Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
49. Which of the following is true about a multisided market?
a. the CVP is tailored to meet particular needs of a small market segment compromising
customers with specific needs and requirements
b. the market is dependent on two disctinct segments in order to be successful
c. the market comprimises a large group of customers with very similar needs and
problems
d. it offers a variety of services to serve two or more customer segments with different
needs and problems, which bear no relationship to each other
50. Which of the following is most likely to have a diversified market?
a. a hardward store that sells to contractors and non-professionals
b. a dollar store that promotes its low prices
c. a pet store that offers both supplies and small animals
d. a retail shop that sells goods aimed at expectant mothers and at babies
51. Under the business model canvas (BMC), what is covered under the offering?
a. the value proposition and customer segments
b. customer segments
c. the value proposition
d. customer segments and channels
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
52. Under the business model canvas (BMC), what components are related to
customers?
a. customer segments, channels, and customer relationships
b. customer segments and value proposition
c. customer segments and key activities
d. customer segments and channels only
53. Under the business model canvas (BMC), what components are related to
infrastructure?
a. organizational design, facilities, key resources
b. key assets, key resources, organization
c. key activities, key resources, key partners
d. computers, organization design, facilities
54. Under the business model canvas (BMC), what components are related to financial
viability?
a. revenue streams and market size
b. cost structure and revenue streams
c. investment funds and revenue streams
d. revenue streams and growth projections
55. The answer to the question, “What are the different ways I can reach my customer?”
will result in what element of the BMC?
a. market segment
b. channels
c. value proposition
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
d. customer segment
56. Which of the following BMC element refers to building positive feelings about your
business and customer loyalty?
a. value proposition
b. customer relationships
c. market segmentation
d. customer loyalty plans
57. In Southwest’s BMC, the company decided to fly only one type of aircraft. What
element of the BMC did this address and what was the effect?
a. resources; it affected the key activities required to repair and maintain the aircraft
b. resources; it affected customers
c. key activities; it resulted in reduced customer relationships
d. key activities; it resulted in the value proposition
58. What is the right side of the BMC focused on?
a. value delivery
b. value creation
c. idea generation
d. the value proposition
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
59. Uber and Airbnb both ______.
a. have the same key partners
b. use peer-to-peer business models
c. provide a unique service
d. use traditional business models
60. What is the left side of the BMC focused on?
a. value delivery
b. value creation
c. idea generation
d. the value proposition
61. Jerry has listed that his business appeals to people 50 years and older who are
restructuring their finances for retirement plans. What has Jerry defined?
a. a niche market
b. a segmented market
c. a mass market
d. a diversified market
62. A type of CVP that describes why people will really like your product and focuses on
the customers and what they really need and value is the ______.
a. resonating-focus approach
b. points-of-difference approach
c. all-benefits approach
d. customer satisfaction approach
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
63. Danielle will be offering a tool sharpening service at her garden and landscaping
store on the first Tuesday of every month. She believe that this is a need of her
customers, and they will help spread the word about her location and services. Which of
the following BMC elements is Danielle addressing?
a. value proposition
b. customer relationships
c. market segmentation
d. customer loyalty plans
64. General Motors advertised an “automobile for all ages.” By this, what market was
General Motors addressing?
a. a target market
b. a niche market
c. a mass market
d. a diversified market
65. The ______ approach to CVP involves identifying and promoting all the benefits of
your product or service relative to the competition and recognizes your offering is
unique and different from others in the market.
a. all-benefits
b. points-of-difference
c. resonating-focus
d. product-market fit
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
66. In a peer-to-peer business model, ______.
a. businesses sell products that are unique to a limited number of peer customers
b. products and services are better than traditional services
c. distribution occurs in a different way from traditional services
d. interactions are business to business
67. A type of approach that focuses on the product or service relative to the competition
and how the offering is different from others on the market is known as the ______.
a. resonating-focus approach
b. points-of-difference approach
c. all-benefits approach
d. customer satisfaction approach
68. What is the main problem SolarCity is solving by devising solar programs that can
be accessible to entire communities?
a. lack of time
b. lack of money
c. lack of skills
d. lack of access
69. When determining your revenue stream, what question should you ask yourself?
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
a. How do I establish and maintain relationships with customers?
b. How much are my customers willing to pay?
c. What are the most important costs inherent in the business model?
d. What resources are the most expensive to get?
70. When determining your cost structure, what question should you ask yourself?
a. How do I establish and maintain relationships with customers?
b. How much are my customers willing to pay?
c. What activities can be outsourced?
d. What resources are the most expensive to get?
True/False
1. Business models must be changed whenever a company launches a new product or
service.
2. The business model of an entrepreneur must be flexible in order to respond to new
information.
3. Entrepreneurs should try to address every potential customer in a market.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
4. The infrastructure of the business model does not identify people only technology and
facilities.
5. To have an effective CVP for your business plan, it must offer better value than the
competition.
6. A diversified market offers a variety of service to two or more customer segments
with different needs and problems.
7. The resonating-focus approach is the “gold standard” because it considers your
product or service from the perspective of the customer.
8. Amazon serves a diversified market because it has multiple products and services
that serve several unrelated groups of customers.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
9. Multisided markets describes a variety of services that serve two or more segments
with very different needs or problems.
10. Coke and Pepsi are examples of companies that address the mass market.
11. Blackberry and Kodak are examples of companies who were able to successfully
change their business models in order to adapt to changes in the market.
12. Procter & Gamble didn’t need to change its business model to accommodate the
success of the Swiffer brand because it fit squarely with its existing model.
13. The business model is just about revenue and costs.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
14. The all-benefits approach is the most impactful approach for creating a value
proposition because of its large focus on the product.
15. There are 10 components of the business model canvas.
Essay
1. Consider the business models of Amazon.com. Describe two of its business models.
2. Define the market segment targeted by Facebook. Describe how that segment may
or may not be the same as originally planned.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
3. Identify the customer value proposition of your local cable company.
4. Pick a product that you use every day. Describe the customer segment or segments
this product would appeal to.
5. Consider the manufacturer of a solar lighting system. Identify who the key partners
might be. Could some activities be outsourced? Who would you negotiate with to modify
your BMC?
6. Explain why a shopping center is an example of a multisided market.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
7. Select a shopping mall of your choosing. Define a CVP for at least two market
segments.
8. Consider that you are selling a Jeep SUV to a customer. Identify the key points in an
all-benefits approach to CVP.
9. Consider that you are selling a Jeep SUV to a customer. Identify the key points in a
resonating-focus approach.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
10. Consider the online store, Amazon.com. Describe some of the ways that the store’s
BMC achieves customer relationship.
11. Define the business model and identify the four core areas of a business model.
12. Explore the importance of the CVP in further detail.
13. Describe the different types of Customer Value Propositions and how to identify
your target customers.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
14. Identify all the components of the business model canvas.
15. Explain the differences among the following markets: niche market, segmented
market, diversified market, and multisided market.