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A Market Coverage Model For Producer Services

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  • Barry Lentnek
  • Alan MacPherson
  • David Phillips

Abstract

ABSTRACT We present a model of the optimum market size of a producer service firm that is based on that contact requirements of its service as well as the firm's distance to its prospective clients. The effects on market size of differing contact requirements are discussed from a comparative statics perspective. Optimum market sizes are shown to vary with different values of service duration and demand frequency. These differences may exist between producer service industries, and they may also arise from changes over time in the market requirements of a particular industry. The paper concludes with suggestions for improving the muscle. An impartial agenda for advancing the modeling interests of service‐sector researchers also presented.

Suggested Citation

  • Barry Lentnek & Alan MacPherson & David Phillips, 1995. "A Market Coverage Model For Producer Services," Papers in Regional Science, Wiley Blackwell, vol. 74(4), pages 389-399, October.
    • Handle: RePEc:bla:presci:v:74:y:1995:i:4:p:389-399
    DOI: 10.1111/j.1435-5597.1995.tb00647.x
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    Cited by:

    1. Robert J. Bennett & Daniel J. Graham, 1998. "Explaining Size Differentiation of Business Service Centres," Urban Studies, Urban Studies Journal Limited, vol. 35(9), pages 1457-1480, August.
    2. Robert Bennett & William Bratton & Paul Robson, 2000. "Business Advice: The Influence of Distance," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 813-828.
    3. Adarsh Anand & Mohini Agarwal & Gunjan Bansal & A. H. S. Garmabaki, 2016. "Studying product diffusion based on market coverage," Journal of Marketing Analytics, Palgrave Macmillan, vol. 4(4), pages 135-146, December.

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