Methods for Determining Store Trade Areas, Market Penetration, and Potential Sales

Applebaum, William

doi:10.2307/3150201

Cited by 104 publications

(58 citation statements)

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“…The use of analogous stores to aid the forecasting of new sites is another widely established procedure employed to inform sales estimates (Rogers and Green, 1979). However, the success of this technique depends both on the existence of, along with the analyst's ability to identify, stores in the current portfolio that are similar to the site and wider catchment under examination (Applebaum, 1966).…”

Section: Assessment Techniques and Identifying The Location Planning mentioning

confidence: 99%

“…[Take in Tables 1 & 2] Unsurprisingly given the spatial focus of this process an extensive historical research literature within economic geography exists concerning forecasting methodologies for retail stores (Applebaum 1966;Applebaum 1968;Birkin et al 2002;Davies and Rogers 1984;Mendes and Themido 2004;Wrigley, 1988). The focus of much of this research has been on the development of a range of modelling techniques to allow analysts to increase decision accuracy.…”

Section: Assessment Techniques and Identifying The Location Planning mentioning

confidence: 99%

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Managing communities and managing knowledge: strategic decision making and store network investment within retail multinationals

Wood

Reynolds

2011

Journal of Economic Geography

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The manner in which knowledge is spatially generated, reproduced and diffused is of interest to students of economic geography and business management alike. This paper seeks to contribute to these debates by drawing on the results of a year-long study with analysts working in location-planning departments of multinational retailers to determine: a) how different types of knowledge are mediated within organisational contexts to inform store development; and b) the extent to which analysis can be successfully formalised into "best practice". We find that while quantitative models of sales forecasting have become established, analysis on a dayto-day basis sees judgements made by analyst "communities" without perfect data, as experience and intuitive insights contribute to corporate decision-making. Furthermore, a number of communities-of-practice across the retail firm, consisting of actors with different backgrounds and agendas, contribute to outcomes. Understanding the power relations embedded within (and across) these communities is essential to conceptualise the store expansion process.

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Section: Assessment Techniques and Identifying The Location Planning mentioning

confidence: 99%

Section: Assessment Techniques and Identifying The Location Planning mentioning

confidence: 99%

Managing communities and managing knowledge: strategic decision making and store network investment within retail multinationals

Wood

Reynolds

2011

Journal of Economic Geography

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“…The analogy method is non-geographic and often implemented by regression analysis as first proposed by Applebaum (1965Applebaum ( , 1966. This approach has subsequently been developed to determine the levels of market penetration using stores and shopping as example (Olsen and Lord, 1979).…”

Section: Delimiting the Health Service Areamentioning

confidence: 99%

“…There are three main methods to delimit trade areas: the analogy method (Applebaum, 1965(Applebaum, , 1966Erickson and Finkler, 1985), the proximal area method (Okabe et al, 2008;Peipins, 2013;Guerrero and Kao, 2013) and the gravity method (Huff, 1963(Huff, , 1964. The analogy method is non-geographic and often implemented by regression analysis as first proposed by Applebaum (1965Applebaum ( , 1966.…”

Section: Delimiting the Health Service Areamentioning

confidence: 99%

Use of geographical information systems for delimiting health service areas in China

Xiong

Luo

2017

Geospat Health

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With the objective of choosing a practical and valid method to delimit health service areas of regional health service centres to build a regional basic health service network, we first drew lessons from traditional geographic methods of delimiting trade areas and then applied two methods to delimit health service areas, i.e. the proximal method and the gravity method. We verified the effectiveness of these methods by an index of similarity with the aid of real in-patient data. Calculation of the similarity indices shows that health service areas delimited by the proximal method has an 87.3% similarity to the real health service area, while the gravity method gives 88.6%. Our conclusion is that both methods are suitable for delimiting health service areas at regional health service centres, but find that the proximal method is more practicable in operational terms for delimiting health service areas in region health planning.

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“…The trade area was a circle with a radius of 400 metres. We chose this distance because scholars have found that more than 80% of a supermarket's consumers come from within this radius Applebaum 1966 Weisbrod et al (1984) highlight the financial costs involved in obtaining information necessary to calibrate the MCI model for the dependent variable π ij , referring specifically to the number of questionnaires needed. Drezner T. and DreznerZ.…”

Section: Variablesmentioning

confidence: 99%

Geomarketing Models in Supermarket Location Strategies

Baviera‐Puig

Buitrago‐Vera

Escribá-Pérez

2016

Journal of Business Economics and Management

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Abstract.Choosing where to open a new outlet is a critical decision for retail firms. Building on the multiplicative competitive interaction model from retail location theory, this paper develops a geomarketing model that can be used to devise supermarket location strategies. First, attributes that explain a supermarket's pull on consumers were determined. These attributes included objective (taken from databases and empirical observation) and subjective (based on managerial judgements) variables relating to the supermarket and its trade area. Then, geographic information system tools were used to analyse real data at a highly detailed level (road section). From a geomarketing viewpoint, the model shows that sociodemographic characteristics of the supermarket's trade area affect firms' location strategies. The paper also discusses improvements for calibrating and validating this model. Adding the spatial organization of supermarkets to the model yields a different consumer behaviour pattern. This geomarketing model can help managers to design supermarket location strategies according to shop features, competitors and environment, whilst estimating supermarket sales.

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Methods for Determining Store Trade Areas, Market Penetration, and Potential Sales

Cited by 104 publications

References 0 publications

Managing communities and managing knowledge: strategic decision making and store network investment within retail multinationals

Managing communities and managing knowledge: strategic decision making and store network investment within retail multinationals

Use of geographical information systems for delimiting health service areas in China

Geomarketing Models in Supermarket Location Strategies

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