Question
Nina is trying to decide in which of four shopping centers to locate her new boutique. Some locations attract a higher class of clientele
Nina is trying to decide in which of four shopping centers to locate her new boutique. Some locations attract a higher class of clientele than others, some are in an indoor mall, some have a much greater customer traffic volume than others, and, of course, rent varies considerably from one location to another. Because of the nature of her store, she has decided that the class of clientele is the most important consideration, the higher the better. Following this, however, she must pay attention to her expenses and the rent is a major item, probably 95 percent as important as clientele. An indoor, temperature-controlled mall is a big help, however, for stores such as hers where 80 percent of sales are from passersby slowly strolling and window shopping. Thus, she rates this as about 80 percent as important as the rent. Last, a higher traffic volume of shoppers means more potential sales; she thus rates this factor as 60 percent as important as the rent. a. As an aid in visualizing her location alternatives, she has constructed the following table where a. L1,... L4 indicate the various locations. b. A "good" is scored as 5, "fair" as 3, and "poor" as 1. Use a weighted score model to help Nina come to a decision. b. Assume the scores were selected differently: I a. A "good" is scored as 5, "fair" as 4, and "poor" as 1. Use a weighted score model to help Nina come to a new decision. c. How do you explain the difference between the two decisions? Location L1 12 L3 Class of clientele Fair Good Poor L4 Good Rent Poor Fair Fair Fair Indoor mall Good Poor Good Poor Traffic volume Good Fair Good Poor Attach your spreadsheet showing your calculations. Explain your answers. Zero credit if no readable attachment or no explanations.
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