PSPO-II practice question 3 of 10

Your executive leadership team believes that your product can achieve higher market share. . The Sales Leader is pressuring you to reduce the price…

Domain Managing Products with Agility

Your executive leadership team believes that your product can achieve higher market share. . The Sales Leader is pressuring you to reduce the price of the product to attract more customers. . The Director of Finance is concerned that reducing the price will merely reduce the product's profitability. What sources of information should you consider when deciding whether to drop the price as the Sales Leader is suggesting? (choose the best four answers)

Answer options

A: Channel sales strategy.

B: Customer satisfaction. Correct answer

C: Market share. Correct answer

D: Unmet customer needs. Correct answer

E: Competitor pricing. Correct answer

F: Company earnings targets.

Correct Answer:

B. Customer satisfaction.; C. Market share.; D. Unmet customer needs.; E. Competitor pricing.

Explanation

When evaluating a pricing change to increase market share, a Product Owner must analyze both Current Value (CV) and Unrealized Value (UV) as defined in Evidence-Based Management (EBM). Customer satisfaction (CV) indicates if the current price aligns with perceived value. Market share (CV) provides a baseline for the executive team's goal. Unmet customer needs (UV) reveal if value can be increased through product improvements rather than price cuts. Competitor pricing provides essential market context to determine if the product is priced out of its competitive bracket. Together, these four metrics provide a comprehensive, evidence-based view of the product's market position.

Why Incorrect

A: Channel sales strategy is an operational distribution concern, not a primary indicator of product value or market pricing elasticity. F: Company earnings targets are internal financial goals that do not reflect external market realities, customer value, or competitive dynamics.

References

1. Scrum.org

"Evidence-Based Management Guide" (2020)

Section: Key Value Areas (Current Value and Unrealized Value)

pp. 5-7.

2. MIT OpenCourseWare

"Pricing Strategy and Tactics" (Sloan School of Management)

focusing on value-based pricing and competitive analysis.

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