Week 7-8 Flashcards
refer to the state of macroeconomic variables and trends in a
country at a point in time. Such conditions may include GDP
growth potential, the unemployment rate, inflation, and fiscal and
monetary policy orientations.
economic condition
The growth of population and employment
- How long the growth will continue, and how it will
effects demand for merchandise sold in its stores - Which areas growing quickly and why
Is example of what?
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
- Some retailers are going urban
- Lack of competition
- High level of disposable income
- Large, untapped labor force
Is examples of
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
⚬ McDonalds - families with kids
⚬ REI - outdoor enthusiasts
strategic fit
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.
do not include capital expenditures or depreciation.
Operating costs
- Vary across areas
- Affected by proximity of area considered vs. other
areas where retailer operates - Local and state legal environment has effect
Operating costs
Evaluating a Site
for Locating a Retail Store
When evaluating and selecting a specific site, retailers consider:
(3)
• The characteristic of the site
• The characteristic of the trading area
• The estimated potential sales that can be generated
When traffic is greater, more customers shop
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
A.Traffic Flow and Accessibility
Road pattern and condition
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
B.Convenience of Going to Site Accessibility
Good for convenience retailers
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
A.Traffic Flow and Accessibility
Not necessary for destination retailers
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
A.Traffic Flow and Accessibility
Natural and artificial barriers
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
B.Convenience of Going to Site Accessibility
Too much can impede access to store
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
A.Traffic Flow and Accessibility
Accessibility to store is as important as traffic flow
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
A.Traffic Flow and Accessibility
Visibility
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
B.Convenience of Going to Site Accessibility
Traffic flow
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
B.Convenience of Going to Site Accessibility
Parking
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
B.Convenience of Going to Site Accessibility
Congestion
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
B.Convenience of Going to Site Accessibility
Ingress/egress
A.Traffic Flow and Accessibility
B.Convenience of Going to Site Accessibility
B.Convenience of Going to Site Accessibility
What Should Retailers
Consider Regarding Parking?
Observe ________ _______ at various times
shopping center
What Should Retailers
Consider Regarding Parking?
Employee ________ availability
parking
What Should Retailers
Consider Regarding Parking?
Shoppers that use _____
cars
What Should Retailers
Consider Regarding Parking?
Parking by non-shoppers ______________
non-shoppers
What Should Retailers
Consider Regarding Parking?
Typical ________ of a shopping trip
length
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
