Week 7-8 Flashcards
refer to the state of macroeconomic variables and trends in a country at a point in time.
economic condition
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.
competition
expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment.
Strategic Fit
Demographic, lifestyle profile, size and composition of households in an area
strategic fit
are the expenses incurred by a business that it uses to conduct its
operations.
operating cost
These expenses may include payroll, rent, insurance premiums, utilities, and equipment maintenance.
operating cost
do not include capital expenditures or depreciation.
operating cost
When evaluating and selecting a specific site, retailers consider:
- The characteristic of the site
- The characteristic of the trading area
- The estimated potential sales that can be generated
Site Characteristics
-Traffic Flow and Accessibility
-Convenience of Going to Site Accessibility
Convenience of Going to Site Accessibility
- Road pattern and condition
- Natural and artificial barriers
- Visibility
- Traffic flow
- Parking
- Congestion
- Ingress/egress
Traffic Flow and Accessibility
- When traffic is greater, more customers 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
What Should Retailers Consider Regarding Parking?
- Observe shopping center at various times
- Employee parking availability
- Shoppers that use cars
- Parking by non-shoppers
- Typical length of a shopping trip
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.
DECOY EFFECT
is the perception that a product
is more valuable when its availability is limited.
ILLUSION SCARCITY
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.
LOSS AVERSION
