Marketing 124 Chapters 9-13
When proposed and existing stores have a very high trading-area overlap,___. a) many additional customers will be attracted to the proposed store b) few additional customers will be attracted to the proposed store c) the proposed store will focus on geographic weaknesses in the existing store d) advertising will have to be assessed due to possible promotional waste
B
Which customers are generally NOT studied in trading-area analysis? a) outshoppers b) mail and telephone order shoppers c) fringe trading area customers d) parasites
B
Which planned shopping center type most commonly uses a mall layout with anchor stores at both ends? a) string b) regional shopping center c) community shopping center d) neighborhood shopping center
B
Which statement concerning destination stores is NOT correct? a) a destination store has a larger trading area than a traditional retailer b) the presence of a destination store in a major shopping center has no effect on the trading area of parasite stores c) Reilly's law does not reflect higher trading areas for a destination store d) Huff's law does not reflect higher trading areas for a destination store
B
An area that has just enough facilities to satisfy the needs of its population for a specified good is___. a) saturated b) overstored c) understored d) parasitic
saturated
The major assumptions of Reilly's law are that two competing areas are equally accessible from a major road and that____. a) each city has an equal population b) each city is equally distant from shoppers at the point of indifference c) retailers in the two cities are equally effective d) customers are willing to travel for lower prices
C
The most important trading area for a retailer to study is the____. a) fringe trading area b) secondary trading area c) primary trading area d) trading area overlap
C
The optimum site for a particular store is called____. a) the retail balance gradient b) the planned shopping center c) the one hundred percent location d) affinity
C
The point of indifference between two cities or communities can be studied___. a) based on economic base characteristics b) using the index of retail saturation c) using census data d) based on the buying power index
C
The store location of a coffee shop in a hotel lobby can best be described as___. a) overstored b) understored c) parasite d) saturated
C
The trading-area segment from which a retailer draws customers from the longest distances is the ____ trading area. a) secondary b) satellite c) fringe d) primary
C
There are three shopping locations with 300, 500, and 1000 square feet of space allocated to lighting accessories. A group of potential customers lives 5 minutes from the first location, 10 minutes from the second location, and 15 minutes from the third location. The retailer estimates the effect of travel time to be 2. The probability of consumers shopping at location 2 is___. a) 17 b) 21 c) 23 d) 42
C
Two cities have populations of 10,000 and 160,000. Based on Reilly's law, the point of indifference is 40 miles from the larger city. What is the total distance between each city? a) 40 miles b) 45 miles c) 50 miles d) 60 miles
C
Which computer-based site-selection model generally includes the largest number of variables? a) analog b) gravity c) regression d) interactive
C
Which of the following is NOT a disadvantage associated with the use of TIGER maps? a) Its Web site can be cumbersome to use b) Service on the TIGER site may be slow c) the maps cannot be tailored to reflect physical attributes of US areas d) the maps do not include retail facilities, other commercial entities, population characteristics, and so on
C
Which of the following is NOT an advantage of corner influence? a) greater pedestrian and vehicular traffic b) ability to reduce congestion due to multiple entrances and exits c) lower retail costs due to better leasing terms d) increased show-window display area
C
Which of the following is the best economic base? a) affluent consumers b) single, but growing industry c) diversified employment d) young, educated consumers
C
Which of the following retailers is most likely to be a parasite in a shopping center? a) high-fidelity specialty retailer b) men's shoe store c) snack bar d) department store
C
Which planned shopping center focuses its merchandise mix on convenience goods? a) regional shopping center b) community shopping center c) neighborhood shopping center d) string
C
Which type of store does NOT have its own trading area? a) unsaturated b) saturated c) parasite d) destination
C
The most important disadvantage to the use of the American COmmunity Survey data in trading area analysis is___. a) the substantial cost d) use of projections c) lack of timeliness d) use of county based vs. narrower geographic areas
D
The most widely dispersed group of customers can be found in which trading area segment? a) trading area overlap b) secondary trading area c) primary trading area d) fringe trading area
D
The optimal type of economic base is a ___ economic base. a) specialized b) commercial c) government d) diversified
D
The primary trading area generally encompasses what percent of a store's customers? a) 5 to 10 b) 10 to 25 c) 25 to 50 d) 50 to 80
D
The traditional means of trading area delineation for a new store is____. a) Huff's model b) Gautschi's model c) license-plate analysis d) Reilly's law of retail gravitation
D
A major advantage of the Census of Population for use by retailers in trading-area anaylsis is___. a) the small size of census tracts and blocks b) its timeliness c) its projections of population, retail sales, and income d) its economic base analysis
A
A major disadvantage to an isolated store location is that___. a) costs such as outside lighting and security cannot be shared b) rental costs are high c) leases can restrict store operations d) neighboring retailers can cause an overstored environment
A
A trading area can best be defined as___. a) the geographic area containing the customers of a particular retailer or group of retailers for specific goods and services b) those competitive stores that interchange customers c) a specific cluster of similar stores d) stores that are located in a free-trade zone
A
A type of shopping center with a large proportion of destination stores is the___. a) power center b) neighborhood shopping center c) central business district d) regional shopping center
A
An area with a relatively large number of consumers per square foot of available store space is___. a) understored b) saturated c) overstored d) oversaturated
A
In what type of location does a retailer have no adjacent stores to share or generate traffic? a) isolated store b) business district c) strip d) shopping center
A
Planned shopping centers are characterized by___. a) central ownership or management and balanced tenancy b) a high concentration of office buildings and retail stores c) to adjacent retailers d) low rental costs
A
Reilly's law of retail gravitation can be improved through the use of___. a) perceived travel time b) distances on major thoroughfares c) convenience in driving d) distance on different types of roads
A
Retailers are often unable to earn an adequate return on investment in which type of location? a) overstored b) saturated c) understored d) zone of indifference
A
Retailers seeking to study the population characteristics of small trading areas should utilize___. a) the census of population b) the american community survey c) editor and publisher market guide d) survey of buying power
A
The concept stating that the type and number of stores within any planned center should complement each other as to the quality and variety of their product offerings is____. a) balanced tenancy b) occupancy certainty c) retail balance d) the one hundred percent location
A
The determination of trading-area overlap is most important for which retailer? a) chain b) supermarket c) independent d) department store
A
The hub of retailing in a city is considered to be the____. a) central business district b) neighborhood business district c) secondary business district d) string
A
The lambda value in Huff's law is used to____. a) reflect the purpose of the trip and the type of good/service sought b) measure sales tax differentials between adjacent counties c) study actual and perceived travel times d) measure road conditions
A
The major refinement in Huff's law versus Reilly's law is Huff's use of___. a) a point of indifference b) sensitivity of the kind of shoppings to travel time c) average purchase made by consumers d) traffic counts in different locations
A
The most common form of planned shopping center is the___. a) neighborhood shopping center b) regional shopping center c) community shopping center d) string
A
The most quantitative type of computerized trading analysis is____. a) the regression model b) the analog model c) the gravity model d) license plate analysis
A
The primary trading area can be delineated in Huff's law of shopper attraction by studying the ___. a) probability of consumers shopping at a location b) point of indifference between two communities c) average purchase made by consumers d) traffic counts in different locations
A
The trading area that generally encompasses the greatest geographic area (in terms of square miles) is the___. a) fringe trading area b) trading area overlap c) secondary trading area d) primary trading area
A
There are three shopping locations with 300, 500, and 1000 square feet of space allocated to lighting accessories. A group of potential customers lives 5 minutes from the first location, 10 minutes from the second location, and 15 minutes from the third location. The retailer estimates the effect of travel time to be 1. The probability of consumers shopping at location 2____. a) is 28 percent b) is 34 percent c) is 38 percent d) cannot be determined from the information provided
A
Two cities that have equal populations are 40 miles apart. Based upon Reilly's law, the point of indifference___. a) is midway between each city b) is 10 miles from the first city c) is 15 miles from the first city d) cannot be determined from the information provided
A
Which location type is generally characterized by no competition, good road visibility, and easy parking? a) isolated store b) business district c) strip d) shopping center
A
Which marketing research company identifies communities on the basis of lifestyle clusters? a) AC Nielsen b) Sales & Marketing management c) Editor and publisher d) Information Resources Inc
A
Which retailer grouping has a high level of affinity? a) supermarket, drugstore, and meat store b) physician, lawyer and insurance broker c) grocery store, variety store, and department store d) movie theater, department store and bowling alley
A
Which shopping location has the greatest concentration of convenience stores? a) neighborhood business district b) secondary business district c) central business district d) regional shopping center
A
Which system combines digitized mapping with key locational data? a) geographic information system b) primary trading-area analysis c) secondary trading-area analysis d) Tiger
A
The Census of Population is conducted every ___ years. a) 3 b) 5 C) 7 D) 10
D
The greatest concentration of office building and retail stores occurs in the ___ business district. a) unplanned b) central c) neighborhood d) secondary
B
The largest form of shopping center is the____. a) central business district b) megamall c) community shopping center d) power center
B
The largest shopping area in a city that is synonymous with the term "downtown" is the___. a) string b) central business district c) secondary business district d) regional shopping center
B
The trading area of an existing store can best be estimated through examining___. a) the American Community Survey b) customer delivery records c) pedestrian and vehicle traffic d) Census of Population data
B
The trading area with the highest average purchase by a customer is the ____. a) parasite b) primary trading area c) secondary trading area d) fringe trading area
B
A consultant found than an area's economic base was heavily diversified with a mix of different types of industrial employment sources. The consultant learned this from___. a) Survey of buying power b) Editor and publisher market guide c) census of population d) sales and marketing management
B
A department store in a major shopping center can be classified as a(n) ____store. a) parasite b) destination c) unsaturated d) saturated
B
A retailer seeking a stable economic environment should seek a trading area with a _____. a) large military base b) diversified econimic base c) large government facililty d) boomig economy
B
A retailer with a large fringe trading are should consider____. a) expanding the trading area overlap b) direct marketing opportunities to this segment c) broadening the community's economic base d) establishing the point of indifference using Reilly's law
B
A retailer with a relatively large trading area and higher than average profitability is most likely to have which type of store location? a) saturated b) understored c) overstored d) oversaturated
B
A store with the largest trading area in a shopping center is a(n)____. a) parasite store b) destination store c) independent retailer d) leased department
B
A supermarket has developed an analog model to aid in its site-selection process. The model contains variables such as___. a) traffic counts, visibility, and manager ability b) trading area population and expected market share c) disposable income, retail sales, and population d) competition, store size, and total retail sales
B
An area that has too few retail stores to satisfy its population's needs is___. a) saturated b) understored c) not reaching its economic base potential d) located at the point of indifference
B
Based on Reilly's law, a city with a population of 40,000 would draw people from how many times the distance as a city with 10,000 population? a) 1.5 times b) 2 times c) 3 times d) 4 times
B
Huff's law of shopper attraction improved Reilly's law of retail gravitation by adding a consideration of______. a) customer demographics b) product assortment of the items carried at various shopping locations c) customer lifestyles d) a store's promotional effectiveness
B
If a shopping center has proper retail balance,___. a) pedestrian and vehicular traffic counts are high b) the store facilities for each merchandise or service classification is equal to the location's market size c) transportation facilities are good d) there are no parasite stores in the center
B
In Reilly's law of retail gravitation, the point of indifference is ____. a) the customer's perceived similarity between two competing retailers b) the geographic breaking point at which shoppers are indifferent to shopping at either of two cities c) the limit of a city's trading area d) determined solely by the merchandising effectiveness of a city's retail operations
B
Primary, secondary, and fringe trading areas for an existing store can be desribed on the basis of_____. a) trading area overlap with existing stores b) the average dollar purchases at a store by people from given geographic locales c) customer attitudes d) the frequency of large orders
B
A clear description of a trading area allows a retailer to determine___. a) customer shopping frequency b) its overall store image c) the focus of promotion activities d) private-brand strategy
C
A department store uses a regression computer site selection model. This model contains data on the following variables: ___. a) distance to store and store size b) disposable income, retail sales, and population c) traffic-barriers, store size, and traffic counts d) trading-area population and expected market share
C
A measure of a store's affinity is its___. a) pedestrian traffic b) vehicular traffic c) degree of customer interchange d) road visibility
C
A retailer's locations strategy can be made more flexible through___. a) the use of longer term leases b) sale and leaseback arrangements c) the use of renewal options versus a long term lease d) ownership versus leasing
C
A secondary business district generally is comprised of a minimum of___. a) several department stores and a broad group of specialty stores b) a grouping of stores with similar merchandise lines c) a junior department store, and several larger specialty stores d) a supermarket and several service stores
C
A shopping area in a city or town that is usually bounded by the intersection of two major streets is a(n) ____ business district. a) neighborhood b) central c) secondary d) unplanned
C
A store that does not create its own traffic is a ____. a) fringe store b) low trading-area overlap store c) parasite d) primary trading area store
C
An area's economic base refers to its___. a) population characteristics b) GDP c) sources of employment d) population size
C
An example of an economic trading-area barrier is_____. a) travel distance b) travel time c) high sales-tax rates d) travel difficulty as measured by road conditions
C
Blocks and census tracts are important units in the Census of Population to small retailers since___. a) the data is free b) this data is timely c) retailers can combine blocks and tracts to resemble their trading area d) online computer tapes are available
C
Car dealers, antique stores, and clothing stores are most likely to be located in a(n)___. a) neighborhood business district b) secondary business district c) string d) isolated locations
C
Huff's law is an example of a(n) ___ model. a) regression b) analog c) gravity d) trend
C
In a regional shopping center, the store with the largest trading area is a_____. a) shoe store b) variety store c) department store d) supermarket
C
Limites are placed on a retailer's merchandise lines in a planned shopping center to help promote___. a) scrambled merchandising b) affinities c) balanced tenancy d) a one hundred percent location
C
Reilly's law is an example of a(n) __ model. a) regression b) analog c) gravity d) trend
C
The distance between city A and city B is 25 miles; city A is 1/16 the size of city B. The point of indifference between the two cities is___ miles from A and___miles from B. a) 15; 10 b) 18; 7 c) 20; 5 d) 22; 3
C
The least flexible element of a retailer's strategy is____. a) pricing b) promotion c) store location d) product line
C
A central business district is characterized by a concentration of ____. a) convenience stores b) parking facilities c) suburban housing d) cultural and entertainment facilities
D
A major disadvantage of planned shopping centers to a retailer is that___. a) the arrangement of stores follows no format b) parking is generally limited c) there are few retailers to share costs and to generate traffic d) merchandise to be sold can be restricted
D
A major disadvantage to the use of census data is trading-area analysis is its ____. a) cost b) being limited to city and state data c) lack of comprehensiveness d) dated nature
D
A string is composed of___. a) a supermarket or a variety store and convenience-oriented stores b) at least one major department store and a broad group of specialty stores c) at least one junior department store, a variety store, and service shops d) stores with similar or compatible product lines
D
At least one major department store and a broad grouping of specialty and convenience stores are found in the ___business district. a) neighborhood b) secondary c) unplanned d) central
D
Corner influence is generally positive due to___. a) larger trading areas b) better retail balance c) higher levels of affinity d) greater visibility
D
Direct marketing should be used to increase sales to the____. a) trading-area overlap b) secondary trading area c) primary trading area d) fringe trading area
D
Important economic base data for cities can be found in the___. a) federal reserve b) American Community Survey c) Census of Population d) Editor and Publisher Market Guide
D
Reilly's law and Huff's law are examples of what type of computer site selection model? a) regression b) digital c) analog d) gravity
D
Stores that have similar and/or complementary merchandise offerings have which characteristic? a) traffic count maximization b) one-hundred percent location c) visibility d) affinity
D
There are three shopping locations with 300, 500, and 1000 square feet of space allocated to lighting accessories. A group of potential customers lives 5 minutes from the first location, 10 minutes from the second locations, and 15 minutes from the third location. The retailer estimates the effect of travel time to be 2. The probability of consumers shopping at location 1 is ____ percent. a) 21 b) 23 c) 45 d) 56
D
Under what condition would it be rational for the trading areas of two branch locations to completely overlap? a) when the retailer desires cost economics in promotion b) when the retailer decides to switch store locations from one large store to two small stores c) when a retailer pursues a mass marketing strategy d) when each store has a different target market
D
Which of these location forms is unplanned as a unit? a) regional shopping center b) neighborhood shopping center c) community shopping center d) central business district
D