Question 1

The oft-quoted business mantra, "product, place, presentation," is broadly accepted as critical for retail stores.

Accepted Answer

The correct mantra often cited in business, especially in marketing, is "product, price, place, promotion," known as the four Ps of marketing.

Question 2

Wholesale businesses face many of the same options and criteria as manufacturers, although with more constraints on their operations.

Accepted Answer

The answer of Wholesale businesses face many of the same...

Question 3

For locating distribution centers, you can use a ________ method. This approach calculates the best cost location for a single distribution center serving multiple outlets, whether company retail locations or customer sites.
A) Center-of-gravity
B) Center-of-rotation
C) Center-of-importance
D) Center-of-seriousness
E) None of the above

Accepted Answer

The center-of-gravity method calculates the optimal location for a distribution center based on the location and demand of multiple outlets. It takes into account the volume of goods being shipped, the distance to each outlet, and transportation costs. This method helps to minimize total distribution costs while maximizing efficiency.

Question 4

What's important to a specialty retailer at a brick-and-mortar location will be the same for a service business.

Accepted Answer

While both types of businesses may share some similarities in terms of customer service and location, the priorities and goals of a specialty retailer selling tangible products will differ from those of a service business. For example, the retailer may focus on inventory management and product displays, while the service business may prioritize staff training and scheduling to ensure timely and quality service delivery.

Question 5

One consideration for home business is ________, the portion of your home used for business versus your living area.
A) Space percentage
B) Room percentage
C) Space proportion
D) Gap percentage
E) Space fraction

Accepted Answer

"Space percentage" accurately describes the consideration of how much of your home will be dedicated to your business and how much will remain your living area. None of the other choices accurately describe this consideration.

Question 6

Which of the following is not considered using the center-of-gravity approach?
A) The location of the destinations
B) How much product will be shipped to them
C) The frequency of delivery
D) The cost of delivery
E) The per-unit cost of the product

Accepted Answer

The center-of-gravity approach considers the geographic location of destinations, how much product will be shipped to them, the frequency of delivery, and the cost of delivery. The per-unit cost of the product is not considered in this approach.

Question 7

For manufacturing, warehousing, and distribution firms, key considerations include ________.
A) Capacity for efficient movement of materials, equipment, and people
B) Flexibility to adapt to changing business requirements
C) Loading docks and vehicle access for deliveries and outbound shipments
D) Environment conducive to work requirements
E) All of the above

Accepted Answer

All of the listed considerations are important for manufacturing, warehousing, and distribution firms. Capacity for efficient movement of materials, equipment, and people is necessary to ensure smooth operations, while flexibility is needed to adapt to changing business requirements. Loading docks and vehicle access are critical for receiving and shipping goods, and the environment needs to be conducive to work requirements to promote productivity and safety.

Question 8

A decidedly more low-tech approach to assessing location is to collect ________ information via the U.S. Census Bureau to create location options for consideration.
A) Demographic
B) Psychographic
C) Geographic
D) Competitive
E) All of the above

Accepted Answer

The answer of A decidedly more low-tech approach to assessing...

Question 9

A critical success factor on the country selection level is site size and cost.

Accepted Answer

The answer of A critical success factor on the country...

Question 10

Retail facilities must meet all of the following business requirements except ________.
A) Appropriate selling area and configuration of that space
B) Space for offices, storage, restrooms, deliveries, and other special needs
C) Signage for rules/regulations
D) Parking that is adequate for the anticipated customer volume
E) Private area for female customers to attend to children

Accepted Answer

While all of the other options are necessary for a retail facility to function properly, the requirement for a private area for female customers to attend to children is not a universal requirement and could depend on the type of retail facility and its target market.

Question 11

Traffic generators are complementary businesses that attract customer traffic to the retailer's area, and can significantly increase revenue generation.

Accepted Answer

Traffic generators such as restaurants, movie theaters, and amusement parks can attract potential customers to the retailer's area and potentially increase sales.

Question 12

Changes to adapt a leased building for a particular business are called ________.
A) Leasehold improvements
B) Leasehold developments
C) Building improvement funds
D) Client developments
E) Expensive

Accepted Answer

Leasehold improvements refer to changes made to a leased property to suit the needs of the tenant's business. These improvements are typically paid for by the tenant, who may negotiate for a tenant improvement allowance or build-out period with the landlord as part of the lease agreement. Other options listed, such as leasehold developments and building improvement funds, are not commonly used terms in this context, while client developments and expensive are not accurate descriptions of the process.

Question 13

Visibility is one of the key factors in deciding upon a location.

Accepted Answer

Visibility refers to the ability of a business or location to be easily seen and noticed by potential customers or visitors. It is a key factor in the success of a business as it can attract more foot traffic and increase brand awareness. Therefore, it is important to consider visibility when choosing a location for a business.

Question 14

A firm wishing to convey an upscale, high-end image will be better served by locating in an elegant suite in a prestigious office building than in a down-scale strip mall outside of town.

Accepted Answer

The location and appearance of a firm can certainly contribute to the image and perception that customers or clients have of the business. A prestigious office building can convey a sense of professionalism, success, and luxury to clients, which reinforces the image of an upscale, high-end business. In contrast, a strip mall that looks rundown, cheap, and undesirable may not be the best choice for a firm that wants to project an aspirational or luxurious image.

Question 15

In most cases, parking is required for all of the following except ________.
A) Commercial vehicles
B) Employees
C) Visitors or customers
D) Handicapped
E) VIPs

Accepted Answer

Parking requirements typically include provisions for commercial vehicles, employees, visitors or customers, and handicapped individuals to ensure accessibility and convenience. VIP parking is not a standard requirement in most cases, as it is often a preferential treatment rather than a necessity.

Question 16

If a product is made through a continuous process, which layout is likely to be best?
A) Product layout
B) Process layout
C) Fixed-position layout
D) All of the above
E) None of the above

Accepted Answer

A product layout is designed for a continuous process where the product is produced in a fixed sequence of operations. The layout is optimized for mass production with each operation being performed by specific equipment or machinery in a sequential manner. This layout allows for an efficient and streamlined process, minimizing the need for transportation and reducing production time and costs. Thus, a product layout would be the best choice for a product made through a continuous process.

Question 17

Distribution cost efficiencies can save money and be a competitive advantage.

Accepted Answer

When a company has efficient distribution systems, it can save money on transportation, storage, and handling costs. This can help the company offer lower prices to customers or improve profit margins. Additionally, efficient distribution can improve customer satisfaction with faster and more reliable product delivery, which can strengthen the company's competitive position.

Question 18

As a retailer, you will have to concentrate on the drawing power of your location, the match between your target market and the demographics of the customer-drawing area, and the competitive environment.

Accepted Answer

This is true because all of these factors are important considerations for a retailer in order to attract and retain customers and stay competitive in the market.

Question 19

Manufacturing facilities have multiple-location-criteria considerations that are primarily centered on customer service and destination.

Accepted Answer

Manufacturing facilities consider a wide range of criteria beyond customer service and destination, including cost of production, availability of skilled labor, supply chain logistics, regulatory environment, and access to raw materials.

Question 20

________ is done by using cost-volume analysis.
A) Location breakeven analysis
B) Location profit analysis
C) Location competition analysis
D) Location traffic analysis
E) Location customer analysis

Accepted Answer

Cost-volume analysis is used to determine the point at which total costs equal total revenue, or in other words, the point of breakeven. Therefore, the answer is Location breakeven analysis.

Quiz 18: Location, Facilities, and Layout

The oft-quoted business mantra, "product, place, presentation," is broadly accepted as critical for retail stores.

Wholesale businesses face many of the same options and criteria as manufacturers, although with more constraints on their operations.

For locating distribution centers, you can use a ________ method. This approach calculates the best cost location for a single distribution center serving multiple outlets, whether company retail locations or customer sites.

What's important to a specialty retailer at a brick-and-mortar location will be the same for a service business.

One consideration for home business is ________, the portion of your home used for business versus your living area.

Which of the following is not considered using the center-of-gravity approach?

For manufacturing, warehousing, and distribution firms, key considerations include ________.

A decidedly more low-tech approach to assessing location is to collect ________ information via the U.S. Census Bureau to create location options for consideration.

A critical success factor on the country selection level is site size and cost.

Retail facilities must meet all of the following business requirements except ________.

Traffic generators are complementary businesses that attract customer traffic to the retailer's area, and can significantly increase revenue generation.

Changes to adapt a leased building for a particular business are called ________.

Visibility is one of the key factors in deciding upon a location.

A firm wishing to convey an upscale, high-end image will be better served by locating in an elegant suite in a prestigious office building than in a down-scale strip mall outside of town.

In most cases, parking is required for all of the following except ________.

If a product is made through a continuous process, which layout is likely to be best?

Distribution cost efficiencies can save money and be a competitive advantage.

As a retailer, you will have to concentrate on the drawing power of your location, the match between your target market and the demographics of the customer-drawing area, and the competitive environment.

Manufacturing facilities have multiple-location-criteria considerations that are primarily centered on customer service and destination.

________ is done by using cost-volume analysis.