Retail: Exam 2: Chapter 7 – Flashcards
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Many urban areas are going through a process of gentrification-- the renewal and rebuilding of offices, housing, and retailers in deteriorating areas—coupled with an influx of more affluent people that displaces the former poorer residents. True False
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T
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A strip center is a shopping center that is designed to provide convenience shopping for the day-to-day needs of consumers in their immediate neighborhood. True False
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T
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Tourists are the biggest group of customers that go to theme/festival centers. True False
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T
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Destination stores are stores where consumers will go even if it's inconvenient. True False
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F
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A pop-up shop is an updated version of the mom and pop retail convenience store. True False
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F
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Freestanding stores rely mostly on foot-traffic to bring in customers. True False
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F
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Sam's Club requires a tremendous amount of operating space; therefore, you are most likely to find them located ___________. A. in a neighborhood center B. in discount-anchored centers C. in central business districts D. at freestanding sites E. in off-price centers
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D
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What are the advantages gained from locating in a freestanding site? A. high rent, but visible location B. ample parking for customers C. synergistic direct competition D. restrictive hours E. increased foot traffic
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B
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In downtown Lincoln, old buildings have been modernized; cracked sidewalks have been replaced with wide brick walks; and a new multi-purpose office building has opened. This is an example of: A. Modernization B. Trade zone expansion C. Retail segmentation D. Commercialization E. Gentrification
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E
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Why are retailers interested in locating in urban centers that have been through gentrification? A. The influx of more affluent people into the urban area is attractive to retailers. B. Multilevel malls are better for the environment. C. Retailers are finding carts and kiosks more efficient. D. Retailers are responding to the consumer trend of cocooning. E. The size of trade areas is shrinking.
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A
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Where is a central business district typically located? A. downtown business areas B. airports, hotel lobbies and convention centers C. shopping strips D. marketing complexes E. shopping malls
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A
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Many companies are capitalizing on people being at the airports longer and not able to carry on much for personal health and beauty aids. A vending machine selling cosmetics and perfume at an airport is a _____________. A. kiosk B. parasite store C. store within a store D. timed leased agreement store E. pop-up shop
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A
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The anchor stores in a shopping mall are traditionally: A. department stores B. stand alone stores C. specialty shops D. discount stores E. category killers
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A
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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 baby gift for his new niece. Conveniently enough, next door to that store was a Kroger supermarket, where he purchased essentials like milk and cornflake cereal. Phil was shopping in what type of shopping center? A. central business district B. mixed-use development C. mall D. power center E. neighborhood center
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E
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Corleon needed a new jacket for the approaching cooler weather. She decided to drive twenty minutes to a shopping center. Once there, she searched for a parking spot, and walked to get to the stores. However, once inside, she could remain warm and walk leisurely to a variety of stores which carried the assortments she sought. Corleon was shopping in what type of shopping center? A. central business district B. mixed-use development C. shopping mall D. power center E. strip center
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C
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Which of the following statements about shopping malls is TRUE? A. Each retailer is responsible for the external environment outside its store. B. Managers of shopping malls either want to have all specialty stores or all shopping goods stores--never a mix of the two. C. Shopping malls have lower rents than central business districts. D. The tenant mix in a shopping mall is not planned. E. There are uniform hours of operations for all retailers.
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E
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What are some of the challenges being 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.
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D
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JC Penney has many Sephora cosmetic shops within its stores. This would be an example of a __________. A. kiosk B. symbiotic relationship between JCPenney and Sephora C. store within a store D. timed leased agreement E. pop-up shop
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C
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Shopping centers that focus on posh neighborhoods, high-income areas with an outdoor, traditional streetscape are considered to be _______. A. convenience centers B. regional malls C. off-price centers D. outlet centers E. lifestyle centers
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E
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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
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E
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The Watertower Place on Michigan Avenue in Chicago contains Saks Fifth Avenue, Nordstrom, many high-quality boutiques, amongst office space and residential condominiums. It is an example of a(n): A. lifestyle center B. mixed-use development C. outlet center D. off-price center E. price-oriented center
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B
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Where would you most likely find a lifestyle center? A. at interstate interchanges B. in high-income neighborhoods C. in low-income neighborhoods D. in small towns E. near discount store malls
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B
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The Home Laughlin China Company of Newel West Virginia manufactures Fiesta China in a variety of colors. The factory has a store where they feature Fiesta products that are discounted or discontinued. Patrons come in to shop with crates expecting to purchase the Fiesta products in large quantities. This type of store can be considered: A. lifestyle center B. a mixed-use development C. an outlet store D. regional center E. festival center
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C
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__________ can be defined as shopping centers that employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. They are typically designed to appeal to tourists. A. Center replicas B. Price-oriented centers C. Regional centers D. Specialty centers E. Theme/festival centers
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E
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A shopping center that would include Dillard's, Sam's Club, JCPenney, Borders and Best Buy while combining a mall, lifestyle center and power center characteristics in a unified layout can best be described as a(n): A. omnicenter B. regional mall C. strip center D. theme/festival center E. community shopping center
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A
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Why are airports such a profitable place to have a retail business? A. Airport leases are affordable and short-term. B. Tourists find unique stores at airport not available to them at other shopping centers. C. Travelers tend to carry more money than a traditional shopper. D. Changes in security have encouraged travelers to arrive earlier and make more purchases after they go through security. E. Airport retailers can pay employees lower wages than what they pay at other shopping centers.
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D
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When Rebekah took her kids to Kmart, she noticed a Little Caesar's Pizza restaurant near the entrance, which prompted her to stop for lunch. This restaurant is a great example of a/an: A. kiosk B. power center C. store-within-a-store D. timed leased agreement E. pop-up shop
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C
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A(n) _____ is one in which the merchandise, selection, presentation, pricing, or other unique factor attract customers even if it is in an inconvenient location. A. demand-oriented service-provider B. ultimate merchandiser C. destination store D. ultimate provider E. supply-oriented service-provider
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C
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Lowe's and Best Buy would most likely be found in a _________ shopping center. A. power B. regional C. strip D. theme/festival E. central-business
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A
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The Hobby Shop features hand-crafts, model trains, cars and planes as well as classes. It doesn't matter where it is located as it seems to have a natural draw. What type of store is the Hobby Shop? A. demand-oriented service-provider B. ultimate merchandiser C. destination store D. ultimate provider E. supply-oriented service-provider
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A
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What type of product will a consumer look for without regard to time, money or effort? A. impulse product B. time-crunch product C. comparison product D. convenience product E. specialty product
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E
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The major retailers, typically a large department store or big box store in a shopping center is referred to as the __________ store. A. parasite B. anchor C. location rival D. leader E. alpha
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B
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The retailers that attract a significant number of consumers and make the center more appealing for other retailers are ___________ stores. A. parasite B. anchor C. location rival D. leader E. alpha
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B
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Developers will usually look for ____________ to build lifestyle centers. A. small towns B. middle- class neighborhoods C. high-income neighborhoods D. interstate interchanges E. inner city locations
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C
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Breanne was walking across campus to her chemistry lab when she noticed an area that had Victoria Secret merchandise that was not there earlier in the week. This retail format would be an example of a ______. A. kiosk B. parasite store C. store within a store D. timed leased agreement E. pop-up shop
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E
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Why is choosing a good location such an important decision for a retailer?
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First, location is typically the prime consideration in a customer's store choice decision. Second, location decisions have strategic importance because they can be used to develop a sustainable advantage. Third, location destinations are risky. Typically, when retailers select a location, they have to either make a substantial investment to buy and develop real estate or commit to a long-term lease.
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Mall traffics and sales have been declining. What are the challenges that shopping malls face?
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The biggest challenge faced by shopping malls is that shopping malls appeal to customers that have the time and enjoy wandering through stores. The increasing number of two-income families with a single head of household is creating more time pressures for consumers limiting the time they have to shop. Second, most retailers in shopping malls sell fashionable apparel, a merchandise category that has seen limited growth due to more casual life styles. Third, some malls are old and have not been remodeled. Fourth, the consolidation in retailing, particularly in the department store sector, has decreased the number of potential anchor tenants, leaving some malls with diminished drawing power.
