What is the primary objective for a service or retail organization when making a location decision?

• A. Reducing production costs through economies of scale
• B. Minimizing transportation costs for raw materials
• C. Maximizing customer accessibility and convenience
• D. Increasing automation in operations

Answer: (C)

Verified step by step guidance

1. Understand that the primary objective of a service or retail organization when choosing a location is to attract and serve customers effectively.
2. Recognize that unlike manufacturing firms, service and retail businesses focus more on customer access rather than just minimizing input costs.
3. Consider that maximizing customer accessibility and convenience means selecting a location that is easy for customers to reach, which can increase sales and customer satisfaction.
4. Note that reducing production costs or minimizing transportation costs for raw materials are more relevant objectives for manufacturing firms, not primarily for service or retail organizations.
5. Conclude that the key goal in location decisions for service or retail businesses is to enhance customer accessibility and convenience to drive business success.