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1 Feedback Assignment 4: Customer analysis You submitted this quiz on Sat 19 Apr :25 AM MYT. You got a score of out of Question 1 When developing a new product, it is necessary to meet every customer desire. True False Total / As customers' desires typically extend beyond what they are willing to pay for, you do not need to meet every customer need imaginable. Instead, focus on the products and services you can create and launch successfully in a financially sound approach.

2 Question 2 Within the product design and development decisions, successful entrepreneurs create multiple products simultaneously that are uniquely positioned for every potential market segment. True False Total / Beware of producing multiple products and over segmentation. Each segmentation alone might be too small to justify the cost of developing a product to serve it alone. You may also not have the marketing budget to effectively capture the necessary market share needed across these multiple market segments. Instead, develop one (or a small) number of products for a specific segment, demonstrate success and generate revenues, and then invest in expanding into new markets and segments. Question 3 It is smart to set your pricing significantly lower than competitors' prices in an effort to capture market share and achieve your revenue goals quickly.

3 True False Total / When you introduce a new product you should be mindful of the price of competing products. If offering a comparable level of features, you may effectively price your product just under the price of competitors due to their brand advantage and existing market position. However, pricing "significantly" lower than competitors is problematic. Not only does this dramatically increases the volume of sales that you need to reach your revenue and profit goals, it may signal to potential customers that you are offering significantly lesser product in terms of quality, features, durability, etc. (if your price is significantly less than competitors). Question 4 Strategic planning requires near-term commitment for long-term benefits.

4 True False Total / While the the time required of entrepreneurs to develop thoughtful strategic plans is extensive, this is time well invested. Strategic planning improves the chances that entrepreneurs are spending their time and money smartly, and that intended and unintended consequences have been considered. Question 5 What factors may make it economically unattractive to produce your anticipated product or service? Choose all that apply. Designing the product for a market niche that is too small to generate the desired revenue goals of your company Correct 0.60 Over-designing the product to the point where the price is beyond your customer Correct 0.60

5 Agreeing to minimum production volume requirements that exceed your ability to pay for the production costs and invest in marketing appropriately Correct 0.60 Total / All of the stated factors over-designing the product to the point that the price is beyond your customer: (1) over-designing the product to the point that the price is beyond your customer, (2) agreeing to minimum production volume requirements that exceed your ability to pay for the production costs and invest in marketing appropriately, and (3) designing the product for a market niche that is too small to generate the desired revenue goals of your company. Question 6 Discuss common pitfalls that entrepreneurs experience in selecting which ideas to develop into new ventures. Please respond in one paragraph. Answer for Question 6 You entered:

6 1. Misunderstanding industry attractiveness There is no or lack of entrepreneurial opportunities. 2. No real competitive advantage Not bring anything new to the table(i.e current industry market) 3. Pursuing an unattainable competitive position Trying to service too many segments or trying to do too many things. 4. Compromising strategy for growth Cash Cow mentality instead of looking for growth and expansion opportunities. 5. Failure to explicitly communicate the venture's strategy to employees. Workers are unable to execute strategy plan thus making it totally useless. Incorrect 0.00 Total 0.00 / Common pitfalls that entrepreneurs experience in selecting which ideas to develop into new ventures include lack of objective evaluation, limited knowledge and insight into the market, inadequate understanding of technical requirements, poor financial understanding, lack of product uniqueness, unfamiliarity with legal issues, and poorly constituted team. Question 7 Discuss four types of macro changes that increase new venture opportunities. Please respond in one to two paragraphs. Answer for Question 7 You entered:

7 1.Technological Change important trigger for new entrepreneurial opportunities especially currently. Some e.g include Social Media, Computer Processing powers and prices, Smartphones, Software programming for web and mobile apps, Internet Speed Revolution etc. 2.Social and Demographic Change Eg. in American it is an aging population therefore more aged centric technology is being developed and successfully brought to market. 3.Psychological Change Terrorism leads to more security measures at home. Another would be Cyber security and security of personal data from hackers since quite a significant portion of monetary transactions are now done online. 4.Political & Regulatory Change Basically the deregulation of markets e.g. Power and Telecom Industries. Another would be grants and tax incentives for implementation of new technology. Eg. Renewable Energy Technology i.e Electric Cars and Solar Power etc. Total / Technological change is one of the most important triggers of change, because new technology allows for the expansion of new innovations. Social and demographic change opens up opportunities by altering people s preferences and creating demand for things where demand had not existed before. Industry structure change impacts the nature of barriers to entry and the competitive dynamics in an industry. Political and regulatory change can also increase new venture opportunities.

8 Question 8 What questions should you consider in determining how to produce the product for your venture? Please write three questions. Answer for Question 8 You entered: 1. Is there a significantly better way of solving a customer's problem than existing products and services? 2. Do customers have an unresolved problem? 3. Is there a way to introduce a sustainability better price for customers? Total / Fundamental questions to consider in determining how to produce the product for your venture include: How will the product be made? Will it be produced in-house or by others? At what cost? What is the present capacity of the producer? What is the break-even point?

9 Question 9 What demographic and psychographic changes are creating new market needs in business areas that interest you? Please respond in one paragraph. Answer for Question 9 You entered: For me personally i am targeting my own generation [Gen Y] and the Gen next after because they are such a tech-savvy generation. This is allowing the proliferation of coding of new web and mobile apps to better everyday life, making it more convenient and efficient. Further due partly to the proliferation of new technologies there is rise in need for cyber security especially focus on protection of personal and corporate data. There is opportunity for hacking and security defense. Total /

10 Question 10 What technical advancements, political changes, and/or regulatory changes are creating new market opportunities in business areas that interest you? Please respond in one paragraph. Answer for Question 10 You entered: Technical Advancements - Internet Speeds getting faster and faster - Smartphones and other device becoming more powerful and portable - Ease of coding for new web and mobile apps. - Internet & Social Network makes for global market Political Changes - Globalization; more countries doing business with each other - Grants and Incentives for implementation of new technologies for benefit of the society. Total /