Question

Propose an experiments to test for a Value Proposition, Customer Segment, channel, and revenue model of an engineering research business model (as many experiments as possible).

What constitutes a pass/fail signal for each test?

Answer 1

Value Proposition

A value proposition is a promise of meaning that needs to be delivered, shared, and remembered. It is also a consumer trust in how service is to be provided, learned, and gained. A value proposition can refer to an entity as a whole, or parts of it, or consumer accounts, or goods or services.

Test - Strategic use of AIDA model

The AIDA model is only one of a collection of models known as the hierarchy of model effects or hierarchical models, both of which suggest that consumers go through a sequence of phases or stages while making purchasing decisions

Pass/Fail - Shift in intensest of focus group tested based on random sample collection .

Applying chi square tests on the sample results .

Customer Segment & channel

Test - ELM (Elaboration likelihood model) path test

Pass/Fail - Customer segmenst can be classified as per the selection of Central Route or Peripheral route in the ELM model tests

Revenue model

Test - Sensitivity Test of financial model

Sensitivity Analysis is used to explain the influence of a number of independent variables on certain dependent variables under certain particular circumstances. A financial analyst, for example, needs to figure out what impact a company's net working capital has on its profit margin.

Sensitivity analysis allows us to make better decisions. Decision-makers use the model to consider how the performance is sensitive to changes in such variables. As a consequence, the analyst can be helpful in drawing concrete results and can be influential in making optimal decisions.

Pass/Fail - Exit Multiple is calculated between Price sensitivity and revenue growth .