Which of the Following Statements About Location Strategy Is True

question 7

Multiple Choice

Which of the following statements about location strategy is true?

• A) Location is the second most important characteristic that consumers examine when selecting a store
• B) Location offers an opportunity to gain a long-term advantage over competitors
• C) Consumers do not use convenience as a basis for selecting where to shop
• D) Location can never be used to gain any kind of long-term advantage over competitors due to retailing's low entry barriers
• E) The only two characteristics more important than location in the selection process of where to shop are price and sales promotions

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Definitions:

Maximum Revenues

The highest possible income a company can generate from the sale of its products or services, achieved at the optimal price point and quantity sold.

Coincidence of Wants

A situation in a barter system where two parties each possess an item or service the other desires, facilitating an exchange without the need for a medium of exchange like money.

Exchange and Trade

The act of giving something of value in return for something else, pivotal for the functioning of economies and fostering economic relationships.

Centrally Planned Economy

An economic system where the government makes all decisions about what goods and services are produced, how they are produced, and who receives them.