Why Is the Selection of a Retail Location So Critical

question 81

Multiple Choice

Why is the selection of a retail location so critical to a store's success?

• A) Location affects pricing decisions but does not affect store image.
• B) Customers will not drive out of their way to find a store.
• C) A location decision ties up funds that will not appreciate or gain in value.
• D) A location decision typically requires a large,semipermanent commitment of resources.
• E) Employee density is affected by the area in which the store is located.

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Definitions:

GDP Deflator

An indicator that measures the pricing of all new, domestically made, final goods and services in an economy.

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate view of an economy's size and growth.

Real GDP

A measure of a country's economic output adjusted for inflation, giving a more accurate view of an economy's size and how it's growing over time.

Nominal GDP

The gross domestic product measured at current market prices, without adjusting for inflation, reflecting the current value of goods and services produced.