Bath and Body Works is a retail chain of bath and home fragrance products.Before entering a new geographic area,the company develops an index consisting of a ratio of local market potential in dollars (demand)to local market retailing space in square feet.If this ratio is below a predetermined level,the site is not considered further.However,if this ratio is greater than that level,further site-selection analyses are performed.This index is called:
A)index of retailers
B)index of retail utilization
C)index of retail sales
D)index of retail saturation

Question

Quizplus · Accepted Answer

The index described in the scenario is measuring the level of retail saturation in a particular geographic area, meaning how much demand there is for retail compared to the amount of retail space available. Therefore, the best choice is option D - index of retail saturation.

Bath and Body Works Is a Retail Chain of Bath