2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 1 1. An advantage to a sport/event business of filing bankruptcy is that the process often allows the business to A. reorganize. C. eliminate taxes. B. increase profit margins. D. sell assets.
2. Which of the following is a total ban on exporting certain types of sporting goods and exercise equipment: A. Embargo B. Tariff C. Quota D. Inspection
3. A concert facility was fined $1 million for dumping toxic waste in the local river. What federal environmental regulation did the facility violate? A. Clean Water Act C. Food Quality Act B. Clean Air Act D. Endangered Species Act
4. What would be the most cost effective and efficient means of distributing large quantities of golf balls and golf tees throughout a geographic region? A. Air carriers B. Rail carriers C. Water carriers D. Motor carriers
5. Technological advancements have made it possible for some sporting-good manufacturers to communicate directly with customers, which reduces the need to use A. warehouse personnel. C. suppliers. B. intermediaries. D. freight carriers.
6. Which of the following is a legal requirement of most governments that has an impact on distribution: A. Export license C. Sales contract B. Insurance coverage D. Credit approval
7. In the sport/event industry, horizontal conflict occurs among channel members that are ______of the channel. A. on different levels C. at a low level B. at the same level D. on high levels
8. To make a request of a business associate or customer is one of the reasons why sport/event marketing employees write A. persuasive messages. C. sales letters. B. letters of inquiry. D. corporate memorandums.
9. Which of the following is often the most effective way of giving instructions for completing job tasks: A. Negotiation B. Persuasion C. Demonstration D. Comparison
10. What should sport/event businesses avoid doing in order to be ethical when providing information about services to customers? A. Overproducing B. Overdelivering C. Overeducating D. Overpromising
11. When Brian got his job at FunTime Amusement Park, he made sure he knew how to use the cash register, became familiar with all the parks services and prices, and kept his work station very organized. In which way did Brian demonstrate the customer-service mindset? A. Following-through C. Following-up B. Being efficient D. Being accurate
12. How can a sporting-goods salesperson try to reduce the number of customer complaints about the products customers buy? A. By approaching customers as soon as possible C. By identifying the customer's real needs B. By using high-pressure selling techniques D. By advising the customer from personal experience
13. How can sport/event organizations distribute large quantities of pocket schedules in a cost-efficient manner? A. Mail to all residences and businesses within a 100-mile radius B. Deliver in person to individual residences and businesses C. Ask local retailers and vendors to distribute them to their customers D. Have managers distribute them to employees 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 2
14. What economic activity examines how money payments are divided between resource owners and producers? A. Exchange C. Distribution B. Consumption D. Production
15. Roe's Sporting Goods sews custom team uniforms for local sports teams by allowing customers to choose from various styles, colors, logos, and numbering for their uniforms. What type of utility is Roe's Sporting Goods demonstrating? A. Possession C. Time B. Place D. Form
16. A sport/event manager who helps an employee decide when and where products should be delivered performs which management function? A. Staffing C. Directing B. Controlling D. Organizing
17. A major problem for individuals and private businesses in a socialist command economy is A. profit. C. competition. B. state-owned businesses. D. taxes.
18. Why do some governments set very high taxes on certain products? A. To make the items more appealing C. To increase profits for businesses B. To limit the sale of those items D. To encourage more production
19. When sport/event businesses compete by offering consumers higher quality products, increased customer service, and attractive facilities, they are engaging in ______competition. A. price C. pure B. nonprice D. direct
20. Why do governments usually calculate the unemployment rate on a monthly basis? A. To prepare for receiving less tax money C. To determine which businesses are failing B. To help workers find new jobs D. To detect changes in the economy
21. The owner of Eckel's Sporting Goods has asked the manager to open another branch of the store. What phase of the business cycle would be most likely to benefit this new branch? A. Contraction B. Expansion C. Trough D. Peak
22. Which of the following is a process that an athletic department's employees might use to develop political relationships within an organization: A. Counseling B. Compromising C. Negotiating D. Networking
23. Employees who work in the sport/event industry can cope more easily with authoritarian leaders by developing A. creativity. B. assertiveness C. initiative. D. patience.
24. Consensus building is a process that often enables a group to A. create a stalemate. C. express an attitude. B. reach an agreement. D. define a philosophy.
25. What might sport-marketing businesses offer customers in an effort to collect past-due accounts? A. Additional credit card C. Revised payment plan B. Financial planning course D. New installment loan
26. To purchase equipment for his fitness center, Juan Rodriguez signed a promissory note for a loan. In this credit arrangement, Juan is the A. depositor. B. creditor. C. lender. D. borrower.
27. In order to open her sporting-goods business, Ali is borrowing $275,000 from a bank. So Ali understands the terms of the loan, the bank outlines the terms in a formal agreement and requires Ali to sign it. This is an example of a financial A. warranty. B. contract. C. proposal. D. referral. 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 3
28. Which of the following is an example of a lending investment: A. Antiques B. Homes C. Bonds D. Stocks
29. The Chrysler Theater is hosting the road show of "Annie." In which of the following cases would the theater be liable for damages: A. A guest trips on loose carpet in the hallway and sprains an ankle. B. During intermission, one attendee accidentally spills a drink on someone. C. An attendee's car parked in a city lot gets broken into during the performance. D. People complain that the theater-goers in front of them blocked their view of the show.
30. When preparing a cash-flow statement, an amusement park would list the liquidation of assets as A. sales. B. income. C. utilities. D. expenses.
31. A bicycle repair-shop owner developing an operating budget has determined that total expenses for the year will be $42,500. If the owner wants to have a gross profit of $36,000, what amount of sales should be forecast? A. $76,500 B. $78,500 C. $81,000 D. $82,000
32. What do sport-marketing businesses often calculate to determine if their output is generating an adequate amount of profit? A. Marginal revenue C. Inventory level B. Interest rate D. Tax liability
33. When interviewing job applicants for a sport/event marketing position, it is often necessary for the interviewer to A. verify information listed on the resume. C. select the most qualified candidate. B. ask the applicant to fill out a tax form. D. plan an appropriate orientation program.
34. As manager of event services, you are responsible for terminating a long-time employee whose position is being eliminated due to changes in technology. The best way to handle this situation is to A. explain the situation in such a way that is not threatening. B. write the employee a dismissal letter. C. offer to help the employee find another job. D. ask the employee to assist in the training of a replacement.
35. Why should you give sport-marketing employees meaningful tasks from the beginning? A. To discourage interest in the job C. To identify problem areas B. To make them feel productive D. To summarize the day's activities
36. Which of the following could be used to encourage an athletic organization's employees to communicate their dissatisfactions to management: A. Right-to-work laws C. Strikes B. Suggestion boxes D. Contracts
37. Which of the following is true of a sport/event organization's marketing-information management system: A. It can provide relevant, accurate, and timely information. B. It can prove valuable at just one point in time. C. It is obsolete and does not meet the needs of marketers. D. It generally disrupts the marketing process.
38. When obtaining marketing information from customers, it is unethical for a sporting-goods store to neglect to tell customers A. how the information will be used. C. the monetary value of the information. B. where the information will be stored. D. the relevance of the information.
39. Athletic organizations can retrieve external marketing data by accessing A. web-based information services. C. accounts receivable summaries. B. computer-generated sales reports. D. inventory management records. 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 4
40. An individual wishing to start a golf practice range identifies the location of potential customers and the location of all competitors in order to A. recruit qualified employees. C. obtain a bank loan. B. identify necessary equipment. D. assess a trading area.
41. To determine how research data relate to the questions that have been raised, a sport/event marketing researcher must ______the situation. A. observe B. analyze C. survey D. experiment with
42. Why would a manager include frequency tables in a marketing report that will be distributed to many departments in the sporting-goods chain? A. To analyze the cost of conducting research C. To compile a list of recommendations B. To further explain technical information D. To graphically depict various statistics
43. Entertainment marketers should identify their target markets after they have carefully examined A. past ticket sales records for similar events. B. available data and research about the segment. C. retired people with discretionary income. D. customized products that fit the needs of the market.
44. Which of the following is a question that the marketing-information management function can help fitness centers answer: A. Where are customers located? C. What is the image of the business? B. What new products should be developed? D. Where will supplies be stored?
45. Which of the following should sport-apparel retailers consider when determining whether it is cost effective to extend or reduce operating hours: A. Periods when sales are strong or weak C. Operating hours of local competitors B. Type and variety of products available D. Number of people walking by the store
46. Which of the following does not indicate a need to change marketing strategies: A. Actions of competitors C. Stable economic conditions B. Advancement in technology D. Changes in consumer attitudes
47. When Yvette began making plans to open Yvette's Gymnastics Instruction, she decided to offer her services to children ages 4-14. This process is known as ______segmentation. A. psychographic B. market C. geographic D. behavioral
48. What does a sport/event business develop during the marketing planning process? A. Advertisements B. Strategies C. Products D. Prospects
49. Sport/Event marketers should check on their markets periodically because markets can A. fail. B. advance. C. lead. D. change.
50. Which of the following factors should a fitness center consider when conducting a comprehensive market analysis: A. Segment size, competitors, and demand C. Policy, frequency, and segment size B. Strategy, demand, and frequency D. Competitors, policy, and reach
51. Which of the following is an economic factor that a sport/event marketer should consider before entering a foreign market: A. Customs B. Infrastructure C. Values D. Age
52. The primary reason for a snow-ski manufacturer to forecast sales is to obtain information to use in A. business planning. C. staff training. B. advertising copy. D. evaluating salespersons. 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 5
53. Which of the following marketing-plan objectives might provide the most increase in revenue for a sport-apparel distributor: A. Decrease the salaries of all employees by 10% B. Reach more customers to increase sales by 20% C. Increase prices by 50% across the board D. Impose a 5% surcharge on customers who pay on credit
54. As a result of evaluating the performance of its marketing plan, a swim and racquet club might decide to make changes if it discovers that the A. people are renewing memberships. C. regulations are not being enforced. B. objectives are not being achieved. D. employees are working to capacity.
55. To conduct an effective marketing audit, a sporting-goods retail chain should use a systematic and ______approach. A. comprehensive B. general C. objectionable D. sensitive
56. One reason for a treadmill manufacturer to monitor its internal records is to obtain information that it can use to A. understand global economic conditions. C. handle employee problems and complaints. B. track the activities of its competitors. D. make decisions about future operations.
57. A basketball team wins a postseason playoff game and proceeds to play another team for the regional championship. In what type of tournament is the basketball team participating? A. Heat C. Multistage B. Tri-level D. Scramble
58. Why do event organizers develop production schedules? A. To organize rehearsals prior to the day of the event B. To outline all of the activities needed to prepare for the event C. To arrange for the media to broadcast the event D. To analyze safety and health considerations for the event
59. Requiring employees to wear appropriate clothing on the job is one way that a sport-equipment manufacturer can maintain a(n) A. comfortable atmosphere. C. industrial image. B. safe work environment. D. sanitary facility.
60. The function performed by a sport/event marketer in obtaining goods to be resold is A. credit. B. exchange. C. purchasing. D. management.
61. One way for a basketball arena to determine if it is operating in the most efficient manner is to A. develop a list of financial objectives. C. hire an international tax consultant. B. distribute a survey to its competitors. D. evaluate its systems and procedures.
62. A fitness center that inspects its equipment on a regular basis is practicing A. vendor analysis. C. form utility. B. preventive maintenance. D. physical inventory.
63. A fitness center should help employees to prevent accidents and injuries by providing A. a convenient lunch room. C. attractive furnishings. B. a comfortable lounge area. D. a safe work environment.
64. Why do sport/event marketers send representatives to trade shows? A. To identify competitors C. To visit associates B. To meet new vendors D. To contact employees 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 6
65. Determine whether the following statement is true or false: Most people have the same kind of work style. A. False, work style has been divided into categories. B. False, each individual has a work style of his/her own. C. True, most people do their best work in the morning. D. True, most people approach tasks in the same way.
66. Many governments develop laws that restrict business practices involving the sale of goods below cost. The purpose of this form of legislation is to prevent ______pricing. A. predatory B. inflationary C. markdown D. competitive
67. What are sporting-goods businesses responding to when they change their selling prices to correspond to changes in what customers can afford to buy? A. Market share B. Elastic demand C. Product mix D. Economic growth
68. 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. A. inelastic B. unitary C. smoothing D. elastic
69. A sport/event business might decide to offer certain products to customers if other businesses are successfully selling those products. This is an example of marketing being affected by a product's A. brand name. B. life cycle. C. intended use. D. main feature.
70. Which of the following technological tools helps a sport-apparel business's employees simultaneously access the same information about the business's products: A. Memory card B. Micro-portal C. Intranet D. Generator
71. A sport/event marketer can continuously and systematically obtain information about consumers' wants and needs by establishing A. positioning strategies. C. flexible marketing objectives. B. comprehensive business plans. D. opportunity recognition processes.
72. Tim, a salesperson for Sport-O Goods Company, is required to contact at least 15 prospects every week. What type of standard is this? A. Quality B. Cost C. Time D. Quantity
73. To make sure that all tasks have been completed and an event is ready for attendees, sport/event marketers might refer to their A. inventory agenda. C. guest list. B. production checklist. D. function sheets.
74. A baseball organization gathers its sales and marketing teams together to generate new ideas for goods and services. This technique is often called A. psycho-stimulation. C. mind mapping. B. brainstorming. D. idea screening.
75. Which of the following product mix strategies is a sporting-goods manufacturer using when it makes changes to aspects of its product items, such as packaging or pricing: A. Collaboration B. Contraction C. Expansion D. Alteration
76. When a sport/event marketer takes an existing product and increases its user-friendliness, the sport/event marketer is fulfilling its customers' needs by a process called product A. certification. B. classification. C. modification. D. mollification.
77. When positioning a product, a sport/event business should consider the target market's A. strategies. B. wants. C. policies. D. benefits. 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 7
78. Consumers often look for familiar brands to buy because of the brands' A. market share. B. predictable quality. C. product category. D. descriptive names.
79. Athletes are often considered to be particularly effective promoting products related to their A. sport. B. background. C. education. D. lifestyle.
80. Under which of the following circumstances should the supply of employees increase: A. There are few members working out in a fitness center. B. A sporting-goods store is closed for the day. C. There is a high demand for customer service. D. A ski resort is in an off-season.
81. A reason to legally research possible brand names is to A. ensure that the name is adaptable to displays, signage, and advertising. B. avoid selecting a name that is unpleasant. C. make sure the name will stimulate customers' buying habits. D. avoid selecting a name already in use by another business.
82. More sport/event marketers are installing and using kiosks to promote their goods and services because this form of technology is A. interactive. B. generic. C. portable. D. seasonable.
83. What part of a print ad may vary in length from a few words to several paragraphs? A. Copy B. Slogan C. Layout D. Type
84. The copy of a sporting-goods print advertisement should focus on the A. products' benefits. C. products' features. B. promotional mix. D. promotional objectives.
85. Which of the following is an example of direct advertising: A. A retailer conducts a telephone survey to determine its customers' satisfaction with its services. B. A professional football team develops an advertising campaign that includes television spots and billboards. C. A soft-drink company places an advertisement on television during a major sporting event. D. A sports apparel company mails its latest catalog to customers who have ordered items within a year.
86. When developing a direct mail offer for sport/event products, it is important that the mailing piece be A. designed to attract attention. C. addressed in an impersonal way. B. printed on expensive paper. D. sent to everyone in the area.
87. The employees of a sport/event organization often generate publicity about a performer, event, or organization by A. talking with family and friends. C. attending staff meetings. B. developing an office memo. D. conducting follow-up surveys.
88. A university's athletic department preparing stories about the football players to send to their hometown newspapers in order to develop community support is an example of a ______plan. A. public relations C. sales promotion B. direct advertising D. corporate sponsorship
89. Which of the following do event organizers often include in an event to add interest and excitement to the event: A. Sponsor recognition C. Dress rehearsal B. Long intermission D. Celebrity appearance
90. Why is it important for sport/event marketers to coordinate their promotional activities? A. To achieve their objectives C. To organize their products B. To evaluate their policies D. To control their inventories 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 8
91. Dan, a golf-store employee, makes sure that as he is interacting with customers, he is also actively listening in order to better respond to their questions and objections. Which characteristic of a successful salesperson does Dan display? A. Communication skills C. Persistence and patience B. Ethics D. Education and training
92. Which of the following is a function of customer service that fitness-equipment salespeople can use to build relationships: A. Telephoning daily C. Showing appreciation B. Entertaining often D. Evaluating performance
93. Which of the following might be considered an unethical way for a sporting goods distributor to deal with its salespeople: A. Monitoring profitability of each territory C. Terminating a salesperson for poor performance B. Turning a major account into a house account D. Expecting salespeople to reach a certain quota
94. The color of a running shoe is an example of one of the shoe's A. standards. B. features. C. benefits. D. purposes.
95. When a customer is closely examining or is holding a golf club, the most effective sales approach to use to direct immediate attention to that golf club is the ______approach. A. welcome B. greeting C. merchandise D. service
96. If a customer purchases a pair of Nike shoes, and the salesperson suggests a pair of Nike socks, the salesperson has suggested a ______product. A. related B. new C. substitute D. higher priced
97. Never take a sponsorship presentation past ______minutes. A. 45 B. 20 C. 35 D. 30
98. Which of the following actions would help a sports marketer to prevent financial losses when exchanging a customer's foreign currency: A. Ask the customer to exchange a foreign check instead of paper currency B. Require the customer to guarantee the exchange with a credit card C. Base the exchange on current currency rates D. Make sure a letter appears at the end of the serial number on the currency
99. Tara is a cashier at Thomson's Sporting-Goods Store. Before accepting a customer's personal check, Tara should take which of the following precautions: A. Ask for identification C. Make a call to the bank B. Ask for a handwriting sample D. Require a two-party check
100. In order to meet the needs of its market, a professional hockey team must study local demographics, which are the A. government regulations that apply to the industry. C. trends in technological advances. B. current and predicted economic conditions. D. physical/social characteristics of the population. 2007 DECA Ontario Regionals SMDM Test 938 SPORTS AND ENTERTAINMENT MANAGEMENT DECISION MAKING 9 1. A Reorganize. Depending on the location of the sport/event business, there are many forms of bankruptcy. An advantage to a sport/event business of filing bankruptcy is that the process allows the business to reorganize in an attempt to keep operating. Sport/event businesses that are unable to pay their debts but think that they can become solvent by reorganizing, may have to file for a specific type of bankruptcy with the government. As a result, they have time to restructure or find additional financing to pay creditors. Filing bankruptcy does not necessarily increase the sport/event business's profit margins. Filing bankruptcy does not eliminate the obligation to pay taxes. As part of reorganizing, a sport/event business might sell certain assets to generate income to pay creditors. However, selling assets is not usually considered an advantage. SOURCE: BL:001 SOURCE: Jennings, M.M. (2000). Business: Its legal, ethical and global environment (5th ed.) [pp. 480-481]. Cincinnati: West Legal Studies in Business, South-Western College Publishing.
2. A Embargo. An embargo is a total ban on specific sporting goods and exercise equipment leaving or entering a country. A tariff is a tax on imports. A quota limits the amount of a good that can be imported or exported. Inspections of imported goods are sometimes used as a trade barrier to slow down the importation of certain products and potentially raise the price. SOURCE: BL:004 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 101-102]. Woodland Hills, CA: Glencoe/McGraw-Hill.
3. A Clean Water Act. The company violated the Clean Water Act by dumping toxic waste into a river. The Clean Air Act regulates emissions and other air pollutants. The Food Quality Act regulates the quality of the food supply. The Endangered Species Act protects animals, fish, and birds in danger of becoming extinct. SOURCE: BL:073 SOURCE: Jennings, M.M. (2000). Business: Its legal, ethical and global environment (5th ed.) [pp. 355-357]. Cincinnati: West Legal Studies in Business, South-Western College Publishing.
4. D Motor carriers. Businesses consider the kind of product when making distribution decisions. Businesses distributing large quantities of small-sized products, such as golf balls and golf tees, probably would use trucks or other motorized vehicles because they are faster than rail or water carriers and less expensive than air carriers. Rail carriers are used to haul heavy, bulky goods. Water carriers are a slow means of transporting bulky products. Air carriers are an expensive way of handling fragile, perishable, or emergency shipments. SOURCE: CM:001 SOURCE: DS LAP 1—Distribution
5. B Intermediaries. Intermediaries are distribution channel members operating between the producer and the consumer or industrial users to help in the movement of goods and services. For example, sports enthusiasts can order sporting goods from some manufacturers' web sites. Prior to the Internet, customers had to purchase certain sporting goods by going to "bricks and mortar" retailers. Technological advancements have not reduced the need for suppliers. Manufacturers still need raw materials to produce their goods. Technological advancements have not necessarily reduced the need to use warehouse personnel and freight carriers in relation to communicating with customers. SOURCE: CM:004 SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics: A supply chain perspective (7th ed.) [p. 460]. Mason, OH: South-Western. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 10
6. A Export license. Many distribution businesses export products to other countries. To do this legally, businesses usually are required by law to obtain an export license that gives them the right to ship products out of the country. Depending on the country of origin, the license may be general and not include specific restrictions. However, some countries have restrictive export licenses that limit the type of products that may be exported. The need for an export license impacts distribution because it may control what a business may legally export. Insurance coverage, sales contract, and credit approval are not legal requirements that impact distribution. SOURCE: CM:005 SOURCE: Coyle, J.J., Bardi, E.J., & Langley, C.J. (2003). The management of business logistics: A supply chain perspective (7th ed.) [p. 390]. Mason, OH: South-Western.
7. B At the same level. Horizontal conflict occurs among channel members that are at the same level of the channel. These members usually are distributors (e.g., sporting goods) for the same organization and are selling within an assigned territory. Conflict often occurs when one or more channel members attempt to cut prices and lure customers away from other channel members. Vertical conflict occurs when there is disagreement between different levels of the same channel. In vertical conflict, the members may be at a low level or at a high level. The distinguishing characteristic is that they are on different levels. SOURCE: CM:008 SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 444-445]. Mason, OH: Thomson/South-Western.
8. B Letters of inquiry. The function of a letter of inquiry usually is to make a request. Businesspeople, such as sport/event marketing employees, often write letters of inquiry to request an appointment with a current customer, a potential customer, or a business associate, particularly if those people are located out of town. For example, a businessperson might write several letters requesting appointments with various customers before arranging a sales trip. Persuasive messages are intended to encourage others to take action rather than to make a request. Sales letters are a type of persuasive message. Corporate memorandums are internal forms of communication. SOURCE: CO:040 SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 222, 225]. Boston: Irwin/McGraw-Hill.
9. C Demonstration. Demonstration is an instructional method that offers the benefit of visual explanation to describe how a job task is to be performed. In the demonstration process, a manager performs a task while explaining each step, and an employee watches. Demonstration is an effective way of giving instructions because the employee is able to see exactly how the job task should be performed. Comparison involves explaining similarities and differences. Persuasion involves convincing someone of a particular opinion. Negotiation involves bargaining to reach an agreement. SOURCE: CO:139 SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.) [pp. 108-111]. Cincinnati: South-Western Educational.
10. D Overpromising. Because services are intangible, it is often difficult for consumers to completely understand exactly what they are buying. Businesses that sell services should avoid overpromising what the services can do in order to be ethical. It is unethical to overpromise in order to generate sales or attract customers. For example, promising baseball fans a win is unethical because the outcome cannot be determined until the baseball game is over. It is ethical for sport/event businesses to try to educate customers as much as possible about services and to provide customers with more service than they expected. Services are not overproduced because they are not produced until a customer buys them. SOURCE: CO:050 SOURCE: Zeithaml, V.A., & Bitner, M.J. (2000). Services marketing: Integrating customer focus across the firm (2nd ed.) [pp. 405-409]. Boston: Irwin/McGraw-Hill. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 11
11. B Being efficient. Being efficient demonstrates the customer-service mindset. Specifically, this means knowing how to operate equipment, becoming familiar with all the products (e.g., concession stands, rides, other services) the amusement park offers, and keeping work spaces organized for action. Being accurate is demonstrated through double-checking work for accuracy. Following-through means always doing what you say you're going to do. Following- up with customers or guests suggests to them that you care about their continued satisfaction. SOURCE: CR:004 SOURCE: HR LAP 32—Customer-Service Mindset
12. C By identifying the customer's real needs. Product-related complaints often occur when customers make improper buying decisions. Sporting-goods salespeople should try to identify the customer's real needs so that s/he can suggest the most appropriate product. High-pressure selling techniques are never recommended and would likely cause complaints. Sporting-goods salespeople may not be able to advise from personal experience in all cases, and their advice may not be appropriate for the particular customer. Approaching customers promptly is a good idea but will not prevent them from having product-related complaints. SOURCE: CR:010 SOURCE: HR LAP 23—Handling Customer Complaints
13. C Ask local retailers and vendors to distribute them to their customers. Pocket schedules are an important promotional tool for some sport/event organizations (e.g., professional baseball). To get the schedules out to many people in a cost-efficient manner, some sport/event organizations ask area retailers (e.g., grocers) to place a display box on their counters that hold the schedules. Sport/Event organizations might also have their vendors (e.g., beverage) distribute the boxes to their customers (e.g., restaurants). It is very time consuming and expensive to deliver the pocket schedules door-to-door, particularly in large cities. Direct mail can be a very expensive way to distribute pocket schedules. Although sport/event managers can distribute the pocket schedules to employees, the employees may not distribute them to others. SOURCE: DS:100 SOURCE: Milwaukee Brewers. (n.d.). Publications: Brewers pocket schedules. Retrieved July 3, 2007, from http://milwaukee.brewers.mlb.com/mil/sponsorship/publications/index.jsp
14. C Distribution. This economic activity examines how the money payments received by resource owners and producers are divided or distributed. Resource owners must feel that the incomes they receive are large enough so that they will continue to be willing to supply resources. Producers must receive enough income so that they are able to continue making or providing goods and services. Consumption is the process or activity of using goods and services. Production is the making of goods and services. Exchange involves the exchange of money payments between producers and the owners of resources. SOURCE: EC:001 SOURCE: EC LAP 6—Economics
15. D Form. Form utility occurs when a business alters or changes the shape or form of a product to make it more useful to consumers. Roe's Sporting Goods creates custom uniforms by sewing and numbering the uniforms. Place utility is usefulness created by making sure that goods or services are available at the place where they are needed or wanted by consumers. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user. Time utility is usefulness created when products are made available at the time they are needed or wanted by consumers. SOURCE: EC:004 SOURCE: EC LAP 13—Use It
16. C Directing. Directing is providing guidance to workers and work projects. An example of directing would include a sport/event manager assisting employees with deliveries. Controlling involves monitoring the work effort. Staffing involves finding workers for the business. Organizing is setting up the way the business's work will be done. SOURCE: EC:071 SOURCE: EC LAP 19—Strictly Business (Business Activities) Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 12
17. D Taxes. Taxes are a heavy burden in socialist command economies. The high taxes that have been imposed to pay for government human-services programs reduce individuals' incomes and make the costs of production higher for businesses. Privately owned businesses are allowed to compete with state-owned businesses in socialist economies, but they must abide by the state's master plan in whatever way is necessary. Profit is the financial gain of a business after all expenses have been paid. SOURCE: EC:007 SOURCE: EC LAP 17—Economic Systems
18. B To limit the sale of those items. In some situations, governments set very high taxes on certain products to discourage people from buying those items. For example, most governments set high taxes on alcohol and tobacco products to make it more expensive for people to buy those products. It is an attempt to discourage people from buying products that may be hazardous to their health. Governments do not set very high taxes on certain products to make those items more appealing, to increase profits for businesses, or to encourage more production. SOURCE: EC:072 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 178]. Cincinnati: South-Western.
19. B Nonprice. Nonprice competition involves factors other than price. Price competition focuses on the use of price to attract scarce customer dollars. Pure competition exists when there are so many sellers and buyers of a product that no one can influence the price. Direct competition occurs among businesses which offer similar types of goods or services. It cannot be determined from this example whether the competition is direct or indirect. SOURCE: EC:012 SOURCE: EC LAP 8—Ready, Set, Compete!
20. D To detect changes in the economy. The unemployment rate is an indication of the health of the economy. If the rate is low, then most people who want to work have jobs and income to support themselves. If the unemployment rate starts to increase, it is an indication that workers are losing their jobs, which might result in a slowdown in the economy. By calculating the unemployment rate on a monthly basis, governments are able to detect changes in the economy at an early stage. Then, they may be able to take steps to correct problems before they become serious and lead to a recession. Governments do not calculate the unemployment rate to help workers find new jobs, determine which businesses are failing, or prepare for receiving less tax money. SOURCE: EC:082 SOURCE: O'Sullivan, A., & Sheffrin, S.M. (2003). Economics: Principles in action (pp. 334-335). Upper Saddle River, NJ: Prentice Hall.
21. B Expansion. Expansion is the first phase in the business cycle characterized by increased spending and borrowing, increased demand for goods and services, and increased employment. Expansion would be the best phase of the business cycle in which to open a new branch of the sporting-goods store. Peak is the second phase of the business cycle which is considered the high point of economic activity (demand begins to exceed production). Contraction is the third phase of the business cycle characterized by decreasing demand for goods and services, rising unemployment, and reduced sales and profits for the business. Trough is the fourth phase of the business cycle which is the lowest point of economic activity, characterized by a high ratio of unemployment and business failures. SOURCE: EC:018 SOURCE: EC LAP 9—Business Cycles Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 13
22. D Networking. Networking within an organization involves developing political relationships with others for the purpose of advancement. By developing relationships, the employees have others to call on when they need help getting something done. They have a group that will support their ideas, and help them reach their objectives. Compromising involves giving in to another's wishes so that an agreement may be reached. Negotiating is the process of one person reaching an agreement with another person to meet specific needs or wants. Counseling is an oral communication method in which a supervisor and an employee discuss the employee's problem, and the supervisor tries to motivate the employee to find a solution. SOURCE: EI:034 SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development (2nd ed.) [pp. 278-279]. Mason, OH: South-Western.
23. D Patience. Authoritarian leaders in the sport/event industry prefer to exercise a high degree of control over their subordinates and tend to see themselves as the sole source of authority. In order to cope with this type of leadership, employees need not only patience but acceptance, cooperativeness, and reliability. Employee traits such as initiative, creativity, and assertiveness, while good for democratic or laissez-faire work environments, cause problems for workers under authoritarian leaders. SOURCE: EI:037 SOURCE: EI LAP 5—Can You Relate?
24. B Reach an agreement. A consensus is a decision-making outcome that requires the substantial agreement of each group member. Therefore, the process of consensus building is intended to enable a group to reach an agreement. Consensus building helps a group to discuss issues and achieve objectives rather than create a stalemate, which means the group cannot agree. An attitude is the way a person looks at life. Philosophy is the combination of principles, attitudes, or beliefs held by individuals or organizations that influence their behavior. SOURCE: EI:011 SOURCE: QS LAP 17—All Aboard!
25. C Revised payment plan. When customers are unable to pay their accounts for legitimate reasons, such as temporary financial problems, sport-marketing businesses might be willing to develop a revised payment plan. These plans might reduce the amount of the monthly payment or extend the time that the customer has to pay the past-due amount. The benefit to the business is that it will ultimately collect the entire amount without losing a customer. Offering customers an additional credit card will not help to collect past-due accounts and may encourage customers to go further into debt. Sport-marketing businesses do not offer financial planning courses. An installment loan is a type of credit account. However, businesses do not offer additional loans to customers who are having difficulty paying existing accounts. SOURCE: FI:014 SOURCE: Cole, R., & Mishler, L. (1998). Consumer and business credit management (11th ed.) [pp. 412-415]. Boston: Irwin/McGraw-Hill.
26. D Borrower. A promissory note is a legal form signed by a borrower promising to repay a loan. The person who signs a promissory note is called a borrower. A lender is the individual or financial institution granting the loan. A creditor is a person who extends credit or to whom money is owed. A depositor is a person who places money in the bank for safekeeping. SOURCE: FI:002 SOURCE: FI LAP 2—Credit and Its Importance
27. B Contract. A contract is an agreement between two or more businesses stating that one party is to do something in return for something provided by another party. In the example, the bank agrees to lend Ali money and Ali agrees to the loan terms, which includes a repayment schedule. If one party does not follow through with the agreement, the other party can pursue legal action. A warranty is a promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected. A proposal is a formal document that presents the reader with a call to action. A referral is an entity to which salespeople are recommended. SOURCE: FI:063 SOURCE: DuBoff, L.D. (2004). The law (in plain English) for small business (pp. 46-47). Naperville, IL: Sphinx. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 14
28. C Bonds. A lending investment is one in which a lender allows a borrower to use his/her money during a period of time for a specified fee or rate of interest. A bond is a type of lending investment in which individuals lend money to a government, municipality, or corporation to earn a set rate of interest for a specified time period. Homes, antiques, and stocks are ownership investments. SOURCE: FI:077 SOURCE: Kapoor, J.R., Dlabay, L.R., & Hughes, R.J. (2005). Personal finance (pp. 251-254). New York: Glencoe/McGraw-Hill.
29. A A guest trips on loose carpet in the hallway and sprains an ankle. The theater is responsible for making sure the facility is safe and free of obstacles; therefore, it would be liable for damages. A car damaged in a parking lot owned by the city would not be the theater's responsibility. Complaining about someone blocking one's view would not bring about damage relief. The drink being spilled was an accident and is between the individuals involved. SOURCE: FI:084 SOURCE: Kaser, K., & Oelkers, D.B. (2001). Sports and entertainment marketing (p. 273). Mason, OH: South- Western.
30. B Income. A cash-flow statement is a financial summary with estimates as to when, where, and how much money will flow into and out of an amusement park. Income is money that flows into the amusement park and includes sales, cash receipts, investments, and dividends. Assets, or anything of value that the amusement park owns, are also a source of income because assets can be exchanged for cash (liquidated). Expenses are monies that flow out of the amusement park. Utilities are expenses. SOURCE: FI:092 SOURCE: Entrepreneur.com. (n.d.). Cash flow statement. Retrieved July 3, 2007, from http://www.entrepreneur.com/encyclopedia/term/82038.html
31. B $78,500. An operating budget predicts the amount of profit for a certain period of time, usually a year, based on estimated total expenses and sales. If a bicycle repair-shop owner expects total expenses of $42,500 for the coming year and wants to gross $36,000 in profit, the business needs sales of $78,500 ($42,500 + $36,000 = $78,500). If the business sells more than estimated, it will earn a greater profit. A bicycle repair-shop owner uses the operating budget to track expenses and sales throughout the year and makes changes, if necessary, in order to earn the desired amount of profit. SOURCE: FI:098 SOURCE: DuBrin, A.J. (2003). Essentials of management (6th ed.) [pp. 421-423]. Mason, OH: South-Western.
32. A Marginal revenue. Marginal revenue is the revenue received from producing and selling one additional unit of output. This calculation helps a sport-marketing business decide if output is generating the desired amount of profit. For example, once output is sufficient to cover expenses, each additional unit of output generates profit. Sport-marketing businesses do not calculate the interest rate, inventory level, or tax liability to determine if their output is generating an adequate amount of profit. SOURCE: FI:358 SOURCE: Clayton, G.E. (2005). Economics: Principles & practices (pp. 130-131). New York: Glencoe/McGraw-Hill.
33. A Verify information listed on the resume. When interviewing job applicants for a sport/event marketing position, interviewers often go over the information that was listed on the resume. Many times, the interviewer wants to clarify information such as gaps between employment or types of training. Or, the interviewer may want a more detailed explanation of what the applicant did in a previous position. Interviewers often use the resume as the basis for obtaining additional information. When interviewing job applicants, interviewers do not ask the applicant to fill out a tax form, select the most qualified candidate, or plan an appropriate orientation program. SOURCE: HR:355 SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development (2nd ed.) [pp. 244-245]. Mason, OH: South-Western. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 15
34. C Offer to help the employee find another job. You should express gratitude on behalf of the company for the employee's long years of service and explain that changes in technology have eliminated the need for that particular position. Then, offer to help the employee find another job within the event organization or with a similar company. Losing a job after many years of service is a threat in itself. If the position is being eliminated, there is no need to train a replacement. A valued employee who has not been able to keep up with the needs of technology deserves more than just a letter. SOURCE: HR:358 SOURCE: Littrell, J.J., Lorenz, J.H., & Smith, H.T. (2000). From school to work (pp. 355-356). Tingley Park, IL: Goodheart-Willcox Co.
35. B To make them feel productive. Avoid giving new sport-marketing employees menial tasks because it will discourage their interest in the job. During follow-up sessions, you can identify problem areas and summarize the day's activities. SOURCE: HR:361 SOURCE: MN LAP 44—Orienting New Employees
36. B Suggestion boxes. An athletic organization's management team can place suggestion/complaint boxes in areas accessible to employees such as in break areas or near time clocks. Employees should be given opportunities to contribute to an athletic organization's success through a complaint process. Contracts are agreements between two or more parties that are legally binding. A strike is a union strategy in which employees cease working until employers meet their demands. Right-to-work laws specify that union membership cannot be required in order to get or keep a job. SOURCE: HR:366 SOURCE: MN LAP 45—Handling Employee Complaints
37. A It can provide relevant, accurate, and timely information. A marketing-information management system should be designed to meet the needs of a sport/event organization without disrupting its regular business activities. Stored information can prove valuable many times throughout any planning or decision-making process if it is updated on an ongoing basis. SOURCE: IM:001 SOURCE: IM LAP 2—Marketing-Information Management
38. A How the information will be used. Ethical behavior involves doing what is right. When a sporting-goods store collects marketing information from customers, it is ethical to make sure customers know how the information will be used. Then, customers have the opportunity to decide not to provide information, or to provide only certain types of information. It is not ethical to mislead customers in order to obtain marketing information. It is not usually considered unethical not to tell customers where the information will be stored, the monetary value of the information, or the relevance of the information. SOURCE: IM:025 SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.) [pp. 134-135]. Upper Saddle River, NJ: Prentice Hall.
39. A Web-based information services. External marketing data is information from outside the athletic organization. The Internet is a technological tool that allows an athletic organization to retrieve external marketing information quickly. Web-based information services, such as online libraries, provide a wide range of information for marketers. Sales reports, accounts receivable summaries, and inventory records are examples of internal sources of marketing information. SOURCE: IM:183 SOURCE: Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [pp. 114-115]. Upper Saddle River, NJ: Prentice Hall. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 16
40. D Assess a trading area. Assessing a trading area involves identifying the location of all competitors and the location of potential customers. The purpose of the assessment is to determine if the trading area will support the business. There needs to be an adequate number of customers, but not too many competitors, in order for a new golf practice range to be successful. If a trading area is suitable, an owner might identify necessary equipment, obtain a bank loan, and begin recruiting employees. SOURCE: IM:127 SOURCE: Greene, C.L. (2000). Entrepreneurship: Ideas in action (pp. 169-170). Cincinnati: South-Western Educational.
41. B Analyze. The collected data must be analyzed, or interpreted, in order to be useful. Data by themselves are just a collection of facts, which might not be meaningful. Observation gathers data, surveying asks questions, and experimentation tests cause and effect. SOURCE: IM:010 SOURCE: IM LAP 5—Nature of Marketing Research
42. D To graphically depict various statistics. Frequency tables are a type of graphic that visually represent information. The advantage of using frequency tables in a marketing report is that a variety of information, such as statistics, can be shown in different ways. For example, frequency tables can be in the form of bar charts, line charts, or pie charts that indicate numbers and/or percentages. The tables help to graphically depict complex information that might be difficult to understand if it was presented in word form only. Frequency charts are generally used to visually represent statistics rather than to explain technical information. Frequency tables are not included in a marketing report to compile a list of recommendations or to analyze the cost of conducting research. SOURCE: IM:192 SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach for the new millennium (pp. 522-525). Boston: Irwin/McGraw-Hill.
43. B Available data and research about the segment. This is important in order to focus their marketing message on the appropriate markets. Retired people may or may not be of particular interest as a target market. Past ticket sales records may not provide important segmentation information. Customizing comes after the target market has been identified. SOURCE: IM:256 SOURCE: Kaser, K., & Oelkers, D.B. (2001). Sports and entertainment marketing (p. 201). Mason, OH: South- Western.
44. A Where are customers located? The marketing-information management function involves gathering, accessing, synthesizing, evaluating, and disseminating information. Accurate marketing information can help fitness centers answer questions such as "Where are customers located?" The product/service management function tries to answer questions such as "What new products should be developed," and "What is the image of the business?" The distribution function helps businesses answer questions such as "Where will supplies be stored?" SOURCE: MK:002 SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)
45. A Periods when sales are strong or weak. Sport-apparel retailers analyze sales for various periods of time to determine when sales are strong and when they are weak. For example, a sport-apparel retailer might analyze sales during morning hours, afternoon hours, evening hours, or on weekends, as compared to sales during the week. The resulting information will indicate when sales are strong and when they are weak. If sales are weak on Sunday evenings, a sport-apparel retailer might decide to reduce hours on that day to operate more cost effectively. Sport-apparel retailers often consider operating hours of local competitors when establishing their hours, but that information will not help them to determine the most cost-effective operating hours for their facility. Sales are the important factor rather than the type and variety of products available. The number of people walking by the store is not important, only the number of people in the store who are actually buying. SOURCE: MN:057 SOURCE: Mill, R.C. (1998). Restaurant management: Customers, operations, and employees (pp. 51-52). Upper Saddle River, NJ: Prentice Hall. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 17
46. C Stable economic conditions. Many factors can necessitate a need to change marketing strategies: the actions of competitors, the influences of governmental agencies, changes in consumer attitudes, advancements in technology, changes in the economy, etc. When the economy is stable, no major economic changes are occurring at the moment. SOURCE: MP:001 SOURCE: IM LAP 7—Pick the Mix
47. B Market. Market segmentation is the division of a total market into smaller, more specific groups. Yvette has decided to focus her efforts on one well-defined group of consumers. Geographic segmentation is the division of a market on the basis of where consumers are located. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Behavioral segmentation is the division of a market on the basis of consumers' response to a product. SOURCE: MP:003 SOURCE: IM LAP 9—Have We Met?
48. B Strategies. Marketing planning is the process of determining how to attract the target customer to the sport/event business. Strategies are specific plans of action the sport/event business takes to achieve the objectives (goals) in the marketing plan. Sport/Event businesses develop advertisements after the marketing plan is in place. Product development is an ongoing process for many sport/event businesses, not only during the marketing planning process. Prospects are potential customers or qualified leads. SOURCE: MP:006 SOURCE: Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [p. 57]. Upper Saddle River, NJ: Prentice Hall.
49. D Change. Though markets may appear to fail, advance, or lead other markets—it is change that prompts sport/event marketers to check on their markets periodically. Sport/Event marketers need to identify possible changes in order to adapt and remain competitive. SOURCE: MP:007 SOURCE: Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 242-243]. Mason, OH: Thomson/South-Western.
50. A Segment size, competitors, and demand. A market analysis involves collecting information about a group (segment) that may have an unfulfilled desire for something and is willing and able to pay for it. A fitness center analyzes various segments to determine if it is profitable to market its products to those segments. The market analysis considers the size of the market segment, the product demand, and the competitors it may encounter. A strategy is a plan of action for achieving goals or objectives. Policies are general rules that a fitness center's employees must follow. Frequency is a quantitative measure of the average number of times a target consumer is exposed to an advertising message. Reach is a quantitative measure of the number of different people in the target audience who are exposed at least once to an advertising message. Reach and frequency are considerations when selecting advertising vehicles, but not when conducting a market analysis. SOURCE: MP:009 SOURCE: Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [pp. 199-200]. Upper Saddle River, NJ: Prentice Hall.
51. B Infrastructure. Sport/Event marketers should watch global trends because these trends often indicate opportunities for the businesses to expand into international markets. By watching economic trends, a sport/event marketer may find that an underdeveloped country is growing and expanding, which presents a market opportunity for the business. One economic factor that a sport/event marketer considers is the country's infrastructure, which is the country's ability to move products into and out of the country. An example of the country's infrastructure is its ability to transport products by water or land. Sport/Event marketers may find it challenging to expand into markets that do not have highways, rail, or effective waterway systems, which make it possible for the sport/event marketer to move its goods and services. Customs and values are social factors. Age is a demographic consideration. SOURCE: MP:011 SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 105-106]. Mason, OH: Thomson/South-Western. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 18
52. A Business planning. A snow-ski manufacturer uses the projected sales income to make major business decisions such as scheduling production, setting prices, purchasing materials and equipment, and hiring staff. Information used in training staff and preparing advertising copy comes from other sources within the business. Analyzing past sales, rather than forecasting sales, would be helpful in evaluating salespersons. SOURCE: MP:013 SOURCE: IM LAP 3—Nature of Sales Forecasts
53. B Reach more customers to increase sales by 20%. The objectives in a marketing plan are intended to lead to sales and an increase in revenue. Reaching more customers is a realistic way of achieving the objective of increasing sales by 20%. If a sport-apparel distributor increases sales by 20%, it will probably increase revenue also. Increasing prices by 50% across the board will probably have the effect of driving away customers who feel the new prices are excessive. A sport-apparel distributor that decreases the salaries of all employees by 10% would be affecting operating expenses rather than revenue. Imposing a 5% surcharge on customers who pay on credit will probably reduce sales and revenues. SOURCE: MP:018 SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 41-42]. Mason, OH: Thomson/South-Western.
54. B Objectives are not being achieved. Objectives are the goals that a business, such as a swim and racquet club, seeks to reach with its marketing plan. During the process of evaluating the plan, the swim and racquet club might find that its objectives are not being achieved. If this happens, the swim and racquet club needs to make changes to its marketing plan in order for the plan to be successful. Perhaps the swim and racquet club needs to increase advertising, lower prices, or offer incentives to achieve its marketing objectives. There usually is no need to make changes if membership is steady or increases. A swim and racquet club does not make changes to the marketing plan if regulations are not being enforced or employees are working to capacity. SOURCE: MP:022 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 48-49]. Mason, OH: South-Western.
55. A Comprehensive. A marketing audit is an assessment about a sporting-goods retail chain's marketing activities. An effective marketing audit is comprehensive—it addresses all the specific details of the business's marketing activities. When the sporting-goods retail chain uses a systematic, or a step-by-step approach to conduct the marketing audit, the chain is more likely to obtain an in-depth (comprehensive) snapshot of its marketing activities. Effective marketing audits are not general, objectionable, or sensitive. SOURCE: MP:024 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [p. 634]. Mason, OH: South-Western.
56. D Make decisions about future operations. Treadmill manufacturers keep many types of internal records about their various business activities. These records might contain information about sales, agreements with vendors, financial status, etc. Management and employees use the records to make decisions about day-to-day and future actions. For example, records that indicate that sales are increasing and the treadmill manufacturer is profitable might encourage the business to decide to expand. Monitoring internal records does not help a treadmill manufacturer to track the activities of competitors or understand global economic conditions. Treadmill manufacturers do not use internal records to handle employee problems and complaints. SOURCE: NF:014 SOURCE: Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 120-121]. Mason, OH: South-Western. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 19
57. C Multistage. When establishing playing schedules, tournament organizers must consider many factors, such as the type of tournament. This is because in some types of tournaments, several games are played simultaneously in different locations over a long period. A multistage tournament is a format in which teams compete at different levels or stages. When a team wins, it moves forward to play another game against another opponent. If a team loses, it is eliminated and no longer plays. The stages of play continue until a champion is determined. A scramble is an unofficial way to play golf in which each member of the four-person team hits a golf ball. A heat is a round of a competition, such as swim meets. Tri-level is not a common term to describe types of tournaments. SOURCE: OP:142 SOURCE: Wikipedia. (n.d.). Tournament. Retrieved July 3, 2007, from http://en.wikipedia.org/wiki/Tournament
58. B To outline all of the activities needed to prepare for the event. Production schedules are timetables that establish when each activity will be performed. Before an event can take place, a variety of activities need to be completed to prepare the site or facility. For example, lighting or additional phone lines might need to be installed, or concession stands might need to be stocked. Event organizers plan for when each activity should occur and prepare the schedule to make sure the facility is ready for the event to begin. Setting a time for a rehearsal might be part of the production schedule. Event organizers do not develop production schedules to arrange for the media to broadcast the event or to analyze safety and health considerations for the event. SOURCE: OP:102 SOURCE: Supovitz, F. (2005). The sports event management and marketing playbook (pp. 340-342). New York: John Wiley & Sons.
59. B Safe work environment. Sport-equipment manufacturers usually develop procedures and policies for employees to follow in order to maintain a safe work environment. One policy might involve the type of clothing that employees are permitted to wear on the job. Depending on the type of work, employees may be required to wear certain types of shoes or clothing that covers their arms and legs. Employees may not be allowed to wear clothing that might get tangled up in equipment. The intent is to keep the work environment safe for employees. Sport-equipment manufacturers do not require employees to wear appropriate clothing to maintain a comfortable atmosphere, an industrial image, or a sanitary facility. SOURCE: OP:008 SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.) [pp. 272-273]. Weimar, TX: Culinary and Hospitality Industry Publications Services.
60. C Purchasing. In order for sport/event marketers to fulfill their role in the exchange, or transfer, process, they must buy goods and then sell them to customers. Credit is the arrangement by which businesses or individuals can purchase now and pay later. Management is the process of planning, organizing, directing, and controlling activities in order to achieve goals or objectives. SOURCE: OP:015 SOURCE: PU LAP 1—Purchasing
61. D Evaluate its systems and procedures. A procedure is a step-by-step process for performing a specific task. A basketball arena must conduct many tasks to keep it running. To make sure that the basketball arena is operating efficiently, it may evaluate its procedures to see if it should make improvements in order to reach its various goals. A basketball arena would not distribute a survey to competitors or hire an international tax consultant to determine if it is operating in the most efficient manner. SOURCE: OP:022 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 288, 330]. Cincinnati: South-Western. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 20
62. B Preventive maintenance. Regular inspections help to ensure that equipment is in good repair and will not break down. Vendor analysis is a rating of suppliers in terms of quality, service, and price. Physical inventory is an actual count of items in stock. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer. SOURCE: OP:032 SOURCE: Ninemeier, J.D. (2000). Management of food and beverage operations (3rd ed.) [pp. 303-305]. Weimar, TX: Culinary and Hospitality Industry Publications Services.
63. D A safe work environment. Accidents and their costs can be reduced considerably if a fitness center creates a safe work environment. Unsafe conditions can be prevented more easily than unsafe acts. Therefore, a fitness center should create a safe work environment that prevents its employees from making hazardous mistakes. Comfortable lounge areas, attractive furnishings, and convenient lunch rooms are not factors that help prevent accidents and injuries. SOURCE: OP:009 SOURCE: RM LAP 3—Handling Accidents
64. B To meet new vendors. One reason why sport/event marketers assign representatives to attend trade shows is to meet new vendors. Trade shows usually are annual events that feature exhibits of related goods and services by manufacturers and suppliers. Attending trade shows is an opportunity for sport/event marketers to expand their list of contacts and find new vendors that may offer improved products or better prices. Sport/Event marketers do not attend trade shows in order to visit associates, identify competitors, or contact employees. SOURCE: PD:036 SOURCE: Farese, L.S., Grossman, D.A., Nicholson, G., & Wardinski, P.A. (2005). Sports and entertainment marketing (p. 363). New York: Glencoe/McGraw-Hill.
65. B False, each individual has a work style of his/her own. Most people have a work style that suits them, which they have developed over time. No two people have the same approach. Work style has not been divided into specific categories, although individuals may be categorized as morning or afternoon people according to the time of day at which they are at their best. SOURCE: PD:019 SOURCE: OP LAP 1—About Time (Time Management in Business)
66. A Predatory. Predatory pricing practices involve setting prices for products below cost in order to attract more customers. When this occurs, smaller businesses cannot effectively compete in the marketplace. Some governments have established laws that require businesses to sell similar goods at a minimum price in order to prevent or reduce predatory pricing. Inflationary, markdown, and competitive are not pricing methods that involve selling goods below cost. SOURCE: PI:017 SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 378]. Mason, OH: Thomson/South-Western.
67. B Elastic demand. Elastic demand is a form of demand in which changes in price correspond to changes in demand. When customers can afford to spend money and buy products, sporting-goods businesses often respond by increasing prices because there is a demand. However, if customers stop buying because their incomes decrease, sporting-goods businesses usually respond by lowering prices. The goal of most sporting-goods businesses is to keep their prices at a level that is compatible with demand. Market share is a sporting-goods business's share of the total industry sales in a specific market. Product mix is the particular assortment of products that a sporting-goods business offers in order to meet the needs of its market and its company goals. Economic growth refers to growth of the economy in general. SOURCE: PI:002 SOURCE: PI LAP 3—Factors Affecting Selling Price Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 21
68. D Elastic. An elastic demand means that small price changes have a big impact on product sales. The demand for soft drinks at hockey games is elastic because when the prices rose slightly, sales dropped sharply. An inelastic demand means that price changes have little to no impact on product sales. A unitary demand means that changes in price create proportionate changes in product sales. Smoothing is the process of dividing a product into different segments for customers. SOURCE: PI:047 SOURCE: PI LAP 7—Gauge Your Prices
69. B Life cycle. The product life cycle is the stages through which goods and services move from the time they are introduced on the market until they are taken off the market. The stages in a product's life cycle have an impact on marketing because different techniques are more effective in some stages than in others. For example, in the growth stage, sales grow rapidly and competitors start to offer the same type of product, such as a sport/event business offering certain products because other businesses are successfully selling those products. In this stage, marketers try to make their product appear unique and focus heavily on promotion to attract customers because customers are able to obtain the product from many sources. A brand name is the part of brand identity that can be spoken, including words, phrases, letters, numbers, or any combination of these. A sport/event business deciding to offer certain products is not an example of marketing being affected by a product's intended use or main feature. SOURCE: PM:024 SOURCE: Burrow, J.L. (2002). Marketing (pp. 229-231). Mason, OH: South-Western.
70. C Intranet. Intranet refers to a business's network of computers that are linked so that the employees can retrieve the same business information. For example, a software program that tracks inventory may be available for the sales department, the shipping department, and the purchasing department to review. A sport-apparel business that uses an Intranet system to manage products maximizes its communications and response time. Generators and memory cards do not allow a sport-apparel business's employees to simultaneously access the product information. Micro-portal is a fictitious term. SOURCE: PM:039 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [p. 127]. Mason, OH: South-Western.
71. D Opportunity recognition processes. A product opportunity is a situation in which a business acts on the chance to provide a good or service to a market segment that wants a product and is willing to pay for it. Sport/Event marketers develop processes to analyze product opportunities so they can develop unique goods and services to compete in the marketplace. By establishing a systematic, or step-by-step process, the sport/event marketer has a consistent method for recognizing product opportunities on an ongoing basis. Establishing comprehensive business plans, flexible marketing objectives, and positioning strategies are not reasons for developing a system to obtain and analyze consumers' wants and needs. SOURCE: PM:136 SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 286-287]. Mason, OH: South-Western.
72. D Quantity. Quantity standards specify the amount of work to be done. Quality standards indicate the degree of excellence to be expected from a good or service. Time standards monitor the amount of time needed to complete an activity. Cost standards are used to specify project or product costs. SOURCE: PM:019 SOURCE: PM LAP 8—Grades and Standards Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 22
73. D Function sheets. Function sheets contain comprehensive lists of tasks that need to be completed for an event to occur. For example, since food needs to be ordered and prepared for a formal fund-raising dinner, information and activities relating to the tasks are noted on function sheets. By reviewing the function sheets, the sport/event personnel can verify that all steps have been completed to carry out the event. Inventory agenda and production checklist are not common terms used in the sport/event industry. A guest list documents the names of all individuals who are attending an event. SOURCE: PM:146 SOURCE: Allen, J. (2000). Event planning: The ultimate guide to successful meetings, corporate events, fundraising galas, conferences, conventions, incentives, and other special events (pp. 21-24). Ontario, CN: John Wiley & Sons.
74. B Brainstorming. Brainstorming is an idea generation technique involving the identification of as many different ideas as possible during a certain time frame. Mind mapping is a creative thinking technique that involves the generation of ideas by associations. Psycho-stimulation is not a term that is widely used to describe idea generation techniques. Idea screening is a step in new product development that evaluates the strengths and weaknesses of each idea. SOURCE: PM:164 SOURCE: Shank, M.D. (2002). Sports marketing: A strategic perspective (2nd ed.) [p. 303]. Upper Saddle River, NJ: Prentice Hall.
75. D Alteration. Product mix is the particular assortment of goods and services that a business (e.g., sporting-goods manufacturer) offers in order to meet its market's needs and its company's goals. Product mix strategies are the plans the business implements for achieving the company's goals for marketing its products. Alteration is a product mix strategy in which a business makes changes to its products or product lines. Examples of alteration include changing the product's color, changing the appearance of the product's packaging, and changing the product's pricing. Contraction is a product mix strategy in which a business removes or deletes items from the product line. Expansion is a product mix strategy in which a business adds additional items or product lines to its product mix. Collaboration is not a product mix strategy. SOURCE: PM:003 SOURCE: PP LAP 3—Product Mix
76. C Modification. Because customers' needs and wants may change over time, sport/event marketers must find products to fulfill the customers' new needs and wants. Sometimes, a business can alter or modify existing products so they better accommodate the customers' needs. Classification, certification, and mollification are not processes that all sport/event marketers use to fulfill customers' needs. SOURCE: PM:130 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 554]. Woodland Hills, CA: Glencoe/McGraw-Hill.
77. B Wants. Positioning is a product-mix strategy in which a sport/event business creates a certain image or impression of a product in the minds of consumers. The sport/event business wants a target market to have a positive impression of the product in order to stimulate sales. The desired impression depends on what the target market wants or expects. If the target market wants high-quality products and it is willing to pay a high price for quality, then the sport/event business should use a product-mix strategy that positions the product on the basis of superior quality at a high price. Rather than target markets, sport/event businesses have strategies and polices, while products have benefits. SOURCE: PM:042 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 645). New York: Glencoe/McGraw-Hill. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 23
78. B Predictable quality. Consumers expect a brand to provide predictable, consistent quality. They automatically buy satisfactory, reliable brands rather than trying new ones because it makes shopping easier. A descriptive name is a brand name that has fallen into everyday use so that the brand is used to describe every product in the brand's product category, e.g., Kleenex. Market share, the business's portion of the total market, is important to the marketer, not the consumer. Product category is the general grouping of goods or services in which a product is found, and it would not affect the choice of brand. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)
79. A Sport. Celebrity endorsers are often considered to be particularly effective promoting products related to their sport. Their endorsement has a certain amount of authority because they know a lot about those products. Consumers assume they know about the products because they are prominent in that particular sport. Athletes usually are not necessarily effective in promoting products simply because of their background, education, or lifestyle. In fact, their background and lifestyle may be controversial and have a negative effect on endorsements. SOURCE: PM:140 SOURCE: PM LAP 13—Play the Name Game
80. C There is a high demand for customer service. It's the basic law of supply and demand: The supply of employees should always meet or exceed the demand for their services in order for a sport/event business to prevent long customer waits and poor service. If there are only a few members working out in a fitness center, it is actually okay for the supply of employees to go down because it will still be possible to meet the members' service needs. It makes sense that when a sporting-goods store is closed, there will be fewer employees at work. During off-seasons (e.g., summer), it is acceptable to have a small supply of employees (e.g., ski-resort employees) to take care of service demands because fewer guests go to ski resorts during warm weather. SOURCE: PM:013 SOURCE: PM LAP 1—Customer Service Supersized!
81. D Avoid selecting a name already in use by another business. When selecting a brand name, a business should have several of its preliminary choices researched legally. Not only will this help the business ultimately protect its chosen name, but it will also help to avoid selecting—and becoming attached to—names that other businesses may already legally own. Legally researching names will not help avoid names that are unpleasant, nor will it help to stimulate consumers' buying habits. Other types of qualitative, consumer-based, and secondary research can help a business learn these things about potential brand names. The same holds true for determining if a name is adaptable to displays, signage, and advertising. SOURCE: PM:126 SOURCE: PM LAP 10—Building Your Business's Brand
82. A Interactive. A kiosk is a stand-alone structure located in public places and is designed to provide information and sell products. Because the kiosks are interactive, customers can enter information into the kiosk's computer system and obtain what they want instantly. For example, customers can purchase theater tickets at the local cinema's kiosk and obtain concert tickets at an event-venue's kiosk. Generic refers to a type of brand. Kiosks are not portable or seasonable. SOURCE: PR:100 SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 537-538]. Mason, OH: Thomson/South-Western.
83. A Copy. Copy is the text of an advertisement that delivers the sales message. Copy may vary in length from just a few words to several paragraphs. Small advertisements don't have enough space for a lot of copy, while large ads may contain many paragraphs of information. Layout is the way in which the elements of an advertisement are arranged. A slogan is a phrase that is easy to remember. Type refers to the characters used to form the words in the ad copy. SOURCE: PR:014 SOURCE: PR LAP 7—Parts of Print Ads Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 24
84. A Products' benefits. The ad should tell readers how they will benefit from a sporting-good as opposed to stressing the products' features or physical characteristics. The promotional mix is the combination, or blend, of marketing communication channels that a business uses to send its messages to consumers. Promotional objectives are the goals the business wishes to achieve through its promotional efforts. SOURCE: PR:016 SOURCE: PR LAP 9—Preparing Print Ad Copy
85. D A sports apparel company mails its latest catalog to customers who have ordered items within a year. Direct advertising refers to promotional messages that are sent directly to the target market through a medium in which market response can be measured. Catalogs that are mailed directly to established customers represent an example of direct advertising. Unless interactive capabilities are available, television is usually considered a mass medium that has substantial reach but cannot always be measured effectively. Therefore, the options referring to soft drinks and football teams are not examples of direct advertising. Telephone surveys are considered a function related to market research rather than promotion. SOURCE: PR:089 SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 359-360). Mason, OH: South-Western.
86. A Designed to attract attention. Direct mail offers are extremely common today. Consequently, many people consider them to be junk mail, and either throw them away or never open them. To avoid this problem, it is important that the mailing piece be designed to attract attention and stand out from all the other offers. The mailing pieces should be unique and interesting enough that recipients are encouraged to open and read them. Using a team's logo on the envelope is one way to attract attention. It is not important to print the mailing piece on expensive paper. Direct mail offers should be personalized and addressed to specific individuals. It is usually more effective to target a specific market rather than send the piece to everyone in the area. SOURCE: PR:179 SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 238-239]. Champaign, IL: Human Kinetics.
87. A Talking with family and friends. Messages are often passed between a sport/event organization's employees to a personal network of family, friends, and neighbors. In turn, these people also have their own network of individuals in which they pass along messages. Although publicity might be generated within an organization through staff meetings and company memos, publicity is not always a topic that is addressed or discussed. Follow-up surveys are usually conducted by specific personnel upon the completion of a specific activity and are not usually used to generate publicity. SOURCE: PR:136 SOURCE: PR LAP 19—Play to the Fans
88. A Public relations. One of the functions of a public relations plan is to establish good relations between the organization and the public. A university's athletic department that decides to prepare stories about the football players to send to their hometown newspapers in order to develop community support is developing a public relations plan. The purpose of the stories is to build support in the local communities for the players and the university. The public relations effort may also encourage local residents to attend the games and may help the university to recruit future students and athletes. Advertising is any paid form of nonpersonal promotion of ideas, images, goods, or services. Sales promotion is promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. Corporate sponsorship is a business paying the costs to promote a sports or entertainment event. SOURCE: PR:088 SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 324-330]. Champaign, IL: Human Kinetics. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 25
89. D Celebrity appearance. Including celebrities in an event usually adds interest and excitement to the event. Events often hire celebrities to perform during intermissions or half-time periods. Celebrities may be invited to speak before an event begins or to present an award to an event participant. Events usually publicize the celebrity appearance in advance, which attracts attention and encourages people to attend. The event is capitalizing on the fact that people enjoy seeing celebrities and being where they are. Long intermissions usually do not add interest and excitement unless they include entertainment. A dress rehearsal takes place before the event begins. Although sponsors may be recognized during an event, this usually does not add interest and excitement. SOURCE: PR:192 SOURCE: Supovitz, F. (2005). The sports event management and marketing playbook (pp. 333-334). New York: John Wiley & Sons.
90. A To achieve their objectives. The purpose of coordinating promotional activities is to achieve objectives, which, for sport/event marketers, usually means increasing sales. Coordinating promotional activities in order to attract customers or event attendees helps to achieve the objective of increasing sales by informing and encouraging customers or event attendees to buy. Sport/Event marketers do not coordinate promotional activities in order to organize products, evaluate policies, or control inventories. SOURCE: PR:076 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 302-304]. Woodland Hills, CA: Glencoe/McGraw-Hill.
91. A Communication skills. Dan displays communication skills when he actively listens to his customers. Ethics, persistence and patience, and education and training are all characteristics of successful salespeople, but they are not displayed by Dan in this situation. SOURCE: SE:017 SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)
92. C Showing appreciation. One way that fitness-equipment salespeople can build relationships with customers is to show their appreciation to customers for their business. Without customers, fitness-equipment salespeople would not have jobs and companies would not survive. Therefore, it is important to let customers know how important they are and that they are appreciated. To do this, fitness-equipment salespeople often send thank-you cards, additional information that may be useful, congratulatory notes if customers have received awards, etc. The purpose is to let customers know that fitness-equipment salespeople are thinking of them and value their business. Entertaining may be appropriate occasionally but not regularly. Salespeople should call when necessary rather than daily, unless there is an important project or issue to discuss. Customers usually evaluate the performance of salespeople instead of salespeople evaluating the performance of customers. SOURCE: SE:076 SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 409-410]. Boston: Irwin/McGraw-Hill.
93. B Turning a major account into a house account. Sporting goods distributors are expected to behave ethically when dealing with salespeople. Although sporting goods distributors have the right to control and assign accounts, there are ethical ways of doing that. In some situations, a salesperson builds an account to become a major account. As a result, the salesperson earns a high commission. If the sporting goods distributor does not want to pay the high commission, it might take the account away from the salesperson and make it a house account. This is often considered unethical because the sporting goods distributor takes over the account only to avoid paying the salesperson, not because there is a problem with the account. Sporting goods distributors routinely monitor the profitability of each territory, and expect salespeople to reach a certain quota. These actions are ethical. It is also an acceptable practice to terminate a salesperson for poor performance. However, the salesperson must first be given an opportunity to improve. SOURCE: SE:106 SOURCE: Futrell, C.M. (1999). Fundamentals of selling: Customers for life (6th ed.) [pp. 83-84]. Boston: Irwin/McGraw-Hill. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 26
94. B Features. A feature is a physical characteristic of a product (e.g., running shoe). Color is a feature of a product. Standards are statements that specify a product's size, content, and/or quality and are used as a basis for comparing or judging goods or services. Benefits are advantages that customers obtain from using a product. The purpose is the reason or objective of the product. SOURCE: SE:109 SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)
95. C Merchandise. This approach is most effective in terms of sales because it gives the salesperson the opportunity to tell the customer about the merchandise (e.g., golf clubs) and begin to sell the product. The greeting, or welcome, approach is used to create a friendly atmosphere for selling; however, it does not focus the customer's attention on the product. The service approach indicates a willingness to be of service to the customer. The service approach often encourages customers to respond negatively; therefore, it may not be as effective. SOURCE: SE:110 SOURCE: SE LAP 101—Opening the Retail Sale
96. A Related. A related product is a product that can be used with the customer's original purchase. A higher priced product is a product that costs more than the one requested by the customer. New products are items that are new to the business that might be of interest to the customer. A substitute product is an item other than the original request which is suggested by the salesperson when the business does not have the item requested. SOURCE: SE:875 SOURCE: SE LAP 110—Using Suggestion Selling
97. D 30. Never take a sponsorship presentation past 30 minutes. Even if you have a great deal of information you'd like to include, you will not be able to hold the decision makers' attention or interest past the half-hour point. SOURCE: SE:321 SOURCE: SE LAP 127—Selling Sponsorships
98. C Base the exchange on current currency rates. Foreign currency rates change frequently, so a sports marketer should base the exchange on current currency rates. This way, the trade will be a fair one that won't result in lost income to the sports marketer. American bills have a serial number with a letter at the end, but this is not true of all currency. While lodging establishments often require a guest to guarantee a room with a credit card, this is not done when assisting with foreign currency exchange. Accepting a foreign check is very risky because there is a chance that the customer will not have enough funds in her/his account to cover the amount of the check; therefore, exchanging paper currency is smarter. SOURCE: SE:247 SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 376-377]. Upper Saddle River, NJ: Prentice Hall.
99. A Ask for identification. Many businesses (e.g., sporting-goods stores) ask to see a driver's license and/or a major credit card. The cashier may be required to record the number of the driver's license on the customer's check. A handwriting sample would not be useful since it would simply match the handwriting on the check. Most businesses do not accept a two-party check—a check made out by one party to another who endorses the check and passes it on to a third party. Calling the bank about each check would be time consuming. SOURCE: SE:152 SOURCE: American Bankers Association (2005). Today's teller (pp. 13, 25). Washington DC: American Bankers Association. Test 938 SPORTS AND ENTERTAINMENT MARKETING — KEY 27
100. D Physical/Social characteristics of the population. Demographics include such factors as gender, age, marital status, educational level, home ownership, and race. These factors are useful in segmenting the market. Economic conditions, trends, and government regulations are environmental factors that professional sport organizations, such as hockey teams, must study. SOURCE: SM:011 SOURCE: MN LAP 43—External Planning Considerations