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