Emerging Approaches to Retail Outlet Management

Cover Emerging Approaches to Retail Outlet Management
Emerging Approaches to Retail Outlet Management
Gary Louis Lilien
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p. = V— ^— (where j refers to the dealer, o to the dealer of interest) ^ I ^ij J _ Pull of dealer x make preference ^ Pull of dealer x make preference all dealers The authors postulate an exponential drop off in dealer pull with distance and equate make preference with brand share. A procedure is developed to estimate the parameters of the dealer pull function and the model is shown to fit data quite well.
-14- This model, similar in spirit to the supermarket models, suggests a brcind-size effe
...ct, included in the model as make -preference. And the approach seems fruitful as the model fits data well. A limitation seems to be the use of distance from dealership as a surrogate for convenience. And, again, a S-curve effect might be incorporated with some benefit.
2. 4 Case 4; Retail Banking The authors have used a model similar to those above, for retail bank outlet potential, where site-potential is modeled as . , Site Draw Site potential = ^ Competing local site draws Two phenomena are of interest here.


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