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Question 47 - PSPO-II discussion

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The leading revenue-producing product in your portfolio has:

. High Current Value

. Low Unrealized Value

The product has been losing customers for several years and revenues are down. Using those two data points and the options below, what is the first action you should take?

(choose the best answer)

A.
Increase investment in the product to create greater interest and bring old customers back.
Answers
A.
Increase investment in the product to create greater interest and bring old customers back.
B.
Maintain the product, but begin reducing investment; seek other opportunities for future growth.
Answers
B.
Maintain the product, but begin reducing investment; seek other opportunities for future growth.
C.
Drop the price for the product to attract new customers.
Answers
C.
Drop the price for the product to attract new customers.
D.
Increase marketing for the product.
Answers
D.
Increase marketing for the product.
Suggested answer: B

Explanation:

According to the PSPO II resources, a product with high current value and low unrealized value is in theharveststage of the product lifecycle1. This means that the product has reached its peak and is facing increasing competition and decreasing customer demand. The best strategy for this stage is tomaintainthe product quality and customer satisfaction, butreducethe investment in new features or enhancements.The product owner shouldseekother opportunities for future growth, such as developing new products or exploring new markets23.Reference:

1:Product Lifecycle Management

2:Product Strategy

3:Evidence-Based Management

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asked 23/09/2024
Robert Smith
36 questions
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