Question 1

What is the difference between multiple regression analysis and the analogue approach?

Accepted Answer

Multiple regression analysis uses statistical methods to predict sales, whereas the analogue approach relies more on judgment and qualitative assessments.

Question 2

What demographic characteristics would affect the location of a McDonald's?

Accepted Answer

The answer of What demographic characteristics would affect the location...

Question 3

The Village Green, a woman's clothing store, took a map of the city and the cheques written by its customers during the last quarter. The store's owner then marked the address of each customer on the map with a map pin. By looking at where the pins clustered on the map, she could determine her trade area. She was engaged in:

Accepted Answer

Customer spotting involves identifying and analyzing the geographic distribution of a store's customers to determine the trade area.

Question 4

A Geographic Information System (GIS):

Accepted Answer

The answer of A Geographic Information System (GIS):
...

Question 5

Why do retailers use Statistics Canada Census data?

Accepted Answer

Retailers use Statistics Canada Census data primarily to obtain demographic information, which helps them understand the characteristics of their target market and make informed business decisions.

Question 6

What should a retail analyst consider when assessing overall demand for a particular region or trade area?

Accepted Answer

The answer of What should a retail analyst consider when...

Question 7

The Coffee Cup is a small town donut shop located in the heart of the central business district. Hundreds of people pass the entrance on their way to the shops and offices and feel compelled to stop and satiate their cravings. The Coffee Cup is an example of a:

Accepted Answer

The answer of The Coffee Cup is a small town...

Question 8

A__________ is a computerized system that enables retail analysts to visualize information about their customers' demographics, buying behaviour, and other data in a map format.

Accepted Answer

A Geographic Information System (GIS) is a computerized system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data, making it ideal for visualizing customer demographics and buying behavior in a map format.

Question 9

In determining its trade zone areas, the owner of the local FTD florist, has identified the geographic area that is within a ten minute drive of the store as the store's:

Accepted Answer

The answer of In determining its trade zone areas, the...

Question 10

Which of the following can be used to determine how many customers are in a trade area and where they live?

Accepted Answer

Customer spotting involves identifying and recording the locations of customers, which helps determine how many customers are in a trade area and where they live.

Question 11

Which of the following is least likely to be a destination store?

Accepted Answer

A convenience shop in a hotel is least likely to be a destination store because it typically serves the immediate needs of hotel guests rather than attracting customers from a wider area specifically to visit the store.

Question 12

Why have location decisions become more important in recent years?

Accepted Answer

The answer of Why have location decisions become more important...

Question 13

Sherry is an armchair tourist inhibited from the real thing by a lousy job, but she makes up for it by indulging in foreign films. This Friday, she plans to drive into the city, about 20 kilometres away, to check out a shop specializing in foreign films. To Sherry, this shop is a:

Accepted Answer

A destination store is one that customers are willing to travel a significant distance to visit because it offers unique or specialized products, like the foreign films Sherry is interested in.

Question 14

The objective of Huff's Gravity Model is to:

Accepted Answer

Huff's Gravity Model is used to determine the probability that a customer from a specific area will shop at a particular shopping center, based on factors like distance and size of the shopping center.

Question 15

Inga will be opening her futon store in Regina, but she's concerned about competition. Where should she look to understand about potential competition?

Accepted Answer

All of these sources can provide information about potential competition in the area. The chambers of commerce can offer insights into local businesses, the Internet can provide a wide range of data and reviews, the Yellow Pages can list existing businesses, and local newspaper advertising can show current market players.

Question 16

A store that does not create its own traffic and whose trade area is determined by the dominant retailer in the shopping centre is considered a:

Accepted Answer

A symbiotic store relies on the traffic generated by a dominant retailer in the shopping center, rather than creating its own traffic.

Question 17

Why is it important to use the Huff's Gravity Model in conjunction with the analogue and regression methods?

Accepted Answer

The answer of Why is it important to use the...

Question 18

Why did suburban shopping centres grow between the 1950s and 1980s?

Accepted Answer

The answer of Why did suburban shopping centres grow between...

Question 19

Clark needed shoes for his child who had extra wide feet. The only shoe store in town that carried them required a trip of three buses followed by a two block walk. To Clark, that shoe store is a:

Accepted Answer

A destination store is one that customers are willing to travel a long distance to visit because it offers unique or specialized products that are not available elsewhere.

Question 20

Which of the following retailers might customers consider as a destination store?

Accepted Answer

A destination store is one that customers are willing to travel to because it offers unique products, services, or experiences that cannot be found elsewhere. All the options provided could be considered destination stores as they each offer something unique or specialized.

Quiz 5: Retail Locations Strategytrade Area Decisions and Site Assessment