66) What is the difference between multiple regression analysis and the analog approach?
A) The analog approach gathers its information through nationwide customer surveys.
B) Multiple regression analysis uses geo-demographic segmentation systems to determine
potential sales in a new market.
C) The analog approach uses statistics rather than judgment to predict sales.
D) Multiple regression analysis uses statistics rather than judgment to predict sales at existing store
locations.
E) Multiple regression analysis cannot be used to determine potential sales like the analog
approach.
67) With regression analysis used in location analysis, predictor variables are selected. Which of
the following predictor variables would be more useful for a retailer who is contemplating opening
a day care center than for a retailer of used books?
A) Number of households with children not attending school
B) Educational level of households
C) Average age of homes in trade area
D) Average age of head of household
E) Average number of cars in each household
68) When using the ________, the retailer simply describes the site and trade area characteristics
for its most successful stores and attempts to find a site with similar characteristics.
A) Huff gravity model
B) regression model
C) analog model
D) location model
E) cumulative attraction model
69) Which of the following is typically the step after conducting a competitive analysis during site
selection?
A) Define present trade area.
B) Analyze trade area characteristics.
C) Conduct a situational analysis.
D) Match characteristics of present trade area with potential sites.
70) Which of the following is typically the last step in site selection?
A) Define present trade area.
B) Analyze trade area characteristics.
C) Conduct a situational analysis.
D) Match characteristics of present trade area with potential sites.
71) Which of the following are the two basic types of leases?
A) The service lease and the strip lease
B) The percentage lease and the fixed-rate lease
C) The incentive lease and the parallel lease
D) The development lease and the associated lease
E) The multiplex lease and the single unit lease
72) Which of the following leases are most commonly used by community and neighborhood
centers?
A) Percentage lease
B) Pro bono lease
C) Sliding scale lease
D) Fixed-rate lease
E) Variable-rate lease
73) Demarkus finally received financial backing from his wealthy aunt in order to open a pawn
shop. He contacted the landlord of a nearby shopping center since he had his eye on a vacant
storefront. To his surprise, his request for a lease was denied. What most likely prevented the
landlord from leasing to Demarkus?
A) A fixed-rate clause
B) An escape clause
C) A licensing clause
D) A prohibited-use clause
E) An exit clause
74) A(n) ________ limits the shopping center management from leasing to certain kinds of
tenants.
A) fixed-rate clause
B) cotenancy clause
C) exclusive-use clause
D) common area maintenance clause
E) prohibited-use clause
75) A shopping center landlord who has the agreement to increase the rent by a fixed amount over
a specified period of time has negotiated a
A) fixed-rate lease.
B) graduated lease.
C) maintenance-increase-recoupment lease.
D) sliding scale lease.
E) percentage increase lease.
76) A(n) ________ prohibits the landlord from leasing to retailers that sell competing products.
A) prohibited-use clause
B) exclusive-use clause
C) escape clause
D) fixed-rate leases
E) inclusive-use clause
77) What factors should be considered in locating stores? Why should retailers consider those
factors?
78) What are the characteristics of a site that affect store sales and thus are considered in selecting
a site?
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79) Compare and contrast when it is essential for a retailer to have good visibility and accessibility,
and in which cases these attributes are less important.
80) Why would Save-A-Lot grocery store choose to be located in the same strip mall as Dollar
General and Walmart?
81) Identify the three different trade area zones and indicate for each of the different geographic
area what percentage of customers makes up from each zone.
82) Mention the factors affecting the size of the trade area.
83) Where can retailers obtain information about the nature of consumers in a trade area?
84) Describe what customer spotting is, its purpose, and the three approaches for obtaining
information by means of customer spotting.
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85) Identify and describe the two different approaches used to estimate the potential sales for a
store site.
86) Mention the steps undertaken using the analog approach.
87) What are two main issues to consider when negotiating a store’s lease?
88) List out and define the different terms of leases.