GGR252H1 Lecture Notes - Lecture 6: The Beer Store, Bounded Rationality, Voronoi Diagram

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25 Feb 2014
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February 11, 2014: north america can be considered as a single entity in terms of a locational strategy. Establish trade area: able to make decisions about the market area to appeal to. Site selection method = evaluating the potential sites (e. g. , at the vertices: specific location (e. g. , actual address) Trade and service area analysis (market area delimitation: geography matters in commercial success. Where within the city: trade/market area, which site within the market area (site selection), techniques for market area delimitation. Normative models (e. g. , theoretical, but are used in practice) Converse breakpoint method (distance, and size/attractiveness: simple gravity model, spatial monopoly technique. Huff model (distance, size, and probability: sophisticated gravity model, overlapping markets, there is some chance that you can go to any destination based on the relative proximity and the relative size. Normative models have one advantage over behavioural models. Behavioural models are unable to customer spot for a potential store location.

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