Product Management Product Management MCQ 2

Question 1

Which metric best measures how much value users get from a product relative to its cost?

Accepted Answer

Customer Lifetime Value to CAC ratio

Answer

The LTV:CAC ratio directly measures value delivered per dollar spent acquiring a customer, making it the clearest indicator of product value efficiency.

Question 2

A product manager notices that feature adoption drops sharply after day 3. What should they investigate first?

Accepted Answer

Onboarding and activation flow

Answer

A sharp drop in early adoption typically points to a broken or confusing onboarding/activation experience that prevents users from reaching the 'aha moment.'

Question 3

What does the RICE prioritization framework stand for?

Accepted Answer

Reach, Impact, Confidence, Effort

Answer

RICE stands for Reach, Impact, Confidence, and Effort — a scoring framework to objectively prioritize product features.

Question 4

In dual-track agile, what happens in the 'discovery' track?

Accepted Answer

Teams validate ideas before committing to build

Answer

The discovery track focuses on rapid experimentation and user research to validate whether an idea is worth building before handing it to the delivery track.

Question 5

A B2B SaaS company sees high logo retention but declining net revenue retention. What is the most likely cause?

Accepted Answer

Expansion revenue is insufficient to offset downgrades or contractions

Answer

High logo retention means customers stay, but NRR below 100% indicates downgrades or contractions are outpacing expansion revenue from existing accounts.

Product Management Practice Test

Product Management Practice Test

Product Management Product Management MCQ 2