EEE 370 CORRECT FINAL EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔Features vs. Benefits - ✔✔Feature - Data, facts or physical characteristic of the
product or service
Benefit - Whatever provides the customer with an advantage or gain - what need does
the benefit meet?
*Only when a product feature is converted into a buyer benefit does it make an impact
✔✔Components of value - ✔✔1. Cost
2. Quality
3. Features
4. Convenience
5. Reliability
6. Expertise (yours, not the customers)
7. Product support
8. Guarantee/Ongoing relationship
✔✔Feasibility analysis (including industry) - ✔✔-Attractiveness
-Timeliness (window of opportunity)
-Niche market
-Competitors
-PEST
-Porter's Five Forces
✔✔Feasibility analysis - ✔✔A set of tools and process for examining business concepts
in a way that gives you confidence about the conditions under which you are willing to
move forward
✔✔Niche market - ✔✔Serving a specialized market very well instead of trying to be
everything to everybody in a broad market
✔✔Perceived value - ✔✔The customer's personal assignment of value to a product
, ✔✔Formula for increasing perceived value - ✔✔Study the eight components of value:
-strengthen what the customer expects
-strengthen what the product excels at
-sometimes strengthening is better communication, not product modification
✔✔3 components of self-efficacy - ✔✔1. Believe
2. Capacity
3. Task
✔✔How can you control risk? - ✔✔-Risk avoidance (eliminating the risk)
-Risk reduction (minimizing the risk)
-Risk transfer (shifting the consequences of a risk to persons or organizations outside
your business, insurance)
-Risk assumption (risk absorption/risk retention, the planned acceptance of the risk of
loss)
✔✔How can you decrease risk? - ✔✔1. Knowing more and taking things slowly
-Identify key risk areas
-Prototypes, trial markets, staged roll-outs
-Immediate feedback (customer, employee)
-Resource leveraging
-Planning
2. Thinking about the future
-Limited fixed investments
-Investing in people
-Shared resources (incubator, partners)
✔✔Risk - ✔✔The difference between expected outcomes and actual outcomes
(magnitude of loss) X (probability of risk)
✔✔Standard business models - ✔✔Existing plans firms can use to determine how they
will create, deliver and capture value for their stakeholders
✔✔Disruptive business models - ✔✔Ones that do not fit the profile of a standard
business model, and are impactful enough that they disrupt or change the way business
is conducted in an industry (or niche)
✔✔Pivot - ✔✔A change in strategy without a change in vision
✔✔Income model - ✔✔
✔✔Growth model - ✔✔
ANSWERS SURE A+
✔✔Features vs. Benefits - ✔✔Feature - Data, facts or physical characteristic of the
product or service
Benefit - Whatever provides the customer with an advantage or gain - what need does
the benefit meet?
*Only when a product feature is converted into a buyer benefit does it make an impact
✔✔Components of value - ✔✔1. Cost
2. Quality
3. Features
4. Convenience
5. Reliability
6. Expertise (yours, not the customers)
7. Product support
8. Guarantee/Ongoing relationship
✔✔Feasibility analysis (including industry) - ✔✔-Attractiveness
-Timeliness (window of opportunity)
-Niche market
-Competitors
-PEST
-Porter's Five Forces
✔✔Feasibility analysis - ✔✔A set of tools and process for examining business concepts
in a way that gives you confidence about the conditions under which you are willing to
move forward
✔✔Niche market - ✔✔Serving a specialized market very well instead of trying to be
everything to everybody in a broad market
✔✔Perceived value - ✔✔The customer's personal assignment of value to a product
, ✔✔Formula for increasing perceived value - ✔✔Study the eight components of value:
-strengthen what the customer expects
-strengthen what the product excels at
-sometimes strengthening is better communication, not product modification
✔✔3 components of self-efficacy - ✔✔1. Believe
2. Capacity
3. Task
✔✔How can you control risk? - ✔✔-Risk avoidance (eliminating the risk)
-Risk reduction (minimizing the risk)
-Risk transfer (shifting the consequences of a risk to persons or organizations outside
your business, insurance)
-Risk assumption (risk absorption/risk retention, the planned acceptance of the risk of
loss)
✔✔How can you decrease risk? - ✔✔1. Knowing more and taking things slowly
-Identify key risk areas
-Prototypes, trial markets, staged roll-outs
-Immediate feedback (customer, employee)
-Resource leveraging
-Planning
2. Thinking about the future
-Limited fixed investments
-Investing in people
-Shared resources (incubator, partners)
✔✔Risk - ✔✔The difference between expected outcomes and actual outcomes
(magnitude of loss) X (probability of risk)
✔✔Standard business models - ✔✔Existing plans firms can use to determine how they
will create, deliver and capture value for their stakeholders
✔✔Disruptive business models - ✔✔Ones that do not fit the profile of a standard
business model, and are impactful enough that they disrupt or change the way business
is conducted in an industry (or niche)
✔✔Pivot - ✔✔A change in strategy without a change in vision
✔✔Income model - ✔✔
✔✔Growth model - ✔✔
