MKTG 361 - Test 2 Study Guide (Ch. 8, 17, 18): Ch. 8

When using the ______ approach, a small retail chain merely describes the site and trade area characteristics for its most successful stores and attempts to find a site with similar characteristics.

analog

Trade area zones:

are defined based on the driving time.

Railroad tracks, limited-access highways, and parks are examples of ______ barriers that affect the accessibility to a particular site.

artificial

Retailers that have similar target customers and compete against each other have greater drawing power which mutually benefits all the retailers when they are located near each other. This principle is referred to as _____.

cumulative attraction

A(n) _____ trading area includes customers from widely dispersed areas who travel long distances to shop at a store site.

tertiary

Identify the true statement about adjacent retailers. -Locations with complimentary adjacent retailers have the potential to build customer traffic. -Locations with competing retail stores always contradict the principle of cumulative attraction. -Customers who prefer comparison shopping favor isolated retail stores over adjacent competing retail stores. -Isolated retail stores generally have a greater drawing power than adjacent complementary retail stores that engage in the same retailing activities.

-Locations with complimentary adjacent retailers have the potential to build customer traffic.

With reference to parking , a standard rule of thumb is ______ spaces per 1,000 square feet for a supermarket.

10 to 15

The average Spending Potential Index is ______.

100

With reference to store sales, which of the following considerations must be kept in mind while choosing a site?

Locations with complementary, as well as competing, adjacent retailers have the potential to build traffic.

With reference to store sales, which of the following is true of the site accessibility?

Accessibility is greater for sites located near major highways.

______ is an excess level of traffic that results in customer delays.

Congestion

Each time a transaction is made at Allen's store, he asks his customers for their zip code. Allen then manually plots the location of each customer on a map. Allen is attempting to identify the trade area for his store by what approach?

Customer spotting

Identify the true statement about parking facilities that customers consider while evaluating a shopping center and a specific site within the center.

Customers will be discouraged from patronizing a store if its parking spaces are too far away from the store.

Which of the following stages is most likely to involve generation of a trade map using the data warehouse of current customers using ESRI's GIS software?

Defining present trade area.

______ along with some GIS suppliers have developed schemes for classifying geographic areas in the United States by combining census and survey data about people's lifestyles and purchasing behavior with the mapping capabilities of GIS.

ESRI

Identify a characteristic of visibility. -It refers to the number of consumers entering the shopping center, collected at store entrances within the shopping center. -It is the number of customers who are passing by a retail site. -Good visibility from the road is particularly important in an area with a highly transient population. -Good visibility is more important for stores with a well-established and loyal customer base.

Good visibility from the road is particularly important in an area with a highly transient population.

Assume that Terra Ventura, Turtle Cove, Harwood County, and Angel Grove are four areas located in the United States. Terra Ventura and Turtle Cove are urban areas with a population of 658,987 and 65,786, respectively. Harwood County and Angel Grove are central towns. Harwood County has a larger land area than Turtle Cove, and Angel Grove has a smaller land area when compared to Terra Ventura. Which of the following conclusions can be drawn from this scenario? -Terra Ventura is a micropolitan statistical area. -Turtle Cove is a micropolitan statistical area. -Angel Grove is a metropolitan statistical area. -Harwood County is a micropolitan statistical area.

Harwood County is a micropolitan statistical area.

The ______ specifies two factors that assess the probability that a consumer will patronize a store: the attractiveness of a store's location (larger stores and shopping centers are more attractive) and the time it takes a consumer to travel to the store (stores that take more time to get to are less attractive).

Huff gravity model

Which of the following stages would involve determining the predominant ethnicity groups in an area?

Identifying trade area characteristics

Which of the following best defines accessibility?

It is the ease with which customers can get into and out of a site.

Identify a characteristic of a micropolitan statistical area.

It lacks big cities' pull and economic significance.

Which of the following is true about retail stores' visibility?

Most retailers prefer a direct, unimpeded view of their store.

_______ costs are affected by the proximity of the area being considered to other areas in which the retailer operates stores.

Operating

Which of the following is the first step while using the analog approach?

Steps: *1. Conducting a competitive analysis* 2. Define present trade area. 3. Analyze trade area characteristics. 4. Match characteristics of present trade area with potential sites.

Which of the following is the system that classifies all U.S. residential neighborhoods into 65 distinct segments, based on demographic and socioeconimic segments?

The ESRI Tapestry Segmentation

Identify the true statement about operating costs. -Operating costs do not affect the daily running costs of retailers. -The cost of operating stores remains constant across areas. -Operating costs are independent of the proximity of other retail stores. -The local and state legal environment has a significant effect on operating costs of retailers.

The local and state legal environment has a significant effect on operating costs of retailers.

Which of the following is the reason why the economic conditions and competition of a retail location chosen by a retailer alone are not necessary to determine the strategic fit of the retailer? -The location needs to have consumers who are in the retailer's target market. -Traffic flow of the retail site is the ease with which customers can get into and out of the site. -Retailers do not suffer diminishing returns associated with locating too many additional stores in an area. -Accessibility of retail site location is lower for sites located on uncongested highways.

The location needs to have consumers who are in the retailer's target market.

Identify the true statement about traffic that affects store sales. -Traffic is never important to retailers who offer services purchased on impulse trips. -A retail store's supply chain always functions efficiently if traffic is high. -When the traffic is greater, more consumers are likely to stop in and shop at the store. -Retailers do not use traffic flow counts to assess the attractiveness of a retail location.

When the traffic is greater, more consumers are likely to stop in and shop at the store.

A(n) _____ ______ is a collection of adjacent blocks that contain between 300 and 4,000 people.

block group

A _____ _____ system provides descriptive information associated with the spatial features, such as the street address and the characteristics of the household at the address.

geographic information

A(n) ______ _______ system (GIS) is a system of hardware and software used to store, retrieve, map, and analyze geographic data.

geographic information

A large, fully-employed population means ______.

high purchasing power

The accessibility of a site ______.

is greater for retail stores located near major highways.

Traffic flow:

is important for retailers who offer services purchased on impulse.

Most retail chains open multiple stores in an area to _______.

lower their promotion and distribution costs.

A(n) _______ statistical area (MSA) is a core urban area containing a population of more than 50,000 inhabitants, together with adjacent communities that have a high degree of economic and social integration with the core community.

metropolitan

A(n) _____ statistical area is somewhat removed from larger U.S. cities, often by up to 100 miles.

micropolitan

The ______ regression technique considers the effects of a wide range of factors, including site characteristics, such as visibility and access, and characteristics of the trade area, such as demographics and lifestyle segments represented to estimate a statistical model.

multiple

Rivers and mountains are examples of _______ barriers that affect the accessibility to a particular retail site.

natural

Assume that Altair Inc. is a retailer that runs a store in San Antonio-New Braunfels, an eight-county metropolitan area in the U.S. state of Texas. In order to lower its promotion and distribution costs, Altair opens up more stores in the same metropolitan area. In this scenario, Altair is lowering its promotion and distribution costs by ______.

realizing economies of scale

Customer _______ is the process of locating the residences of customers for a store

spotting