Textbook

Question 1

A bare-bones offering that allows entrepreneurs and product developers to collect customer feedback and to validate concepts and assumptions that underlie a business idea.

Answer 1

MVP

Question 2

A systems development method in which requirements and solutions rapidly and iteratively evolve through collaboration between self-organizing, cross-functional teams, rather than a top-down, centrally-managed, schedule-driven approach.

Answer 2

agile software development

Question 3

Positive influence created when someone finds out that others are doing something.

Answer 3

earned media

Question 4

A software development approach where an organization’s developers release products, features, and updates in shorter cycles, when ready, rather than wait for centrally-managed delivery schedules.

Answer 4

continuous deployment

Question 5

A bare-bones offering that allows entrepreneurs and product developers to collect customer feedback and to validate concepts and assumptions that underlie a business idea.

Answer 5

minimum viable product

Question 6

A key concept in entrepreneurship and new product development that conveys the degree to which a product satisfies market demand. Successful efforts should be desired by customers, and scale into large, profitable businesses.

Answer 6

product/market fit

Question 7

Pricing that shifts over time (also known as dynamic pricing), usually based on conditions that change demand (e.g. charging more for high-demand items with limited availability).

Answer 7

demand pricing

Question 8

The amount of money a firm spends to convince a customer to buy (or in the case of free products, try or use) a product or service.

Answer 8

customer acquisition costs

Question 9

The rate at which consumers leave a product or service.

Answer 9

churn rate

Question 10

Refers to efforts where an organization pays to leverage a channel or promote a message. Paid media efforts include things such as advertisement and sponsorships.

Answer 10

paid media

Question 11

Altering a product offering, business model, or target market in hopes that the change will lead to a viable business.

Answer 11

pivot

Question 12

The value of future cash flows discounted into today’s dollars (it is discounted because a dollar today should be worth more in the future assuming inflation or the potential to earn money on the dollar if it is invested).

Answer 12

net present value

Question 13

Positive influence created when someone finds out that others are doing something.

Answer 13

social proof

Question 14

Sometimes abbreviated as CLV, CLTV, or LTV. Refers to the current value of future profits that will accrue from acquired customers. CLV = NPV (future customer profits).

Answer 14

customer lifetime value

Question 15

In software development (sometimes also called project fork). When developers start with a copy of a project’s program source code, but modify it, creating a distinct and separate product from the original base.

Answer 15

fork

Question 16

Exists when a firm’s potential partners see that firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors.

Answer 16

channel conflict

Question 17

Money owed for products and services purchased on credit.

Answer 17

account payable

Question 18

A classification of software that monitors trends among customers and uses this data to personalize an individual customer’s experience.

Answer 18

collaborative-filtering

Question 19

The number of times inventory is sold or used during a specific period (such as a year or quarter). A higher figure means a firm is selling products quickly.

Answer 19

inventory turns

Question 20

Marketing practice where a firm rewards partners (affiliates) who bring in new business, often with a percentage of any resulting sales.

Answer 20

affiliate marketing program

Question 21

Problems that arise when organizations cannot easily convert assets to cash. Cash is considered the most liquid asset—that is, the most widely accepted with a value understood by all.

Answer 21

liquidity problems

Question 22

A line of identifying text assigned and retrieved by a given Web server and stored by your browser.

Answer 22

cookie

Question 23

Offering deep discounts of a limited quantity of inventory. Flash sales often run for a fixed period or until inventory is completely depleted. Players include Guilt Groupe and Amazon’s MyHabit in fashion, and OneKingsLane in home décor.

Answer 23

flash-sales

Question 24

Pricing that shifts over time, usually based on conditions that change demand (e.g., charging more for scarce items).

Answer 24

dynamic pricing

Question 25

Products or services that get more valuable as two distinct categories of participants expand (e.g., buyers and sellers).

Answer 25

two-sided network effect

Question 26

Period between distributing cash and collecting funds associated with a given operation (e.g., sales).

Answer 26

cash conversion cycle

Question 27

A randomized group of experiments used to collect data and compare performance among two options studied (A and B). A/B testing is often used in refining the design of technology products, and A/B tests are particularly easy to run over the Internet on a firm’s Web site. Amazon, Google, and Facebook are among the firms that aggressively leverage hundreds of A/B tests a year in order to improve their product offerings.

Answer 27

A/B testing

Question 28

In software development (sometimes also called project fork). When developers start with a copy of a project’s program source code, but modify it, creating a distinct and separate product from the original base.

Answer 28

fork

Question 29

Exists when a firm’s potential partners see that firm as a threat. This threat could come because it offers competing products or services via alternative channels or because the firm works closely with especially threatening competitors

Answer 29

channel conflict

Question 30

Money owed for products and services purchased on credit

Answer 30

accounts payable

Question 31

A classification of software that monitors trends among customers and uses this data to personalize an individual customer’s experience

Answer 31

collaborative-filtering

Question 32

The number of times inventory is sold or used during a specific period (such as a year or quarter). A higher figure means a firm is selling products quickly

Answer 32

inventory turns

Question 33

marketing practice where a firm rewards partners (affiliates) who bring in new business, often with a percentage of any resulting sales

Answer 33

affiliate marketing program

Question 34

problems that arise when organizations cannot easily convert assets to cash. Cash is considered the most liquid asset - that is, the most widely accepted with a value understood by all

Answer 34

liquidity problems

Question 35

A line of identifying text assigned and retrieved by a given web server and stored by your browser

Answer 35

cookie

Question 36

Offering deep discounts of a limited quantity of inventory. Often run for a fixed period or until inventory is completely depleted. Players include Guilt Groupe and Amazon’s MyHabit in fashion, and OneKingsLane in home decor.

Answer 36

flash-sales

Question 37

Products and services that allow for the development and integration of software products and other complementary goods. Windows, the iPhone, the wii, and the standards that allow users to create Facebook apps

Answer 37

Platforms

Question 38

Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data.

Answer 38

APIs

Question 39

When a firm preannounces a forthcoming profit or service and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item

Answer 39

The Osborne Effect

Question 40

Engineering the posting of positive comments and reviews of a firms product and services (or negative ones of a firms competitors). Many ratings sites will penalize firms that offer incentives for positive feedback posts

Answer 40

Astroturfing