Question 1

The growth patterns of communities include all of the following except:
A) initial explosive growth.
B) rapid growth.
C) continuous growth.
D) relatively stable growth.
E) decline.

Accepted Answer

The answer of The growth patterns of communities include all...

Question 2

Geographic information systems are computerized systems that combine _____ geography with _____ geography.
A) meteorological; spatial
B) physical; cultural
C) physical; sociological
D) spatial; economic
E) physical; economic

Accepted Answer

Geographic information systems (GIS) integrate physical geography, which deals with the natural environment, and cultural geography, which focuses on human cultures and their impacts on the world.

Question 3

_____ maps enable the retailer to use visual techniques such as colors,shading,and lines to display cultural characteristics of the physical space.
A) Three-dimensional
B) Dymaxion
C) Geographic
D) Thematic
E) Sociographic

Accepted Answer

Thematic maps are commonly used to display cultural characteristics of a physical space. They use visual techniques like colors, shading, and lines to represent different features or data sets within a specific geographic area. This makes them an effective tool for retailers to showcase the socio-economic, demographic, or cultural characteristics of their target market. Three-dimensional maps use elevation data to create a realistic visualization of a location, while Dymaxion maps are a type of world map that minimizes distortion in size and shape of continents but are not used for displaying cultural characteristics. Geographic maps are more general, showing physical or political features of an area. Sociographic maps are not a commonly used category of map.

Question 4

Kansas City and Des Moines are 200 miles apart.Kansas City has a population of about 450,000,while the population of Des Moines is 200,000.Given Reilly's law,what is a possible breaking point between these two cities?
A) 138 miles from Kansas City
B) 138 miles from Des Moines
C) 120 miles from Kansas City
D) 120 miles from Des Moines
E) 80 miles from Kansas City

Accepted Answer

The answer of Kansas City and Des Moines are 200...

Question 5

According to Reilly,the _____ is the breaking point at which customers would be indifferent to shopping at either of two cities.
A) point of inflection
B) point of gravitational pull
C) point of indifference
D) point of equal case
E) point of saturation

Accepted Answer

Reilly's law of retail gravitation states that consumers are attracted to larger cities for their retail needs, but there is a point of indifference at which customers would be as likely to shop at either of two cities. This point is called the point of indifference or the equilibrium point. Therefore, the correct choice is C: point of indifference. The other options are not relevant to Reilly's law.

Question 6

Reilly's law is based on two assumptions,one of which is:
A) population is a good indicator of the differences in the goods and services available in different cities.
B) retail competitors are of equal size.
C) the two competing cities are unequally accessible from the major road.
D) smaller cities will attract shoppers from larger communities.
E) price fixing occurs between retailers.

Accepted Answer

Reilly's law assumes that population is a good indicator of the differences in the goods and services available in different cities, which helps determine the gravitational pull of a city in terms of retail trade.

Question 7

As a retail executive you are presented with the following index of retail saturation (IRS)numbers.As such,which of the following would be the least attractive index of retail saturation number?
A) 43.17
B) 99.2
C) 71.77
D) 68.41
E) 25.31

Accepted Answer

A lower value of IRS indicates lower levels of retail saturation, which can be interpreted as greater potential for growth and capturing market share. Therefore, option E with an IRS of 25.31 would be the least attractive option as it indicates a higher level of retail saturation compared to the other options. Thus, options A, B, C, and D would be more attractive to a retail executive.

Question 8

GIS can be used by the retailer for all of the following EXCEPT:
A) market selection.
B) site analysis.
C) analyzing the sales of competitors.
D) advertising management.
E) evaluation of store managers.

Accepted Answer

The answer of GIS can be used by the retailer...

Question 9

The consensus among retail location experts is that the U.S.is currently:
A) understored.
B) in need of more shopping centers.
C) overstored or highly saturated.
D) lacking in retail growth capital.
E) building too few new retail sites.

Accepted Answer

The word "saturated" suggests that the market has already reached a point where there are too many stores relative to demand. Therefore, the correct choice is C ("overstored or highly saturated"). A, B, D, and E suggest that there is a need for more retail locations or resources to support them, which contradicts the idea of saturation.

Question 10

Which of the following is NOT a major market supply factor?
A) Square feet per store
B) Quality of competition
C) Gross margins maintained by existing competition
D) Growth in stores
E) Square feet per employee

Accepted Answer

Gross margins maintained by existing competition is not a major market supply factor as it is related to the profitability of existing competition and does not directly affect the supply of goods in the market. The other factors listed such as square feet per store, growth in stores, square feet per employee, and quality of competition all have a direct impact on the supply of goods in the market.

Question 11

Identify the first step in the retail location decision.
A) Evaluation of the trading area's demand and supply density.
B) Identification of the most attractive markets in which to operate.
C) Evaluation of capital constraints facing the retailer.
D) Evaluation of the trading area's supply related factors.
E) Identification of the trading areas that should be ignored.

Accepted Answer

The first step in the retail location decision is to identify the most attractive markets in which to operate. This involves analyzing demographic information, income levels, and consumer behavior to determine which areas have the most potential for success. Only after identifying these markets can the retailer move on to evaluating supply and demand factors, capital constraints, and other considerations.

Question 12

Reilly's law of retail gravitation explains how:
A) shopping centers attract business.
B) large urbanized areas attract customers from smaller rural communities.
C) retail stores attract business from mail-order customers.
D) small stores can survive in a highly competitive environments.
E) a retailer can determine when outshopping can be profitable.

Accepted Answer

Reilly's law of retail gravitation states that larger urbanized areas have a greater pull on customers from smaller rural communities, ultimately attracting more business to their retail stores. This is based on the idea that consumers are willing to travel further distances to urban areas for the selection and variety of products.

Question 13

Which of the following is NOT a major component used by retailers to determine a market's demand potential?
A) Population characteristics
B) Buyer behavior characteristics
C) Household income
D) Population density
E) Level of retail competition

Accepted Answer

The level of retail competition is not a major component used by retailers to determine a market's demand potential. Instead, it is a factor that affects the competitive landscape within the market. The other options (population characteristics, buyer behavior characteristics, household income, and population density) are directly related to understanding the demand potential in a market by assessing the characteristics and behaviors of potential customers.

Question 14

A _____ area is the geographic area from which a retailer,group of retailers,or community draws its customers.
A) market
B) trading
C) shopping
D) merchandising
E) customer drawing

Accepted Answer

The correct term is "trading area." This refers to the specific geographic area from which a retailer, a group of retailers, or a community attracts its customers.

Question 15

_____ is the buffer that people have created between themselves and the raw physical environment and includes the characteristics of the population,humanly created objects,and mobile physical structures.
A) Culture
B) Nationalism
C) Spirit
D) Logic
E) Humanity

Accepted Answer

Culture refers to the way of life, beliefs, values, customs, behaviors, and artifacts that characterize a particular group or society. It includes the characteristics of the population, humanly created objects, and mobile physical structures, which create a buffer between people and the raw physical environment. Culture shapes how people interact with the environment and influences how they use and modify it to meet their needs.

Question 16

If average store profitability is high in a trading area,then the trading area is most likely to be:
A) understored.
B) declining.
C) overstored.
D) undersaturated.
E) hypercompetitive.

Accepted Answer

High average store profitability in a trading area suggests that there is less competition and more demand than supply, indicating that the area is likely understored.

Question 17

Which of the following is NOT an example of a Buyer Behavior Characteristic?
A) Consumer lifestyle.
B) Store loyalty.
C) Geographic conditions.
D) Climatic conditions.
E) Consumer education.

Accepted Answer

The answer of Which of the following is NOT an...

Question 18

_____ occurs when a resident of a community travels to another community to shop.
A) Trade area shopping
B) Transitory shopping
C) Mobility shopping
D) Impulse shopping
E) Outshopping

Accepted Answer

Outshopping refers to the act of traveling to a community outside of one's own community to do shopping. Option A, trade area shopping, refers to the geographic location around a store or shopping center where customers are expected to come from. Option B, transitory shopping, and option D, impulse shopping, both refer to types of shopping behavior rather than specifically traveling to another community to shop. Option C, mobility shopping, is not a commonly used term in retail or marketing.

Question 19

When there are too many stores in a community to yield a fair return on investment,a community is said to be:
A) retail lacking.
B) understored.
C) unsaturated.
D) overstored.
E) oversaturated.

Accepted Answer

When a community has too many stores that cannot yield a fair return on investment, it is said to be overstored. This means that there is an excess supply of retail space relative to the demand for it, which can lead to increased competition, lower prices, and reduced profits for retailers.

Question 20

The _____ (IRS)is the ratio of demand for a product divided by the available supply.
A) index of retail stores
B) index of retail sales
C) index of responsible selling
D) index of retail space
E) index of retail saturation

Accepted Answer

The term that best fits the given definition is retail saturation, which refers to the level of market demand for a particular product or service compared to the current level of supply. The other options do not relate to this definition.

Quiz 7: Market Selection and Retail Location Analysis

The growth patterns of communities include all of the following except:

Geographic information systems are computerized systems that combine _ geography with _ geography.

_____ maps enable the retailer to use visual techniques such as colors,shading,and lines to display cultural characteristics of the physical space.

Kansas City and Des Moines are 200 miles apart.Kansas City has a population of about 450,000,while the population of Des Moines is 200,000.Given Reilly's law,what is a possible breaking point between these two cities?

According to Reilly,the _____ is the breaking point at which customers would be indifferent to shopping at either of two cities.

Reilly's law is based on two assumptions,one of which is:

As a retail executive you are presented with the following index of retail saturation (IRS) numbers.As such,which of the following would be the least attractive index of retail saturation number?

GIS can be used by the retailer for all of the following EXCEPT:

The consensus among retail location experts is that the U.S.is currently:

Which of the following is NOT a major market supply factor?

Identify the first step in the retail location decision.

Reilly's law of retail gravitation explains how:

Which of the following is NOT a major component used by retailers to determine a market's demand potential?

A _____ area is the geographic area from which a retailer,group of retailers,or community draws its customers.

_____ is the buffer that people have created between themselves and the raw physical environment and includes the characteristics of the population,humanly created objects,and mobile physical structures.

If average store profitability is high in a trading area,then the trading area is most likely to be:

Which of the following is NOT an example of a Buyer Behavior Characteristic?

_____ occurs when a resident of a community travels to another community to shop.

When there are too many stores in a community to yield a fair return on investment,a community is said to be:

The _____ (IRS) is the ratio of demand for a product divided by the available supply.