Deck 9: Location and Site Selection

Question 1

Four factors are important in determining the size and shape of a primary service area (PSA).These include all of the following EXCEPT:

A)BPI
B)alternative shopping choices
C)intuition
D)drive-time analysis

Answer 1

A
The four important factors are: Alternative Shopping Choices,Barriers and Pockets,Drive-Time Analysis,and Intuition

Question 2

Which of the following sequences of the three-step location model is correct?

A)BPI,DMAs,Individual Site Analysis
B)DMAs,Individual Site Analysis,BPI
C)DMAs,BPI,Individual Site Analysis
D)Individual Site Analysis,DMAs,BPI

Answer 2

C
The elements of the three-step sequence are as follows: (1)DMAs or Designated Marketing Areas,(2)BPI or Buying Power Index,and (3)Individual Site Analysis

Question 3

Which two concepts receive primary consideration when determining store layout?

A)customer traffic and employee traffic
B)attractive décor and effective lighting
C)customer traffic and attractive décor
D)effective lighting and overall attractive atmosphere

Answer 3

A
When determining the store layout,it is important that two concepts receive primary consideration: customer traffic and employee traffic

Question 4

Two primary points must be considered when a franchisor develops expansion plans for a franchise.What are they?

A)distribution and number of existing franchises
B)overhead and distribution
C)overhead and franchisor's previous experience with expansion
D)number of existing franchises and franchisor's previous experience with expansion

Question 5

Which of the following types of businesses benefit from being located near competitors?

A)unique business
B)comparative business
C)competitive business
D)none of these types benefits from being located near competitors.

Question 6

One of the more interesting ratios for franchising is the Location Selection Ratio or Sales/Costs ratio.Which of the following ratios would be ranked the best?

A)¼
B)½
C)1
D)all of the above are desirable ratios

Question 7

Which of the following does Smoothie King founder Stephen Kuhnau credit as the reason for his success?

A)his education
B)the support of other entrepreneurs
C)the health problems he faced as a teenager
D)his previous business experience

Question 8

Adequate frontage is a necessity for most retail businesses.What amount is generally considered adequate?

A)50-100 feet
B)100-200 feet
C)200-400 feet
D)400 feet or more

Question 9

Which crucial factor would most likely mean the difference between success and failure for a potential franchise unit?

A)management practices
B)owner's knowledge and skill level
C)location
D)all of the above are equally important to the success or failure of the franchise.

Question 10

Which philosophy of expansion is,as a rule,the best method for franchisors?

A)the shotgun approach
B)the rifle shot approach
C)seeding
D)whichever method the franchisor deems appropriate for a their particular business