Deck 5: Sport and Pricing Strategies

Question 1

Think of a sports organisation. What are some ways they go about maximising shareholder value?

Answer 1

Explain more than one of the following ways of maximising shareholder value:
A. maximising profit;
B. maximising sales growth;
C. maximising revenue. Provide a relevant example.

Question 2

Describe some social responsibility constraints that an organisation may face in relation to pricing behaviour. Provide an example.

Answer 2

Describe social responsibility constraints (e.g., accessibility) and provide a relevant example.

Question 3

Explain the place of price in relation to other elements of the traditional marketing mix.

Answer 3

Provide an explanation of:
1. product mix: the number/range of products available at varying price points;
2. place dependence: the location and quality of service production that will allow for differential pricing;
3. promotion mix: how price can play a central role in communication with the target markets, in regard to their ability to pay, and in regard to the perceived value that is communicated by price setting.

Question 4

How does time dependence make sport suitable for price discrimination? Provide an example.

Question 5

A cost-volume-profit analysis (or break-even analysis) examines the interaction of factors influencing profit levels. Which of the following is NOT a factor that should be considered?

A) Unit variable cost
B) Sales mix
C) Volume of sales
D) Unsold volume
E) Selling prices

Question 6

Time since price change is a determining factor for elasticity of demand.

Question 7

Which of the following equations for calculating the break-even point is correct?

A) Break-even point =
Total fixed costs
$\overline { \text { Unit price - Unit variable cost } }$
B) Break-even point =
$\frac{Unit ~price~ - ~Unit~ variable ~cost}{Total ~fixed~ costs}$

Question 8

If an organisation wishes to be the most innovative in the business, which derived pricing goal would they employ?

A) Maximising sales growth
B) Maximising Profit
C) Market skimming
D) Premium price
E) Partial cost recovery

Question 9

A person's intangible perception of a product constitutes a non-price factor.