Question 1

Which of the following is an entrepreneur doing when he or she validates a customer?

Accepted Answer

Validating a customer involves conducting preliminary research to determine whether the entrepreneur has the right solution for the customer's needs. This process helps in understanding if the product or service being developed meets the market demand and solves a problem for the customer.

Question 2

A product life cycle is analogous to an industry life cycle, with periods of new product development, market introduction, growth, maturity, and decline.

Accepted Answer

Both a product life cycle and an industry life cycle follow similar stages: development, introduction, growth, maturity, and decline, reflecting the evolution of a product or industry over time.

Question 3

_____ product development provides a young firm with a network of expertise that it couldn't afford to hire in-house.

Accepted Answer

Outsourcing product development allows a young firm to access a wide range of expertise and skills from external sources, which it may not have the resources to employ directly. This can include everything from design and engineering to manufacturing and marketing, providing the firm with a comprehensive network of support it couldn't otherwise afford.

Question 4

All of the tasks in the product development cycle will take place; however, they often occur in parallel or out of order.

Accepted Answer

The product development cycle is not strictly linear; tasks often occur in parallel or out of sequence to accommodate the dynamic nature of developing new products, allowing for flexibility and iterative improvements.

Question 5

Poor execution, time-to-market increases, and missed first-to-market opportunities are some of the problems associated with

Accepted Answer

Poor execution and time-to-market increases, along with missed first-to-market opportunities, are often due to a lack of new product development (NPD) resources. This can lead to delays in development and launch, impacting a company's competitive edge.

Question 6

In the context of product development, which of the following would be good advice?

Accepted Answer

The advice listed in options A, B, and C are generally considered poor practices in product development. Effective product development often involves close collaboration within teams, making decisions based on factors beyond just price, and keeping R&D connected with customer feedback to ensure the product meets market needs.

Question 7

Identifying a problem that potential customers have may lead to a(n)

Accepted Answer

Identifying a problem that potential customers have can indeed lead to a market niche that has not yet been served, a potential improvement in an existing product, or an opportunity for a breakthrough product or process. All these options are ways in which businesses can innovate and find success by addressing unmet needs in the market.

Question 8

Research has revealed that the principal reason for new product failure is lack of

Accepted Answer

The principal reason for new product failure is often attributed to a lack of good market and industry analysis, as this leads to misunderstandings about customer needs, market demand, and competitive positioning.

Question 9

When an entrepreneur validates a customer, he or she is assuring them that they are important to the entrepreneur and the entrepreneur's top priority, even if the reality is that the entrepreneur has other customers competing for the same resources.

Accepted Answer

Validating a customer in entrepreneurship typically means confirming that there is a market need for the entrepreneur's product or service, not assuring the customer of their importance or priority level.

Question 10

When building a minimum viable product (MVP), it's important to remember that it is the number of times you iterate your MVP that produces a viable product.

Accepted Answer

Iterating an MVP is important, but the focus should be on learning from each iteration to improve the product based on user feedback and market needs, not just the number of iterations.

Question 11

Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.

Accepted Answer

Poor execution in product development can delay a product's launch, causing a company to miss the optimal window for entering the market when competition is low or absent, thereby missing out on establishing a strong market presence early on.

Question 12

An entrepreneur who produces a complete solution and controls all the complements is involved in

Accepted Answer

Vertical architecture involves an entrepreneur producing a complete solution and controlling all the complements.

Question 13

The product development cycle consists of a series of tasks leading to introduction of the product in the marketplace.

Accepted Answer

The product development cycle involves a series of steps, including ideation, design, development, testing, and launch, aimed at bringing a new product to the market.

Question 14

The failure rate for new consumer products is somewhere between 10 and 30 percent.

Accepted Answer

The failure rate for new consumer products is actually much higher, with estimates often cited around 80 to 95 percent.

Question 15

A _____ is that version of a product that contains just enough of the functionality and value proposition to attract early adopters who provide feedback and help an entrepreneur develop a final product for the mass market.

Accepted Answer

A minimum viable product (MVP) is designed to include just enough features to attract early adopters, who can then provide valuable feedback for future product development, making it the correct choice for this definition.

Question 16

Because entrepreneurs always approach product development in the same systematic way that large companies do, they are affected by the need to address the weakest link in their new product strategy to avoid failure.

Accepted Answer

Entrepreneurs often approach product development in a more flexible, iterative, and adaptive manner compared to the systematic approaches of large companies, allowing them to pivot quickly and address issues as they arise without being strictly tied to addressing the "weakest link" in a linear strategy.

Question 17

Which of the following constitutes intellectual property?

Accepted Answer

All of the options listed, copyrights, patents, and trade secrets, are recognized forms of intellectual property. Each of these protects different types of creations, inventions, or proprietary information.

Question 18

All of the following are common problems associated with new product development (NPD) EXCEPT

Accepted Answer

The answer of All of the following are common problems...

Question 19

In entrepreneurial parlance, MVP stands for most valuable player.

Accepted Answer

In entrepreneurial parlance, MVP stands for Minimum Viable Product, which is a version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.

Question 20

Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a complex design and development process.

Accepted Answer

The design and development process for new products, services, or improvements involves multiple stages including ideation, research, prototyping, testing, and refinement to ensure the final output meets the desired standards and requirements.

Quiz 6: Prototyping and Validating a Solution