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- Title
Trade Area Analysis Using Trend Surface Mapping.
- Authors
PETERSON, ROBERT A.
- Abstract
Trade area analysis has long been recognized as one of the fundamental prerequisites for successful marketing management. Not only is such analysis essential for effectively allocating firm resources, but it is vital as an initial step in understanding consumer behavior [18, pp. 128-9]. Thus, over the past 50 years numerous attempts have been made to provide an efficient method for defining and delineating trade areas. For example, in 1933 McGill [13] attempted to develop a suitable analytic method, and most marketers are familiar with the Law of Retail Gravitation [17], a pioneering effort to establish trade area boundaries mathematically, as well as the work in [1, 2, 4, 9]. This article has presented a methodological approach--trend surface mapping--to quantitative trade area analysis. Through trend surface mapping it is not only possible to model a trade area, but when judiciously applied, trend surface mapping can also serve as a basis for developing corporate marketing strategies. Three major benefits arise from trend surface mapping: 1. gross structural parameters of a trade area are delineated; 2. specific portions of a trade area can be identified where economically important departures in penetration occur; and 3. characteristics of different trade areas can be compared or characteristics of a single trade area can be analyzed at different points in time. More specifically, trend surface mapping can be used to determine the form of a trade area.
- Subjects
CONSUMER behavior research; MARKETING management; MARKET area; MARKETING planning; MARKETING research; MARKETING strategy; STRATEGIC planning; BUSINESS logistics; INDUSTRIAL management; BUSINESS success; MATHEMATICAL models of consumption; LOCATION analysis
- Publication
Journal of Marketing Research (JMR), 1974, Vol 11, Issue 3, p338
- ISSN
0022-2437
- Publication type
Article
- DOI
10.2307/3151157