MHR 322 EVALUATION TEST ANSWERS AND
QUESTIONS SET A+
✔✔According to Vic Verma (founder of Savi Technology), you should love what you do
as an entrepreneur because: - ✔✔You're likely to be doing it for a long time
✔✔According to the "For Entrepreneurs" article on estimating TAM (Total Addressable
Market), a bottom-up analysis: - ✔✔Explains how the new product/service will be priced
and how many units could be sold based on number of potential customers
✔✔According to Steve Blank's video on "Acting on Customer Discovery," the process of
customer discovery is critical because it: - ✔✔Identifies what the customer actually
wants rather than what the entrepreneur has already made
✔✔According to the MaRS article on estimating market size, your ultimate market size
(value) estimate is calculated as: - ✔✔Market volume (number of potential customers) x
average value (price/value per customer)
✔✔According to Disciplined Entrepreneurship, all of the following are conditions for
defining a market segment EXCEPT: - ✔✔-The customers within the market can serve
as references for each other
-The customers within the market all buy similar products
-The customers within the market have a similar sales cycle
-The customers within the market are all the same age (ANSWER)
✔✔According to Vic Verma (founder of Savi Technology), a common mistake for
entrepreneurs is: - ✔✔To believe that they can simply convince customers that they
need a new product or service
✔✔According to the MaRS article on estimating market size, you need to identify the
"market penetration"rate in order to figure out - ✔✔What percent of all potential
customers are likely to actually buy your product or service
, ✔✔Disciplined Entrepreneurship defines "China Syndrome" as a market size estimation
process based on claiming that the venture will succeed by capturing a small portion of
a huge market. - ✔✔True
✔✔An end-user profile should be relatively narrow because you do not want to spend
your time and resources trying to be everything to everyone. - ✔✔True
✔✔Once you have identified your beachhead market, you can be certain that all your
end-users can be described similarly and will want the same set of product features. -
✔✔False
✔✔When thinking about customers, the "Influencers" are people who have some sway
or direct control over the final purchasing decision. - ✔✔True
✔✔A good rule of thumb for thinking about your Total Addressable Market is that if it is
more than $1M then you have found a large enough beachhead market. - ✔✔False
✔✔The best way to calculate the number of end-users is: - ✔✔A bottom-up analysis to
identify the actual number of potential customers who fit the end-user profile.
✔✔A good target for Total Addressable Market for your beachhead market is probably
something between $20M and $100M. - ✔✔True
✔✔A "Persona" should be an actual person who best represents the primary customer
for the beachhead market. - ✔✔True
✔✔When you build your persona fact sheet, you should use all of the following
EXCEPT: - ✔✔-A drawing or photograph
Information about the person's life (age, family info, education, etc.)
-Information about the person's job (title, salary, training, etc.)
-A quantitative rating (e.g., 1 -5) of the individual's enthusiasm for your product or
service (ANSWER)
✔✔One of the most important aspects of the Persona is to list that person's purchasing
criteria in prioritized order. - ✔✔True
✔✔The starting point for being an entrepreneur is answering the following question:
"What can I do well that I would love to do for an extended period of time?" - ✔✔True
✔✔All of the following are steps in the Market Segmentation process EXCEPT: - ✔✔-
Conduct primary market research by talking to and observing customers.
-Narrow to a short list of interesting opportunities based on characteristics of the
customers, competition, and your team.
QUESTIONS SET A+
✔✔According to Vic Verma (founder of Savi Technology), you should love what you do
as an entrepreneur because: - ✔✔You're likely to be doing it for a long time
✔✔According to the "For Entrepreneurs" article on estimating TAM (Total Addressable
Market), a bottom-up analysis: - ✔✔Explains how the new product/service will be priced
and how many units could be sold based on number of potential customers
✔✔According to Steve Blank's video on "Acting on Customer Discovery," the process of
customer discovery is critical because it: - ✔✔Identifies what the customer actually
wants rather than what the entrepreneur has already made
✔✔According to the MaRS article on estimating market size, your ultimate market size
(value) estimate is calculated as: - ✔✔Market volume (number of potential customers) x
average value (price/value per customer)
✔✔According to Disciplined Entrepreneurship, all of the following are conditions for
defining a market segment EXCEPT: - ✔✔-The customers within the market can serve
as references for each other
-The customers within the market all buy similar products
-The customers within the market have a similar sales cycle
-The customers within the market are all the same age (ANSWER)
✔✔According to Vic Verma (founder of Savi Technology), a common mistake for
entrepreneurs is: - ✔✔To believe that they can simply convince customers that they
need a new product or service
✔✔According to the MaRS article on estimating market size, you need to identify the
"market penetration"rate in order to figure out - ✔✔What percent of all potential
customers are likely to actually buy your product or service
, ✔✔Disciplined Entrepreneurship defines "China Syndrome" as a market size estimation
process based on claiming that the venture will succeed by capturing a small portion of
a huge market. - ✔✔True
✔✔An end-user profile should be relatively narrow because you do not want to spend
your time and resources trying to be everything to everyone. - ✔✔True
✔✔Once you have identified your beachhead market, you can be certain that all your
end-users can be described similarly and will want the same set of product features. -
✔✔False
✔✔When thinking about customers, the "Influencers" are people who have some sway
or direct control over the final purchasing decision. - ✔✔True
✔✔A good rule of thumb for thinking about your Total Addressable Market is that if it is
more than $1M then you have found a large enough beachhead market. - ✔✔False
✔✔The best way to calculate the number of end-users is: - ✔✔A bottom-up analysis to
identify the actual number of potential customers who fit the end-user profile.
✔✔A good target for Total Addressable Market for your beachhead market is probably
something between $20M and $100M. - ✔✔True
✔✔A "Persona" should be an actual person who best represents the primary customer
for the beachhead market. - ✔✔True
✔✔When you build your persona fact sheet, you should use all of the following
EXCEPT: - ✔✔-A drawing or photograph
Information about the person's life (age, family info, education, etc.)
-Information about the person's job (title, salary, training, etc.)
-A quantitative rating (e.g., 1 -5) of the individual's enthusiasm for your product or
service (ANSWER)
✔✔One of the most important aspects of the Persona is to list that person's purchasing
criteria in prioritized order. - ✔✔True
✔✔The starting point for being an entrepreneur is answering the following question:
"What can I do well that I would love to do for an extended period of time?" - ✔✔True
✔✔All of the following are steps in the Market Segmentation process EXCEPT: - ✔✔-
Conduct primary market research by talking to and observing customers.
-Narrow to a short list of interesting opportunities based on characteristics of the
customers, competition, and your team.
