MKT 461/ MKT461 Exam 2 [Solved] Updated with Correct Answers

MKT 461 Exam 2 Why is location important? - ANS: •One of the most influential considerations by consumer. •Can be used to develop sustainable competitive advantage. •Location decisions are risky: buy or lease? Unplanned locations - ANS: •do not have centralized management that determines what stores will be in a development. Planned locations - ANS: the shopping center and/or manager makes and enforces policies that govern store operations. Retailer considerations for location type - ANS: •Size of the trade area. •Occupancy cost of the location. •Pedestrian and vehicle customer traffic. •Restrictions placed on store operations by the property manager. •Convenience of the location for customers. Advantages of freestanding sites - ANS: •Convenience. •High traffic and visibility. •Modest occupancy costs. •Fewer restrictions. Disadvantages of freestanding sites - ANS: •Limited trade area. •Little pedestrian traffic. •Higher occupancy costs. Outparcel - ANS: are located on outskirts of a shopping center. Advantageous locations for some, such as banks and fast-food restaurants. Examples of unplanned locations - ANS: Freestanding sites Urban locations Main street Urban locations - ANS: -Central Business District -Inner City -Gentrified Residential Areas Inner city - ANS: typically a high-density urban area consisting of apartment buildings populated primarily by ethnic groups. Central business district - ANS: the traditional downtown business area of a city or town.