GGR252H1 Lecture Notes - Lecture 4: Distance Decay, Organic Growth, Walmart
Document Summary
Distance decay: further away from a location the less the interactions with that location. The concept of range: range: the point at which, there will be a point where interaction will fall to zero, because its costly to time and money. Boundaries between competitors basic principles: line of indifference target audience that is in the middle, have equal distance from both locations, so they will go either way. (aka. Hierarchical diffusion fashion, innovation, seen in technology. In retail: organic growth (contagious)- we"re in this location we spread from here, open new stores close to the original location, acquisitions and takeovers wal-mart took over a chain that was in business wilko, http://blog. kiwitobes,com/?p=51. The higher the price the lower the purchases. The further the distance the greater the cost to the household (distance vs. price tot household) Greater distance, the lower the quantity purchased (distance (range) vs. quantity purchased to household)
