Quiz Questions Flashcards
The flip side of watching the ‘model customer’ is to look for:
systematic mistakes that people make
Incentives tend to cause people to
Pursue the incentives at the expense of other unmeasured objectives.
Externalities are
the unmeasured effects that decisions have on other people
A major source of misplaced incentives comes from
poorly designed pricing schemes
The solution to an externalized problem is to
internalize the external effect
Conceptually, another word for the “Where Else Would It Work?” approach would be:
translation
Translation” is another way to think about which approach?
Where else would it work
Two sources in which to look for other ways to solve a problem are:
different cultures and different contexts
An example of solving a problem trying to “translate” a solution, using the “Where else would it work?” approach would be trying to sell dog food over the internet. The translation problem in this instance might be:
the ratio of shipping charges to product price might not translate into value.
“Tranlsation” (or, using the “Where else would it work?” approach) requires an entrepreneur to:
truly understand how the business works in order to effectively translate the idea.
- Psychologically, using the WWCD approach is beneficial because: (p. 48)
a. The things extremely wealthy people can do will one day become less expensive
b. The acronym WWCD is easy to remember
c. Many people have more money than they think they do, if we can get them to spend it.
d. It helps them know that a solution does exist, even if it is an expensive one.
It helps them know that a solution does exist, even if it is an expensive one.
- Sometimes, looking at ____________ can suggest a problem or a new solution. (p. 45)
a. How customers misuse a product
b. Your navel
c. How wealthy people behave
d. Textbooks and trade journals
How customers misuse a product
- Having students raise their hands in order NOT to be called upon in class is an example of: (p. 36)
a. Where else would it work?
b. What would Croesus do?
c. Would flipping it work?
d. How can you get them to talk?
Would flipping it work?
Ignorance management” refers to: (p. 30)
a. “Management for dummies”
b. Looking through solutions for other problems they might solve
c. Managing not-so-intelligent people
d. Helping ignorant people become smarter
Looking through solutions for other problems they might solve
- The question “What would Croesus do?” is like asking: (p. 16)
a. What could someone with unlimited resources of wealth do?
b. What is the most ethical thing to do?
c. What’s the nicest thing someone could do?
d. What is the most challenging thing someone could think of?
What could someone with unlimited resources of wealth do?
