| A | B |
|---|
| Reasons that pricing is the most critical element of the marketing mix: | It is very visible, can be changed instantly, communicates more than advertising, It is a top concern of customers |
| A customer's opinion of the value of a sport/event product is based on | perceived benefits |
| Anintangible benefit of purchasing a sport watch: | Your friends will be impressed by it. |
| A tangible benefit of purchasing a surfboard | It has a wrist strap to keep it connected to you in the water. |
| Pricing sport/event products is unique because of the | extremely high demand. |
| Pricing objectives are important because they determine | pricing strategies. |
| A company-focused pricing objective for sport/event products: | Enhancing image |
| Why might a sport/event organization price entry fees for a marathon below the normal rate? | To encourage maximum participation |
| Which member of the distribution channel has the biggest impact on the price of a sport/event product? | Retailer |
| This an effect of distribution on the price of a sport/event product: | Prices are higher at retail stores. |
| Rent, equipment, salaries, and maintenance are expenses known as | fixed costs |
| Materials, packaging, and advertising are expenses known as | variable costs |
| Customers are more likely to buy sport/event products at lower prices rather than higher ones. This is a general rule of | market demand. |
| When prices go up or down, the change can affect how much of the sport/event product customers purchase. This is the general principle of | elasticity |
| Ticket prices for the World Series increase dramatically, but all the games still sell out. The price change had little to no impact on sales. This is an example of | inelastic demand |
| 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 | elastic demand |
| At the end of the season, a ski lodge drops the prices for ski rentals by a few dollars. They see a slight increase in the number of ski rentals during that time. The change in price created a proportionate change in sales. This is an example of | unitary demand |
| Technology affects sport/event product prices by | both raising and lowering them |
| A sport/event company wants to promote bobble-head dolls to men in their thirties who love basketball. This group is known as a | market segment. |
| Which of the following is a demographic characteristic: Area of residence Interests Motives | Ethnicity |
| Which of the following is a psychographic characteristic: Occupation Opinions Age Gender | Opinions |
| Charging different prices to different people is not illegal if the product is a | service |
| Which pricing strategy groups a sport/event product into different segments for customers? | Smoothing |
| Which pricing strategy sets prices lower than those of the competition? | Penetration |
| Which pricing strategy sets prices higher than those of the competition? | Skimming |
