18 Questions
What is an advantage of a freestanding store location?
No competition around
What is another term for a business district?
Unplanned business centers
What is a characteristic of a Central Business District (CBD)?
High land rates and intense development
What is the definition of a shopping center?
A group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property
What is a characteristic of a mall?
Enclosed and climate controlled
Why will customers travel to a store's location?
Because the store's location will become a destination
What are the three types of shopping situations that consumers in retail's target market experience?
Convenience Shopping, Comparison Shopping, and Specialty Shopping
What is the primary concern of consumers in convenience shopping situations?
Minimizing their efforts to get the products or services they want
What motivates consumers in comparison shopping situations?
Seeking information and making a well-planned purchase decision
What characterizes consumers in specialty shopping situations?
They know what they want and will not accept a substitute
What two factors contribute to the uniqueness of a retail offering?
Location and Retail Strategy
What are two environmental issues that retailers need to consider?
Zoning and Building Codes, and Licensing Requirements
Why is a good location important for a retailer's success?
A good location can help a retailer succeed even if its strategic mix is mediocre, and a bad location can cause a retailer to fail even if its strategic mix is excellent.
What are three potential problems that arise when changing a store's location?
Loss of loyal customers and employees, the new location may not have the same characteristics as the old location, and store fixtures cannot be moved to the new location.
What is one type of retail location where there are no other outlets in the vicinity of the store?
Freestanding or Isolated store.
What is one factor that affects a store's location decision?
Size and characteristics of the market (population).
Why is location the least flexible element of a retailer's strategic mix?
Due to its fixed nature, the amount of investment, and the length of lease agreements.
What is another type of retail location besides freestanding or isolated stores?
Part of Business District/Centers (unplanned Business Districts).
Study Notes
Advantages of Freestanding Stores
- No competition around the store
- Low rent
- Better visibility from the road
- Easy parking
- Lower property cost
Business Districts
- A place of commerce in a city that developed historically as the center of trade and commerce
- Can be referred to as unplanned business centers
- Central Business District (CBD) is the main center of commerce and trade in the city
- Characterized by high land rates and intense development
Shopping Centers (Planned Shopping Centers)
- A group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property
- Basic configuration: Mall or Strip center
- Mall: typically enclosed and climate-controlled with a walkway in front of the stores
- Strip center: a row of stores with parking provided in the front of the stores
Other Location Opportunities
- Airports
- Temporary Locations
- Resorts
- Store within a store
- Merchandise Kiosks
Importance of Retail Location Decision
- One of the most important factors customers consider when choosing a store
- A bad location can cause a retailer to fail, even with a good strategic mix
- A good location can help a retailer succeed, even with a mediocre strategic mix
- Store location is the least flexible element of a retailer's strategic mix
Factors Affecting Location
- Size and characteristics of market (population)
- Level of competition
- Access to transportation
- Parking space availability
- Attributes of nearby stores
- Property costs
- Length of agreement
- Population trends
- Legal restrictions
Basic Types of Locations
- Freestanding/Isolated store
- Part of Business District/Centers (unplanned Business Districts)
Types of Shopping Situations
- Convenience Shopping: primary concern is minimizing effort to get products or services
- Comparison Shopping: purchase decision is more important, seeking information and willing to spend effort planning and making a purchase decision
- Specialty Shopping: know what they want, will not accept a substitute, and will pay a premium to get exactly what they want
Learn about the importance of retail location decisions and how it affects the success of a store. Understand the factors to consider when choosing a store location and how it can impact customer choices.
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