to test new looks. 
E)  None of the above - all convey the site's appeal to designers

Question 7

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 million women as customers of their service.

Accepted Answer

A) True 
 B)False

Question 8

At Rent the Runway, customers arriving at the site via ________________ media have a much higher (reported as high as 200 percent) conversion rate than customers arriving via _____________ media.

Accepted Answer

A)  search, social 
B)  advertising, social 
C)  referral, social 
D)  earned, paid

Question 9

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.

Accepted Answer

The answer of The term _______________________ is often used in...

Question 10

Which of the following is NOT true about mobile app development:

Accepted Answer

A)  Many experimental features and A/B tests are more easily conducted on the Web than on mobile. 
B)  Updates and bug fixes can take longer to reach mobile users than users of a firm's web product. 
C)  Mobile apps are considered far easier to develop than websites, in fact, most managers can create robust apps using drag-and-drop tools. 
D)  A well designed app can increase an e-commerce site's customer engagement since customers always have the 'store' in their pocket.

Question 11

The concept of ____________________ refers to positive influence created when someone finds out that others are doing something.

Accepted Answer

The answer of The concept of ____________________ refers to positive...

Question 12

Determining product/market fit is often very expensive for entrepreneurs, since it amounts, essentially, to fully building out a firm's website and operational model.

Accepted Answer

A) True 
 B)False

Question 13

Describe why Rent the Runway's customers have an especially strong lifetime customer value?

Accepted Answer

The answer of Describe why Rent the Runway's customers have...

Question 14

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

Accepted Answer

The answer of Describe the advantages that Rent the Runway's...

Question 15

____________________ 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.

Accepted Answer

The answer of ____________________ refers to the amount of money...

Question 16

The term _________________________ is used in the business press to refer to startups valued at $1 billion or more.

Accepted Answer

The answer of The term _________________________ is used in the...

Question 17

Describe why CLV is especially difficult for new firms with new models to calculate.

Accepted Answer

The answer of Describe why CLV is especially difficult for...

Question 18

How does Data help inform buying decisions at Rent the Runway?

Accepted Answer

The answer of How does Data help inform buying decisions...

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 40