Fashion Distribution Final Exam

Front 1

Traffic flow and accessibility are necessary for destination retailers

Neighborhood and community centers contain mostly manufacturers and retail outlet stores

Malls do not use percentage leases

The Spending Potential Index (SPI) is the number of households purchasing a product or service in a trade area

Back 1

False

Front 2

A freestanding site is a location for an individual store unconnected to other retailers

The sliding scale percentage lease occurs when the percentage of sales as rent decreases and sales go up

The prohibited clause limits the landlord from leasing to certain tenants, such as bowling alleys, skating rinks, pool halls, and massage parlors

Store location is important for a retailer because of their strategic importance. Location can help to develop sustainable competitive advantage

Back 2

True

Front 3

Gentrification is not bringing population back to the cities

Small trade areas are a characteristic of power centers

One advantage of a shopping mall is occupancy costs are high

The Analog Approach includes factors affecting the sales of existing stores in a chain that will have the same impact on the stores located at new sites being considered

Back 3

False

Front 4

Economic conditions are a factor affecting the demand for a region or trade area

Fixed rates leases are used by community and neighborhood centers

One disadvantage of a central business district location is slow evenings and weekends

You would find elegant decor in a fashion specialty center

Back 4

True

Front 5

In the initial screening when evaluating a specific site, retailers consider the characteristic of the site and the characteristic of the trading area

While specialty shopping, customers know what they want and seek designer labels

The purpose of customer spotting is to spot, or locate, the residences of customers for a store or shopping center

Back 5

True

Front 6

System of hardware and software used to store, retrieve, map, and analyze geographic data along with the operating personnel and the data that goes into the system

- coordinate system (latitude and longitude)
- spacial features (rivers and roads)
- some firms offer services combine GIS with updated Census Data, consumer spending patterns and lifestyles

Back 6

Geographic Information System

Front 7

# of households purchasing a product or service in a trade area

Back 7

Market Potential Index

Front 8

Avg. amount spent on a product or service by a household in a trade area

Back 8

Spending Potential Index

Front 9

Lease based on a percentage of sales most malls use some form of percentage lease

- retailers also typically pay a maintenance fee based on a percentage of their sq. ft. of leased space

Back 9

Percentage Leases

Front 10

Percentage of sales up to a maximum amount rewards retailer to hold rent constant above a certain level of sales

Back 10

Percentage lease w/ specified maximum

Front 11

Retailer must pay a minimum rent no matter how low sales are

Back 11

Percentage lease w/ specified minimum

Front 12

Percentage of sales as rent decreases as sales go up

Back 12

Sliding scale

Front 13

Used by community and neighborhood center

- retailers pay a fixed amount per month over the life of the lease
- not as popular as percentage leases

Back 13

Fixed rated leases

Front 14

Variation of the fixed rate lease

- rent increases by a fixed amount over a specific period of time

Back 14

Graduated Leases

Front 15

- committed to purchasing merchandise and services from a retailer
- resist efforts of competitors to attract the loyal
- emotional attachment to retailer
- personal attention
- memorable positive experiences
- brand building communications programs

Back 15

Customer Loyalty

Front 16

A business philosophy and set of strategies programs, and systems that focus on identifying and building loyalty w/ a retailer's most valuable customers

Back 16

Customer Relationship Management

Front 17

Technique used to identify patterns in data

Back 17

Data Mining

Front 18

- data analysis focusing on the composition of the customer's market basket
- what items are brought during a single shopping occasion
- uses for adjacencies for displaying merch and joint promotions

Back 18

Market Basket Analysis

Front 19

- implement retailer's strategy (strategy mix, how is it apart of the store)
- influence customer buying behavior (how do we get repeat visits)
- control design and maintenance costs provide flexibility (how easily can things move around and are the stores cohesive)
- meet legal requirement (aisles are wide enough, cash wraps are low enough)

Back 19

Store Design Objectives

Front 20

Primary objective is implementing the retailer's strategy

- meet the needs of target market builds a sustainable competitive advantage
- displays the store's image

Back 20

Store Design

Front 21

Protects people w/ disabilities from discrimination in employment, transportation, public accommodations, telecommunications and activities of state and local gov't

Back 21

Americans w/ Disabilities Act

Front 22

Used in grocery, discount, and drug stores
- long gondolas in repetitive pattern
- easy to locate merch
- doesn't encourage customer to explore store
- limited site lines to merch
- allows more merch to be displayed
- cost efficient

Back 22

Grid Layout

Front 23

Used in dept. stores
- loop w/ a major aisle that has access to dept. and store's multiple entrances
- draws customers around the store
- provides different site lines and encourage exploration, impulse buying

Back 23

Racetrack Layout

Front 24

Used in specialty and high end store's
- fixtures and aisles arranged asymmetrically
- pleasant relaxing ambiance doesn't come cheap- small store exp. inefficient use of space
- more susceptible to shoplifting

Back 24

Free Form Layout