Chapter 4 Questions
True/False
1. Innovation is often at the heart of entrepreneurship. (pg. 102)
2. Introducing a new product or service involves substantial risk and numerous innovations fail.
(pg. 103)
3. The entrepreneur’s perception of his/her product will be similar to that of the target customer.
(pg. 103)
4. An entrepreneur must possess special technical skills necessary to create the appropriate
prototype, otherwise the testing of the product won’t be insightful. (pg. 103)
5. When prototyping, the entrepreneur must make notes about any changes or alterations to the
product or service that the customer may propose. (pg. 103)
6. Prototyping can signal venture readiness to potential investors. (pg. 103)
7. Prototyping will probably prolong the time-to-market, but is still worth it. (pg. 103)
8. Prototyping is the process of putting together working models in order to present ideas, test
aspects of design, and gather early customer feedback. The more time and care you take to
build the prototype, the better. (pg. 103)
9. The core purpose of prototyping is to get feedback which can be acted on. (pg. 103)
10. Prototyping is helpful for testing products and services. (pg. 103)
11. The prototyping process forces the entrepreneur to get out in the field and engage potential
customers. (pg. 103)
12. The prototyping process focuses on the representation of the proposed product or service and
testing assumptions about the product or service. (pg. 103)
13. The prototyping process usually involves the creation of a maximum of two prototypes which is
important if you want to control your expenses. (pg. 103)
14. Products that fail in the marketplace are generally based on incorrect assumptions about what
the target market values. (pg. 103)
15. Feedback from many potential customers will only confuse the entrepreneur, so prototyping
must be done discretely. The fewer people testing the prototype, the better. (pg. 104)
16. Almost all new products require significant trial and error in developing the final version before
they are ready for the market. (pg. 104)
17. The most vital stage in the prototyping process is “Testing Assumptions” because it is where you
get the most information. (pg. 104)
18. The most challenging aspect about the prototyping process is to quickly learn and then develop
additional prototypes based on customer feedback. (pg. 104)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
(True)
19. Low fidelity prototypes express the rough product concept. (pg. 104)
20. The purpose of high fidelity prototyping is to get ideas out rapidly. (pg. 104)
21. Generally, entrepreneurs move from one low fidelity prototype into several high fidelity
prototypes because more testing has to happen to understand highly customized details. (pg.
104)
22. Different prototypes may emphasize different product elements in order to confirm a final
product design. (104)
23. “Looks-like” prototypes are valuable to test market acceptance of the functionality of the
product. (pgs. 105-106)
24. “Works-like” prototypes are valuable to test the market acceptance of the design of the
product. (pg. 106)
25. Presenting a “Looks–like” prototype to the customer is challenging because it demands the
customer to imagine the functionality of the product. (pg. 106)
26. It is foolish to jump from an idea or concept straight to a final product design. (pg. 106)
27. A paper prototype can help an entrepreneur consider different design configurations and
tradeoffs with the product, particularly before higher‐cost prototyping methods are used. (pg.
107)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
(True)
28. A paper prototype is a type of “additive manufacturing,” where a medium, such as plastic,
ceramic, or even metal, is extruded through a computer‐controlled tool head, which lays down
the medium in layers, thus building up a paper prototype. (pg. 107)
29. 3D printing is a great way of making a prototype, the only problem is that you have to purchase
the printer and it is expensive. (pg. 108)
30. If you want to test an electronic product, you are going to have to build a version of the final
product completely. (pg. 109)
31. Prototyping demonstrated commitment and will contribute substantially to securing funding.
(pg. 110)
32. In rewards‐based crowdfunding, backers financially support a new product campaign often
before the final product has been produced or sometimes even before a final product design
has been chosen. (pg. 110)
33. It is more useful to design a prototype alongside your target customers in order to leverage “co–
creation.” (pg. 111)
34. In “co-creation,” target customers are engaged with the objective of defining final specifications
of the product or service being tested. (pg. 111)
35. Simulations are a great way to prototype services. (pg. 112)
36. A “minimum viable product” (MVP) is a version of a new product concept which allows a team
to collect the maximum amount of feedback with the least effort. (pg. 113)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
(True)
Multiple Choice
1. Introducing a new product or service involves substantial risk, and upwards of ___________
innovations fail, depending on industry. (pg. 103)
2. What the entrepreneur believes to be the best attributes of his product and what the target
customer believes are usually __________. (pg. 103)
3. A prototype should answer vital questions about a product or service such as: (pg. 103)
4. Some outcomes of prototyping are: (pg. 103)
a. Gaining new insights about an entrepreneurial opportunity
b. Demonstrate venture readiness to potential investors
c. Shorter time-to-market
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
d. a and c
e. All of the above
5. Prototyping is the process of quickly putting together ___________. (pg. 103)
e. A paper prototype
6. ______ is the process of quickly putting together working models to represent ideas, test
various aspects of a design, and gather early customer feedback. (pg. 103)
7. The core purpose of the prototyping process and developing a prototype is to get a response
from a target customer. This is important mainly because ____________. (pg. 103)
8. Which are the steps of the prototyping process? (pg. 103)
a. Learning & iterating, Analyzing feedback, Representing assumptions, and Testing
assumptions
b. Learning & iterating, Analyzing feedback, and Testing assumptions
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
c. Learning & iterating, Representing assumptions, Testing assumptions
d. Analyzing feedback, Representing assumptions, and Testing assumptions
e. Learning & analyzing, Representing assumptions, and testing feedback
9. An assumption to be tested with a prototype could be: (pg. 103)
10. Usually, new products and services require ____________ to develop before they are ready for
the target market. (pg. 104)
11. The most vital stage in the prototyping process is __________. (pg. 104)
e. All the stages are equally important
12. What type of prototype expresses roughly the product concept? (pg. 104)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
c. Looks-like prototype
d. Works-like prototype
e. All prototype models, it is the whole point.
13. What type of prototype model looks and functions like the final product concept? (pg. 104)
e. All prototype models, it is the whole point.
14. What type of prototype model aims to simply test the design of the product? (pgs. 105–106)
15. What type of prototype model aims to test the functionality of the product? (pg. 106)
16. ____________ is the representation of a concept using paper or cardboard, markers and tape.
(pgs. 106-107)
a. Low fidelity prototyping
b. High fidelity prototyping
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
c. Looks-like prototyping
d. Paper prototyping
e. Works-like prototyping
17. In recent years, the cost and complexity of 3D printing have _________. (pg. 107)
18. __________ is a type of ‘additive manufacturing’ where a medium, such as plastic, ceramic, or
metal, is extruded through a computer-controlled tool head which lays down the medium in
layers thus building up a real life product of three dimensions. (pg. 107)
19. Currently in the market you can purchase a 3D printer for between $________ and $_________
which could print in an array of plastic types and colors. (pg. 108)
20. While historically 3D printing has been for ____________ and ____________, increasingly 3D
printing is becoming an ____________. (pg. 108)
a. end manufacturing products, prototyping, model-making platform
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
b. model-making, plastic prototyping, final prototyping platform
c. paper prototyping, plastic prototyping, model-making platform
d. prototyping, model-making, end manufacturing platform
e. design prototyping, final products, functional prototyping platform
21. Chances are, that before you build a 3D printing prototype, it makes more sense to build a
_____________, which can address many questions quickly and efficiently. (pg. 109)
22. The growth of online crowdfunding and pitch videos, which are central to crowdfunding
campaigns, have highlighted the value of ___________. (pg. 110)
e. None of the above
23. To demonstrate a new product, creators of crowdfunding campaigns often must develop and
feature ________ prototypes to convey not only their creative vision but their commitment. (pg.
110)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
24. A well designed prototype conveys that the entrepreneur has thought through the __________ ,
going from ____________ to ____________. (pg. 110)
25. Production prototypes assist in the _______ planning of production. (pg. 111)
26. Production prototypes consider if the product has been designed, for example, to
____________, ____________, and ___________. (pg. 111)
e. None of the above
27. Often it is more useful to _____________ your prototype in order to discover unexpected
opportunities. (pg. 111)
a. Independently design
b. Self-assess
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
28. In co-creation, target customers are engaged _______ and ________ in the process of idea
generation and product development. (pg. 111)
29. When prototyping a service, a ____________ prototype might be offering a simulation of how a
service is performed. (pg. 112)
30. Entrepreneurs should _____________ to develop a new product when exploring a venture idea.
(pg. 112)
e. d and a
31. Developing fully-created products when exploring a new venture is usually __________,
_____________ and ____________. (pg. 112)
32. As an output of the prototyping process, many entrepreneurs aim to develop a ___________,
e. None of the above
33. Developing and testing a Minimum Viable Product (MVP) focuses on ______________ first, and
then in _________________. (pg. 113)
34. A Minimum Viable Product (MVP) can be viewed as the product with _____________ as it seeks
to ______________ the information learned about the customer per dollar spent. (pg. 113)
a. The highest risk, minimize
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
b. The lowest ROI risk, maximize
c. The highest ROI risk, maximize
d. The highest ROI risk, minimize
e. None of the above
Open Ended
1. Name some advantages of prototyping instead of building a final product right away. (pg. 103)
2. What are some of the questions that can be answered through prototyping? (pg. 103)
3. What is prototyping and how does it help the entrepreneur? (pg. 103)
4. Why is it helpful for an entrepreneur to get direct responses from the target customer? (pg.
5. What are the three steps of the prototyping process? Explain them and give an example. (pgs.
6. What are some of the assumptions that an entrepreneur can test with a prototype? (pg. 104)
7. Explain what the Low-fidelity and high-fidelity prototypes are and their use. (pg. 104)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
fidelity prototypes because the prototype expresses the rough product concept, either
in two-dimensional or three-dimensional form, often in material as basic a paper. The
purpose of low fidelity prototyping is for the entrepreneur to get ideas out rapidly and
to see how potential customers and different stakeholders react. With a new product
concept, even low fidelity, or rough prototypes can help confirm desirable, as well as
undesirable product characteristics (e.g., forms, colors, benefits and features).
• High fidelity prototypes are designed to look like a final completed product concept.
Here, the aim is to represent final, detailed assumptions about the product (e.g., the
final materials and production process) and even potentially use the prototype in
promotion to customers, partners or investors.
8. Explain what the looks-like and works-like prototypes are and their use. (pgs. 105-106)
• A looks-like prototype, as suggested by its name, appears similar or identical to a final
product but does not function as the final product is expected to. For instance, a looks–
like prototype of a new consumer electronic would have the outer appearance of the
device but would not include the electronics and power source of the final, produced
product. Looks-like prototypes are valuable to test market acceptance of a design
before costly, detailed product development is started.
9. Explain what are paper prototypes and 3D printing and their use. (pgs. 106-108)
• Paper prototyping is the representation of a concept using simple materials such as
paper or cardboard, markers and tape. Quick and directionally correct is the objective,
not perfection! The goal is to get the basic idea out into the world to get a response
from a target customer and to explore what is valuable to the target customer—and to
see if there is a real willingness to pay.
10. Explain the relation between prototyping and funding. (pg. 110)
• Prototyping can signal venture readiness to investors
11. Explain the concept of Co-creation, its importance, and name some best practices. (pg. 111)
• To design with, meaning alongside, your target audience to not only validate their needs
12. How does an entrepreneur make prototypes of services? Give some examples. (pg. 112)
13. Explain what is a Minimum Viable Product (MVP) and its purpose. (pg. 113)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley.
• Eric Reis defines a minimum viable product as that version of a new product concept
which allows a team to collect the maximum amount of validated learning about
customers with the least effort.
• The minimum viable product can be one that is developed ‘just enough’ to seek
customers’ feedback.
• Some view the MVP as a more work-like prototype.
• The purpose of developing an MVP is for an entrepreneur to rapidly screen out – or
reconfigure – a product or service concept. It is a market testing strategy that is used to
evaluate product ideas very soon after their generation.