ENTR 2030 QUIZ 3 QUESTIONS AND ANSWERS
Evidence-based entrepreneurship - Answers -the practice of hypothesizing, testing,
and validating to create a business model
Business model - Answers -describes the rationale of how a new venture creates,
delivers, and captures value
4 types of business models - Answers -Innovation, disruption, differentiation, and
imitation
Imitation - Answers -existing customers and existing products and services
Differentiation - Answers -New customers but existing products and services
Disruption - Answers -Existing customers but new products and services
Innovation - Answers -New customers and new products and services
4 parts of the business model - Answers -1. The offering
2. The customer
3. The infrastructure
4. Financial viability
Offering - Answers -what you are offering to a particular customer segment, the value
generated for those customers, and how you will reach and communicate with them
Customer value proposition (CVP) - Answers -a statement that describes why a
customer should buy and use your product or service
Customers - Answers -people who populate the segments of a market served by the
offering
Infrastructure - Answers -the resources (people, technology, products, suppliers,
partners, facilities) that an entrepreneur must have in order to deliver the CVP
Financial viability - Answers -defines the revenue and cost structures a business needs
to meet its operating expenses and financial obligations
True or False: all 4 parts of the business model can be a source of innovation and
competitive advantage - Answers -True
3 qualities of an effective CVP - Answers -1. Must offer better value than the
competitors
2. Must be measurable in monetary terms
, 3. Must be sustainable
3 main approaches to creating CVPs - Answers -All-benefits, points-of-difference,
resonating-focus
All-benefits - Answers -a type of value proposition that involves identifying and
promoting the benefits of a product or service to customer segments, with little regard
for competition or any real insight into what the customer really wants or needs
Points-of-difference - Answers -a type of value proposition that focuses on the product
or service relative to the competition and how the offering is different from others on the
market
Resonating-focus - Answers -a type of value proposition that describes why people will
really like your product and focuses on the customers and what they really need and
value
Product-market fit - Answers -an offering that meets the needs of customers
Alternative names for resonating-focus - Answers -"just what the customer wants" or
product-market fit
Good value proposition - Answers -All-benefits (focus is on the product)
Better value proposition - Answers -points-of-difference (focus is on the competition)
Best value proposition - Answers -resonating-focus (focus is on the customer)
3 questions businesses answer - Answers -1. What's in it for me?
2. Why should I believe you?
3. Why should I care?
3 Laws of Marketing Physics - Answers -Overt benefit, real reason to believe, dramatic
difference
Overt benefit - Answers -the one big benefit for your customer
Real reason to believe - Answers -provides evidence to the customer that you will do
as you promise
Dramatic difference - Answers -the uniqueness of your product or service in relation to
other available options
4 problems experienced by customers - Answers -lack of time, lack of money, lack of
skills, lack of access
Evidence-based entrepreneurship - Answers -the practice of hypothesizing, testing,
and validating to create a business model
Business model - Answers -describes the rationale of how a new venture creates,
delivers, and captures value
4 types of business models - Answers -Innovation, disruption, differentiation, and
imitation
Imitation - Answers -existing customers and existing products and services
Differentiation - Answers -New customers but existing products and services
Disruption - Answers -Existing customers but new products and services
Innovation - Answers -New customers and new products and services
4 parts of the business model - Answers -1. The offering
2. The customer
3. The infrastructure
4. Financial viability
Offering - Answers -what you are offering to a particular customer segment, the value
generated for those customers, and how you will reach and communicate with them
Customer value proposition (CVP) - Answers -a statement that describes why a
customer should buy and use your product or service
Customers - Answers -people who populate the segments of a market served by the
offering
Infrastructure - Answers -the resources (people, technology, products, suppliers,
partners, facilities) that an entrepreneur must have in order to deliver the CVP
Financial viability - Answers -defines the revenue and cost structures a business needs
to meet its operating expenses and financial obligations
True or False: all 4 parts of the business model can be a source of innovation and
competitive advantage - Answers -True
3 qualities of an effective CVP - Answers -1. Must offer better value than the
competitors
2. Must be measurable in monetary terms
, 3. Must be sustainable
3 main approaches to creating CVPs - Answers -All-benefits, points-of-difference,
resonating-focus
All-benefits - Answers -a type of value proposition that involves identifying and
promoting the benefits of a product or service to customer segments, with little regard
for competition or any real insight into what the customer really wants or needs
Points-of-difference - Answers -a type of value proposition that focuses on the product
or service relative to the competition and how the offering is different from others on the
market
Resonating-focus - Answers -a type of value proposition that describes why people will
really like your product and focuses on the customers and what they really need and
value
Product-market fit - Answers -an offering that meets the needs of customers
Alternative names for resonating-focus - Answers -"just what the customer wants" or
product-market fit
Good value proposition - Answers -All-benefits (focus is on the product)
Better value proposition - Answers -points-of-difference (focus is on the competition)
Best value proposition - Answers -resonating-focus (focus is on the customer)
3 questions businesses answer - Answers -1. What's in it for me?
2. Why should I believe you?
3. Why should I care?
3 Laws of Marketing Physics - Answers -Overt benefit, real reason to believe, dramatic
difference
Overt benefit - Answers -the one big benefit for your customer
Real reason to believe - Answers -provides evidence to the customer that you will do
as you promise
Dramatic difference - Answers -the uniqueness of your product or service in relation to
other available options
4 problems experienced by customers - Answers -lack of time, lack of money, lack of
skills, lack of access
