Question 1

Which of the following is NOT true regarding a neighborhood business district (NBD)?

Accepted Answer

A)  It is located at a major artery of a residential area. 
B)  It is developed around a major department store. 
C)  Its major retailer is either a supermarket or a variety store. 
D)  It is developed to satisfy the convenience-oriented shopping needs of a neighborhood. 
E)  It generally contains several small stores. 
A)  It is located at a major artery of a residential area. 
B)  It is developed around a major department store. 
C)  Its major retailer is either a supermarket or a variety store. 
D)  It is developed to satisfy the convenience-oriented shopping needs of a neighborhood. 
E)  It generally contains several small stores.

Question 2

A _____ business district is smaller than a central business district (CBD)and revolves around at least one department or variety store at a major street intersection.

Accepted Answer

A)  secondary 
B)  substandard 
C)  community 
D)  suburban 
E)  neighborhood 
A)  secondary 
B)  substandard 
C)  community 
D)  suburban 
E)  neighborhood

Question 3

As the distance between competing stores increases,the stores trading areas will decrease.

Accepted Answer

A) True 
 B)False

Question 4

A neighborhood shopping center typically has over 500,000 square feet in gross leaseable space.

Accepted Answer

A) True 
 B)False

Question 5

A secondary business district (SBD)is a shopping area that evolves to satisfy the convenience-oriented shopping needs of the trading area; such locations usually have a supermarket as their anchor store.

Accepted Answer

A) True 
 B)False

Question 6

A trading area is the geographic area from which a retailer,group of retailers,or community draws its customers.

Accepted Answer

A) True 
 B)False

Question 7

Customers normally avoid heavily congested shopping areas and shop elsewhere in order to minimize driving time and other difficulties.

Accepted Answer

A) True 
 B)False

Question 8

Explain why a retailer should be concerned with market segmentation and identifying a target market.Define and discuss the three criteria that should be met to reach a target market.

Accepted Answer

Market segmentation is the method retail

Question 9

Identify the first step in the retail location decision.

Accepted Answer

A)  Evaluation of the trading area's demand and supply density. 
B)  Identification of the most attractive markets in which to operate. 
C)  Evaluation of capital constraints facing the retailer. 
D)  Evaluation of the trading area's supply related factors. 
E)  Identification of the trading areas that should be ignored. 
A)  Evaluation of the trading area's demand and supply density. 
B)  Identification of the most attractive markets in which to operate. 
C)  Evaluation of capital constraints facing the retailer. 
D)  Evaluation of the trading area's supply related factors. 
E)  Identification of the trading areas that should be ignored.

Question 10

Which of the following is a store-based retail format?

Accepted Answer

A)  Street peddling 
B)  Automated merchandising systems 
C)  Interactive television 
D)  A shopping mall 
E)  The Internet 
A)  Street peddling 
B)  Automated merchandising systems 
C)  Interactive television 
D)  A shopping mall 
E)  The Internet

Question 11

The final step in site selection is:

Accepted Answer

A)  assessing the neighboring stores. 
B)  obtaining financing. 
C)  construction of a pro forma return on asset model for each possible site. 
D)  conducting an analysis of demand density. 
E)  conducting an analysis of supply density. 
A)  assessing the neighboring stores. 
B)  obtaining financing. 
C)  construction of a pro forma return on asset model for each possible site. 
D)  conducting an analysis of demand density. 
E)  conducting an analysis of supply density.

Question 12

Which of the following is NOT a major component used by retailers to determine a market's demand potential?

Accepted Answer

A)  Population characteristics 
B)  Buyer behavior characteristics 
C)  Household income 
D)  Population density 
E)  Level of retail competition 
A)  Population characteristics 
B)  Buyer behavior characteristics 
C)  Household income 
D)  Population density 
E)  Level of retail competition

Question 13

Discuss the concepts of over- and understoring and describe their relationship to the Index of Retail Saturation (IRS).

Accepted Answer

When a market has too few stores to sati

Question 14

Retail gravitational theory is less useful in defining trading areas for metropolitan areas than in rural areas.

Accepted Answer

A) True 
 B)False

Question 15

If average store profitability is high in a trading area,then the trading area is most likely to be:

Accepted Answer

A)  understored. 
B)  declining. 
C)  overstored. 
D)  undersaturated. 
E)  hypercompetitive. 
A)  understored. 
B)  declining. 
C)  overstored. 
D)  undersaturated. 
E)  hypercompetitive.

Question 16

A GIS can help develop an optimal mix of merchandise,but is not useful in site analysis.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is NOT an example of a Buyer Behavior Characteristic?

Accepted Answer

A)  Consumer lifestyle. 
B)  Store loyalty. 
C)  Geographic conditions. 
D)  Climatic conditions. 
E)  Consumer education. 
A)  Consumer lifestyle. 
B)  Store loyalty. 
C)  Geographic conditions. 
D)  Climatic conditions. 
E)  Consumer education.

Question 18

In terms of location,retailers can be classified as store-based and nonstore-based.

Accepted Answer

A) True 
 B)False

Question 19

For purposes of evaluating sites,the_____ is not relevant.

Accepted Answer

A)  Expected net profit margin 
B)  Expected annual sales 
C)  Expected market share 
D)  Expected return on assets 
E)  Expected return on equity 
A)  Expected net profit margin 
B)  Expected annual sales 
C)  Expected market share 
D)  Expected return on assets 
E)  Expected return on equity

Question 20

Shopping centers and malls account for one-half of all retail sales,excluding automotive,in the United States.

Accepted Answer

A) True 
 B)False

Which of the following is NOT true regarding a neighborhood business district (NBD)?

A _____ business district is smaller than a central business district (CBD)and revolves around at least one department or variety store at a major street intersection.

As the distance between competing stores increases,the stores trading areas will decrease.

A neighborhood shopping center typically has over 500,000 square feet in gross leaseable space.

A secondary business district (SBD)is a shopping area that evolves to satisfy the convenience-oriented shopping needs of the trading area; such locations usually have a supermarket as their anchor store.

A trading area is the geographic area from which a retailer,group of retailers,or community draws its customers.

Customers normally avoid heavily congested shopping areas and shop elsewhere in order to minimize driving time and other difficulties.

Explain why a retailer should be concerned with market segmentation and identifying a target market.Define and discuss the three criteria that should be met to reach a target market.

Identify the first step in the retail location decision.

Which of the following is a store-based retail format?

The final step in site selection is:

Which of the following is NOT a major component used by retailers to determine a market's demand potential?

Discuss the concepts of over- and understoring and describe their relationship to the Index of Retail Saturation (IRS).

Retail gravitational theory is less useful in defining trading areas for metropolitan areas than in rural areas.

If average store profitability is high in a trading area,then the trading area is most likely to be:

A GIS can help develop an optimal mix of merchandise,but is not useful in site analysis.

Which of the following is NOT an example of a Buyer Behavior Characteristic?

In terms of location,retailers can be classified as store-based and nonstore-based.

For purposes of evaluating sites,the_____ is not relevant.

Shopping centers and malls account for one-half of all retail sales,excluding automotive,in the United States.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 7: Market Selection and Retail Location Analysis

Which of the following is NOT true regarding a neighborhood business district (NBD)?

A _____ business district is smaller than a central business district (CBD)and revolves around at least one department or variety store at a major street intersection.

As the distance between competing stores increases,the stores trading areas will decrease.

A neighborhood shopping center typically has over 500,000 square feet in gross leaseable space.

A secondary business district (SBD)is a shopping area that evolves to satisfy the convenience-oriented shopping needs of the trading area; such locations usually have a supermarket as their anchor store.

A trading area is the geographic area from which a retailer,group of retailers,or community draws its customers.

Customers normally avoid heavily congested shopping areas and shop elsewhere in order to minimize driving time and other difficulties.

Explain why a retailer should be concerned with market segmentation and identifying a target market.Define and discuss the three criteria that should be met to reach a target market.

Identify the first step in the retail location decision.

Which of the following is a store-based retail format?

The final step in site selection is:

Which of the following is NOT a major component used by retailers to determine a market's demand potential?

Discuss the concepts of over- and understoring and describe their relationship to the Index of Retail Saturation (IRS).

Retail gravitational theory is less useful in defining trading areas for metropolitan areas than in rural areas.

If average store profitability is high in a trading area,then the trading area is most likely to be:

A GIS can help develop an optimal mix of merchandise,but is not useful in site analysis.

Which of the following is NOT an example of a Buyer Behavior Characteristic?

In terms of location,retailers can be classified as store-based and nonstore-based.

For purposes of evaluating sites,the_____ is not relevant.

Shopping centers and malls account for one-half of all retail sales,excluding automotive,in the United States.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters