1.

Draw the PLC (Product Life Cycle) diagram

2. What is the Commercial Recreation?

Commercial Recreation is the provision of leisure experiences with the intent of making a
profit.
3. Which factors need to be considered for starting commercial recreation business?
- a sound concept
- a good location
- adequate financing
- experienced management
4. What are the indicators of the introduction stage of the PLC (Product Life
Cycle)?

- a. Road - Skimming strategy

b. Slow - Skimming strategy

c. Rapid - Penetration strategy

d. Slow - Penetration strategy

5. What are the indicators of each stages of the PLC (Product Life Cycle)?
  Introduction Stage
 Growth Stage
 Maturity Stage
 Decline Stage
6. What are the benefit of the PLC in starting our own commercial recreation
business?

- Easier access to capital

 Limited liability
 Growth potential
 Enhanced credibility
 Tax benefit
 Exist strategy
 Attracting top talent

7. What are the advantages and disadvantages of the commercial recreatio in

starting your own business?
ADVANTAGES:
- Personal satisfaction
- Independence
- Profits
- Power and influence
- making better use of your personal assets.
- Application of skills and background
- Security
DISADVANTAGES:
- Financial losses
- Loss of friends and family
- Frustration
- time and effort
- Compromising
- Growth dilemmas
8. When do we need the feasibility study?

- The project may be a new product/ service at an existing location.

- A move to a new location.
- The recreation of a new business
- As road maps to help guide this effort
9. What are the uncontrollable factors in marketing environment analysis for
feasibility study?
Competitors, The economy, laws, the society, culture, government, technology,
population
10. How can we know the population charateristics?

11. What are six steps of potential analysis for the feasibility study?

Step 1: Decide research question

Step 2: Collect and analyze secondary information

Step 3: Design primary research, data collection method, and focus

Step 4: Design sample and collect primary information

Step 5: Analyze and inter primary information

Step 6: Draw conclusions and make recommendations.

12. What are the 10 analysis for the feasibility?

• 1. environmental analysis
• 2. market potential analysis
• 3. primary competitor analysis
• 4. location and community analysis
• 5. Service analysis
• 6. Marketing position and plan analysis
• 7. Pricing analysis
• 8. Income and Expense analysis
• 9. Development Cost analysis
• 10. Analysis of return on investment and economic feasibility
13. What are the Franchising merits?
14. What is the leisure paradox?
15. Why the age group such as 55-64 years-old people is significant for commercial
recreation business?
16. What is the theory of the zero sum?

→ One person’s gain is equivalent (tương đương) to another loss, so the net change in wealth
or benefit is zero.

17. What is the income effect?

→ The more disposable income, the more demand leisure.

18. What are the 5 presuppositions for building Economic Theory?

19. What are the factor affecting price elasticity of demand in commercial recreation
business?
1. Necessity of good or service
2. Number of substitutes
3. Addictiveness
4. Price and usefulness
5. Time period
6. Consumer awareness
Question 16. Early travel was primarily for war or business purposes than leisure

Question 17. ……………Elasticity ……………. is the ratio of the percentage change in

quantity of a product or service demanded in response to a change in price.

Question 18. ……………Inelastic demand ……………. means that change in price

leads to a smaller percentage change in demand.

Question 19. …………Perfectly elastic demand………………. means that there is

significant change in demand with no change in price.

Question 20. …………Cross price elasticity ………………. means that with change in
quantity demand of a product, there is a corresponding change in price of another
product. That is, the price of a substitute product is affected.

Question 21. …………Disposable income ………………. is defined as the gross income

received from all sources minus direct deductions for taxes.

Question 22. The leisure/recreation product is largely considered a ………luxury

……..product.

Question 23. The Definition of ……need ……… is disparity between a present and
desired physiological or psychological state.

Question 24. ………Feasibility study ………. is needed when the project may be a new
product/service at an existing location and a move to a new location, or the creation of a
new business.

Question 25. One person's gain is equivalent to another's loss, so the net change in

wealth or benefit is zero. This is called …………theory of the zero - sum ……………

Question 16. By 1845, …………Thomas Cook …………became the first modern travel
agent and his business extended to Switzerland, the Nile, the Holy Lands, Mount Everest,
India, Norway, and Yellowstone Park.
Question 17. …………Equilibrium …………. is the price at which the market demands
precisely the same quantity that the producer is willing to supply. That is, the point where
demand meets supply.

Question 18. Elasticity means how ………sensitive …………. demand is in response to

change in price.

Question 19. …………Relatively demand ………… means that when a change in price
produces a proportionally greater change in demand.

Question 20. …………Perfectly inelastic demand …………means that with change in

price, there is no change in demand. That is, quantity demanded is the same.

Question 21.………Opportunity cost …………… is the forgone benefit that would have
been derived by an option not chosen.

Question 22. Markets for "non-essential" or easily "deferred" purchases tend to be

more…………price sensitive …………than those markets consumers consider to be
essential or necessary.

Question 23. Work is an …………opportunity cost …………cost to leisure

Question 24. …………a feasibility study ………… provides a comprehensive analysis

to determine if a specific project has potential for reaching its financial goals.

Question 25. In terms of the PLC (Product Life Cycle), what is the marketing strategy in
the initial stage? Introduction