False  1. The 3 aspects of pricing strategy are; Positioning, Product, Pricing.

THE RIGHT ANSWER IS PACKAGING 
  TRUE  2. The 3 payback periods for different pricing commitments are; Continual price optimization,
Yearly pricing review, No pricing function.
  TRUE  3. Positioning itself is to attract a diverse range of potential customers, from small one-person
shops to big enterprises, and segments them by buyer persona.
 FALSE  4. In determining the correct pricing strategy doesn’t happen by accident. To do it right, you
need to get input from yourself.
THE RIGHT ANSWER IS ALL MEMBERS OF YOUR TEAM.
  TRUE   5. The pricing committee consist of marketing leadership, sales leadership, corporate
Dev/finance and product leadership.
  TRUE  6. Marketing department understands the buyers personas you are targeting, so they should be
particularly involved with positioning.
II. Multiple Choice
Instructions: Read the following questions carefully and choose the letter that best describe the
answer.
1. According to the data shown, pricing is _ as efficient as improving retention and _ as efficient in
improving as acquisition
a. 2x & 2x
b. 2x & 4x
c. 4x & 2x
d. 4x & 4x
 
2. What will happen if the ratio of Lifetime Value per customer (LTV) and Customer Acquisition Costs
(CAC) is not greater than 1?
a. They will gain more profit and new customers
b. They will lose more customers
c. They will lose money on each and every new customer
d There will be no change in their profits and customers
3. ______ your customer lifetime value (LTV) and ______ your customer acquisition costs (CAC) are
fundamental to achieving high growth as a business, and the ratio of these, LTV/CAC, is the math your
entire business is based upon.
a. Decreasing, increasing
b. Increasing, decreasing
c. Increasing, increasing
d. Decreasing, decreasing
4. The _____ _____ can help you walk through common questions and objections. Being familiar with
your pricing helps them develop better pitches and more accurate sales forecasts, which deeply impact
your revenue and final profits.
a. Product Developers
b. Sales Team 
c. Marketing Department
d. Management Department

Identification
With only two tiers, either customer got only a bare bones service, or they got everything. Answer:
Packaging

They had only positioned for two customer types. Startups/individuals with zero cash, and startups who
could afford $600 per year. Answer: Positioning

Customers were actually willing to pay more for the core product and extras. Answer: Pricing

Your product developers are the people that build the features based on their deep knowledge of what
users need. This contributes to the packaging of your product. Answer: Product

The team can help you walk through common questions and objections. Being familiar with your pricing
helps them develop better pitches and more accurate sales forecasts, which deeply impact your revenue
and final profits. Answer: Sales

True or false

1.A pricing strategy is a model or method used to establish the best price for a product or service. It
helps you choose prices to maximize profits and shareholder value while considering consumer and
market demand. Answer: True

2.The three aspects of a pricing strategy are: POSITIONING, PACKAGING, and Sales Team. Answer False,
POSITIONING, PACKAGING AND PRICING

3. Eqution for Ltv is LTV = ARPU/ CHURN RATE. Answer True

4. LTV stand for –(LIFETEAM VALUE) Answer: False LIFETIME VALUE

5. CAC is the cost of your sales and marketing efforts to acquire a new customer. Answer True

1) what is the LTV abbreviation stands for?

a) Life Time Value

b) Light Time Vigor

c) Light True Value

 d) Light tear Valor

Answer: A

2) What is the CAC abbreviation stands for?

a) Customer Acting Cost

b) Customer Acquisition Cost

c) Consumer Acting Cost

d) Consumer Acquisition Cost

Answer: B

3) What are the three aspects of pricing strategy?

a) Retailing, Packaging, Pricing

b) Positioning, Promoting, Organizing

c) Positioning, Packaging, Pricing

d) Organizing, Pricing, Packaging

ANSWER : C

4) What is the definition of CAC?

a) CAC is the cost of your sales and marketing efforts to acquire a new customer.

b) CAC is how much you will earn from each customer over the time they spend with your product.

c) CAC is the foundation of your unit Economics

d) CAC is the pricing needs to convert customers and close sales.

ANSWER :A

5) It is aligning your product to attract the right customers.

a) Packaging

b) Positioning

c) Pricing

d) Planning
ANSWER : B

6) It is finding the right price points that represent the value and customers willing to pay.

a) Packaging

b) Positioning

c) Pricing

d) Planing

ANSWER : C

II. True or False

1.A Product Pricing is a model or method used to establish the best price for a product or services. False
Pricing strategy

2. CAC stand for Customer acquisition Costs – True

3. LTV is the sum of your marketing and sales spending across all channels divided by the number of new
customer acquired. FALSE CAC

4. LTV is how much you will earn from each customer over the time they spend with your product. TRUE
These are the three aspects of a pricing strategy at work:

a. Positioning, packaging, pricing

b. Positioning, packaging, perspective

c. Packaging, pricing, perspective

d. Pricing, perspective, positioning

Answer: A

2. When companies think growth, they think customer acquisition.

a. Pricing is the Untapped Growth Lever

b. Pricing’s impact on efficiency

c. Pricing is at the heart of your entire business

d. Pricing

Answer: A

True or False
The sales department understands the buyer personas you are targeting, so they should be particularly
involved with positioning.

Answer: False/The marketing department understands the buyer personas you are targeting, so they
should be particularly involved with positioning.

Rather than throwing money at customer acquisition, iterations to pricing can produce huge revenue
gains that means the difference between a failing company and exponential growth.

Answer: True

In what aspect of a pricing strategy at work is aligning your product to attract the right customers?

- Positioning

Give 2 core departments that helps make sure the people are always working on pricing.

- Sales

-Product

What are the 3 aspects of a pricing strategy at work?

a. Positioning, Packaging, Pricing

b. Simplicity, It might be close ,Build the best product

c. Both answers are correct

ANSWER: a

What is CAC

a. Customer Acquisition Cost

b. Central American Carribean

c. None of the above

ANSWER: a

Who should be working in tandem with the coordinator to continually optimize pricing, as is needed for
exceptional growth?

- Main domain Marker

10. What are the three common strategies businesses use to define their prizing process?

- Cost-plus
- Competitor Based

- Value Based

Why pricing is the heart of your entire business?

The problem this creates is that all of your marketing, sales, and product have to be developed with the
eventual positioning, packaging, and pricing of your product in mind.

Define the 3 aspects of pricing strategy at work

Positioning Aligning your product to attract the right customers. This is along the horizontal axis. Wistia
is positioning itself to attract a wide range of possible customers, from small one-person shops all the
way to big enterprises, and segments them by buyer persona.

» Packaging Having the right feature mix in your plans. Videos are the value metric for Wistia and how it
separates different packaging options. This allows companies to start small, but grow over time.

» Pricing Finding the right price points that represent value and customers are willing to pay. The pricing
on the page reflects the value metric (the number of videos included in the plan). Wistia offers a free tier
to convert interested customers, but then the pricing follows a logical pattern of more videos = more
cost.

Status page is the most popular status page service use by large online website.

Answer: True

Your product developers are the people that build the features based on their deep knowledge.
Answer: True

The buyer team can help you walk through common questions and objections.

Answer: False- Sales

LTV is the cost of your sales and marketing efforts to acquire a new customer.

Answer: False- CAC

Departmental leaders should act as coordinator.

Answer: True

Identification:

What are the different reaction for the competitor’s prices?

Answer: Ignore, Defend, Mitigate, or Accommodate

What are the different adjusting price?

Answer: Discount and Allowance Pricing, Segmented Pricing, Psychological Pricing, Promotional Pricing,
Geographical Pricing, and International Pricing
It understands the buyer personas you are targeting, so they should be particularly involved with
positioning.

Answer: Marketing

It is used by large online websites like Reddit, Cloudflare, Dropbox and so on.

Answer: Statuspage

With only two tiers, either customer got only a bare bones service, or they got everything.

Answer: Packaging Initial

TRUE 1. Willingness to pay, Building the best product, and You get to know your customers are the
three great reasons to base your pricing on customer value.

FALSE 2. Basing on a product or service’s price on how much the target consumers believe it is worth is
a Value-Based Product.

THE RIGHT ANSWER IS PRICING

FALSE 3. If you’re in a competitive market. Pricing for the companies involved shouldn’t be close to
what the market can reasonably sustain.

THE RIGHT ANSWER IS SHOULD

TRUE 4. For a SaaS company starting out in a new industry, competitor-based pricing will seem the
logical way to go.

TRUE 5. In SaaS, the costs might be product development and design, the company’s own SaaS
providers, the cost of the team. (True)
 FALSE 6. If a SaaS provider is using value-based pricing and has changed their prices, you can constantly
change the price of your product to maintain the same margin.

THE RIGHT ANSWER IS CAN’T

II. Multiple Choice

Instructions: Read the following questions carefully and choose the letter that best describe the answer.

1. Customers don’t care about ____, they care about ____.

a. Cost & efficiency

b. Price & value

c. Price & efficiency

d. Cost & value

2. What method does utilizes competitor prices as a benchmark, rather than setting a price based
on company costs or customer value?
 a. Selling Method

b. Pricing Method

c. Distribution Method

d. Marketing Method

3. Based on “Value-based pricing”, You should definitely be re-evaluating your pricing strategy
every _____, and if there is room to raise prices you should

a. 3 months

b. 6 months

c. 9 months

d. 1 year

4. Following are great reasons to base your pricing on customer value. Which does NOT belong to
the group?

a. Willingness to pay

b. Build the best product

 c. You get to know your customers

d. Basis for quantifying your buyer personas

Willingness to pay is the main reason you have to go out and ask your potential customers the value
they see in your product.

Answer: True

The biggest downside of competitor- based pricing should be obvious.

Answer: True

You should definitely be re-evaluating your pricing strategy every 3 months, and if there is room to raise
prices you should.

Answer: False- 6 months

Calculating price from competitors has two main bonuses: Simplicity and It might be close.

Answer: True

You have to be dedicated to finding out about your customers and your product to perform value-based
pricing efficiently .

Answer: False- Effectively

Identification:

It is a process, with the ultimate goal of defining a strategy that will maximize your revenue.

Answer: Pricing

The most basic form of pricing: selling something for more than its cost price.

Answer: Cost-Plus Pricing

What are the two main benefits of calculating price from cost?

Answer: It’s simple and You will cover your costs

A pricing method that utilizes competitor prices as a benchmark, rather than setting a price based on
company costs or customer value.

Answer: Competitor-Based Pricing

This could easily be called “Customer- Based Pricing” because that is effectively what it is. Instead of
looking inwardly at your own company, or laterally towards your competitors.

Answer: Value-Based Pricing

One of the best and is used by many of the largest websites around.

A. Reddit

B. Status Page
 C. Google

D. Cloud flare

Ans. B

2. It is a strategy for pricing goods or services that adjusts the price based on its perceived value rather
than on its historical price This could easily be called:

A. Pricing strategy

B. Value-based pricing strategies

C. Customer-Based Pricing

D. Cost-plus pricing

Ans. C

3. What is Pricing?

a) Pricing is a process, with the ultimate goal of defining a strategy that will maximize your
revenue.

b) Pricing is a method in which the selling price is set by evaluating all variable cost.
 c) Pricing is aligning your product to attract the right customers

d) Pricing is what people automatically think of when they think of “Pricing strategy”

ANSWER : A

5. What is Cost-Plus?

a) Cost-Plus is a process, with the ultimate goal of defining a strategy that will
maximize your revenue.

b) Cost-Plus is a method in which the selling price is set by evaluating all variable
cost.

c) Cost-Plus is aligning your product to attract the right customers

d) Cost-Plus is what people automatically think of when they think of “Pricing

strategy”

ANSWER : D

5) The unit cost of delivering one account can be very low. It is the ______that your customers will get
out of using your product that really matters to them, not how much you paid your developers.

a) Pricing

b) Cost
 c) Location

d) Value

Answer: D

6) It is a pricing method that utilizes competitor prices as a benchmark, rather than setting a price based
on company costs or customer value

a) Value Based Pricing

b) Better Based pricing

c) Commercial Based Pricing

d) Competitor Based Pricing

Answer: D

1. This is the main reason you have

To go out and ask your potential

Customers the value they see in your

Product.
 A. Build the best product

B. Willingness to pay

C. Customer Value

D. You ge to know your customer

Ans: B

II. True or False

1. Pricing Strategies takes the cost of producing the good or service and adds a premium. FALSE
cost-plus pricing

2. Prices are always equal to or higher than in cost-plus pricing strategies in value-based pricing
strategies. TRUE

2) Calculating price from competitors has two main bonuses: 1. Simplicity, 2. It might be close TRUE

There are two main benefits on calculating price from costs

Answer: True
It’s simple and You will cover your cost are the two main benefits on calculating price from costs

Answer: True

You should definitely be re-evaluating your pricing strategy every 6 months, and if there is room to raise
prices you should.

Answer: True

Once you have developed your minimal viable product, your features and product updates should be
driven by costumer demand.

Answer: False/Once you have developed your minimal viable product, your features and product
updates should be driven by consumer demand.

5.What people automatically think of when they think of “pricing strategy “ ?

- Cost plus

What are the great reason to base your pricing on customer value?

-willingness to pay – build the best product – you get to know your customers
What are the two main bonuses when calculating price form competitors?

a. Simplicity

b. Both a and c are correct

c. It might be close

ANSWER: b

Three great reasons to base your pricing on customer value

a. Its simple, you will cover your cost and Simplicity

b. Both answers are wrong

c. Willingness to pay, Build the best product and you get to know your customers

ANSWER: c

What is the big problem of cost plus pricing

A company may set a product price based on the cost plus formula and then be surprised when it finds
that competitors are charging substantially different prices.
What are the 3 great reason to base your pricing on customer value. Explain each

- Willingness to pay This is the main reason you have to go out and ask your potential customers the
value they see in your product. You need to know what customers will actually pay for your
product. Competitor-based pricing does this in a roundabout way. If they are willing to pay $100 for
your competitor, then they must be willing to pay $100 for your product as well. But this misses the
fundamental point that your product should be different to your competitors. It should offer more
value, and therefore priced differently.

Build the best product Pricing also isn’t just about the number on the page. It is about how you package
and offer your selection of products and features, and to whom. This approach to pricing will help you
understand what your customers truly want, and what features should be developed over time. Once
you have developed your minimal viable product, your features and product updates should be driven
by consumer demand.

You get to know your customers By placing a premium on the opinions of your customers, you are
focusing on the people who will be making the buying decisions. They are the ones that will eventually
be deciding whether your pricing and packaging is correct. If not, they won’t be buying.

What are the three common strategies businesses use to define their prizing process?

Cost-plus

Competitor based

Value based

It is about how you package and offer your selection of products and features

-Build the best product

True or false
 1. Cost-plus pricing is a basic strategy that works by considering the total cost of making a product
and adding a markup to that to determine the price of a product. This is a good strategy in the
long term. Answer: True

2. Willingness to pay is the approach to pricing will help you understand what your customers truly
want, and what features should be developed over time. Answer False Build the best product.

3. Competition based pricing is a pricing method that involves setting your prices in relation to the
prices of your competitors. Answer True

4. Build the best product is the main reason you have to go out and ask your potential customers
the value they see in your product. Answer: False Willingness to pay

5. Three great reasons to base your pricing on customer value: Willingness to pay, Build the best
product, and you get to know your customers. Answer True

Identification

This is the most basic form of pricing: selling something for more than its cost price. Answer Cost Plus.

A pricing method that utilizes competitor prices as a benchmark, rather than setting a price based on
company costs or customer value. Answer Competitor-Based Pricing

The basing of a product or service’s price on how much the target consumers believes it is worth?
Answer Value-Based Pricing

When you should be re-evaluating your pricing strategy? Answer 6 Months

Give one great reasons to base your pricing on customer value

Answers: Willingness to pay, Build the best product, you get to know your customers.

  TRUE  1. Qualitative buyer personas segment the target market by point of contact. Then, they
describe the point of contact in detail, such as what their needs are, what their budget is, and so on.
  FALSE 2. Ideal packaging can reverse these trends, resulting in low churn (3%) and high upsell (5%).
THE RIGHT ANSWER IS 10%
  FALSE 3. Cost-based pricing takes into account what value you offer and what each of your buyer
personas is willing to pay for that value.
THE RIGHT ANSWER IS Value-based
  TRUE  4.Test possible hypotheses to determine the best solutions for the causes and in turn the original
problem It’s useless to build a product if no one is willing to pay your price.
II. Multiple Choice
Instructions: Read the following questions carefully and choose the letter that best describe the
answer.
1. Calculating CAC allows you to align your funnel so your marketing department can acquire the right
leads through the right channels for each persona. What does CAC stands for?
a. Customer Access Cost
b Customer Assessment Cost
c. Cost of Acquisition Channel
d. Customer Acquisition Cost
2. Calculating the CAC for each of your buyer personas bring together all aspects of your pricing. How to
calculate your CAC for each persona?
                          Total Cost of Sales & Marketing
1. CAC = -----------------------------------------
                          Number of Customers Acquired
 
                          Number of Customers Acquired
2. CAC = -----------------------------------------
                          Total Cost of Sales & Marketing
3. CAC = Total Cost of Sales & Marketing – Number of Customers Acquired

4. CAC = Number of Customers Acquired – Total Cost of Sales & Marketing

3. It is  condensed into a single word that best describes that persona

a. packaging
b. demographics
c. perception
d. differentiation
4. ___ your buyer personas gives you concrete starting points for your pricing and packaging, showing
you exactly what your customers value, and what they are willing to pay.
a. Identifying
b. Verifying
c. Qualifying
d. Quantifying
5. With _____ you are only taking your own internal costs into account and adding a margin.
a. Competitor-based
b. Cost-based
c. Value-based
d. Cost-competitor
6. ___ is equally flawed and through a race-to-the-bottom, can lead to even lower margins.
a. Value-based
b. Cost-based
c. Competitor-based
d. Cost-value
1.Quantified buyer personas are the foundation of your entire pricing strategy.
 
Answer: True
2. Without data-driven buyer personas, companies cannot succeed in SaaS..
Answer: True
3. What is the foundation of entire pricing strategy?
 -Quantified buyer personas
 --Quality buyer personas
-Quantity buyer personas
--Quantify buyer personas
4. What are the questions under getting the data on best customers?
-What industries are they in?
-What is the size of their company?
-What is their role within their
company?
5. What are the questions to find out the identifiable people in real life?
a. What industries are they in?
b. What is the size of their company?
c. What is their role within their company
d. All of the above
ANSWER: d
6. Equally flawed and through a race-to-the bottom, can lead to even lower margins
a. Cost-based
b. Competitor-based
c. Value-based
d. AdEspresso
ANSWER: b
7.  Define the competitor based method.
Answer: this method bases your prices on other businesses in your industry. But you
should be offering different value and a better product than they are.
8. Define value based method.
Answer: it is pricing strategy unique to your company and therefore returns the
maximum value for your product and customers.
9. is where the features in each tier are mixed and don’t correspond to what specific
customer profiles want.
Answer: Flawed Packaging
10. is equally flawed and through a race-to-the-bottom, can lead to even lower margins.
Answer: Competitor-based
11. By identifying your best customers and working backwards, you find which buyer
behavior you currently have and which ones you still want to obtain.
Answer: False/ By identifying your best
customers and working backwards, you find which buyer personas you currently have
and which ones you still want to obtain. 12.Finding what features customers really
want also ties back into your product development, allowing you to prioritize your
roadmap around customer purchase. Answer: False/ Finding what features customers
really want also ties back into your product development, allowing you to prioritize your
roadmap around customer value.
 Personas take the target market and break it down by point of contact. Answer:
Qualitative buyer.

Without personas, companies cannot succeed in SaaS. Answer: data-driven buyer.

To grow your SaaS business you need to find more of your . Answer: highest value
customers.

The highest share of the market is found in the . Answer: trough at the bottom.

Calculating the ,for each of your buyer personas brings together all aspects of your
pricing. Answer: customer acquisition cost (CAC).

True or False

Calculating CAC allows you to align your funnel so your marketing department can acquire the right
leads through the right channels for each persona. Answer: True

Cost-based pricing takes into account what value you offer and what each of your buyer personas is
willing to pay for that value. Answer: False, Value-based

With Value-based you are only taking your own internal costs into account and adding a margin.
Answer: False, cost-based

Competitor-based is equally flawed and through a race-to-the-bottom, can lead to even lower margins.
Answer: True

Equation for Customer Acquisition Cost (CAC) Answer: True

Quantified buyer personas are the foundation of your entire pricing strategy.

Answer: TRUE

To grow your SaaS business you need to find more of your highest value customers. Cloning these
customers act as a bedrock for the rest of your SaaS growth.

Answer: TRUE
Quantitative buyer personas take the target market and break it down by point of contact. Then, they
describe the point of contact with different features, like what their needs are, what their budget is and
more.

Answer: FALSE – Qualitative

The underlined word is Quantitative

The first part of building buyer personas is to tease apart the amorphous idea of “customer” into 2-4
identifiable people.

Answer: FALSE – 3-5

The underlined word is 2-4

It’s useless to build a product if no one is willing to pay your price. Equally, you’re losing revenue if you
set your pricing bar too high.

Answer: FALSE – too low

The underlined word is too high

IDENTIFICATION

Directions: Read the statements carefully and write the correct answer on the space provided.

You are only taking your own internal costs into account and adding a margin. It’s entirely inwardly
focused and doesn’t represent what any of your customers think or feel.
Answer: Cost-based

It is equally flawed and through a race-to-the-bottom, can lead to even lower margins. This method
bases your prices on other businesses in your industry.

Answer: Competitor-based

This pricing takes into account what value you offer and what each of your buyer personas is willing to
pay for that value.

Answer: Value-based

It can be designed around each of the main features for each buyer persona.

Answer: Sub-landing pages

It is a Facebook ad optimization service, segments their customers using buyer personas in their own
Facebook ads.

Answer: AdEspresso

FALSE 1. Price sensitivity analysis is the process of determining which features of a product are most
and least important to different customers.

THE RIGHT ANSWER IS FEATURE VALUE ANALYSIS

FALSE 2. Customers are asked what they are willing to pay for a product or a set of specific features in
feature value analysis.

THE RIGHT ANSWER IS PRICE SENSITIVITY ANALYSIS

 FALSE 3. Packaging defined tiers for each of their buyer personas, going from small to medium to large
companies.

THE RIGHT ANSWER IS POSITIONING

TRUE 4. In packaging, each package currently contains the same features and is separated only by the
size of the value metric.

TRUE 5. A company only makes money by offering value that aligns with what its customers want. This
should be what you are always thinking about when deciding your pricing strategy.

FALSE 6. Changing our prices up or down to align with willingness to pay will allow us to decrease
monetization.

THE RIGHT ANSWER IS INCREASE

II. Multiple Choice

Instructions: Read the following questions carefully and choose the letter that best describe the answer.

1. They are the only people who can tell you why they don’t value your product as it stands.

a. Manufacturers

b. Suppliers
 c. Customers

d. Sellers

2. A Minimum Viable Test uses the minimum amount of effort to validate or invalidate your ___.

a. Hypothesis

b. Forecast

c. Budget

d. Sales

3. Simplified Equation for Lifetime Value (LTV)

Sum of all Customer MRR

Total Number of Customers Total Number of Customers

a. LTV = ------------------------------------ c. LTV =

----------------------------------

Number of Customers Who Churned Sum of all Customer MRR

- -

Total Number of Customers Number of Customer Who

Churned

Sum of all Customer MRR Sum of all Customer MRR

÷ -

Total Number of Customers Number of Customer Who Churned

b. LTV = ---------------------------------------- d. LTV =

----------------------------------

Number of Customers Who Churned Total Number of Customers

Total Number of Customers

3. Test possible hypotheses to determine the best ____ and in turn the original problem.

a. Problem

b. Cause
 c. Solution

d. Implement

1. Quality buyer personas combine with an integrated pricing process to define

The causes of problems in your business and solve them.

Answer: False/ Quantified buyer personas combine with an integrated pricing process to define the
causes of problems in your business

And solve them.

2. Acne can now customize pricing for Large Laura’s and unlock value from

These customers.

Answer: False/ Acme can now customize pricing for Large Laura’s and unlock value from these
customers.

3. Finding out from different customers what features they value the most and least within the
product.

Answer: Feature value analysis

 4. Asking customers what they are willing to pay for the product or a set of specific features.

Answer: Price sensitivity analysis

5. What are the 3 steps in pricing process?

Answer: Problem, Cause, and Solution

6.What is the first major problem areas that SaaS company face?

Answer: no problem acquiring customers, but poor business unit economic, price sensitivity by buying
persona, and price sensitivity studies.

6. Put into action the best solution(s) from testing

a. Solution

b. Cost

c. Implement
 d. Problem

ANSWER: c

7. Defined tiers for each of their buyer personas, going from small to medium to large companies

a. Positioning

b. Pricing

c. Packaging

d. None of the above

ANSWER: a

8. It is a revenue obtained from a customer

Over their time using your product ?

-LTV

9. It is the amount cost for you to acquire

A customer through acquisition

Channels ?

-CAC

True or False

10. The fourth step in pricing process is Implementation.

Answer: True

11. In fourth step in pricing process, this is where you take results from your experimentation and
embed them into pricing.

Answer: True
Churn is a rate at which customer stop doing business with an entity.

Answer: TRUE

Pricing defined tiers for each of their buyer personas, going from small to medium to large companies.

Answer: FALSE – Positioning

The underlined word is Pricing

The 4th step in our pricing process is implementation.

Answer: TRUE

Feature value analysis is asking customers what they are willing to pay for the product or a set of specific
features.

Answer: FALSE – Price sensitivity analysis

The underlined word is Feature value analysis

The LTV:CAC ratio is below 2:1 ratio needed for real growth for all buyer personas.

Answer: FALSE – 3:1

The underlined word is 2:1

IDENTIFICATION
Directions: Read the statements carefully and write the correct answer on the space provided.

It is the maximum price at or below which a consumer will definitely buy one unit of a product.

Answer: Willingness to pay

It is the process of putting a decision or plan into effect.

Answer: Implementation

It is the science, art and technology of enclosing or protecting products for distribution, storage, sale,
and use.

Answer: Packaging

It is the net amount of cash and cash equivalents being transferred into and out of a business.

Answer: Cash flow

Pricing products accurately is essential to winning customers. Creating buyer personas can help a
business learn more about the amount a customer is willing to pay.

Answer: Beat Competitors

CHAPTER 4

GROUP 10 QUESTIONS

MULTIPLE CHOICES
Answer: A.1) IT’S THE MAIN OBSTACLES YOUR COMPANY IS FACING

a. Problem

b. Cause

c. Solution

d. Implementation

Answer: C. 2) IT USES DATA-DRIVEN EXPERIMENTS TO TEST VIABLE SOLUTIONS

a. Problem

b. Cause

c. Solution

d. Implementation

ANSWER : D 3) Problem, Cause and Solution framework are the three steps in_______.

a) Retailing
 b) Planning

c) Regrouping

d) Pricing

ANSWER : C 4) What does LTV mean?

a) Lifetime Visa

b) Long-term Value

c) Lifetime Value

d) Long-term Visa

True or false

1. Pricing is not a Process. FALSE – A Process

2. Buyer personas are situated at the heart of any marketing strategy and
throughout every part of business. True

Chapter 4
True or false

“ARPA” tells you the average revenue per month you will receive from an active customer. On the other
hand, “CHURN RATE” is the number of customers that leave your product in a given timeframe. True

The best course of action is to increase LTV for your customers. Therefore, the equation for LTV is

ARPA

LTV=-------------------------------

Customer Churn Rate True

CAC is the rate at which customer stop doing business with an entity. FALSE (CHURN)

MRR is the income that a business can count receiving every month. TRUE

Pricing is not a Process. FALSE – A Process

Buyer personas are situated at the heart of any marketing strategy and throughout every part of
business. TRUE

I. True or False

Instruction: Write the word TRUE if the statement is correct and if not, write FALSE, underline the word
or statement that is incorrect and state the right answer.

TRUE 1. Aligning your value metric with your customer’s needs is crucial for growth. If your customers
can’t get what they need from your product, they will quickly churn out.
 TRUE 2. To build an understandable value metric you have to decide which axes you are going to
differentiate and charge along.

TRUE 3. A well-defined value metric provides a path to growth for both you and your customer: when
they grow, you grow.

TRUE 4. Growing with your customers is all about getting the thresholds for your value metric correct.

FALSE 5. The “3Ps” of pricing are Positioning, Packaging, Product.

THE RIGHT ANSWER IS PRICING

FALSE 6. There is a three-step process in making your value metric understandable.

THE RIGHT ANSWER IS TWO-STEP

II. Multiple Choice

Instructions: Read the following questions carefully and choose the letter that best describe the answer.

1. What tool is used so the users get value not only from the number of
emails they can send but also from the size of their email list?
 a. Gmail

b. Customer.ps

c. Customer.io

d. Value metric

2. If customers see different value metrics as important, consider

constructing a dual value metric to ___________

a. Get the highest profitability

B capture the highest potential value

b. Reach the sales margin

c. Surpass the quota

3. An optimized value metric needs three (3) things; EXCEPT?

a. To be easy to understand

b. To align with your customer’s needs

 c. To grow with your customer

d. To get the highest profitability

4. A value metric would allow Acme.io to capture this value as its prices
according to usage. The more value a customer gets, the more they are?

a. Charged

b. Satisfied

c. Benefitted

d. Appreciated

True or False

1. An optimized value metric needs three things.

Answer: True

2. The 3P's of pricing are what make your pricing page understandable to new customers:

Answer: True

3.It is virtual that you ask your customers what they consider the best value metric.

Answer: False/ It is vital that you ask your customers what they consider the best value metric.
4.A customer can choose to only pay for the Enrichment API or the Discovery API if that best fits their
value.

Answer: False/ A customer can choose to only pay for the Enrichment API or the Discovery API if that
best fits their needs.

IDENTIFICATION

1. What are the 3 things that optimized value metric needs?

Answer: to be easy to understand

to align with your customer needs

to grow with your customer

2. What are the 3P’s in pricing that can understand your pricing page for new customers?

Answer : Positioning

Pricing

Packaging

3.What are the 3 needs of optimized value metric?

Answer:
1. To be easy to understand

2. To align with your customer’s needs

3. To grow with your customer

4.Define the 3Ps

Answer:

» Positioning

The correct value metric allows you to align your product to different segments of the market and
support them as they grow.

» Packaging

A value metric acts as the main com- ponent of your different packages and as the headline that
differentiates them.

» Pricing

The pricing represents the ideal value of the value metric to the customer within each package.

5.IIt is a common type of pricing structure. You

Get full access to the service, then upgrades are

Based around other key features, such as analytics

And dedicated support

Answer :Value Metrics

6.What are the optimized value metric needs ?

Answers:

1. To be easy to understand

2. To align with your customer’s needs

3. To grow with your customer

MULTIPLE CHOICE

1.Thing/s that optimized value metric needs

a. To be easy to understand

b. To align with your customer’s needs

c. To grow with your customer

d. All of the above

ANSWER: d

2. of the step process that make your value metric understandable

a. Define the high-level value of your product

b. Build an understandable value metric

c. Consider the low level components of this value

d. None of the above

ANSWER: a/b

A badly minimized value metric means that you aren’t capturing all the value your product represents to
your users. You also limit the value of your product for users, increasing churn.

Answer: FALSE – optimized

The underlined word is minimized

One of our takeaways was that simplicity is the key to pricing. The more time it takes to understand, the
less likely it is people will sign up. Value metrics are a way to encompass simplicity in your pricing.

Answer: TRUE
Make your value metric easy to understand so that when new customers visit your pricing page, they
can immediately understand what they would be paying for and where they fit in your pricing.

Answer: FALSE – packaging

The underlined word is pricing

A well-defined product provides a path to growth for both you and your customer: when they grow, you
grow.

Answer: FALSE – value metric

The underlined word is product

The only way to drill down to this ideal alignment between company and customer is through
marketing. Put your value metricout there and see how it performs with real customers.

Answer: FALSE – testing

The underlined word is marketing

IDENTIFICATION

Directions: Read the statements carefully and write the correct answer on the space provided.
It would allow Acme.io to capture this value as its prices according to usage. The more value a customer
gets, the more they are charged.

Answer: Value metric

This is where you guide customers through your marketing and sales funnels. If potential customers
have no idea what your different plans offer, or a solid idea of what it’s going to cost them, then they’re
never going to sign up for your service.

Answer: Pricing page

It represents the ideal value of the value metric to the customer within each package.

Answer: Pricing

Identify the two-step process to make your value metric understandable.

Answer: Define the high-level value of your product

Consider the low-level components of this value.

Identify the three things that an optimized value metric needs.

Answer: To be easy to understand

To align with your customer’s needs

To grow with your customer

True or False
An optimized value metric needs three things: To be easy to understand, To align with your customer’s
needs, and To grow with your customer. TRUE

Positioning – The pricing represents the ideal value of the value metric to the customer within each
package. FALSE Pricing

3. Pricing- The correct value metric allows you to align your product to different
segments of the market and support them as they grow. FALSE Positioning

4. Packaging A value metric acts as the main component of your different

packages and as the headline that differentiates them. TRUE

5. Your pricing page is where you guide customers through your marketing and
sales funnels. TRUE

Identification

6- 7 The two-step process. Answer Define the high-level value of your product, Consider the low-level
components of this value

8. Equation for Lifetime Value (LTV). Answer: LTV= ARPA/CUSTOMER CHURN RATE

9. This is what pricing should look like. Constant iteration. Answer: Wistia has continually updated their
pricing and value metrics throughout their existence.

10. What is LTV . Answer: Lifetime value

1. The ______ represents the ideal value of the value metric to the customer within each package

A. Pricing
B. Positioning

C. Packaging

D. Plan

Answer: A

2. A value metric acts as the main component of your different packages and as the headline that
differentiate them?

A. Pricing

B. Positioning

C. Packaging

D. Plan

Answer: C

3. The correct value metric allow you to align your product to different segments of the market and
support them as they grow.

A. Pricing

B. Positioning

C. Packaging
D. Plan

Answer: B

4. What is the key to pricing?

a) Quantity

b) Simplicity

c) Quality

d) Value

ANSWER : B

5. What are the 3Ps in Pricing?

a) Positioning, Pricing, Packaging

b) Positioning, Promoting, Packaging

c) Performance, Pricing, Packaging

d) Positioning, Promoting, Performance

ANSWER : A
True or False

1. In VALUE METRICS, you've got to decide not only how much to charge, but what you're charging for.
FALSE - Saas Pricing

2. POSITIONING A value metric acts as the main component of your different packages and as the
headline that differentiates them. FALSE - PACKAGING

3. The only way to drill down to this ideal alignment between company and customer is through
“Barking”. Put your value metric out there and see how it performs with real customers. FALSE- TESTING

4. Constantly implement and test different ideas. This iteration should never end. TRUE

5. The PRICING represents the ideal value of the value metric to the customer within each package -
TRUE