Question

Which store stands the best chance of attracting shoppers based on the data below? Explain.

Store A: 29,272 m2, 3.2 km

Store B: 28,030 m2, 2.2 km

Store C: 18,357 m2, 1.4 km

Store D: 25,342 m2, 2.6 km

Answer 1

Now, here the data is very limited. We have been provided with the size of the store along with its proximity. This is more of a logic based question.

People tend to shop where they get more variety. Also people tend to be lazy, so they would not want to drive/walk a lot. So taking in consideration all these factors along with the law of diminishing marginal utility, I believe one store satisfies all those conditions that will make it attractive to buyers. That store is:

StoreB

which has a size of 28,030 m² and proximity of about 2.2 km

The first store A is too far away for a consumer so people will tend to avoid it;

The store C has too less variety as its smaller in size than its counterparts

The store D would lose out to store B both in size and proximity.

Please let me know if anything is unclear in comments. Will reply ASAP. Please upvote if satisfied!