Question 1

What should your venture concept summary statement address?
A) The target customer
B) The problem to be solved
C) The difference from competitive offerings
D) All the above

Accepted Answer

A venture concept summary statement should address the target customer, the problem to be solved, and the difference from competitive offerings. It is important to include all of these elements in order to effectively communicate the unique value proposition of the venture.

Question 2

When do you "stop" talking to customers when gathering data on your venture concept reality check?
A) When no new significant information is being obtained
B) After 30 customers
C) When customers stop answering your questions
D) After 10 customers

Accepted Answer

The key is to continue talking to customers until you have fully explored all aspects of your venture concept and have achieved sufficient depth in your understanding. Once you start hearing the same responses repeatedly, it may be a sign that you have reached saturation point and that additional conversations may not be beneficial. However, a specific number should not be the determining factor, but rather a thorough understanding of the customer perspective. Therefore, option A is the best choice.

Question 3

What does a classic "two-score score" in a venture concept reality check consists of?
A) The percentage of target customers responding they are likely and very likely to buy the concept presented to them
B) The percentage of target customers likely to continue buying the existing solutions
C) The percentage of target customers responding they are not likely and very unlikely to buy the concept presented to them
D) None of the above

Accepted Answer

A classic "two-score score" in a venture concept reality check is the percentage of target customers responding they are likely and very likely to buy the concept presented to them. This score is calculated by adding the percentage of customers who say they are likely to buy the concept to the percentage who say they are very likely to buy the concept, resulting in a two-score score.

Question 4

With regard to the go-to-market strategy component of the venture concept reality check it is important to uncover which of the following?
A) Discover the target customer's frequency of purchase
B) Find out the target customer's preferred place of purchase
C) Find out the target customer's preferred information channel
D) All the above

Accepted Answer

To effectively reach and sell to the target customer, it is important to uncover their purchasing frequency, preferred place of purchase, and preferred information channel. This information can then be used to tailor the go-to-market strategy to best reach and appeal to the target customer.

Question 5

If you wish to get potential customers' reactions to your prototype, what is the best way to do so?
A) Mail survey
B) Telephone survey
C) Personal interviews
D) None of the above

Accepted Answer

Personal interviews allow for a more in-depth and interactive discussion about the prototype, giving you the opportunity to ask follow-up questions and gauge nonverbal cues from the potential customers. This can provide valuable insights and feedback that may not be captured through a mail or telephone survey.

Question 6

You can generate data for your venture concept reality check via _______________.
A) personal interview
B) telephone interview
C) online surveys
D) All of the above

Accepted Answer

All of the above methods can be used to generate data for venture concept reality check. Personal interviews can provide in-depth information about customers' pain points and preferences. Telephone interviews can reach a larger number of people in a shorter amount of time. Online surveys can also reach a large audience and provide quantitative data. Using a combination of these methods can give a more complete picture of the market and help validate the venture concept.

Question 7

What do we call a venture that has started successfully, figured out its business model, and has expanded its customer base and product or service offerings?
A) A venture concept
B) A prototype
C) A scaled-up venture
D) An early startup

Accepted Answer

A venture that has started successfully, figured out its business model, and has expanded its customer base and product or service offerings is considered a scaled-up venture. This means that the business has achieved a level of success and growth that allows it to expand its operations and reach more customers, while also developing new products or services to meet the changing needs of its target market. A prototype is an early version of a product or service that is still being refined and tested, while a venture concept refers to the initial idea or concept for a new business. An early startup is a business that is still in the early stages of development and has not yet established a clear business model or customer base.

Question 8

With regard to the go-to-market strategy component of the venture concept reality check, which of the following is an important aspect of this investigation?
A) To determine if target customers agree with the intended channel strategy
B) To determine where target customers get their information about products/services like yours
C) Both A and B
D) Neither A nor B

Accepted Answer

Both A and B are important aspects of investigating the go-to-market strategy. It is important to determine if the intended channel strategy aligns with the preferences of target customers and to understand where target customers are likely to find information about products/services like yours. This information can help inform decisions about marketing and distribution channels.

Question 9

How can you gauge target customer purchase intent during the venture concept reality check?
A) Simply by asking if the target customer likes the concept
B) Simply by asking if the target customer is dissatisfied with existing alternatives
C) Simply by asking if the target customer is likely and/or very likely to purchase your presented concept
D) You cannot gauge the purchase intent with any of the above methods

Accepted Answer

The best way to gauge target customer purchase intent is by asking if they are likely and/or very likely to purchase the presented concept. This provides direct insight into whether or not the target customer would be willing to buy the product or service, and can help determine the viability of the venture. Simply asking if the target customer likes the concept or if they are dissatisfied with existing alternatives may provide some information, but does not directly address the purchase intent. Therefore, option C is the most effective approach.

Question 10

What is another key aspect of the venture concept reality check?
A) How target customers prefer to pay for your offering
B) What target customers are willing to pay
C) Both A and B
D) None of the

Accepted Answer

Both factors (how customers prefer to pay and what they are willing to pay) are important in determining the viability of a new venture concept. It is essential to know if customers will pay for your offering and how they prefer to pay, as this will impact your pricing strategy and payment methods. Neglecting these factors can lead to financial difficulties and failed ventures.

Question 11

Which of the following statements is true with regard to deciding the number of customers to target for the venture reality check?
A) You must select a large enough sample to be statistically significant
B) You should talk to at least 50 people
C) There is no magic number of potential customers with whom you should communicate
D) None of the above statements is true

Accepted Answer

The number of potential customers to target for the venture reality check is not a fixed number and depends on various factors such as the industry, product, and target market. It is important to talk to a diverse group of potential customers to gain insights and feedback. Therefore, there is no magic number of potential customers with whom you should communicate.

Question 12

Which data collection technique has the major advantage of enabling you to ask probing questions or see the reactions of the respondents to your venture concept reality check questions?
A) Mail surveys
B) Telephone interviews
C) Personal interviews
D) Online surveys

Accepted Answer

Personal interviews have the major advantage of enabling you to ask probing questions and see the reactions of the respondents to your venture concept reality check questions. In personal interviews, you can directly interact with the respondents and observe their reactions, which can provide valuable insights into their thoughts and perceptions. On the other hand, mail surveys, telephone interviews, and online surveys may not offer the same level of interaction and may limit your ability to ask follow-up questions or observe nonverbal cues.

Question 13

A customer-driven reality check can be used to:
A) Validate target customer preferences
B) Get a handle on key drivers for needed for financial projections
C) Validate competitive positioning
D) All of the above

Accepted Answer

A customer-driven reality check can help validate target customer preferences, get a handle on key drivers for financial projections, and validate competitive positioning. By talking to customers or potential customers, businesses can gather valuable insights that can inform their strategy and decision-making.

Question 14

Which of the following is a fatal mistake entrepreneurs can make when doing their venture concept reality check research?
A) Talking to too many target customers
B) Failing to talk to that magic number of 100 customers
C) Failing to gain target customer insight with regard to the go-to-market aspects of the venture
D) Failing to talk to all competitors

Accepted Answer

Failing to gain target customer insight with regard to the go-to-market aspects of the venture can lead to a fatal mistake as it can result in the venture not meeting the needs and preferences of the target customer or missing out on key aspects of the market. It is important to gain insights from target customers on not just the product or service, but also the marketing, distribution, and pricing strategies. Talking to too many or not enough target customers (choices A and B) or failing to talk to all competitors (choice D) can impact the research but may not be as fatal as not gaining insights on go-to-market aspects.

Question 15

What framework contains the target customer, the problem to be solved, the difference from competitive offerings, and the benefits that customers will expect?
A) A industry focus description
B) A venture concept summary statement
C) A positioning diagram for your venture
D) A business model framework for your venture

Accepted Answer

A venture concept summary statement typically outlines the target customer, the problem the venture aims to solve, how it differentiates from competitors, and the expected benefits for customers, making it the correct choice.

Question 16

When carrying out your venture concept reality check, where is the best place to engage your customers?
A) In the place where customers use the product
B) On a nearby street
C) Both places
D) Neither place

Accepted Answer

The best place to engage customers in a venture concept reality check is where they would use the product. This will allow you to observe their behavior and get direct feedback on the product's effectiveness and user experience. It is more effective than conducting surveys or interviews on the street, which may not accurately capture the customers' actual usage and preferences.

Question 17

Which of the following is very important to ascertain during your venture concept reality check process?
A) Customer satisfaction with existing solutions/alternatives
B) Whether customers perceive your solution as distinctive
C) Whether customers would be willing to pay more for your solution
D) All the above

Accepted Answer

All of these factors are important to consider during the venture concept reality check process. Customer satisfaction with existing solutions/alternatives will determine if there is a need for your solution. Whether customers perceive your solution as distinctive will determine if they will choose your solution over competitors. Whether customers would be willing to pay more for your solution will determine if your solution is financially viable.

Question 18

When conducting your venture concept reality check what is one thing you want to do?
A) Confirm target customers' core needs
B) Understand your target customers' attitudes
C) Understand your target customers' behaviors
D) All of the above

Accepted Answer

When conducting a venture concept reality check, it is important to confirm the target customers' core needs, understand their attitudes towards the product or service being offered, and analyze their behaviors. All of these factors are essential in determining the viability and potential success of a venture.

Question 19

Why might you find a gap between target customers' receptivity to buying a new venture's products or services and actually buying the products or services?
A) The concept sounded or looked better in the reality check compared to the reality in the marketplace
B) The concept was not demonstrated or communicated effectively to the target customer
C) The venture failed to execute effectively in the marketplace, including packaging and merchandising
D) All of the above could lead to this gap

Accepted Answer

All of the reasons listed could lead to a gap between target customers' receptivity to buying a new venture's products or services and actually buying the products or services. The concept may have been overhyped or poorly communicated, or the venture may have failed to execute effectively in the marketplace in terms of packaging and merchandising. All of these factors could contribute to a disconnect between the initial receptivity and actual sales.

Question 20

What is one of the big assumptions one makes when projecting revenue for the venture concept?
A) Assuming those who make an initial purchase will continue to be repeat purchasers
B) Assuming customers currently satisfied with existing alternatives will switch to your offering
C) Assuming those who make an initial purchase will not continue to be repeat purchasers
D) None of the above

Accepted Answer

Assuming that those who make an initial purchase will continue to be repeat purchasers is one of the big assumptions made when projecting revenue for a venture concept. This assumes that customers will be satisfied with the product or service and will continue to purchase it over time, leading to a recurring revenue stream for the business.

Quiz 7: A Reality Check on the Venture Concept and the Business Model

What should your venture concept summary statement address?

When do you "stop" talking to customers when gathering data on your venture concept reality check?

What does a classic "two-score score" in a venture concept reality check consists of?

With regard to the go-to-market strategy component of the venture concept reality check it is important to uncover which of the following?

If you wish to get potential customers' reactions to your prototype, what is the best way to do so?

You can generate data for your venture concept reality check via _______________.

What do we call a venture that has started successfully, figured out its business model, and has expanded its customer base and product or service offerings?

With regard to the go-to-market strategy component of the venture concept reality check, which of the following is an important aspect of this investigation?

How can you gauge target customer purchase intent during the venture concept reality check?

What is another key aspect of the venture concept reality check?

Which of the following statements is true with regard to deciding the number of customers to target for the venture reality check?

Which data collection technique has the major advantage of enabling you to ask probing questions or see the reactions of the respondents to your venture concept reality check questions?

A customer-driven reality check can be used to:

Which of the following is a fatal mistake entrepreneurs can make when doing their venture concept reality check research?

What framework contains the target customer, the problem to be solved, the difference from competitive offerings, and the benefits that customers will expect?

When carrying out your venture concept reality check, where is the best place to engage your customers?

Which of the following is very important to ascertain during your venture concept reality check process?

When conducting your venture concept reality check what is one thing you want to do?

Why might you find a gap between target customers' receptivity to buying a new venture's products or services and actually buying the products or services?

What is one of the big assumptions one makes when projecting revenue for the venture concept?