2009 DECA Ontario Provincials Competition SMDM
Test 1011 SPORTS & ENTERTAINMENT TEAM DECISION 1
1.Jake wanted to run his own sport-equipment business but was unsure that he had adequate business skills to be successful. Which type of business structure would give Jake the help he needs?
A.Close corporation C.Business-format franchise
B.Sole proprietorship D.Product trade-name franchise
2.Which law allows major professional sport leagues to prevent certain games from being shown in certain territories?
A.The Sports Broadcasting Act of 1961C.The Sherman Antitrust Act
B.The National Labor Relations Act D.The Lanham Act
3.A facility that simply holds goods until they are needed and is owned and operated by the sporting-goods business that uses it is called a
A.private storage warehouse.C.public storage warehouse.
B.public distribution center. D.private distribution center.
4.Which of the following factors helps determine if a sporting-goods manufacturer is illegally using closed sales territories for distribution purposes:
A.Reduced competition C.Perishable goods
B.Increased intensity D.Limited risk
5.One reason why it is important for a sporting goods business to coordinate the distribution and promotion of a new tennis racquet is to make sure that the racquet is
A.available when customers want it.C.competitively priced.
B.designed to appeal to a target market.D.attractive to all customers.
6.Because the KMV Corporation makes its baseball bats available in all of the available outlets possible, the company is using the ______distribution strategy.
A.definitive C.exclusive
B.retentive D.intensive
7.A vending company buying high-energy sports drinks from several businesses and putting the drinks in vending machines for customers to buy is an example of a(n)
A.product wholesaler. C.independent agent.
B.distribution channel.D.service business.
8.When preparing complex written reports, what do sport/event business employees often include to make technical information easier to understand?
A.Illustrations C.Outlines
B.Summaries D.References
9.When participating in staff meetings, a gym's fitness trainers should be prepared to
A.join in the discussion. C.comment on every detail.
B.remain silent. D.argue.
10.In order to effectively communicate work assignments to employees, fitness-club supervisors should make sure that their instructions are
A.technical. C.lengthy.
B.accurate.D.complex.
11.What is a guideline that golf-course managers should follow in a staff meeting to obtain a variety of opinions?
A.Maintain total authorityC.Dominate the conversation
B.Encourage lengthy comments D.Involve all participants
12."How can I be sure your business will honor this guarantee?" is a question that best characterizes the ______customer.
A.silentC.suspicious
B.domineering/superior D.slow/methodical
13.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.PossessionC.Time
B.PlaceD.Form
14.The basic demand for a good or service is determined by its
A.appearance. C.usefulness.
B.technology. D.availability.
15.A socially responsible sporting goods business will attempt to give customers
A.high-quality products at high prices. C.the best products at competitive prices.
B.lower quality products at reduced prices. D.the best products no matter what the cost.
16.Larry's Pro Shop sold $583,000 in merchandise during the year. He paid out $259,000 for equipment, salaries, and utilities. His company had $100,000 left over after taxes. The company's ______was $224,000.
A.cost of merchandiseC.annual income
B.gross profit D.net profit
17.One way that inflation impacts sport organizations is by
A.decreasing free trade. C.increasing productivity.
B.increasing prices. D.decreasing labor costs.
18.Japan and the U.S. buy and sell each other's sporting goods and sportswear. This is an example of
A.exporting.C.international trade.
B.domestic trade. D.importing.
19.Why is it often considered unethical to gossip?
A.Information may be false C.May not be courteous
B.Takes time away from work D.Is critical of other people
20.An athletic director giving an employee sincere praise, compliments, and positive feedback is an example of providing
A.training. C.support.
B.rewards. D.recognition.
21.Fitness trainers will probably work well under laissez-faire management if they enjoy
A.close supervision. C.solving problems as a group.
B.sharing authority. D.making their own plans and decisions.
22.Which of the following has a significant impact on the culture of a sport organization:
A.Evaluation schedule C.Management style
B.Orientation method D.Application process
23.One way that financing benefits a sporting-good store's marketing effort is by providing additional funds that the store can spend on
A.office remodeling. C.expanded investments.
B.increased advertising.D.employee salaries.
24.Which of the following would a soccer stadium use in order to know how much money is available to hire more staff:
A.Accounting information C.Income statement
B.Profit-and-loss statement D.Journal
25.When preparing cash flow statements, sporting goods businesses include cash coming in as well as
A.payments. C.revenues.
B.sales. D.deposits.
26.Marginal revenue for a golf-equipment manufacturer is determined by
A.subtracting fixed and variable costs from total revenue.
B.calculating the change in total revenue.
C.dividing the change in total revenue by the marginal product.
D.multiplying marginal product by total variable costs.
27.Last year a sporting-goods business bought $386,500 worth of goods to sell to customers. This year it bought $420,750 worth of goods to sell. What amount should the sporting-goods business budget to spend next year if it expects a 14% increase in sales?
A.$483,112C.$481,328
B.$476,975 D.$479,655
28.All of the following are advantages of the Delphi technique of sales forecasting except that it can
A.be repeated until the forecast is complete.
B.prevent time-consuming discussions or arguments.
C.keep forceful individuals from dominating others.
D.gather opinions from those who won't speak out in groups.
29.A fitness-center employee's personnel record should contain all of the following except
A.date of birth. C.past work experience.
B.nationality. D.home address.
30.Complaints focusing on employee comfort, equipment, and safety could be categorized as complaints about
A.supervision/management.C.company policies.
B.coworkers. D.physical surroundings.
31.What does a business need in order to understand why an exercise bike that has been a strong seller for a long time is now losing popularity?
A.Secondary data C.Marketing information
B.Sales records D.Purchasing documents
32.An internal source of marketing information for a sport/event business would be
A.inventory records.C.public libraries.
B.government planning agencies.D.trade journals.
33.The first step in assessing a sport organization's marketing-information needs is to
A.acquire secondary data. C.conduct a competitive analysis.
B.develop research guidelines. D.state the problem at hand.
34.An exercise gym that conducts research and finds that most of its customers visit the gym four times a week has identified the
A.mean. C.mode.
B.median. D.range.
35.Which of the following is usually the most important part of a marketing report that should be addressed in an oral presentation:
A.Research methods C.Limitations
B.Findings D.Interview forms
36.Which of the following is a factor that sports and entertainment marketers consider when targeting customers for a specific event:
A.Personalities C.Expectations
B.DemographicsD.Affiliations
37.Which of the following factors should event marketers consider when identifying target markets for specific events:
A.CharacterC.Attitude
B.Behavior D.Culture
38.After the bad publicity during the hockey strike, team owners felt a lot needed to be done to improve the image of the American Hockey League. The team owners will be marketing
A.the organization. C.the services.
B.durable goods. D.original ideas.
39.What benefit does a major sporting event or popular sports attraction provide to a city?
A.Economic C.Political
B.Cultural D.Athletic
40.The element of marketing that requires sport marketers to determine the amount of money that they will ask in exchange for their products is
A.promotion. C.place.
B.price.D.product.
41.The Corner, a local downhill ski retailer, is considering expanding its line of goods to other sports equipment. What form of segmentation should the retailer use when surveying local residents?
A.TopographicC.Demographic
B.Geographic D.Psychographic
42.Which of the following statements is true regarding niche marketing:
A.Market segments are subgroups of niche markets.
B.Niche markets are small and may attract a few competitors.
C.Niche marketers do not often customize their offerings.
D.Marketers tend to consider broad focus to meet the needs of the niche.
43.Which of the following is a component of a situational analysis:
A.Comparison shoppingC.Test marketing
B.Product positioning D.Environmental scanning
44.One reason it is important for sport equipment manufacturers to consider market potential when conducting a market analysis is because market potential indicates the
A.total possible demand for a product. C.number of consumers in an area.
B.expected annual sales volume. D.competitors selling the same item.
45.Which of the following is an opportunity that sport/event businesses might identify as a result of assessing global trends:
A.Continuing language barrier C.Expanding regulatory system
B.Increasing political unrest D.Growing world population
46.Which of the following is a characteristic of all effective marketing goals:
A.Controversial C.Impractical
B.Qualitative D.Specific
47.A sporting goods store currently has 1,750 customers and develops a marketing plan to increase that number by 4% this year and 5% next year. If the plan is successful, how many customers will the store have by the end of next year?
A.1,911C.1,900
B.1,907 D.1,925
48.When a sport-equipment manufacturer evaluates the performance of its marketing plan, it must
A.determine market trends. C.develop an operating budget.
B.identify its competitors. D.know its marketing objectives.
49.The ultimate goal of a marketing audit is to improve a bowling alley's marketing
A.performance.C.mix.
B.information. D.research.
50.Which of the following is a business trend that might affect a local exercise equipment store:
A.Domestic transportation C.Social behavior
B.Global competitionD.Physical environment
51.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.
52.An accident report form used by a fitness center would include information about the
A.accident history of the employee.C.medical costs incurred.
B.frequency of this type of accident. D.location of the accident.
53.Which of the following is an efficient method of producing a large quantity of a small number of sporting-good products:
A.Continuous processing C.Job-shop processing
B.Mass productionD.Project manufacturing
54.In which of the following situations are employees helping a sportswear business to save money and control expenses:
A.Giving customers less than correct changeC.Accepting returns after the 30-day limit
B.Overpricing popular items by 10% D.Negotiating 5% discounts with vendors
55.In order to maintain supplies at the appropriate level to meet needs, sporting-goods retailers need to know the
A.reorder point. C.prime rate.
B.final cost. D.contract price.
56.When is it more efficient for a health spa to replace a piece of exercise equipment than to repair it?
A.Length of downtime is shorter for repair.C.Repair parts are easy to obtain.
B.Cost of replacement is less than repair.D.Maintenance staff is qualified to make repairs.
57.An example of effective time management on the job is
A.taking work home at the end of the day. C.scheduling work to fill every minute.
B.making a to-do list for the next day.D.asking for help when you feel pressured.
58.Why do sport/event marketers send representatives to trade shows?
A.To meet new vendorsC.To visit associates
B.To identify competitors D.To contact employees
59.Which of the following marketing activities usually involves managing the web site for a sport organization:
A.Media relations C.Promotions
B.Market research and development D.Advertising
60.When a large supply of basketballs is available for sale, the price of the basketballs will often
A.decrease. C.stabilize.
B.increase. D.remain the same.
61.The senior class has decided to sell popcorn at the football games to raise money for the prom. The popcorn popping machine will cost $45 to rent for each game. Corn costs $10 for 10 pounds, including 100 bags and seasoning for the popped corn. The bags of popped corn will sell for $1.00 a bag. What is the break-even point in dollars?
A.$100 C.$50
B.$45 D.$145
62.Five years after a new sport product has been introduced, sales begin to level off because customers are purchasing the competitor's brand. What strategy would be most appropriate to use in this situation?
A.Take the sport product off the market
B.Do nothing; fluctuations in sales are common
C.Modify the sport product to renew customer interest
D.Triple the advertising budget for the sport product
63.One way that a sport/event business is often able to recognize product opportunities in the marketplace is by monitoring
A.finances. C.trends.
B.personnel. D.plans.
64.What type of standards are common in the sport/event industry?
A.UtilityC.Quantity
B.Capacity D.Activity
65.A sporting goods and equipment store that tells customers it will refund their money if they are not completely satisfied with any item they buy is providing a(n)
A.rebate.C.guarantee.
B.warranty. D.explanation.
66.One of the responsibilities of the Consumer Product Safety Commission is to
A.safeguard the food supply.C.require producers to test their sport products.
B.regulate sport product advertising. D.make sure cosmetics are safe.
67.A product-mix strategy in which a sporting-goods business enlarges its product mix by adding additional product items or product lines is
A.contraction. C.alteration.
B.expansion. D.trading-up.
68.An NHL team offers a "fan" package that includes four tickets to a hockey game, food from the concession stand, and a signed photo of the team goalie. This is an example of
A.target advertising.C.individual selling.
B.price positioning. D.product bundling.
69.A fitness-equipment store is extending its operating hours to accommodate its customers. Which of the following is a business cost associated with this service:
A.Increased sales volume C.Higher profit margins
B.Higher payroll expenses D.Increased customer satisfaction
70.An exercise equipment company positions a product or brand to avoid direct competition when the
A.product performance characteristics are equal to those of competitors.
B.price and quality are higher than the competition.
C.price of the product is lower.
D.brand has unique characteristics that are important to some buyers.
71.Why do brand owners need to evaluate their brand strategies from time to time?
A.To determine whether the strategies are working well
B.To prevent the need to make changes in the brand
C.To meet the budgetary requirements of the business
D.To meet the goals of the competition
72.Which of the following is the biggest risk for licensees:
A.The location of the team C.The type of sport
B.The nature of the licensing agreement D.The nature of sports fans
73.Which of the following is an advantage of agency management:
A.Contacts in the wholesale and retail industries C.Higher profits than internal management
B.Greater control for the licensor D.No commission fees
74.Which of the following is an example of a celebrity endorsing an event simply by being associated with it:
A.Cheering for a football teamC.Appearing in a print ad
B.Saying a tournament is great D.Attending a grand opening
75.A stadium designed with more female rest rooms than male rest rooms is responding to which of the following customer expectations:
A.Dedicated usage C.Adequate facilities
B.Aesthetics D.Sense of safety
76.What should a marketer consider when selecting a venue for a sporting event?
A.Drawing radiusC.Ticket system
B.Pricing strategy D.Gate attraction
77.An ad featuring a fitness club's support of the Boy Scouts is an example of ______advertising.
A.promotional C.free
B.institutionalD.costly
78.When the manager of a large sporting goods company takes potential customers out for lavish dinners and buys them expensive gifts, it might appear as if the manager is engaging in the unethical practice of
A.puffery. C.slander.
B.bribery. D.fraud.
79.Which of the following is a misleading advertising practice that is often regulated:
A.Puffery C.Publicity
B.Sampling D.Slotting
80.To attract teenagers to the opening of a new skating rink, which form of promotional media would probably be most effective?
A.RadioC.Magazine
B.Local newspaper D.Outdoor
81.Why do some professional sport teams use a lot of white space in their advertisements?
A.To emphasize other components C.To shorten the length of headlines
B.To reduce printing expenses D.To follow industry standards
82.Making sure that sufficient quantities of the advertised sporting goods are in stock is an important step in
A.planning distribution techniques. C.coordinating promotional activities.
B.establishing sales objectives. D.calculating discount prices.
83.Golf courses often use the information contained in past advertising records as the basis for
A.designing displays. C.planning future promotions.
B.hiring additional employees. D.organizing employee events.
84.When beginning to develop a promotional plan, it is important for a fitness center to
A.define its promotional goals. C.become an active networker.
B.decide on its promotional strategy. D.compile a list of activities.
85.Wheelz wants to market its product line of in-line skates to young males under the age of 35. Which of the following sponsorship opportunities would best attract the exposure the company seeks on a very limited budget:
A.Extreme-sporting eventC.Pro-football game
B.Olympic opening ceremony D.Affinity-sporting event
86. 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.new C.substitute
B.related D.higher priced
87.Why is sport sponsorship one of the fastest growing promotional activities today?
A.There is no risk involved with sport sponsorship.
B.Fans are not willing to patronize a sponsoring company.
C.People are receptive to companies that sponsor their teams/events.
D.Many sport teams would not be able to survive without sponsorship.
88.What is the advantage to a business of placing signage on the outfield stadium wall during a televised professional baseball game?
A.Increases brand awareness C.Provides free publicity
B.Lowers promotional expenses D.Ensures higher sales