A proposed location for a supermarket chain is within three miles of a current store.What is the major factor that management should study relative to both locations?
A) the trading area of the current location
B) the trading area of the proposed location
C) the trading-area overlap of both locations
D) the demographics of the trading area of each location

Question

Quizplus · Accepted Answer

The major factor that management should study relative to both locations is the trading-area overlap of both locations. By understanding the areas where the two trading areas overlap, the management can avoid cannibalizing their existing store's customer base and ensure that the new store will attract enough new customers to be profitable. Therefore, option C is the best choice.

A Proposed Location for a Supermarket Chain Is Within Three