Proprietary Study for Consumer Golf Instruction Study Originally

Proprietary Study for: Consumer Golf Instruction Study Originally Published in April 2009

Objective & Methodology Objective – Investigate serious golfers attitudes about golf instruction and why more don’t regularly partake in a formal lesson structure Methodology – Utilized the Golf Datatech Database of Serious Golfers to gather opinions of 1, 577 serious golfers to a survey regarding attitudes and opinions about golf instruction Statistics – Some responses allow for more than one answer, those are specified as multiple responses – Occasionally tables do not add up to 100% due to rounding. – Means for some questions are developed through weighted averages of the midpoint range – Some bases of cross tabbed data are very small and thus are statistically less stable, these bases are specified and are directional only 2

Margin of Error @ 95% confidence level – Total survey sample of 1, 577 has a margin of error of +/- 2. 5% – Sample of 1, 222 who have taken a lesson at any time in the past has a margin of error of +/- 2. 8% – Those who “Currently” take lessons (337) produces a margin of error of +/- 5. 3% (small base and is best used for direction only) – Those who “Used to” take lessons (885) has a margin of error of +/- 3. 3% – Thos who have “Never” taken lessons (355) produces a margin of error of +/- 5. 2% (small base and is best used for direction only) 3

Executive Summary / Key Findings • • Serious golfers who have never taken a lesson represent a significant business opportunity as 9 in 10 are willing to practice to improve and 84% believe lessons are valuable in helping someone improve their game • Golf professionals are widely recognized and respected for their knowledge of the game and their ability to teach the swing, however serious golfers are significantly more likely to purchase new equipment rather than taking lessons • The perception is that lessons are very expensive and in these economic times respondents said they would be more likely to take lessons if they were 20%-25% less expensive • 4 Serious golfers are optimistic about playing golf and spending money on the game during 2009, and while the overall business is facing a stiff economic headwind it’s primarily the non core player who will reduce their time and $ commitment to the game Physical fitness/exercises for golfers would appear to be an area of potential opportunity for golf professionals as 82% are interested in learning about them but only 33% have ever done so

Golfographics • Gender - 94% of the total base are male and 6% are female – Currently take lessons = 89% male, 11% female – Used to take lessons = 95% male, 5% female – Never take lessons – 98% male, 2% female • Women are more likely to take lessons Age – Total survey mean 54. 9 – Currently take lessons = 55. 3 – Used to take lessons = 55. 5 – Never take lessons = 53. 3 • Handicap – Total survey mean 16. 5 – Currently take lessons = 14. 9 – Used to take lessons = 16. 9 – Never take lessons = 17. 0 5 Lower handicappers are more likely to currently take lessons

Golfographics • Annual Rounds – Total survey mean 58. 3 – Currently take lessons = 71. 4 – Used to take lessons = 56. 0 Lesson takers play many more rounds – Never take lessons = 51. 5 • Combined HH Income – Total survey $115 k – Currently take lessons = $150 k – Used to take lessons = $110 k – Never take lessons = $96 k 6 Current lesson takers HHI 55%+ higher than non lesson takers

Golfographics Private vs. Public Course Player Profile Private Players Gender: Male Female 88% 12% 96% 4% 56. 5 14. 3 76. 3 $164 k 89% 77% 42% 54. 6 16. 9 54. 8 $105 k 82% 66% 17% 256 Mean Age Mean Handicap Mean Annual Rounds Played Mean Household Income Importance of Score to Enjoyment Practice at Least Weekly Currently Take Lessons From a Golf Pro Base: Public Players 1321 Private course players are more proficient and have a much higher involvement level in the game as well as much higher HHI$ 7

Expectations for 2009 Compared to last year… Serious Golfers are Very Optimistic About Playing More Rounds of Golf in the Upcoming Year, Even in the Face of Negative Economic Pressures Rounds played – 35% of the total survey plan to play more rounds while 10% plan to play fewer rounds and 55% expect to play the same number of rounds Rounds played at home golf facility – 67% of the total survey expect to play about the same number of rounds at their home golf facility and 26% expect to play more rounds 8

Expectations for 2009 While the economic news is not positive, planned expenditures on golf are expected to be slightly higher than last year, proving that serious golfers plan to try and find a way to play the game Golf Expenditures – 30% of respondents expect to spend more on golf in 2009 – 50% expect their golf expenditures to stay the same – While only 20% expect to spend less 9

The Serious Golfer’s Game Importance of Scoring 83% say score is at least important Base: 1, 577 Take Lessons Currently Very Important/Important 81% 77% 337 885 355 10 10 & Under 11 to 15 94% 89% 78% 16 to 20 21 & Higher 408 451 Those who “currently take lessons” and “lower handicappers” are more likely to say score is important to their enjoyment of the round 72% 318 Very Important/Important Base: Never 94% Base: Handicap Used to 400 Q: On a normal day when you play golf, which of the following best describes how your score for the day impacts the enjoyment of the round?

The Serious Golfer’s Game Importance of Scoring Among those who indicate score is important to the enjoyment of the round Base: 1, 309 Among those who say score is important: • 55% said golf instruction would improve their game more than new equipment • However only 12% said they spent more on golf instruction in the last year while 65% spent more on new equipment • 43% very willing and 52% willing to practice (combined 95% willing to practice) • 36% said lessons are very valuable and 58% said they are valuable (combined 94% say lessons are valuable) Those who believe score is important are willing to practice and understand the value of lessons…however they are still more likely to buy new equipment!! 11 Q: On a normal day when you play golf, which of the following best describes how your score for the day impacts the enjoyment of the round?

The Serious Golfer’s Game Tournament Play Top Responses Base: 1, 577 Take Lessons Don’t Play In Tournaments at all Base: Currently Used to Never 18% 31% 37% 337 885 355 • 29% of all respondents do not participate in tournaments • Those currently taking lessons are far more likely to play in tournaments 12 Q: Which of the following types of golf tournaments do you participate in during a normal golf season? (Select ALL that apply)

The Serious Golfer’s Game Best Part of their Game • Serious golfers say the best parts of their games are off the tee and putting with 25% each • Only 1% believe sand play is the best part of their game 13 Q: In your opinion, what is the best part of your game?

The Serious Golfer’s Game Practicing and Taking Lessons Willing to Practice to Improve 94% Believe Golf Lessons are Valuable 93% Total survey Base: 1, 577 Currently take lessons Used To take lessons Never take lessons 99% 94% 90% Currently take lessons Used To take lessons Never take lessons 10 & Under 11 to 15 16 to 20 21 & Higher 95% 93% 95% 94% 10 & Under 11 to 15 16 to 20 21 & Higher Those who “never take lessons” represent an opportunity as: 9 in 10 are willing to practice to improve and more than 8 in 10 believe lessons are valuable Q: How willing are you to practice to improve your game? 14 Q: How valuable do you believe lessons from a golf professional are to improving your game? 100% 94% 84% 91% 93% 94% 93%

The Serious Golfer’s Game Practicing and Taking Lessons If a golfer takes lessons, they are more likely to practice! • Respondents who “Currently” take lessons are almost twice as likely to practice a few times a week compared to those who “Used to” take lessons and almost three times as likely than those who “Never” took lessons • Only 2% of those who “Currently” and 13% of those who “Used to” take lessons aid they almost never practice compared to 27% of those who “Never” take lessons Practice Frequency A few times per week Once a week or so Once a month Almost Never Base: 15 Total Survey 24% 44% 18% 14% 1% 1577 Q: On average, how frequently do you practice (during the golf season)? Currently 40% 48% 9% 2% 0% 337 Used to 22% 46% 19% 13% 0% 885 Never 14% 35% 22% 27% 1% 355

Opinions about Lessons Rating Statements (1 = Completely DISAGREE 10 = Completely AGREE) Total Survey Take Lessons Currently Used To Never Lessons are the only way to improve 5. 5 6. 6 5. 4 4. 9 I prefer to work on my own swing issues to improve my game 5. 7 4. 5 5. 8 6. 7 I would prefer to use golf publications to get swing tips/game improvement suggestions 4. 7 3. 8 4. 7 5. 3 I would take more lessons if they weren’t so expensive 7. 0 6. 4 7. 3 6. 9 I believe that golf pros are very knowledgeable and helpful at teaching the game/swing 7. 8 8. 2 7. 7 7. 4 I always seem to get worse immediate after a lesson 4. 5 4. 6 4. 0 I just don’t have enough time to practice after a lesson to make it worthwhile 4. 6 3. 6 4. 7 5. 4 • Golf Professionals are perceived as knowledgeable and helpful re: teaching the game/swing • Many respondents would take more lessons if they were less expensive, particularly those who “used to take” them • Those currently taking lessons more likely to feel they are the “only way to improve” 16 Q: Please rate each of the following statements with 1 equal to Completely DISAGREE and 10 equal to Completely AGREE

Opinions about Lessons Rating Statements (1 = Completely DISAGREE 10 = Completely AGREE) Total Survey Take Lessons Currently Used To Never I would take more lessons if I had more free time 5. 5 5. 6 5. 3 I don’t know where to go/who to use to find a teacher who would work with me 3. 2 2. 1 3. 4 4. 0 I’m intimidated or uncomfortable taking lessons from a golf pro 2. 8 1. 8 2. 8 3. 7 I’m not good enough to benefit from lessons 2. 4 1. 7 2. 4 3. 2 I don’t care enough about my score to take lessons 2. 5 1. 5 2. 6 3. 3 When I’m in the market for new equipment, I rely on an instructor as a primary source for purchase advice 3. 6 4. 7 3. 5 2. 7 I search out instructors who use high-tech training tools/videos/computers 4. 4 5. 0 4. 5 3. 5 • A lack of free time has some dampening effect on the number of lessons taken by a serious golfer 17 Q: Please rate each of the following statements with 1 equal to Completely DISAGREE and 10 equal to Completely AGREE

Taking Lessons Too expensive 45% I only take lessons when I am struggling with my game 25% Took too much time 12% Didn’t improve Reached all of my goals 4% 6% I actually got worse 4% I don’t care enough to take lessons Why stopped 8% Didn’t like the teacher Take Lessons 2% No real reason Base: 885 Base: 1, 577 Those who stopped taking lessons most often cite costs as determining factor Q: Do you currently take golf lessons from a golf professional 18 Q: Which of the following best describes why you stopped taking lessons? (Select ALL that apply) 31%

Taking Lessons - Used to Looking at the reasons those who “used to” take lessons stopped by handicap…. Base: 11 to 15 43% 34% 10% 5% 11% 4% 1% 3% 30% 29% 12% 6% 3% 1% 34% 25% 13% 9% 3% 7% 6% 3% 31% 15% 13% 11% 1% 6% 6% 3% 29% 154 Too expensive I only take lessons when I am struggling with my game Took too much time Didn’t improve Reached all of my goals Didn’t like the teacher I actually got worse I don’t care enough to take lessons No real reason 10 & Under 29% 16 to 20 47% 21 & Higher 55% 234 264 233 • The lower the handicap the more likely to take lessons when they are struggling • The higher the handicap the more concerned they are over price 19 Q: Which of the following best describes why you stopped taking lessons? (Select ALL that apply)

Taking Lessons - Never Respondents who said they had never taken a lesson were asked to tell us why in their own words. Below are the tabulated responses: Cost too much/expensive/can't afford them No Time No need for lessons / don't care enough Work it out on my own Not sure who to use/can't fine an instructor Not good enough/wouldn't help anyway Just haven't Don't know/no opinion Use friends/family members Prefer book/videos Don't want to change my swing Shy / intimidated / comfort level Other Base: 20 41% 28% 12% 11% 6% 4% 3% 3% 3% 2% 2% 1% 6% 355 Q: Why haven't you ever taken lessons from a golf professional? (Unaided ask of those who have “never” taken a lesson)

Taking MORE Lessons Respondents who have taken lessons in the past were asked why they don’t take “more” lessons. The most frequent responses cited “time” and “cost” for not taking more lessons. Sample responses are shown below, and the complete unedited verbatim responses are sorted by handicap and may be found in the appendix. “Don't have time to do it and practice afterward to make it worth the investment ” (10 & Under) “Have never found anyone who taught something more than out of a textbook or from a video. Too rote in their approach and too cookie cutter. ” (10 & Under) “Because lessons can only help point you in the right direction, you tend to swing "loose" on the range and "tighter" on the golf course. There's no O. B. on the range. . . “(11 to 15) “I have no faith that the professional is actually qualified to teach. Golf schools and professionals that are known to be qualified to teach are way too expensive. ” (11 to 15) “Somewhat satisfied with where I am, and not too interested in becoming more serious. Golf is a fun game at my age, and I don't intend to make money at it, but I DO enjoy performing well. ” (16 – 20) “Started playing golf by taking lessons first and developed a good swing. I am fairly consistent and would use lessons only on the short game. ” (21 & higher) 21 Q: Why haven't you ever taken lessons from a golf professional? (Unaided ask of those who have “never” taken a lesson)

Lessons Taken In Past Two Years Number of Lessons Taken Type of Lessons Taken Total Base= Currently Used to 867 333 534 Full Swing 91% 95% 89% Short Game 52% 63% 45% Sand game 17% 23% 13% Putting 24% 34% 18% Playing lessons 17% 26% 11% One third of those who have taken a lesson in the past year have taken 1 to 3, 22% have taken 4 -6, while only 16% have taken more than 7 22 Q: How many lessons have you taken in the past two years? Q: What types of lessons have you taken in the past two years? (Select ALL that apply)

Effectiveness of taking lessons (Took lessons past two years) Total Base: Currently Used to 867 333 534 Very effective 16% 28% 9% Effective 67% 66% Neither 14% 5% 20% Ineffective 3% 1% 4% Very Ineffective 0% 0% 1% • 28% of those who currently take lessons consider them “very effective” • 2/3’s of those who used to take lessons consider them to be at least “effective” By Handicap Very effective/effective 23 10 &Under 92% Q: In general, how effective have your golf lessons been 11 to 15 85% 16 to 20 80% 21 & Higher 76%

Effectiveness of taking lessons (Took lessons past two years) • When trying to replicate the prescribed changes following instruction 67% of those who “currently” take lessons said they able to at least most of the time, compared to 53% of those who “used to” take lessons • When looking at the ability to replicate the prescribed changes by handicap, as one would expect the more advanced the player the more often they were able to replicate the lessons on their own • It’s worth noting that over half of all respondents with handicaps of 16 or higher could replicate their lessons “most of the time” suggesting that the transference from the practice tee to the golf course is less than ideal By Handicap: Always Most of the time Sometimes Rarely Never Base: 24 10 & Under 5% 72% 22% 1% 0% 187 11 to 15 3% 56% 37% 4% 0% 16 to 20 2% 49% 46% 3% 0% 21 & Higher 1% 48% 44% 6% 1% 246 236 198 Q: After taking lessons from a golf pro/instructor, which of the following represents your ability to replicate the prescribed changes on your own?

Practicing After Lessons • While 17% of those who are “currently” taking lessons say they practice daily only 8% of those who “used to” take lessons said the same • Looking at the practice patterns after lessons by handicap reveals that far fewer higher handicappers practice afterward By Handicap: 10 & Under Daily Once a week or so A couple of times Don’t practice Base: 25 11 to 15 16 to 20 21 & Higher 21% 61% 17% 1% 11% 61% 26% 2% 8% 60% 29% 3% 6% 52% 34% 8% 187 246 236 198 Q: How frequently do you practice (either on the range or course) after taking a lesson from a pro?

The Golf Professional / Instructor “Regular” Golf Professional for Lessons Based at the facility played most often Base: 867 Currently 17% Used to 38% Currently 80% Used to Currently Used to 28% YES 3% 34% Base: 413 48% 26 30% 22% Of the 48% of respondents who have a “Regular” golf professional for lessons only 44% of them are located at the facility they play golf at most often Q: Do you have a ‘”regular” golf professional that you use for lessons? Q: Is your regular golf pro/instructor based at the facility where you play most of your golf?

The Golf Professional / Instructor Distance Traveled to Take Lessons Total Survey 10 Miles of less 11 - 50 miles 51 or more miles Take Lessons Currently Used To 56% 37% 7% 65% 32% 3% 226 Base: 59% 35% 5% 151 75 Very small base to be used for direction only 6 in 10 respondents take their lessons very close to home (10 miles or less) 27 Q: How far do you travel to take lessons with your golf pro/instructor? (Unaided)

The Golf Professional / Instructor Selecting a golf professional/instructor • When respondents were asked to indicate how they select their golf professional (multiple responses allowed), 39% said their instructor was referred by a friend/golfing partner, 37% said they were the pro at their home course and 33% selected their pro by word of mouth Referred from a friend/golfing partner He/she is my home course pro. Word of mouth Advertisement on local media Internet search Magazine list or article Saw him/her on The Golf Channel Base: 28 Q: How did/do you select a golf instructor? 39% 37% 33% 7% 4% 3% 1% 867

The Golf Professional / Instructor Per hour rate for lessons • Respondents who have taken lessons in the past two years normally pay/paid an average of $66 “per hour” while those who are “Currently” taking lessons are paying a mean of $72 per hour Total Survey MEAN Total Survey 29 Q: How much do you normally pay “per hour” for your lessons Used To $66. 24 Base: Currently $71. 55 $65. 41 867 333 534

The Golf Professional / Instructor Hourly rate that would create value for private lessons • Those respondents who have taken a lesson in the past two years were asked to provide the amount they thought (unaided) that would create enough value to purchase private golf instructions. Total Survey Valid $ Mean $49. 24 Currently Used To $59. 20 $43. 02 Would less expensive instruction lead to more lessons • 74% of respondents said they would take lessons if they were less expensive, however respondents who never take lessons are still less likely to do so (66%) even if they were less expensive Total Survey Currently Used To Never Yes No 74% 26% 75% 25% 76% 24% 66% 34% Base: 1577 337 885 355 Q: What hourly rate do you feel would create enough value to purchase private lessons/instruction? Q: If instruction from a local professional/instructor was less expensive do you believe you would take lessons? 30

Golf School Attendance Base: 1, 222 Golfers who are currently taking lessons are more likely to have attended a golf school 31 Q: Have you ever attended a golf school(s)?

Golf School Attendance Respondents who had attended a golf school in the past were asked unaided to name them. The unaided responses were tabulated and below represents responses that received 2% or more mentions Dave Pelz John Jacobs ESPN Golf School Ben Sutton Golf Jim Flick Mount Snow Golf Digest School Natural Golf US Golf Academy Course name mentioned Golf Made Simple Base: 12% 7% 4% 3% 3% 3% 2% 2% 281 While there is no clear cut leading golf school, Dave Pelz was mentioned the most at 12% 32 Q: Which golf schools did you attend?

Game Improvement Interest in Physical Training & Golf Exercises Total Interest 82% 90% 83% 72% Serious golfers show high interest in Physical Training and Golf Exercises, with those who have taken lessons more interested 33 Q: How interested are you in physical training/stretching/exercises that are specially targeted at improving your golf skills?

Game Improvement Interest in Physical Training & Golf Exercises While a large percentage of respondents have an interest in physical training, exercises and/or stretching specifically targeted at improving their golf skills only one third of the respondents have every participated in such activities. Total Survey Take Lessons Currently Used To Never Yes 33% 44% 33% 24% No 67% 56% 67% 76% Base: 1, 577 337 885 355 Opportunities exist to provide physical training, which has never been done effectively regardless of lesson taking history 34 Q: Have you ever participated in physical training/stretching/exercises that are specifically targeted at improving your golf skills?

Game Improvement Interest in Physical Training & Golf Exercises Respondents were asked to provide, in their own words, their feelings about the physical training sessions. How they enjoyed them, if they worked for them, are they still doing the exercises and are they interested in doing more. I continue to perform the basic exercises; flexibility is a key to continued success. (10 & Under) No, I don't enjoy the exercise. It is work. I try to exercise/stretch to improve my ability to play golf as a senior. To be able to walk 18 holes and carry my bag as often as possible. (10 & Under) Just started a stretching program last Tuesday and I am sore all over. Hope it helps though. (11 to 15) They helped loosen my back and I did not have as many back aches after a round of golf. I do stretching exercises prior to each round of golf. (11 to 15) Getting loose helps. Weight training over the last 20+ years has certainly added distance and flexibility. (16 to 20) I finding them boring but necessary and they do work for me. (16 to 21) They probably would be very good for me but to be honest I think I am just lazy. (21 & Higher) I investigated an exercise program from reading several pro books and use them for warm-ups and at the gym to build strength and increase flexibility. More is always better. (21 & Higher) 35 Q: In your own words, please tell us your feelings about those sessions? Do you enjoy them? Did they work for you? Are you still doing the exercises? Are you interested in doing more?

Game Improvement Purchasing Instructional & Teaching Aids Total Survey Take Lessons Currently Used To Never Training Aids Yes 60% 70% 63% 43% No 40% 37% 57% Yes 56% 66% 58% 44% No 44% 34% 42% 56% Base: 1, 577 337 885 355 DVDs / CDs 36 Q: Have you ever purchased training aids? Q: Have you ever bought instruction videos, CDs or DVDs?

Game Improvement Golf Instruction Tips via the Internet Total Survey Daily Take Lessons Currently Used To Never 3% 3% 3% 4% 20% 21% 19% Once a month 5% 4% 5% 6% Twice a month 5% 4% 5% 6% Almost never 38% 37% 39% 36% Never 16% 20% 13% 19% Base 1, 577 337 885 355 Weekly The Internet has yet to make a significant impact as a mean for distributing golf instruction or tips Q: How frequently do you use the Internet to get golf instruction tips? 37

Game Improvement Golf Instruction Tips via Golf Channel Total Survey Take Lessons Currently Used To Never Daily Weekly Once a month Twice a month Almost never Never 5% 28% 13% 19% 27% 8% 9% 29% 10% 17% 28% 6% 3% 30% 14% 19% 26% 8% 5% 23% 14% 20% 29% 10% Base 1, 577 337 885 355 Q: How frequently do you watch golf instruction shows on Golf Channel? 38

Game Improvement Frequency of Instruction/Tips Online by Golf Channel Frequency Below is a cross tab of those who use the Internet at least twice a month to get golf instruction tips by those who use watch golf instruction shows on Golf Channel. Total Survey Take Lessons Currently* Used To Never* Daily 11% 20% 8% 12% Weekly 49% 54% 52% 38% Twice a month 13% 7% 14% 18% Once a month 13% 9% 13% 17% Almost never 9% 9% Never 4% 2% 4% 6% Base: 445 92 249 104 *Note: small base Q: How frequently do you watch golf instruction shows on Golf Channel? 39

Game Improvement Instruction vs. New Equipment Improves your game the most Total Survey Golf Instruction New Equipment Both Neither Take Lessons Currently Used To Never 54% 4% 31% 11% 60% 1% 30% 9% 56% 4% 30% 10% 45% 6% 32% 17% 1, 577 337 885 355 Spent more money on in past year Total Survey Golf Instruction New Equipment Neither Take Lessons Currently Used To Never 11% 64% 26% 34% 56% 10% 6% 66% 28% 0% 64% 36% 1, 577 337 885 355 Serious golfers understand lessons improve their game the most but still spend their money on new equipment 40 Q: What do you think would improve your game more? Q: Which did you spend more money on in the past year?

Game Improvement Custom Fitting Have been custom fit More serious golfers have been custom fit for irons than drivers 41 Q: When you guy a new set of irons, do you get them custom fit for your swing? Q: When you guy a new driver, do you get it custom fit for your swing?

Game Improvement Custom Fitting Does Custom Fitting make a difference? Very much Somewhat Not much Not at all Base: • • Total Survey 47% 42% 10% 1% 1577 Currently 62% 33% 4% 0% 337 885 Never 38% 44% 16% 2% 355 Those predisposed to taking lessons are more likely to believe custom fitting of clubs can make a difference Looking at this by handicap indicates that the lower the handicap the more likely the respondents is to believe custom fitting will make a difference Q: How much do you believe custom fitting of golf clubs make a difference to your game? 42 Used to 45% 9% 1%

Ultimate Golf Teaching Professional Choice If serious golfers could have a golf lesson from any golfing professional in the world, without cost being a factor they would chose: Hank Haney Butch Harmon David Leadbetter Dave Pelz Rick Smith Tiger Woods Jim Mc. Lean any pro Jim Flick 34% 17% 7% 3% 2% 2% 1% 1% 1% Note: Only 1% or more mentions reported If cost were not a factor, Hank Haney is the teaching professional most respondents would like to have a lesson with followed by Butch Harmon and David Leadbetter 43 Q: If you could have golf lessons from any golf teaching professional in the world, without cost being a factor, who would you choose? (Unaided)