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Questions and Answers
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?
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What is a characteristic of a mall?
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Why will customers travel to a store's location?
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What are the three types of shopping situations that consumers in retail's target market experience?
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What is the primary concern of consumers in convenience shopping situations?
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What motivates consumers in comparison shopping situations?
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What characterizes consumers in specialty shopping situations?
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What two factors contribute to the uniqueness of a retail offering?
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What are two environmental issues that retailers need to consider?
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Why is a good location important for a retailer's success?
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What are three potential problems that arise when changing a store's location?
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What is one type of retail location where there are no other outlets in the vicinity of the store?
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What is one factor that affects a store's location decision?
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Why is location the least flexible element of a retailer's strategic mix?
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What is another type of retail location besides freestanding or isolated stores?
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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
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Description
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.