Retail Location Planning Quiz and Flashcards

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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?

A group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property Signup and view all the answers

What is a characteristic of a mall?

Enclosed and climate controlled Signup and view all the answers

Why will customers travel to a store's location?

Because the store's location will become a destination Signup and view all the answers

What are the three types of shopping situations that consumers in retail's target market experience?

Convenience Shopping, Comparison Shopping, and Specialty Shopping Signup and view all the answers

What is the primary concern of consumers in convenience shopping situations?

Minimizing their efforts to get the products or services they want Signup and view all the answers

What motivates consumers in comparison shopping situations?

Seeking information and making a well-planned purchase decision Signup and view all the answers

What characterizes consumers in specialty shopping situations?

They know what they want and will not accept a substitute Signup and view all the answers

What two factors contribute to the uniqueness of a retail offering?

Location and Retail Strategy Signup and view all the answers

What are two environmental issues that retailers need to consider?

Zoning and Building Codes, and Licensing Requirements Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

What is one type of retail location where there are no other outlets in the vicinity of the store?

Freestanding or Isolated store. Signup and view all the answers

What is one factor that affects a store's location decision?

Size and characteristics of the market (population). Signup and view all the answers

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. Signup and view all the answers

What is another type of retail location besides freestanding or isolated stores?

Part of Business District/Centers (unplanned Business Districts). Signup and view all the answers

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.

Retail Store Location Planning

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