Question 1

A(n)_____ is when there is no better use for a site than the retail store that is being planned for that site.
A) terminal retail location
B) 100-percent location
C) idealized retail site location
D) measured response to retail density
E) freestanding location

Accepted Answer

A 100-percent location is one where there is no better use for a site than the retail store that is being planned. This means that the location has high potential for success as a retail store. The other options are either not specific enough or do not fit the given definition.

Question 2

The central business district (CBD)is usually a unplanned shopping area in the center of a large city where all public transportation systems converge and shoppers can visit on their way to/from work.

Accepted Answer

The answer of The central business district (CBD)is usually a...

Question 3

When selecting a retail site,a retailer should NOT consider the site's:
A) traffic flow and accessibility.
B) retail competition.
C) demographics.
D) level of inflation.
E) lease terms.

Accepted Answer

The level of inflation is not directly related to the success of a retail site and therefore should not be a primary consideration when selecting a site. Factors such as traffic flow, accessibility, retail competition, demographics and lease terms are more relevant in determining the potential success of a retail location.

Question 4

_____ is the extent to which potential demand for the retailer's goods and services is concentrated in certain census tracts,ZIP code areas,or parts of the community.
A) Demand gravity
B) Demand growth
C) Demand concentration
D) Demand density
E) Demand elasticity

Accepted Answer

Demand density is the correct term that describes how potential demand for a retailer's goods and services is concentrated in specific geographic areas, such as census tracts or ZIP code areas.

Question 5

When a community has a high amount of square feet per employee,it potentially indicates:
A) that a low level of retail technology exists in the community.
B) a low level of self-service retailing.
C) a desire for more service.
D) that a low level of service technology exists in the community.
E) a high level of self-service retailing.

Accepted Answer

A high amount of square feet per employee typically indicates a high level of self-service retailing, as fewer employees are needed to manage larger spaces when customers serve themselves.

Question 6

A retailer must identify its location before it decides how best to reach its target market.

Accepted Answer

The answer of A retailer must identify its location before...

Question 7

In terms of location,retailers can be classified as store-based and nonstore-based.

Accepted Answer

This statement is correct. Retailers can be classified based on the location of their operations, with store-based meaning they have physical retail stores, and nonstore-based meaning they sell products online or through other non-physical channels.

Question 8

Which of the following does NOT result in a larger trade area for a retail store?
A) Sale of specialty products
B) Higher consumer mobility
C) Larger store size in terms of square feet of space
D) A larger distance between competing stores
E) Sale of convenience goods

Accepted Answer

Sale of convenience goods typically results in a smaller trade area because these goods are items that consumers want to purchase frequently and with minimal effort, leading them to choose stores that are closer to their location. Specialty products, higher consumer mobility, larger store sizes, and a larger distance between competing stores all contribute to expanding a store's trade area by attracting customers from a wider area.

Question 9

A retailer uses a _____ to graphically illustrate the extent to which potential demand for the retailer's goods and services is concentrated in certain census tracts,ZIP codes,or parts of the community.
A) boundary density typography
B) demand density map
C) census tract concentration statistics
D) demand analysis graphing
E) neighborhood size visuals

Accepted Answer

The term "demand density map" best fits the description of a graphical illustration that shows the concentration of potential demand for a retailer's goods and services in certain areas. The other options (A, C, D, and E) do not accurately represent this concept.

Question 10

Although traditional stores are constrained by geographic factors,a "virtual store" does not face these geographic constraints.

Accepted Answer

A virtual store is an online platform that can be accessed from anywhere in the world, which means it is not constrained by geographic factors like physical stores are.

Question 11

Site analysis begins by evaluating the:
A) traffic flow, land cost per square foot, and type of neighbor within the chosen market.
B) density of demand and supply of various areas within the chosen market.
C) demand density, site availability, and type of neighbors within a trading area.
D) type of neighbor, traffic flow, and demand density within a trading area.
E) demand density, supply density, and average sales per square feet.

Accepted Answer

The answer of Site analysis begins by evaluating the:
A) traffic...

Question 12

The extent to which retailers are concentrated in different geographic areas of a community is referred to as:
A) overstorage.
B) store saturation.
C) supply metrics.
D) supply density.
E) supply leverage.

Accepted Answer

Supply density refers to the concentration of retailers in different geographic areas of a community.

Question 13

Which of the following questions should NOT be used to assess the quality of retail competition in a particular geographic market?
A) What is their market share?
B) How promotion oriented are they?
C) How price oriented are they?
D) How customer oriented are they?
E) How long they have been in business?

Accepted Answer

The length of time a business has been operating does not necessarily indicate the quality of retail competition in a particular geographic market. The other options, A through D, are more relevant factors in assessing quality competition in a retail market.

Question 14

Which of the following are examples of compatible businesses?
A) A home improvement store and a beauty shop
B) A drugstore and a restaurant
C) A post office and a hair salon
D) A hardware store and a fast-food restaurant
E) A furniture store and a leather store specializing in recliners

Accepted Answer

A furniture store and a leather store specializing in recliners are compatible businesses as they both cater to the home decor industry and complement each other's products.

Question 15

The final step in site selection is:
A) assessing the neighboring stores.
B) obtaining financing.
C) construction of a pro forma return on asset model for each possible site.
D) conducting an analysis of demand density.
E) conducting an analysis of supply density.

Accepted Answer

Conducting a pro forma return on asset model for each possible site is the final step in site selection. This helps to determine the potential profitability of each site and aids in making an informed decision about where to establish a new store. While assessing neighboring stores, obtaining financing, and analyzing demand and supply density are all important factors in site selection, they are typically done earlier in the process.

Question 16

A retailer's home page on the Internet is equivalent to a local retailer's storefront.

Accepted Answer

A retailer's home page on the Internet is their virtual storefront, where customers can browse and make purchases just as they would in a physical store.

Question 17

For purposes of evaluating sites,the_____ is not relevant.
A) Expected net profit margin
B) Expected annual sales
C) Expected market share
D) Expected return on assets
E) Expected return on equity

Accepted Answer

The answer of For purposes of evaluating sites,the_____ is not...

Question 18

Store-based retailers operate from a fixed store location that requires customers to travel to the store to view and select merchandise or services.

Accepted Answer

Store-based retailers operate from a physical store location that customers must travel to in order to shop.

Question 19

Many retailers develop checklists for site evaluation.Which general category would NOT be found on such a list?
A) Local demographics
B) Traffic flow and accessibility
C) Retail competition
D) Site characteristics
E) Identification of target markets

Accepted Answer

Identification of target markets is typically determined before a site evaluation process begins, as it influences which locations are considered. The other options (A-D) are directly related to assessing the suitability of a specific site for retail operations.

Question 20

For a target market to be reached successfully by a retailer,the market should be measurable,accessible,and accessible.

Accepted Answer

For a target market to be successful, it must be measurable, meaning the retailer should be able to quantify the characteristics of the intended audience. It should also be accessible, meaning that the retailer should be able to reach the target audience through their preferred channels. Finally, the target market should be substantial enough and have enough spending power to make targeting them worthwhile.

Quiz 7: Market Selection and Retail Location Analysis

A(n) _____ is when there is no better use for a site than the retail store that is being planned for that site.

The central business district (CBD)is usually a unplanned shopping area in the center of a large city where all public transportation systems converge and shoppers can visit on their way to/from work.

When selecting a retail site,a retailer should NOT consider the site's:

_____ is the extent to which potential demand for the retailer's goods and services is concentrated in certain census tracts,ZIP code areas,or parts of the community.

When a community has a high amount of square feet per employee,it potentially indicates:

A retailer must identify its location before it decides how best to reach its target market.

In terms of location,retailers can be classified as store-based and nonstore-based.

Which of the following does NOT result in a larger trade area for a retail store?

A retailer uses a _____ to graphically illustrate the extent to which potential demand for the retailer's goods and services is concentrated in certain census tracts,ZIP codes,or parts of the community.

Although traditional stores are constrained by geographic factors,a "virtual store" does not face these geographic constraints.

Site analysis begins by evaluating the:

The extent to which retailers are concentrated in different geographic areas of a community is referred to as:

Which of the following questions should NOT be used to assess the quality of retail competition in a particular geographic market?

Which of the following are examples of compatible businesses?

The final step in site selection is:

A retailer's home page on the Internet is equivalent to a local retailer's storefront.

For purposes of evaluating sites,the_____ is not relevant.

Store-based retailers operate from a fixed store location that requires customers to travel to the store to view and select merchandise or services.

Many retailers develop checklists for site evaluation.Which general category would NOT be found on such a list?

For a target market to be reached successfully by a retailer,the market should be measurable,accessible,and accessible.