Chapter 10
1) Which location type is generally characterized by the absence of retailers with which the retailer can share traffic?
A) business district
B) shopping center
C) isolated store
D) strip
Answer: C
Diff: 1 Page Ref: 276
Skill: Terminology/Concept
2) A major advantage of an isolated store location is that ________.
A) there are no group rules which must be abided by in operation
B) parking and security costs can be shared with other tenants
C) shoppers can be easily attracted and maintained at the location
D) advertising costs are generally low
Answer: A
Diff: 1 Page Ref: 276
Skill: Terminology/Concept
3) A major disadvantage to an isolated store location is that ________.
A) competition with adjacent retailers is high
B) on an ongoing basis, many people will not travel very far to shop in just one store
C) rental costs are generally relatively high
D) leases can restrict store operations and merchandise carried
Answer: B
Diff: 1 Page Ref: 276
Skill: Terminology/Concept
4) A shopping area in a city or town that is the hub of retailing in a city the term and is synonymous with the term "downtown" is the ________ business district.
A) unplanned
B) neighborhood
C) central
D) secondary
Answer: C
Diff: 1 Page Ref: 277
Skill: Terminology/Concept
5) Which business district is located in the part of a city or town with the greatest concentration of office buildings and retail stores?
A) string
B) central business district
C) neighborhood business district
D) secondary business district
Answer: B
Diff: 1 Page Ref: 277
Skill: Terminology/Concept
6) Which statement concerning the central business district (CBD) is not correct?
A) The core of a CBD rarely exceeds a square mile.
B) A CBD is typically located in the part of a city or town with the greatest concentration of office buildings and retail stores.
C) Over the past 40 years, the share of the CBD relative to the planned shopping center has increased.
D) A CBD has at least one major department store and a broad grouping of specialty and convenience stores.
Answer: C
Diff: 2 Page Ref: 277-278
Skill: Terminology/Concept
7) A central business district is characterized by a concentration of ________.
A) convenience stores
B) suburban housing
C) parking facilities
D) cultural and entertainment facilities
Answer: D
Diff: 1 Page Ref: 277
Skill: Terminology/Concept
8) Which unplanned shopping district has at least one department store and a number of specialty and convenience stores?
A) string
B) central business district
C) secondary business district
D) regional shopping center
Answer: B
Diff: 1 Page Ref: 277-278
Skill: Terminology/Concept
9) A major advantage of a central business district is ________.
A) access to public transportation
B) balanced tenancy
C) ease of vehicular traffic flow
D) continuity of merchandise offerings
Answer: A
Diff: 1 Page Ref: 277-278
Skill: Terminology/Concept
10) Which unplanned business district is generally bounded by the intersection of two major streets?
A) isolated store
B) string
C) secondary business district
D) central business district
Answer: C
Diff: 1 Page Ref: 279-280
Skill: Terminology/Concept
11) A secondary business district generally is comprised of a minimum of ________.
A) a supermarket and several service stores (such as a bakery, dry cleaner, and laundromat)
B) one department store and a group of specialty and convenience stores
C) a grouping of stores with similar merchandise lines
D) a junior department store and some larger specialty stores
Answer: D
Diff: 1 Page Ref: 279-280
Skill: Terminology/Concept
12) Which of the following location forms is not planned as a unit?
A) neighborhood business district
B) neighborhood shopping center
C) community shopping center
D) regional shopping center
Answer: A
Diff: 1 Page Ref: 280
Skill: Terminology/Concept
13) Which shopping location appeals to a single residential area?
A) secondary business district
B) neighborhood business district
C) regional shopping center
D) central business district
Answer: B
Diff: 2 Page Ref: 280
Skill: Terminology/Concept
14) A neighborhood business district generally is comprised of a minimum of ________.
A) several service stores (such as a dry cleaner and restaurant)
B) one department store and a group of specialty and convenience stores
C) a grouping of stores with similar merchandise lines
D) a junior department store, variety store, and several service shops
Answer: A
Diff: 1 Page Ref: 280
Skill: Terminology/Concept
15) A string is composed of ________.
A) a supermarket and several service stores (such as a bakery, dry cleaner, and laundromat)
B) one department store and a group of specialty and convenience stores
C) a grouping of stores with similar or compatible product lines
D) a junior department store, variety store, and several service shops
Answer: C
Diff: 1 Page Ref: 280
Skill: Terminology/Concept
16) Planned shopping centers are characterized by ________.
A) low rental costs
B) central ownership and management and balanced tenancy
C) no adjacent retailers
D) a high concentration of office buildings and retail stores
Answer: B
Diff: 2 Page Ref: 280-281
Skill: Terminology/Concept
17) To ensure ________, limits are typically placed on the product lines that can be stocked by each retailer and the types of retailers that can acquire unexpired leases.
A) scrambled merchandising
B) balanced tenancy
C) a one-hundred percent location
D) sale-leaseback
Answer: B
Diff: 2 Page Ref: 280
Skill: Terminology/Concept
18) A major advantage of a planned shopping center to a retailer is ________.
A) nearness to commercial and social facilities
B) ability to cater to convenience needs of a local population
C) interest in one-stop, family shopping
D) the domination by large anchor stores
Answer: C
Diff: 1 Page Ref: 280-281
Skill: Terminology/Concept
19) Which planned shopping center type has a trading area of up to 30 minutes driving time?
A) megamall
B) regional shopping center
C) community shopping center
D) neighborhood shopping center
Answer: B
Diff: 1 Page Ref: 283-284
Skill: Terminology/Concept
20) The largest form of planned shopping center is the ________.
A) megamall
B) neighborhood shopping center
C) community shopping center
D) regional shopping center
Answer: A
Diff: 1 Page Ref: 284
Skill: Terminology/Concept
21) The least common form of planned shopping center is the ________.
A) neighborhood shopping center
B) community shopping center
C) megamall
D) string
Answer: C
Diff: 2 Page Ref: 284
Skill: Terminology/Concept
22) Which planned shopping center has a moderate assortment of both shopping and convenience-oriented goods and services?
A) community shopping center
B) regional shopping center
C) neighborhood shopping center
D) megamall
Answer: A
Diff: 1 Page Ref: 284-285
Skill: Terminology/Concept
23) A power center is a form of ________.
A) string
B) megamall
C) regional shopping center
D) community shopping center
Answer: D
Diff: 2 Page Ref: 285
Skill: Terminology/Concept
24) Which type of shopping center is comprised of category killer stores?
A) power center
B) regional shopping center
C) megamall
D) string
Answer: A
Diff: 1 Page Ref: 285
Skill: Terminology/Concept
25) Which planned shopping center emphasizes convenience-oriented goods and services (such as a bakery, laundry, and a dry cleaner)?
A) neighborhood shopping center
B) community shopping center
C) regional shopping center
D) megamall
Answer: A
Diff: 2 Page Ref: 285-286
Skill: Terminology/Concept
26) Which planned shopping center is generally arranged in a strip?
A) regional shopping center
B) community shopping center
C) neighborhood shopping center
D) megamall
Answer: C
Diff: 1 Page Ref: 285-286
Skill: Terminology/Concept
27) A one-hundred percent location is the ________.
A) optimum site for a particular store
B) location with the best lease terms
C) location closest to parking facilities
D) location with the best affinities
Answer: A
Diff: 1 Page Ref: 287
Skill: Terminology/Concept
28) The most crucial locational attribute is generally ________.
A) corner influence
B) transportation facilities
C) parking facilities
D) pedestrian traffic
Answer: D
Diff: 2 Page Ref: 287
Skill: Terminology/Concept
29) The quality of pedestrian traffic counts can be improved by ________.
A) separating the count by time of day and day of week
B) counting all people passing a given location
C) counting only people who park their car in the lot
D) allowing the interviewer to determine who is to be counted
Answer: A
Diff: 2 Page Ref: 288
Skill: Terminology/Concept
30) Stores that have similar and/or complementary merchandise offerings have ________.
A) retail balance
B) balanced tenancy
C) high affinities
D) corner influence
Answer: C
Diff: 1 Page Ref: 290
Skill: Terminology/Concept
31) In retail balance, ________.
A) there is a shortage of a given type of retail facility
B) the level of customer interchange among complementary stores is high
C) parking facilities are appropriate to demand
D) store facilities for each merchandise or service classification are equal to the location's market potential
Answer: D
Diff: 1 Page Ref: 291
Skill: Terminology/Concept
32) A retailer's owning a store location (as opposed to leasing) is most common with ________.
A) inexpensive locations
B) locations in regional shopping centers
C) larger retail institutions
D) department stores
Answer: A
Diff: 1 Page Ref: 292
Skill: Terminology/Concept
33) A major advantage to leasing (versus store ownership) is ________.
A) ability to depreciate a building
B) lower property taxes
C) freedom from lease renewal concerns
D) ability to secure regional shopping center locations
Answer: D
Diff: 2 Page Ref: 292
Skill: Terminology/Concept
34) A retailer can view a lease as a variable cost in a ________.
A) graduated lease
B) percentage lease
C) straight lease
D) net lease
Answer: B
Diff: 2 Page Ref: 293
Skill: Terminology/Concept
35) Which expense is paid by the property owner in a net lease?
A) heat
B) insurance
C) electricity
D) mortgage interest
Answer: D
Diff: 2 Page Ref: 294
Skill: Terminology/Concept
36) An isolated store location is most suitable to a retailer that ________.
A) is a parasite
B) is a category killer
C) requires affinities
D) uses a multiple segmentation strategy
Answer: B
Diff: 2 Page Ref: 276-277
Skill: Applied/Comprehensive/Integrative
37) What type of location is least appropriate for a parasite store?
A) central business district
B) regional shopping center
C) isolated store
D) string
Answer: C
Diff: 2 Page Ref: 276-277
Skill: Applied/Comprehensive/Integrative
38) The major difference between unplanned business districts and planned shopping centers is based upon ________.
A) composition of stores
B) ownership
C) size in square footage
D) shopper demographics
Answer: B
Diff: 2 Page Ref: 277, 280
Skill: Applied/Comprehensive/Integrative
39) Which planned shopping center is most similar to the central business district?
A) community shopping center
B) neighborhood shopping center
C) regional shopping center
D) string
Answer: C
Diff: 2 Page Ref: 277, 283
Skill: Applied/Comprehensive/Integrative
40) While a small or medium-sized city typically has ________ central business district(s), it usually has ________ secondary business district(s).
A) one; multiple
B) multiple; one
C) one; two
D) two; three
Answer: A
Diff: 2 Page Ref: 277, 279
Skill: Applied/Comprehensive/Integrative
41) A major difference between a central business district (CBD) and a regional shopping center is the existence of ________ in the CBD.
A) a major concentration of office buildings
B) free parking
C) merchants associations
D) vertical malls
Answer: A
Diff: 2 Page Ref: 277, 283-284
Skill: Applied/Comprehensive/Integrative
42) The retail location types with the largest primary trading areas are ________.
A) regional shopping center and central business district
B) neighborhood business district and neighborhood shopping center
C) secondary business district and neighborhood shopping center
D) megamall and power center
Answer: A
Diff: 2 Page Ref: 277, 283-284
Skill: Applied/Comprehensive/Integrative
43) In a string location, a retailer has affinities with ________.
A) compatible retailers
B) retailers selling the same product lines
C) a parasite store
D) a planned shopping center
Answer: B
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
44) "While competition among similar stores can increase the size of a trading area for all merchants, it can result in each merchant receiving a smaller market share." This statement is most applicable to a(n) ________.
A) isolated location
B) category killer retailer
C) department store
D) string
Answer: D
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
45) A string location is most appropriate for ________.
A) a chain retailer
B) a destination store
C) retailers that sell shopping goods
D) a category killer
Answer: C
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
46) A retail area with balanced tenancy is a(n) ________.
A) understored area for all merchandise classifications
B) overstored area for all merchandise classifications
C) saturated area for all merchandise classifications
D) saturated area for selected merchandise classifications
Answer: C
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
47) A balanced tenancy (wherein a store's merchandise lines are limited and controlled) may be incompatible with which retail strategy?
A) the wheel of retailing
B) the retail life cycle
C) scrambled merchandising
D) discounting
Answer: C
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
48) When a central business district closes a street to vehicular traffic as part of a renovation project, it plans to simulate a(n) ________ mall.
A) open
B) closed
C) discount
D) enclosed
Answer: A
Diff: 2 Page Ref: 278, 281
Skill: Applied/Comprehensive/Integrative
49) A megamall is a form of a ________.
A) central business district
B) string
C) community shopping center
D) regional shopping center
Answer: D
Diff: 2 Page Ref: 284
Skill: Applied/Comprehensive/Integrative
50) Which retail location type would generally have the largest overall trading area?
A) megamall
B) power center
C) regional shopping center
D) community business district
Answer: A
Diff: 2 Page Ref: 284
Skill: Applied/Comprehensive/Integrative
51) Generally, which tenant in a community shopping center has the largest primary trading area?
A) convenience store
B) pharmacy
C) supermarket
D) variety store
Answer: D
Diff: 2 Page Ref: 284-285
Skill: Applied/Comprehensive/Integrative
52) Which type of retail location has two or more destination stores?
A) isolated location
B) power center
C) megamall
D) string
Answer: B
Diff: 2 Page Ref: 285
Skill: Applied/Comprehensive/Integrative
53) A one-hundred percent location for an off-price retail chain is a(n) ________.
A) isolated location
B) corner store location in a regional shopping center
C) location adjacent to a department store in a megamall
D) location adjacent to a used car lot in a string
Answer: A
Diff: 2 Page Ref: 287
Skill: Applied/Comprehensive/Integrative
54) Which location and site evaluation aspects can best be monitored by observation?
A) transportation quality as judged by consumers
B) pedestrian and vehicular traffic
C) parking adequacy perceptions
D) retail balance
Answer: B
Diff: 2 Page Ref: 287, 288
Skill: Applied/Comprehensive/Integrative
55) In conducting a vehicular traffic count for a car wash, the service retailer should be careful to discount the number of vehicles that ________.
A) are going slower than 35 miles per hour
B) must cross a two-lane divided highway to enter the retailer's facility
C) have out-of-state license plates
D) have less than three passengers
Answer: B
Diff: 1 Page Ref: 288
Skill: Applied/Comprehensive/Integrative
56) The addition of retail stores to a shopping center increases the trading area for each store. This indicates that ________.
A) trading-area overlap exists between the old and new retailers
B) the retail area is saturated
C) the new stores are parasites
D) store affinities exist between the new and existing stores
Answer: D
Diff: 2 Page Ref: 290
Skill: Applied/Comprehensive/Integrative
57) What statement about the isolated store is correct?
A) Isolated stores typically have high rents.
B) Isolated stores have high trading-area overlap with adjacent shopping centers.
C) Isolated stores have no affinities.
D) Isolated stores are parasite stores.
Answer: C
Diff: 2 Page Ref: 290
Skill: Applied/Comprehensive/Integrative
58) A shopping center that properly employs retail balance has a(n) ________ trading area.
A) understored
B) overstored
C) saturated
D) supersaturated
Answer: C
Diff: 2 Page Ref: 291
Skill: Applied/Comprehensive/Integrative
59) A major advantage of ownership versus leasing is ________.
A) the increased ability to predict occupancy costs in future time periods
B) the ability to purchase superior locations in major shopping centers
C) lower capital requirements
D) lower financial risk
Answer: A
Diff: 2 Page Ref: 292
Skill: Applied/Comprehensive/Integrative
60) Ownership of retail facilities is most common in what location type?
A) community shopping center
B) neighborhood shopping center
C) string
D) regional shopping center
Answer: C
Diff: 2 Page Ref: 292
Skill: Applied/Comprehensive/Integrative
61) A major advantage of leasing over ownership is the ________.
A) ability to plan on using a location over the long term
B) freedom from restrictive leasing clauses
C) ability to depreciate a property's building
D) freedom from tying up capital in real-estate
Answer: D
Diff: 2 Page Ref: 292
Skill: Applied/Comprehensive/Integrative
62) A retailer can achieve some of the benefits of both owning and leasing a store through the use of a ________.
A) net lease
B) graduated lease
C) sale-leaseback
D) maintenance-increase-recoupment lease provision
Answer: C
Diff: 2 Page Ref: 293
Skill: Applied/Comprehensive/Integrative
63) Leases for retail locations are often very complicated due to ________.
A) governmental regulations on permitted rent increases
B) their long time duration
C) the uncertain cost of interest over the lease time period
D) the possibility of tenant bankruptcy
Answer: B
Diff: 2 Page Ref: 293
Skill: Applied/Comprehensive/Integrative
64) Which lease type gears a retailer's rental costs to its ability to pay?
A) maintenance-increase-recoupment provision
B) straight lease
C) net lease
D) percentage lease
Answer: D
Diff: 1 Page Ref: 293
Skill: Applied/Comprehensive/Integrative
65) A major advantage of a percentage lease versus a straight lease from the perspective of the property owner is ________.
A) its simplicity
B) that rental income is known
C) that rental income more accurately reflects increases in a property's value and inflation
D) that retail sales do not have to be audited
Answer: C
Diff: 1 Page Ref: 293
Skill: Applied/Comprehensive/Integrative
66) A retailer's sales must be audited by the property owner in which type of lease?
A) percentage lease
B) straight lease
C) net lease
D) graduated lease
Answer: A
Diff: 2 Page Ref: 293
Skill: Applied/Comprehensive/Integrative
67) 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?
A) percentage lease
B) graduated lease
C) net lease
D) maintenance-increase-recoupment lease
Answer: A
Diff: 2 Page Ref: 293
Skill: Applied/Comprehensive/Integrative
68) Which form of lease/ownership arrangement has the greatest flexibility from the perspective of the retailer?
A) a 15-year lease
B) purchase of the property with 10 percent down; a mortgage loan is taken out for the balance
C) a sale-leaseback for 15 years
D) a short-term lease (5 years) with two renewal option periods of 5 years each
Answer: D
Diff: 2 Page Ref: 293-294
Skill: Applied/Comprehensive/Integrative
69) Which two lease provisions set rental terms on the basis of actual operating costs?
A) percentage lease and straight lease
B) graduated lease and percentage lease
C) graduated lease and straight lease
D) maintenance-increase-recoupment lease and net lease
Answer: D
Diff: 2 Page Ref: 294
Skill: Applied/Comprehensive/Integrative
70) A retailer has the greatest control over property maintenance in which rental form?
A) net lease
B) straight lease
C) graduated lease
D) maintenance-increase-recoupment lease
Answer: A
Diff: 2 Page Ref: 294
Skill: Applied/Comprehensive/Integrative
71) An isolated store has no adjacent retailers with which stores can share traffic.
Answer: TRUE
Diff: 1 Page Ref: 276
Skill: Terminology/Concept
72) A secondary business district generally exists in the part of a city or town with the greatest concentration of office buildings and retail stores.
Answer: FALSE
Diff: 1 Page Ref: 277-279
Skill: Terminology/Concept
73) Many CBDs have been revitalized based on modernization programs by merchants.
Answer: TRUE
Diff: 1 Page Ref: 277-279
Skill: Terminology/Concept
74) The kinds of goods and services sold in a secondary business district are similar to those found in a neighborhood business district.
Answer: FALSE
Diff: 2 Page Ref: 279, 280
Skill: Terminology/Concept
75) Retailers with compatible merchandise lines can often increase their trading area by locating in a string versus an isolated location.
Answer: TRUE
Diff: 1 Page Ref: 280
Skill: Terminology/Concept
76) Balanced tenancy is generally obtained through lease restrictions relating to store hours, days open, and interior design.
Answer: FALSE
Diff: 2 Page Ref: 280
Skill: Terminology/Concept
77) There are fewer regional shopping centers than community or neighborhood shopping centers.
Answer: TRUE
Diff: 1 Page Ref: 283
Skill: Terminology/Concept
78) A power center is a form of regional shopping center.
Answer: FALSE
Diff: 1 Page Ref: 285
Skill: Terminology/Concept
79) The most important single measure of a location's and site's value is the number and quality of its vehicular traffic.
Answer: FALSE
Diff: 1 Page Ref: 287
Skill: Terminology/Concept
80) Pedestrian and vehicular traffic counts are typically measured through observation.
Answer: TRUE
Diff: 2 Page Ref: 287-288
Skill: Terminology/Concept
81) The compatibility of a retailer with its adjacent retailers is its level of retail balance.
Answer: FALSE
Diff: 1 Page Ref: 290
Skill: Terminology/Concept
82) A compromise in terms of occupancy between ownership and leasing is the sale-leaseback.
Answer: TRUE
Diff: 2 Page Ref: 293
Skill: Terminology/Concept
83) A percentage lease is the simplest form of lease to negotiate and implement.
Answer: FALSE
Diff: 2 Page Ref: 293
Skill: Terminology/Concept
84) A net lease is typically used in conjunction with a straight or percentage lease.
Answer: TRUE
Diff: 2 Page Ref: 294
Skill: Terminology/Concept
85) A knockout factor for a specific location is a short duration lease.
Answer: TRUE
Diff: 1 Page Ref: 295
Skill: Terminology/Concept
86) An isolated store location is not appropriate for a destination store.
Answer: FALSE
Diff: 2 Page Ref: 276
Skill: Applied/Comprehensive/Integrative
87) An isolated store has no affinities.
Answer: TRUE
Diff: 2 Page Ref: 276, 290
Skill: Applied/Comprehensive/Integrative
88) Generally, retail balance is better in a shopping district than a shopping center.
Answer: FALSE
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
89) Balanced tenancy seeks to develop and maintain an undersaturated trading area for all types of merchandise.
Answer: FALSE
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
90) Neighborhood business districts and neighborhood shopping centers generally have a similar retail tenant mix.
Answer: TRUE
Diff: 2 Page Ref: 280, 285-286
Skill: Applied/Comprehensive/Integrative
91) The retailers in a string have low affinities with one another.
Answer: FALSE
Diff: 2 Page Ref: 280
Skill: Applied/Comprehensive/Integrative
92) The primary, secondary, and fringe trading areas of a megamall should be lower than for a traditional regional shopping center.
Answer: FALSE
Diff: 2 Page Ref: 288, 283-284
Skill: Applied/Comprehensive/Integrative
93) A one-hundred percent location for one retailer may not be a one-hundred percent location for another retailer, due to the need for different affinities or different target market customers.
Answer: TRUE
Diff: 1 Page Ref: 287
Skill: Applied/Comprehensive/Integrative
94) A one-hundred percent location for a bakery could be next to a supermarket in a neighborhood shopping center.
Answer: FALSE
Diff: 2 Page Ref: 287
Skill: Applied/Comprehensive/Integrative
95) In evaluating a location in a regional shopping center, pedestrian traffic counts should be taken on the same time of day, day of week, and location.
Answer: FALSE
Diff: 1 Page Ref: 288
Skill: Applied/Comprehensive/Integrative
96) The parking adequacy of a location should be measured by its ability to handle Christmas season shoppers.
Answer: FALSE
Diff: 1 Page Ref: 290
Skill: Applied/Comprehensive/Integrative
97) Two stores with high affinities for one another have a high degree of shopper interchange.
Answer: TRUE
Diff: 2 Page Ref: 290
Skill: Applied/Comprehensive/Integrative
98) Short-lease terms with renewal options give retailers flexibility, as well as the ability to continue in a location at a pre-negotiated rate.
Answer: TRUE
Diff: 2 Page Ref: 292
Skill: Applied/Comprehensive/Integrative
99) A percentage lease ties rental terms to a location's value, inflation, and the retailer's ability to pay.
Answer: TRUE
Diff: 1 Page Ref: 293
Skill: Applied/Comprehensive/Integrative
100) In both maintenance-increase-recoupment and net lease arrangements, a retailer's rental payments reflect actual increases in operating costs.
Answer: TRUE
Diff: 1 Page Ref: 294
Skill: Applied/Comprehensive/Integrative
101) a. "Often the retailers that are attracted to an isolated location are those that are least suitable for this location form." Explain this statement.
b. What trade-offs should a retailer evaluate in considering an isolated store location? Explain.
Diff: 2 Page Ref: 276-277
102) Differentiate between a central business district and a regional shopping center.
Diff: 1 Page Ref: 277-279, 283-284
103) a. Describe why retailers often seek out a string location.
b. Evaluate the suitability of a string versus a neighborhood business district location for a men's apparel retailer. Include the concepts of trading area, retail balance, and market share in your analysis.
Diff: 2 Page Ref: 280
104) Describe the pros and cons of a location in a planned shopping center versus a shopping district location.
Diff: 1 Page Ref: 280, 277
105) Explain how retail balance is obtained in an unplanned business district versus a planned shopping center.
Diff: 1 Page Ref: 280, 277
106) Factory outlets and off-price chains have increasingly located in "off-price malls." These malls are commonly owned and planned as a unit. Is an off-price mall a regional or a community shopping center? Explain your answer.
Diff: 1 Page Ref: 283-285
107) a. Develop a location and site evaluation for a Dunkin' Donuts franchise.
b. Explain the location attributes listed and their relative importance.
Diff: 2 Page Ref: 287-291
108) What factors need to be considered in the computation of pedestrian traffic counts for a children's clothing chain? ...vehicular traffic counts?
Diff: 1 Page Ref: 287-288
109) Under what conditions should a retailer consider ownership instead of leasing? ...leasing instead of ownership? ...a sale-leaseback?
Diff: 1 Page Ref: 292, 293
110) What are the advantages and disadvantages to a retailer of the following types of leases?
a. Straight lease
b. Percentage lease
c. Graduated lease
d. Net lease
Diff: 2 Page Ref: 293-294
111) Prepare a checklist of lease clauses that should be considered by a retailer prior to purchasing a business. Discuss the importance of each clause.
Diff: 2 Page Ref: 293-294
112) Prepare a list of five knockout factors that would disqualify an otherwise satisfactory retail location. Describe why each factor is important.
Diff: 2 Page Ref: 293-295
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