Revenue Strategies HFT 3463 Review Exam 2023 with all
the correct answers
This age group spends the least time participating in leisure activities according to the
American Time Use Study (2018).
25-44 year olds
As supply of a product increases, demand for the product goes up.
False
When we say that demand for a service is elastic, we are saying that it is sensitive to
other factors, such as price.
True
Demand is considered inelastic when increasing the product price also increases the
revenue produced. When this happens, the elasticity equation equals
<1
According to the Backward-Bending Labor-Supply Curve, people begin to work less and
enjoy more leisure time when their salaries move from W2 to W3. This is because
The income effect is greater than the substitution effect
This pricing strategy means that items are sold for what they cost to produce.
Break even pricing
As a price leader in Orlando, Walt Disney World sets their prices to match what other
attractions are doing.
False
In a plan for Segmentation, Targeting, and Positioning of an entertainment venture,
targeting refers to
Selecting the most efficient market segments
Which of the following is NOT one of the five phases of strategic entertainment
management planning?
Implementation
Use the formula Total Revenue Produced / $ Spent on Marketing * 100 = ROAS % to
assist you with the following question.
In an advertising campaign for a music festival, promoters spent $10,000 on advertising.
The festival brought in $50,000 in revenue. What is the ROAS?
500%
The ROAS percentage in the previous answer means that for every $1 spent on
advertising, we made more back in revenue. This is considered a good return on our
advertising spend.
True
Match the Pricing Strategy term to the best description of that strategy. There is only
one match for each item. There may be descriptions left over.
For Profit: Tickets or services are sold in order to generate profit (revenue > cost)
Loss-Leader: Tickets or services are sold at a lower price to stimulate sales
, Break-Even: Tickets or service are sold at "cost" simply to recoup what was spent to
produce
The original sunk costs of producing a movie on DVD are very low, but the price to
purchase a DVD of a popular movie title may be quite expensive. This is an example of
what type of pricing strategy?
Value-Based Pricing
Audience characteristics for advertising may be based on attitudes, opinions, and
preferences. These are measures of audience demographic characteristics.
False
Considering Segmentation, Targeting, and Positioning (STP) of an entertainment
product or service, match each term to the description that best fits that term.
Segmentation: Selecting the most meaningful groups of people
Targeting: Selecting the most efficient market
Positioning: Creating an image which should lead to a brand
Average Persons = Population * (Rating / 100)
Gross Rating Points (GRPs) = Rating * number of Spots
Media Cost = Spots * Cost per spot
Impressions = Average Persons * number of Spots
Cost Per Thousand Impressions (CPM) = Media Cost / (Impressions / 1,000)
You are planning to advertise your music festival in the home of the Rock n' Roll Hall of
Fame, Cleveland, Ohio! You are going to purchase 10 spots at $600 per spot. Based on
Cleveland's population of 385,525 and a Nielsen Rating of 1.6 for the station on which
you plan to advertise, what is the CPM (cost per thousand impressions)?
Hint: You will need to find the CPM by calculating at least some of the other values to
use in the formula.
$97.27
To get Tax Exempt Status, or be classified as 501(c), an organization must file for an
exemption. Which of the following is an IRS requirement for this status?
Must further a specific scientific, educational or religious purpose.
Match the Fundraising step to the best description.
Assessment - Identify potential donors
Cultivation - Establish relationships
Solicitation - The "ask"
Stewardship - Thank your donors
Grant writing can be difficult for new organizations because
The application process can be difficult
Individual donors are immensely important to your fundraising efforts since these
donors are the consumers of your services.
True
the correct answers
This age group spends the least time participating in leisure activities according to the
American Time Use Study (2018).
25-44 year olds
As supply of a product increases, demand for the product goes up.
False
When we say that demand for a service is elastic, we are saying that it is sensitive to
other factors, such as price.
True
Demand is considered inelastic when increasing the product price also increases the
revenue produced. When this happens, the elasticity equation equals
<1
According to the Backward-Bending Labor-Supply Curve, people begin to work less and
enjoy more leisure time when their salaries move from W2 to W3. This is because
The income effect is greater than the substitution effect
This pricing strategy means that items are sold for what they cost to produce.
Break even pricing
As a price leader in Orlando, Walt Disney World sets their prices to match what other
attractions are doing.
False
In a plan for Segmentation, Targeting, and Positioning of an entertainment venture,
targeting refers to
Selecting the most efficient market segments
Which of the following is NOT one of the five phases of strategic entertainment
management planning?
Implementation
Use the formula Total Revenue Produced / $ Spent on Marketing * 100 = ROAS % to
assist you with the following question.
In an advertising campaign for a music festival, promoters spent $10,000 on advertising.
The festival brought in $50,000 in revenue. What is the ROAS?
500%
The ROAS percentage in the previous answer means that for every $1 spent on
advertising, we made more back in revenue. This is considered a good return on our
advertising spend.
True
Match the Pricing Strategy term to the best description of that strategy. There is only
one match for each item. There may be descriptions left over.
For Profit: Tickets or services are sold in order to generate profit (revenue > cost)
Loss-Leader: Tickets or services are sold at a lower price to stimulate sales
, Break-Even: Tickets or service are sold at "cost" simply to recoup what was spent to
produce
The original sunk costs of producing a movie on DVD are very low, but the price to
purchase a DVD of a popular movie title may be quite expensive. This is an example of
what type of pricing strategy?
Value-Based Pricing
Audience characteristics for advertising may be based on attitudes, opinions, and
preferences. These are measures of audience demographic characteristics.
False
Considering Segmentation, Targeting, and Positioning (STP) of an entertainment
product or service, match each term to the description that best fits that term.
Segmentation: Selecting the most meaningful groups of people
Targeting: Selecting the most efficient market
Positioning: Creating an image which should lead to a brand
Average Persons = Population * (Rating / 100)
Gross Rating Points (GRPs) = Rating * number of Spots
Media Cost = Spots * Cost per spot
Impressions = Average Persons * number of Spots
Cost Per Thousand Impressions (CPM) = Media Cost / (Impressions / 1,000)
You are planning to advertise your music festival in the home of the Rock n' Roll Hall of
Fame, Cleveland, Ohio! You are going to purchase 10 spots at $600 per spot. Based on
Cleveland's population of 385,525 and a Nielsen Rating of 1.6 for the station on which
you plan to advertise, what is the CPM (cost per thousand impressions)?
Hint: You will need to find the CPM by calculating at least some of the other values to
use in the formula.
$97.27
To get Tax Exempt Status, or be classified as 501(c), an organization must file for an
exemption. Which of the following is an IRS requirement for this status?
Must further a specific scientific, educational or religious purpose.
Match the Fundraising step to the best description.
Assessment - Identify potential donors
Cultivation - Establish relationships
Solicitation - The "ask"
Stewardship - Thank your donors
Grant writing can be difficult for new organizations because
The application process can be difficult
Individual donors are immensely important to your fundraising efforts since these
donors are the consumers of your services.
True
