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Lecture 9

Lecture 9 .docx

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University of Toronto St. George
Stephen Swales

Census Tract scale use 2006 EXAM: What is the main advantage of all the techniques?  They are capable of predicting the market correctly Home Depot Project  Noted down everyone’s license plates and then went to the ministry to ask for the postal codes  Asked for postal codes because they are unique to only one area unlike 44 Queen Street , that can encode for multiple locations in the country , also it’s a very fast method and don’t portray information that is specific to an individual  Another way: the contests stores have and they ask you to fill out a ballet , in that you write your postal code Which Method DO they favor the most and why?  Methods: loyalty cards, affinity cards – the store gets your loyalty and your address, also they can see your spending habits by looking at all your purchases  Always want to know where you live  The Beer and Diaper analogy – look at textbook , young men picked up diapers and bought beer o That would give the stores to either put the diapers and beer together in one section or put them in two polar ends of the store ( so that they pass by all other goods)  Paying with Cash is the one way that they will not have access to any of our information  Traditionally VIDEO RENTAL stores would get the data because you weren’t able to leave the store without giving your postal code to the store  THEY REALLY PUSH THE company CREDIT CARDS o They get your information; postal code o Importantly they get your debt, your paying them interest then some other company Market Penetration Techniques Customer Spotting  What proportion of the residents/households in a given area actually shop at the subject store/centre? These approaches based on the early work od APpplebaum (1968). Differe from the normative approaches such as Huff and Theissen because they attempt to measure the actual performance (penetration) of the stroe rather thatn suggest “ what should be” given certain asumptions. Labour intensive? Expensive? TO APPLY THE TECHNIQUES WE NEED: Data collection: Sampling sales slips, in-store
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