Which stage is described as 'Identify how a product or service solves customers' problems'?

• A. Traction stage
• B. Prototype stage
• C. Monetization
• D. Idea stage

Answer: (B)

Focusing on how a product or service solves customers' problems lives in the prototype stage. At this point, the goal is to turn an idea into something tangible—a prototype or MVP—that clearly demonstrates the solution and how it addresses real pains the customer experiences. This is where you move from imagining a fix to showing and testing how the product actually alleviates the problem, validating the value proposition with a concrete, testable version.

The idea stage is about identifying the problem and brainstorming potential solutions, but it’s more about thinking than showing how the solution works in practice. Traction is about gaining market adoption and demonstrating demand after the solution has been validated. Monetization focuses on revenue strategies, not on illustrating the problem–solution fit.