A comparison of two retail spheres of influence

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Chinese International School IGCSE Geography Coursework

A comparison of two retail spheres of influence

Introduction:

When we go shopping at different places, there is always a reason that we choose to go there. The reason could be the price of goods, quality of goods, location, etc. These factors would affect our choice of shops. The first factor that people are looking at is the price of goods, they will go around to compare them and choose a cheapest shop. Secondly, if a shop is at a good location with a good transportation system, people most likely go to that shop. But when people want to buy groceries, they would not go around to compare the prices because the difference is not that big between grocery shops. In this case, they will choose a shop, which is closest to their house or working place.

Low order goods and services are inexpensive and used often; therefore they do not need many shoppers to maintain profitability. High order goods are expensive and required infrequently therefore they need a much larger group of potential customers to make a profit.

The number of people required to make a business