Deck 12: Pricing Concepts and Strategies

Question 1

The internal factors determining the price of a sports product include all of the following EXCEPT _____.

A) consumer demand
B) promotion
C) product
D) distribution
E) cost

Answer 1

A

Question 2

The quantity of a sports product that consumers are willing to purchase at a given price is known as _____.

A) consumer demand
B) consumer price curve
C) consumer price index
D) consumer supply curve
E) none of the above

Answer 2

A

Question 3

The mob effect (or the crowd effect)describes a situation in which consumers believe it is socially desirable to attend "special" sporting events.

Answer 3

True

Question 4

When it comes to external factors putting constraints on sports pricing,legal issues are an area that has little effect on sport products.

Question 5

Exclusive distribution of a sports product is usually associated with _____.

A) higher pricing
B) lower prices
C) penetration pricing
D) discount merchandising
E) value pricing

Question 6

Advertising and promotional costs for a local minor league baseball team that can increase or decrease from month to month would be a good example of variable cost.

Question 7

The most central tenet in pricing is understanding the concept of _____.

A) discounting
B) merchandising
C) value
D) deals
E) both a and d

Question 8

Ski equipment that is discounted in the summer to stimulate sales is known as _____.

A) quantity discounting
B) sales
C) special discounting
D) seasonal discounting
E) referent discounting

Question 9

An average ticket price to a single NY Jets game is reduced from $65.00 to $55.00 and the number of units sold increases dramatically. The demand is considered _____.

A) unitary
B) inelastic
C) appealing
D) elastic
E) both a and d

Question 10

With the sports pricing concept,costs are those factors associated with producing,promoting,and distributing the sports product.

Question 11

Most professional sports teams are LEAST concerned about what type of organization objective?

A) income
B) sales
C) competition
D) revenue
E) promotion

Question 12

A statement of value for a sports product is (a)_____.

A) price
B) discount fee
C) exchange process
D) contract
E) value

Question 13

All of the following are ways to estimate demand EXCEPT _____.

A) consumer income levels
B) consumer tastes
C) organizational objectives
D) availability of substitute products
E) All of the above are ways to estimate demand.

Question 14

Rent or lease on an arena for a minor league hockey franchise is considered a(n)_____ cost item.

A) total
B) fixed
C) variable
D) intermediary
E) limited

Question 15

Consumer demand is one of the least critical factors in determining the price of sports product.

Question 16

The _____ that may affect a consumer's acceptable range of prices include the presence or absence of time,the usage situation,and social factors.

A) situational factors
B) elastic demand
C) variable cost
D) price perception
E) value factors

Question 17

Unitary demand is defined as a situation where price changes are offset exactly by changes in demand; in other words,price and demand are perfectly related.

Question 18

(The)_____ is the point at which consumers detect a change between two stimuli (prices).

A) price skimming
B) cost-based pricing
C) psychological pricing
D) just noticeable difference (JND)
E) penetration pricing

Question 19

There are four categories of organizational objectives that influence pricing decisions.Which of the following is NOT one of those categories?

A) income
B) consumer
C) sales
D) competitive
E) social

Question 20

External (or environmental)factors are controlled by the sports product organization.

Question 21

List and describe the three types of consumer demand.

Question 22

List and describe the four categories of organizational objectives that influence the sport pricing decisions.

Question 23

Define price discounts and list and describe the types.

Question 24

In sports marketing,price adjustments may be made in order to stimulate demand for sporting products when sales expectations are not currently being met.

Question 25

Explain the mathematical equation TC = FC + VC in terms for a minor league baseball team.

Question 26

Seasonal discounts are prevalent in sports marketing because of the nature of most sports (snow skiing,waterskiing,fishing,football,baseball).

Question 27

The text lists five laws that have affected the pricing of sports products.List and describe three of these laws.