retail mgt chapter 9
A retailer with a large fringe trading area should consider ________.
direct marketing opportunities to this segment
A retailer seeking a stable economic environment should seek a trading area with a ________.
diversified economic base
Retailers are often unable to earn an adequate return on investment in which type of location?
overstored
The store location of a coffee shop in a hotel lobby can best be described as ________.
parasite
Reilly's law of retail gravitation can be improved through the use of ________.
perceived travel time
The trading area with the highest average purchase by a customer is the ________.
primary tradings area
Huff's law of shopper attraction improved Reilly's law of retail gravitation by adding a consideration of ________.
product assortment of the items carried at various shopping locations
Which computer-based site-selection model generally includes the largest number of variables?
regression
Blocks and census tracts are important units in the Census of Population to small retailers since ________.
retailers can combine blocks and tracts to resemble their trading area
The major assumptions of Reilly's law are that two competing areas are equally accessible from a major road and that ________.
retailers in the two cities are equally effective
An area's economic base refers to its ________.
sources of employment
A supermarket has developed an analog model to aid in its site-selection process. The model contains variables such as ________.
trading-area population and expected market share
According to Reilly's law of retail gravitation, if two cities have populations of 100,000 and 400,000 people and are 20 miles apart, the point of indifference is located 6.7 miles from the smaller city.
true
An area can be understored with regard to one type of good or service and overstored with regard to another type of good or service.
true
An area's level of saturation can be calculated by examining average sales per retail store, store sales per capita, and sales per square foot of selling area.
true
Geographic information systems enable retailers to see graphical depictions of trading-area characteristics for current, proposed, and competitor locations.
true
The description of a trading area is the first stage in an analysis of a retail store location.
true
The major proportion of a retailer's promotional effort should be directed at its primary trading area.
true
The notion of trading-area overlap is particularly relevant to chains.
true
Two types of stores can have different trading areas even though they are located in the same shopping district/center.
true
An area that has too few retail stores to satisfy its population's needs is ________.
understored
An area with a relatively large number of consumers per square foot of available store space is ________.
understored
The most important disadvantage to the use of the American Community Survey data in trading-area analysis is ________.
use of county-based vs. narrower geographic areas
Under what condition would it be rational for the trading areas of two branch locations to completely overlap?
when each store has a different target market
Which statement concerning destination stores is not correct?
The presence of a destination store in a major shopping center has no effect on the trading area of parasite stores.
The trading area of an existing store can best be estimated through examining ________.
customer delivery records
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?
2 times
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.
20;5
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?
50 miles
The major refinement in Huff's law versus Reilly's law is Huff's use of ________.
?? not point of ind.
Which marketing research company identifies communities on the basis of lifestyle clusters?
A.C. Nielsen
A consultant found that an area's economic base was heavily diversified with a mix of different types of industrial employment sources. The consultant learned this from ________.
Editor & Publisher Market Guide
The determination of trading-area overlap is most important for which retailer?
chain
Trading-area delineation is more exact for new stores than for existing stores.
false
The most widely dispersed group of customers can be found in which trading-area segment?
fringe trading area
A clear description of a trading area allows a retailer to determine ________.
the focus of promotion activities
In Reilly's law of retail gravitation, the point of indifference is ________.
the geographic breaking point at which shoppers are indifferent to shopping at either of two cities
Which of the following is not a disadvantage associated with the use of TIGER maps?
the maps cannot be tailored to reflect physical attributes of US areas
The most quantitative type of computerized trading analysis is ________.
the regression model
A major advantage of the Census of Population for use by retailers in trading-area analysis is ________.
the small size of census tracts and blocks