Test 2- Retail
Based on Reilly's law, a city with a population of 90,000 would draw people from about how many times the distance as a city with 10,000 population?
3 times
A store with a wide assortment of merchandise and a strong image in a particular merchandise category is a ________ store.
destination
What type of retailer has a very large primary trading area?
destination retailers
A retailer seeking a stable economic environment should seek a trading area with a ______________________.
diversified economic base
A retailer decided to outsource its logistics operations to FedEx after studying its resources. This illustrates which stage in setting up a retail organization?
dividing the tasks among channel members
An area's commercial and industrial structure is referred to as its ______.
economic base
A problem with extreme specialization of tasks in retailing is ________.
employees not being aware of the importance of their tasks to the retailer's overall goals
Which form of retail organization separates responsibility for buying and selling?
equal store
Which form of retail store organization seeks to achieve the benefits of both centralization and decentralization?
equal store
The ________ method of job classification places store-based personnel under the direct control of the branch manager.
geographic
A retailer uses different buyers in its main store and its suburban branches so as to better reflect each target market. This illustrates which job classification method?
geographic classification
The equal store organization is a form of ____________
geographic classification
Reporting relationships among employees within a retail firm from the lowest levels to the highest levels are described in the ________.
hierarchy of authority
An isolated store location is most suitable to a retailer that ___________.
is a category killer
A store has a disproportionately large primary, secondary, and fringe trading area. This situation can be caused by __________.
it being a destination store
The gathering of information about the functions and requirements of each job is referred to as ________.
job analysis
A retailer can overcome problems with extreme task specialization by ________.
job rotation and job enlargement
Which two lease provisions set rental terms on the basis of actual operating costs?
maintenance-increase-renouncement lease and net lease
The four functional areas in the modern version of the Mazur plan are ________.
merchandising, communications, store management, and financial accounting
Which shopping location appeals to a single residential area?
neighborhood business district
The least common form of planned shopping center is the ___________________.
neighborhood shopping center
Which planned shopping center emphasizes convenience-oriented goods and services (such as a bakery, laundry, and a cry cleaner)?
neighborhood shopping center
Which planned shopping center is generally arranged in a strip?
neighborhood shopping center
A retailer has the greatest control over property maintenance in which rental form?
net lease
When a central business district closes a street to vehicular traffic as part of a renovation project, it plans to simulate a(n) ___________ mall.
open
Which location and site evaluation aspects can best be monitored by observation?
pedestrian and vehicular traffic
A retailer is currently in a shopping center with a large number of vacancies. Several of the vacant retail locations have high affinities with the existing retailer. The loss in pedestrian traffic can be partially offset through which form of lease?
percentage lease
Which type of shopping center is comprised of category killer stores?
power center
A major advantage of a flat organization is ________.
quicker response time to the handling of important problems or opportunities
A major advantage of specialization is ______________________.
reduced training
A megamall is a form of a ______________.
regional shopping center
Which planned shopping center is most similar to the central business district?
regional shopping center
Which planned shopping center type has a trading area of up to 30 minutes driving time?
regional shopping center
In a string location, a retailer has affinities with _________________.
retailers selling the same product lines
A functional classification for a car dealer would classify jobs into which of the following divisions?
sales promotion, repairs, car sales and store operations
The major difference between an application blank and a weighted application blank is that the weighted application blank is ________.
scored to determine if a job candidate meets the minimum cutoff point
Which unplanned business district is generally bounded by the intersection of two major streets?
secondary business district
Transferring stock between branches is most difficult in which form of retail organization?
separate store
A major refinement in Huff's law versus Reilly's law is Huff's use of _____________.
separate trading-area calculations for different product categories
The quality of pedestrian traffic counts can be improved by ___________.
separating the count by time of day and day of week
A neighborhood business district generally is comprised of a minimum of ___________.
several series stores (such as a dry cleaner and restaurant)
"A grouping of stores may actually increase the trading area for each store." This statement especially applies to __________________.
shopping products
The addition of retail stores to a shopping center increases the trading area for each store. This indicates that ________.
store affinities exist between the new and existing stores
In retail balance, ______________
store facilities for each merchandise or service classification are equal to the location's market potential
"While competition among similar stores can increase the size of a trading area for all merchants, result in each merchant receiving a smaller market share." This statement is most applicable to a(n) ____________________.
string
Leases for retail locations are often very complicated due to ___________________.
their long time duration
A major advantage of an isolated store location is that ____________.
there are no group rules which must be abided by in operation
Blocks and census tracts are important units in the Census of Population to retailers because ______________.
these can be combined to fit a retailer's trading area
A retailer with a higher than average profitability is most likely to have which level of saturation?
understored
A retailer with three retail stores located within a 10-mile radius wishes to advertise in a county-based daily newspaper which covers a very large geographic area. The retailer should __________.
use a regional edition to minimize waste
A firm determines that job candidates for part-time cashier positions that have B or better averages are three times more likely to successfully complete six months with a firm than those with averages less than C. Where in the human resource management process should the firm use this information?
weighted application blank
Which job selection technique requires that a job candidate score above a minimum cutoff as a pre-condition for being hired?
weighted application blank
Which computer-based system classifies and describes communities by lifestyle clusters?
Nielsen's PRIZM
A major disadvantage to an isolated store location is that ______________.
On an ongoing basis, many people will not travel very far to shop in just one store
Which statement concerning the central business district (CBD) is not correct?
Over the past 40 years, the share of the CBD relative to the planned shopping center has increased
A newspaper stand in a hotel lobby can best describe as a ________ store
Parasite
A retailer should concentrate the bill of its promotion activity in its
Primary trading area
Under what condition would it be rational for the trading areas of two branch location to completely overlap?
When the retailer decides to switch store locations due to loss of a lease on the first store location
An area with a relatively large number of consumers per square foot of available store space is ________.
Understored
The distance between city A and city B is 30 miles; city A's population is 1,000,000 and city B's is 16,000,000. The point of indifference between the two cities is _______________.
6 miles from A, 24 miles from B
A shopping area in a city or town that is the hub of retailing in a city and is synonymous with the term "downtown" is the ________ business district
Central
Which of the following retailers is most likely to be a parasite in a major shopping center?
Coffee shop
A retailer seeks input from employees at weekly meetings. Data on store performance is shared with employees and employees are rewarded on the basis of sales per square foot and a store's net profit as a percent of sales. This best illustrates ________.
Dissatisfiers
What type of economic base is preferred by most retailers?
Diversified economic base
The first step in choosing a store location is to
Evaluate alternate geographic (trading areas) in terms of the characteristics of residents and existing retailers
A span of control refers to the number of subordinates reporting to one manager. A firm with a large span of control utilizes a ________ organization.
Flat
In Reilly's law of retail gravitation, the point of indifference is the _________
Geographic breaking point area at which shoppers are indifferent to shopping at either of two cities
The trading area overlap between two shoe stores of the same chain is significant. What conclusion can we make about the level of saturation in this geographic area?
It is overstored
The least flexible element of a retailer's strategy mix is
Location
A department store uses a ________ computer site selection model. This model contains a series of equations linking variables such as traffic patterns, population size, average income, and transportation adequacy to estimated sales.
Regression
Which statement concerning the U.S. Census Bureau's national digital map, TIGER, is not correct?
TIGER maps include retail facilities and population characteristics
Which form of organization is most in accord with the notion of motivation that argues that the average worker dislikes responsibility and prefers to be led?
Tall
A major advantage of the Census of Population for use by retailers in trading-area analysis is _______
The availability of information on small geographic units
A proposed location for a supermarket chain is within three miles of a current store. What is the major factor that management should study relative to both locations?
The trading-area overlap of both location
A retailer's location strategy can be made more flexible through _____________.
The use of short-term leases with multiple renewal option versus a long-term lease
A string is composed of ____________
a grouping of stores with similar or compatible product lines
A retailer structures and assigns tasks, policies, resources, authority, responsibilities, and rewards through _______________.
a retail organization
A separate store organization should be utilized when ________.
branches are large and customer tastes vary by location
Under the modern version of the Mazur plan, which executive has responsibility for reaching profit goals?
buyer
Planned shopping centers are characterized by ______________
central ownership and management and balanced tenancy
In the main store control organization, _________________________.
centralization is practiced
A major advantage to leasing (versus store ownership) is _____________.
freedom from lease renewal concerns
Which trading area covers the greatest distance?
fringe trading area
The modern version of the Mazur plan most closely corresponds to which method of classifying jobs? A) combination organization chart
functional classification
A major benefit of a trading-area analysis is that it allows a retailer to determine ________.
the demographic and socioeconomic characteristics of consumers
A major advantage of ownership versus leasing is ________________
the increased ability to predict occupancy costs in future time periods
A disadvantage of delegating a retail task to another party is _________________
the loss of control over the activity
The minimum expectations/desired goals concept is most closely in accord with ________.
the notion that employees can be self-managers and assigned authority
