What are the factors that influence the location decisions of retailers and producers?

What will be an ideal response?


The type of business-retailing, producing, or service-influences most location decisions.
Retailers are concerned with people who come to, or are drawn into, the store to make a purchase. Therefore, location is concerned with people's movement, attention, attitudes, convenience, needs, and ability to buy.
Producers are concerned with converting, usually in considerable volume, materials, parts, and other items into products. They emphasize selling those products through intermediaries to the ultimate consumer. Compared with the merchandise of retailers, producing units are often larger and fewer and sold to a smaller number of customers. The plant and customer can be located some distance apart, so other factors become more important. Still, nearness to customers and suppliers helps to keep costs down and permits more satisfactory service. Primary emphasis on locating, though, is placed on cost and service.

Business

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