Spatial Demand Models in an Intrabrand Context

Abstract

The rise in vertical marketing systems (VMS) has had a profound impact on the nature of retail competition. The increase in intrasystem competition between outlets of the same VMS points to the need for increased sophistication in market area analysis models to aid in strategy development. This article develops a set of models to address critical managerial issues concerning retail locational strategy in an intrabrand competitive setting. Findings demonstrate the need to evaluate outlet-specific determinants of patronage behavior, in addition to those of a generic nature, in analyzing intrabrand competition.