Deck 5: Retail Locations Strategytrade Area Decisions and Site Assessment

Question 1

To satisfy the needs of people living in small towns, the president of a department store chain located her stores away from the larger cities. It could be said that the president had a strategy to locate in:

A) abundant trade areas
B) understored trade areas
C) urban trade areas
D) overstored trade areas
E) undersaturated trade areas

Answer 1

B

Question 2

Retail promotion and distribution economies of scale can be achieved with:

A) a saturated trade area
B) little competition
C) supportive lifestyle demographics
D) multiple locations
E) a sound business climate

Answer 2

D

Question 3

Cathy needed new jeans for the cool change in the weather. She decided to drive 20 minutes to a shopping centre. Once there, she had to search for a parking spot and walk to get to the stores, but when she got inside, she was warm and could leisurely walk to a variety of stores that carried the assortments she was seeking. Cathy was shopping in what type of shopping centre?

A) Central business district
B) Mall
C) Strip centre
D) Power centre
E) Fashion/specialty centre

Answer 3

B

Question 4

Ingress/egress refers to:

A) ability to see the store and enter the parking lot safely
B) the renewal and rebuilding of offices, housing, and retailers in deteriorating areas
C) the ease of entering and exiting a site's parking lot
D) the amount of crowding of either cars or people
E) None of these

Question 5

Burger King seeks locations where their major competitor is McDonald's because they believe it's important to have a strong competitor so Burger King can develop methods to allow them to successfully compete with them. These locations could be considered as:

A) saturated trade areas
B) overstored trade areas
C) understored trade areas
D) competitive trade areas
E) trade specific locations

Question 6

An area that has too few stores selling a specific good or service to satisfy the needs of the population is said to be an:

A) overstored trade area
B) underpopulated trade area
C) overpopulated trade area
D) underutilized trade area
E) understored trade area

Question 7

When Jordan's Furniture, The Couch Potato (furniture store), The Bombay Furniture Company and Urban Barn all locate close to each other in the city they are allowing consumers to

A) specialty shop
B) convenience shop
C) destination shop
D) comparison shop
E) category shop

Question 8

When Dale was considering establishing a used record and CD shop, he looked at the average household incomes of the local residents, their education level, and the growth of the area. Which of the following factors was Dale considering?

A) Business climate
B) Economies of scale
C) Competition
D) Span of managerial control
E) Demographics

Question 9

A geographic area encompassing most of the customers who would patronize a specific retail site and that accounts for the majority of a store's sales and customers is called a:

A) region
B) target market
C) site
D) trade area
E) CMA

Question 10

Factors to consider in an accessibility analysis include:

A) road pattern
B) ingress/egress
C) congestion
D) amount of parking facilities
E) All of these

Question 11

Category specialists consumers will go to even if it is inconvenient are called

A) unique merchandisers
B) dealers
C) malls
D) destination stores
E) outlet centres

Question 12

On his way home from work Barnard stopped at a shopping centre. He parked right in front of the dry cleaners where he could pick up his suit. He did not have to move his car because right next door was a gift shop where he could pick up a baby gift for his new niece. Conveniently enough, next door to that was a Mac's Milk where he purchased
Essentials like milk and cereal. Barnard was shopping in what type of shopping centre?

A) Mall
B) Central business district
C) Power centre
D) Fashion/specialty centre
E) Strip centre

Question 13

Which of the following would be considered when assessing demographic characteristics?

A) Incomes
B) Population growth
C) Size of households
D) Education
E) All of these

Question 14

A store that sold sheet music, band instruments, and offered in-store lessons for the instruments would be most interested in when an analysis of the trade area
Was conducted for the new store.

A) the business climate
B) size and composition of households in the trade area
C) the span of managerial control
D) income and occupations of trade area population
E) lifestyles of the trade area population

Question 15

The two major configurations of shopping centres are:

A) Outlet centres and theme centres
B) Freestanding and enclosed
C) Staple and fashion
D) Downtown and suburban
E) Strip centres and enclosed malls

Question 16

Location decisions can be divided into four levels: country, region, trade area, and:

A) specific site
B) province
C) neighbourhood
D) CMA
E) district

Question 17

Why have suburban shopping centres grown between 1950 and 1980?

A) During this time, the population shifted to the suburbs.
B) Urban dwellers found it easier to shop in the suburbs.
C) Local governments mandated the growth to attract urbanites.
D) Downtown shopping centres became unkempt and crime ridden.
E) Municipal shopping became difficult after business hours.

Question 18

Three types of shopping situations are convenience shopping, comparison shopping, and

A) unique shopping
B) advantage shopping
C) specialty shopping
D) strategy shopping
E) off-price shopping

Question 19

The owner of a store that sold New Age music, aromatherapy candles, and herbal supplements would be most interested in when he did an analysis of the trade
Area for his new store.

A) lifestyles of the trade area population
B) the business climate
C) size and composition of households in the trade area
D) income and occupations of trade area population
E) the span of managerial control

Question 20

A trade area that offers customers a good selection of goods and services while allowing competing retailers to make good profits is said to be:

A) market developed
B) saturated
C) overstored
D) competitively depleted
E) understored

Question 21

Which of the following statements about shopping malls is true?

A) Shopping malls have lower rents than central business districts.
B) Each retailer is responsible for the external environment outside its store.
C) The tenant mix in a shopping mall is not planned.
D) Managers of shopping malls either want to have all specialty stores or all shopping goods stores-never a mix of the two.
E) None of these statements about shopping malls are true.

Question 22

What are some of the challenges being faced by malls?

A) Many malls are old and unappealing to shoppers.
B) The apparel business continues to be weak, causing some specialty stores to close.
C) Malls are being challenged as competition from other retail locations (like power and lifestyle centres, etc.).
D) Shoppers are looking for "value" alternatives to stores found in malls.
E) All of these are challenges being faced by malls.

Question 23

Why would a retailer choose not to expand to a central business district?

A) High security may be necessary
B) Shoppers are subjected to weather conditions
C) Business is slow in the evening
D) Limited parking
E) All of these

Question 24

Which of the following best describes outlet centres?

A) They are generally near regional shopping centres
B) They are typically located near traditional regional malls
C) They never offer first-quality, full-line merchandise
D) They may have a trade area of 100 kilometres or more
E) They are usually enclosed

Question 25

Why would a small retailer be interested in opening a shop in a mall kiosk?

A) The short-term leases can be helpful if the business fails.
B) The retailer can offer seasonal merchandise and then close after the season.
C) Kiosks can be in prime locations.
D) A kiosk is relatively inexpensive compared to a regular store.
E) All of these.

Question 26

Even though planned shopping centres are an excellent site option for retailers, they have their disadvantages. Which of the following describes one of these disadvantages?

A) Competition is kept to a minimum because developers try not to have more than one specialty store for each product category
B) Rents in malls are often higher than at other locations
C) Each retailer is allowed to establish his/her own hours of operation
D) The developer has no control over exterior signs
E) All of these are disadvantages

Question 27

Downtown locations usually offer:

A) full-line department stores
B) fewer shoppers than CBDs
C) entertainment and recreational activities
D) supermarkets as anchors
E) higher rents than traditional central business districts

Question 28

Which of the following statements about outlet centres is true?

A) It is predicted that the number of outlet centres will double over the next decade
B) Outlet centres are often located some distance from regional shopping centres
C) Outlet centres sell only irregulars and overruns
D) Outlet centres have the no-frills look of warehouse stores
E) Outlet centres are not found outside of the United States

Question 29

Where is a central business district located?

A) Downtown business areas
B) Airports, hotel lobbies and convention centres
C) Freestanding sites
D) Regional centres
E) Malls

Question 30

The Homer Laughlin China Company in the U.S. state of West Virginia manufactures Fiesta china in a variety of colours. The factory has a store where they feature Fiesta products that are discounted or distressed. This type of centre is called a/an:

A) outlet centre
B) fashion/specialty centre
C) demalling centre
D) regional centre
E) lifestyle centre

Question 31

Which of the following statements about the central business district (CBD) is true?

A) The most successful CBDs for retail trade are those with a large number of residents living in the area
B) Like modern shopping centres, CBDs are typically well planned
C) Shopping at CBDs is heaviest on weekends and at night
D) CBDs have not experienced any gentrification
E) All of these statements about CBDs are true

Question 32

Hazelton Lanes in Toronto is a shopping centre composed of upscale apparel stores, gift shops, and many high-quality boutiques. It is an example of a/an:

A) convenience centre
B) fashion/specialty centre
C) outlet centre
D) price-oriented centre
E) off-price centre

Question 33

Which of the following retailers would most likely be found in a power centre?

A) An independent toy store, a women's apparel store, a dry cleaner, and a shoe store
B) A Shoppers Drug Mart, a Sears, and a Loblaws Grocery
C) Home Depot, Winners, and Best Buy
D) A liquor store, a convenience store, and a hair salon
E) Starbucks Coffee and an independent retail bookstore

Question 34

Shopping centres that focus on posh neighbourhoods, high-income areas with an outdoor, traditional streetscape can be considered as:

A) off-price centres
B) lifestyle centres
C) convenience centres
D) outlet centres
E) regional malls

Question 35

Where would you most likely find a fashion/specialty centre?

A) In small towns
B) In high-income trade areas
C) Near discount store malls
D) At highway interchanges
E) In middle-class neighbourhoods

Question 36

Why has the number of outlet centres declined?

A) Customers can buy below full retail prices elsewhere
B) Traditional retailing has become more price-competitive
C) Customer demand has declined
D) Customers are not satisfied with broken assortments and damaged products
E) All of these are true.

Question 37

Which of the following statements about downtown locations ("Main Streets") is true?

A) Main Streets tend to attract more people than central business districts
B) As a group, retailers are avoiding Main Streets because it is such a new concept
C) Main Streets typically offer more recreation and entertainment activities than CBDs
D) Occupancy costs are generally lower than the primary CBDs
E) All of these statements about Main Streets are true

Question 38

Water Street in St. John's houses many professional services, as well as specialty stores, apparel boutiques, restaurants, and gift shops. The street has a high volume of pedestrian traffic. Water Street can be considered as an example of a:

A) power centre
B) regional centre
C) shopping centre
D) neighbourhood business district
E) central business district

Question 39

Scott wants to open a holistic medicine shop with merchandise he claims will cure the common cold. He has $26,000 to invest in the business. How might a kiosk satisfy his needs?

A) Kiosks are located outside of freestanding sites.
B) Mall managers typically have a no-compete clause in the contracts for store space rentals.
C) Kiosks are much less expensive to rent than a store.
D) He would be given a long-term lease.
E) All of these describe reasons why he would like to begin his business in a kiosk.

Question 40

Beatrice has been sporting a new diamond ring for some time and finally decided to shop for the wardrobe to match. She selected a shopping centre featuring upscale apparel shops and boutiques that was two hours away from her home, but according to Beatrice, it was "well worth the drive". Beatrice was probably going to shop in a/an:

A) convenience centre
B) fashion/specialty centre
C) power centre
D) regional mall
E) outlet mall

Question 41

Simon is planning to open a store for hockey enthusiasts, and has found an affordable location in a small strip centre off a major highway. What concerns should he have when he considers the accessibility of the site?

A) Visibility
B) Road patterns
C) Artificial barriers, such as railroads tracks
D) Traffic flow
E) All of these

Question 42

Tearing down old buildings or restoring them into new offices, housing developments, and retailers is an example of:

A) trade area expansion
B) gentrification
C) modernization
D) retail segmentation
E) commercialization

Question 43

Which of the following refers to the customer's ability to see the store and enter the parking lot safely?

A) Visibility
B) Road condition
C) Natural barriers
D) Congestion
E) Micro analysis

Question 44

In an accessibility analysis of a retail location in Niagara Falls, which type of retailer would be most concerned about visibility?

A) An established bookstore with a loyal following
B) A retailer who depended on tourist dollars for its success
C) A restaurant with a four-star rating
D) A large nursery
E) A retailer of do-it-yourself merchandise

Question 45

When a city's old buildings have been modernized, cracked sidewalks have been replaced with wide brick walks, and new multipurpose office buildings have opened, this is an example of:

A) gentrification
B) trade zone expansion
C) retail segmentation
D) commercialization
E) modernization

Question 46

Why are airports such a profitable place to have a retail business?

A) Sales per square foot are similar to shopping malls
B) Wages are lower than in cities
C) International tourists and local residents like to shop in Canadian airports
D) Airport leases are lower
E) Waiting time allows people to spend money in airport shops

Question 47

When considering the trade area zone, Dillon should realize the for his
grocery store includes all the people within a five minute drive of his store.

A) secondary zone
B) macro zone
C) geographic zone
D) primary zone
E) tertiary zone

Question 48

Why are grocery stores located in strip centres?

A) The synergy between grocery and specialty shops is lucrative
B) Supermarkets are price competitive, and strip centres have inexpensive rent
C) Better hours of operation as opposed to regional shopping centres
D) Marketing costs can be shared within the strip centre
E) All of these

Question 49

If Wally wanted to analyze accessibility factors in the immediate vicinity of a retail site for a pro-golf shop, he should evaluate:

A) whether there are enough on and off ramps for the highway that passes through the city
B) the general state of the roads near the site
C) the natural barriers in the community, such as rivers and mountains
D) how visible the site signs are from the roads surrounding the site
E) all of these

Question 50

are shopping centres that include office towers, hotels, residential complexes, civic centres, and convention complexes on top of or attached to the shopping centre.

A) Mixed-use developments
B) Convention centres
C) Multilevel marketing centres
D) Central business districts
E) Shopping malls

Question 51

Which of the following is an issue that affects the site decision?

A) Zoning
B) Environmental issues
C) Signs
D) Condition of building
E) All of these

Question 52

In terms of trade areas, the owner of Bubba's Bar and Grille defines his _ geographic area in which 65 percent of his customers live.

A) primary zone
B) macro zone
C) geographic zone
D) tertiary zone
E) secondary zone

Question 53

When Lonnie took her kids to Walmart, she noticed a McDonald's restaurant near the entrance, which prompted her to stop for lunch. This restaurant is a great example of a/an:

A) power centre
B) store within a store
C) merchandise kiosk
D) mixed-use development
E) freestanding site

Question 54

What are the advantages gained from locating in a freestanding site?

A) Synergistic neighbours
B) Restrictive hours
C) High rent, but visible location
D) Ample parking for customers
E) All of these

Question 55

How would you classify products you would most likely find at 7-Eleven or Sobeys?

A) fabricated merchandise
B) convenience goods
C) grocery goods
D) unsought goods
E) specialty goods

Question 56

The most serious disadvantage inherent in a freestanding site is:

A) loss of the ability to restrict hours of operation
B) lack of synergy with other stores
C) high rent
D) lack of restrictions on merchandise sold
E) loss of direct competition

Question 57

Bob finally got the nerve to tattoo his girlfriend's name on his arm. The tattoo parlour, Tattoo On You is located 10 kilometres away. For Bob, that parlour is an example of a/an:

A) shopping goods store
B) destination store
C) theme/festival centre
D) service centre
E) freestanding site

Question 58

Mixed-use developments (MXDs) are popular with retailers because they:

A) offer low rent
B) offer short-term leasing agreements
C) provide free storage facilities to attract retailers
D) have high security
E) bring additional shoppers to the store

Question 59

A is one in which the merchandise, selection, presentation, pricing, or other unique factor act as a magnet for customers.

A) shopping goods store
B) destination store
C) service centre
D) theme/festival centre
E) freestanding site

Question 60

Costco requires a tremendous amount of operating space; therefore, you are most likely to find them located in a/an:

A) central business district
B) discount-anchored centre
C) freestanding site
D) neighbourhood centre
E) off-price centre

Question 61

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

A) The analogue approach uses statistics rather than judgement to predict sales
B) The analogue approach gathers its information through nationwide customer surveys
C) Multiple regression analysis cannot be used to determine potential sales like the analogue approach
D) Multiple regression analysis uses geodemographic segmentation systems to determine potential sales in a new market
E) Multiple regression analysis uses statistics rather than judgement to predict sales for a new store

Question 62

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

Question 63

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:

A) customer clustering
B) geographic research
C) residential research
D) primary research
E) customer spotting

Question 64

A Geographic Information System (GIS):

A) is used to isolate target customer groups
B) contains data that are collected at the point of sale
C) is a spatial database
D) identifies the boundaries of a trade area
E) is accurately described by all of these

Question 65

Why do retailers use Statistics Canada Census data?

A) The literature provides retailers with quarterly economic trends that are easily understood.
B) Retailers use the information provided when entering international markets.
C) The information provides updates and descriptions of current fads.
D) They provide retailers with demographic information.
E) All of these are true.

Question 66

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

Question 67

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:

A) secondary store
B) freeloading store
C) primary store
D) symbiotic store
E) destination store

Question 68

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.

A) Gravitational Model
B) Geographic Information System (GIS)
C) Projection Map (PM)
D) Retail Information System (RIS)
E) Trade Area Topographical Map (TATM)

Question 69

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:

A) secondary zone
B) micro zone
C) primary zone
D) tertiary zone
E) macro zone

Question 70

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

A) customer clustering
B) primary research
C) customer spotting
D) geographic research
E) None of these.

Question 71

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

A) A convenience shop in a hotel
B) A building supplies store
C) A home electronics store
D) An IMAX cinema
E) A new car dealership

Question 72

Why have location decisions become more important in recent years?

Question 73

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:

A) symbiotic store
B) destination store
C) magnet store
D) shopping goods store
E) primary zone store

Question 74

The objective of Huff's Gravity Model is to:

A) determine the hierarchy of retailing activities according to the assortment of merchandise available
B) define the relative ability of two cities to attract customers from the area between them
C) create a comparative model that allows the retailer to determine the ideal location
D) determine the probability that a customer residing in a particular area will shop at a particular shopping centre
E) define the relationship between the size of a shopping area and the area's income levels

Question 75

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

A) The chambers of commerce
B) The Internet
C) The Yellow Pages
D) The local newspaper advertising
E) All of these

Question 76

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:

A) destination store
B) tertiary store
C) symbiotic store
D) secondary store
E) primary store

Question 77

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

A) The analogue and regression methods consider too many variables other than demographics
B) The Huff's model only offers comparative data and is unable to assist in choosing specific sites
C) The Huff's model only offers information about income levels in comparison to the size of the shopping area
D) There has been additional supportive research since the Huff's model that can supplement the findings of the Huff's model
E) The Huff's model does not utilize demographic variables

Question 78

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

Question 79

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:

A) magnet store
B) drawing store
C) destination store
D) symbiotic store
E) discount retailer

Question 80

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

A) The only shoe store in town that will dye shoes to match dresses
B) The store in town with the largest selection of computer games
C) The store in town with the lowest priced pharmaceuticals
D) The only store in town that carries CCM skates
E) Any of these could be an example of a destination store