Test Questions & Answers Prototyping Your Ideas Chapter 4

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)
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)
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)

Multiple Choice

1. Introducing a new product or service involves substantial risk, and upwards of ___________ innovations fail, depending on industry. (pg. 103)
   1. 20 – 50%
   2. 40 – 70%
   3. 50 – 90%
   4. 60 – 90%
   5. 70 – 90%
2. What the entrepreneur believes to be the best attributes of his product and what the target customer believes are usually __________. (pg. 103)
   1. Very similar
   2. Very different
   3. Almost the same
   4. Somewhat different
   5. Similar but expressed differently
3. A prototype should answer vital questions about a product or service such as: (pg. 103)
   1. Does my target customer like my product?
   2. How may I alter my product to make it more attractive?
   3. How does my product compare to existing solutions?
   4. a and b
   5. All of the above
4. Some outcomes of prototyping are: (pg. 103)
   1. Gaining new insights about an entrepreneurial opportunity
   2. Demonstrate venture readiness to potential investors
   3. Shorter time-to-market
   4. a and c
   5. All of the above
5. Prototyping is the process of quickly putting together ___________. (pg. 103)
   1. Working models
   2. Tangible inventions
   3. Product designs
   4. An idea of a service
   5. 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)
   1. Mental modeling
   2. Innovation
   3. Product designing
   4. Serviceability
   5. Prototyping
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)
   1. Customers have all the answers about product faults
   2. The entrepreneur may instantly act on the feedback given
   3. The entrepreneur can compare his perception to that of his customers
   4. The feedback can later on be filtered
   5. Target customers opinions are most illuminating
8. Which are the steps of the prototyping process? (pg. 103)
   1. Learning & iterating, Analyzing feedback, Representing assumptions, and Testing assumptions
   2. Learning & iterating, Analyzing feedback, and Testing assumptions
   3. Learning & iterating, Representing assumptions, Testing assumptions
   4. Analyzing feedback, Representing assumptions, and Testing assumptions
   5. Learning & analyzing, Representing assumptions, and testing feedback
9. An assumption to be tested with a prototype could be: (pg. 103)
   1. Price
   2. Product benefits
   3. Product use
   4. a and b
   5. All of the above
10. Usually, new products and services require ____________ to develop before they are ready for the target market. (pg. 104)
    1. 1 month
    2. 1 or 2 prototypes
    3. Significant trial and error
    4. The feedback of at least 100 customers
    5. a and d
11. The most vital stage in the prototyping process is __________. (pg. 104)
    1. Learning & iterating
    2. Testing assumptions
    3. Representing assumptions
    4. Analyzing feedback
    5. All the stages are equally important
12. What type of prototype expresses roughly the product concept? (pg. 104)
    1. Low fidelity prototype
    2. High fidelity prototype
    3. Looks-like prototype
    4. Works-like prototype
    5. All prototype models, it is the whole point.
13. What type of prototype model looks and functions like the final product concept? (pg. 104)
    1. Low fidelity prototype
    2. High fidelity prototype
    3. Looks-like prototype
    4. Works-like prototype
    5. 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)
    1. Low fidelity prototype
    2. High fidelity prototype
    3. Looks-like prototype
    4. Works-like prototype
    5. All prototype models; that is the whole point
15. What type of prototype model aims to test the functionality of the product? (pg. 106)
    1. Low fidelity prototype
    2. High fidelity prototype
    3. Looks-like prototype
    4. Works-like prototype
    5. All prototype models; that is the whole point
16. ____________ is the representation of a concept using paper or cardboard, markers and tape. (pgs. 106-107)
    1. Low fidelity prototyping
    2. High fidelity prototyping
    3. Looks-like prototyping
    4. Paper prototyping
    5. Works-like prototyping
17. In recent years, the cost and complexity of 3D printing have _________. (pg. 107)
    1. Risen dramatically
    2. Fallen dramatically
    3. More or less remained equal
    4. Increased and fallen respectively
    5. Have fallen and increased respectively
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)
    1. Paper prototyping by adding different material pieces
    2. 3D printing
    3. Plastic/ceramic/metal line manufacturing
    4. Wood prototyping by adding different material pieces
    5. Magic prototyping
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)
    1. 10,000 and 50,0000
    2. 3,0000 and 6,000
    3. 1,000 and 5,000
    4. 500 and 1,000
    5. 200 and 700
20. While historically 3D printing has been for ____________ and ____________, increasingly 3D printing is becoming an ____________. (pg. 108)
    1. end manufacturing products, prototyping, model-making platform
    2. model-making, plastic prototyping, final prototyping platform
    3. paper prototyping, plastic prototyping, model-making platform
    4. prototyping, model-making, end manufacturing platform
    5. 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)
    1. Wood and plastic prototype
    2. Functional prototype
    3. Paper prototype
    4. Electronic prototype
    5. None of the above
22. The growth of online crowdfunding and pitch videos, which are central to crowdfunding campaigns, have highlighted the value of ___________. (pg. 110)
    1. Prototyping
    2. Raising money
    3. Final products
    4. 3D printing
    5. 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)
    1. Electronic
    2. Works-like
    3. Looks-like
    4. Paper
    5. None of the above
24. A well designed prototype conveys that the entrepreneur has thought through the __________ , going from ____________ to ____________. (pg. 110)
    1. Design plan, the idea, the final product
    2. Complete prototyping process, the idea, the final prototype
    3. Complete prototyping process, the idea, the final manufacture
    4. Production plan, the idea, the final manufacture
    5. None of the above
25. Production prototypes assist in the _______ planning of production. (pg. 111)
    1. Early
    2. Final
    3. Prototype
    4. Financial
    5. All of the above
26. Production prototypes consider if the product has been designed, for example, to ____________, ____________, and ___________. (pg. 111)
    1. Minimize the number of parts, chances of product failure, and production costs.
    2. Maximize the number of components, chances of product failure, and revenues.
    3. Minimize the number of components, success rate, and cost of capital.
    4. Minimize the number of parts, attractiveness of the product, and production costs.
    5. None of the above
27. Often it is more useful to _____________ your prototype in order to discover unexpected opportunities. (pg. 111)
    1. Independently design
    2. Self-assess
    3. Co-create with the target audience
    4. Co-assess with the target audience
    5. a and d
28. In co-creation, target customers are engaged _______ and ________ in the process of idea generation and product development. (pg. 111)
    1. Late, conclusively
    2. Early, as observers
    3. Early, continuously
    4. As observers, listeners
    5. None of the above
29. When prototyping a service, a ____________ prototype might be offering a simulation of how a service is performed. (pg. 112)
    1. Wire frame
    2. Looks-like
    3. Works-like
    4. 3D
    5. b and c
30. Entrepreneurs should _____________ to develop a new product when exploring a venture idea. (pg. 112)
    1. Focus on raising money
    2. Resist the temptation
    3. Save all their strength
    4. Immediately try
    5. d and a
31. Developing fully-created products when exploring a new venture is usually __________, _____________ and ____________. (pg. 112)
    1. Productive, enlightening, costly
    2. Productive, enlightening, profitable
    3. Time-consuming, costly, more enlightening than prototyping
    4. Time-consuming, costly, extremely risky
    5. Productive, costly, extremely risky
32. As an output of the prototyping process, many entrepreneurs aim to develop a ___________, one that drives early engagement and rapid learning with customers. (pg. 113)
    1. Minimum viable product
    2. Final complete product
    3. Paper prototype
    4. Look-like prototype
    5. None of the above
33. Developing and testing a Minimum Viable Product (MVP) focuses on ______________ first, and then in _________________. (pg. 113)
    1. Product development, customer engagement
    2. Customer engagement, product development
    3. Customer development, product design
    4. Product design, product functionality
    5. Product development, profitability
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)
    1. The highest risk, minimize
    2. The lowest ROI risk, maximize
    3. The highest ROI risk, maximize
    4. The highest ROI risk, minimize
    5. None of the above

Open Ended

1. Name some advantages of prototyping instead of building a final product right away. (pg. 103)
   • Considering that 50 – 90% of new products fail, by prototyping you can reduce your risk.
   • There is usually a large gap between what the entrepreneur believes is valuable and what the target customer perceives, therefore, prototyping is helpful to obtain feedback directly from the customer.
   • Prototyping can lead to new insights of entrepreneurial opportunities
   • Prototyping can signal venture readiness to investors
   • Because almost all new products and services require significant trial and error to develop before they are ready for the target market.
   • Prototyping is tremendously important in the move to commit to a final product design and to consider the costs and methods of manufacturing.
2. What are some of the questions that can be answered through prototyping? (pg. 103)
   • Does my target customer want the new product I propose creating?
   • How might I alter the product or service to make it more attractive to my target market?
   • And how does my proposed innovation compare against existing solutions in the marketplace?
3. What is prototyping and how does it help the entrepreneur? (pg. 103)
   • Prototyping is the process of quickly putting together working models in order to represent ideas, test various aspects of a design, and gather early customer feedback.
   • Prototyping can help entrepreneurs develop, test and refine their entrepreneurial idea, ideally resulting in the confirmation of an entrepreneurial opportunity.
   • The core purpose of the prototyping process and developing a prototype is to get a response from a target customer or user.
4. Why is it helpful for an entrepreneur to get direct responses from the target customer? (pg. 103)
   • Its feedback which can be acted on.
   • Taken together, responses from many potential customers can help an entrepreneur decide what directions to pursue or not pursue with a new innovation or venture.
   • The prototyping process forces the entrepreneur to get out in the field and engage potential customers, all with the intent of learning and iterating rapidly.
5. What are the three steps of the prototyping process? Explain them and give an example. (pgs. 103-104)
   • The prototyping process focuses on the representation and testing of assumptions, ultimately to drive deeper learning about an entrepreneurial opportunity.
   • Representing assumptions, is embodying the product or simulating a service. The objective is to Test the assumptions directly with the target market with the prototype or service simulation, and consequently Learn about the real preferences of the customers and Iterate by creating an improved version of the prototype in order to test it again and obtain a better acceptance from customers. The process of representing and then testing assumptions is meant to be repeated many times (with the target market) to drive deeper learning and uncover unexpected insights.
   • For example, an automobile manufacturer such as Ford, long before finalizing its design for a new minivan, will show its target customers (e.g., fathers and mothers who have children) prototypes to seek detailed feedback. The parents might be shown a table-sized model of the minivan to see if they appreciate its exterior styling. Similarly, they might be asked to try out a new design for a flip-down/flip-up seating system to make moving large items easier. They might be shown detailed images of a novel dashboard design and be asked to offer critiques.
6. What are some of the assumptions that an entrepreneur can test with a prototype? (pg. 104)
   • Variables to test can range from pricing assumptions to assumptions about product benefits and product use, as well as how a new product concept stacks up against existing competition.
   • You can test the design and the functionality as well, together or separately.
7. Explain what the Low-fidelity and high-fidelity prototypes are and their use. (pg. 104)
   • The prototyping process often involves the creation of not one but several prototypes to explore a potential entrepreneurial opportunity. Some models are referred to as low 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.
   • Works-like prototype operates like the final intended product design – demonstrating product functionality or usability – but often does not appear at all like the end product.
   • In developing and testing new product concepts, it is wise to seek feedback on both works-like and looks-like prototypes, which collectively suggest the desirability of the end product design.
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.
   • In 3D printing, a 3D object is printed, for example in plastic, from a digital file. Working independently or with support from a 3D designer, an entrepreneur can mock-up looks-like and even works-like prototypes to share with target customers. While historically 3D printing has been for prototyping and model-making, increasingly 3D printing is becoming an end manufacturing platform where entrepreneurs can produce (i.e., print) their own final products for sale.
10. Explain the relation between prototyping and funding. (pg. 110)
    • Prototyping can signal venture readiness to investors
    • The growth of online crowdfunding and pitch videos, which are central to crowdfunding campaigns, have highlighted the value of prototypes in securing funding for a project or venture.
    • 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.
    • To demonstrate a new product and its benefits, creators of crowdfunding campaigns often must develop and feature looks-like prototype to convey not only their creative vision but also to signal their professionalism and dedication to their project.
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 but also to discover unexpected entrepreneurial opportunities. This idea of customer engagement is at the center of the product design process, where product concepts are ‘co-created’ with target customers.
    • In co-creation, target customers are engaged early and continuously in the process of idea generation and product development.
    • Best practices in co-creation are to involve target customers in problem/need clarification, idea generation, early prototyping, late prototyping and even market strategy/market planning.
12. How does an entrepreneur make prototypes of services? Give some examples. (pg. 112)
    • In fact, many ventures provide a mix of products and services, so there is much that can be prototyped to explore and shape an entrepreneurial opportunity. A works-like prototype might be offering a simulation of how a service is performed
    • A plumbing company wishing to experiment with a new 30-minute ‘arrival guarantee’ for plumbing emergencies can set aside a plumber for rapid response to test the desirability of this new service.
    • An entrepreneur with a new pickup-and-delivery concept for a dry cleaner can first experiment with just the pickup-and-delivery aspect of the service without building and operating an entire cleaning operation. For example, an existing dry cleaner/cleaning operation can be used to do the cleaning itself.
13. Explain what is a Minimum Viable Product (MVP) and its purpose. (pg. 113)
    • 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.