Principles of Sports Business
Which of the following is NOT an example of a method of promotion
Press Release
Each of the following is an example of the 'third place' experience in sports except:
Private box seats
The sports marketing mix is the coordinated set of efforts that sports marketers use to meet their marketing objectives and meet consumer needs and consists of which of the following elements?
Product, price, promotion and place
Profit maximizing sports franchises are routinely criticized by fans because of all of the following except:
Professional franchises are expected to return large profits to shareholders
Each of the following is a commonly cited reason that cities build stadiums of their professional sports teams, except:
Professional sports have proven to be the best way to increase revenue and population in cities across the country
All of the following are reasons that cities choose to host the Olympics except
Raise a City/Country's Profile Long Term Investment Job Creation Enthusiasm Correct Answer: All of the above are reasons cities choose to host
Which of the following is NOT one of our accepted definitions of what a sports organization is
A group of unaffiliated people working toward randomly assigned objectives
When describing the segmentation of the sports industry, which of the following characteristics of a Major League Baseball team refers to a supported economic activity?
A local sports bar near the stadium
Which of the following best describe a service provided by the sports industry?
A perishable, intangible, occurrence, process, or experience performed for a customer
Which of the following is a characteristic of goods produced by the sports industry?
A physical object that is produced at one time and used later
Leagues are key to establishing the economics of American professional sports because they do each of the following except:
Allow for free entry and exit into the league
Which of the following is false about licensing in sports?
An organization's brand image is rarely impacted by the actions of licensees
ESPN's Stephen A. Smith is a good example of what kind of media member?
Announcer/Media Personality
Three primary reasons why leagues and teams have been so successful at pushing government into massive subsidies to fund new stadium construction are
Artificial scarcity of teams, restriction of teams in large markets, inadequacy of current league revenue sharing
Athletes are engaging with the internet in more ways than ever before. The relationship between athletes and Web 2.0 is characterized by all of the following trends except:
Creation of a limited influence effect
Virtually every organization and manager has a _______________ to their employees that ensures that they do not put their employees in harm's way
Duty of care
Which of the following cases is NOT an example of a legal case involving student-athletes and the NCAA or its member institutions
Electronic Arts (EA) v. NCAA
SI.com, Deadspin.com, Instagram and ESPN3 are all examples of what type of media?
Electronic media
Which of the following leagues is characteristic of an open league?
English Premier League Football (EPL)
The sports industry is a broad field that's concerned with various forms of products and services associated with physical activity production. Which of the following is included in the sports industry?
Intercollegiate atheltics Professional sports Fitness and sports clubs Fitness management Correct Answer:All of the above
Which of the following is not one of the aspects of public relations utilized in sports promotion efforts?
Internal memorandums
Which of the following is a characteristic of advertising?
It is a controlled medium
Which of the following is true of Marketing Through Sports
It tries to leverage borrowed equity of athletes
Which of the following is NOT an example of corporate welfare in professional sports?
Jerry Jones raises investment money to fund the building of a $250 million practice facility for the Dallas Cowboys
Which of the following is NOT a reason people resist change?
Lack of interest
All of the following elements are part of the sport promotional mix except:
Licensing Sponsorship Advertising Public relations Correct Answer: All of the above are part of the sport promotional mix
Which of the following is one of the benefits a sports organization can expect to gain by implementing a marketing information system
Market segmentation information
Which of the following is NOT a model that a sports manager would use to identify potential strategic advantages in the marketplace
Maslow's theory model
Which of the following is true about media content and sports
Media representations of sports are carefully edited to highlight dramatic action
Web 1.0 and Fan interaction 1.0 were characterized by which type of discussion type?
Monologue
Which of the following legal actions, an example of tort law, is the most common form of lawsuit that coaches and business leaders is likely to face?
Negligence
Which of the following is a characteristic of Players' unions in American Sports?
Once players unionize, collective bargaining must occur before league management can change hours, wages, or terms and conditions of employment
Zappos, the online shoe retailer, promotes a work environment that allows employees to display knick-knacks in their offices and have fun at their jobs. Zappos is, therefore, has a unique
Organizational culture
Surface level diversity is typically the kind of diversity pursued by organizations for each of the following reasons EXCEPT:
People often categorize others using simple categories Superficial diversity does not require much time to establish Superficial diversity is often the 'face' of an organization's diversity, such as visible racial differences Correct Answer: All of these are ideas of superficial diversity
Which of the following is NOT an element of a strong data management system for sports analytics?
Predictive analytics
When the NFL requires its athletes to wear helmets, shoulder pads, and other equipment to prevent injuries, and a player still gets injured, the league would say that it should not be held liable because it took _______________ care to protect its players.
Reasonable
Hiring the right people in a sports organization can do all of the following EXCEPT
Save the organization money Save the organization time Give the organization a strategic advantage by doing things more efficiently or differently Correct Answer: It can achieve all of the above
A promotional strategy is similar to a marketing strategy, but the promotional strategy seeks ___________, both direct and indirect.
Short term objectives
Which of the following is NOT a characteristic of a good job analysis?
Short, brief, vague descriptions of the job
Which of the following is an explicit goal of a sports analytics program?
Should provide decision makers with novel insights
All of the following are characteristics of promotion and relegation league systems except:
Small town teams have no chance to raise to the level of the highest clubs
When a sports organization hires a new staff member, that staffer should go through a period of __________ to help them learn all of the nuances of the organization.
Socialization
Which of the following is most likely to be included in a sponsorship agreement
Some or all of the above will be included in a sponsorship agreement
ESPN's use of all-day sports talk shows, like Mike and Mike and Sportscenter, to create and then discuss sports news is an example of what media phenomenon
Spin Cycle
A social entity involved in the sport industry that is goal directed with a consciously structured activity system and a relatively identifiable boundary best describes what?
Sports organization
Proponents of public financing of stadium and arena construction often make the argument that the facilities will be literally "self-financing". Which of the following is NOT one of their arguments?
Stadium construction will generate thousands of jobs New stadiums will increase tourism New stadiums provide better experiences for fans attending games New stadiums offer the possibility to attract 'jewel events' like all star games and concert Correct Answer: All of the above are arguments that proponents of stadium construction use
When people spend money to go to a sporting event, they cannot just pull that money out of thin air. Rather, they make fewer trips to other entertainment activities locally. This is referred to as
Substitute spending
The origins of professional sports in America can be traced back to which of the following key events?
The Cincinnati Red Stockings barnstorming baseball team, founded in 1869
All of the following are unique features of the sports industry except:
The ease of ensuring constant quality
In relation to sports business, the term "Moneyball" refers best to which of the following concepts
The use of statistics to discover and exploit the inefficiencies in the valuation of individual players
According to our class discussions and readings, in the near future which of the following demographic shifts is likely to impact the United States?
They will all impact diversity hiring
Professional teams generate total revenue from which of the following five principal sources
Ticket sales, broadcast rights, licensing, venue revenue, transfers
A basic example of exchange theory is one in which corporations provide money, products or services to sports organizations in return for the benefits of the association with the sports organizations.
True
A marketing opportunity is a chance for a sport company to capitalize on something that will most likely be positive for the company
True
A strong sports analytics program will save the decision maker time by making all of the relevant information for evaluating players or team or prospects efficiently available.
True
In the world of Web 2.0, many sports fans have become prosumers. A prosumer is a person who both consumes and produces a sports product.
True
Issues involving student-athlete rights, amateurism, and the anti-trust-like behavior of the National Collegiate Athletic Association (NCAA) are as old as college sports themselves, but have become more notable in recent years.
True
Mark McCormack is frequently credited as the originator of Sports Marketing because he signed Arnold Palmer to an exclusive representation deal in 1960.
True
One of the challenges for cities that host the Olympics is that after the Olympics are over the cities must find uses for the facilities that were constructed for sport-specific purposes
True
Sports marketing is the process of designing and implementing activities for the production, pricing, promotion, and distribution of a sport or sport business product to satisfy the needs or desires of consumers and to achieve the company's objectives
True
The annual English relegation battle often generates more revenue for the teams at the bottom than the ones at the top as the English Premier League season concludes.
True
The purpose of a sport promotional strategy is to build brand loyalty and product credibility, develop image, and position the brand
True
Tourism is the world's number one industry.
True
Based on our discussions in class, which of the following recent Olympic host cities can claim to be a "success story" from a business and public taxation perspective?
Turin, Italy
Which of the following attributes of a sports organization contributes to the financial GAPS between large market and small market franchises? (remember not all revenue is shared between franchises)
Venue revenue
The biggest difference between Web 1.0 and Web 2.0 in regards to fan interaction is what
Web 2.0 offers a richer environment for fans to engage with the teams they love
In economic terms, the formula for calculating profits can best be written as
π = TR - TC
Thereby causing harm for which the plaintiff seeks compensation' is the third condition of negligence and is referred to as
Causation
Which of the following would be considered a STRENGTH in an organization using a SWOT analysis
Company culture
Which of the following consumer attributes is a marketer NOT interested in knowing about when marketing decisions
Competition
Which of the following is an example of deep level diversity?
Beliefs
If a sports organization has a responsibility to keep its employees safe, and does not follow its own safety regulations, it has violated what?
Breach of duty
As one of the key elements of the sport promotional mix, public relations is mostly a mix of all of the following aspects except
Broadcast media
ESPN, FoxSports, and CBS Sports are all examples of what type of media?
Broadcast media
If a football player in Texas practices outdoors during the Summer, and his coach doesn't provide enough water, that student could say that he would not have faced dehydration __________ the lack of water provided by the coach
But for
The following three basic components make up the core of sports analytics
Data management, predictive models, information systems
Which of the following is an example of one of the internal pressures that is likely to drive change in sports in the near future?
Decline in sport membership
Sponsorship agreements may include, but are not limited to, which of the following rights and benefits?
Exclusive association with the event or facility Exclusive association within a product or service category Use of the sport organization or event logo, name, or trademark Exclusive use of the product Correct Answer: All of the above
A monopsony is a market structure with a single seller
False
A monopsony league uses its market power to drive up the price it pays suppliers (teams)
False
Analytic-based marketing systems are frequently referred to as marketing machines
False
Analytics can best be described as "moneyball"
False
If college sports decided to move to an open league structure, top tier teams wouldn't have to worry about losing their positions in the largest athletic conferences
False
In an effort to gain back many of its customers, ESPN doubled down on traditional television media and offering more of the 'big 4' sports leagues
False
It is commonly believed that taxes associated with sporting events are always advantageous to an economy because they are new revenues and increase the bottom line for city funds
False
Public stadium funding has its origins in the 1940s during the Second World War when baseball had to contract due to soldiers going away and men's baseball being replaced by the Women's Professional Baseball League (WPBL)
False
Publicity focuses on the use of paid, personal promotion of a sport product or service through a direct party that publishes print media or presents information through radio, television, or the internet
False
The instrumentality of a sports organization refers to its specific set of goals and activities and how the organization plans to achieve the goals.
False
With regard to the concept of reach and frequency in sport promotion, frequency refers to the identification of potential consumers.
False
When fans are able to interact directly with news organizations and sports figures through social media or broadcast media, this is an example of what?
Fan interaction 2.0
Each of the following is an element of the Uses and Gratifications theory except
Fantasy
In the 1980s, Rotisserie Baseball was a game that allowed individuals to pretend to be general managers of their own baseball teams. Players of this game formed leagues and created rules of play. This ultimately led to the development of
Fantasy sports
Which of the following is an example of an input that can collect data, stored in a data management system, to be measured by sports managers to help make data-informed decisions?
Fitbit watches SportVu Video Systems Nap rooms Correct Answer: All of the above
Which of the following is NOT characteristic of the franchise system in professional sports?
Franchisees license know-how, procedures, intellectual property, use of a business model, brand, and rights to sell a branded product and service to a franchisor
Which of the following is an example of quantitative data used in sports analytics systems?
Game statistics
Which of the following is NOT a source of data that needs to be managed within a data management system
Game video Scouting reports Game statistics Ticket sales Correct Answer: All of the above need to be managed
All of the following are characteristics of win-maximizing sports franchises except:
Win maximizers typically make higher profits than profit maximizing franchises
Strategic decision making in sports at all levels of the organization is really trying to just gain a ______________ over the competition by using ____________ .
competitive advantage; differentiation or adding value
Production technology is rapidly evolving and the impact on the sports media landscape is enormous. Which of the following changes in production technology was discussed as having a large impact on the future of how sports are delivered to consumers?
online retailing social media live streaming computerized judging (e.g. goal line technology and instant replay) Correct Answer: All of the above
Which of the following is not one of the five forces discussed by Porter?
seller power
