Value Propositions and Business Model Design

Introduction

Entrepreneurship is not simply the creation of a product or the registration of a company. It is the design of a system that creates value for customers, delivers that value through feasible activities and relationships, and captures sufficient value to sustain the venture. Many ventures fail because they focus on an attractive product while neglecting customer willingness to pay, delivery costs, channels, partnerships, or the consistency of the overall business model.

A business model explains how an organization creates, delivers, and captures value. A value proposition explains why a particular customer should prefer the organization’s offering over available alternatives. These concepts are closely connected but not identical. A value proposition is primarily concerned with customer value; a business model connects that value to operations and financial viability.

The Business Model Canvas (BMC), developed by Alexander Osterwalder and Yves Pigneur, provides a visual framework for analyzing these relationships. It contains nine building blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The canvas is useful not because it replaces detailed planning, but because it makes assumptions visible and supports systematic experimentation.

Learning Objectives

By the end of this chapter, students should be able to:

1. Explain the difference between a value proposition and a business model.
2. Identify customer jobs, pains, and gains and translate them into a value proposition.
3. Use all nine elements of the Business Model Canvas.
4. Analyze revenue logic, cost structure, channels, relationships, resources, activities, and partnerships.
5. Evaluate internal consistency, feasibility, desirability, and financial viability.
6. Use customer discovery and experimentation to test business-model assumptions.
7. Recognize ethical, technological, and governance issues in business-model design.

1. Value Creation and the Logic of Entrepreneurship

Value exists when a customer perceives that the benefits of an offering exceed the sacrifices required to obtain and use it. Benefits may include functionality, convenience, reliability, status, safety, enjoyment, social impact, or risk reduction. Sacrifices include price, time, effort, switching costs, uncertainty, and privacy costs.

A useful conceptual expression is:

This is not an accounting identity or a precise universal measurement equation. It is a conceptual model: benefits and sacrifices may be subjective, multidimensional, and difficult to express in monetary units. A customer may select a more expensive product if it provides substantially greater reliability or convenience.

Entrepreneurial value creation involves three linked questions:

• Desirability: Do customers genuinely experience a problem or seek the proposed benefit?
• Feasibility: Can the venture produce and deliver the offering with available capabilities?
• Viability: Can revenues, margins, and cash flows support the venture?

A fourth consideration is responsibility. A business model may be desirable and profitable while creating unacceptable social, environmental, privacy, or labor harms. Contemporary entrepreneurship therefore evaluates responsible value creation alongside commercial performance.

2. The Value Proposition

A value proposition is a clear statement of the value an organization promises to create for a defined customer segment. It should identify the target customer, the important problem or desired outcome, the proposed solution, and the reason the solution is credible or superior.

A strong value proposition is customer-centered rather than product-centered. “We sell solar-powered refrigeration units” describes an offering. “We help small rural retailers preserve perishable stock despite unreliable electricity” describes a customer problem and an outcome.

2.1 Customer jobs, pains, and gains

The Value Proposition Canvas organizes customer understanding into two sides:

Jobs may be functional, social, or emotional. A student purchasing a meal-delivery service may seek the functional job of obtaining food, the social job of maintaining a particular lifestyle, and the emotional job of reducing stress.

The offering side contains:

• Products and services: What the venture provides.
• Pain relievers: How the offering reduces customer difficulties.
• Gain creators: How it produces desired benefits.

The objective is not to address every possible pain or gain. Effective propositions focus on a small number of important customer problems and provide credible evidence that the solution improves the customer’s situation.

2.2 Positioning and differentiation

A value proposition becomes strategically meaningful when it is compared with alternatives. Alternatives include direct competitors, substitute products, internal solutions, doing nothing, and informal methods. Differentiation may be based on price, quality, speed, accessibility, customization, design, trust, network access, sustainability, or a combination of these factors.

Differentiation is valuable only when customers recognize and care about it, and when competitors cannot immediately copy it. A feature is not automatically a competitive advantage. For example, a mobile application feature may be easily replicated, whereas a trusted brand, proprietary data resource, efficient operating process, or strong partner network may be more defensible.

A practical value-proposition statement can follow this structure:

For [target customer] who [important need or problem], [offering] provides [specific outcome] by [distinctive mechanism], unlike [relevant alternative].

This structure is a thinking aid rather than a marketing slogan. It should be tested against customer evidence.

3. The Business Model Canvas

The BMC presents nine interdependent building blocks. The right side emphasizes the market and customer interface; the left side emphasizes infrastructure and operations; the center links the two through the value proposition; revenue and costs connect the model to financial viability.

Figure: The nine building blocks of the Business Model Canvas and their relationship to value creation, delivery, and capture.

3.1 Customer segments

A customer segment is a group of people or organizations with sufficiently similar needs, behaviors, or purchasing circumstances. Segmentation may be based on demographic, geographic, psychographic, behavioral, institutional, or needs-based characteristics.

Important distinctions include:

• Mass market: A broadly similar customer group.
• Niche market: A specialized group with distinctive needs.
• Segmented market: Several related groups with meaningful differences.
• Diversified market: Distinct groups requiring substantially different propositions.
• Multi-sided platform: Two or more interdependent groups, such as riders and drivers or advertisers and users.

The user, buyer, payer, and beneficiary may be different. In educational technology, students may use the service, a university may pay for it, instructors may influence adoption, and employers may benefit from improved skills. A model that fails to distinguish these roles may misjudge the sales process and value proposition.

3.2 Channels

Channels communicate with customers and deliver the proposition. They may be direct, such as a sales force, website, store, or application, or indirect, such as distributors, agents, marketplaces, and strategic partners.

Channel decisions involve five broad functions: awareness, evaluation, purchase, delivery, and after-sales support. A channel should be assessed for reach, customer experience, control, speed, scalability, and cost. A premium product sold through a channel associated with poor service may weaken the proposition. Conversely, an indirect channel may provide efficient access to customers that a start-up could not reach independently.

3.3 Customer relationships

Relationships describe how the venture acquires, retains, and grows customers. Common forms include personal assistance, dedicated account management, self-service, automated service, communities, and co-creation.

Relationship design should match customer expectations and economics. High-touch support may be necessary for enterprise software but financially unsuitable for a low-price consumer product. Digital automation can lower service cost, but excessive automation may reduce trust or exclude customers with accessibility needs.

Useful measures include customer acquisition cost, retention, repeat purchase, complaint resolution, satisfaction, and referral. These measures should be interpreted together rather than used as isolated targets.

3.4 Revenue streams

Revenue streams explain how the venture captures value from each customer segment. Common mechanisms include asset sale, usage fee, subscription, leasing, licensing, brokerage commission, advertising, franchise fee, transaction fee, freemium conversion, and revenue sharing.

Pricing decisions must reflect customer value, willingness to pay, cost, competition, strategic objectives, and fairness. A model can have several revenue streams, but complexity may confuse customers and increase administrative cost.

A basic revenue expression is:

Here, price_i is the price for offering or segment i, and quantity_i is the corresponding quantity sold during the specified period. The expression assumes that recognized revenue can be represented by price multiplied by quantity and that discounts, refunds, taxes, and contract rules have been handled appropriately.

For a subscription business, a simplified period estimate is:

This is an approximation. Real analysis must account for new customers, cancellations, upgrades, downgrades, discounts, payment timing, and revenue-recognition rules.

A useful contribution-margin relationship is:

If fixed costs are constant over the relevant range, the break-even volume is:

The formula applies when the selling price and variable cost per unit are stable, all units produced are sold, the product mix is constant, and fixed costs do not change within the relevant activity range. If contribution margin is zero or negative, break-even cannot be reached through volume alone. For multiple products, a weighted-average contribution margin or product-specific model is required.

Worked example. A venture sells a service for $50 per customer. Variable cost is $20 per customer and monthly fixed costs are $12,000.

Contribution margin per customer = $50 − $20 = $30.

Break-even customers = $12,000 ÷ $30 = 400 customers per month.

At 500 customers, contribution toward fixed costs is 500 × $30 = $15,000, so operating surplus before other items is $15,000 − $12,000 = $3,000. This result excludes financing costs, taxes, depreciation, working-capital effects, and capacity constraints.

3.5 Key resources

Key resources are the assets required to create and deliver the value proposition. They may be physical, financial, intellectual, human, technological, relational, or data-based.

Resources should be identified in relation to activities and competitive advantage. A food-delivery venture may require software, delivery capacity, restaurant relationships, brand trust, customer data, and working capital. Merely listing “technology” is insufficient; the entrepreneur should specify which technology, what capability it provides, who controls it, and what it costs to acquire or maintain.

Resources may be owned, leased, contracted, licensed, or accessed through partners. This distinction affects control, flexibility, risk, and capital requirements.

3.6 Key activities

Key activities are the most important actions required for the model to function. They may include production, problem solving, platform management, marketing, sales, logistics, quality assurance, compliance, research, and customer support.

The activity list should reveal the venture’s operating logic. A marketplace’s central activity may be matching and trust management rather than producing inventory. A consultancy’s central activity may be diagnosis and expert delivery. Activities should be connected to measurable outcomes such as service reliability, conversion, cycle time, or quality.

3.7 Key partnerships

Partnerships allow ventures to obtain resources, reduce risk, achieve scale, access markets, or perform activities more effectively. They include strategic alliances, supplier relationships, joint ventures, licensing arrangements, outsourced providers, distribution agreements, and platform integrations.

Partnerships create dependence as well as opportunity. Entrepreneurs should examine bargaining power, switching costs, data access, service-level commitments, intellectual property, exclusivity, resilience, and reputational risk. A single-source supplier may lower transaction costs but create a serious continuity risk.

3.8 Cost structure

The cost structure describes the major costs required to operate the model. Costs may be fixed, variable, semi-variable, direct, indirect, committed, discretionary, cash, or non-cash.

A cost-driven model emphasizes efficiency, standardization, and low operating cost. A value-driven model emphasizes premium experience, customization, quality, or brand. Most ventures combine both orientations.

Entrepreneurs should distinguish accounting profit from cash sustainability. A venture may report revenue and profit while lacking cash to pay suppliers because customers pay slowly or inventory absorbs funds. Therefore, business-model analysis should include cash timing, working capital, financing needs, and capacity limits.

4. Business-Model Coherence and Evaluation

The nine blocks should form a coherent system. A proposition promising same-day delivery requires appropriate channels, logistics activities, resources, staff, partnerships, and a price that supports these costs. If the proposition is premium but the cost structure cannot support quality, the model is internally inconsistent.

A practical evaluation can use five tests:

1. Customer fit: Is the problem important, frequent, and experienced by an identifiable segment?
2. Solution fit: Does the offering address the problem better than realistic alternatives?
3. Operational fit: Can the venture perform the necessary activities reliably?
4. Economic fit: Do revenue streams plausibly exceed the full cost of creating and delivering value?
5. Strategic and responsible fit: Can the model remain defensible and avoid unacceptable harm?

4.1 Unit economics

Unit economics examine revenue and costs associated with a customer, transaction, order, or other meaningful unit. For a simple transaction, contribution is selling price minus variable cost. For subscription businesses, analysis may include acquisition cost, recurring gross margin, retention, and service costs.

Customer acquisition cost can be estimated as:

The calculation is meaningful only when the expenditure and acquisition period are defined consistently, and when “newly acquired” customers are measured using an agreed attribution rule.

A simplified customer lifetime value estimate is:

This is a simplified model. It assumes relatively stable revenue, margin, and retention and does not discount future cash flows. A more rigorous discounted approach is:

where contribution_t is contribution in period t, r is the discount rate per period, and T is the analysis horizon. The formula is sensitive to churn, expansion revenue, retention assumptions, and the selected horizon. It should not be treated as a precise prediction when evidence is weak.

Unit economics can reveal an attractive-looking but unsustainable model. Rapid customer growth is not necessarily good if each additional customer creates a loss that cannot later be recovered.

4.2 Assumptions and experiments

A canvas is a set of hypotheses, not a proven plan. Each block contains assumptions. Examples include:

• Customers experience the problem frequently.
• The buyer has authority and budget.
• A specific channel can reach customers at acceptable cost.
• A partner will provide reliable access.
• Customers will pay the proposed price.
• The venture can deliver at the promised quality.

Assumptions should be ranked by importance and uncertainty. High-impact, uncertain assumptions deserve early testing. Interviews, observation, landing-page tests, prototypes, pre-orders, pilot contracts, A/B tests, and concierge services can generate evidence. A useful experiment specifies the assumption, method, target population, success threshold, time period, and decision rule.

Evidence should be behavioral where possible. A customer saying that an idea is “interesting” is weaker evidence than signing a letter of intent, making a pre-order, using a prototype repeatedly, or switching from an existing solution.

5. An Integrated Design Process

A disciplined business-model design process can proceed as follows:

Step 1: Define the initial customer segment

Choose a specific early-adopter group rather than describing the market as “everyone.” Identify the user, buyer, payer, decision maker, and beneficiary.

Step 2: Investigate the customer context

Use interviews, observation, desk research, competitor analysis, and available market data. Ask about actual past behavior rather than hypothetical preferences. Determine what customers currently do, what it costs them, and why existing solutions are inadequate.

Step 3: Formulate the value proposition

Connect the most important job, pain, and gain to a specific offering and outcome. State what the venture will not attempt to solve. This improves focus and prevents feature accumulation.

Step 4: Map the operating system

Specify channels, relationships, resources, activities, and partnerships. Consider the complete customer journey from awareness to use, renewal, support, and referral.

Step 5: Design revenue and costs

Identify who pays, when payment occurs, what triggers payment, and which costs increase with each additional customer. Model several scenarios rather than relying on one optimistic forecast.

Step 6: Test the riskiest assumptions

Build the smallest credible experiment. Measure behavior and economic consequences. Revise the canvas based on evidence.

Step 7: Evaluate scalability and resilience

Ask whether growth improves or worsens unit economics, service quality, staffing requirements, supplier dependence, and regulatory exposure. A model that works at small scale may fail when demand increases.

6. Illustrative Case: FreshRoute Cooperative

This is a fictional illustrative case.

Background

FreshRoute Cooperative is a proposed venture serving independent food retailers in a region where electricity supply is unreliable. Small retailers lose income when fresh produce, dairy, and medicines spoil. Large refrigeration systems are expensive, require technical maintenance, and may consume more electricity than local businesses can reliably access.

Problem

The founding team initially proposed selling solar-powered refrigerators. Customer interviews revealed that retailers were less interested in owning equipment than in reducing spoilage and protecting daily income. They also worried about maintenance, theft, financing, and seasonal changes in demand.

Analysis through the canvas

Approach and solution

FreshRoute chooses a “cold storage as a service” model. Retailers pay a monthly fee that includes equipment access, preventive maintenance, and remote performance monitoring. A local technician network reduces response time. Financing partners support acquisition of equipment, while an insurer helps address theft and damage risk.

The revised value proposition is: “FreshRoute helps small retailers protect perishable inventory and stabilize income by providing dependable cold storage, maintenance, and flexible payment without requiring a large upfront purchase.”

The model must still test several assumptions: whether spoilage savings exceed the monthly fee, whether technicians can maintain equipment economically, whether retailers will pay consistently, and whether financing and insurance costs leave an acceptable margin.

Outcome

In an initial pilot, the team should measure baseline spoilage, equipment uptime, retailer income, payment behavior, service response time, and customer retention. It should compare these results with the total cost of serving each retailer. A successful pilot would not merely demonstrate that the equipment works; it would demonstrate that customers receive meaningful economic value and that FreshRoute can deliver that value profitably and responsibly.

Learning points

The case illustrates five principles. First, customers may value an outcome rather than ownership of a product. Second, the paying customer’s economic problem must be measured. Third, service, financing, maintenance, and risk management may be essential parts of the proposition. Fourth, partnerships can expand capability but also introduce dependence. Fifth, the canvas should evolve as evidence changes the entrepreneur’s understanding.

7. Ethics, Governance, and Responsible Design

Business-model decisions distribute benefits, costs, risks, and power. Entrepreneurs should therefore consider:

• Privacy: What customer data is collected, why is it needed, and who can access it?
• Consent and transparency: Do customers understand pricing, automated decisions, subscriptions, and data use?
• Fairness: Could pricing, lending, ranking, or recommendation systems disadvantage particular groups?
• Labor conditions: Are contractors paid fairly and protected from unreasonable risk?
• Environmental impact: What resources, emissions, waste, and end-of-life responsibilities are created?
• Accessibility: Can people with disabilities or limited connectivity use the offering?
• Consumer protection: Are claims accurate, cancellation possible, and terms understandable?
• Intellectual property: Does the model respect ownership, licensing, confidentiality, and creator rights?

Technology and artificial intelligence can improve forecasting, personalization, service automation, fraud detection, and operational efficiency. However, AI introduces risks involving biased data, opaque decisions, cybersecurity, surveillance, hallucinated information, and responsibility gaps. Entrepreneurs should establish human oversight, data minimization, testing, documentation, security controls, and mechanisms for appeal or correction. “Automated” does not mean “accountable to no one.”

Regulatory obligations vary by industry and jurisdiction. Financial services, healthcare, education, food, transport, employment, and data-intensive platforms often face specialized requirements. Regulatory analysis should occur during business-model design rather than after launch.

8. Limitations and Contemporary Developments

The BMC is powerful but incomplete. It can oversimplify institutional context, competition, capabilities, culture, stakeholder conflict, and time. It does not automatically show causal relationships, detailed processes, legal obligations, cash timing, or strategic choices. Complementary tools may include a customer journey map, value-chain analysis, competitor analysis, scenario planning, financial projections, risk registers, and an environmental or social impact assessment.

Contemporary business models increasingly involve platforms, ecosystems, subscriptions, digital goods, creator economies, circular systems, and hybrid commercial-social objectives. Digital platforms may benefit from network effects, in which the value to one group increases as participation by another group grows. However, network effects do not guarantee success; a platform must solve initial adoption, trust, governance, quality control, and monetization problems.

Circular business models seek to reduce resource consumption through repair, reuse, refurbishment, remanufacturing, product-as-a-service, and recycling. Such models may require reverse logistics, new partnerships, different revenue timing, and customer education. Social enterprises may combine earned revenue with grants, impact investment, or public funding, requiring clear measurement of both financial and social outcomes.

Best Practices for Entrepreneurs

1. Begin with a narrowly defined customer and a significant problem.
2. Separate the user, buyer, payer, and beneficiary.
3. Describe outcomes, not merely features.
4. Identify alternatives, including doing nothing.
5. Make every important assumption explicit.
6. Test behavior before investing heavily in infrastructure.
7. Link channels and relationships to customer economics.
8. Model contribution margin, cash timing, capacity, and risk.
9. Treat partnerships as strategic dependencies requiring governance.
10. Revisit the canvas when evidence, technology, regulation, or competition changes.
11. Include ethical and environmental consequences in design decisions.
12. Use the canvas as a learning instrument, not as a substitute for evidence.

Chapter Summary

A value proposition explains the customer value an organization promises to create, while a business model explains how that value is created, delivered, and captured. The Business Model Canvas organizes this logic through customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.

Effective design begins with customer jobs, pains, and gains and develops a proposition that addresses an important problem better than realistic alternatives. The remaining canvas blocks must support that proposition operationally and economically. Revenue analysis should be connected to variable and fixed costs, contribution margin, customer acquisition, retention, and cash requirements. The break-even formula is useful under clearly stated assumptions, while unit-economics estimates must be treated cautiously when evidence is limited.

A canvas represents hypotheses. Entrepreneurs should identify high-risk assumptions, test them through behavioral experiments, and revise the model. Strong business models demonstrate customer fit, operational feasibility, economic viability, strategic defensibility, and responsible governance. Technology, platforms, subscriptions, circular systems, and social enterprises are expanding the range of business-model possibilities, but they also introduce new risks involving data, power, labor, sustainability, and regulation.

Key Terms

Value proposition: A promise of specific value for a defined customer or stakeholder.

Business model: The logic through which an organization creates, delivers, and captures value.

Business Model Canvas: A nine-block visual framework for analyzing and designing a business model.

Customer segment: A group with sufficiently similar needs, behaviors, or purchasing circumstances.

Customer job: A task, goal, or problem that a customer is trying to address.

Customer pain: A frustration, cost, risk, obstacle, or negative outcome experienced by a customer.

Customer gain: A desired benefit or positive outcome sought by a customer.

Channel: A means of communicating with customers and delivering an offering.

Customer relationship: The type of interaction used to acquire, retain, and grow customers.

Revenue stream: A mechanism through which an organization receives income from a customer or partner.

Key resource: An asset required for the business model to operate.

Key activity: A critical action required to create and deliver value.

Key partnership: An external relationship that supports resources, activities, markets, or risk management.

Cost structure: The pattern and composition of costs required to operate a business model.

Unit economics: The analysis of revenue and costs associated with a defined unit of activity.

Contribution margin: Selling price minus variable cost for a unit.

Customer acquisition cost: Sales and marketing cost divided by newly acquired customers under a defined measurement rule.

Customer lifetime value: An estimate of contribution expected from a customer over the relationship period.

Network effect: A situation in which participation by one group affects value for other participants.

Responsible innovation: Innovation that considers ethical, social, environmental, legal, and governance consequences.

Review Questions

Short Answer Questions

1. What is the difference between a value proposition and a business model?
2. Distinguish customer jobs, pains, and gains.
3. Name the nine building blocks of the Business Model Canvas.
4. What is the purpose of contribution margin analysis?
5. Why should entrepreneurs test assumptions through customer behavior rather than relying only on stated opinions?

Long Answer Questions

1. Explain how customer segments, value propositions, channels, and customer relationships interact in the Business Model Canvas.
2. Discuss how revenue streams and cost structure determine the viability of a business model.
3. Explain the difference between key resources, key activities, and key partnerships, using an example.
4. Evaluate the strengths and limitations of the Business Model Canvas as an entrepreneurial planning tool.
5. Discuss the ethical and governance issues that may arise in a data-intensive or AI-enabled business model.

Analytical / Application Questions

1. Design a Business Model Canvas for a university-based peer tutoring platform. Identify the user, payer, value proposition, channels, relationships, revenue streams, resources, activities, partnerships, and costs.
2. A venture charges $80 per service, incurs a variable cost of $35, and has monthly fixed costs of $18,000. Calculate its contribution margin per service and monthly break-even volume. State the assumptions behind your calculation.
3. Choose a subscription business and identify three high-impact assumptions that should be tested before major investment. For each assumption, propose an experiment, a measurable success threshold, and a possible decision based on the result.

Multiple Choice Questions with Answers

Question 1

Which statement best describes a value proposition?

A. A complete list of all assets owned by a firm

B. A promise of value for a defined customer segment

C. A legal document defining shareholder rights

D. A schedule of historical operating expenses

Correct Answer: B. A promise of value for a defined customer segment

Question 2

Which Business Model Canvas block identifies the groups for whom an organization creates value?

A. Customer segments

B. Key resources

C. Cost structure

D. Key activities

Correct Answer: A. Customer segments

Question 3

A product sells for $60 and has a variable cost of $22. What is its contribution margin per unit?

A. $22

B. $38

C. $60

D. $82

Correct Answer: B. $38

Question 4

Which condition is required for the simple break-even volume formula to be reliable within a relevant range?

A. Variable costs must be greater than selling price

B. Selling price and variable cost per unit remain stable

C. All customers must pay different prices

D. Fixed costs must increase with every unit sold

Correct Answer: B. Selling price and variable cost per unit remain stable

Question 5

Which example is a customer pain?

A. A retailer wants faster delivery

B. A user values a product’s attractive design

C. A customer experiences repeated delays and lost working time

D. A buyer seeks social recognition from using a brand

Correct Answer: C. A customer experiences repeated delays and lost working time

Question 6

Which activity is most characteristic of a platform business model?

A. Matching interdependent user groups and managing trust

B. Eliminating all customer relationships

C. Producing every input internally

D. Avoiding partnerships and external resources

Correct Answer: A. Matching interdependent user groups and managing trust

Question 7

Customer acquisition cost is generally estimated by dividing defined sales and marketing expenditure by:

A. Total employees

B. Total website visits

C. Newly acquired customers

D. Total fixed assets

Correct Answer: C. Newly acquired customers

Question 8

Why can a partnership create risk as well as opportunity?

A. Partnerships always eliminate operating costs

B. The venture may become dependent on the partner’s reliability or bargaining power

C. Partnerships prevent access to new markets

D. A partnership makes regulation irrelevant

Correct Answer: B. The venture may become dependent on the partner’s reliability or bargaining power

Question 9

A service has a selling price of $50, a variable cost of $20, and fixed costs of $12,000 per month. What is its break-even volume?

A. 240 services

B. 300 services

C. 400 services

D. 600 services

Correct Answer: C. 400 services

Question 10

Which is the strongest evidence that customers may value a proposed solution?

A. They describe the idea as interesting

B. They politely agree with the entrepreneur

C. They make a pre-order or adopt the solution repeatedly

D. They request a longer presentation

Correct Answer: C. They make a pre-order or adopt the solution repeatedly