Retailing Management, 10e (Levy)
Chapter 7 Retail Locations
1) A trade area is the geographic area encompassing most of the customers who would patronize a
specific retail site.
2) Gross leasable area (GLA) is the real estate industry’s term for the total floor area designed for
the retailer’s occupancy and exclusive use, including any basements, mezzanines, or upper floors.
3) The inner city is the traditional downtown financial and business area in a city or town.
4) Power centers are shopping centers that have an open-air configuration of specialty stores,
entertainment, and restaurants, with design ambience and amenities such as fountains and street
furniture.
5) Outlet centers are shopping centers that contain mostly manufacturers’ and retailers’ outlet
stores.
6) Pop-up stores are stores in temporary locations that focus on new products or a limited group of
products.
7) When consumers are engaged in comparison shopping situations, they are primarily concerned
with minimizing their effort to get the product or service they want.
8) When consumers go specialty shopping, they know what they want and will not accept a
substitute.
9) Urban sprawl is the increased expansion of residential and shopping center development in
suburban and rural areas outside of their respective urban centers.
10) Building codes are legal restrictions that specify the type of building, signs, size and type of
parking lot, and so forth that can be used at a particular location.
11) The maintenance of common facilities, security, advertising, and special events to attract
consumers are handled by the shopping center management and are covered under ________
costs.
A) common area maintenance
B) community coverage
C) location revival
D) uniform code
E) development preservation
12) Jake is looking to rent a retail space in a shopping center for his restaurant business. He is
looking for a space of around 250,000 square feet with annual occupancy cost of around $50 per
square feet. An ideal space should be high on pedestrian traffic but low on vehicular traffic. Which
of the following locations will best suit Jake?
A) Neighborhood and community shopping centers
B) Power centers
C) Regional and super-regional enclosed malls
D) Theme/festival centers
E) Outlet centers
13) Which of the following locations is typically the best for a supermarket?
A) Regional and super-regional enclosed malls
B) Lifestyle centers
C) Neighborhood and community shopping centers
D) Outlet centers
E) Theme/festival centers
14) A supermarket requires a large amount of operating space. Therefore, it is most likely to be
located in a
A) shopping mall.
B) life-style center.
C) freestanding site.
D) central business district.
E) off-price center.
15) Which of the following is an advantage of freestanding locations?
A) Unlimited trade area
B) High pedestrian traffic
C) Light pedestrian traffic
D) Less expensive compared to shopping centers
E) High vehicular traffic
16) Which of the following is a disadvantage of freestanding sites?
A) Hard to access
B) Limited trade area
C) Heavy restrictions
D) Low vehicular traffic
E) Low visibility
17) Where is a central business district typically located?
A) Downtown area
B) Rural area
C) Semi-urban area
D) Airport
E) Shopping malls
18) James is a store manager at Fresco. His store is located in the traditional downtown financial
business area in the city. In which of the following classifications of retail locations is James’ store
located?
A) Semi-urban area
B) Gentrified residential area
C) Inner city
D) Main street
E) Central business district
19) Which of the following statements is true of a central business district?
A) It has low pedestrian traffic.
B) It has limited vehicular traffic.
C) It provides inexpensive retail space.
D) The shopping flow is fast during weekends.
E) The shopping flow is fast during evenings.
20) The inner city is a
A) high-income commercial area within a large city.
B) low-income commercial area within a small city.
C) high-income residential area within a small city.
D) low-income residential area within a large city.
E) high-income commercial area within a small city.
21) Which of the following statements is a reason why U.S. retailers avoid opening stores in the
inner city?
A) The retailers keep away from the inner city because of the rising cost of real estate.
B) The retailers keep away from the inner city because of stringent government regulations.
C) The retailers think these stores are riskier and produce lower returns than other areas.
D) The retailers keep away from the inner city because of the lack of competent human resources.
E) The retailers keep away from the inner city because of complications in the supply chain.
22) Urban customers typically place more importance on
A) reducing their shopping time.
B) diversity of the retailer’s assortment.
C) reducing their shopping expense.
D) finding better bargains.
E) getting all possible alternatives.
23) Which of the following is a disadvantage of main street locations?
A) High occupancy cost
B) Heavy pedestrian traffic
C) Heavy vehicular traffic
D) Wide range of entertainment and recreational activities to choose from
E) Small overall draw
24) The retailers that attract a significant number of consumers and consequently make the center
more appealing for other retailers are ________ stores.
A) parasite
B) anchor
C) location rival
D) leader
E) alpha
25) The major retailers in a shopping center, typically large department stores or big-box stores,
are referred to as the ________ stores.
A) parasite
B) anchor
C) location rival
D) leader
E) alpha
26) Which of the following statements is not a responsibility of the shopping center property
management firm?
A) Maintain the parking lots.
B) Ensure that the parking lot has good lighting.
C) Maintain the outdoor signage for the shopping center.
D) Create special events to attract customers to the shopping center.
E) Provide temporary holiday sales staff for retailers.
27) On his way home from work, Phil stopped at a shopping center. He parked in front of the dry
cleaner, where he could pick up his suit. He did not have to move his car because next door was a
gift shop where he could pick up a gift for his niece. Conveniently enough, next door to that store
was a supermarket, where he purchased essentials like milk and cornflake cereal. Phil was
shopping in which type of shopping center?
A) Lifestyle center
B) Mixed-use development center
C) Enclosed shopping mall
D) Power center
E) Strip shopping center
28) As Leah drove down Fairfax Road, she noticed a group of adjacent stores. In the group, she
saw a hair salon, a pizzeria, a supermarket, an optometrist, and a grocery store. All the stores had
entrances into a parking lot, which was landscaped with trees and flowers. What type of shopping
center is this?
A) Mixed-use development center
B) Lifestyle center
C) Outlet center
D) Neighborhood shopping center
E) Theme/festival center
29) Full-line discount stores are typically located in
A) omnicenters.
B) power centers.
C) community shopping centers.
D) marketing complexes.
E) lifestyle centers.
30) ________ are shopping centers that consist primarily of collections of big-box retail stores,
such as full-line discount stores, off-price stores, warehouse clubs, and category specialists.
A) Neighborhood shopping centers
B) Power centers
C) Enclosed shopping malls
D) Lifestyle centers
E) Outlet centers
31) Lowe’s and Best Buy would most likely be found in a ________ shopping center.
A) power
B) regional or super regional
C) strip
D) theme/festival
E) central-business
32) Shopping centers consisting primarily of collections of big-box retail stores, such as Walmart,
TJ Maxx, Home Depot, Dick’s Sporting Goods, and Costco are called
A) community centers.
B) neighborhood centers.
C) power centers.
D) lifestyle centers.
E) theme centers.
33) Sara, a traveler, visits a climate-controlled, lighted shopping center with retail stores on both
sides of an enclosed walkway. What type of shopping center is this most likely to be?
A) Outlet center
B) Neighborhood shopping center
C) Power center
D) Enclosed shopping mall
E) Lifestyle center
34) Which of the following is an approach for dealing with aging malls and the changing
demographics in their trade areas?
A) Lowering occupancy costs
B) Increasing the number of department stores
C) Changing the hours of operation
D) Increasing square footage
E) Tailoring offerings to current markets
35) Which of the following is an advantage of enclosed shopping malls?
A) They have a large trade area.
B) Mall occupancy costs are cheap.
C) Less competition within the shopping center
D) Low pedestrian traffic
E) Low vehicular traffic
36) Which of the following statements is a disadvantage of shopping malls?
A) Each retailer is allowed to establish its hours of operation.
B) Competition is kept to a minimum because developers try not to have more than one specialty
store for each product category.
C) The mall management has no control over exterior signs.
D) Rents in malls are higher than other locations.
E) Most malls were built after 1990.
37) What of the following is a challenge faced by malls?
A) Customers are not able to stay at malls for extended periods of time because of the lack of
places to get food.
B) Foot traffic is low at malls.
C) There is little entertainment value at malls.
D) Many aging malls have not been updated and are unappealing to shoppers.
E) Mall management does not maintain consist hours of operation for retailers.
38) Because of the open-air configuration of upscale specialty stores, coupled with entertainment
and restaurants, ________ are very convenient for shoppers.
A) convenience centers
B) regional malls
C) off-price centers
D) outlet centers
E) lifestyle centers
39) Bea is a young professional living in the suburbs. She and a friend decide to meet on a Saturday
for a day of shopping, dining, and a movie. Since it’s a beautiful day outside, they wish to enjoy the
weather but also find a place that features upscale apparel shops and boutiques. They will most
likely choose to patronize a
A) lifestyle center.
B) central mall.
C) outlet mall.
D) power center.
E) mixed-use development.
40) Where would you most likely find a lifestyle center?
A) At interstate interchanges
B) In higher-income neighborhoods
C) In low-income neighborhoods
D) In small towns
E) Near discount store malls
41) What type of shopping center has an open-air configuration of specialty stores, entertainment,
and restaurants?
A) Omnicenters
B) Power centers
C) Shopping strips
D) Marketing complexes
E) Lifestyle centers
42) Developers will usually look for ________ to build lifestyle centers.
A) small towns
B) middle-class neighborhoods
C) higher-income neighborhoods
D) interstate interchanges
E) inner city locations
43) An old factory was converted into condominiums on the top six floors, a health club on the
fourth floor, offices on floors two and three, and specialty shops and restaurants on the ground
floor. This would be an example of a(n)
A) omnicenter.
B) mixed-use development.
C) multiformat development.
D) theme/festival center.
E) super regional mall.