PIC PIC Pricing and Monetization Strategy 2

Question 1

What does 'price elasticity of demand' measure?

Accepted Answer

The sensitivity of demand to changes in price

Answer

Price elasticity measures how much the quantity demanded changes in response to a price change — high elasticity means demand is very sensitive to price.

Question 2

Which of the following is a common pitfall when setting prices for a new B2B SaaS product?

Accepted Answer

Anchoring price too closely to internal development costs

Answer

Cost-based pricing ignores customer value perception and market conditions, often resulting in underpricing or misaligned positioning.

Question 3

What is 'bundling' as a monetization strategy?

Accepted Answer

Packaging multiple products or features together and selling them as a combined offering

Answer

Bundling increases perceived value and average deal size by grouping complementary products or features into a single purchase.

Question 4

According to Pragmatic Institute principles, who should own the pricing decision for a product?

Accepted Answer

A cross-functional team led by product management with market input

Answer

Pricing should be a cross-functional effort led by product management, informed by market research, finance, and sales data.

Question 5

What is a 'land and expand' monetization strategy?

Accepted Answer

Entering accounts with a small deal and growing revenue through upsells and expansions

Answer

Land and expand starts with a low-friction initial sale to get into an account, then grows revenue by expanding usage, seats, or modules.

PIC - Pragmatic Institute Certification Practice Test

PIC - Pragmatic Institute Certification Practice Test

PIC PIC Pricing and Monetization Strategy 2