ST.

ANDREW TECHNICAL HIGH SCHOOL

MATHEMATICS 
SCHOOL BASED ASSESSMENT 

Name of School: St. Andrew Technical High School

Territory: Jamaica

Year of the Examination: 2023

Subject: Mathematics

Candidate Name: Raheem Henry

Candidate Number: 1001030467

Title of the project: does the location of a store affect the prices that are charged?

Name of the Teacher(s) who supervised the project: Mr. Glenroy Williams 

                
 TABLE OF CONTENT
Project title……………………………………………………………….                         
Introduction……………………………………………………...............                        
Method of data collection……………………………………………………                    
Presentation of data…………………………………………………………                    
Analysis of data……………………………………………………………                      
Discussion of finding……………………………………………………...                         
Conclusion……………………………………………………………………                  
Reference……………………………………………………………………                 
 PROJECT TITLE

Does the location of a store affect the prices that are charged?
 INTRODUCTION
Deciding a location is critical to the success of a retail enterprise. Good locations allow for ready

access and attracting large quantities of consumers while increasing the potential sales of retail

outlets. even slight differences in the location of an establishment can have significant effects on

market share and profitability. A product location that is presented can influence consumers'

numerical estimates of product attributes (e.g., price). This effect can be driven by two

alternative processes. Firstly, the individuals may have acquired an erudite association among

numerical magnitude and location due to frequent observation of larger numbers to the right of

smaller ones. secondly, they possibly learned a procedure of reading or writing numbers from

left to right in increasing order of magnitude. At times a good location can also lead to an

excellent competitive advantage because in retail marketing mix location is one of the crucial

parameters and unique which cannot be copied by competitors in any way.

RECOMMENDED LOCATIONS TO START A RETAIL STORE

1) Solitary sites

 These are single small outlets of shops which are separated from different writers, and

they are positioned near the other retailers on the infrastructures to shopping centers.

Many of the food and non-food retailers use these types of solitary sites.

 The primary advantage of having a solitary site is the distance from the competition

which provides the services to the customers, that helps the customer to decide on the

product offered by that particular retailer.

  The shortcomings of having a solitary site are the pedestrian traffic. Compared to a

shopping center or a convenience store the visibility will also business along with the

substantial amount of investment since the site will be solitary.

2) Unplanned shopping areas

 These are locations of retail stores which evolved over an extended period of time and

possess multiple outlets in close proximities. These are further divided into:

 Central business district such as the downtown areas in major cities

 Secondary business districts on main or high Street

 District neighborhood

 Location switch on the street or on the motorway which is also known as strip locations.

 The advantages of having unplanned shopping areas are the very high pedestrian traffic

during working hours and also because of the residential areas. This ensures a constant

flow of customers.

 The disadvantage of having an unplanned shopping area it the threat of shoplifting which

then puts it in need of high security. Also, it may cause inconvenience to other customers,

and there are high chances of traffic blocking because of the unavailability of parking

facilities.
3) Planned shopping areas
 The retail locations which are well prearranged according to the architecture that provide

multiple outs and are under the same roof are called planned shopping areas. They have

huge land spaces and the collection of major retail brands. Malls, Specialty, and Lifestyle

centers are classified under planned shopping areas.

 High visibility to customers and harmful of customers is a major advantage of planned

shopping areas. But the disadvantages are that why security is required, and the cost of

occupancy is also high.

 STEPS TO CHOOSING THE RIGHT LOCATION
A retail company needs to follow the given steps for choosing the right location.

>(LOOK FOR) < >(APPRISE)< >(CHOOSE)<

Look for: All location

Apprise: Use various criteria

Choose: The best location

Step 1 - Analyze the market in terms of industry, product, and competitors

 How old is the company in this business? How many similar businesses are in the

location? What the new location is supposed to provide: new products or market? How

far is the competitor’s location?

Step 2 – Understand the Demographics

 Literacy of customers in the prospective location, age groups, profession, income groups,

lifestyles, religion.

Step 3 – Evaluate the Market Potential

 Density of population in the prospective location, anticipation of competition impact,

estimation of product demand, knowledge of laws and regulations in operations.

Step 4 - Identify Alternative Locations

 Is there any other potential location? What is its cost of occupancy? Which factors can be

compromised if there is a better location around?

Step 5 – Finalize the best and most suitable Location for the retail outlet.

MEASURING THE SUCCESS OF A LOCATION

Once the retail outlet is opened at the selected location, it is imperative to keep track of how

feasible the choice of location is. To understand this, the retail company carries out two types of

location assessments –

MACRO LOCATION EVALUATION

this is a form of evaluation used to measure the success of retail location at National level and is

conducted by the company to start the spelling of its product and open a retail business

internationally.

Following are the few steps which are carried out to conduct the retail location assessment:

 Detailed auditing of the market is carried out by analyzing the locations and the macro

environment, carried out by PEST analysis (Political, Economic, Social, and Technical).

 Other significant factors include the spending capacity of the custom nature of the

competition and the location availability are defined at a minimum acceptable level, and

the countries are right against each other.

MICRO LOCATION EVALUATION

At this level of evaluation, the location is evaluated against four factors namely −

 Population − Desirable number of suitable customers who will shop.

 Infrastructure − The degree to which the store is accessible to the potential customers.

 Store Outlet − Identifying the level of competing stores as well as complementary stores.

 Cost − Costs of development and operation. High startup and ongoing costs affect the

performance of retail business.

OBJECTIVES
 Conclude if the location of a store is affecting the rates and or prices at which products

are being sold.

 Cost to travel to and from three different locations of stores each location further than the

last.

 Corner shops, Wholesales and supermarkets are prime locations for observation.

LIMITATIONS
 Raheem has limited time to carry out these observations.

 Stores are filled with people on the go so data collection will be timely.

 The amount of money that is needed can not be pre-evaluated due to stores having their

own different charges/rates.

 METHOD OF DATA COLLECTION
I will make purchases at various establishments in different locations to have an estimate of the

maximum and the minimum price range of a product and expenses to travel, to and from said

locations.
 PRESENTAION OF DATA

Product Minimum price maximum price

Table #1: shows the price of
Bread $450 $500
Milk $350 $400
produce in a grocery store
Bottle water $100 $150
Soda $100 $150
Flour(1lbs) $80 $175
Rice(1lbs) $90 $185

Table #2: Show the price of produce in a whole sale

Product Minimum maximum
Bread $300 $450
Milk $400 $500
Bottle water $100 $150
Soda $100 $150
Flour(1lbs) $70 $100
Rice(1lbs) $80 $120

Table #3: Show the price of produce in a supermarket 1.39km from researcher
Product Minimum Maximum
Bread $450 $500
Milk $145.38 $460
Bottle water $50 $100
Soda $100 $150
Cooking Flour $940 $2249
Rice $1420 $2600
 ANALYSIS OF DATA
From the prices gathered on the tables show the prices of six products namely National Giant

Bread, Serge Fresh Milk, Wata Bottled Water, Bigga Soda, Cooking Flour and rice. All three

establishments have made different prices to keep a profit based on their individual locations.

The grocery store was 113.94 meters away from researcher and was considered walking distance

so no traveling expenses were calculated, all the prices recorded for a minimum total cost would

be $1,170 in total, and for the maximum prices the total would be $1,560. The name of the

grocery store is Rite selection and is located at Innswood village, 168 Canary avenue, Spanish

Town.

The wholesale was 1.45km from researcher and requires at least one mode of transportation cost

of public transport is $130 to and from the wholesale, all the prices were recorded for a minimum

total cost would be $1,050 in total, and for the maximum prices the total would be $1,470.

The