The impact of location factors on the attractiveness and optimal space shares of product categories
Campo, Katia × Gijsbrechts, Els Goossens, Tom Verhetsel, Ann #
Elsevier science bv
International Journal of Research in Marketing vol:17 issue:4 pages:255-279
In this paper, we investigate the impact of location characteristics on the relative attractiveness of product categories within a store, and formulate micromarketing implications for the allocation of store space to categories. We present a framework for the impact of store and trading area characteristics on category and store performance, which integrates acid extends previous geomarketing research. Building upon this framework, we propose a tractable and flexible procedure for assessing location influences, and derive optimal space allocation rules for different location profiles. Empirical application to national stores of a European retail chain confirms the differential impact of location characteristics on categories' attractiveness. Tailoring the allocation of store space to these location-based differences in category appeal leads to a significant increase in overall chain profitability. (C) 2000 Elsevier Science B.V, All rights reserved.