Retail Location Decisions Quiz

A destination store draws customers due to its better assortment and strong image, whereas a parasite store relies on nearby attractions for traffic.

By analyzing store records or conducting special research studies to assess customer patterns and demographics.

An analog model estimates potential sales by comparing a new store to similar existing ones, considering location and competition.

<p>Reilly's Law suggests that the size of a trading area is influenced by the distance between consumers and competing stores.</p> Signup and view all the answers

<p>Trend analysis helps predict future demographics and consumer behavior based on historical data and population trends.</p> Signup and view all the answers

<p>A regression model uses mathematical equations to correlate potential sales with independent variables at a location.</p> Signup and view all the answers

<p>Trading area models use statistical methods and data analysis to predict sales, while traditional methods rely on qualitative assessments.</p> Signup and view all the answers

<p>The gravity model posits that consumers prefer stores that are closer and more appealing compared to further competitors.</p> Signup and view all the answers

<p>Reilly's Law states that more people are attracted to larger cities due to a greater variety of stores, making travel time worthwhile.</p> Signup and view all the answers

<ol> <li>Distance is measured only by major thoroughfares. 2. Actual distance may not align with perceptions of distance.</li> </ol> Signup and view all the answers

<p>Huff's Law focuses on product assortment and travel time sensitivity, whereas Reilly's Law emphasizes city size and the density of stores.</p> Signup and view all the answers

<p>A diversified economic base with multiple nonrelated industries is preferred for stability.</p> Signup and view all the answers

<p>The types of locations are isolated stores, unplanned business districts, and planned shopping centers; the isolated store is a freestanding retail outlet.</p> Signup and view all the answers

<p>A fringe trading area refers to the outer region where the customer base overlaps between competing cities or communities.</p> Signup and view all the answers

<p>Understanding population characteristics helps businesses tailor their offerings and marketing strategies to meet the needs of the community.</p> Signup and view all the answers

<p>Travel time is a critical factor in Huff's Law, impacting the likelihood of shoppers choosing a store based on convenience and product assortment.</p> Signup and view all the answers

<p>The fringe trading area includes all remaining customers who are the most widely dispersed, beyond the primary and secondary trading areas.</p> Signup and view all the answers

<p>A destination store is a retail location that draws customers from a wide area due to its unique offerings or brand value, playing a crucial role in driving foot traffic and sales.</p> Signup and view all the answers

<p>Delineation methods help retailers outline trading areas by analyzing demographics, customer behavior, and geographical features, ensuring an accurate assessment of market potential.</p> Signup and view all the answers

<p>Reilly's Law focuses on the relationship between market share and distance from a store, while Huff's Law quantifies the probability of a customer selecting a store based on its attractiveness and distance.</p> Signup and view all the answers

<p>The primary trading area is crucial as it encompasses 50 to 80 percent of a store's customers, influencing marketing strategies and product offerings to meet local demand.</p> Signup and view all the answers

<p>Retailers should assess the characteristics of residents, existing competition, accessibility, and demographic trends when evaluating alternate trading areas.</p> Signup and view all the answers

<p>In the long run, a retail location influences overall business strategy, while in the short run, it affects specific elements like customer access and sales tactics.</p> Signup and view all the answers

<p>Assessing alternate sites within a chosen retail location type allows retailers to identify the most advantageous position, optimizing customer reach and operational efficiency.</p> Signup and view all the answers