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Effects of multipurpose shopping trips on retail store location in a duopoly

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  • Marianov, Vladimir
  • Eiselt, H.A.
  • Lüer-Villagra, Armin

Abstract

Models for retail store location typically assume that consumers make single purpose trips. However, frequently, consumers purchase more than one product during the same trip. This is the first attempt to propose including multipurpose trips in models locating commercial facilities selling non-essential products. We model and analyze the case in which two firms sell one product or type of products each. Consumers buy one, both, or none, depending on the utility they obtain. We solve 1000 instances and report the results, which indicate that firms significantly benefit from taking into account multipurpose trips when locating their stores. Based on the difficulty to solve one version of the problem, we also derive an efficient heuristic algorithm for the solution and test its performance.

Suggested Citation

  • Marianov, Vladimir & Eiselt, H.A. & Lüer-Villagra, Armin, 2018. "Effects of multipurpose shopping trips on retail store location in a duopoly," European Journal of Operational Research, Elsevier, vol. 269(2), pages 782-792.
    • Handle: RePEc:eee:ejores:v:269:y:2018:i:2:p:782-792
    DOI: 10.1016/j.ejor.2018.02.024
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    Cited by:

    1. Tammy Drezner & Morton O’Kelly & Zvi Drezner, 2023. "Multipurpose shopping trips and location," Annals of Operations Research, Springer, vol. 321(1), pages 191-208, February.
    2. Vladimir Marianov & H. A. Eiselt & Armin Lüer-Villagra, 2020. "The Follower Competitive Location Problem with Comparison-Shopping," Networks and Spatial Economics, Springer, vol. 20(2), pages 367-393, June.
    3. Ismaëlh Cissé & Jean Dubé, 2024. "Survival of new and small retail businesses facing mega‐retailers in non‐metropolitan areas—The case of Walmart in the province of Quebec," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    4. Crönert, Tobias & Martin, Layla & Minner, Stefan & Tang, Christopher S., 2024. "Inverse optimization of integer programming games for parameter estimation arising from competitive retail location selection," European Journal of Operational Research, Elsevier, vol. 312(3), pages 938-953.
    5. Lüer-Villagra, Armin & Marianov, Vladimir & Eiselt, H.A. & Méndez-Vogel, Gonzalo, 2022. "The leader multipurpose shopping location problem," European Journal of Operational Research, Elsevier, vol. 302(2), pages 470-481.
    6. H. A. Eiselt & Vladimir Marianov, 2020. "Stability of utility functions and apportionment rules in location models," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(3), pages 772-792, October.
    7. Yu Sun & Feng Lian & Zhong-Zhen Yang, 2022. "Optimizing the location of physical shopping centers under the clicks-and-mortar retail mode," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2288-2314, February.
    8. Méndez-Vogel, Gonzalo & Marianov, Vladimir & Lüer-Villagra, Armin & Eiselt, H.A., 2023. "Store location with multipurpose shopping trips and a new random utility customers’ choice model," European Journal of Operational Research, Elsevier, vol. 305(2), pages 708-721.

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