Reference no: EM131275860

Extreme Exposure Rock Climbing Center Faces The Krag

For the past five years, Extreme Exposure Rock Climbing Center has enjoyed a monopoly. Located in Sacramento, California, Extreme Exposure was the dream of Kyle Anderson, who has been into freestyle extreme sports of various types, including outdoor rock climbing, hang gliding, skydiving, mountain biking, and snowboarding. Now in his mid-30s, Kyle came to realize in the year of his 30th birthday that after three leg fractures, two broken arms, and numerous dislocations, he could no longer participate regularly on the extreme edge.

So, he found an abandoned warehouse, recruited two investors and a friendly banker, and opened up Extreme Exposure. Kyle's rock-climbing center has over 6,500 square feet of simulated rock walls to climb, with about 100 different routes up to a maximum of 50 vertical feet. Extreme Exposure's design permits the four major climbing types: toproping, where the climber climbs up with a rope anchored at the top; lead-climbing, where the climber tows the rope that he or she fixes to clips in the wall while ascending; bouldering, where the climber has no rope but stays near the ground; and rappelling, where the person descends quickly by sliding down a rope. Climbers can buy day or monthly passes or annual memberships. Shoes and harnesses can be rented cheaply, and helmets are available free of charge as all climbers must wear protective helmets.

In addition to individual and group climbing classes, Extreme Exposure has several group programs, including birthday parties, a kids' summer camp, and corporate team-building classes. Kyle notices a newspaper article about another rocking climbing center, to be called The Krag, that will be built in Sacramento in the next six months. He notes the following items about The Krag that are different from Extreme Exposure: (1) The Krag will have climbs up to a maximum 60 vertical feet, (2) it will have a climber certification program, (3) there will be day trips to outdoor rock-climbing areas, (4) there will be group overnight and extended-stay rock-climbing trips to the Canadian Rockies, and (5) The Krag's annual membership fee will be about 20% lower than Extreme Exposure's. Kyle chats with Dianne, one of his Extreme Exposure members who is in marketing, during a break in one of her climbing visits. Dianne summarizes what she believes Kyle needs to find out about his current members:

1. What is demographic and rock-climbing profile of Extreme Exposure's members?

2. How satisfied are members with Extreme Exposure's climbing facilities?

3. How interested are its members in: (a) day trips to outdoor rock-climbing areas, (b) group overnight and or extended-stay rock-climbing trips to the Canadian Rockies, and (c) a rock-climber certification program?

4. What are members' opinions of the annual membership fee charged by Extreme Exposure?

5. Will members consider leaving Extreme Exposure to join a new rock-climbing center with climbs that are 10 feet higher than the maximum climb at Extreme Exposure?

6. Will members consider leaving Extreme Exposure to join a new rock-climbing center with higher climbs and a lower annual membership fee?

For each of Dianne's questions, identify the relevant construct and indicate how it should be measured.