BPI Exam 1 Questions with 100% Correct Answers

Business model canvas Correct Answer is a strategic management tool to quickly and easily define and communicate a business idea or concept Customer segments Correct Answer the different groups of people or organization on an enterprise aims to reach and serve, heart of any business model Mass market Correct Answer one large group with broad needs/problems Niche market Correct Answer specific and specialized Segmented Correct Answer slightly different needs (ex: economy and 1st class) Diversified Correct Answer two or more unrelated segments, very different needs Multi-sided platforms Correct Answer serve 2 or more independent customer segments Value proposition Correct Answer the bundle of products and services that create value for specific customer segment, reason why customers turn to one company over another Newness Correct Answer new set of needs that were not perceived before ex: next iphone Performance Correct Answer improving product to creating value (ex: iphone tech) Customization Correct Answer tailoring product to specific needs Design Correct Answer product stands out because better design Brand/status Correct Answer value in specific brand Price Correct Answer offering lower price Cost reduction Correct Answer reduce costs ex: 300 water bottles = one brita Risk reduction Correct Answer reducing risk → 20 days to return something Convenience Correct Answer ex: CVS open 24 hours Channel Correct Answer the way to reach customer segments to deliver value proposition