CHAPTER 9
TRADING-AREA ANALYSIS
CHAPTER 9

Trading Area Analysis: Benefits / Use of GIS p. 229-230

Trading Area Segments: Primary, Seconday, Fringe p. 234

Delineating Trading Areas: 3 main methods p. 237

Reilly's Law of retail gravitation

8 Chief Factors to consider in a Retail Trading Area Table 9-1 p. 240

Huff's Law of shopper attraction pp. 238-239

Multiple Choice - Terminology/Concept

1. The least flexible element of a retailer’s strategy is _____. a. pricing b. promotion c. store location d. product line

2. A trading area can best be defined as _____. a. the geographic area containing the customers of a particular retailer or group of retailers for specific goods and services b. those competitive stores that interchange customers c. a specific cluster of similar stores d. stores that are located in a free-trade zone 3. A clear description of a trading area allows a retailer to determine _____. a. customer shopping frequency b. its overall store image c. the focus of promotion activities d. private-brand strategy

4. The determination of trading-area overlap is most important for which retailer? a. chain b. supermarket c. independent d. department store

5. Which system combines digitized mapping with key locational data? a. geographic information system b. primary trading-area analysis c. secondary trading-area analysis d. TIGER

6. The primary trading area generally encompasses what percent of a store’s customers? a. 5 to 10 b. 10 to 25 b. 25 to 50 d. 50 to 80

Multiple Choice - Terminology/Concept

7. The trading area with the highest average purchase by a customer is the _____. a. parasite b. primary trading area c. secondary trading area d. fringe trading area

8. The most widely dispersed group of customers can be found in which trading area segment? a. trading-area overlap b. secondary trading area c. primary trading area d. fringe trading area

9. The trading-area segment from which a retailer draws customers from the longest distances is the _____ trading area. a. secondary b. satellite c. fringe d. primary

10. A department store in a major shopping center can be classified as a(n) _____ store. a. parasite b. destination c. unsaturated d. saturated

11. A store that does not create its own traffic is a _____. a. fringe store b. low trading-area overlap store c. parasite d. primary trading area store

12. Which type of store does not have its own trading area? a unsaturated b. saturated c. parasite d. destination

13. The store location of a coffee shop in a hotel lobby can best be described as _____. a. overstored b. understored c. parasite d. saturated Multiple Choice - Terminology/Concept

14. In a regional shopping center, the store with the largest trading area is a _____. a. shoe store b. variety store c. department store d. supermarket

15. An example of an economic trading-area barrier is _____. a. travel distance b. travel time c. high sales-tax rates d. travel difficulty as measured by road conditions

16. Primary, secondary, and fringe trading areas for an existing store can be described on the basis of _____. a. trading-area overlap with existing stores b. the average dollar purchases at a store by people from given geographic locales c. customer attitudes d. the frequency of large orders

17. Which marketing research company identifies communities on the basis of lifestyle clusters? a. A.C. Nielsen b. Sales & Marketing Management c. Editor & Publisher d. Information Resources Inc. (IRI) 18. The most quantitative type of computerized trading analysis is _____. a. the regression model b. the analog model c. the gravity model d. license-plate analysis 19. The traditional means of trading-area delineation for a new store is _____. a. Huff’s model b. Gautschi’s model c. license-plate analysis d. Reilly’s law of retail