Transcript
Chapter 8
Sports Product Concepts
Multiple Choice
Sports products, in general, tend to be more _____.
goods oriented
ideas oriented
services oriented
marketing oriented
none of the above
Answer: c Page: 218-219 Difficulty: Easy
If a team won every game, this would best exemplify _____.
tangibility
perishability
standardization
separability
none of the above
Answer: c Page: 219 Difficulty: Medium
Which of the following is the sports marketer’s best defense/strategy to combat the intangible nature of sports?
Highlight the competition.
Discuss the great ushers and stadium personnel.
Highlight the stadium factors or sportscape.
Discuss the great athletes on the team,
none of the above
Answer: c Page: 219 Difficulty: Medium
When the athletic shoe chain, Athlete’s Foot, demonstrates the quality of good (Reebok) compared to the quality of service (sale associate), this would be an example of _____.
perishability
separability
tangibility
standardization
both a and c
Answer: b Page: 220 Difficulty: Medium
An example of a sports product would be _____.
baseball cards
Martina Hingis (tennis player)
WNBA
Ricky Martin (NASCAR driver)
all of the above
Answer: e Page: 220-228 Difficulty: Medium
The total assortment of product lines that a sport organization (Nike, Reebok, Wilson) sells is the _____.
product characteristics
product brand
product mix
product trademark
product line
Answer: c Page: 221 Difficulty: Medium
The _____ interact(s) with each other to produce the total product and include(s) branding, quality, and design.
product mix
product line
product trademark
product characteristics
none of the above
Answer: d Page: 223 Difficulty: Medium
Branding is used to _____.
differentiate a brand from its competitors
increase tangibility
avoid trademark infringement
increase trademark blending
protect players from getting lost in the dark
Answer: a Page: 225 Difficulty: Easy
According to the text, a brand mark can also be known as the _____ or _____.
logo; logotype
product; service
mix; line
model; trend
none of the above
Answer: a Page: 225 Difficulty: Medium
Which of the following is the best team nickname, given the guidelines discussed in the text?
Cleveland Indians
San Jose Blue Jackets
St. Louis Blues
Macon Whoopee
None of the above
Answer: c Page: 226-227 Difficulty: Medium
A(n) _____ identifies that a sports organization has legally registered its brand or brand mark and thus prevents others from using it.
prototype
sport product
image
trademark
both a and b
Answer: d Page: 227 Difficulty: Medium
_____ is the value that the brand contributes to a product in the sport market place.
Brand equity
Brand image
Brand awareness
Branding loyalty
None of the above
Answer: a Page: 228 Difficulty: Medium
Licensing allows one company to use the _____ of another.
stadium
trademark
marketing manager
service reliability
both a and b
Answer: b Page: 235 Difficulty: Easy
Which of the following is NOT a dimension of service quality?
tangibles
responsiveness
empathy
durability
assurance
Answer: d Page: 240 Difficulty: Easy
Product design for sports products includes _____.
aesthetics, style, and functionality
aesthetics, style, and color
style, functionality, and usefulness
aesthetics, usefulness, and color
none of the above
Answer: a Page: 243 Difficulty: Medium
True/False
A sports service is usually defined as a tangible, physical product.
Answer: False Page: 218 Difficulty: Easy
According to the sport goods-services continuum, a pure good would be a basketball, football, or golf equipment and a pure service would be a football game or golf tournament.
Answer: True Page: 218 Difficulty: Easy
When Nike advertised it’s F.I.T. apparel, it not only highlighted the comfort of the product, but also the way the apparel made you feel (“ready to take on the challenges of wild and wicked workouts”). This advertisement referred only to the tangible benefits of the product.
Answer: False Page: 219 Difficulty: Medium
According to the text, the sport product characteristics include branding, quality, and design.
Answer: True Page: 223 Difficulty: Easy
Branding is a name, design, symbol, or any combination that a sport organization uses to help differentiate its products from its competitors.
Answer: True Page: 225 Difficulty: Easy
The first step in the sport branding process is brand image.
Answer: False Page: 228 Difficulty: Medium
Brand loyalty is one of the most important concepts for the sport marketers because it refers to repeat purchases of one brand over others.
Answer: True Page: 233 Difficulty: Easy
Licensing is a contractual agreement whereby a sport organization may use another sport organization’s trademark in exchange for a royalty fee.
Answer: True Page: 235 Difficulty: Medium
The 2003 retail sales of licensed sports products for the four major professional sports leagues and college and universities were in the multi-millions of dollars.
Answer: False Page: 236 Difficulty: Medium
From the sports marketing perspective, the consumer’s perception of product quality is of primary importance.
Answer: True Page: 240 Difficulty: Medium
Essay
List and discuss the three characteristics of the sport product.
Suggested Answer:
Branding—a name, design, symbol, or any combination that a sport organization uses to separate itself from competitors. Under branding, you will have: a name (Nike Air Jordan, Florida Gators, Atlanta Hawks), mark or logo (Nike Swoosh), a trademark (legal register to prevent others from using name or logo), the branding process (awareness, image, equity, loyalty), and also licensing (letting others use your brand for a royalty fee).
Quality—two different types: 1) Product Quality is based on how well the product conforms to specifications that it was designed for, and whether the consumer views the product as worthwhile. 2) Service Quality is usually explained in the positive and negative views of the sport consumer (TEAMQUAL).
Design—the aesthetics (physical surroundings, atmosphere), style (way the product or athlete/team/sport performs), and function (what the product is designed for and how it accomplishes this).
Page: 223-243 Difficulty: Challenging
List and describe the four steps in the branding process for a sport product.
Suggested Answer:
Brand awareness—refers to making the consumer in the target market recognize your product.
Brand image—refers to the consumers’ beliefs about the sport product.
Brand equity—refers to the value the brand contributes to the sport product in the marketplace.
Brand loyalty—refers to the consistent preference or repeat purchase of one brand over others.
Page: 228-233 Difficulty: Medium
List and describe the five dimensions of TEAMQUAL.
Suggested Answer:
Reliability—ability to perform promised services dependably and accurately
Assurance—knowledge and courtesy of employees and their ability to convey trust and confidence
Empathy—the caring, individualized attention provided by the sport organizations for its customer.
Responsiveness—willingness to help customers and provide prompt service.
Tangibles—appearance of equipment, personnel, materials, and venue.
Page: 239-240 Difficulty: Medium
Describe how TEAMQUAL would be useful to an expansion franchise of a AA minor league baseball team.
Suggested Answer:
The five dimensions that would be used are:
Reliability—The franchise needs to make the public aware that they stand behind their agreements. If the team promises to make up rain days or refund money, then they do it; if the team makes agreements with sponsors that there will be five address announcements at the game, then they make the announcements.
Assurance—The employees for the team are knowledgeable in the area in which they are hired, so if an employee is hired to deal with the public in the area of security, they should have a working knowledge in this area.
Empathy and Responsiveness—Employees for the team are people oriented, ready to deal with any problem that arises. New franchises will have problems, but knowing how to deal with these problems and in a timely fashion will ensure a favorable view of the team.
Tangibles—Related to physical facilities; the sport fan wants to see professional facilities, and the idea of these facilities are sometimes high. The facilities and personnel appearance will improve the public’s ideas of return visits.
Page: 239-240 Difficulty: Medium
Describe how the branding process would be used for a newly formed team in the National Basketball Association.
Suggested Answer:
The first step is brand awareness—getting the consumers in the target market to know that there is a new basketball team in the area. This could be done in a number of ways through the media. Image—the consumers’ idea about professional basketball is generally set from the success of the NBA. The sport fans for basketball will expect a certain level of play. Equity is determined by the value of the brand. The NBA has an extremely high value level with the general sport fan in the U.S. Loyalty is very important for sport marketing. There are certain teams in the NBA that have a very strong fan base, but for a new team it will be at least 3-7 years before they can start to measure how loyal a fan base they have.
Page: 228-233 Difficulty: Medium
Chapter 9
Managing Sports Products
Multiple Choice
Brand new sports innovations, such as the first time two-man beach volleyball, or the advent of women’s boxing, all represent _____.
new-to-the-world sports product
new category entry
addition to a product line
product improvement
none of the above
Answer: b Page: 250 Difficulty: Medium
The purchase of the LA Dodgers by the Fox Network can be described as a(n) _____.
new-to-the-world product
new category entry
addition to a product line
product improvement
both a and b
Answer: b Page: 251 Difficulty: Medium
According to the text, sports products, such as bowling and billiards, are trying to _____ themselves as “yuppie sports activities” by creating trendy and up-scale environments for sports.
develop
position
reposition
create
none of the above
Answer: c Page: 253 Difficulty: Medium
The creation of a large pool of ideas for potential new products is the primary goal of _____.
idea generation
idea screening
concept development
prototype development
concept screening
Answer: a Page: 257 Difficulty: Easy
Potential customers are first exposed to a firm’s potential new products during ______.
market testing
business analysis
concept development
idea screening
none of the above
Answer: c Page: 257-259 Difficulty: Medium
Product prototypes and marketing strategy can be evaluated in simulated or actual market situations through the use of _____.
test marketing
commercialization
concept development
concept testing
both c and d
Answer: a Page: 260 Difficulty: Easy
The introduction (new sports product) process begins with _____.
evaluation
interest
awareness
adoption
marketing
Answer: c Page: 263 Difficulty: Medium
Nike has just introduced a new product. To encourage successful adoption, the firm must first _____.
make sure the consumer is satisfied
motivate the consumer to try the product
emphasize product advantages
communicate the availability of the new product
none of the above
Answer: d Page: 263 Difficulty: Challenging
The market becomes saturated during the latter part of the _____ stage.
introduction
growth
maturity
expansion
both c and d
Answer: b Page: 264 Difficulty: Medium
NASCAR today is in the _____ stage.
introduction
expansion
decline
maturity
growth
Answer: d Page: 264 Difficulty: Easy
With any new sport product, sales are usually slow at first, but with the onset of the _____ stage, sales will start to increase.
maturity
growth
expansion
introduction
decline
Answer: b Page: 264 Difficulty: Medium
When a sports product starts the _____ stage, marketing goals must be made with regard to what to do with a failing product.
growth
maturity
introduction
decline
expansion
Answer: d Page: 267 Difficulty: Medium
The _____ life cycle is found in most sports where the sales of sports products rise and fall with the opening and closing of that sport.
classic
seasonal
expansion
introduction
none of the above
Answer: b Page: 269 Difficulty: Medium
According to the text, the rate at which new sports products spread throughout the marketplace is referred to as the _____.
growth stage
introduction stage
maturity stage
decline stage
diffusion of innovation
Answer: e Page: 272 Difficulty: Medium
Those consumers most willing to adopt new sports products are called _____.
laggards
buyers
innovators
adopters
thinkers
Answer: c Page: 272 Difficulty: Easy
True/False
Sports products that are new to an organization, but not to the world, are referred to as new product category entries.
Answer: True Page: 251 Difficulty: Easy
Product line extensions are current products that have been modified.
Answer: False Page: 251 Difficulty: Easy
According to the text, dynamically continuous innovations are new sports products that represent changes and improvements but do not strikingly change buying and usage patterns.
Answer: True Page: 254 Difficulty: Medium
When sports organizations develop new products by using a systematic approach, this is referred to as the new product development process.
Answer: True Page: 256 Difficulty: Medium
The first phase of the new sports product development process is idea screening.
Answer: False Page: 257 Difficulty: Medium
Test marketing allows the sports organization to determine consumer response to the product, and also provides information that may direct the entire marketing process.
Answer: True Page: 260 Difficulty: Medium
The final stage of the new sports product development is commercialization, or introduction.
Answer: True Page: 260 Difficulty: Easy
From the time a sports product begins the new product development process to the time it is taken off the market, it passes through a series of stages known as the seasonal life cycle.
Answer: False Page: 262 Difficulty: Medium
The primary marketing objective at the conceptual stage is to maintain whatever advantages were captured in growth and offer a greater number of promotions to encourage repeat purchases.
Answer: False Page: 264 Difficulty: Medium
The groups of consumers (adopters) that follow the innovators are known as the early adopters.
Answer: True Page: 273 Difficulty: Medium
Essay
List and describe the six stages of the new product development process.
Suggested Answer:
Idea Generation—all ideas for new products are considered and come from many sources, such as employees, product development teams, salespeople, and consumers.
Idea Screening—all new product ideas are evaluated and while the poor ones are eliminated, the good ones are considered to see if they fit with the organizational goals.
Analysis of the Concept—the organization begins to analyze potential new products in terms of how they will fit with existing products and how consumers respond to these new products.
Developing the Sports Product—based on the conceptual stage, the design of the product begins so as to move the product to the testing stage. During this stage, a prototype is developed so as to get the product to the consumers for testing.
Test Marketing—this stage allows the sports organization to determine consumer response to the product. There are three types of test marketing that may be conducted—standardized test markets, controlled test markets, and simulated test markets.
Commercialization—this is the last stage, and at this point, the decision has been made to launch the product into production and distribution.
Page: 256-260 Difficulty: Challenging
Define the product life cycle and discuss some of the major objectives at each stage of the life cycle.
Suggested Answer:
From the moment a product begins the new development process to the time it is taken off the market, there are four stages:
Introduction—during this stage, the marketing goal is to generate awareness and to stimulate consumers to be willing to try the new product and to distribute the product to selected target markets.
Growth—sales are expected to increase and the marketing goal is to build consumer preference for your product. During this stage, differentiation occurs by making minor changes or modifications to the product or service.
Maturity—product sales begin to stabilize and the level of competition increases. The primary marketing objective is to maintain the advantages that were in the growth stage and offer promotions to encourage repeat purchases.
Decline—the product begins to lose sales steadily and a decision has to be made; to delete the product (completely shut down), to harvest (milking) the organization by retaining the product but offering little to no marketing support; or to maintain the product at its current level of marketing in hopes that competitors will withdraw from the market that is already in decline.
Page: 262-267 Difficulty: Medium
You are a current sales/marketing executive for AND ONE athletic shoe company. The company has seen tremendous growth with their basketball shoe product line, and now you want to branch out into other athletic shoe ware. Choose a major U.S. sport (football, baseball, basketball) and apply the new product development process.
Suggested Answer:
Student will choose a football, baseball, or basketball shoe and go through the six-step new product development process—idea generation, idea screening, analysis of the concept, develop the product, test market the product, and commercialize (introduce) and distribute the product.
Page: 256-260 Difficulty: Challenging
Under the Model of the Rate of Diffusion in the text, list the three factors that influence the new sports product.
Suggested Answer:
New Product Characteristics.
Trialability—can consumers try your product?
Observability—can consumers see the benefits of your product?
Perceived complexity—does the product appear to be difficult to use or understand?
Relative advantage—does the product seem better than existing ones?
Compatabilty—is the product consistent with consumers’ values or beliefs?
Perceived Newness of Innovation.
Discontinuous—this represents the most innovative or original new products.
Dynamically continuous—new products that represent changes and improvements but don’t change the buying or usage patterns.
Represent ongoing commonplace change such as the minor alteration of a product or the introduction of an imitation product.
Rate of Acceptance of Sport Innovation—the way the information is shared about the new product—mass media (television, print, radio, Internet) and word of mouth.
Page: 272 Difficulty: Medium
List and describe the four types of adopters.
Suggested Answer:
Innovators—the consumers that are first to adopt a new sport product as it enters the marketplace.
Early Adopters—perceived as the most important group to sport marketers, characterized by high social status, carry high degrees of opinion of the product, and influence the word-of-mouth market.
Early Majority—above average in social status, and is heavily influence by innovators and early adopters.
Laggards—oriented toward the past and tend to be very traditional in sport product purchases; prices must be reduced and promotions encouraged for trial of the product.
Page: 273 Difficulty: Medium
Chapter 10
Promotion Concepts
Multiple Choice
The promotion mix is composed of all the following EXCEPT _____.
advertising
sales promotion
propaganda
public or community relations
sponsorship
Answer: c Page: 277 Difficulty: Medium
Which of the following forms of promotion is typically intended to produce immediate sales?
publicity
advertising
sales promotion
direct marketing
both a and b
Answer: c Page: 277 Difficulty: Medium
The process of establishing shared meanings, exchanging ideas, or passing information between a source and a sender is at the heart of _____.
advertising
communication
personal selling
direct marketing
publicity
Answer: b Page: 278 Difficulty: Medium
The Lexus car company has just produced a series of commercials to be aired during the NCAA March Madness men’s basketball tournament. The firm would be considered to be the _____ for those messages.
presenter
source
channel
encoder
receiver
Answer: d Page: 281 Difficulty: Challenging
According to the text, decisions on which _____ to choose depend largely on the overall promotional objective.
decoding
encoding
medium
personal selling
advertising
Answer: c Page: 284 Difficulty: Medium
The intended target of any basic marketing communication is called the _____.
sender
channel
media
receiver
encoder
Answer: d Page: 284 Difficulty: Easy
Distractions or distortions during the communications process that prevents the message from being effectively communicated are called _____.
noise
interruptions
“glitches”
static
none of the above
Answer: a Page: 286 Difficulty: Challenging
Promotion planning begins with _____.
a situation analysis
target market considerations
communication process analysis
budget development
financial acquirement
Answer: b Page: 287 Difficulty: Medium
The emphasis is on convincing channel members to move the product through the channel to the ultimate consumer in a(n) _____ strategy.
pull
implicit
push
explicit
both b and d
Answer: c Page: 287 Difficulty: Medium
An advertiser’s influence on consumers is typically explained through use of the _____ model.
basic communication
advertising alert
hierarchy of effects
message percentage
none of the above
Answer: c Page: 288 Difficulty: Medium
In which of the following budgeting approaches can the previous year’s sales most strongly influence the current year’s advertising budget?
all-you-can-afford
percentage of sales
competitive parity
zero-base budgeting
none of the above
Answer: b Page: 291 Difficulty: Medium
The NBA Denver Nuggets set their promotion budget to equal the percentage allocated by other companies in its industry. The firm is employing the _____ approach.
competitive parity
percentage of sales
percentage of forecasted sales
zero-base
all-you-can-afford
Answer: a Page: 291 Difficulty: Challenging
Which of the following promotional budgeting approaches is the most difficult to implement?
objective and task
competitive parity
percentage of sales
all-you-can-afford
percentage of forecasted sales
Answer: a Page: 291 Difficulty: Medium
Major League Baseball seeks to ensure that its advertising message is consistent with the message of its personal selling and sales promotional efforts. This emphasis upon consistency is most consistent with the concept of _____.
integrated marketing communications
target advertising
direct market communications
sales promotion targeting
mega-marketing communications
Answer: a Page: 292 Difficulty: Challenging
The coordinated use of television, print ads, videos, billboards, direct mail, and other media is called a(n) ______.
systematic promotion punch
cooperative marketing effort
integrated marketing communications program
global marketing campaign
both b and d
Answer: c Page: 292 Difficulty: Medium
True/False
According to the text, communication is the process of establishing a commonness of thought between the sender and the encoder.
Answer: False Page: 278 Difficulty: Medium
According to the text, in sports marketing the sender or source is usually a star athlete.
Answer: True Page: 279 Difficulty: Medium
Credibility is the source’s (athletes, teams, leagues) perceived expertise and trustworthiness.
Answer: True Page: 280 Difficulty: Easy
The element in the sports communication process that develops the exact content of words and symbols to be transmitted to the receiver is the message.
Answer: True Page: 282 Difficulty: Medium
According to the text, a one-sided message only states the positive features of the sports product, whereas a two-sided message includes both the benefits and weaknesses of the product.
Answer: True Page: 283 Difficulty: Medium
Encoding, performed by the receiver, is the interpretation of the message sent by the source through the channel.
Answer: False Page: 284 Difficulty: Easy
The target audience for a push strategy is not channel intermediaries but the ultimate consumer.
Answer: False Page: 287 Difficulty: Medium
The broad sports promotional objectives are to inform, persuade, and remind the consumer, but the ultimate promotional objective is to induce the consumer to action.
Answer: True Page: 288 Difficulty: Challenging
In practice, promotional budgeting is an active and scientific process by which the sports marketer determines the amount spent based on maximizing the monies available.
Answer: False Page: 290 Difficulty: Medium
If the Tampa Bay Lightning made $10 million during the 2003-2004 season, and then budgeted $500 thousand for promotions in the 2004-2005 this would be an example of percentage of sales promotional budgeting.
Answer: True Page: 291 Difficulty: Medium
Essay
List and describe the promotion mix elements.
Suggested Answer:
Advertising—a form of one-way mass communication (TV, radio, print) about a product, service, or idea, paid for by an identified sponsor.
Personal Selling—an interactive form of interpersonal (seller to buyer) communication designed to build customer relationships and produce sales or sports products, services, or ideas.
Sales Promotion—short-term incentives usually designed to stimulate immediate demand for sports products or services.
Public or Community Relations—evaluation of public attitudes, identification of areas within the organization in which the sports population may be interested, and building of a good ‘image’ in the community.
Sponsorship—investing in a sports entity (athletic, league, team, event, and so on) to support overall organization objectives, marketing goals, and more specific promotional objectives.
Page: 277 Difficulty: Medium
List and discuss the elements of the communication process.
Suggested Answer:
Sender of Source—where the message originates and in sport marketing is usually a star athlete and should have credibility (expertise and trustworthiness).
Encoding—translating the sender’s thoughts or ideas in the message, must have effort to make sure the receiver understands and comprehends.
Message—refers to the content of the words and symbols transmitted to the receiver; can be one sided or two sided, one sided translates positive features, two sided translates both benefits and weaknesses. Message can have an emotional appeal, which is used as an attempt to make the customer feel a certain way about the product versus a rational appeal to help the customer arrive at a careful analytical decision. Comparative message is used to compare one sport product to a competitive product.
Medium—refers to the channel through which the message travels from the sender to the receiver. Channels can be personal selling, television, radio, billboards, newspapers, magazines, athlete’s uniforms, and the Internet.
Decoding—refers to the receiver interpreting the message from the source about the product.
Receiver (audience)—the object of the source’s message should be a well-defined target audience.
Noise—this refers to the interference of the message to the receiver; can be the wrong media or too much competition, or the message can be stopped by ambush marketing.
Page: 279-284 Difficulty: Challenging
Define ambush marketing, and discuss how it relates to the communication process.
Suggested Answer:
Ambush marketing is where organizations attempt to confuse consumers and try to make them believe that they are the official affiliated with a sporting event. This process comes into play at the noise element of the communication process and is used to gain an equal footing with an official sponsor of the sporting event; some in the marketing industry believe it to be unethical.
Page: 286 Difficulty: Easy
List and describe the two basic strategies of the target market consideration step in promotional planning.
Suggested Answer:
Push strategy—emphasis on having the channel intermediaries “push” the sports products through the channel of distribution to the final customer. A manufacturer might direct initial promotional efforts to a wholesaler who then promotes the sport product to the retailer and the retailer promotes the product to the final user. The objective is to get as much of the product into the warehouse or store. This strategy generally ignores the customer. The promotion mix element that is most prevalent is personal selling (salesperson of the manufacturer to wholesaler or retailer).
Pull strategy—the target audience is the customer. The broad objective is to stimulate demand of the sport product, and with this, the retailers are forced to stock their shelves with the product. This is the more common of the two strategies.
Page: 287 Difficulty: Medium
List the four types of information that must be available to begin to measure return on investment (ROI) for integrated communications.
Suggested Answer:
Identification of Specific Customers—specific households, including information on the composition of those households to make inferences.
Customer Valuation—placing a value on each household based on either annual purchases or lifetime purchases.
Track Message Delivery—understanding what media consumers or households use to make their purchase decisions, and how a household receives information and messages over time.
Consumer Response—to establish the best ROI, behavioral responses are captured; consumer responses such as attitudes, feelings, and memory are deemed unimportant and purchases, inquiries, and related behaviors are evaluated.
Page: 293 Difficulty: Medium
Chapter 11
Promotion Mix Elements
Multiple Choice
Which of the following types of advertising is primarily aimed at stimulating action or purchase?
corporate advocacy advertising
direct-objectives advertising
cooperative advertising
corporate image advertising
public service advertising
Answer: b Page: 299 Difficulty: Easy
Advertisers use color, sexual images, attractive celebrity endorsers, and humor as ways to increase _____.
consumer attention
message exposure
media industry awards
selective comprehension
novelty attention
Answer: a Page: 301-302 Difficulty: Medium
Typically, creative strategy emphasizes_____.
entertainment
novelty
the product’s competitive advantage or benefits
media selection
none of the above
Answer: c Page: 301 Difficulty: Medium
“What is said” and “how it is said” are goals in _____.
determining advertising budgets
competitive interference efforts
implicit communications
designing creative strategy
message exposure
Answer: d Page: 301 Difficulty: Medium
The _____ should answer the appeal that the advertiser is trying to target.
advertising execution
message exposure
emotional appeal
entertainment value
none of the above
Answer: a Page: 303 Difficulty: Medium
The sponsored product is directly pitted against rivals on specific points under _____ advertising.
subjective
cooperative
comparative
direct
both a and b
Answer: c Page: 304 Difficulty: Easy
The Tampa Bay Lightning is preparing an advertising campaign in which it will contrast its products with those of named competitors on a point-by-point basis. The team is employing _____.
misleading advertising
unethical business practices
comparative advertising
a push strategy
none of the above
Answer: c Page: 304 Difficulty: Medium
_____ show(s) a “common” athlete or consumer in a common, everyday situation where the consumer might be using the advertised sports or non-sports product.
Slice-of-life advertisements
Comparative advertising
Scientific advertisements
Non-specific advertisements
Subjective advertising
Answer: a Page: 305 Difficulty: Medium
Source credibility refers to _____.
power
expertise and trustworthiness
attractiveness
exposure rate
the repetition factor
Answer: b Page: 306 Difficulty: Easy
_____ addresses two basic questions about the channel (medium) of communication.
Comparative advertising
Slice-of-life advertising
Scientific advertising
Media strategy
Promotional strategy
Answer: d Page: 309 Difficulty: Challenging
Which of the following media is probably best for presenting complex or factual information?
television
radio
magazines
outdoor advertising
Internet
Answer: c Page: 310 Difficulty: Medium
The number of times a person or household is exposed to a communication vehicle is called _____.
reach
frequency
exposed rate
the repetition factor
the novelty factor
Answer: b Page: 315 Difficulty: Easy
The following are all media scheduling alternatives EXCEPT _____ schedule.
continuous
flighting
pulsing
seasonal
All of the above are media scheduling alternatives.
Answer: e Page: 316 Difficulty: Medium
Which of the following is NOT considered a role that influences the buying process?
economic buying role
user buying role
professional buying role
technical buying role
coach’s role
Answer: c Page: 318 Difficulty: Medium
All of the following are common sales promotion tools EXCEPT _____.
rebates
coupons
buy one get one free
contests
publicity releases
Answer: e Page: 320-325 Difficulty: Medium
True/False
Advertising is one tool of the sport marketer, but it has its limitations, especially in the area of visibility.
Answer: False Page: 298 Difficulty: Medium
When the NBA uses advertising such as “I Love this Game,” they are trying to enhance their image. This is an example of indirect objectives in promotional advertising.
Answer: True Page: 300 Difficulty: Medium
According to the text, the sport marketer should remember that advertising budgeting should ideally stem from the objectives the advertising is attempting to achieve.
Answer: True Page: 301 Difficulty: Challenging
Today’s sport marketer should be aware of emotional appeals in advertising. This type of advertising is not an effective way of conveying the benefits for health or pleasure.
Answer: False Page: 302 Difficulty: Medium
Pleasure or fun appeals are designed for those target audiences that participate in sports or watch sports for fun, social interaction, or enjoyment.
Answer: True Page: 303 Difficulty: Easy
A one-sided message conveys both the positive and negative benefits of a sports product or service.
Answer: False Page: 304 Difficulty: Medium
Reach refers to the number of people exposed to an advertisement in a given medium.
Answer: True Page: 315 Difficulty: Easy
When the sport marketer is considering an advertisement schedule, seasonal scheduling is the most prevalent because most sports, like running or jogging, are seasonal.
Answer: False Page: 316 Difficulty: Challenging
Baseball cards, NASCAR model car replicas, water bottles, hats, refrigerator magnets, and posters are items that can be given away with the sports product or at events and are known as premiums.
Answer: True Page: 321 Difficulty: Medium
Sampling is the element of the promotional mix that identifies, establishes, and maintains mutually beneficial relationships between the sports organizations and the various publics on which its success or failure depends.
Answer: False Page: 324 Difficulty: Medium
Essay
List and describe the two categories of advertising objectives.
Suggested Answer:
Direct advertising—this is used to elicit a behavioral response from the target audience. This response may be purchasing tickets to a sporting event (game, tournament, etc.), buying a certain sporting good, or involvement in some type of athletic event.
Indirect advertising—this is used to establish pre-behavioral responses by the consumer. This is accomplished by increasing awareness, enhancing image, improving attitudes, or educating the consumer. This type of advertising should lead to direct behavioral responses.
Page: 299-300 Difficulty: Easy
Define the creative process, and list the three desired outcomes.
Suggested Answer:
The creative process is generating the ideas or the concepts for the advertisement. The desired outcomes are (1) identifying benefits of the sports products, (2) designing the advertising appeal—what to say, and (3) developing the advertising execution—how to say it.
Page: 301 Difficulty: Easy
List and describe the five types of advertising appeals for sport marketing.
Suggested Answer:
Health appeals—markets to the concern of the value that society places on a desired lifestyle, is becoming more prevalent in advertising; an important consideration in this type of advertising is demographic profiling.
Emotional appeals—such humor, sex, pleasure, and drama are associated with athletic competition and are used in sports marketing promotions. This is exploited with the emotional attachment that consumers develop for sports products; recognizing this strong emotional component, sport marketers use it to their advantage.
3. Fear appeals—this is an emotional appeal but it is used to communicate negative consequences if the sport product or service is not used or is used improperly.
4. Sex appeals—these advertisements rely on the adage that “sex sells”; these are used for products that are sexually related such as perfumes and clothing; but are also used to sell other products (Sports Illustrated, Swimsuit Ed.). and even league and types of sports, women’s beach volleyball with Gabrielle Reece and women’s tennis with Anna Kournakova.
5. Pleasure and Fun appeals—these target audiences participate in sports or watch sports for fun, social interaction, or enjoyment. These types of advertisements stress the positive relationships that can develop with family members, friends, or business associates by attending games or participating in sports.
Page: 301-303 Difficulty: Medium
According to the text, there are four guidelines for using sports celebrities as endorsers. List two of these guidelines.
Suggested Answer:
1. Advertisements using athlete endorsers who appear during contests or events in which the athlete is participating are less effective.
2. Long-term relationships or associations between the product and the endorser are key—cannot be short-term or one-shot deals to be effective.
Page: 308 Difficulty: Medium
From the text, list the four benefits of personal selling (Table 11.5).
Suggested Answer:
Personal selling allows the salesperson to immediately adapt the message they are presenting based on feedback received from the target audience.
Personal selling allows the salesperson to communicate more information to the target audience than other forms of promotion. Moreover, complex information can be explained by the salesperson.
Personal selling greatly increases the likelihood of the target audience paying attention to the message. It is difficult for the target audience to escape the message because communication is person to person.
Personal selling greatly increases the chances of developing a long-term relationship with consumers, due to the frequent person-to-person communication.
Page: 317 Difficulty: Challenging
Chapter 12
Sponsorship Programs
Multiple Choice
Investing in a sports entity to support overall organizational objectives, marketing goals, and/or promotional strategies is called _____.
sales promotion
advertising
sponsorship
personal selling
image building
Answer: c Page: 330 Difficulty: Easy
The sponsorship process stems from the larger promotional strategy and includes all of the following EXCEPT ______.
sponsorship budgeting
sponsorship evaluation
sponsorship design type
sponsorship acquisition
All of the above are part of the sponsorship process.
Answer: c Page: 333 Difficulty: Medium
When budgeting for sponsorship, a general rule of thumb is to be prepared to spend _____.
1-2 times the amount of the sponsorship on promoting the sponsorship
2-3 times the amount of the sponsorship on promoting the sponsorship
3-4 times the amount of the sponsorship on promoting the sponsorship
6 times the amount of the sponsorship on promoting the sponsorship
No extra promotional dollars are required.
Answer: b Page: 333 Difficulty: Medium
According to the text, the final stage of the sports sponsorship process involves _____ and _____.
implementation; segmentation
implementation; evaluation
evaluation; segmentation
implementation; processing
processing; marketing
Answer: b Page: 334 Difficulty: Medium
Sponsorship objectives that have a short-term impact on sales are called _____.
indirect
direct
implied
stimulant
both a and b
Answer: b Page: 337 Difficulty: Easy
Some of the indirect sponsorship objectives include _____.
awareness
image building
relationship building
reaching new target markets
all of the above
Answer: d Page: 337 Difficulty: Medium
One of the basic objectives of any sport sponsor is to generate _____.
competition
awareness
image building
relationships with its product
none of the above
Answer: b Page: 337 Difficulty: Medium
Ambush marketing is an example of _____ in the communications process.
encoding
decoding
sponsorship
noise
both a and b
Answer: d Page: 339 Difficulty: Challenging
Evidence of relationship marketing as a sponsorship objective can be seen by _____.
new advertising
point of sale displays in stores
luxury boxes at the events
implied advertising
all of the above
Answer: c Page: 344 Difficulty: Medium
A model of how corporations select and choose sponsorship opportunities is called _____.
sponsorship seeking model
sponsorship acquisition model
sponsorship contact model
sponsorship relationship model
none of the above
Answer: b Page: 352 Difficulty: Easy
The sports event pyramid is best described as a way to _____.
categorize the scope of the sponsorship
look at the sponsors objectives
evaluate the sponsorship return on investment
build public image for the sponsorship
none of the above
Answer: a Page: 353 Difficulty: Medium
The World Cup is considered a(n) _____ event.
international
global
world
regional
both a and c
Answer: b Page: 353 Difficulty: Easy
The state high school baseball championship would be best described as a _____ event.
regional
local
national
community
worldwide
Answer: b Page: 353 Difficulty: Easy
The athletic platform can be divided on the basis of _____.
athlete
team
league
event
all of the above
Answer: e Page: 354 Difficulty: Easy
The athletic platform most commonly associated with sports marketing is _____.
team
athlete
event
league
level of competition
Answer: c Page: 358 Difficulty: Medium
True/False
According to the text, the sponsorship program plays no part of the sport promotional strategy.
Answer: False Page: 333 Difficulty: Medium
Not unlike advertising objectives, sponsorship can be categorized as either direct, indirect, or neutral.
Answer: False Page: 337 Difficulty: Challenging
According to the text, a primary objective of sport sponsorship is to stamp out or meet any competitive threats.
Answer: True Page: 337 Difficulty: Medium
Ambush marketing is a planned effort by an organization to associate itself directly with an event to gain at least some of the recognition and benefits that are associated with being an official sponsor.
Answer: False Page: 338 Difficulty: Challenging
Relationship marketing is one of the most important issues for sports marketers in today’s competitive marketing environment.
Answer: True Page: 344 Difficulty: Medium
According to the text, the eventual objective for nearly all organizations involved in sponsorship programs is to increase sales.
Answer: True Page: 346 Difficulty: Medium
The purchase decision is at the center of the Sport Sponsorship Acquisition Model.
Answer: False Page: 352 Difficulty: Medium
In the Sport Sponsorship Acquisition Model, the influencers are individuals who can impact the decision-making process.
Answer: True Page: 352 Difficulty: Medium
According to the text, international events are at the apex of the Sports Event Pyramid.
Answer: False Page: 353 Difficulty: Medium
According to the text, the most commonly associated athletic platform for sport marketers is the event.
Answer: True Page: 358 Difficulty: Easy
Essay
List and describe the sponsorship objectives.
Suggested Answer:
Direct sponsorship objectives—these have a short-term impact on consumption behavior and focus on increasing sales.
Indirect sponsorship objectives—they lead to enhancing sales through awareness, meeting and beating competition, reaching new target markets, building relationships, and improving image.
Page: 337 Difficulty: Easy
List and describe the five elements of Indirect Sponsorship Objectives.
Suggested Answer:
Awareness—most basic objective of the sponsor is to generate recognition of its products and services, product lines, or corporate name.
Competition—a primary objective of the sponsor is to meet or stamp out its competitor. Many corporations are not interested in sponsorship, but cannot afford to let their competitor get any more of an edge on sponsorship recognition.
Reaching Target Markets—allows corporations to reach certain people who are attracted to sports. These sport events represent a natural forum for psychographic segmentation of consumers.
Building Relationships—building long-term relationships with corporate and sport entities has become a prime objective in sponsorship, especially in professional and big time collegiate athletic community. This is done on an expensive level with prices exceeding the hundreds of thousands of dollars.
Image Building—perhaps the most important reason for sponsorship of a sports entity. This is a two-way process for both the sponsor organization and the sports entity—the organization associates itself and/or its brands with the positive image generated by the unique personality of the sporting event.
Page: 337-345 Difficulty: Challenging
Define the concept of ambush marketing, and give a specific example within the sport marketing industry.
Suggested Answer:
Ambush marketing is the planned effort of an organization to associate itself indirectly with an event to gain at least some of the recognition and benefits that are associated with being an official sponsor. The text gives some examples; one is the Nike commercial of 1984 “I love LA,” before the Summer Olympics, even though Nike was not an official sponsor.
Page: 338 Difficulty: Medium
At the center of the Sport Sponsorship Acquisition Model is a group of individuals that play a unique role (buying center composition) in the actual acquiring of the sponsorship. List and describe the roles of this group.
Suggested Answer:
Gatekeepers—control the flow of information to the other members of the buying center.
Influencers—individuals that have information regarding the sports entity requesting the sponsorship; this information has been acquired through contacts they have in the community or industry.
Decision Maker—the individual within the buying center that has the responsibility to accept or reject the proposal.
Page: 352 Difficulty: Medium
List and describe the five levels of the Sports Event Pyramid (from top to bottom).
Suggested Answer:
Global event—at the apex of the pyramid, it has the broadest coverage and is viewed extensively around the world. The Summer and Winter Olympics are the only true examples of this type of sport event.
International event—the next level in the pyramid and has two distinctions—a high level of interest abroad, but not global; or truly be global in scope but have a lower level of interest. Wimbledon, European Cup Soccer, American’s Cup, and the Pan-American Games are examples of this level.
National event—this level has high interest in a single country or two countries. Examples are MLB World Series, NCAA Final Four, and Super Bowl.
Regional event—has a narrow geographic focus within the region. The SEC football championship game, the Big East basketball tournament, and the Boston Marathon are all examples.
Local event—lowest level and has a narrow geographic focus, such as a city, county, or state segment of consumers. City baseball tournaments, school county championships, and high school state tournaments are good examples.
Page: 353 Difficulty: Challenging
Chapter 13
Distribution Concepts
Multiple Choice
The ability of consumers to gain access to sports in a timely fashion at a convenient location is the essence of (a) _____.
marketing mix
distribution
promotion
promotion mix
none of the above
Answer: b Page: 365 Difficulty: Medium
The individuals or organizations that route the sports product to the final consumer are known as the _____.
channel of distribution
delivery chain
channel captains
distribution team
distribution mix
Answer: a Page: 368 Difficulty: Easy
New sports delivery systems include which of the following?
the Internet
direct mail
hand delivery
interactive billboards
all of the above
Answer: a Page: 368 Difficulty: Easy
Middlemen are more formally known as channel _____.
captains
distributors
intermediaries
blockers
mixers
Answer: c Page: 370 Difficulty: Medium
The _____ function is the first channel function and is performed mostly by sporting goods retailers.
inventory
marketing communications
physical distribution
information
direct
Answer: d Page: 371 Difficulty: Medium
Ordering the correct assortment of merchandise and storing merchandise is a function called _____.
inventory management
intermediary management
physical distribution
inventory distribution
channel management
Answer: a Page: 372 Difficulty: Easy
Without the _____ function, products would not be moved from producer to consumer.
marketing communications
information
physical distribution
direct channel
none of the above
Answer: c Page: 372 Difficulty: Medium
The Internet affords consumers with a(n) _____ channel of distribution.
indirect
direct
single
fast
none of the above
Answer: b Page: 372 Difficulty: Medium
Nike shoes being sold in a wide variety of outlets is an example of _____ distribution.
exclusive
selection
selective
intensive
channel
Answer: d Page: 373 Difficulty: Challenging
The total number of sports retailers in the U.S. is _____.
growing
shrinking
staying the same
expanding in size
none of the above
Answer: b Page: 374 Difficulty: Medium
Which of the following factors influences retail image?
atmospherics
location
size of the store
clientele
All the above are influences.
Answer: e Page: 379 Difficulty: Medium
Activities that take place before, during, and after the sale are known as _____.
customer satisfaction
customer delight
customer service
service quality
all the above
Answer: c Page: 381 Difficulty: Medium
Purchases made outside of traditional sports outlets and usually in the home are considered _____ retailing.
non-sports
non-store
in-home
point-of-purchase
none of the above
Answer: b Page: 382 Difficulty: Medium
One of the primary advantages of web shopping for sports marketers is _____.
it is easier to promote
it can sell more products
highly uniform target audiences
the number of audiences are restricted
All of the above are advantages.
Answer: c Page: 382 Difficulty: Medium
According to the text, modern _____ distribution tasks include marketing the game, advertising, sales force management, sales force operations, technical support, and customer service.
channel
selective
exclusive
ticket
intensive
Answer: d Page: 387 Difficulty: Challenging
True/False
Those individuals or organizations that take part in the distribution process are referred to as channel members.
Answer: True Page: 368 Difficulty: Medium
Channel intermediaries are organizations or individuals that are at the beginning process of producers and consumers.
Answer: False Page: 370 Difficulty: Medium
According to the text, the marketing communications function involves a number of activities, such as advertising and promotion, personal selling, and public relations.
Answer: True Page: 372 Difficulty: Medium
Direct channels of distribution are longer in length because of the intermediaries between the producer and consumer.
Answer: False Page: 372 Difficulty: Medium
Exclusive distribution occurs when only one outlet is used to market products per geographic market.
Answer: True Page: 373 Difficulty: Easy
The most critical sports retailing distribution decision is the first-year budget.
Answer: False Page: 377 Difficulty: Medium
According to the text, the term that best encompasses the many facets of in-store image is atmospherics.
Answer: True Page: 379 Difficulty: Medium
Promotional activities a sports retailer implements can affect a store’s image.
Answer: True Page: 381 Difficulty: Easy
Database marketing measures customers’ buying behavior so the sports marketer is able to distinguish loyal fans from first-time purchasers.
Answer: True Page: 382 Difficulty: Medium
Network and cable television, radio, and the Internet can all be considered as producers in the sports distribution process.
Answer: False Page: 388 Distribution: Challenging
Essay
List, describe, and give examples of the three degrees of market coverage for sports products.
Suggested Answer:
Exclusive distribution—when only one outlet is used to market the sport product per geographic market. The TV network of NBC is an exclusive distributor of the Winter and Summer Olympics.
Selective distribution—refers to making sports products available in several, but selectively chosen outlets. The NFL selectively distributes its regular season games on FOX, CBS, ESPN, and ABC.
Intensive distribution—refers to selling sports products in a large number of outlets. Nike athletic shoes are sold in Foot Locker, Footaction, and Niketown retail stores.
Page: 373 Difficulty: Medium
List and describe the five consumers for price orientation.
Suggested Answer:
Brand-Loyal—believe their brand is superior to others and are willing to pay a fair price even if it is slightly higher
Status-Seeking—will only purchase the highest-quality, most prestigious, name brand and will pay higher prices. Higher prices are welcomed because of status associated with the price tag.
Service-Seeking—willing to pay slightly higher prices if compensated by higher levels of service. This is important for consumers who require higher levels of information from store personnel.
Convenience Customers—value the location of the store and the ease of purchasing products that this offers. They are less likely to “shop around” and thus more likely to pay above-average prices.
Price-Shopping—will “shop around” for the best deal at the lowest possible price.
Page: 377 Difficulty: Challenging
In the text, there are five general guidelines for choosing a store location. List and describe three.
Suggested Answer:
Consider the types of stores that will be around yours. You would not want to start an upscale athletic store around discount stores like K-mart or Dollar General Store.
Consider the number and quality of competitors in the area.
Consider the cost (rent, taxes, maintenance) of the potential location.
Page: 378 Difficulty: Medium
Discuss the stadium as a “place” for the distribution concept in sports marketing.
Suggested Answer:
The game is a primary place of distribution, and as such the stadium becomes the factory or place where the product or service is consumed. In the past decade, sport facilities have seen a great boom in building, and with these new facilities, an increase in the total sport experience has been a major thrust by sport marketers. The
sport stadiums are used to the utmost degree to capture all available outlets for the sports to be marketed.
Page: 383 Difficulty: Medium
Discuss the “sports media” as a distribution concept.
Suggested Answer:
Network and cable television, radio, and the Internet have been the dominant form of venue for sports games, tournaments, or events. With sports media leaders being seen as the most powerful people in sports, there seems to be no letup of sports media being the biggest and most influential distributor for sport marketing. This type of distribution is still being expanded to new geographical areas of the world, and has maintained a solid hold on existing outlets.
Page: 388-390 Difficulty: Medium
Chapter 14
Pricing Concepts
Multiple Choice
A statement of value for a sports product is (a) _____.
price
discount fee
exchange process
contract
value
Answer: a Page: 396 Difficulty: Easy
The most central tenet in pricing is understanding the concept of _____.
discounting
merchandising
value
deals
both a and d
Answer: c Page: 398 Difficulty: Medium
The internal factors determining the price of a sports product include all of the following EXCEPT _____.
consumer demand
promotion
product
distribution
cost
Answer: a Page: 401 Difficulty: Medium
The external factors that determine the price of a sports product include which of the following?
competition
cost
organizational objectives
economy
both a and b
Answer: e Page: 401 Difficulty: Medium
According to the text, the _____ component of the promotional mix that is a part of the internal factors affecting price is important in the launch of a new sports product.
production
technology
public relations
consumer demand
none of the above
Answer: c Page: 402 Difficulty: Challenging
Exclusive distribution of a sports product is usually associated with _____.
higher pricing
lower prices
penetration pricing
discount merchandising
value pricing
Answer: a Page: 402 Difficulty: Challenging
Most professional sports teams at the Major League level engage in _____.
price competition
non-price competition
price wars
cost-plus pricing
value pricing
Answer: b Page: 404 Difficulty: Medium
Rent or lease on an arena for a minor league hockey franchise is considered a(n) _____ cost item.
total
fixed
variable
intermediary
limited
Answer: b Page: 405 Difficulty: Medium
Packaging costs for a new pair of rollerblades represent a _____ cost item.
total
fixed
variable
intermediary
none of the above
Answer: b Page: 405 Difficulty: Challenging
Most professional sports teams are LEAST concerned about what type of organization objective?
income
sales
competition
revenue
promotion
Answer: c Page: 409 Difficulty: Medium
There are four categories of organizational objectives that influence pricing decisions. Which of the following is NOT one of those categories?
income
consumer
sales
competitive
social
Answer: b Page: 409 Difficulty: Medium
The quantity of a sports product that consumers are willing to purchase at a given price is known as _____.
consumer demand
consumer price curve
consumer price index
consumer supply curve
none of the above
Answer: a Page: 410 Difficulty: Easy
All of the following are ways to estimate demand EXCEPT _____.
consumer income levels
consumer tastes
organizational objectives
availability of substitute products
All of the above are ways to estimate demand.
Answer: c Page: 410-412 Difficulty: Challenging
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 _____.
unitary
inelastic
appealing
elastic
both a and d
Answer: d Page: 411 Difficulty: Medium
The _____ that may affect a consumer’s acceptable range of prices include the presence or absence of time, the usage situation, and social factors.
situational factors
elastic demand
variable cost
price perception
value factors
Answer: a Page: 413 Difficulty: Medium
True/False
Internal (or environmental) factors are controlled by the sports product organization.
Answer: False Page: 401 Difficulty: Medium
Coupons and rebates are price discounts designed to encourage purchase of the sports product, and are another way for consumers to get money back from the original purchase.
Answer: True Page: 402 Difficulty: Medium
According to the text, most sports product prices are negotiable.
Answer: False Page: 402 Difficulty: Easy
With the sports pricing concept, costs are those factors associated with producing, promoting, and distributing the sports product.
Answer: True Page: 404 Difficulty: Medium
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.
Answer: True Page: 405 Difficulty: Medium
According to the text, many sports organizations, particularly amateur athletic organizations, determine the pricing of their sporting events based on social concerns.
Answer: True Page: 409 Difficulty: Medium
Consumer demand is one of the least critical factors in determining the price of sports product.
Answer: False Page: 410 Difficulty: Easy
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.
Answer: True Page: 411 Difficulty: Easy
The mob effect (or the crowd effect) describes a situation in which consumers believe it is socially desirable to attend “special” sporting events.
Answer: True Page: 414 Difficulty: Easy
When it comes to external factors putting constraints on sports pricing, legal issues are an area that has little effect on sport products.
Answer: False Page: 416 Difficulty: Medium
Essay
Using the box entitled The Value of a Seat, explain what Personal Seat Licenses (PSL) are, and give the pros and cons for this type of sport ticket pricing.
Suggested Answer:
Personal Seat Licenses—when individuals pay for the future rights to purchase tickets at a new stadium for seats in desired locations within the stadium. This is a relatively new marketing tool to help offset new stadium building. PSL’s can be purchased and in many cases passed on to family members or can be sold by the first purchaser to others.
The Pros—this has been a way of minimizing the need for public money needed to build major sport facilities, and in return fans receive something o