IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v44y2014i2p153-176.html
   My bibliography  Save this article

Market Reach for Retail Services

Author

Listed:
  • Johan Klaesson

    (Jönköping International Business School)

  • Özge Öner

    (Research Institute of Industrial Economics, Sweden)

Abstract

Retail is concentrated in areas where demand is high. A measure of market potential can be used to calculate place-specific demand for retail services. The effect of distance on market potential depends on the willingness of consumers to travel for the products they purchase. The spatial reach of demand is frequently operationalized using a distance-decay function. The purpose of this paper is to estimate such distance-decay functions for different branches of the retail sector. The paper uses spatial data from the Stockholm region in Sweden. The results indicate that, in line with theory, there are indeed differences in the distance decay of demand among retail subsectors.

Suggested Citation

  • Johan Klaesson & Özge Öner, 2014. "Market Reach for Retail Services," The Review of Regional Studies, Southern Regional Science Association, vol. 44(2), pages 153-176, Summer.
    • Handle: RePEc:rre:publsh:v44:y:2014:i:2:p:153-176
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/44.2.3/pdf/
    File Function: To View On Journal Page
    Download Restriction: no
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/download/44.2.3/pdf/
    File Function: To Download Article
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. B. Curtis Eaton & Richard G. Lipsey, 1975. "The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(1), pages 27-49.
    2. Bunch, David S. & Bradley, Mark & Golob, Thomas F. & Kitamura, Ryuichi & Occhiuzzo, Gareth P., 1993. "Demand for clean-fuel vehicles in California: A discrete-choice stated preference pilot project," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(3), pages 237-253, May.
    3. Shunfeng Song, 1996. "Some Tests of Alternative Accessibility Measures: A Population Density Approach," Land Economics, University of Wisconsin Press, vol. 72(4), pages 474-482.
    4. Öner, Özge & Larsson, Johan P., 2013. "Location and Co-location in Retail - A Probabilistic Approach Using Geo-coded Data for Swedish Metropolitan Retail Markets," HUI Working Papers 80, HUI Research.
    5. M Batty, 1971. "Exploratory Calibration of a Retail Location Model Using Search by Golden Section," Environment and Planning A, , vol. 3(4), pages 411-432, December.
    6. Johan Larsson & Özge Öner, 2014. "Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 385-408, March.
    7. Ingene, Charles A. & Yu, Eden S. H., 1981. "Determinants of retail sales in SMSAs," Regional Science and Urban Economics, Elsevier, vol. 11(4), pages 529-547, November.
    8. John J. Gruidl & Dimitri Andrianacos, 1994. "Determinants Of Rural Retail Trade: A Case Study Of Illinois," The Review of Regional Studies, Southern Regional Science Association, vol. 24(1), pages 103-118, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mihaescu, Oana & Korpi, Martin & Öner, Özge, 2020. "Are New Shopping Centers Drivers of Development in Large Metropolitan Suburbs? The Interplay of Agglomeration and Competition Forces," Ratio Working Papers 332, The Ratio Institute.
    2. Daunfeldt, Sven-Olov & Mihaescu, Oana & Öner, Özge & Rudholm, Niklas, 2019. "Retail and place attractiveness: The effects of big-box entry on property values," HFI Working Papers 1, Institute of Retail Economics (Handelns Forskningsinstitut).
    3. Giulio Grossi & Marco Mariani & Alessandra Mattei & Patrizia Lattarulo & Ozge Oner, 2020. "Direct and spillover effects of a new tramway line on the commercial vitality of peripheral streets. A synthetic-control approach," Papers 2004.05027, arXiv.org, revised Nov 2023.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eun Yeong Seong & Youngjae Lim & Chang Gyu Choi, 2022. "Why are convenience stores clustered? The reasons behind the clustering of similar shops and the effect of increased competition," Environment and Planning B, , vol. 49(3), pages 834-846, March.
    2. Mark J. Eppli & John D. Benjamin, 1994. "The Evolution of Shopping Center Research: A Review and Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 5-32.
    3. Ke Ding & Toshitaka Gokan & Xiwei Zhu, 2017. "Small business and the self-organization of a marketplace," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 1-19, January.
    4. Öner, Özge, 2014. "Retail Productivity: Investigating the Influence of Market Size and Regional Hierarchy," Working Paper Series 1047, Research Institute of Industrial Economics.
    5. Ricardo Flores-Fillol & Rosella Nicolini, "undated". "Aerotropolis: an aviation-linked space," Working Papers 283, Barcelona School of Economics.
    6. Ito, Nobuyuki & Takeuchi, Kenji & Managi, Shunsuke, 2019. "Do battery-switching systems accelerate the adoption of electric vehicles? A stated preference study," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 85-92.
    7. Kocenda, Evzen & Hanousek, Jan & Engelmann, Dirk, 2008. "Currencies, competition, and clans," Journal of Policy Modeling, Elsevier, vol. 30(6), pages 1115-1132.
    8. Sadayuki, Taisuke, 2018. "Measuring the spatial effect of multiple sites: An application to housing rent and public transportation in Tokyo, Japan," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 155-173.
    9. Tira, Maurizio & Tiboni, Michela & Badiani, Barbara, 2002. "High speed/high capacity railway and regional development - evaluation of effects on spatial accessibility," ERSA conference papers ersa02p362, European Regional Science Association.
    10. Ozaki, Ritsuko & Sevastyanova, Katerina, 2011. "Going hybrid: An analysis of consumer purchase motivations," Energy Policy, Elsevier, vol. 39(5), pages 2217-2227, May.
    11. Borenstein, Severin & Netz, Janet, 1999. "Why do all the flights leave at 8 am?: Competition and departure-time differentiation in airline markets," International Journal of Industrial Organization, Elsevier, vol. 17(5), pages 611-640, July.
    12. H Kohsaka, 1989. "An Analysis of Competitive Oscillations between Japanese Twin Cities," Environment and Planning A, , vol. 21(6), pages 803-816, June.
    13. Axsen, Jonn & Kurani, Kenneth S., 2009. "Interpersonal Influence within Car Buyers’ Social Networks: Five Perspectives on Plug-in Hybrid Electric Vehicle Demonstration Participants," Institute of Transportation Studies, Working Paper Series qt35w7s3jp, Institute of Transportation Studies, UC Davis.
    14. Mohajan, Devajit & Mohajan, Haradhan, 2023. "The Responses of an Organization for the Increase in Wage Rates: Profit Maximization Cases," MPRA Paper 118238, University Library of Munich, Germany, revised 10 Jun 2023.
    15. Mingshu Wang, 2021. "Polycentric urban development and urban amenities: Evidence from Chinese cities," Environment and Planning B, , vol. 48(3), pages 400-416, March.
    16. Jen-Jia Lin & Chi-Hau Chen & Tsung-Yu Hsieh, 2016. "Job accessibility and ethnic minority employment in urban and rural areas in Taiwan," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 363-382, June.
    17. Dimitrios Xefteris, 2018. "Candidate valence in a spatial model with entry," Public Choice, Springer, vol. 176(3), pages 341-359, September.
    18. Ericka Costa & Dario Montemurro & Diego Giuliani, 2019. "Consumers’ willingness to pay for green cars: a discrete choice analysis in Italy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(5), pages 2425-2442, October.
    19. Ilenia Epifani & Rosella Nicolini, 2013. "On The Population Density Distribution Across Space: A Probabilistic Approach," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 481-510, August.
    20. Shino, Junnosuke & Kawasaki, Ryo, 2012. "Farsighted stable sets in Hotelling’s location games," Mathematical Social Sciences, Elsevier, vol. 63(1), pages 23-30.

    More about this item

    Keywords

    retail; market potential; distance-decay;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v44:y:2014:i:2:p:153-176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tammy Leonard & Lei Zhang (email available below). General contact details of provider: http://www.srsa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.