Which of the following is the best example of indirect competition to an 18-hole daily fee facility?

Which of the following is the best example of indirect competition to an 18-hole daily fee facility?

• A. Off course retailer
• B. Local driving range
• C. Online course reservation service
• D. Tournament sponsor

Answer: (A)

Indirect competition happens when a business competes for the same leisure dollars but doesn’t offer the exact same product. An off-course retailer fits this well for an 18-hole daily-fee facility because it sells golf gear and apparel that fulfill a golf interest without providing a round of golf. Customers might choose to spend money on equipment, accessories, or apparel instead of paying to play a round, so it competes for the same discretionary budget but in a different form. A local driving range is a more direct substitute for the full round since it still delivers golf experience and practice, just at a different format and price. An online course reservation service influences access to playing, tying it more closely to the act of playing itself rather than the spending on non-play golf goods. A tournament sponsor isn’t a competitor for consumer dollars in this context; it’s a partner or sponsor rather than a substitute for the golf experience.

Indirect competition happens when a business competes for the same leisure dollars but doesn’t offer the exact same product. An off-course retailer fits this well for an 18-hole daily-fee facility because it sells golf gear and apparel that fulfill a golf interest without providing a round of golf. Customers might choose to spend money on equipment, accessories, or apparel instead of paying to play a round, so it competes for the same discretionary budget but in a different form.

A local driving range is a more direct substitute for the full round since it still delivers golf experience and practice, just at a different format and price. An online course reservation service influences access to playing, tying it more closely to the act of playing itself rather than the spending on non-play golf goods. A tournament sponsor isn’t a competitor for consumer dollars in this context; it’s a partner or sponsor rather than a substitute for the golf experience.