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Validating the Gravity-Based Competitive Location Model Using Inferred Attractiveness

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  • Tammy Drezner
  • Zvi Drezner

Abstract

The attractiveness of retail facilities is an essential component of models analyzing competition among retail facilities. In this paper we introduce an innovative method for inferring retail facility attractiveness. Readily available data from secondary sources about customers' buying power and sales volumes obtained by competing retail facilities are used. The gravity-based competitive facility location model is used to predict sales. The attractiveness of the retail facilities are inferred from these data. The procedure is used to confirm the gravity competitive facility location model. Inferred attractiveness results based on empirical data from Orange County, California, were compared with an independent survey with excellent match. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Tammy Drezner & Zvi Drezner, 2002. "Validating the Gravity-Based Competitive Location Model Using Inferred Attractiveness," Annals of Operations Research, Springer, vol. 111(1), pages 227-237, March.
    • Handle: RePEc:spr:annopr:v:111:y:2002:i:1:p:227-237:10.1023/a:1020910021280
    DOI: 10.1023/A:1020910021280
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    Cited by:

    1. Drezner, Zvi & Eiselt, H.A., 2024. "Competitive location models: A review," European Journal of Operational Research, Elsevier, vol. 316(1), pages 5-18.
    2. Merino, María & Ramirez-Nafarrate, Adrian, 2016. "Estimation of retail sales under competitive location in Mexico," Journal of Business Research, Elsevier, vol. 69(2), pages 445-451.
    3. Roig-Tiernoa, Norat & Baviera-Puiga, Amparo & Buitrago-Veraa, Juan & Escribá-Pereza, Carmen, 2018. "Assessing food retail competitors with a multi-criteria GIS-based method," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01), June.
    4. Wenxuan Shan & Qianqian Yan & Chao Chen & Mengjie Zhang & Baozhen Yao & Xuemei Fu, 2019. "Optimization of competitive facility location for chain stores," Annals of Operations Research, Springer, vol. 273(1), pages 187-205, February.
    5. S Rezapour & R Zanjirani Farahani & T Drezner, 2011. "Strategic design of competing supply chain networks for inelastic demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(10), pages 1784-1795, October.
    6. Zvi Drezner & Dawit Zerom, 2024. "A refinement of the gravity model for competitive facility location," Computational Management Science, Springer, vol. 21(1), pages 1-18, June.
    7. Tammy Drezner, 2009. "Location of retail facilities under conditions of uncertainty," Annals of Operations Research, Springer, vol. 167(1), pages 107-120, March.
    8. Fernandez, Jose & Pelegri'n, Blas & Plastria, Frank & Toth, Boglarka, 2007. "Solving a Huff-like competitive location and design model for profit maximization in the plane," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1274-1287, June.
    9. Dolega, Les & Pavlis, Michalis & Singleton, Alex, 2016. "Estimating attractiveness, hierarchy and catchment area extents for a national set of retail centre agglomerations," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 78-90.
    10. Lin, Yun Hui & Tian, Qingyun, 2021. "Branch-and-cut approach based on generalized benders decomposition for facility location with limited choice rule," European Journal of Operational Research, Elsevier, vol. 293(1), pages 109-119.
    11. Bersani, Chiara & Minciardi, Riccardo & Sacile, Roberto & Trasforini, Eva, 2009. "Network planning of fuelling service stations in a near-term competitive scenario of the hydrogen economy," Socio-Economic Planning Sciences, Elsevier, vol. 43(1), pages 55-71, March.
    12. Zhang, Yue & Liang, Liping & Liu, Emma & Chen, Chong & Atkins, Derek, 2016. "Patient choice analysis and demand prediction for a health care diagnostics company," European Journal of Operational Research, Elsevier, vol. 251(1), pages 198-205.
    13. Lin, Yunhui & Wang, Yuan & Lee, Loo Hay & Chew, Ek Peng, 2022. "Profit-maximizing parcel locker location problem under threshold Luce model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    14. Küçükaydin, Hande & Aras, Necati & Kuban AltInel, I., 2011. "Competitive facility location problem with attractiveness adjustment of the follower: A bilevel programming model and its solution," European Journal of Operational Research, Elsevier, vol. 208(3), pages 206-220, February.
    15. H Küçükaydın & N Aras & İ K Altınel, 2011. "A discrete competitive facility location model with variable attractiveness," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(9), pages 1726-1741, September.
    16. Haase, Knut & Hoppe, Mirko, 2008. "Standortplanung unter Wettbewerb - Teil 1: Grundlagen," Discussion Papers 2/2008, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    17. Florian Straub & Otto Maier & Dietmar Göhlich, 2021. "Car-Access Attractiveness of Urban Districts Regarding Shopping and Working Trips for Usage in E-Mobility Traffic Simulations," Sustainability, MDPI, vol. 13(20), pages 1-29, October.
    18. Yiu, Chung Yim & Truong, Quan Le & Kou, Jiaying & Cheung, Ka Shing, 2024. "Retail rings of influence: Rethinking retail catchment analysis in the light of purchasing power," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    19. Erdogan, Günes & Cordeau, Jean-François & Laporte, Gilbert, 2010. "The Attractive Traveling Salesman Problem," European Journal of Operational Research, Elsevier, vol. 203(1), pages 59-69, May.

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