BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It’s a business’s geographic surroundings, which provide most of its customers
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It’s the type of item a store specializes in selling, like sporting goods or paint
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It’s the physical space where the cash registers are located
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None of the above
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Detailed explanation-1: -A trade area is an area where most of a business’s customers come from or are located. The term retail trade area means the geographic area which includes most of the customers for a retail store.
Detailed explanation-2: -A trade area defines where customers live and how far they are likely to travel to a particular business or business district. Thus, basic map data, such as distances, highways, and physical barriers, can be useful in defining trade areas.
Detailed explanation-3: -The primary trade area, which provides 55 to 70 percent of a store’s business and is where the frequent customers are. The secondary trade area is where the next 15 to 20 percent of the business comes from. The tertiary trade area, which is the source of the remaining business.
Detailed explanation-4: -Traditionally, there are three methods you can use to define a trade area: rings, polygons, or drive/walk times. These methods are purely geographic-based distance measures.
Detailed explanation-5: -The Retail Trade Area is the geographic region from which 80-85% of your customers travel from to spend money in your community. A secondary Retail Trade area encompasses the geographic region in which the rest of your shoppers reside.