Flexible element of a retailer's strategy mix is. A merchandise assortment



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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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