Question 1

Food Flight offers unique food options that are flown in from key cities.Customer can order smoked salmon from Alaska, shrimp creole from Louisiana, and Texas ribs from Dallas.What problem does Food Flight address?

Accepted Answer

Food Flight addresses the lack of access to unique food options from different cities by flying them in for customers to order.

Question 2

Andrew owns a popular, but expensive Chinese restaurant.In order to introduce more people to his brand, he offers a series of one-time "taste fairs" in which he brings his recipes to a locally sponsored event.Customers are able to pay modest amounts for small servings of his creations while not paying for the ambiance of the famous restaurant.What need is Andrew addressing?

Accepted Answer

The answer of Andrew owns a popular, but expensive Chinese...

Question 3

Which of the following defines the term mass market?

Accepted Answer

Mass market refers to a large group of customers with similar needs or problems, targeted by businesses aiming to reach a wide audience with their products or services.

Question 4

Alice picks up a package of security software and reviews the back cover.On it, it lists various features and compares the software's performance against its competitors, relative to those features.The result is a matrix of xs and the software has more xs than its competitors.This approach to CVP demonstrates which of the following?

Accepted Answer

The points-of-difference approach focuses on highlighting the features that differentiate a product from its competitors, which is what the matrix of xs is demonstrating.

Question 5

Which of the following is considered the "gold standard" of a CVP?

Accepted Answer

The resonating-focus approach is considered the "gold standard" of a customer value proposition (CVP) because it emphasizes the most compelling points of value that resonate with the customer, focusing on what is most important to them.

Question 6

What major customer problem did MinuteClinic solve in their CVP?

Accepted Answer

The answer of What major customer problem did MinuteClinic solve...

Question 7

The Perfect Grind offers drive-through coffee and snacks to commuters coming to and from work.They also cater to college students who attend a community college a block away.What would describe the Perfect Grinds' target customer?

Accepted Answer

The answer of The Perfect Grind offers drive-through coffee and...

Question 8

Customers like to create handmade gifts for friends and family.Pat's store offers pre-formed ceramic products that can be easily colored in and painted.Pat then fires the ceramic pieces for a lifetime keepsake.What need is Pat addressing in her CVP?

Accepted Answer

Pat is addressing a lack of skill by offering pre-formed ceramic products that can be easily colored and painted by customers. This allows customers without artistic ability to still create handmade gifts for loved ones. The other options (lack of time, gift ideas, money) are not directly addressed by Pat's CVP.

Question 9

What is the key feature of the resonating-focus approach to CVP?

Accepted Answer

The answer of What is the key feature of the...

Question 10

A ______ market is a small market segment comprised of customers with specific needs and requirements.

Accepted Answer

A niche market is a smaller segment of a larger market with specific needs and preferences, often overlooked by larger businesses but valuable to smaller businesses targeting a specific demographic or interest group. A micro market is similar but usually even more specialized and narrowly defined. A boutique market typically refers to a small physical store offering specialized goods or services, rather than a market segment. A target market is a broader segment of a market that a company aims to reach with its products or services. Thus, the most appropriate answer is (B) niche market.

Question 11

This market describes two or more customer segments that are linked mutually but independent of each other.

Accepted Answer

Multisided markets describe a market where two or more distinct customer segments interact with each other through a platform, but each segment is independent of the other. Examples of multisided markets include credit card companies (merchants and cardholders), video game platforms (gamers and game developers), and online classifieds (buyers and sellers).

Question 12

What are the four major categories of problems experienced by customers?

Accepted Answer

The four major categories of problems experienced by customers are lack of time, money, skill, and access. These categories encompass the common barriers that prevent customers from achieving their goals or solving their problems.

Question 13

Breaking up your customer segments into groups of common needs and problems would create which of the following markets?

Accepted Answer

Segmented market refers to dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics, such as common needs and problems.

Question 14

Which of the following offers a variety of products to two or more customer segments with different needs, even if the resulting markets are unrelated to one another?

Accepted Answer

A diversified market offers a variety of products to two or more customer segments with different needs, even if the resulting markets are unrelated to one another. This strategy allows a company to spread its risk across multiple markets and customer segments, reducing its dependence on any one market or product. Examples of companies using a diversified market strategy include General Electric and Procter & Gamble.

Question 15

Which of the following might be considered when determining your target market?

Accepted Answer

All of these factors are relevant when determining a target market. Age can determine interests and purchasing behavior, capacity for risk affects willingness to try new products or investments, and being a trendsetter can indicate a market segment that is willing to try new things and set trends for others to follow.

Question 16

Which of the following might have a multisided market segment?

Accepted Answer

The answer of Which of the following might have a...

Question 17

Christine has obtained a job pitching a product at a local state fair.Her job is to demonstrate cookware, highlighting its features and demonstrating its use as she prepares food for visitors who can stop, watch her cook, and get samples.The cookware will be offered at a sizeable discount.Christine will be selling the cookware based on which of the following CVPs?

Accepted Answer

The all-benefits approach is appropriate for this situation. Christine's job is to showcase the features and benefits of the cookware to potential customers. By highlighting the benefits, she can persuade customers to purchase the cookware. This approach is effective for selling products at events where customer engagement is high, such as state fairs. The hard-sell approach is aggressive and may turn customers off, while the points of difference approach may not be as effective as customers may not see the value in the differences. The customer engagement approach is important for overall customer satisfaction and loyalty, but it is not specific to selling the cookware.

Question 18

Which approach to CVP involves listing all the benefits of your product or service without comparing it to others?

Accepted Answer

The approach that involves listing all the benefits of your product or service without comparing it to others is called the all-benefits approach. This approach is effective in conveying the value of your product without making direct comparisons to competitors.

Question 19

Gift Prescriptions is a company that offers small gifts that can be left behind in doctors' offices as an appreciation for time spent reviewing company products.Gift Prescriptions sells their gifts to pharmaceutical companies, therapists, and medical supply stores.Gift Prescriptions' market segment would be described as ______.

Accepted Answer

Gift Prescriptions targets a specific group of customers within the healthcare industry, which is a characteristic of a niche market.

Question 20

Which of the following might be considered when determining your target market?

Accepted Answer

All of these factors (age, gender, profession, and more) should be considered when determining your target market. Understanding your target market is essential to creating effective marketing campaigns and business strategies.

Quiz 8: Building Business Models

Food Flight offers unique food options that are flown in from key cities.Customer can order smoked salmon from Alaska, shrimp creole from Louisiana, and Texas ribs from Dallas.What problem does Food Flight address?

Which of the following defines the term mass market?

Which of the following is considered the "gold standard" of a CVP?

What major customer problem did MinuteClinic solve in their CVP?

The Perfect Grind offers drive-through coffee and snacks to commuters coming to and from work.They also cater to college students who attend a community college a block away.What would describe the Perfect Grinds' target customer?

Customers like to create handmade gifts for friends and family.Pat's store offers pre-formed ceramic products that can be easily colored in and painted.Pat then fires the ceramic pieces for a lifetime keepsake.What need is Pat addressing in her CVP?

What is the key feature of the resonating-focus approach to CVP?

A ______ market is a small market segment comprised of customers with specific needs and requirements.

This market describes two or more customer segments that are linked mutually but independent of each other.

What are the four major categories of problems experienced by customers?

Breaking up your customer segments into groups of common needs and problems would create which of the following markets?

Which of the following offers a variety of products to two or more customer segments with different needs, even if the resulting markets are unrelated to one another?

Which of the following might be considered when determining your target market?

Which of the following might have a multisided market segment?

Which approach to CVP involves listing all the benefits of your product or service without comparing it to others?

Which of the following might be considered when determining your target market?