Identify and explain one reason why a clothing retailer might choose a unit beside a university campus rather than a similar unit in a quiet residential str...
Question 1 Report
Identify and explain one reason why a clothing retailer might choose a unit beside a university campus rather than a similar unit in a quiet residential street. The retailer sells low-priced fashion items and has a limited promotion budget. Students pass the campus unit throughout the day, while the residential unit has lower rent. The business wants to build awareness of its product quickly after it opens.
(a) Identify one likely advantage of the residential-street unit. [1]
(b) Which location is likely to give the retailer more exposure to its target market? [1]
(c) Explain one reason why the campus location could reduce the need for promotion. [2]
(d) What additional location information should the retailer collect before making its final decision? [1]
Answer Details
(a) A likely advantage of the residential-street unit is lower rent, so operating costs may be lower [1].
(b) The unit beside the university campus is likely to give greater exposure to the target market [1]. Students are the likely customers for low-priced fashion and pass this location throughout the day.
(c) Many students, who are the retailer's target customers, pass the campus unit [1]. They can see the shop and its products without the business paying for advertising [1]. This is especially useful because the promotion budget is limited.
(d) One suitable additional item of information is the pedestrian count [1]. Other acceptable information includes competitor locations, parking or public-transport access, rent and lease terms, or local income levels.
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