GGR252H5 Lecture Notes - Lecture 4: Distance Decay, Estimation Theory, Floor Area (Building)
Document Summary
Simply defined as observing and mapping the origins of actual customers. Redeemed coupons that had been mailed with the customer"s address. Mapping is easy with gis as is the subsequent analysis to define a continuous market area or market penetration: divides the entire region into zones (census tracts, block groups, etc. ) Outline what the market actually looks like by looking at the distribution of the customers around the individual supply point. Usually, distance is used to select the closest 60% and 80% of the customers to the store location. Demonstrates the distribution of the customers around an individual store. Store is represented by the little red hexagon. There is a percentage of customers indicated by each line. Dots on the top right-hand corner represent customers who have a reason to travel to the more dense area where the store is. Takes into account actual customer or dollar density of penetration and also distance decay.
