Lecture 4 Trade Area Delimitation and Analysis. Trade Area Conceptualization (1): Refers to the spatial extent (or distribution) of customers around an individual stores or a network of stores.
Trade Area Conceptualization (1):
number of customers,
number of transactions
dollar value of transactions
Secondary data : the most commonly used are census data
Primary data: compiled by retailers.
Census tract confined
Huff model requires the following data:
S. P. = No. of HH * average HH income
* % of income spent on consumer goods
S.P. in building 1 at supermarket A:
=567 * $26,700 * 0.3 * 0.93