44) In terms of trade areas, the owner of Bubba’s Bar and Grille defines his ________ as the
geographic area in which 70 percent of his customers live.
A) primary trading area
B) fundamental market
C) geographic market
D) secondary trading area
E) tertiary trading area
45) Schnuck’s Grocery Store is located in St. Louis, Missouri. The owner has taken a map and has
drawn three different sized shapes around the store’s location. Those people that are located in only
the largest shape, which is beyond a 15-minute drive radius of the store. are in what’s referred to as
the store’s
A) geographic market.
B) market trading area.
C) delineated market.
D) tertiary trading area.
E) inclusive trading area.
46) Which of the following is not a factor affecting the size of the trade area?
A) Natural and physical barriers
B) Competition
C) Assortment offered
D) Accessibility
E) Type of lease
47) Which of the following statements is not true when describing the size of trade area?
A) Convenience stores’ trade areas are relatively small.
B) Category specialists have relatively large trade areas.
C) A retailer like Starbucks has a large trade area.
D) A retailer like IKEA has large trade areas.
E) A retailer like Best Buy has large trade areas.
48) Alyssa needed a new stirrup for her saddle. She had to drive 30 miles to the Western Tack store
in order to make the purchase. To Alyssa, the Western Tack store is an example of a
A) destination store.
B) drawing store.
C) magnet store.
D) country goods store.
E) tertiary-zoned store.
49) Which of the following examples would customers least likely consider a destination store?
A) A shoe store that will dye shoes to match dresses
B) The drug store with the lowest priced pharmaceuticals
C) The home improvement store
D) A health and organic product store
E) A gas station also selling milk and eggs
50) Which of the following is not a destination store?
A) Bath & Body Works
B) IKEA
C) AMC Movie Theaters
D) The Home Depot
E) Kroger grocery store
51) The Mediterranean Cafe features light cuisine and folk entertainment. It is located in the
middle of an upper-class neighborhood. The owners want to know where the customer base lives
so that they can send direct mail to those areas. For the last several weeks, employees scoped the
parking lot noting license plate numbers so they could have a private research company trace them
to the owners. Which of the following is the Mediterranean Café engaging in?
A) Customer clustering
B) Residential research
C) Financial demographics
D) Geographic research
E) Customer spotting
52) When Benjamin purchased a camera at Best Buy, the cashier asked him for his home zip code.
Which of the following approaches was Best Buy using to identify the trade area for the store?
A) Customer clustering
B) Residential research
C) Financial demographics
D) Geographic research
E) Customer spotting
53) ________ is the process of locating the residences of customers for a store on a map and
displaying their positions relative to the store location.
A) Customer spotting
B) Buying power tracking
C) The analog approach
D) Customer clustering
E) Pirating
54) Which of the following can be used to determine how many people are in a trade area and
where they live?
A) Customer spotting
B) Demographic USA’s Buying Power Index
C) Analog approach
D) Customer clustering
E) Centralization
55) The Village Green, a women’s clothing store, took a map of the city and the checks written by
its customers during the last quarter. The store’s owner then marked the address of each customer
on the map with a map pin. By looking at where the pins clustered on the map, she could determine
her trade area. She was engaged in
A) geographic research.
B) customer spotting.
C) financial demographics.
D) customer clustering.
E) residential research.
56) What is the drawback of using data from the U.S. Census Bureau?
A) The information in the Census is only for metropolitan areas.
B) The information included is gathered only once every 10 years.
C) It is expensive to purchase and retailers usually find other means for the information.
D) The Census provides only numbers of people in an area, not specifics like household income,
level of education, etc.
E) The information provided requires interpretation by analysts.
57) What is a census block?
A) An area bounded on all sides by visible and invisible features
B) A block of specific residents sharing similar demographics
C) A specific census used in comparison studies to demonstrate regional changes
D) A block including specific educational and economic status
E) A collection of adjacent blocks that contain between 600 and 3,000 people
58) Which of the following is not true about U.S. census data?
A) The census track is the smallest geographic entity for which census data is available.
B) There are 8 million census blocks in the United States, each containing the residences of about
40 people.
C) The block group is a collection of adjacent blocks that contain between 600 and 3,000 people.
D) Census data are collected every 10 years.
E) The data are not particularly user-friendly.
59) The key feature of ________ data is that they are identified with a coordinate system (latitude
and longitude) that references a particular place on Earth.
A) geographical information system (GIS)
B) projection map (PM)
C) trade area topographical map (TATM)
D) retail information system (RIF)
E) PRIZM system
60) Which of the following statements is not true of geographic information systems?
A) They are used by retailers to find locations that maximize their sales and profits.
B) Their use develops a deeper understanding of the trade areas.
C) They combine demographic data, consumer spending patterns, and lifestyles in a geographic
area.
D) They are based only on demographic census data.
E) Examples of GIS suppliers include ESRI, Nielsen, and Pitney Bowes.
61) ESRI and other GIS suppliers have developed schemes for classifying geographic areas. The
ESRI Tapestry Segmentation scheme classifies neighborhoods into 67 distinctive segments. How
would you classify the following person? Thomas is a recent college graduate who accepted a
merchant training position with Macy’s in New York City. After six months, his strong
performance at the company led to a promotion to assistant buyer and a raise. Each evening he
either goes to a yoga class or relaxes at home streaming a movie. He enjoys traveling to Colorado
on long weekends in the winter to go downhill skiing. Which of the following most accurately
describes Thomas?
A) Chic
B) Metro Renter
C) Metropolitans
D) Main Street, USA
E) Laptops and Lattes
62) Which of the following statements is true about the Spending Potential Index?
A) It compares the local average expenditure by product to the national average amount spent.
B) It compares sales predictions based on various retail locations.
C) It is an index that provides retailers who are thinking of expanding into international markets
with data on what consumers spend.
D) It compares what retailers spend on real estate in a given market and compares it to the national
average.
E) It offers retailers information on property values as well as local tax information so they are
better able to compare prior to purchasing.
63) When it became apparent that the drawing power to a particular Walmart store was very
strong, because every day there would be long lines and empty shelves despite all cashier lanes
open and plenty of stockers, Walmart opened another store within 10 miles of that store to try and
reduce the amount of business at the over-demand store. This is an example of utilizing ________,
but for the good of the retailer.
A) artificial barriers
B) cannibalization
C) congestion
D) fringe trading
E) drawing power
64) Which of the following statements does not describe the appropriate use of different
approaches for site selection?
A) Large retailers often use the Huff Gravity Model to estimate potential sales for a store site
before site selection.
B) Regression analysis can consider the effects of wide range of factors affecting sales in stores.
C) The regression analysis is appropriate for small chains to find the best location.
D) Using the analog approach, the retailer describes the site and trade area characteristics for its
most successful stores and attempts to find a site with similar characteristics.
E) The analog approach is not recommended for large chain stores like Walmart.
65) Which best describes the analog method and regression analysis?
A) Approaches for using information about the trade area to estimate the potential sales for a store
at the location
B) Analyses based on the premise that “birds of a feather flock together”
C) Two ways of analyzing the best lease options
D) Methods that compare the potential of cannibalization
E) Models that compare sustainable competitive advantages of one retailer to another