Question 1

What type of retailer has a very large primary trading area?
A) impulse retailer
B) convenience retailer
C) destination retailer
D) parasite store

Accepted Answer

Destination retailers are those that customers are willing to travel further distances to visit due to their unique offerings or brand image. As a result, they tend to have larger primary trading areas than convenience or impulse retailers. Parasite stores are not a recognized retail category.

Question 2

Based on Reilly's law,a city with a population of 90,000 would draw people from about how many times the distance as a city with 10,000 population?
A) 1.5 times
B) 2 times
C) 3 times
D) 4 times

Accepted Answer

Reilly's law states that the size of a city's hinterland (the area from which it draws people and resources) is proportional to the city's population raised to the 0.5 power. Therefore, the distance from which a city with 90,000 population draws people would be:
(90,000/10,000)^0.5 = 3
This means that a city with 90,000 population would draw people from about 3 times the distance as a city with 10,000 population. Therefore, the correct choice is C) 3 times.

Question 3

A retailer's core shoppers come from which trading area?
A) secondary trading area
B) primary trading area
C) parasite trading area
D) fringe trading area

Accepted Answer

The answer of A retailer's core shoppers come from which...

Question 4

A supermarket has developed a model to aid in its site selection process.The model contains variables such as trading area population in the primary trading area and expected market share.This illustrates a(n)________ model.
A) regression
B) historical analogy
C) gravity
D) analog

Accepted Answer

The answer of A supermarket has developed a model to...

Question 5

A department store uses a(n)________ computer site selection model.This model contains a series of equations linking variables such as traffic patterns,population size,average income,and transportation adequacy to estimated sales.
A) regression
B) analog
C) gravity
D) historical analogy

Accepted Answer

A regression model is commonly used to estimate the relationship between a dependent variable and one or more independent variables. In this case, the department store is using a regression model to estimate sales based on various factors such as traffic patterns, population size, average income, and transportation adequacy.

Question 6

Based on Reilly's law,two cities that have equal populations are 100 miles apart.The point of indifference ________.
A) is 10 miles from the first city
B) is 15 miles from the first city
C) is midway between each city
D) cannot be determined from the information provided.

Accepted Answer

According to Reilly's law, the point of indifference (the point where residents will shop in either city) is located midway between the two cities. Therefore, the correct answer is C) is midway between each city.

Question 7

The distance between city A and city B is 30 miles; city A's population is 1,000,000 and city B's is 16,000,000.The point of indifference between the two cities is ________.
A) 6 miles from A, 24 miles from B
B) 12 miles from A, 18 miles from B
C) 18 miles from A, 12 miles from B
D) 24 miles from A, 6 miles from B

Accepted Answer

The point of indifference is determined by the ratio of the populations of the two cities. Since city B's population is 16 times that of city A, the point of indifference is 1/16th of the distance from city B and 15/16th from city A, which is 6 miles from A and 24 miles from B.

Question 8

The point of indifference between two cities or communities in Reilly's law most closely corresponds to ________.
A) Huff's law based on 50 percent probability of consumer shopping
B) a 50 percent index of retail saturation
C) a saturated retail trading area
D) a 0.50 economic base index for an area

Accepted Answer

Reilly's law of retail gravitation is used to predict how consumers will choose between two competing commercial centers. The point of indifference between two cities or communities, according to Reilly's law, is where a consumer is indifferent to shopping at either location, which closely corresponds to Huff's law based on a 50 percent probability of consumer shopping. This is because both laws deal with probabilities of consumer choices between different shopping locations.

Question 9

Loyal customers who shop at a store despite very long travel requirements constitute the store's ________.
A) trading-area overlap
B) primary trading area
C) secondary trading area
D) fringe trading area

Accepted Answer

Loyal customers willing to travel long distances to shop at a store are considered part of the store's fringe trading area. This area is beyond the primary and secondary trading areas and includes customers who shop at the store infrequently but are loyal.

Question 10

Which of the following retailers is most likely to be a parasite in a major shopping center?
A) coffee shop
B) electronic repair facility
C) department store
D) clothing specialty retailer

Accepted Answer

A coffee shop is a retailer that typically attracts customers who are already in the shopping center and looking for a break or a quick refreshment. It does not contribute to the overall draw of the shopping center and can be considered a parasite retailer. The other options (electronic repair, department store, clothing specialty retailer) are more likely to bring in their own customers and contribute to the overall draw of the shopping center.

Question 11

Which software products enable retailers to graphically evaluate the characteristics of alternate locations?
A) data warehousing
B) data mining
C) geographic information systems
D) geographic mapping

Accepted Answer

Geographic information systems (GIS) allow retailers to create maps and analyze data related to potential store locations. This can include information such as demographic data, traffic patterns, and nearby competitors. GIS software products enable retailers to graphically evaluate the characteristics of alternate locations.

Question 12

A store has a disproportionately large primary,secondary,and fringe trading area.This situation can be caused by ________.
A) a high level of prices
B) its being a destination store
C) physical barriers
D) high competition in each trading area

Accepted Answer

A store being a destination store, with unique offerings or high reputation, can attract customers from a wider area than usual. This can lead to a disproportionately large primary, secondary, and fringe trading area. The other options do not necessarily cause a disproportionately large trading area.

Question 13

Assume that there are three shopping locations with 500,1,000,and 3,000 square feet of space allocated to outdoor lighting fixtures.A group of potential customers lives 5 minutes from the first location,10 minutes from the second location,and 15 minutes from the third location.The retailer estimates the effect of travel time to be 1.The probability of consumers' shopping at location one is ________.
A) 10 percent
B) 15 percent
C) 25 percent
D) 33 percent

Accepted Answer

The probability of consumers shopping at a location depends on the distance from their residence and the travel time. In this question, the effect of travel time is given as 1, which means that distance is the only factor affecting consumer behavior. As the potential customers live 5, 10, and 15 minutes away, it can be assumed that they will likely choose the nearest location. 
Therefore, the probability of customers shopping at location one, which is 5 minutes away, is the highest among the three options, which is 25 percent (500/2000). Thus, the correct answer is C.

Question 14

Huff's law is an example of a(n)________ computer site selection model.
A) regression
B) analog
C) gravity
D) historical analogy

Accepted Answer

Huff's law is a gravity model in spatial analysis used to estimate the probability of a consumer visiting a particular location based on its attractiveness (such as distance, amenities, and accessibility) compared to other competing locations.

Question 15

Based on Reilly's law,two cities have populations of 1,000,000 and 25,000,000.The point of indifference is 10 miles from the larger city.What is the total distance between the two cities?
A) 40 miles
B) 45 miles
C) 50 miles
D) 60 miles

Accepted Answer

The answer of Based on Reilly's law,two cities have populations...

Question 16

Which computer-based site selection model generally allows a researcher to study the effect of one of several variables on expected sales?
A) analog
B) gravity
C) regression
D) interactive

Accepted Answer

A regression model allows a researcher to study the relationship between two or more variables, such as the effect of store location on expected sales. By analyzing the data and identifying the most significant variables, the model can predict the expected sales at different locations based on those variables. The other options (analog, gravity, interactive) do not necessarily allow for this specific type of analysis.

Question 17

The most important trading area to a retailer is the ________.
A) primary trading area
B) secondary trading area
C) fringe trading area
D) parasite area overlap

Accepted Answer

The primary trading area is the most important trading area to a retailer as it is the geographic area where the retailer generates the majority of their sales and where they have the highest market share. The secondary trading area and fringe trading area are also important, but not as crucial as the primary trading area. The parasite area overlap is not a commonly used term in retail and is not a relevant choice.

Question 18

Which statement about the trading area of a parasite store in a regional shopping center is correct?
A) A parasite store has its own unique trading area.
B) The trading area of the parasite store approximates that of the shopping center.
C) The parasite store has a larger trading area than the center's department store.
D) The parasite store is a destination store.

Accepted Answer

The trading area of a parasite store in a regional shopping center is likely to be similar to the trading area of the shopping center itself, as most customers come to the shopping center as a whole and not specifically for the parasite store. A parasite store usually relies on the larger traffic generated by the shopping center to attract customers, rather than being a destination store with its own unique trading area. While it is possible for a parasite store to have a larger trading area than a center's department store, this is not necessarily true in all cases.

Question 19

Reilly's law is an example of a(n)________ computer site selection model.
A) regression
B) analog
C) gravity
D) historical analogy

Accepted Answer

The answer of Reilly's law is an example of a(n)________...

Question 20

"A grouping of stores may actually increase the trading area for each store." This statement especially applies to ________.
A) convenience products
B) emergency products
C) impulse products
D) shopping products

Accepted Answer

Shopping products require more consideration and decision-making from consumers, thus a grouping of stores that offer options and variety can increase the trading area for each store. This is because consumers are likely to travel a greater distance for shopping products compared to convenience, emergency, or impulse products.

Quiz 9: Trading-Area Analysis

What type of retailer has a very large primary trading area?

Based on Reilly's law,a city with a population of 90,000 would draw people from about how many times the distance as a city with 10,000 population?

A retailer's core shoppers come from which trading area?

A supermarket has developed a model to aid in its site selection process.The model contains variables such as trading area population in the primary trading area and expected market share.This illustrates a(n) ________ model.

A department store uses a(n) ________ computer site selection model.This model contains a series of equations linking variables such as traffic patterns,population size,average income,and transportation adequacy to estimated sales.

Based on Reilly's law,two cities that have equal populations are 100 miles apart.The point of indifference ________.

The distance between city A and city B is 30 miles; city A's population is 1,000,000 and city B's is 16,000,000.The point of indifference between the two cities is ________.

The point of indifference between two cities or communities in Reilly's law most closely corresponds to ________.

Loyal customers who shop at a store despite very long travel requirements constitute the store's ________.

Which of the following retailers is most likely to be a parasite in a major shopping center?

Which software products enable retailers to graphically evaluate the characteristics of alternate locations?

A store has a disproportionately large primary,secondary,and fringe trading area.This situation can be caused by ________.

Huff's law is an example of a(n) ________ computer site selection model.

Based on Reilly's law,two cities have populations of 1,000,000 and 25,000,000.The point of indifference is 10 miles from the larger city.What is the total distance between the two cities?

Which computer-based site selection model generally allows a researcher to study the effect of one of several variables on expected sales?

The most important trading area to a retailer is the ________.

Which statement about the trading area of a parasite store in a regional shopping center is correct?

Reilly's law is an example of a(n) ________ computer site selection model.

"A grouping of stores may actually increase the trading area for each store." This statement especially applies to ________.