Answering: “Your executive leadership team believes that your product can achieve higher market share.”

To decide on a price cut, look at market share, competitor pricing, customer satisfaction and unmet customer needs. Channel strategy and earnings targets are internal concerns that say little about whether lower prices will win customers.

Exam Question

Your executive leadership team believes that your product can achieve higher market share.
– The Sales Leader is pressing 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)
A. Market share.
B. Channel sales strategy.
C. Company earnings targets.
D. Competitor pricing.
E. Customer satisfaction.
F. Unmet customer needs.

Correct Answer

A, D, E and F.

Why This Is the Correct Answer

Lowering the price is a hypothesis: cheaper means more customers and more market share. Testing it needs information about the market and the customers. Market share shows current position and room to grow, which Scrum.org’s Evidence-Based Management guide treats as unrealized value. Competitor pricing shows whether price is really a barrier. Customer satisfaction shows whether existing customers are happy at the current price. Unmet customer needs show whether new features or fixes would attract customers better than a discount. Together they help the Product Owner judge whether price is the real lever before acting on the Sales Leader’s suggestion.

Why the Other Options Are Wrong

B. Channel sales strategy. How the product is sold matters, but it does not tell you whether a lower price will bring in customers.

C. Company earnings targets. Earnings targets are internal goals. They constrain the decision but do not show whether price is what drives customer choice.

Exam Tip

For pricing and value decisions on PSPO II, choose customer- and market-facing evidence over internal targets or sales mechanics.

Key Takeaways

• Treat a price cut as a hypothesis to test.
• Market and customer data reveal whether price is the real barrier.
• Internal targets constrain decisions but do not explain customer behavior.