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PPT 8-1
Chapter 8
Site Location
McGraw-Hill/Irwin
PPT 8-2
Levy/Weitz: Retailing Management, 5/e Copyright 2004 by The McGraw-Hill Companies, Inc. All rights
Retailing Strategy
Retail Locations
Chapter 7
Site Locations
Chapter 8
Chapter 7
General Description of the Location Types
Advantages and Disadvantages of Different Location
Appendix Terms and Condition Involved in Leasing
Sites
Chapter 8
Considerations in Selecting Area for Locating Store
Issues in Evaluating Specific Sites
PPT 8-4
Three Levels of Analysis
PPT 8-5
Trade Area Issues
PPT 8-6
Factors Affecting Demand
for a Region or Trade Area
PPT 8-7
Factors Affecting the
Attractiveness of a Site
PPT 8-8
Convenience of Going to Site
Accessibility
PPT 8-9
Location Within a Center
PPT 8-11
Estimating Demand for a New Location
PPT 8-12
Trade Area
PPT 8-13
Factors Defining Trade Areas
Accessibility
Natural & Physical Barriers
Type of Shopping Area
Type of Store
Competition
Parasite Stores
PPT 8-14
Oblong Trade Area Caused by
Major Highways and Natural Boundaries
PPT 8-15
Sources of Information
Customer Spotting
Census Data
Geodemographic Information
Systems
ACORN
Information on Competition
Yellow Pages
PPT 8-16
Customer Spotting
PPT 8-17
Census Data of the U.S.
PPT 8-18
Geodemographic Information Systems
PPT 8-19
Indices for Assessing Sales Potential
PPT 8-20
Sources for Measuring Competition
PPT 8-22
Competitive Analysis for
Edward Breiner
PPT 8-23
Methods for Estimating Demand
Analog Approach
Huffs Model
PPT 8-24
The Analog Approach
3 Steps:
PPT 8-25
Income Distribution of Three-Mile
Ring Surrounding Edward Breiner Optical
PPT 8-26
Demographic Trends for Three-Mile
Ring Surrounding Edward Breiner Optical
PPT 8-27
Breiner Optical
PPT 8-28
Descriptions of Largest PRIZM
Clusters Surrounding Edward Breiner Optical
PPT 8-29
Description of Largest PRIZM
Clusters Surrounding Edward Breiner Optical
PPT 8-30
Description of Largest PRIZM
Clusters Surrounding Edward Breiner Optical
PPT 8-31
Description of Largest PRIZM
Clusters Surrounding Edward Breiner Optical
PPT 8-32
Descriptions of Edward Breiner Optical
and Four Potential Locations Trade Areas
PPT 8-33
Multiple Regression Analysis
PPT 8-34
Multiple Regression Steps
Current trade areas are determined by using
the customer spotting technique
Primary, secondary, and tertiary zones are
determined by plotting customers on a map
Select appropriate measures of
performance, such as per capita sales or
market share.
Select a set of variables that may be useful
in predicting performance.
Solve the regression equation and use it to
project performance for future sites.
PPT 8-35
Yearly Sales, Population, and
Income for 10 Home Improvement Centers
PPT 8-36
Regression of Population on Sales
PPT 8-37
Illustration of Regression Approach
PPT 8-38
Huffs Gravity Model
PPT 8-39
Huffs Model Formula
S j Tij b
Pij n
S j Tij b
j 1
Where
Pij Probability of a customer at a given point of origin i traveling to a
particular shopping center j
S j Size of shopping center j
PPT 8-40
University and Shopping Centers:
Gravity Model Illustration
PPT 8-41
Huffs Model: The Solution
Pij = 1000 32
(1000 32) + (500 52) + (100 12)
Probability = .48
PPT 8-42