Question 1

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:

Accepted Answer

An understored trade area is an area that has too few stores selling a specific good or service to satisfy the needs of the population. The other choices are incorrect as they do not accurately describe this situation.

Question 2

Keepsake Quilting,a large specialty retailer specializing in quilting accessories,fabrics and classes is shopped by quilting enthusiasts in Manitoba.For Keepsake Quilting,Manitoba describes its:

Accepted Answer

Keepsake Quilting's trade area is the geographic area where its customers come from, and in this case, it is Manitoba. Therefore, option E is the correct answer. A, B, C, and D are not the best choices because they do not accurately describe the geography or customer demographic of Keepsake Quilting in Manitoba.

Question 3

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

Accepted Answer

The three types of shopping situations described are convenience, comparison, and specialty shopping. Among the listed options, only specialty shopping is closely related to the third type. Off-price shopping and advantage shopping do not fit the context of the question. Unique shopping and strategy shopping are not commonly used terms to categorize shopping situations, and are therefore less likely to be correct.

Question 4

Ingress/egress refers to:

Accepted Answer

Ingress/egress refers to the ease of entering and exiting a site's parking lot, typically used in the context of traffic flow and accessibility. It refers to the ability for vehicles or pedestrians to safely enter or exit a property without congestion or obstruction.

Question 5

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.

Accepted Answer

The owner of the store selling New Age music, aromatherapy candles and herbal supplements would be most interested in the lifestyle of the trade area population as it would help him determine whether the people living in the area are interested in the products he is selling. This would also help him in determining if his target market matches the population of the trade area. Factors like age, interests, and habits of the population would be useful in identifying potential customers for his store.

Question 6

Factors to consider in an accessibility analysis include:

Accepted Answer

An accessibility analysis should take into consideration all of these factors - ingress/egress, congestion, amount of parking facilities, and road pattern.

Question 7

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:

Accepted Answer

The president's strategy was to locate stores in areas with fewer retail options, which are understored trade areas, to meet the needs of people in small towns.

Question 8

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:

Accepted Answer

The answer of A trade area that offers customers a...

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:

Accepted Answer

A trade area is specifically defined as the geographic area surrounding a retail site that accounts for the majority of the store's sales and customers. Option A, a CMA (Census Metropolitan Area), is a broader geographic area used by Statistics Canada for statistical purposes. Option B, region, is a more general term that can refer to a larger geographic area. Option C, site, refers to the physical location of the retail store. Option D, target market, is a group of customers that the retailer is trying to appeal to through its marketing efforts, but it does not necessarily refer to a geographic area.

Question 10

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

Accepted Answer

Multiple locations allow for a larger base of customers to be reached and for resources and marketing efforts to be consolidated. This can lead to cost savings through bulk purchasing, centralized management, and efficient distribution, ultimately resulting in economies of scale. The other options may be helpful for retail success but do not directly relate to achieving economies of scale.

Question 11

Fashion/specialty centres are similar to lifestyle centres in terms of the clientele and the types of stores they attract.The difference is that fashion/specialty centres

Accepted Answer

Fashion/specialty centres are typically enclosed, which sets them apart from lifestyle centres that are often open-air. They are also usually larger than lifestyle centres, providing more space for a wider range of stores and activities.

Question 12

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.

Accepted Answer

The store would be most interested in the lifestyles of the trade area population to understand the demand for music-related products and services.

Question 13

Retailers targeting customers involved in convenience shopping,usually locate their stores close to where their customers are and make it easy for them to park,find what they want,and

Accepted Answer

The answer of Retailers targeting customers involved in convenience shopping,usually...

Question 14

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

Accepted Answer

When multiple furniture stores are located close together, it allows consumers to easily compare prices, styles, and quality of the products. This is known as comparison shopping.

Question 15

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:

Accepted Answer

The answer of Burger King seeks locations where their major...

Question 16

A high level of employment usually means higher:

Accepted Answer

A high level of employment means more people have jobs and thus have money to spend, leading to increased purchasing power.

Question 17

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

Accepted Answer

The fourth level of location decisions is the specific site, which refers to the exact spot where a business or organization will operate. This involves evaluating factors such as accessibility, visibility, parking, suitability, and competition.

Question 18

Hardee's fast food restaurant chain located its restaurants in small towns that the larger chains had ignored because they believed the market was too small to be profitable.Hardee's was the first fast-food operation in many small towns,and the chain was successful.Hardee's management looked for regions that were _____ in terms of fast-food establishments.

Accepted Answer

An understored trading area is one that has too few stores selling a specific good to satisfy the needs of the population.

Question 19

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

Accepted Answer

All of these factors (population growth, size of households, incomes, and education) would be considered when assessing demographic characteristics. Population growth helps to identify potential markets and areas of growth. Size of households can affect purchasing behavior and product marketing. Incomes can also affect purchasing behavior and the types of products that are sought after. Education can impact the demand for certain products or services and can also influence the purchasing power of a particular demographic. Therefore, all of these factors are important to consider when analyzing demographic characteristics.

Question 20

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?

Accepted Answer

Dale was considering the demographics of the local residents, including their average household incomes and education level, to assess their potential demand for the used record and CD shop.

Quiz 5: Retail Locations Strategytrade Area Decisions and Site Assessment