GB370 Business Model Canvas (Exam 1) | Study Guide, Practice Questions &
Exam Review
Business Model - correct answer ✔✔A business model describes the rationale of how an
organization creates, delivers, and captures value
The 9 building blocks: - correct answer ✔✔1. Customer Segments
2. Value Proposition
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Resources
7. Key Activities
8. Key Partnerships
9. Cost Structure
Business Model Canvas - correct answer ✔✔
1. Customer Segments - correct answer ✔✔- The Customer Segments Building Block defines the
different groups of people or organizations an enterprise aims to reach and serve
- In order to better satisfy customers, a company may group them into distinct segments with
common needs, common behaviors,
or other attributes
- a business model can be carefully designed around a strong understanding of specific
customer needs.
Types of Customer Segments: - correct answer ✔✔-mass market: all focus on one large group
, of customers with broadly similar needs and problems
-niche market: cater to specific, specialized Customer Segments
-segmented market: distinguish between market segments with slightly different needs and
problems
-diversified market: serves two unrelated Customer Segments
with very different needs and problems
-multi-sided market: serve two or more interdepen- dent Customer Segments
2. Value Proposition - correct answer ✔✔-The Value Propositions Building Block describes the
bundle of products and services that create value for a specific Customer Segment
-The Value Proposition is the reason why customers turn to one company over another.
-It solves a customer problem or satisfies
a customer need.
-A Value Proposition creates value for a Customer Segment through a distinct mix of elements
cater- ing to that segment's needs. Values may be quantitative (e.g. price, speed of service) or
qualitative (e.g. design, customer experience).
Types of Value Proposition: - correct answer ✔✔-Newness: satisfy an entirely new set of needs
that customers previously didn't perceive because there was no similar offering
-Performance: Improving product or service performance has traditionally been a common way
to create value.
Exam Review
Business Model - correct answer ✔✔A business model describes the rationale of how an
organization creates, delivers, and captures value
The 9 building blocks: - correct answer ✔✔1. Customer Segments
2. Value Proposition
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Resources
7. Key Activities
8. Key Partnerships
9. Cost Structure
Business Model Canvas - correct answer ✔✔
1. Customer Segments - correct answer ✔✔- The Customer Segments Building Block defines the
different groups of people or organizations an enterprise aims to reach and serve
- In order to better satisfy customers, a company may group them into distinct segments with
common needs, common behaviors,
or other attributes
- a business model can be carefully designed around a strong understanding of specific
customer needs.
Types of Customer Segments: - correct answer ✔✔-mass market: all focus on one large group
, of customers with broadly similar needs and problems
-niche market: cater to specific, specialized Customer Segments
-segmented market: distinguish between market segments with slightly different needs and
problems
-diversified market: serves two unrelated Customer Segments
with very different needs and problems
-multi-sided market: serve two or more interdepen- dent Customer Segments
2. Value Proposition - correct answer ✔✔-The Value Propositions Building Block describes the
bundle of products and services that create value for a specific Customer Segment
-The Value Proposition is the reason why customers turn to one company over another.
-It solves a customer problem or satisfies
a customer need.
-A Value Proposition creates value for a Customer Segment through a distinct mix of elements
cater- ing to that segment's needs. Values may be quantitative (e.g. price, speed of service) or
qualitative (e.g. design, customer experience).
Types of Value Proposition: - correct answer ✔✔-Newness: satisfy an entirely new set of needs
that customers previously didn't perceive because there was no similar offering
-Performance: Improving product or service performance has traditionally been a common way
to create value.
