Question

You turned on your tablet to read an online article about a Texas-based furniture retailer that reported its first gain in same-store sales in almost two years. The gains were realized in foldable tables and convertible sofas, areas specifically targeted for improvement and often preferred by apartment dwellers with limited space. The company attributes its success to having moved its stores from rural and suburban communities into Dallas-Ft. Worth, 1 of the 10 largest metropolitan areas in the United States.

What significant geographic variable or combination of variables is likeliest to be responsible for this retailer's success?

a. Market density.
b. Market region and urbanization.
c. Urbanization.
d. Market region.
e. Climate.

Answer 1

The combination of market region and urbanization is the significant geographic variable responsible for the furniture retailer's success, as this led to a higher market density and exposure to a target audience in a metropolitan area with advantageous situation factors.

Step-by-step explanation:

The significant geographic variable responsible for the Texas-based furniture retailer's success is likely b. Market region and urbanization. This combination includes the retailer's strategic move to a densely populated metropolitan area, which has resulted in improved market density due to a higher concentration of potential customers within Dallas-Ft. Worth. This shift likely provided increased exposure and accessibility to a target audience that prefers the foldable tables and convertible sofas offered by the retailer, a product range well-matched to the limited space within many urban apartments.

Furthermore, the concepts of situation factors and site location advantages are also important here. Cities like Dallas-Ft. Worth offer a central location, a multitude of transportation options, and other competitive advantages that contribute to business success and are reflected in the retailer's improved sales figures after relocating.