Chapter 4

Question 1

• Is where the company sells its products. Choosing the right one is important as it - affects sales and profits, and the resources consumed. Also, each location has inherent advantages and risks

Answer 1

Market Location

Question 2

• Where there are no other outlets in the vicinity of the store and therefore store depends on its own pulling power and promotion to attracts customers

Answer 2

Freestanding/Isolated Store

Question 3

TWO CATEGORY OF SHOPPING CENTRE

Answer 3

● Regional Shopping Centers or Mall
● Neighborhood/Community/Shopping Centers

Question 4

Are the largest planned shopping centers

Answer 4

● Regional Shopping Centers or Mall

Question 5

Usually have a balanced mix of stores including a few grocery stores, a chemist, a variety store and a few other stores selling convenience goods to the residents of the neighborhood

Answer 5

● Neighborhood/Community/Shopping Centers

Question 6

FACTORS TO BE CONSIDERED IN
SELECTING A SHOPPING CENTER

Answer 6

● Traffic Count
● Pedestrian Traffic Count
● Estimate of Store Sales
● Automobile Traffic Count

Question 7

EVALUATING SPECIFIC AREAS FOR
LOCATIONS

Answer 7

Competition
Strategic Fit
Economic Condition
Operating Costs

Question 8

● Refer to the state of macroeconomic variables and trends in a country at point in time. Such conditions may include GDP growth potential, the unemployment rate, inflation, and fiscal and monetary policy orientations

Answer 8

Economic Condition

Question 9

● Is a rivalry where two or more parties strive for a common goal which cannot be shared: where one’s gain is the other’s loss

Answer 9

Competition

Question 10

● Expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment

Answer 10

Strategic Fit

Question 11

● Are the expenses incurred by a business that it uses to conduct its operations. These expenses may include payroll, rent, insurance premiums, utilities, and equipment maintenance. Operating costs do not include capital expenditures or depreciation

Answer 11

Operating Costs

Question 12

Evaluating a Site for Locating a Retail Store
When evaluating and selecting a specific site, retailers consider:

Answer 12

● The characteristics of the site
● The characteristics of the trading area
● The estimated potential sales that can be generated

Question 13

SITE CHARACTERISTICS

Answer 13

Traffic Flow and Accessibility
Convenience of Going to Site
Accessibility

Question 14

Traffic Flow and Accessibility

Answer 14

• When traffic is greater, more customer shop
• Good for convenience retailers
• Not necessary for destination retailers
• Too much can impede access to store
• Accessibility to store is as important as traffic flow

Question 15

Convenience of Going to Site
Accessibility

Answer 15

• Road pattern and condition
• Natural and artificial barriers
• Visibility
• Traffic flow
• Parking
• Congestion
• Ingress/egress

Question 16

WHAT SHOULD RETAILERS CONSIDER REGARDING PARKING?

Answer 16

• Observe shopping center at various times
• Employee parking availability
• Shoppers that use cars
• Parking by non-shoppers
• Typical length of a shopping trip

Question 17

PSYCHOLOGICAL TRIPS

Answer 17

Decoy Effect
Illusion Scarcity
Loss Aversion

Question 18

• Is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated

Answer 18

Decoy Effect

Question 19

• Is the perception that a product is more valuable when its availability is limited

Answer 19

Illusion scarcity

Question 20

• A psychological and economic concept, which refers to how outcomes are interpreted as gains and losses where losses are subject to more sensitivity in people’s responses compared to equivalent gains acquired

Answer 20

Loss Aversion