Which of the following statements regarding "proximity" in the location decision is False? A) Service organizations find that proximity to market is the most critical primary location factor. B) Manufacturers want to be near customers when their product is bulky, heavy, or fragile. C) Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer. D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier. E) Clustering among fast food chains occurs because they need to be near their labor supply.

Question

Quizplus · Accepted Answer

The statement that clustering among fast food chains occurs because they need to be near their labor supply is false. While labor supply may be a factor in the location decision for fast food chains, clustering occurs mainly because being in close proximity to competitors can increase business for all chains due to the perception of variety and options for customers.

Which of the Following Statements Regarding "Proximity" in the Location