4.0 Exam- Kuralt 12/11/2015

1. Which pricing strategy sets prices lower than those of the competition? A. Smoothing B. Stretching C. Penetration D. Skimming

2. When prices go up or down, the change can affect how much of the sport/event product customers purchase. This is a general of A. elasticity B. market segmentation. C. smoothing. D. "total cost."

3. Why might a sport/event organization price entry fees for a marathon below the normal rate? A. To establish their event as "luxury" B. To encourage maximum participation C. To create profits D. To meet competitors prices

4. Which of the following is a company-focused pricing objective for sport/event products: A. Offering the most discounts to customers B. Offering the lowest prices C. Enhancing image D. Achieving a price customers feel is "fair"

5. Which of the following is a tangible benefit of purchasing a surfboard: A. It is the most popular brand on the market. B. It gives you the opportunity to join a surfing club. C. It allows you to spend time with your friends at the beach. D. It has a wrist strap to keep it connected to you in the water.

6. In sports and entertainment marketing, the concept of price includes not only the cost of a ticket to an event but also the A. value of the overall experience. B. quality of the media advertising. C. elements of the marketing plan. D. location of the facility.

7. The additional cost of paying for parking and buying refreshments and programs is part of the overall ____________ of attending a concert. A. benefit B. price C. goal D. value

8. Wintergreen Ski Area knows that the area will be most successful if it bases its pricing structure on A. costs associated with renovations. B. what the market will bear. C. total cost of the experience. D. inelastic demand for skiing.

9. Yield management is a way that sport/event marketers address product pricing issues when they want to maximize revenue but have A. below-market stock value. B. unallocated resources. C. limited capacity. D. few distribution intermediaries

10. Which of the following is not a reason that pricing is the most critical element of the marketing mix: (4 points) a. It is the least visible element of the mix. b. It communicates even more than advertising. c. It can be changed instantly. d. It is a top concern of customers.

11. A customer’s opinion of the value of a sport/event product is based on a. advertising. c. perceived benefits. b. education. d. price.

12. Which of the following is an intangible benefit of purchasing a sport watch: a. It fits comfortably on your wrist. c. It allows you to time your daily run. b. It’s your favorite color. d. Your friends will be impressed by it.

13. Which of the following is a tangible benefit of purchasing a surfboard: (4 points) a. It has a wrist strap to keep it connected to you in the water. b. It is the most popular brand on the market. c. It allows you to spend time with your friends at the beach. d. It gives you the opportunity to join a surfing club.

14. Pricing sport/event products is unique because of the (4 points) a. wide variety of products. c. intangible benefits. b. tangible benefits. d. extremely high demand.

15. Pricing objectives are important because they determine (4 points) a. perceived benefits. c. “total cost.” b. pricing strategies. d. market demand.

16. Which of the following is a company-focused pricing objective for sport/event products: (4 points) a. Achieving a price customers feel is “fair” b. Offering the lowest prices c. Offering the most discounts to customers d. Enhancing image

17. Why might a sport/event organization price entry fees for a marathon below the normal rate? (4 points) a. To meet competitors’ prices c. To encourage maximum participation b. To establish their event as “luxury” d. To create profits

18. Which member of the distribution channel has the biggest impact on the price of a sport/event product? (4 points) a. Retailer c. Wholesaler b. Manufacturer d. Customer .

19. Which of the following is an effect of distribution on the price of a sport/event product: (4 points) a. Prices are lower for convenience. c. Prices are higher in nontraditional channels. b. Prices are higher at retail stores. d. Prices are lower for better facilities

20. Rent, equipment, salaries, and maintenance are expenses known as __________ costs. (4 points) a. variable c. stable b. total d. fixed

21. Materials, packaging, and advertising are expenses known as __________ costs. (4 points) a. variable c. unstable b. total d. fixed

22. Customers are more likely to buy sport/event products at lower prices rather than higher ones. This is a general rule of (4 points) a. market segmentation. c. promotion. b. market demand. d. competition.

23. When prices go up or down, the change can affect how much of the sport/event product customers purchase. This is the general principle of (4 points) a. market segmentation. c. elasticity. b. “total cost.” d. smoothing.

24. Ticket prices for the World Series increase dramatically, but all the games still sell out. The price change had little to no impact on sales. This is an example of __________ demand. (4 points) a. elastic c. smoothing b. unitary d. inelastic

25. A hockey team raises prices for soft drinks at its arena by 25 cents per cup. They sell half as many soft drinks as they did before the price change. The small price change had a big impact on sales. This is an example of __________ demand. (4 points) a. elastic c. smoothing b. unitary d. inelastic

26. At the end of the season, a ski lodge drops the prices for ski rentals by a few dollars. They see a slight increase in the number of ski rentals during that time. The change in price created a proportionate change in sales. This is an example of __________ demand. (4 points) a. elastic c. smoothing b. unitary d. inelastic

27. Technology affects sport/event product prices by (4 points) a. raising them. c. both raising and lowering them. b. lowering them. d. making them unstable.

28. A sport/event company wants to promote bobble-head dolls to men in their thirties who love basketball. This group is known as a __________ segment. (4 points) a. customer c. demand b. distribution d. market

29. Which of the following is a demographic characteristic: (4 points) a. Ethnicity c. Motives b. Area of residence d. Interests

30. Which of the following is a psychographic characteristic: (4 points) a. Occupation c. Age b. Opinions d. Gender

31. Charging different prices to different people is not illegal if the product is a (4 points) a. sport/event product. c. service. b. sale item. d. good.

32. Which pricing strategy groups a sport/event product into different segments for customers? (4 points) a. Penetration c. Stretching b. Skimming d. Smoothing

33. Which pricing strategy sets prices lower than those of the competition? (4 points) a. Penetration c. Stretching b. Skimming d. Smoothing

34. Which pricing strategy sets prices higher than those of the competition? (4 points) a. Penetration c. Stretching b. Skimming d. Smoothing

35. Conventional thinking, tried-and-true ways of doing things can be described as: a. exciting. b. ineffective. c. “inside the box.” d. “out of the box.”

36. Which of the following is an example of a sales promotion: (4 points) a. A 50-percent-off coupon b. A television commercial c. A personalized sales presentation d. A press release

37. Something that will fulfill a customer’s specific desire or need is a(n): a. rebate. b. “out-of-the-box” idea. c. advertisement. d. incentive.

38. Sales promotion is a major part of sport/event marketing because (4 points) there aren’t very many sport/event customers. b. the industry is so highly competitive. c. the most important task in sport/event marketing is ticket sales. d. the industry can get very boring.

39. Which of the following is not a benefit of “out- of-the-box” sales promotions: (4 points) a. Your game/event stands out from the competition. b. You will break all previous ticket sales records. c. People get excited about attending your game/event. d. Your game/event has positive publicity

40. What is the first thing you should understand when setting out to develop “out-of-the-box” sales promotion ideas for your game/event? (4 points) a. There is no way to be prepared for inspiration. b. You need a certain amount of education to do so. c. You need a certain amount of experience to do so. d. There is no particular source or technique.

41. Brian needs to generate some “out-of-the-box” sales promotion ideas for an upcoming tennis tournament. He’s not sure how to start, but he does know that the tournament’s marketers want to reach the 18-to-35-year-old crowd. How is Brian prepared for inspiration? (4 points) a. He knows his target market. b. He knows his competition. c. He’s putting a new twist on an old idea. d. He’s brainstorming.

42. Shannon needs to generate some “out-of-the-box” sales promotion ideas for the concert tour she works on. She’s not sure how to start, but she knows that a competitor’s concert tour had great success last year with ticket contests on local radio stations. How is Shannon prepared for inspiration? (4 points) a. She knows her target market. b. She knows her competition. c. She’s putting a new twist on an old idea. d. She’s brainstorming.

43. Marcus needs to generate some “out-of-the-box” sales promotion ideas for the WNBA team he works for. Last year, they placed coupons in the local paper, but Marcus is afraid that promotion might be ineffective if they try it again. Instead, he’s thinking of creating a “coupon scavenger hunt” that sends fans all over town searching for free and discounted tickets. How was Marcus prepared for inspiration? (4 points) a. He knows his target market. b. He knows his competition. c. He’s putting a new twist on an old idea. d. He’s brainstorming

44. Chelsea needs to generate some “out-of-the-box” sales promotion ideas for a charity walk/run event, but she’s stuck. So she gathers all her colleagues together for a 30-minute meeting, and asks them to share as many ideas as they can during that time frame. How is Chelsea prepared for inspiration? a. She knows her target market. b. She knows her competition. c. She’s putting a new twist on an old idea. d. She’s brainstorming

45. Josh works in marketing for a senior citizens’ golf league 45. Josh works in marketing for a senior citizens’ golf league. He suggests an “out-of-the-box” sales promotion in which league participants receive discount coupons to the local water park, but his boss doesn’t think that’s such a good idea. What question did Josh fail to ask himself about his idea? (4 points) a. What is the incentive I’m offering? b. Is this sales promotion creative? c. Does this sales promotion fit with the overall marketing plan? d. Does this sales promotion reach my target audience?

46. The football team that Kandace works for is in desperate need of some positive publicity. Kandace comes up with an “out-of-the-box” sales promotion idea that involves offering discount tickets through local grocery stores. Her boss tells her that while the promotion may work, it doesn’t generate the excitement they need for better public relations. What question did Kandace fail to ask herself about her idea? (4 points) a. What is the incentive I’m offering? b. Is this sales promotion creative? c. Does this sales promotion fit with the overall marketing plan? d. Does this sales promotion reach my target audience?

47. When you ask, “What does this sales promotion offer to customers 47. When you ask, “What does this sales promotion offer to customers?” which step in the process of generating “out-of-the-box” sales promotion ideas are you completing? (4 points) a. Determine creativity. b. Determine incentive. c. Determine delivery. d. Determine how to get the news out.

48. When you ask, “How will my customers receive this sales promotion 48. When you ask, “How will my customers receive this sales promotion?” which step in the process of generating “out-of-the-box” sales promotion ideas are you completing? (4 points) a. Determine creativity. b. Determine incentive. c. Determine delivery. d. Determine how to get the news out.

49. When you ask, “How will my customers know about this sales promotion?” which step in the process of generating “out-of-the-box” sales promotion ideas are you completing? (4 points) a. Determine creativity. b. Determine incentive. c. Determine delivery. d. Determine how to get the news out.

50. Which of the following is a consideration when implementing a ticket sales campaign: A. Name recognition B. Seating arrangement C. Immediate accessibility D. Organized hospitality

51. When you ask, "How will my customers receive this sales promotion 51. When you ask, "How will my customers receive this sales promotion?" which step in the process of generating "out-of-the-box" sales promotion ideas are you completing? A. Determine how to get the news out. B. Determine creativity. C. Determine incentive. D. Determine delivery.

52. When you ask, "What does this sales promotion offer to customers 52. When you ask, "What does this sales promotion offer to customers?" which step in the process of generating "out-of-the-box" sales promotion ideas are you completing? A. Determine how to get the news out. B. Determine creativity. C. Determine delivery. D. Determine incentive.

53. Brian needs to generate some "out-of-the-box" sales promotion ideas for an upcoming tennis tournament. He's not sure how to start, but he does know that the tournament's marketers want to reach the 18-to-35-year-old crowd. How is Brian prepared for inspiration? A. He knows his target market. B. He knows his competition. C. He's putting a new twist on an old idea. D. He's brainstorming.

54. What is the first thing you should understand when setting out to develop "out-of-the-box" sales promotion ideas for your game/event? A. You need a certain amount of experience to do so. B. There is no way to be prepared for inspiration. C. You need a certain amount of education to do so. D. There is no particular source or technique.

55. Sales promotion is a major part of sport/event marketing because A. the most important task in sport/event marketing is ticket sales. B. there aren't very many sport/event customers. C. the industry is so highly competitive. D. the industry can get very boring.

56. Which of the following is one of the main features of a sport product: A. Franchises B. Athletes C. Tickets D. Extensions

57. One of the features of sports events such as football games is that they are A. impulsive. B. consistent. C. unpredictable. D. tangible.

58. To increase revenue, professional baseball and football teams often sell advertising that appears A. on national television. B. in local magazines. C. on the back of tickets. D. in community newspapers.

59. Which of the following is an example of a business using a celebrity's appearance to attract customers to an event: A. An actor stars in the lead role of a film that is based on a best-selling novel. B. A professional athlete announces her/his plans to retire within six months. C. An athletic-shoe company distributes a press release about a new endorsement deal. D. A rock star signs copies of his/her latest CD at a store's

60. What do businesses often include with a news release to attract an editor's attention: A. Promotional souvenir B. Captioned photograph C. Reference list D. Thank-you letter

61. One reason sport/event organizers often plan a day to give the media an opportunity to visit the site in advance is to encourage the media to A. set up broadcast equipment. B. pick up their credentials. C. publicize the preparations. D. hold a press conference.

62. What do sport/event planners often develop to encourage television and newspaper coverage? A. Sales promotions B. Local contests C. Media guides D. Creative themes

63. Why is it important for professional sport organization to develop relationships with the media? A. To maximize favorable news and event coverage B. To reduce the need to obtain alternate sources of income C. To obtain endorsement deals with professional athletes D. To prevent the release of information to the public

64. Which of the following is an advantage to a sport organization that develops an interactive relationship with the broadcast and print media: A. Ensures confidential information exchanges B. Decreases the need for a public-relations plan C. Builds mutually favorable relationships D. Reduces organizational crisis risks

65. Following a rash of newspaper criticism for being overpaid, a multimillion-dollar athlete signed up to be a volunteer spokesperson for Special Olympics. What was the athlete attempting to accomplish by promoting this move to the press? A. Obtain a tax deduction B. Attract a new sponsor C. Gain more income D. Overcome negative publicity

66. Sport/event organizations develop and generate newsletters to A. communicate with the public B. notify the media C. obtain feedback from sponsors D. prepare for problems.

67. To develop positive relationships with the media, an advertising agency's public-relations director must be A. impressionable and suspicious. B. honest and professional. C. organized and distant. D. approachable and aggressive.

68. Developing positive relationships with people who work for local television stations and newspaper publishers is a way for an advertising agency to generate _______ for its clients. A. new markets B. cash C. sales promotion D. publicity

69. When sport/event marketers use ongoing, two- way communication to build trust and goodwill with the media, they are creating a(n) ____________ relationship. A. comprehensive B. interactive C. reactive D. exclusive

70. When writing news releases, businesses should avoid including their A. opinions. B. statistics C. goals. D. locations.

71. Ms. Johnson did not proofread a news release before it was mailed to the media, and several errors were found later. In order to minimize the damage that may result, Ms. Johnson should A. wait for the media to contact the business B. say nothing, but proofread future releases C. ask another employee to handle the problem D. call the media to give the correct information

72. What information should a business obtain to get its news releases used? A. Advertising rates B. Publisher's name C. Media deadlines D. Network affiliation

73. What do businesses need to remember after they send a news release to the media? A. The business should continuously are willing to publish all the news releases they receive. B. Most magazines and newspapers are willing to publish all the news releases they receive. C. Media outlets will only use press releases for businesses that purchase advertising. D. The editor decides whether to publish or broadcast the release.

74. Which of the following do event organizers often include in an event to add interest and excitement to the event: A. Dress rehearsal B. Long intermission C. Celebrity appearance D. Sponsor recognition

75. When a sport organization employee creates a promotional script for a sport announcer to read during a pregame award ceremony, the employee should A. include a joke in the introduction to capture the audience's attention. B. number the copy pages in reverse chronological order. C. make sure the final copy is single-spaced and the typeface is bold. D. identify name pronunciations that might be difficult to read.

76. What do professional sport teams design for use during games that often become promotional tools because fans take them home? A. Posters B. Tickets C. Programs D. Samples

77. The purpose of designing an event program that contains space for advertisements is to A. promote the team. B. get more people to buy the program. C. generate more revenue D. pay less money for program printing costs.

78. When attending a sporting event, most fans expect that the facility will provide them with a(n) A. learning situation. B. winning experience. C. safety environment. D. ordinary performance.

79. A stadium designed with more female rest rooms than male rest rooms is responding to which of the following customer expectations. A. Adequate facilities B. Aesthetics C. Dedication usage D. Sense of safety