Deck 12: Small Business Marketing: Location

Question 1

Neighborhoods are typically comprised of people who are ______.

A) very similar
B) very different
C) a mixture of types of people
D) different in their religious beliefs

Answer 1

A

Question 2

Types of sites, accessibility, legal considerations, and economic factors are all issues to address when choosing ______.

A) a potential product
B) a potential advertising campaign
C) a potential management team
D) a potential business location

Answer 2

D

Question 3

Sandra visits the local farmer's market every Friday during the summer, where she picks up fresh produce that was grown by the same farmers who are there to sell the goods. The farmer's market where Sandra likes to shop illustrates what type of distribution channel?

A) direct
B) closed system
C) indirect
D) nonlinear

Answer 3

A

Question 4

A small business owner should begin the site selection process by asking which of the following questions?

A) What region would be best?
B) What state within the region would be best?
C) What city within that region would be best?
D) What specific site within that city will work for the business?

Question 5

Through a/an ______ distribution channel, products pass through various intermediaries before reaching the consumer.

A) direct
B) linear
C) indirect
D) nonlinear

Question 6

A database that distinguishes differing neighborhood types by accurate geodemographic segmentation is known as ______.

A) Neighborhood Type Inventory
B) Potential Rating Index for Zip Marketers
C) Geodemographic Database System
D) Neighborhood Segmentation Database

Question 7

You can do away with distribution intermediaries, but you cannot do away with their ______.

A) transportation
B) channel
C) profit
D) function

Question 8

Road patterns and condition, obstructive barriers, site visibility, traffic flow, and parking convenience are all questions to address when looking at ______ in site selection.

A) legal considerations
B) economic factors
C) type of site
D) accessibility

Question 9

Of the Four P's of the marketing, ______ is especially significant for business because an effective distribution system can make or save a small business.

A) Product
B) Place
C) Price
D) Promotion

Question 10

Which of the following represents clients who buy or sell specialized goods or seasonal products and do not take title to the goods sold?

A) agents
B) brokers
C) wholesalers
D) retailers

Question 11

Of the options listed, the most important decision that a small business owner makes is the choice of ______.

A) the hours to be open
B) the location of the business
C) the decor of the building
D) the paint color for the walls

Question 12

Wytt Foods Inc. buys food products in bulk from various producers and resells them to foodservice businesses across the region. Wytt Foods can best be described as a/an ______.

A) wholesaler
B) manufacturer
C) agent
D) retailer

Question 13

The United States is a collection of ______ markets rather than one big market.

A) local
B) regional
C) local and regional
D) national

Question 14

Which of the following questions is the last question that should be asked when determining the best location for a business?

A) What region would be best?
B) What state within the region would be best?
C) What city within that region would be best?
D) What specific site within that city will work for the business?

Question 15

The following criteria are essential to analyze when evaluating a potential ______ for a business: price and availability of land and water, the labor pool, access to customers, and proximity of suppliers.

A) target market
B) location
C) trademark
D) brand name

Question 16

______ cause the product to go directly from producers to consumers.

A) Direct channels
B) Indirect channels
C) Distribution channels
D) Streamline channels

Question 17

The use of two or more channels to distribute the same product to the same target market is referred to as ______.

A) direct channel distribution
B) indirect channel distribution
C) multipurpose distribution
D) dual distribution

Question 18

The series of intermediaries a product passes through when going from producer to supplier is known as ______.

A) direct channels
B) distribution channels
C) warehousing
D) shelf life

Question 19

An intermediary who brings buyers and sellers together and facilitates the exchange is known as a/an ______.

A) wholesaler
B) broker
C) agent
D) retailer

Question 20

The key word in evaluating a channel of distribution is ______.

A) location
B) plastics
C) competition
D) efficiency

Question 21

Which of the following locations should a small business owner choose when comparing locations for an upscale gift shop?

A) the central business district
B) the central manufacturing area
C) a small shopping center in an exclusive neighborhood
D) the one large shopping mall in a large town

Question 22

The central business district is usually the ______ section of town.

A) newest
B) most expensive
C) oldest
D) safest

Question 23

Disadvantages such as little parking availability, traffic congestion, older buildings, and neighborhood disparity are found in which location type?

A) central business districts
B) shopping centers
C) stand-alone locations
D) suburban areas

Question 24

Little competition, more parking, and less rent are advantages of which of the following location sites?

A) central business districts
B) shopping centers
C) stand-alone locations
D) suburban areas

Question 25

Occupancy costs, the cost of amenities, and all one-time costs and leasehold improvements are all questions to address when looking at ______ in site selection.

A) legal considerations
B) economic factors
C) type of site
D) accessibility

Question 26

For destination-oriented products such as health clubs, convenience stores, or wholesale clubs, what location type would work best?

A) incubator
B) stand-alone location
C) mall center
D) central business district

Question 27

According to the text, if the business is a health club, convenience store, or a wholesale club, which may be the best location site choice?

A) central business districts
B) shopping centers
C) stand-alone locations
D) suburban areas

Question 28

Service and retail businesses have three basic choices for types of locations; central business districts, shopping centers, and ______.

A) main street areas
B) manufacturing areas
C) suburban areas
D) stand-alone locations

Question 29

With service businesses that visit the customer such as plumbers, carpet cleaners, and landscapers, location is ______.

A) not as critical
B) just as critical
C) more critical
D) unimportant

Question 30

______ involves restoring old buildings or replacing them with new offices, retail shops, or housing.

A) Gentrification
B) Site selection
C) Diversification
D) Displacement

Question 31

Auto dealerships are often located close together because ______.

A) they can share lot expenses
B) they can share salespeople
C) it is easier for customers to comparison shop
D) they can keep close watch on the competition

Question 32

William has determined that he needs to expand parking at his bookstore, so he decides to purchase the empty lot across the street. This constitutes which site location consideration?

A) economic factors
B) type of site
C) legal considerations
D) accessibility

Question 33

Denver's Larimer Square and Chicago's Water Tower Place are examples of ______.

A) the gentrification process
B) urban blight
C) areas with high crime rates
D) areas with old, dilapidated buildings

Question 34

The inflexibility of store hours is a major disadvantage of which location type?

A) central business districts
B) shopping centers
C) stand-alone locations
D) suburban areas

Question 35

Robert is opening a new bar and grill, and he is currently negotiating with the city's liquor board to obtain a liquor license before he can open. This constitutes which site location consideration?

A) economic factors
B) type of site
C) legal considerations
D) accessibility

Question 36

A type of business location that exists to assist startups by providing lower than market rent and shared services and equipment is called a/an ______.

A) incubator
B) henhouse
C) hothouse
D) percolator

Question 37

Advantages such as heavy traffic due to the variety of products available, cost sharing, ample parking, and a lower crime rate are found in which location type?

A) central business districts
B) shopping centers
C) stand-alone locations
D) suburban areas

Question 38

The major advantage of an incubator is ______.

A) lower than market rent
B) professional assistance
C) networking
D) financing

Question 39

The number of ______ and ______ passing a site strongly affects its potential retail sales.

A) cars; people
B) tour busses; people
C) cars; tour busses
D) policemen; people

Question 40

A large retail store that attracts people to shop at malls is known as ______.

A) Walmart
B) an anchor store
C) the main attraction
D) the primary store

Question 41

If you sign a triple net lease, you are agreeing to pay a base monthly rent plus ______.

A) three times fair market value
B) an extra amount every three months
C) real estate taxes, insurance, and operating expenses of the building
D) nothing else

Question 42

Incubators can easily put a new businessperson in contact with other local businesses. This is known as ______.

A) professional assistance
B) factoring
C) networking
D) outsourcing

Question 43

A lease in which the tenant pays a base monthly rent plus real estate taxes and insurance on the building is referred to as a ______.

A) gross lease
B) net lease
C) net-net lease
D) triple-net lease

Question 44

Which of the following layouts encourages customers to browse?

A) free-flow layout
B) grid layout
C) loop layout
D) free-style layout

Question 45

The SLU Data Processing Center is located on university property, where it leases the location space for lower-than-market rent. The university also provides office supplies and equipment at a discounted rate. SLU is most likely situated in what type of business location?

A) incubator
B) stand-alone location
C) shopping center
D) central business district

Question 46

A way to arrange a manufacturing business by placing all comparable equipment together in the same area is a ______.

A) process layout
B) product layout
C) fixed layout
D) mobile layout

Question 47

Carla owns an upscale hat shop, and she recently moved her shop to the city's central business district. In contemplating the layout of the shop's interior, Carla has determined that she would like a layout that encourages browsing. Which layout style should she choose?

A) process layout
B) loop layout
C) free-flow layout
D) grid layout

Question 48

Scenario 12-1. Molli is beginning her new manufacturing business where she is producing computer desks. She has picked a site for her new business and is now concerned with the layout in order to provide a smooth flow for the work. Her competitive advantage has been identified as the quality of the desks that she will produce. Flexibility to change the design and low costs are also considerations in the profitability of the business.

-In Scenario 12-1, based on the above criteria, which of the following would be the best choice for the layout of Molli's manufacturing business?

A) process layout
B) loop layout
C) grid layout
D) product layout

Question 49

A lease that varies according to the amount of inflation in the economy is referred to as a/an ______.

A) percentage lease
B) escalation lease
C) gross lease
D) triple-net lease

Question 50

A long-term agreement to rent a building, equipment, or other assets is known as ______.

A) a lease
B) a rental contract
C) a legally liable contract
D) a business contract

Question 51

Chuck pays a lease for his centrally located software shop. He pays the same amount to lease the building each month, but his landlord covers the operating expenses such as taxes, insurance, and repairs. Chuck's lease can best be described as a ______.

A) gross lease
B) net lease
C) net-net lease
D) triple-net lease

Question 52

Changes that make a property more valuable, such as painting, adding shelves, or new lighting are known as ______.

A) leasehold improvements
B) capital improvements
C) asset improvements
D) deductible expenses

Question 53

A type of retail layout with a predominant aisle running through the store that quickly leads customers to their desired departments is known as ______.

A) free-flow layout
B) grid layout
C) loop layout
D) process layout

Question 54

Barbara works at a business location where she has a great deal of independence, enjoys very low overhead expenses, and has no commute time. Barbara's business is located at ______.

A) a shopping center
B) a central business district
C) a home office
D) an anchor store

Question 55

The biggest advantage of leasing is the ______ that is made available for other purposes.

A) time
B) cash
C) expenses
D) effort and energy

Question 56

How your location is laid out and designed is important because it affects the ______ and ______ of your business.

A) profit; loss
B) profit; expenses
C) image; productivity
D) activity; customer base

Question 57

Scenario 12-1. Molli is beginning her new manufacturing business where she is producing computer desks. She has picked a site for her new business and is now concerned with the layout in order to provide a smooth flow for the work. Her competitive advantage has been identified as the quality of the desks that she will produce. Flexibility to change the design and low costs are also considerations in the profitability of the business.

-In Scenario 12-1, Molli realizes that the market for furniture is constantly changing. One of the features she wants to ensure in her layout is flexibility so that the product can be changed to meet consumer demand. Which type of layout would enable her to do this?

A) process layout
B) loop layout
C) grid layout
D) product layout

Question 58

Auto assembly lines and textile mills where raw materials enter one end of the line and finished products exit the other are examples of which layout?

A) process layout
B) product layout
C) fixed layout
D) mobile layout

Question 59

A disadvantage of the ______ layout is that when equipment is grouped together, increased handling is needed to move the product from one station to another when more than one task is performed.

A) service
B) fixed
C) product
D) process

Question 60

Supermarkets and drugstores tend to use which of the following layouts because it suits customers who wish to shop the entire store by moving up and down alternate aisles?

A) free-flow layout
B) grid layout
C) loop layout
D) process layout

Question 61

Scenario 12-2. Kathy's Craft Cubby is beginning the process of deciding on a location. The craft store will sell small handmade wooden crafts by many local artisans. Kathy is excited about managing this new enterprise since she will be the primary supplier of the crafts that will be sold. She realizes that location is a very important consideration. Her crafts will range in the medium to expensive price range since they are high quality and unique. Kathy's claim is that there will never be a duplicate made of any of her creations.

-In Scenario 12-2, Kathy realizes much of her store traffic may need to come from anchor stores and that a visit to her shop may be secondary on her customers' lists. This would be which of the following location types?

A) central business district
B) shopping center
C) stand-alone location
D) franchise

Question 62

Scenario 12-2. Kathy's Craft Cubby is beginning the process of deciding on a location. The craft store will sell small handmade wooden crafts by many local artisans. Kathy is excited about managing this new enterprise since she will be the primary supplier of the crafts that will be sold. She realizes that location is a very important consideration. Her crafts will range in the medium to expensive price range since they are high quality and unique. Kathy's claim is that there will never be a duplicate made of any of her creations.

-In Scenario 12-2, Kathy is considering a ______ as a location. However, here parking would be difficult to find and very expensive along with a possible high crime rate.

A) central business district
B) shopping center
C) stand-alone location
D) franchise

Question 63

Neighborhoods tend to have residents that are very different.

Question 64

Selecting a location for a business is one of the most important decisions made by a small business owner.

Question 65

It is possible to eliminate the middleman intermediaries and the functions they perform.

Question 66

People will go out of their way to find a business.

Question 67

Scenario 12-1. Molli is beginning her new manufacturing business where she is producing computer desks. She has picked a site for her new business and is now concerned with the layout in order to provide a smooth flow for the work. Her competitive advantage has been identified as the quality of the desks that she will produce. Flexibility to change the design and low costs are also considerations in the profitability of the business.

-In Scenario 12-1, as with any small business owner, Molli needs to keep costs as low as possible. Which layout would enable her to decrease material handling costs?

A) process layout
B) loop layout
C) grid layout
D) product layout

Question 68

The choice for distribution channel becomes less significant when entering international markets.

Question 69

Scenario 12-2. Kathy's Craft Cubby is beginning the process of deciding on a location. The craft store will sell small handmade wooden crafts by many local artisans. Kathy is excited about managing this new enterprise since she will be the primary supplier of the crafts that will be sold. She realizes that location is a very important consideration. Her crafts will range in the medium to expensive price range since they are high quality and unique. Kathy's claim is that there will never be a duplicate made of any of her creations.

-In Scenario 12-2, Kathy feels that her competitive advantage will be very clear to her customers in a short time period. Her unique merchandise will soon draw in a loyal customer base. If this is true, which of the following locations may work for her?

A) central business district
B) shopping center
C) stand-alone location
D) franchise

Question 70

Adding intermediaries to the distribution channel usually increases the cost to the consumer.

Question 71

An intermediary who sells products to the ultimate consumer is referred to as a broker.

Question 72

Since the SCI is difficult to calculate, business consultants must be hired to figure the index and interpret the data.

Question 73

Scenario 12-1. Molli is beginning her new manufacturing business where she is producing computer desks. She has picked a site for her new business and is now concerned with the layout in order to provide a smooth flow for the work. Her competitive advantage has been identified as the quality of the desks that she will produce. Flexibility to change the design and low costs are also considerations in the profitability of the business.

-In Scenario 12-1, quality is a major advantage that Molli would like to work into her manufacturing design. The likelihood of building the desks with dents or scratches increases each time they are moved from one location to another. Which type of layout would minimize the number of times the desk pieces would be moved?

A) process layout
B) loop layout
C) fixed layout
D) product layout

Question 74

Intermediaries include agents, brokers, wholesalers, and retailers.

Question 75

Scenario 12-2. Kathy's Craft Cubby is beginning the process of deciding on a location. The craft store will sell small handmade wooden crafts by many local artisans. Kathy is excited about managing this new enterprise since she will be the primary supplier of the crafts that will be sold. She realizes that location is a very important consideration. Her crafts will range in the medium to expensive price range since they are high quality and unique. Kathy's claim is that there will never be a duplicate made of any of her creations.

-In Scenario 12-2, based upon the above information, which location type would work best for Kathy's business?

A) central business district
B) shopping center
C) stand-alone location
D) franchise

Question 76

Cities that provide stable housing markets and low crime rates also see the strongest economic growth.

Question 77

Scenario 12-1. Molli is beginning her new manufacturing business where she is producing computer desks. She has picked a site for her new business and is now concerned with the layout in order to provide a smooth flow for the work. Her competitive advantage has been identified as the quality of the desks that she will produce. Flexibility to change the design and low costs are also considerations in the profitability of the business.

-In Scenario 12-1, which type of layout is usually more expensive due to the specialized equipment that is needed, which also increases the likelihood of the whole line shutting down if there is a breakdown anywhere along the line?

A) process layout
B) loop layout
C) fixed layout
D) product layout

Question 78

Neither brokers nor agents take title, or ownership, to the goods sold.

Question 79

Scenario 12-2. Kathy's Craft Cubby is beginning the process of deciding on a location. The craft store will sell small handmade wooden crafts by many local artisans. Kathy is excited about managing this new enterprise since she will be the primary supplier of the crafts that will be sold. She realizes that location is a very important consideration. Her crafts will range in the medium to expensive price range since they are high quality and unique. Kathy's claim is that there will never be a duplicate made of any of her creations.

-In Scenario 12-2, Kathy would like to open her store during hours that are convenient for her. Owing to her personal life, having the store open in the evenings would be difficult. This would make which of the following locations difficult to use?

A) central business district
B) shopping center
C) stand-alone location
D) franchise

Question 80

The economic condition of a city, state, or region can be much different than the national economic condition.