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Worksheets

SEM II 3.01-3.05

Total questions: 29

Worksheet time: 1hrs 3mins

Name
Class
Date
1.

Which stadium seating arrangements are usually the least expensive tickets that fans can purchase?

a)

General admission

b)

Reserved

c)

Luxury boxes

d)

Festival

2.

One reason it is important for sports or event marketers to be able to accurately explain ticketing and seating arrangements is to help customers with which action?

a)

Obtain the type of seats they want at the price they want to pay

b)

Select seats that are located near concession stands

c)

Purchase discount tickets from a permanent box office

d)

Identify the type of sports or events that is the most appropriate

3.

What type of ticket or seating arrangement do sport venues sell to accommodate spectators who are price conscious and are willing to occupy any available seats on a first-come, first-served basis?

a)

Reserved

b)

General admission

c)

Box

d)

Aisle

4.

Expanded bandwidth is changing the face of in-home entertainment by performing which activity?

a)

Eliminating the need for cable hookups

b)

Allowing for delivery of the Internet through television sets

c)

Improving fiber-optic cable and electrical lines

d)

Creating high-definition television

5.

Which is a decision about place that must be made in sports and entertainment marketing?

a)

“Should direct mail be sent to the ticket holders of last season?”

b)

“Will local or national media be used?”

c)

How will fans obtain the schedule of events?”

d)

Where will ticket outlets be found?”

6.

Rhonda is making a presentation to the chamber of commerce of a large city in anticipation of building a sports complex. What is the primary element of distribution that she should discuss with them?

a)

Amenities

b)

Revenues

c)

Parking spaces

d)

Facilities

7.

The cable network that televises college basketball games throughout the country is performing which activity of the sports product?

a)

Distributing

b)

Franchising

c)

Publicizing

d)

Sponsoring

8.

If the selling price of a product is $430 per unit, and the number of units required to reach the breakeven point is 2,100, what is the total dollar sales the business needs to break even?

a)

$850,000

b)

$890,000

c)

$903,000

d)

$985,000

9.

If a goal is to avoid storing or discarding merchandise, what pricing strategy should be selected?

a)

Competitive

b)

Close out

c)

Cost plus markup

d)

Versioning

10.

The variable cost for a product is $3, and the total fixed costs are $288,000. The company sells the products for $6 each. How many products will the company have to sell to break even?

a)

96,000

b)

48,000

c)

32,000

d)

4,800

11.

An increase in ticket prices is most accepted by fans if a sport has which demand for tickets?

a)

Inelastic

b)

Low

c)

Elastic

d)

Unitary

12.

Determine the breakeven point in units using the total fixed cost, $4,000; variable cost per unit, $20; and selling price per unit, $100.

a)

50 units

b)

80 units

c)

100 units

d)

500 units

13.

A business purchased a line of items for resale that cost $9.32 each. Expenses total $1.65 per item. What is the breakeven price per item?

a)

$11.92

b)

$11.71

c)

$11.26

d)

$10.97

14.

What do sales beyond the breakeven point provide to a business?

a)

Initial markup

b)

Variable-cost margin

c)

Dividends

d)

Profit

15.

A college athletic department set the football ticket prices so that the organization can earn income of $12 per ticket after covering expenses. This is an example of a price objective based on which component?

a)

Demand

b)

Competition

c)

Profitability

d)

Volume

16.

A soccer camp provided five leaders at $8 per hour for eight hours a day for five days. If benefits are 20% of the wages and supplies total $650, calculate the cost per person if 40 players attend.

a)

$64.25

b)

$56.25

c)

$48.00

d)

$32.25

17.

Why do sportswear stores calculate breakeven in units?

a)

To identify which products they should purchase for resale

b)

To find out how much profit they will earn after they breakeven

c)

To identify which costs are variable and which are fixed

d)

To determine how many products they must sell to breakeven

18.

When setting ticket prices for professional baseball games, the organization considers the performance of the team. Which factor is considered?

a)

Situational

b)

Ethical

c)

Operational

d)

Developmental

19.

Why would an event marketer promote an upcoming celebrity golf tournament at an exclusive course as an once-in-a-lifetime event?

a)

To have expensive media coverage

b)

To obtain more industry support

c)

To increase advertising costs

d)

To generate higher ticket prices

20.

A sporting event setting ticket prices based on the ability of potential customers to pay is an example of what pricing strategy?

a)

Promotion

b)

Objective

c)

Restriction

d)

Motive

21.

Which is the least important factor when selecting a pricing strategy?

a)

Promotional strategy

b)

Competitor price

c)

Cost of merchandise

d)

Location of store

22.

A professional football team that increased ticket prices for next season because the team is on a winning streak selected a pricing strategy based on which situation?

a)

Previous winning potential

b)

Number of games played

c)

What the market will bear

d)

Location of the target market

23.

When a hockey team set its ticket prices so it can achieve its goal of increasing its fan base by five percent, the hockey team established a price objective in conjunction with which type of activity?

a)

Licensing

b)

Cost

c)

Sales

d)

Contingency

24.

Which is a characteristic of product bundling in the sports or event industry?

a)

Lower prices

b)

Higher quality

c)

Higher prices

d)

Lower quality

25.

One reason sports or event marketers often bundle extra amenities with tickets is to perform which action?

a)

Manage distribution

b)

Increase revenue

c)

Improve coverage

d)

Control publicity

26.

When developing a preseason booking strategy, the most important factors for a sports or event organization to consider are its timing, target markets, and which other one?

a)

Security issues

b)

Geographic origin

c)

Inventory needs

d)

Selling methods

27.

A successful preseason booking strategy often involves targeting which group?

a)

Occasional attendees

b)

Current ticket holders

c)

Walk-up spectators

d)

Community organizations

28.

When forecasting ticket sales for a professional basketball team, sporting event organizers should consider which factor?

a)

The television network broadcast rights

b)

The size of the opponent’s stadium

c)

The team’s performance record

d)

The availability of the press-box space

29.

Which is an incentive that sports organizations often use to sell tickets to large groups?

a)

Advertising

b)

Discounts

c)

Publicity

d)

Merchandising