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Chapter 07 - Retail Locations
Chapter 07
Retail Locations
True / False Questions
1. A trade area is the geographic area encompassing most of the customers who would
patronize a specific retail site.
True False
2. 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
3. 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
4. Tourists are the biggest group of customers that go to theme/festival centers.

True False
5. The shopping situation where consumers are not willing to spend much effort to get the
product or service they need is referred to as effortless shopping.
True False
6. Destination stores are stores where consumers will go even if it's inconvenient.
True False
7. A pop-up shop is an updated version of the mom and pop retail convenience store.
True False
7-1
8. A restriction limiting the maximum size of a retailer's outside sign is a building code.
True False
9. Freestanding stores rely mostly on foot-traffic to bring in customers.

True False
Multiple Choice Questions
10. Which is NOT an advantage in choosing a free-standing store as your retail location?
A. easy parking
B. visibility to customers who drive by
C. few restrictions on signs
D. pedestrian traffic that might drop in because they are walking by
E. separate from competition
11. 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
12. 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
7-2
13. The most serious disadvantage inherent in a freestanding site is:

A. no mall management
B. lack of restrictions on merchandise sold
C. loss of the ability to restrict hours of operation
D. loss of direct competition
E. limited trade area
14. Why would a small retailer be interested in a kiosk?

A. A kiosk can offer more variety than a permanent retailer.
B. Kiosks provide better prices than the competition.
C. Shoppers prefer kiosks because it offers more space to shop avoiding the butt-brush effect.
D. They can fit into prime mall locations.
E. There is a greater ability to access more customers than a traditional retail store.
15. Why would a small retailer NOT be interested in opening a mall kiosk?
A. Kiosks can be in prime locations.
B. A kiosk is relatively inexpensive compared to a regular sized store.
C. The high foot traffic can be helpful for testing the response to new products.
D. The retailer can offer seasonal merchandise then closes after the season.
E. The rent per square foot is very expensive.
16. Scott wants to open a holistic medicine shop with merchandise he claims will cure the
common cold. He has $26,000 to invest in the business. How might a kiosk satisfy his needs?
A. He would be given a long-term lease.
B. The short-term leases can be helpful for testing the response to new products.
C. Kiosks are located outside of freestanding sites.
D. Mall managers typically have a no-compete clause in the contracts for store space rentals.
7-3
17. 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
18. 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.
19. 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
20. King Street in Charleston, South Carolina has many small professional businesses as well
as antique stores, apparel boutiques and gift shops. It can be considered an example of a
____________.
A. business complex
B. shopping center
C. multi-level marketing center
D. neighborhood business district
E. central business district
7-4
21. Why would a retailer expand to a central business district?

A. low crime rate
B. ample parking
C. high foot traffic on weekends
D. well planned layouts of surrounding area
E. professionals as customers during the weekdays
22. Which of the following statements about the central business district (CBD) is TRUE?
A. CBDs have experienced very little gentrification.
B. Like modern shopping centers, CBDs are typically well planned.
C. Shopping at CBDs is highest on weekends and at night.
D. The most successful CBDs for retailers are those with a large number of residents living in
the area.
23. Main Street locations usually offer:

A. entertainment and recreational activities.
B. full-line stores of Saks, Nordstrom and Dillards.
C. fewer shoppers than CBDs.
D. higher rents than traditional central business districts.
E. Walmarts, Krogers and Walgreens as mainstays.
24. Which of the following statements about Main Streets as retailing centers is TRUE?
A. Main Streets tend to attract more people than central business districts.
B. Main Streets typically offer more recreation and entertainment activities than CBDs.
C. As an international concept, Main Streets are especially popular in Europe where there are
few other shopping mall options.
D. As a whole, U.S. retailers are avoiding Main Streets because it is such a new concept.
7-5
25. 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
26. What is NOT the responsibility of shopping center management?

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. 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
28. 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
7-6
29. As Elahe drove down Fairfax Road, she noticed a group of adjacent stores. In the group,
she saw a hair salon, Papa John's Pizza, a Wal-Mart, an optometrist, and a Save-A-Lot
grocery store. All the stores had entrances into a parking lot, which was landscaped with trees
and flowers. This is an example of a:
A. mixed-use development
B. central business district
C. secondary trade area
D. neighborhood and community shopping center
E. shopping mall
30. Which of the following retailers would most likely be found in a power center?
A. Lowe's and Target
B. The Sip and Sup Café and an independent retail bookstore
C. A liquor store, a convenience store, and a Laundromat
D. A flower shop, a Kmart, an independent shoe store, and a dry cleaner
E. An independent toy store, women's apparel store, dry cleaners, and shoe store
31. 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?
C. shopping mall
D. power center
E. strip center
32. 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.
7-7
33. Even though malls are a good site option for retailers, they have their disadvantages.
Which of the following describes one of these disadvantages?
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.
34. 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.
35. 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
D. timed leased agreement
E. pop-up shop
36. 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
7-8
37. Because of the open-air configuration of upscale specialty stores, coupled with
entertainment and restaurants, ____________ are very convenient for shoppers.
B. regional malls
D. outlet centers
38. 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
C. outlet center
D. off-price center
E. price-oriented center
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 movie. With it being a beautiful day outside, they
wish to enjoy the weather but also find a place that features upscale apparel shops and
boutiques. They most likely will 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 high-income neighborhoods
C. in low-income neighborhoods
D. in small towns
E. near discount store malls
7-9
41. Which of the following best describes outlet centers?

A. they are generally near regional shopping centers
B. they have no emphasis on entertainment
C. they are often located in tourist areas
D. they never offer first-quality, full-line merchandise
E. they are usually enclosed
42. 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
43. Which of the following statements about outlet centers is TRUE?

A. It is predicted that the number of outlet centers in the U.S. will double over the next
decade.
B. Outlet centers are NOT found outside of the United States.
C. Outlet centers are often located some distance from regional shopping centers.
D. Outlet centers have the no-frills look of warehouse stores.
E. Outlet centers sell only irregulars and overruns.
44. Ybor Square is a small shopping center located in the part of Tampa known as Ybor City.
The shopping center building used to be a cigar factory that prospered at the turn of the 20th
century when Cuban and Italian immigrants settled in the Tampa Bay area. Now it houses
small antique stores, bars and restaurants that have grown to be central to Ybor City's night
life. It is an example of a
A. convenience center
B. regional center
C. price-oriented center
D. specialty center
E. theme/festival center
7-10
45. __________ 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
46. 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
47. _________ are centers that often include office spaces, hotels, residential complexes, civic
centers, or convention complexes on top of or attached to a shopping center.
A. Multilevel marketing centers
B. Mixed-use developments
C. Convention centers
D. Marketing complexes
E. Urban shopping arenas
48. Mixed-use developments (MXDs) are popular with retailers because they:
A. have higher security
B. bring additional shoppers to the store
C. offer low rent
D. offer short-term leasing agreements
E. provide free storage facilities to attract retailers
7-11
49. Which of the following does NOT describe Mixed-use developments (MXDs)?
A. Retailers like MXDs because they bring additional shoppers to their stores
B. Developers avoid MXDs because of unproductive use of space
C. Urban planners like MXDs because they provide a pleasant, pedestrian environment
D. Residents like MXDs because they offer an all-inclusive environment
50. 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.
51. 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
E. pop-up shop
52. Clark was late to work one morning and decided to use the McDonald's drive-thru for his
morning cup of coffee. Normally, a coffee drinker loyal only to Starbucks, Clark was more
interested in speed due to his tardiness. Which of the following best describes Clark's
shopping situation?
A. distributive shopping
B. time-crunch shopping
C. comparison shopping
D. convenience shopping
E. specialty shopping
7-12
53. Rhonda rolled her eyes when she realized how much she had to pay for a pack of gum at
the paper stand on her way to reach her departing flight from JFK. With security lines as long
as they were, she knew she needed to hurry and pay the $2.75 for her Eclipse gum. Her
purchase situation can best be described as:
A. Distributive shopping
B. Time-crunch shopping
C. Comparison shopping
D. Convenience shopping
E. Specialty shopping
54. A critical factor affecting the location that consumers select to visit is the shopping
situation in which they are involved. What type of shopping situation should a retailer such as
Walgreen's consider?
55. 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
7-13
56. Diana wanted a German Short-haired Pointer after seeing it win the Best in Show Award
at the dog show. She searched on the Westminster Kennel Club website for a breeder, and
found one in Greenville, South Carolina. She was sure this was the breed she wanted; she was
willing to pay the expense to travel to Greenville and purchase the puppy. This type of
shopping is:
A. Demand-oriented service-provider
B. Specialty shopping
C. Ultimate provider
D. Internet shopping
E. Supply-oriented service-provider
57. The retail tenants in Underground Atlanta are similar to those found in specialty centers,
except that they are all small. Their goal is to create a unique shopping environment for
customers. What type of shopping center is Underground Atlanta?
A. power shopping center
B. regional mall
C. strip center
E. central-business district
58. 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
59. 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?
7-14
60. What type of shopping center is composed of upscale apparel shops, boutiques, and gift
shops carrying selected fashions or unique merchandise of high quality and price?
B. power centers
C. shopping strips
E. shopping malls
61. What type of shopping center has an open-air configuration of upscale specialty stores,
entertainment and restaurants?
A. omni centers
B. power centers
C. shopping strips
62. Grocery stores are typically located in _____________.

A. omni centers
B. power centers
C. shopping strips
63. Burger King, in Mequon, Wisconsin, was not allowed to have a sign taller than 10 ft., and
could not have any neon lights on the outside of the building. This is an example of the use of
a __________.
A. building code
B. blue law
C. licensing requirement
D. trading area code
E. common maintenance code
7-15
64. 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
65. In a town in Georgia, the McDonald's restaurant was required by _______ to have no sign
taller than 8 feet, no arches, and no garish or bright colors on the outside of the building.
A. building code
B. blue law
66. When the management of a shopping center maintains the common facilities and provides
security, advertising and special events to attract consumers, lease agreements require the
retailers to pay a portion of the _________ costs.
A. common area maintenance
B. community coverage
C. location revival
D. uniform code
E. development preservation
67. 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
7-16
68. 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
69. Walmart Supercenters requires a large amount of operating space. Therefore, one would
most likely find a Walmart Super center located:
A. in a shopping mall.
B. in a life-style center.
C. at freestanding sites.
D. in central business districts.
E. in off-price centers.
70. Shopping centers consist primarily of collections of big box retail stores, such as Walmart,
TJMaxx, Home Depot, Dick's Sporting Goods, and Borders is called:
A. community centers
B. neighborhood centers
C. power centers
D. lifestyle centers
E. theme centers
71. 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
7-17
72. 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
E. super regional mall
73. Which of the following types of retailers does NOT cater to shoppers who are engaged in
convenient shopping situations?
A. convenience stores
B. drugstores
C. fast-food restaurants
D. supermarkets
E. auto dealerships
74. 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
E. pop-up shop
75. As Chelsea walked through the concourse to her connecting flight to Spain, she walked by
a place selling CDs to learn a foreign language. Since she needed to brush up on her
conversational Spanish, she talked with the person standing with the cart. The cart of
merchandise would be described as a __________.
A. kiosk
B. parasite store
E. pop-up shop
7-18
Essay Questions
76. Why is choosing a good location such an important decision for a retailer?
77. What are the advantages and disadvantages of choosing a free-standing site for your retail
store?
78. Why do category specialists or "category-killer" retailers choose to locate their stores in
free standing sites or in power centers?
79. Why have many central business districts been declining in the United States and what are
developers doing to revive CBDs?
7-19
80. What are the advantages and disadvantages of strip shopping centers?
81. What are three advantages that shopping malls have over alternative locations?
82. There are seven different identifiable disadvantages that shopping malls have as compared
to other locations. Describe at least four of these disadvantages.
83. Mall traffics and sales have been declining. What are the challenges that shopping malls
face?
7-20
84. Retail developers need to take into consideration legal aspects when they are evaluating
different locations. Describe the four different main legal considerations.
85. Explain what is mixed use developments (MXDs) and how they appeal to consumers,
retailers, local governments, and developers.
7-21
Chapter 07 Retail Locations Answer Key
True / False Questions
1. (p. 168) A trade area is the geographic area encompassing most of the customers who would
patronize a specific retail site.
TRUE
Retailers evaluate the trade area when selecting a new retail site.
AACSB: Reflective Thinking

Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 07-01 What types of locations are available to retailers?
Topic: Types of Locations
2. (p. 169) 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
Many CBDs are also experiencing gentrification.

Difficulty: Easy
7-22
3. (p. 173-174) 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
Strip centers are also referred to as neighborhood and community shopping centers.

Difficulty: Easy
Learning Objective: 07-02 What are the relative advantages of each location type?
4. (p. 179) Tourists are the biggest group of customers that go to theme/festival centers.
TRUE
Tourists are theme/festivals centers target customers.

Difficulty: Easy
7-23
5. (p. 183) The shopping situation where consumers are not willing to spend much effort to get
the product or service they need is referred to as effortless shopping.
FALSE
This shopping situation is referred to as convenience shopping.

Difficulty: Easy
Learning Objective: 07-03 Why are some locations particularly well suited to specific retail strategies?
6. (p. 183) Destination stores are stores where consumers will go even if it's inconvenient.
FALSE
Destination stores are stores where consumers will go even if it's inconvenient.

Difficulty: Medium
7. (p. 181) A pop-up shop is an updated version of the mom and pop retail convenience store.
FALSE
Pop-up shops are a temporary retail location that focuses on new or limited products for a
select market.

Difficulty: Easy
Learning Objective: 07-04 Which types of locations are growing in popularity with retailers?
7-24
8. (p. 185) A restriction limiting the maximum size of a retailer's outside sign is a building code.
TRUE
Building codes are legal restrictions that can specify the size of outdoor signs.

Difficulty: Easy
9. (p. 168) Freestanding stores rely mostly on foot-traffic to bring in customers.

FALSE
The advantages of freestanding locations are their convenience for customers (easy access and
parking); high vehicular traffic and visibility to attract customers driving by.

Difficulty: Easy
Multiple Choice Questions
10. (p. 169) Which is NOT an advantage in choosing a free-standing store as your retail
location?
A. easy parking
B. visibility to customers who drive by
C. few restrictions on signs
D. pedestrian traffic that might drop in because they are walking by
E. separate from competition
Free standing stores have a limited trade area; there are no nearby retailers to also attract
additional customers.

Difficulty: Medium
7-25
11. (p. 169) 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
Freestanding sites have cheaper rent that makes the extra space necessary affordable.

Bloom's: Application
Difficulty: Easy
12. (p. 169) 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
Because of the extra space available for free-standing locations, there is plenty of parking
available for customers.

Difficulty: Medium
7-26
13. (p. 195) The most serious disadvantage inherent in a freestanding site is:
A. no mall management
B. lack of restrictions on merchandise sold
C. loss of the ability to restrict hours of operation
D. loss of direct competition
E. limited trade area
Synergy is lost because a freestanding business has no other stores to attract customers to the
area.

Difficulty: Medium
14. (p. 181) Why would a small retailer be interested in a kiosk?

A. A kiosk can offer more variety than a permanent retailer.
B. Kiosks provide better prices than the competition.
C. Shoppers prefer kiosks because it offers more space to shop avoiding the butt-brush effect.
D. They can fit into prime mall locations.
E. There is a greater ability to access more customers than a traditional retail store.
Kiosks have high customer foot traffic and benefit from impulse purchasing.

Difficulty: Medium
7-27
15. (p. 181) Why would a small retailer NOT be interested in opening a mall kiosk?
A. Kiosks can be in prime locations.
B. A kiosk is relatively inexpensive compared to a regular sized store.
C. The high foot traffic can be helpful for testing the response to new products.
D. The retailer can offer seasonal merchandise then closes after the season.
E. The rent per square foot is very expensive.
Kiosks are expensive when comparing the cost per square footage, however, since they don't
take up much space, they are considerably cheaper than a regular sized store.

Difficulty: Hard
16. (p. 181) Scott wants to open a holistic medicine shop with merchandise he claims will cure
the common cold. He has $26,000 to invest in the business. How might a kiosk satisfy his
needs?
A. He would be given a long-term lease.
B. The short-term leases can be helpful for testing the response to new products.
C. Kiosks are located outside of freestanding sites.
D. Mall managers typically have a no-compete clause in the contracts for store space rentals.
Short-term leases are common with kiosks. Kiosks are found in shopping centers and are less
expensive to rent than stores. There is no such thing as a standard no-compete clause for mall
leases.

Difficulty: Medium
7-28
17. (p. 169) 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
Gentrification occurs when old buildings are restored, and the general downtown area is
renewed.

Difficulty: Medium
18. (p. 169) 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.
Only the influx of more affluent people into the urban area is in any way related to the turning
of downtown areas into shopping centers.

Difficulty: Easy
7-29
19. (p. 170) Where is a central business district typically located?

B. airports, hotel lobbies and convention centers
C. shopping strips
E. shopping malls
CBDs are located in the downtown business area of a city or town.

Bloom's: Knowledge
Difficulty: Easy
20. (p. 170) King Street in Charleston, South Carolina has many small professional businesses as
well as antique stores, apparel boutiques and gift shops. It can be considered an example of a
____________.
A. business complex
B. shopping center
C. multi-level marketing center
D. neighborhood business district
E. central business district
CBDs are located in the downtown business area of a city or town.

Difficulty: Easy
7-30
21. (p. 170) Why would a retailer expand to a central business district?
A. low crime rate
B. ample parking
C. high foot traffic on weekends
D. well planned layouts of surrounding area
E. professionals as customers during the weekdays
CBDs attract business people who are working in the area during the weekdays.

Difficulty: Medium
22. (p. 170) Which of the following statements about the central business district (CBD) is
TRUE?
A. CBDs have experienced very little gentrification.
B. Like modern shopping centers, CBDs are typically well planned.
C. Shopping at CBDs is highest on weekends and at night.
D. The most successful CBDs for retailers are those with a large number of residents living in
the area.
The most successful CBDs are those that have residents that desire an urban experience and
want to be able to walk to do errands and shopping.

Difficulty: Medium
7-31
23. (p. 171) Main Street locations usually offer:

A. entertainment and recreational activities.
B. full-line stores of Saks, Nordstrom and Dillards.
C. fewer shoppers than CBDs.
D. higher rents than traditional central business districts.
E. Walmarts, Krogers and Walgreens as mainstays.
Main Street locations share many of the characteristics of CBDs, however the rents are
usually lower. Main Street locations experience less shoppers than CBDs because fewer
people work in the area and therefore there are less storefronts.

Difficulty: Medium
24. (p. 170) Which of the following statements about Main Streets as retailing centers is TRUE?
A. Main Streets tend to attract more people than central business districts.
B. Main Streets typically offer more recreation and entertainment activities than CBDs.
C. As an international concept, Main Streets are especially popular in Europe where there are
few other shopping mall options.
D. As a whole, U.S. retailers are avoiding Main Streets because it is such a new concept.
CBDs attract more people than Main Streets. Main Streets offer fewer recreational and
entertainment activities than CBDs. Several U.S. retailers are active supporters of Main
Streets. Internationally, the main street concept (known as High Street there) works well
because of the great population density and less space.

Bloom's: Knowledge
Difficulty: Easy
7-32
25. (p. 181) 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
E. pop-up shop
A kiosk resembles a miniature store that can easily be moved.

Difficulty: Medium
Topic: Other Location Opportunities
26. (p. 173) What is NOT the responsibility of shopping center management?
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
Shopping center management is responsible for all of these except to provide temporary
holiday sales staff for the retailers.

Difficulty: Easy
7-33
27. (p. 175) 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
Department stores have been the anchors and drawing power of malls.

Bloom's: Knowledge
Difficulty: Easy
28. (p. 173-174) 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?
C. mall
D. power center
E. neighborhood center
A row of non-enclosed stores with parking near the store entrance describes a neighborhood
or community strip shopping center.

Difficulty: Easy
7-34
29. (p. 173-174) As Elahe drove down Fairfax Road, she noticed a group of adjacent stores. In the
group, she saw a hair salon, Papa John's Pizza, a Wal-Mart, an optometrist, and a Save-A-Lot
grocery store. All the stores had entrances into a parking lot, which was landscaped with trees
and flowers. This is an example of a:
A. mixed-use development
B. central business district
C. secondary trade area
D. neighborhood and community shopping center
E. shopping mall
A row of non-enclosed stores with parking near the store entrance describes a neighborhood
or community strip shopping center.

Difficulty: Medium
30. (p. 174) Which of the following retailers would most likely be found in a power center?
A. Lowe's and Target
B. The Sip and Sup Café and an independent retail bookstore
C. A liquor store, a convenience store, and a Laundromat
D. A flower shop, a Kmart, an independent shoe store, and a dry cleaner
E. An independent toy store, women's apparel store, dry cleaners, and shoe store
Power centers consist primarily of big box stores.

Difficulty: Medium
7-35
31. (p. 175) 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?
C. shopping mall
D. power center
E. strip center
Shopping malls are enclosed, climate-controlled, lighted shopping centers with an enclosed
walkway.

Difficulty: Easy
32. (p. 175) 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.
The mall management takes care of the external environment. Rents at shopping malls are
high. Managers of shopping malls try to have a mix of specialty and shopping goods stores.
The tenant mix is very much planned. The true statement, regarding uniform hours of
operations for all retailers is usually enforced in order to ensure a level of consistency that
benefits all the tenants.

Difficulty: Medium
7-36
33. (p. 173-175) Even though malls are a good site option for retailers, they have their
disadvantages. Which of the following describes one of these disadvantages?
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.
Shopping centers managers control hours and exterior signs. Competition within shopping
centers is often intense. Occupancy costs at malls are higher than other locations.

Difficulty: Medium
34. (p. 175) 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.
Malls have a high level of foot traffic have a high level of entertainment and place for dining,
however, because many of the aging malls have not been updated, they are becoming
unappealing to shoppers.

Difficulty: Easy
7-37
35. (p. 181) 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
E. pop-up shop
Retailers sometimes lease space out within their store to other businesses; hence a store within
a store concept exists.

Difficulty: Easy
36. (p. 177) Shopping centers that focus on posh neighborhoods, high-income areas with an
outdoor, traditional streetscape are considered to be _______.
B. regional malls
D. outlet centers
Lifestyle centers are shopping centers that have an open-air configuration of stores with a
pleasing ambience.

Bloom's: Knowledge
Difficulty: Easy
7-38
37. (p. 177) Because of the open-air configuration of upscale specialty stores, coupled with
entertainment and restaurants, ____________ are very convenient for shoppers.
B. regional malls
D. outlet centers
Lifestyle centers are shopping centers that have an open-air configuration of stores with a
pleasing ambience.

Bloom's: Knowledge
Difficulty: Easy
38. (p. 178) 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
C. outlet center
D. off-price center
E. price-oriented center
MXDs combine several different uses into one complex.

Difficulty: Medium
7-39
39. (p. 177) 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 movie. With it being a beautiful day outside,
they wish to enjoy the weather but also find a place that features upscale apparel shops and
boutiques. They most likely will choose to patronize a _______.
A. lifestyle center
B. central mall
C. outlet mall
D. power center
E. mixed-use development
Lifestyle centers are shopping centers that have an open-air configuration of upscale stores
and restaurants with a pleasing ambience.

Difficulty: Medium
40. (p. 177) 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
Lifestyle centers are shopping centers that have an open-air configuration of specialty stores
with a pleasing ambience including fountains and street furniture. They cater to the lifestyles
of the consumers in the trade area, usually high income neighborhoods.

Difficulty: Hard
7-40
41. (p. 179) Which of the following best describes outlet centers?
A. they are generally near regional shopping centers
B. they have no emphasis on entertainment
C. they are often located in tourist areas
D. they never offer first-quality, full-line merchandise
E. they are usually enclosed
Outlet stores are located near tourist areas because tourism represents about 50% of the
traffic.

Bloom's: Knowledge
Difficulty: Medium
42. (p. 179) 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
Outlet centers have mostly manufacturers and retailer's outlet stores to sell products that are
discounted or discontinued.

Difficulty: Easy
7-41
43. (p. 179) Which of the following statements about outlet centers is TRUE?
A. It is predicted that the number of outlet centers in the U.S. will double over the next
decade.
B. Outlet centers are NOT found outside of the United States.
C. Outlet centers are often located some distance from regional shopping centers.
D. Outlet centers have the no-frills look of warehouse stores.
E. Outlet centers sell only irregulars and overruns.
Outlet centers are very popular outside the USA, however the USA has nearly reached its
saturation point of outlet stores. There are so many outlet malls that many now carry first-run
quality merchandise and are as upscale as mall stores besides irregulars, overruns, discounted
or discontinued merchandise. Because of this, they are often located some distance from
regional shopping centers so as to not cannibalize their business.

Bloom's: Knowledge
Difficulty: Medium
44. (p. 179) Ybor Square is a small shopping center located in the part of Tampa known as Ybor
City. The shopping center building used to be a cigar factory that prospered at the turn of the
20th century when Cuban and Italian immigrants settled in the Tampa Bay area. Now it houses
small antique stores, bars and restaurants that have grown to be central to Ybor City's night
life. It is an example of a
A. convenience center
B. regional center
C. price-oriented center
D. specialty center
E. theme/festival center
It is not a specialty center or regional center because there are no large specialty stores or
department stores in it. The old cigar factory has historical interest making it an interest to
tourists.

Difficulty: Medium
7-42
45. (p. 179) __________ 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
This is the definition of theme/festival centers.

Bloom's: Knowledge
Difficulty: Easy
46. (p. 179-180) 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
E. community shopping center
Centers that combine enclosed malls, lifestyle centers and power centers in effort to create
more pedestrian traffic, cross-shopping and longer shopping trips, are omnicenters.

Difficulty: Easy
7-43
47. (p. 178) _________ are centers that often include office spaces, hotels, residential
complexes, civic centers, or convention complexes on top of or attached to a shopping center.
A. Multilevel marketing centers
B. Mixed-use developments
C. Convention centers
D. Marketing complexes
E. Urban shopping arenas
MXDs combine several different uses into one complex.

Bloom's: Knowledge
Difficulty: Easy
48. (p. 178) Mixed-use developments (MXDs) are popular with retailers because they:
A. have higher security
B. bring additional shoppers to the store
C. offer low rent
D. offer short-term leasing agreements
E. provide free storage facilities to attract retailers
By containing hotels and residences, MXDs bring additional shoppers to the stores beyond
those who might come to ordinary shopping centers.

Difficulty: Easy
7-44
49. (p. 178) Which of the following does NOT describe Mixed-use developments (MXDs)?
A. Retailers like MXDs because they bring additional shoppers to their stores
B. Developers avoid MXDs because of unproductive use of space
C. Urban planners like MXDs because they provide a pleasant, pedestrian environment
D. Residents like MXDs because they offer an all-inclusive environment
Developers like MXDs because they use space productively.

Difficulty: Medium
50. (p. 182) 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.
Airport space per square foot is higher than average shopping centers, and airport retailers
need to pay employees higher wages due to the inconvenient location for workers. With less
food being served during flights, restrictions on what can be brought through security,
passengers arrive earlier for their flights than they did in the past, leaving them more time to
shop.

Difficulty: Medium
7-45
51. (p. 181) 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
E. pop-up shop
Retailers sometimes lease space out within their store to other businesses; hence a store within
a store concept exists.

Difficulty: Easy
52. (p. 181) Clark was late to work one morning and decided to use the McDonald's drive-thru
for his morning cup of coffee. Normally, a coffee drinker loyal only to Starbucks, Clark was
more interested in speed due to his tardiness. Which of the following best describes Clark's
shopping situation?
A. distributive shopping
B. time-crunch shopping
C. comparison shopping
D. convenience shopping
E. specialty shopping
When consumers are engaged in convenience shopping situations they are primarily
concerned with minimizing their effort to get the product or service they want. They are
insensitive to price and indifferent about brands. They don't spend much time evaluating
brands or retailers.

Difficulty: Medium
Topic: Location and Retail Strategy
7-46
53. (p. 181) Rhonda rolled her eyes when she realized how much she had to pay for a pack of
gum at the paper stand on her way to reach her departing flight from JFK. With security lines
as long as they were, she knew she needed to hurry and pay the $2.75 for her Eclipse gum.
Her purchase situation can best be described as:
When consumers are engaged in convenience shopping situations they are primarily
concerned with minimizing their effort to get the product or service they want. They are
insensitive to price and indifferent about brands. They don't spend much time evaluating
brands or retailers.

Difficulty: Medium
54. (p. 183) A critical factor affecting the location that consumers select to visit is the shopping
situation in which they are involved. What type of shopping situation should a retailer such as
Walgreen's consider?
Walgreen stores are plentiful partly because they usually locate their stores close to where
their customers are and make it easy for them to access the location, park and find what they
want. These customers in the convenience shopping situation are primarily concerned with
minimizing their effort to get the product or service they want and are relatively insensitive to
price.

Difficulty: Medium
7-47
55. (p. 183) 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.
Category specialists are the best example of a destination store where consumers will
patronize because of the merchandise offerings, price or other factors, even if it is
inconvenient.

Difficulty: Easy
56. (p. 183-184) Diana wanted a German Short-haired Pointer after seeing it win the Best in Show
Award at the dog show. She searched on the Westminster Kennel Club website for a breeder,
and found one in Greenville, South Carolina. She was sure this was the breed she wanted; she
was willing to pay the expense to travel to Greenville and purchase the puppy. This type of
shopping is:
A. Demand-oriented service-provider
B. Specialty shopping
C. Ultimate provider
D. Internet shopping
E. Supply-oriented service-provider
When a unique item is desired and a substitute will not do, consumers will pay a premium and
expend extra effort to get exactly what they want.

Difficulty: Medium
7-48
57. (p. 181) The retail tenants in Underground Atlanta are similar to those found in specialty
centers, except that they are all small. Their goal is to create a unique shopping environment
for customers. What type of shopping center is Underground Atlanta?
A. power shopping center
B. regional mall
C. strip center
E. central-business district
The Underground Atlanta is a unique shopping environment for locals as well as tourists.

Difficulty: Easy
58. (p. 174) 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
Power centers house big box destination stores such as Lowe's and Best Buy.

Bloom's: Knowledge
Difficulty: Easy
7-49
59. (p. 174) 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?
Customers who shop Hobby Shop would usually patronize the store because they are looking
for something specific or in a specific category, so they would go to this store as a destination.

Bloom's: Knowledge
Difficulty: Easy
60. (p. 175) What type of shopping center is composed of upscale apparel shops, boutiques, and
gift shops carrying selected fashions or unique merchandise of high quality and price?
B. power centers
C. shopping strips
E. shopping malls
Shopping malls, whether regional or super regional tend to have more upscale apparel shops,
boutiques, and gift shops with more fashionable or unique merchandise than other centers.

Bloom's: Knowledge
Difficulty: Easy
7-50
61. (p. 177) What type of shopping center has an open-air configuration of upscale specialty
stores, entertainment and restaurants?
A. omni centers
B. power centers
C. shopping strips
Lifestyle centers resemble main streets in a small town, yet they cater to the lifestyle of the
consumers in the trade area, which is often a more upscale demographic area.

Bloom's: Knowledge
Difficulty: Easy
62. (p. 173) Grocery stores are typically located in _____________.

A. omni centers
B. power centers
C. shopping strips
Neighborhood and community shopping centers (also called strip shopping centers) are
designed for day to day convenience shopping.

Bloom's: Knowledge
Difficulty: Easy
7-51
63. (p. 185) Burger King, in Mequon, Wisconsin, was not allowed to have a sign taller than 10
ft., and could not have any neon lights on the outside of the building. This is an example of
the use of a __________.
A. building code
B. blue law
Some communities have building codes that specify the required "look" of businesses in order
to have a cohesive theme or image.

Difficulty: Medium
Topic: Legal Considerations
64. (p. 183) 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
When consumers are willing to pay a premium or expend extra effort it is specialty shopping.

Difficulty: Medium
7-52
65. (p. 185) In a town in Georgia, the McDonald's restaurant was required by _______ to have
no sign taller than 8 feet, no arches, and no garish or bright colors on the outside of the
building.
A. building code
B. blue law
Some communities have building codes that specify the required "look" of businesses in order
to have a cohesive theme or image.

Difficulty: Medium
66. (p. 173) When the management of a shopping center maintains the common facilities and
provides security, advertising and special events to attract consumers, lease agreements
require the retailers to pay a portion of the _________ costs.
A. common area maintenance
B. community coverage
C. location revival
D. uniform code
E. development preservation
Common area maintenance fees are expected at shopping centers to pay for the mall
management and benefits of being in a mall.

Bloom's: Knowledge
Difficulty: Easy
7-53
67. (p. 173) 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
Anchors are typically stores like Macy's, Walmart or Kroger that attract customers to the
center.

Bloom's: Knowledge
Difficulty: Easy
68. (p. 173) 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
Anchors are typically stores like Macy's, Walmart or Kroger that attract customers to the
center.

Bloom's: Knowledge
Difficulty: Easy
7-54
69. (p. 169) Walmart Supercenters requires a large amount of operating space. Therefore, one
would most likely find a Walmart Super center located:
A. in a shopping mall.
B. in a life-style center.
C. at freestanding sites.
D. in central business districts.
E. in off-price centers.
Freestanding sites are likely to be locations for retailers that require easy access and parking
for their customers, high vehicular traffic, and modest occupancy costs.

Bloom's: Knowledge
Difficulty: Medium
70. (p. 174) Shopping centers consist primarily of collections of big box retail stores, such as
Walmart, TJMaxx, Home Depot, Dick's Sporting Goods, and Borders is called:
A. community centers
B. neighborhood centers
C. power centers
D. lifestyle centers
E. theme centers
Shopping centers consist primarily of collections of big box retail stores are called power
centers.

Bloom's: Knowledge
Difficulty: Medium
7-55
71. (p. 177) 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
Lifestyle centers are shopping centers composed mainly of upscale apparel shops, boutiques,
and gift shops carrying selected fashions or unique merchandise of higher quality and price.
Therefore, they usually are found in trade areas with high income levels.

Difficulty: Hard
72. (p. 178) 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
E. super regional mall
Mixed use developments combine several different uses into one complex.

Difficulty: Easy
7-56
73. (p. 183) Which of the following types of retailers does NOT cater to shoppers who are
engaged in convenient shopping situations?
A. convenience stores
B. drugstores
C. fast-food restaurants
D. supermarkets
E. auto dealerships
Consumers engage in comparison shopping for purchasing large ticket items such as vehicles.

Difficulty: Medium
74. (p. 181) 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
E. pop-up shop
Retailers and manufacturers sometimes open pop-up stores, which are stores in temporary
locations that focus on new products or a limited group of products.

Difficulty: Easy
7-57
75. (p. 181) As Chelsea walked through the concourse to her connecting flight to Spain, she
walked by a place selling CDs to learn a foreign language. Since she needed to brush up on
her conversational Spanish, she talked with the person standing with the cart. The cart of
merchandise would be described as a __________.
A. kiosk
B. parasite store
E. pop-up shop
A kiosk resembles a miniature store that can easily be moved.

Difficulty: Medium
Essay Questions
76. (p. 167-168) Why is choosing a good location such an important decision for a retailer?
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.
AACSB: Communication
Difficulty: Medium
7-58
77. (p. 169) What are the advantages and disadvantages of choosing a free-standing site for your
retail store?
The advantages that freestanding sites have are (1) they are convenient for the customer (easy
parking); (2) high vehicular traffic and visibility attracts customers driving by; (3) they have a
modest occupancy cost; (4) they are separate from direct competition; (5) they have fewer
restrictions on signs, hours or merchandise. The disadvantages include: (1) they have limited
trade area because they have no other nearby retailers to attract customers interested in
shopping; (2) they have higher occupancy costs than strip centers; (3) they are generally in
areas with little pedestrian traffic that might drop in because they are walking by.
Difficulty: Medium
78. (p. 169 & 174) Why do category specialists or "category-killer" retailers choose to locate their
stores in free standing sites or in power centers?
Category Specialists are found free standing or in power centers because (1) these locations
are cheaper than central business districts or malls, (2) easy access to parking is important
because purchases are often large and difficult to carry and (3) category specialists are
destination stores and people will shop there regardless of the location.
Difficulty: Medium
7-59
79. (p. 170-171) Why have many central business districts been declining in the United States and
what are developers doing to revive CBDs?
Central Business Districts have been declining for years because of high crime rates requiring
retailers to invest in high security, parking is often limited, urban decay, no control over the
weather, evening and weekend shopping is slow and many CBDs suffer from lack of
planning. However, developers and cities are reviving their downtown areas as they become
gentrified bringing in new retailers and residents that want an urban experience and want to be
able to walk to shopping and restaurants.
Difficulty: Medium
80. (p. 173-174) What are the advantages and disadvantages of strip shopping centers?
The advantages of strip shopping centers are that they offer customers convenient locations,
easy parking and relatively low rent for the retailers. Their disadvantages are that there is no
protection from the weather and they offer less assortment and entertainment options for the
customers than the malls.
Difficulty: Medium
7-60
81. (p. 176) What are three advantages that shopping malls have over alternative locations?
Three advantages include (1) because of the many types of stores, merchandise assortments
and entertainment, malls have become the Main Street for shoppers, (2) the tenant mix is
planned so that customers can have a one-stop shopping experience with well-balanced
assortment of merchandise and (3) retailers and their customers don't have to worry about the
external environment as the mall takes care of maintenance, hours of operation, security and it
provides protection from the weather.
Difficulty: Medium
82. (p. 176-177) There are seven different identifiable disadvantages that shopping malls have as
compared to other locations. Describe at least four of these disadvantages.
1) rent is higher than strip centers, freestanding sites, and central business districts
2) mall management's control of operations, rules and restrictions
3) intense competition with retailers who sell similar merchandise in close proximity
4) not as convenient for customers to get in and out
5) some mall locations are old and have not been updated making them less desirable for
customers to patronize
6) some malls are located in undesirable locations because of population shifts since they
were built
7) the anchoring department stores companies have merged and consolidated which has
decreased the number of potential anchor tenants
Difficulty: Medium
7-61
83. (p. 176-177) Mall traffics and sales have been declining. What are the challenges that
shopping malls face?
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.
Difficulty: Medium
84. (p. 184-185) Retail developers need to take into consideration legal aspects when they are
evaluating different locations. Describe the four different main legal considerations.
1) Government has become more involved with environmental and sustainable issues such as
asbestos-containing materials, lead pipes, hazardous materials, and energy efficiency.
2) Zoning Codes determine if a site can be used for commercial or residential.
3) Building codes are restrictions on the size of the building, the signs, the parking lot and
overall look of the building.
4) Licensing requirements could include alcohol and firearms, which can differ from state to
state and city to city.
Difficulty: Medium
7-62
Test Bank for Retailing Management, 8th Edition: Levy
85. (p. 178) Explain what is mixed use developments (MXDs) and how they appeal to
consumers, retailers, local governments, and developers.
Mixed use developments (MXDs) combine several uses into one complex, including shopping
centers, office towers, hotels, residential complexes, civic centers, and convention centers.
These developments offer an all-inclusive environment so that consumers can work, live, and
play in a proximal area. They appeal to people who have had enough of long commutes to
work and look for a lifestyle with more time for the things they enjoy. Retailers like MXDs
because they bring additional shoppers to their stores. Local governments like MXDs because
they provide a pleasant, pedestrian environment with an efficient use of space and increase the
property tax base. Developers like MXDs because they use space productively.
Difficulty: Medium
7-63
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True / False Questions

4. Tourists are the biggest group of customers that go to theme/festival centers.

9. Freestanding stores rely mostly on foot-traffic to bring in customers.

Multiple Choice Questions

13. The most serious disadvantage inherent in a freestanding site is:

14. Why would a small retailer be interested in a kiosk?

19. Where is a central business district typically located?

21. Why would a retailer expand to a central business district?

23. Main Street locations usually offer:

26. What is NOT the responsibility of shopping center management?

27. The anchor stores in a shopping mall are traditionally:

32. Which of the following statements about shopping malls is TRUE?

34. What are some of the challenges being faced by malls?

40. Where would you most likely find a lifestyle center?

41. Which of the following best describes outlet centers?

43. Which of the following statements about outlet centers is TRUE?

62. Grocery stores are typically located in _____________.

Chapter 07 Retail Locations Answer Key

True / False Questions

AACSB: Reflective Thinking

Many CBDs are also experiencing gentrification.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Tourists are theme/festivals centers target customers.

AACSB: Reflective Thinking

This shopping situation is referred to as convenience shopping.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

9. (p. 168) Freestanding stores rely mostly on foot-traffic to bring in customers.

AACSB: Reflective Thinking

Multiple Choice Questions

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

14. (p. 181) Why would a small retailer be interested in a kiosk?

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

19. (p. 170) Where is a central business district typically located?

CBDs are located in the downtown business area of a city or town.

AACSB: Reflective Thinking

CBDs are located in the downtown business area of a city or town.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

23. (p. 171) Main Street locations usually offer:

AACSB: Reflective Thinking

AACSB: Reflective Thinking

A kiosk resembles a miniature store that can easily be moved.

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking

AACSB: Reflective Thinking