Quiz
Chapters 9, 10, 11
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Questions in this quiz (24)
1A [blank_start]trading-area[blank_end] is a geographical area containing the customers and potential customers of a particular retailer or group of retailers for specific goods and/or services.
- Atrading-area
2Each trading area has three parts:
1. [blank_start]Primary[blank_end] trading area
2. [blank_start]Secondary[blank_end] trading area
3. [blank_start]Fringe[blank_end] trading area- APrimary
- BSecondary
- CFringe
3The [blank_start]primary trading[blank_end] area encompasses [blank_start]50 to 80%[blank_end] of a store’s customers. It is the area closest to the store and possesses the highest density of customers to population and the highest per capita sales. There is [blank_start]little overlap[blank_end] with other trading areas.
The [blank_start]secondary trading area[blank_end] contains an additional [blank_start]15 to 25%[blank_end] of a store’s customers. It is located outside the primary area, and customers are more widely dispersed.
The [blank_start]fringe trading area[blank_end] includes all the remaining customers, and they are the [blank_start]most widely dispersed[blank_end].- Aprimary trading
- B50 to 80%
- Csecondary trading area
- D15 to 25%
- Efringe trading area
- Fmost widely dispersed
- Glittle overlap
4[blank_start]Destination[blank_end] Stores
Have a better assortment, promotes more, and/or creates a stronger image.
Generate trading areas much larger than competitors with a “me-too” appeal.
[blank_start]Parasite[blank_end] Stores
Do not create their own traffic and have no real trading area of their own.
These store depend on people who are drawn to the location for other reasons.- ADestination
- BParasite
5Three computerized trading-area analysis models are available for assessing new store locations:
An [blank_start]analog[blank_end] model
A [blank_start]regression[blank_end] model
A [blank_start]gravity[blank_end] model- Aanalog
- Bregression
- Cgravity
6The traditional means of trading-area delineation is [blank_start]Reilly’s law of retail gravitation[blank_end]. It establishes a point of indifference between two cities or communities, so the trading area of each can be determined.
- AReilly’s law of retail gravitation
7The [blank_start]point of indifference[blank_end] is the geographic breaking point between two cities (communities) at which consumers are indifferent to shopping at either.
- Apoint of indifference
8Huff’s law of shopper attraction delineates trading areas on the basis of:
- the [blank_start]product assortment[blank_end]
- [blank_start]travel times[blank_end]
- the [blank_start]sensitivity[blank_end] of the kind of shopping to travel time- Aproduct assortment
- Btravel times
- Csensitivity
9The 3 Different Types of Locations:
1. [blank_start]Isolated[blank_end] store
2. [blank_start]Unplanned[blank_end] business district
3. [blank_start]Planned[blank_end] shopping center- AIsolated
- BUnplanned
- CPlanned
10Advantages of an Isolated Store:
- [blank_start]No competition[blank_end] in close proximity
- Rental costs are relatively low
- [blank_start]There is flexibility[blank_end]; no group rules must be followed in operations, and larger space may be obtained
- Facilities can be [blank_start]adapted to individual specifications[blank_end]
- Good for stores involved in [blank_start]one stop or convenience shopping[blank_end]
- Better road and traffic visibility
- Easy parking
Disadvantages of an Isolated Store:
- Initial customers may be [blank_start]difficult to attract[blank_end]
- Many people will not travel very far to get to one store on a continuous basis
- Most people like [blank_start]variety[blank_end] in shopping
- Costs such as outside lighting, security, grounds maintenance, and trash collection are not [blank_start]shared[blank_end]
- Advertising expenses may be high
- A store must often be built rather than rented- ANo competition
- BThere is flexibility
- Cadapted to individual specifications
- Done stop or convenience shopping
- Edifficult to attract
- Fvariety
- Gshared
11There are four kinds of unplanned business district:
[blank_start]central[blank_end] business district,
[blank_start]secondary[blank_end] business district,
[blank_start]neighbourhood[blank_end] business district, and
[blank_start]string[blank_end].- Acentral
- Bsecondary
- Cneighbourhood
- Dstring
12Advantages of CBDs:
- Excellent goods/services assortment
- Access to [blank_start]public transport[blank_end]
- Variety of store types and positioning strategies
- Wide range of prices
- Variety of customer services
- High level of [blank_start]pedestrian traffic[blank_end]
- Nearness to commercial and social facilities
Disadvantages of CBDs:
- Inadequate [blank_start]parking[blank_end]
- Traffic and delivery [blank_start]congestion[blank_end]
- Travel time for those living in the suburbs
- Frail condition of some cities
- Relatively poor image of central cities to some consumers
- High rents and taxes for the most popular sites
- [blank_start]Suburbanization[blank_end]
- [blank_start]Discontinuity[blank_end] of offerings- Apublic transport
- Bpedestrian traffic
- Cparking
- Dcongestion
- ESuburbanization
- FDiscontinuity
13Advantages of SBDs:
- Good product selection
- Access to thoroughfares and public transportation
- [blank_start]Less[blank_end] crowding than a CBD
- More personal services than a CBD
- Placement nearer to residential areas than a CBD.
Disadvantages of SBDs:
- [blank_start]Discontinuity[blank_end] of offerings
- High rent and taxes (but not as high as in a CBD)
- Traffic and delivery congestion
- [blank_start]Aging[blank_end] facilities
- [blank_start]Parking[blank_end] difficulties
- Fewer chain outlets than in the CBD- ALess
- BDiscontinuity
- CAging
- DParking
14Advantages of a Planned Shopping Center:
- Well-rounded assortments of goods and services based on long-range planning
- Strong suburban population
- Interest in one-stop, family shopping
- Cooperative planning and [blank_start]sharing[blank_end] of common costs
- Creation of distinctive, but unified, shopping center images
- Maximization of pedestrian traffic for individual stores
- Access to highways and availability of parking
- More appealing than [blank_start]city shopping[blank_end] for some people
- Generally [blank_start]lower rent[blank_end] and taxes than CBD’s
- Generally [blank_start]lower theft rates[blank_end] than CBD’s
- Popularity of malls
Disadvantages of a Planned Shopping Center:
- Landlord [blank_start]regulations[blank_end] that reduce each retailer’s flexibility, such as required hours
- [blank_start]Restrictions[blank_end] on the goods/services that can be sold by each store
- A [blank_start]competitive environment[blank_end] within the center
- Required payments for items, such as membership in a merchant’s association
- Too many malls in a number of areas (“the malling of America”)
- Rising consumer [blank_start]boredom with and disinterest in[blank_end] shopping as an activity
- Aging facilities of some older centers
- Domination by large anchor stores- Asharing
- Bcity shopping
- Clower rent
- Dlower theft rates
- Eregulations
- FRestrictions
- Gcompetitive environment
- Hboredom with and disinterest in
15Types of Leases:
- [blank_start]Straight lease[blank_end]: a retailer pays a fixed dollar amount per month over the life of the lease.
- [blank_start]Percentage lease[blank_end]: stipulates that rent is related to sales or profits.
- [blank_start]Graduated lease[blank_end]: calls for precise rent increases over a stated period of time.
- [blank_start]Maintenance-increase-recoupment lease[blank_end]: has a provision allowing rent to increase if a property owner’s taxes, heating bills, insurance, or other expenses rise beyond a certain point.
- [blank_start]Net lease[blank_end]: calls for all maintenance costs to be paid by the retailer.- AStraight lease
- BPercentage lease
- CGraduated lease
- DMaintenance-increase-recoupment lease
- ENet lease
16Advantages of specialization:
- Clearly defined tasks
- Greater [blank_start]expertise[blank_end]
- Reduced training
- Hiring people with narrow education and experience
Disadvantages of specialization:
- Poor [blank_start]morale[blank_end] (boredom)
- People not being aware of their jobs’ [blank_start]importance[blank_end]
- Need for more employees- Aexpertise
- Bmorale
- Cimportance
17The [blank_start]hierarchy of authority[blank_end] outlines the job interactions within a company by describing the reporting relationships among employees (from the lowest to the highest level). Coordination and control are provided by this hierarchy.
A firm with many workers reporting to one manager has a [blank_start]flat organization[blank_end].
A [blank_start]tall organization[blank_end] has several management levels, resulting in close supervision and fewer workers reporting to each manager.- Ahierarchy of authority
- Bflat organization
- Ctall organization
18Principles to consider in establishing an organization chart are:
- Show interest in employees - job [blank_start]rotation[blank_end], promotion, recognition, enrichment, etc.
- [blank_start]Empower[blank_end] employees.
- Limit [blank_start]span of control[blank_end] - limiting the number of employees a manager supervises.
- Trace line of authority from top to bottom - [blank_start]chain of command[blank_end].
- A subordinate should only report to one supervisor - [blank_start]unity of command[blank_end].
- Delegate authority while maintaining responsibility.
- Acknowledge need for coordination & communication.
- Recognize the power of informal relationships.
- Monitor employee turnover, [blank_start]lateness & absenteeism[blank_end] - may indicate personnel problems.- Arotation
- BEmpower
- Cspan of control
- Dchain of command
- Eunity of command
- Flateness & absenteeism
19Many department stores continue to use an organizational arrangement that is an adaptation of the [blank_start]Mazur plan[blank_end], which divides all retail activities into four functional areas.
1. [blank_start]Merchandising[blank_end] - buying, selling, stock planning and forecasting
2. [blank_start]Communications[blank_end] - public relations, advertising, displays, promotions
3. [blank_start]Store management[blank_end] - operations management, inventory management
4. [blank_start]Financial accounting[blank_end] - accounting, inventory control, auditing- AMazur plan
- BMerchandising
- CCommunications
- DStore management
- EFinancial accounting
20The growth of department stores led to three Mazur plan derivatives:
1. [blank_start]Main Store[blank_end] Control
2. [blank_start]Separate Store[blank_end] Organization
3. [blank_start]Equal Store[blank_end] Organization- AMain Store
- BSeparate Store
- CEqual Store
21The True Cost of Employee Turnover
Direct Costs include:
- [blank_start]separation[blank_end] costs - severance pay for exiting employees
- [blank_start]exit[blank_end] interviews,
- [blank_start]replacement[blank_end] costs (advertising, screening, new employee orientation)
- training costs
Indirect costs include:
- customer [blank_start]dissatisfaction[blank_end] - due to the use of inexperienced workers
- reduced suggestion selling
- costs of [blank_start]mistakes[blank_end] (pricing errors) and lower [blank_start]productivity[blank_end] while new employees gain experience.
- reduced [blank_start]morale[blank_end] among co-workers
- lower [blank_start]continuity[blank_end] among co-workers.- Aexit
- Bdissatisfaction
- Cmistakes
- Dproductivity
- Emorale
- Fcontinuity
- Gseparation
- Hreplacement
22A trading-area is a [blank_start]geographical area containing[blank_end] [blank_start]the customers and potential customers[blank_end] of a particular [blank_start]retailer or group of retailers for[blank_end] [blank_start]specific goods and/or services[blank_end].
- Ageographical area containing
- Bthe customers and potential customers
- Cretailer or group of retailers for
- Dspecific goods and/or services
23Where the same customers are served by both branches:
- Atrading-area
- Btrading-area overlap
24Advantages of Reilly's Law:
- [blank_start]Ease of calculation[blank_end]
- Useful when other data [blank_start]is not available[blank_end]
- Useful when other data is [blank_start]costly[blank_end]
Disadvantages (or limitations) of Reilly's Law:
- Distance is only measured by major thoroughfares; some people will travel shorter distances along cross streets.
- Travel time does not necessarily [blank_start]reflect the distance traveled[blank_end]. Many people are more concerned about [blank_start]time[blank_end] than [blank_start]distance[blank_end].
- [blank_start]Actual distance[blank_end] may not correspond with [blank_start]perceptions of distance[blank_end]. A store with few services and crowded aisles is apt to be a greater perceived distance from a person than a similarly located store with a more pleasant atmosphere.- AEase of calculation
- Bis not available
- Ccostly
- Dreflect the distance traveled
- Etime
- Fdistance
- Gperceptions of distance
- HActual distance
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- Retail Marketing & Distribution Quiz on Chapters 9, 10, 11 , created by Laura C on 19/11/2016.
- Author
- Laura C
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- English
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