When proposed and existing stores have a very high trading-area overlap,_____.
A)many additional customers will be attracted to the proposed store
B)few additional customers will be attracted to the proposed store
C)the proposed store will focus on geographic weaknesses in the existing store
D)advertising will have to be assessed due to possible promotional waste

Question

Quizplus · Accepted Answer

A very high trading-area overlap between proposed and existing stores indicates that the proposed store will not attract many additional customers as both stores are targeting the same market. The sales of the existing store might get affected by the presence of a new store in the same location. Therefore, it is important to assess the impact of the proposed store on the existing store and consider factors such as promotional waste while planning advertising. The proposed store can focus on geographic weaknesses in the existing store to differentiate itself and provide a unique selling proposition to the customers.

When Proposed and Existing Stores Have a Very High Trading-Area