Deck 5: Retail Locations Strategytrade Area Decisions and Site Assessment

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:

A) overpopulated trade area
B) overstored trade area
C) underutilized trade area
D) underpopulated trade area
E) understored trade area

Answer 1

E

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:

A) CMA
B) region
C) target market
D) site
E) trade area

Answer 2

E

Question 3

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

A) unique shopping
B) specialty shopping
C) advantage shopping
D) off-price shopping
E) strategy shopping

Answer 3

B

Question 4

Ingress/egress refers to:

A) the amount of crowding of either cars or people
B) the renewal and rebuilding of offices, housing, and retailers in deteriorating areas
C) ability to see the store and enter the parking lot safely
D) the ease of entering and exiting a site's parking lot
E) None of these

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.

A) the business climate
B) lifestyles of the trade area population
C) income and occupations of trade area population
D) size and composition of households in the trade area
E) the span of managerial control

Question 6

Factors to consider in an accessibility analysis include:

A) ingress/egress
B) congestion
C) amount of parking facilities
D) road pattern
E) All of these

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:

A) abundant trade areas
B) overstored trade areas
C) rural trade areas
D) understored trade areas
E) undersaturated trade areas

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:

A) competitively depleted
B) market developed
C) overstored
D) saturated
E) understored

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:

A) CMA
B) region
C) site
D) target market
E) trade area

Question 10

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

A) a saturated trade area
B) little competition
C) multiple locations
D) a sound business climate
E) supportive lifestyle demographics

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

A) are typically enclosed and are larger than most lifestyle centres
B) are shopping centres that consist mostly of manufacturers' outlet stores selling their own brands, supposedly at a discount
C) are typically between 3.7 and 46.5 square metres
D) are typically anchored by a supermarket or a drugstore
E) have a captive audience of well-to-do customers with lots of time on their hands

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.

A) the business climate
B) lifestyles of the trade area population
C) income and occupations of trade area population
D) size and composition of households in the trade area
E) the span of managerial control

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

A) locate promotional products
B) pay for their purchases
C) carry their purchases home
D) go about their other business
E) find impulse purchase items

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

A) specialty shop
B) comparison shop
C) convenience shop
D) destination shop
E) category shop

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:

A) competitive trade areas
B) overstored trade areas
C) saturated trade areas
D) understored trade areas
E) trade specific locations

Question 16

A high level of employment usually means higher:

A) competition
B) managerial control
C) purchasing power
D) taxes
E) retail saturation

Question 17

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

A) district
B) neighbourhood
C) specific site
D) CMA
E) province

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.

A) underpromoted
B) market-depleted
C) understored
D) unsatiated
E) underutilized

Question 19

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

A) Population growth
B) Size of households
C) Incomes
D) Education
E) All of these

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?

A) Business climate
B) Competition
C) Demographics
D) Economies of scale
E) Span of managerial control

Question 21

Why would a small retailer be interested in a kiosk?

A) A kiosk can offer more variety.
B) Kiosks provide better prices than the competition.
C) Shoppers prefer kiosks because it offers more space to shop avoiding the butt-brush effect.
D) They can be in prime mall locations.
E) There is a greater ability to access more customers than a traditional retail store.

Question 22

Which of the following statements about shopping malls is true?

A) Each retailer is responsible for the external environment outside its store.
B) Shopping malls have lower rents than central business districts.
C) Managers of shopping malls either want to have all specialty stores or all shopping goods stores-never a mix of the two.
D) The tenant mix in a shopping mall is not planned.
E) None of these statements about shopping malls are true.

Question 23

Where would you most likely find a fashion/specialty centre?

A) At highway interchanges
B) In high-income trade areas
C) In middle-class neighbourhoods
D) In small towns
E) Near discount store malls

Question 24

On his way home from work Barnard stopped at a shopping centre.He parked right in front of the dry cleaners where he could pick up his suit.He did not have to move his car because right next door was a gift shop where he could pick up a baby gift for his new niece.Conveniently enough,next door to that was a Mac's Milk where he purchased essentials like milk and cereal.Barnard was shopping in what type of shopping centre?

A) Central business district
B) Fashion/specialty centre
C) Mall
D) Power centre
E) Strip centre

Question 25

Hazelton Lanes in Toronto is a shopping centre composed of upscale apparel stores,gift shops,and many high-quality boutiques.It is an example of a/an:

A) convenience centre
B) fashion/specialty centre
C) outlet centre
D) off-price centre
E) price-oriented centre

Question 26

Shopping centres that focus on posh neighbourhoods,high-income areas with an outdoor,traditional streetscape can be considered as:

A) convenience centres
B) lifestyle centres
C) off-price centres
D) outlet centres
E) regional malls

Question 27

Even though planned shopping centres are an excellent site option for retailers,they have their disadvantages.Which of the following describes one of these disadvantages?

A) Each retailer is allowed to establish his/her own hours of operation
B) Competition is kept to a minimum because developers try not to have more than one specialty store for each product category
C) Rents in malls are often higher than at other locations
D) The developer has no control over exterior signs
E) All of these are disadvantages

Question 28

Which of the following best describes outlet centres?

A) They are generally near regional shopping centres
B) They are typically located near traditional regional malls
C) They may have a trade area of 100 kilometres or more
D) They never offer first-quality, full-line merchandise
E) They are usually enclosed

Question 29

As Sandra drove down Third Avenue,she noticed a group of adjacent stores.In the group,she saw a hair salon,a movie rental outlet,a pizza take-out,an optometrist,and a grocery store.All the stores shared a small parking lot,which abutted Second Street.This is an example of a:

A) mixed-use development
B) central business district
C) secondary trade area
D) strip centre
E) shopping mall

Question 30

Beatrice has been sporting a new diamond ring for some time and finally decided to shop for the wardrobe to match.She selected a shopping centre featuring upscale apparel shops and boutiques that was two hours away from her home,but according to Beatrice,it was "well worth the drive".Beatrice was probably going to shop in a/an:

A) convenience centre
B) fashion/specialty centre
C) outlet mall
D) power centre
E) regional mall

Question 31

Category specialists consumers will go to even if it is inconvenient are called

A) malls
B) dealers
C) unique merchandisers
D) destination stores
E) outlet centres

Question 32

The two major configurations of shopping centres are:

A) Downtown and suburban
B) Freestanding and enclosed
C) Outlet centres and theme centres
D) Staple and fashion
E) Strip centres and enclosed malls

Question 33

Why has the number of outlet centres declined?

A) Customer demand has declined
B) Customers can buy below full retail prices elsewhere
C) Customers are not satisfied with broken assortments and damaged products
D) Traditional retailing has become more price-competitive
E) All of these are true.

Question 34

The Homer Laughlin China Company in the U.S.state of West Virginia manufactures Fiesta china in a variety of colours.The factory has a store where they feature Fiesta products that are discounted or distressed.This type of centre is called a/an:

A) outlet centre
B) fashion/specialty centre
C) lifestyle centre
D) regional centre
E) demalling centre

Question 35

____________ usually involves demolishing a mall's small shops,scrapping its common space and food court,enlarging the sites once occupied by department stores,and adding more entrances to the parking lot.

A) Centre refurbishing
B) Demalling
C) Gentrification
D) Mall restructuring
E) Revitalization

Question 36

Cathy needed new jeans for the cool change in the weather.She decided to drive 20 minutes to a shopping centre.Once there,she had to search for a parking spot and walk to get to the stores,but when she got inside,she was warm and could leisurely walk to a variety of stores that carried the assortments she was seeking.Cathy was shopping in what type of shopping centre?

A) Central business district
B) Fashion/specialty centre
C) Mall
D) Power centre
E) Strip centre

Question 37

Which of the following retailers would most likely be found in a power centre?

A) Home Depot, Winners, and Best Buy
B) Starbucks Coffee and an independent retail bookstore
C) A liquor store, a convenience store, and a hair salon
D) A Shoppers Drug Mart, a Sears, and a Loblaws Grocery
E) An independent toy store, a women's apparel store, a dry cleaner, and a shoe store

Question 38

Which of the following statements about outlet centres is true?

A) It is predicted that the number of outlet centres will double over the next decade
B) Outlet centres are not found outside of the United States
C) Outlet centres have the no-frills look of warehouse stores
D) Outlet centres are often located some distance from regional shopping centres
E) Outlet centres sell only irregulars and overruns

Question 39

Why have suburban shopping centres grown between 1950 and 1980?

A) Downtown shopping centres became unkempt and crime ridden.
B) During this time, the population shifted to the suburbs.
C) Local governments mandated the growth to attract urbanites.
D) Municipal shopping became difficult after business hours.
E) Urban dwellers found it easier to shop in the suburbs.

Question 40

What are some of the challenges being faced by malls?

A) Malls are being challenged as competition from other retail locations (like power and lifestyle centres, etc.).
B) Shoppers are looking for "value" alternatives to stores found in malls.
C) The apparel business continues to be weak, causing some specialty stores to close.
D) Many malls are old and unappealing to shoppers.
E) All of these are challenges being faced by malls.

Question 41

Downtown locations usually offer:

A) entertainment and recreational activities
B) fewer shoppers than CBDs
C) full-line department stores
D) higher rents than traditional central business districts
E) supermarkets as anchors

Question 42

Tearing down old buildings or restoring them into new offices,housing developments,and retailers is an example of:

A) commercialization
B) gentrification
C) modernization
D) retail segmentation
E) trade area expansion

Question 43

When a city's old buildings have been modernized,cracked sidewalks have been replaced with wide brick walks,and new multipurpose office buildings have opened,this is an example of:

A) modernization
B) trade zone expansion
C) retail segmentation
D) gentrification
E) commercialization

Question 44

Mixed-use developments (MXDs)are popular with retailers because they:

A) bring additional shoppers to the store
B) have high security
C) offer low rent
D) offer short-term leasing agreements
E) provide free storage facilities to attract retailers

Question 45

Which of the following statements about downtown locations ("Main Streets")is true?

A) Main Streets tend to attract more people than central business districts
B) Main Streets typically offer more recreation and entertainment activities than CBDs
C) Occupancy costs are generally lower than the primary CBDs
D) As a group, retailers are avoiding Main Streets because it is such a new concept
E) All of these statements about Main Streets are true

Question 46

Why are airports such a profitable place to have a retail business?

A) Airport leases are lower
B) International tourists and local residents like to shop in Canadian airports
C) Waiting time allows people to spend money in airport shops
D) Sales per square foot are similar to shopping malls
E) Wages are lower than in cities

Question 47

What is a disadvantage of kiosks?

A) Sales are typically slower for kiosks.
B) They are frequently passed unnoticed by shoppers.
C) The mall tenants find kiosks to attract the wrong market segments.
D) The leases of kiosks are long and complicated making renting difficult.
E) Vendors can be evicted on short notice.

Question 48

Costco requires a tremendous amount of operating space; therefore,you are most likely to find them located in a/an:

A) neighbourhood centre
B) freestanding site
C) central business district
D) discount-anchored centre
E) off-price centre

Question 49

Where is a central business district located?

A) Airports, hotel lobbies and convention centres
B) Downtown business areas
C) Malls
D) Freestanding sites
E) Regional centres

Question 50

Which of the following statements about the central business district (CBD)is true?

A) CBDs have not experienced any gentrification
B) Like modern shopping centres, CBDs are typically well planned
C) The most successful CBDs for retail trade are those with a large number of residents living in the area
D) Shopping at CBDs is heaviest on weekends and at night
E) All of these statements about CBDs are true

Question 51

Why would a small retailer be interested in opening a shop in a mall kiosk?

A) Kiosks can be in prime locations.
B) A kiosk is relatively inexpensive compared to a regular store.
C) The short-term leases can be helpful if the business fails.
D) The retailer can offer seasonal merchandise and then close after the season.
E) All of these.

Question 52

Scott wants to open a holistic medicine shop with merchandise he claims will cure the common cold.He has $26,000 to invest in the business.How might a kiosk satisfy his needs?

A) He would be given a long-term lease.
B) Kiosks are located outside of freestanding sites.
C) Kiosks are much less expensive to rent than a store.
D) Mall managers typically have a no-compete clause in the contracts for store space rentals.
E) All of these describe reasons why he would like to begin his business in a kiosk.

Question 53

Why would a retailer choose not to expand to a central business district?

A) High security may be necessary
B) Limited parking
C) Business is slow in the evening
D) Shoppers are subjected to weather conditions
E) All of these

Question 54

___________ are shopping centres that include office towers,hotels,residential complexes,civic centres,and convention complexes on top of or attached to the shopping centre.

A) Multilevel marketing centres
B) Shopping malls
C) Convention centres
D) Mixed-use developments
E) Central business districts

Question 55

Joanne is opening a small grocery store in a downtown location in Vancouver.She will feature the typical non-perishable products,as well as fresh produce from local growers,and meats and fish from reputable suppliers.More than likely,Joanne will experience _______________ if she opens her business in a downtown area,as opposed to the suburbs.

A) little customer loyalty
B) higher profits
C) little shoplifting
D) higher lease rates
E) more competition

Question 56

The most serious disadvantage inherent in a freestanding site is:

A) high rent
B) lack of restrictions on merchandise sold
C) lack of synergy with other stores
D) loss of direct competition
E) loss of the ability to restrict hours of operation

Question 57

Why are retailers interested in locating in urban centres that have been through gentrification?

A) Developers aren't building as many malls as before
B) Multilevel malls are better for the environment
C) Retailers are finding carts and kiosks more efficient
D) Retailers are responding to the consumer trend of cocooning
E) The size of trade areas is shrinking

Question 58

What are the advantages gained from locating in a freestanding site?

A) Ample parking for customers
B) High rent, but visible location
C) Synergistic neighbours
D) Restrictive hours
E) All of these

Question 59

Water Street in St.John's houses many professional services,as well as specialty stores,apparel boutiques,restaurants,and gift shops.The street has a high volume of pedestrian traffic.Water Street can be considered as an example of a:

A) regional centre
B) central business district
C) power centre
D) neighbourhood business district
E) shopping centre

Question 60

The Marks Brothers are interested in opening a gigantic kitchen supply store featuring appliances as well as kitchen accessories.Space needed for this venture will exceed 80,000-100,000 square feet.The best alternative for them to locate would be a/an:

A) central business district
B) freestanding location
C) inner city location
D) mall
E) outlet centre

Question 61

In determining its trade zone areas,the owner of the local FTD florist,has identified the geographic area that is within a ten minute drive of the store as the store's:

A) tertiary zone
B) macro zone
C) micro zone
D) primary zone
E) secondary zone

Question 62

A ____________ is one in which the merchandise,selection,presentation,pricing,or other unique factor act as a magnet for customers.

A) shopping goods store
B) theme/festival centre
C) freestanding site
D) destination store
E) service centre

Question 63

Which of the following refers to the customer's ability to see the store and enter the parking lot safely?

A) Micro analysis
B) Natural barriers
C) Congestion
D) Road condition
E) Visibility

Question 64

In a macro analysis of a retail site location,the analyst should look at:

A) the general state of repair of roads in the primary trade area
B) the number of parking places
C) the ease of entering and exiting the store's parking lot
D) traffic flow in front of the store
E) all of these

Question 65

In an accessibility analysis of a retail location in Niagara Falls,which type of retailer would be most concerned about visibility?

A) A retailer who depended on tourist dollars for its success
B) A retailer of do-it-yourself merchandise
C) An established bookstore with a loyal following
D) A large nursery
E) A restaurant with a four-star rating

Question 66

Simon is planning to open a store for hockey enthusiasts,and has found an affordable location in a small strip centre off a major highway.What concerns should he have when he considers the accessibility of the site?

A) Road patterns
B) Artificial barriers, such as railroads tracks
C) Visibility
D) Traffic flow
E) All of these

Question 67

Best Buy,Toys "R" Us,and Home Depot are examples of:

A) category specialists
B) convenience stores
C) department stores
D) discount retailers
E) specialty retailers

Question 68

Which of the following factors was NOT identified by the text as defining a trade area?

A) Type of shopping area
B) Natural and physical barriers
C) Climate
D) Accessibility
E) Competition

Question 69

Clark needed shoes for his child who had extra wide feet.The only shoe store in town that carried them required a trip of three buses followed by a two block walk.To Clark,that shoe store is a:

A) magnet store
B) drawing store
C) destination store
D) discount retailer
E) symbiotic store

Question 70

Sherry is an armchair tourist inhibited from the real thing by a lousy job,but she makes up for it by indulging in foreign films.This Friday,she plans to drive into the city,about 20 kilometres away,to check out a shop specializing in foreign films.To Sherry,this shop is a:

A) symbiotic store
B) magnet store
C) primary zone store
D) shopping goods store
E) destination store

Question 71

Which of the following is an issue that affects the site decision?

A) Environmental issues
B) Zoning
C) Condition of building
D) Signs
E) All of these

Question 72

In terms of trade areas,the owner of Bubba's Bar and Grille defines his ___________ as the geographic area in which 65 percent of his customers live.

A) tertiary zone
B) macro zone
C) geographic zone
D) primary zone
E) secondary zone

Question 73

Which of the following retailers might customers consider as a destination store?

A) The only shoe store in town that will dye shoes to match dresses
B) The store in town with the lowest priced pharmaceuticals
C) The only store in town that carries CCM skates
D) The store in town with the largest selection of computer games
E) Any of these could be an example of a destination store

Question 74

When considering the trade area zone,Dillon should realize the ___________ for his grocery store includes all the people within a five minute drive of his store.

A) tertiary zone
B) macro zone
C) geographic zone
D) primary zone
E) secondary zone

Question 75

If Wally wanted to analyze accessibility factors in the immediate vicinity of a retail site for a pro-golf shop,he should evaluate:

A) how visible the site signs are from the roads surrounding the site
B) the general state of the roads near the site
C) the natural barriers in the community, such as rivers and mountains
D) whether there are enough on and off ramps for the highway that passes through the city
E) all of these

Question 76

Alison needed a new stirrup for her bridle and had to drive 30 kilometres to a Western Tack store to make the purchase.To Alison,the Western Tack store is an example of a:

A) destination store
B) drawing store
C) magnet store
D) country goods store
E) symbiotic store

Question 77

How would you classify products you would most likely find at 7-Eleven or Sobeys?

A) convenience goods
B) fabricated merchandise
C) grocery goods
D) specialty goods
E) unsought goods

Question 78

Bob finally got the nerve to tattoo his girlfriend's name on his arm.The tattoo parlour,Tattoo On You is located 10 kilometres away.For Bob,that parlour is an example of a/an:

A) shopping goods store
B) theme/festival centre
C) service centre
D) destination store
E) freestanding site

Question 79

Why are grocery stores located in strip centres?

A) Better hours of operation as opposed to regional shopping centres
B) The synergy between grocery and specialty shops is lucrative
C) Marketing costs can be shared within the strip centre
D) Supermarkets are price competitive, and strip centres have inexpensive rent
E) All of these

Question 80

When Lonnie took her kids to Walmart,she noticed a McDonald's restaurant near the entrance,which prompted her to stop for lunch.This restaurant is a great example of a/an:

A) power centre
B) store within a store
C) mixed-use development
D) freestanding site
E) merchandise kiosk