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1.3.1. Applications in retail and mass distribution

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Retailing was among the first sectors to be interested in geomarketing techniques. The applications focus on problems related to the analysis of trading areas and the location of points of sale. As far as trading areas are concerned, professional methods were once often based on the determination of primary, secondary and tertiary (or marginal) areas, known as the analog method (Applebaum 1966). This more or less circular representation around the point of sale has been called into question with the appearance of geomarketing software and the possibility of geolocating store customers from their addresses obtained by questioning the customer at the checkout and then thanks to loyalty cards now dematerialized in most stores. The trading areas of the stores no longer have anything to do with concentric circles: we are in fact dealing with “archipelagos” (Viard 1994).

Concerning location problems, articles in scientific journals were mainly published in the 1980s (Ghosh and McLafferty 1982; Ghosh and Craig 1983; Ghosh 1984; Ghosh 1986; Ghosh and Craig 1986; Ghosh and Craig 1991) and based on location models, such as MCI (Multiplicative Competitive Interaction) (Nakanishi and Cooper 1974), useful both for understanding consumer spatial behavior (see Chapter 2) and georetailing with point of sale location (see Chapter 4).

Location-Based Marketing

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