Question 1

Traffic counts and purchasing power analysis of drawing area are techniques associated with:
A)locational cost-volume analysis.
B)a manufacturing location decision.
C)a retail or professional service location decision.
D)the factor-rating method.
E)the transportation model.

Accepted Answer

Traffic counts and purchasing power analysis are commonly used in the retail or professional service location decisions. These methods help in determining the potential customer base and their buying power, which is crucial information for businesses planning to open new locations. Locational cost-volume analysis, factor-rating method, and the transportation model are also used in location decisions, but they are not directly related to assessing the customer base and their buying power.  Therefore, option C is the best choice.

Question 2

La Quinta Inns has a competitive edge over its rivals because it:
A)uses regression analysis to determine which variables most influence profitability.
B)has better television advertisements.
C)picks larger locations than its rivals.
D)builds only along interstate highways.
E)consistently receives four-star ratings for its inns.

Accepted Answer

La Quinta Inns uses regression analysis to identify the variables that most significantly impact profitability, giving them a competitive advantage by allowing them to make data-driven decisions to enhance their operations and financial performance.

Question 3

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns?
A)the price of the inn
B)median income levels
C)the state population per inn
D)the location of nearby colleges
E)the number of inns in a region

Accepted Answer

The answer of Which of the following is NOT one...

Question 4

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?
A)energy and utility costs
B)attitude toward unions
C)parking and access
D)cost of shipping finished goods
E)labor costs

Accepted Answer

Parking and access is more likely to affect the location decision of a service firm because they need to be easily accessible to customers. Manufacturing firms, on the other hand, may prioritize factors such as energy and utility costs or the cost of shipping finished goods. Attitude towards unions and labor costs can also affect both service and manufacturing firms.

Question 5

Which of the following is a location analysis technique typically employed by a manufacturing organization?
A)transportation method
B)queuing theory
C)correlation analysis and traffic counts
D)simulation
E)demographic analysis

Accepted Answer

Transportation method is a location analysis technique that deals with finding the optimal location to minimize transportation costs and maximize distribution efficiency. It is commonly used by manufacturing organizations that have to transport their goods from the production site to the customers.

Question 6

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Accepted Answer

The answer of Service location strategies and goods-producing location strategies...

Question 7

Which of the following is a location analysis technique typically employed by a service organization?
A)purchasing power analysis
B)linear programming
C)queuing theory
D)transportation method
E)locational cost-volume analysis

Accepted Answer

The answer of Which of the following is a location...

Question 8

Location analysis techniques typically employed by service organizations include:
A)the factor rating method.
B)the center-of-gravity method.
C)purchasing power analysis of area.
D)traffic counts.
E)all of the above.

Accepted Answer

All of the above techniques are commonly used by service organizations to analyze location. The factor rating method involves assigning weights to different factors such as labor availability, transportation access, and cost of living, and then rating potential locations on each factor. The center-of-gravity method calculates the geographic center of existing customers or facilities to determine the optimal location for a new facility. Purchasing power analysis looks at the amount of disposable income in a given area to determine the potential customer base. Traffic counts measure the amount of vehicle or pedestrian traffic in a particular area to assess the potential for foot traffic or accessibility.

Question 9

Traffic counts and demographic analysis of drawing area are associated with:
A)the center-of-gravity method.
B)manufacturing location decisions.
C)service location decisions.
D)the transportation model.
E)locational cost-volume analysis.

Accepted Answer

Traffic counts and demographic analysis are factors that are considered when making service location decisions, such as opening a restaurant or retail store. The center-of-gravity method and manufacturing location decisions are more focused on the physical location of a facility, while the transportation model and locational cost-volume analysis take into account factors such as transportation costs and production levels, respectively.

Question 10

Which of the following is among the eight determinants of revenue and volume for a service firm?
A)uniqueness of the firm's and the competitors' locations
B)quality of the competition
C)quality of management
D)purchasing power of the customer-drawing area
E)all of the above

Accepted Answer

The answer of Which of the following is among the...

Question 11

Geographic information systems can assist the location decision by:
A)automating center-of-gravity problems.
B)computerizing factor-rating analysis.
C)combining geography with demographic analysis.
D)updating transportation method solutions.
E)providing good Internet placement for virtual storefronts.

Accepted Answer

Geographic information systems can combine geographic data with demographic analysis, allowing businesses to make location decisions based on the characteristics of the surrounding population. This can help companies understand the demand for their products or services in a particular area, as well as identify potential competitors and partners. While GIS can assist with automation and transportation solutions, these factors are not directly related to location decisions. Internet placement can also be important, but GIS is not specifically designed for this purpose.

Question 12

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns.Identify some that were tested but not included in the final model.

Accepted Answer

The answer of Identify the four predictive variables chosen by...

Question 13

Databases containing such variables as street maps,utilities,population age and income,and the software that analyzes such data for location decisions,are referred to as ________.

Accepted Answer

The answer of Databases containing such variables as street maps,utilities,population...

Question 14

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.
A)transportation costs
B)cost of raw materials
C)appearance/image of the location
D)quality of life
E)taxes

Accepted Answer

A jewelry store would prioritize appearance and image of the location as it directly influences its target market's perception of the brand and the quality of its products. Transportation costs, cost of raw materials, taxes, and quality of life are factors that are more likely to be considered by a jewelry manufacturer as they are involved in the production process.

Question 15

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Accepted Answer

The answer of How do service facility location decisions differ...

Question 16

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?
A)quality of management
B)shipment cost of finished goods
C)purchasing power of the customer-drawing area
D)uniqueness of the firm's and the competitors' locations
E)competition in the area

Accepted Answer

The shipment cost of finished goods is not relevant to service firms as they do not produce tangible goods that need to be shipped. The other determinants listed (quality of management, purchasing power of the customer-drawing area, uniqueness of location, and competition in the area) are all factors that can affect revenue and volume for a service firm.

Question 17

Industrial firms choose locations that minimize cost,but service firms look for locations with good demographics and traffic count because these variables are indicators of good ________.

Accepted Answer

The answer of Industrial firms choose locations that minimize cost,but...

Question 18

What describes a system that stores and displays information that can be linked to a geographic location?
A)AIS
B)LOC
C)GLOC
D)LIS
E)GIS

Accepted Answer

LIS stands for Library Information System, AIS stands for Automatic Identification System, LOC stands for Location, GLOC is not a commonly used term. GIS stands for Geographic Information System, which is a system that stores and displays information that is linked to a geographic location. This includes mapping data, satellite imagery, and other location-based data, which can be used for a variety of purposes such as urban planning, emergency response, and natural resource management.

Question 19

Which of the following is most likely to affect the location strategy of a manufacturing firm?
A)appearance/image of the area
B)utility costs
C)purchasing power of drawing area
D)competition in the area
E)parking availability

Accepted Answer

Utility costs are a significant factor for manufacturing firms due to their high energy consumption, directly affecting operational costs and profitability.

Question 20

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?
A)Most major costs can be identified explicitly for each site.
B)Focus on identifiable costs.
C)High customer-contact issues are critical.
D)Intangible costs can be evaluated.
E)Location is a major determinant of cost.

Accepted Answer

High customer-contact issues are typically more relevant for service industries rather than goods-producing industries. Strategies for goods-producing location decisions focus on identifying and evaluating costs, both tangible and intangible, that are associated with each potential site. Location is a major determinant of cost, and identifying explicit costs is a key part of the decision-making process.

Quiz 8: Location Strategies

Traffic counts and purchasing power analysis of drawing area are techniques associated with:

La Quinta Inns has a competitive edge over its rivals because it:

Which of the following is NOT one of the predictive variables chosen by the profitability regression model used by La Quinta Inns?

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?

Which of the following is a location analysis technique typically employed by a manufacturing organization?

Service location strategies and goods-producing location strategies rely on very different sets of assumptions.What are the assumptions associated with goods-producing locations? How do these assumptions lead to a location strategy?

Which of the following is a location analysis technique typically employed by a service organization?

Location analysis techniques typically employed by service organizations include:

Traffic counts and demographic analysis of drawing area are associated with:

Which of the following is among the eight determinants of revenue and volume for a service firm?

Geographic information systems can assist the location decision by:

Identify the four predictive variables chosen by the profitability regression model used by La Quinta Inns.Identify some that were tested but not included in the final model.

Databases containing such variables as street maps,utilities,population age and income,and the software that analyzes such data for location decisions,are referred to as ________.

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.

How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

Which of the following is NOT among the eight determinants of revenue and volume for a service firm?

Industrial firms choose locations that minimize cost,but service firms look for locations with good demographics and traffic count because these variables are indicators of good ________.

What describes a system that stores and displays information that can be linked to a geographic location?

Which of the following is most likely to affect the location strategy of a manufacturing firm?

Which of the following assumptions is NOT associated with strategies for goods-producing location decisions?