QUESTION: 29

In order to justify the price increase of a product, your primary objective should be to:
(choose the best answer)

Reduce the price for a period of time before increasing it above the original price.
Improve the value experienced by the customer.
Reduce the number of features to make the product easier to use.
Add more features to make the product more attractive.

Answer(s): B

Explanation:

According to the PSPO II resources, a product owner should optimize the value of the product and the work of the Scrum Team. One way to do this is to improve the value experienced by the customer, which is the perception and evaluation of the product by the customer. A price increase can be justified if the customer perceives that the product delivers more value than the cost. This can be achieved by enhancing the product quality, functionality, usability, or design, or by providing additional benefits or services to the customer. The other options are not effective ways to justify a price increase, as they may either reduce the value experienced by the customer, or increase the cost without increasing the value.

Reference:

1: The Scrum Guide
2: User Experience
3: Value-Based Pricing
4: 8 Techniques to Justify a Price Increase
: Justification for a Price Increase: Positioning For Success

Reveal Solution Next Question

QUESTION: 30

The smallest product Increment that is valuable enough to release is one that:
(choose the best answer)

Delivers a single new or improved outcome.
Adds a new feature.
Fixes at least one defect.
Delivers all "must do" Product Backlog items.

Answer(s): A

Explanation:

The smallest product Increment that is valuable enough to release is one that delivers a single new or improved outcome for the customers or users of the product. This is because the outcome is the ultimate measure of value, not the output or the features. An outcome is a change in behavior, attitude, or situation that results from using the product. An outcome can be achieved by delivering a single feature, fixing a defect, or improving an existing functionality, as long as it meets the Definition of Done and the Sprint Goal. Therefore, the best answer is A.
The other options are not correct because:
B) Adds a new feature. This is not a sufficient condition, as a new feature may not deliver a valuable outcome if it is not aligned with the product vision, the customer needs, or the market conditions. C) Fixes at least one defect. This is not a necessary condition, as a defect may not affect the value of the product if it is minor, rare, or irrelevant to the customer. D) Delivers all "must do" Product Backlog items. This is not a realistic condition, as the Product Backlog is a dynamic and emergent artifact that changes based on feedback, learning, and discovery. There is no fixed set of "must do" items that can guarantee the delivery of value.

Reference:

1: Outcome vs. Output, 2: What is an Outcome?, 3: The Definition of Done, 4:
Feature vs. Outcome, 5: Defect vs. Value, : The Product Backlog

Reveal Solution Next Question

QUESTION: 31

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)

Channel sales strategy.
Customer satisfaction.
Market share.
Unmet customer needs.
Competitor pricing.
Company earnings targets.

Answer(s): B,C,D,E

Explanation:

The Product Owner is accountable for maximizing the value of the product resulting from the work of the Scrum Team. They are also accountable for effective Product Backlog management, which includes ordering the Product Backlog items to best achieve goals and missions. The Product Owner should consider various sources of information to make informed decisions about the product, such as customer feedback, market trends, stakeholder input, and data analysis.
When deciding whether to drop the price of the product, the Product Owner should consider the following sources of information:

Customer satisfaction: The Product Owner should measure and monitor how satisfied the customers are with the product, and how likely they are to recommend it to others. Customer satisfaction is a key indicator of product value and quality, and it can also influence customer retention and loyalty. The Product Owner should use various methods to collect customer feedback, such as surveys, interviews, reviews, ratings, and net promoter score.

Market share: The Product Owner should track and compare the product's market share with its competitors and potential customers. Market share is the percentage of the total market that is captured by the product, and it reflects the product's popularity and demand. The Product Owner should use market research, sales data, and industry reports to analyze the market share and identify opportunities and threats.
Unmet customer needs: The Product Owner should identify and prioritize the customer needs that are not yet met by the product or its competitors. Unmet customer needs are the gaps or problems that the customers face, and that the product can solve or address. The Product Owner should use techniques such as user stories, personas, value proposition canvas, and jobs to be done to discover and validate the unmet customer needs.
Competitor pricing: The Product Owner should benchmark and compare the product's pricing with its competitors and alternatives. Competitor pricing is the amount of money that the customers have to pay to acquire or use a similar or substitute product. The Product Owner should use competitive analysis, price elasticity, and value-based pricing to determine the optimal pricing strategy for the product.
The other option, company earnings targets, is not a relevant source of information for the Product Owner, as it does not reflect the value or the demand of the product. The Product Owner should focus on delivering value to the customers and the stakeholders, rather than meeting arbitrary financial goals. The company earnings targets may also change over time, and they may not align with the product vision or the market reality.

Reference:

1: Scrum Guide 2: Managing Products with Agility 3: Customer Feedback 4: Market Share 5: Unmet Customer Needs : [Competitor Pricing] :
[Company Earnings Targets]

Reveal Solution Next Question

QUESTION: 32

Which of the following measures might help you determine whether your product is delivering value to your customer?
(choose the best answer)

The number of "must-do" Product Backlog items delivered in a release.
The average cost of your product release.
The on-schedule performance of the Scrum Team.
How often your customers use your product.
All of the above.
None of the above.

Answer(s): D

Explanation:

The value of a product is not determined by how many features it has, how much it costs, or how fast it is delivered, but by how well it meets the needs and expectations of the customers and stakeholders. Therefore, the best measure of value is how often and how effectively the customers use the product to achieve their goals and solve their problems. This can be assessed by using metrics such as customer satisfaction, retention, engagement, loyalty, referrals, revenue, or any other indicators that reflect the desired outcomes and benefits of the product. The other options are not the best measures of value, because they either focus on the output rather than the outcome, or they do not reflect the customer perspective. The number of "must-do" Product Backlog items delivered in a release may indicate the scope or the quality of the product, but not necessarily the value. The average cost of the product release may indicate the efficiency or the profitability of the product, but not necessarily the value. The on-schedule performance of the Scrum Team may indicate the predictability or the agility of the product development process, but not necessarily the value. Reference := Professional Scrum Product OwnerTM II Certification, Managing Products with Agility, Evidence-Based Management

Reveal Solution Next Question

Free PSPO-II Exam Braindumps (page: 8)

QUESTION: 29

Explanation:

Reference:

QUESTION: 30

Explanation:

Reference:

QUESTION: 31

Explanation:

Reference:

QUESTION: 32

Explanation: