BPI EXAM 1 VERIFIED STUDY GUIDE
business model canvas - Answers - is a strategic management tool to quickly and
easily define and communicate a business idea or concept
customer segments - Answers - the different groups of people or organization on an
enterprise aims to reach and serve, heart of any business model
mass market - Answers - one large group with broad needs/problems
niche market - Answers - specific and specialized
segmented - Answers - slightly different needs (ex: economy and 1st class)
diversified - Answers - two or more unrelated segments, very different needs
multi-sided platforms - Answers - serve 2 or more independent customer segments
value proposition - Answers - the bundle of products and services that create value for
specific customer segment, reason why customers turn to one company over another
newness - Answers - new set of needs that were not perceived before ex: next iphone
performance - Answers - improving product to creating value (ex: iphone tech)
Customization - Answers - tailoring product to specific needs
design - Answers - product stands out because better design
brand/status - Answers - value in specific brand
price - Answers - offering lower price
cost reduction - Answers - reduce costs ex: 300 water bottles = one brita
risk reduction - Answers - reducing risk → 20 days to return something
convenience - Answers - ex: CVS open 24 hours
channel - Answers - the way to reach customer segments to deliver value proposition
awareness - Answers - raising awareness about product ex: blow up things outside of
car dealerships for new deals (channel stage 1)
, evaluation - Answers - helping customers evaluate a company value prop ex: reviews,
tripadvisor, yelp (channel stage 2)
purchase - Answers - mechanism facilitating the transaction between customer and
business ex: amazon (channel stage 3)
delivery - Answers - transfer of value proposition to the customer; physical or virtual
(channel stage 4)
after sale support - Answers - helping customers resolve problems arising after
receiving value proposition (channel stage 5)
customer relationship - Answers - what type of relationship do customers expect
personal assistance - Answers - can talk to real customer representative
dedicated personal assistance - Answers - serves specific individual client ex: most
intimate, therapist
self-service - Answers - no direct service, means to help themselves
automated service - Answers - sophisticated self service , ex: netflix
communities - Answers - online community where users interact to achieve different
objectives ex: crowd med? Diagnosing random users
co-creation - Answers - co-create value ex: threadless website
revenue streams - Answers - cash company generate from each segment "arteries of
business", determine willingness to pay
transaction revenue - Answers - one-time customer payment ex: trip to mall
recurring payments - Answers - ongoing payments ex: gym membership
asset sale - Answers - selling ownership rights to product ex: ice cream shop
subscription fees - Answers - selling continuous access to service ex: netflix
lending/renting - Answers - granting rights to use asset for fixed period ex: rental car
Licensing - Answers - Permission to use protected intellectual property ex: action
figures from a movie
brokerage fees - Answers - intermediation services performed on behalf of 2 or more
parties ex: closing a deal on a house
business model canvas - Answers - is a strategic management tool to quickly and
easily define and communicate a business idea or concept
customer segments - Answers - the different groups of people or organization on an
enterprise aims to reach and serve, heart of any business model
mass market - Answers - one large group with broad needs/problems
niche market - Answers - specific and specialized
segmented - Answers - slightly different needs (ex: economy and 1st class)
diversified - Answers - two or more unrelated segments, very different needs
multi-sided platforms - Answers - serve 2 or more independent customer segments
value proposition - Answers - the bundle of products and services that create value for
specific customer segment, reason why customers turn to one company over another
newness - Answers - new set of needs that were not perceived before ex: next iphone
performance - Answers - improving product to creating value (ex: iphone tech)
Customization - Answers - tailoring product to specific needs
design - Answers - product stands out because better design
brand/status - Answers - value in specific brand
price - Answers - offering lower price
cost reduction - Answers - reduce costs ex: 300 water bottles = one brita
risk reduction - Answers - reducing risk → 20 days to return something
convenience - Answers - ex: CVS open 24 hours
channel - Answers - the way to reach customer segments to deliver value proposition
awareness - Answers - raising awareness about product ex: blow up things outside of
car dealerships for new deals (channel stage 1)
, evaluation - Answers - helping customers evaluate a company value prop ex: reviews,
tripadvisor, yelp (channel stage 2)
purchase - Answers - mechanism facilitating the transaction between customer and
business ex: amazon (channel stage 3)
delivery - Answers - transfer of value proposition to the customer; physical or virtual
(channel stage 4)
after sale support - Answers - helping customers resolve problems arising after
receiving value proposition (channel stage 5)
customer relationship - Answers - what type of relationship do customers expect
personal assistance - Answers - can talk to real customer representative
dedicated personal assistance - Answers - serves specific individual client ex: most
intimate, therapist
self-service - Answers - no direct service, means to help themselves
automated service - Answers - sophisticated self service , ex: netflix
communities - Answers - online community where users interact to achieve different
objectives ex: crowd med? Diagnosing random users
co-creation - Answers - co-create value ex: threadless website
revenue streams - Answers - cash company generate from each segment "arteries of
business", determine willingness to pay
transaction revenue - Answers - one-time customer payment ex: trip to mall
recurring payments - Answers - ongoing payments ex: gym membership
asset sale - Answers - selling ownership rights to product ex: ice cream shop
subscription fees - Answers - selling continuous access to service ex: netflix
lending/renting - Answers - granting rights to use asset for fixed period ex: rental car
Licensing - Answers - Permission to use protected intellectual property ex: action
figures from a movie
brokerage fees - Answers - intermediation services performed on behalf of 2 or more
parties ex: closing a deal on a house
