Using gravity model to make store closing decisions: A data driven approach

Bahrami, Mohsen; Xu, Yilun; Tweed, Miles; Bozkaya, Burçin; Pentland, Alex

doi:10.1016/j.eswa.2022.117703

Cited by 10 publications

(6 citation statements)

References 39 publications

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“…Previous research using OLS, GLM, and GWR has generated mixed results in various settings and applications [103,104,121]. However, recent studies have shown that the PSO technique outperforms the other three methods, with the calibrated parameters using PSO producing better fit to the input data in the Huff model [91,105,107]. Therefore, in this study, we employ the PSO technique for preference parameter calibration.…”

Section: Preference Parameter Calibrationmentioning

confidence: 99%

“…However, numerous alternative factors have been suggested in the literature to gauge facility attractiveness from various perspectives. These factors encompass diverse aspects, such as store characteristics like product pricing and parking availability [89], demographic and purchase information including average customer income and brand loyalty [90], and more recently, neighborhood characteristics such as the abundance and variety of amenities surrounding a store [91]. These factors have been proposed as viable indicators of attractiveness for the respective stores, expanding the scope beyond the original measures utilized in the Huff model.…”

Section: Huff Gravity Modelmentioning

confidence: 99%

“…Store-Customer CBG demographic similarity (M ij ) This attractiveness factor quantifies the socioeconomic similarity between customers and the residents of the neighborhood where the store is situated. The inclusion of this factor in the Huff model has been grounded on the assumption that, given equal attractiveness and accessibility factors, customers are more inclined to select a store located in a neighborhood with socioeconomic characteristics similar to their own, compared to other alternatives [91]. To calculate this measure, we construct a seven-dimensional vector representing the demographic attributes of individuals residing in each CBG.…”

Section: Model Buildingmentioning

confidence: 99%

“…6. Customer chain loyalty (L ij ) The incorporation of this factor into the Huff model is founded on the notion that customer loyalty towards a particular chain or store can significantly influence their likelihood of selecting it for their future shopping visits [90,91]. We define the customer chain loyalty as the proportion of total visits made by customers from CBG i to all stores within a specific chain or the brand that owns store j during a given time period.…”

Section: Model Buildingmentioning

confidence: 99%

See 3 more Smart Citations

Customer Behavioral Shifts as a Result of the COVID-19 Pandemic: Are They “Sticky”?

Xu,

Bahrami,

Pentland

2024

Preprint

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This study examines the COVID-19 pandemic's impact on customer preferences for shopping destinations and its persistence using a quantitative approach. It uses a modified version of the Huff gravity model to quantify temporal shifts in customer preferences when it comes to choosing a store for shopping purposes. The study uses large-scale mobility and place datasets and census information to analyze department stores in New York City. Using clustering techniques and statistical inference models, this study estimates the immediate and long-term impact of the COVID-19 pandemic on customer behavioral shifts, highlighting the heterogeneity of response among different socioeconomic communities. The findings of this research, show that the proposed model effectively captures the dynamics of shopping location decisions and temporal visit patterns, allowing managers and marketers to understand customer preferences and adapt strategies accordingly. Retailers should use quantitative methods to update assumptions based on new consumption patterns, rather than expecting a complete return to pre-pandemic consumer behavior.

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Section: Preference Parameter Calibrationmentioning

confidence: 99%

Section: Huff Gravity Modelmentioning

confidence: 99%

Section: Model Buildingmentioning

confidence: 99%

Section: Model Buildingmentioning

confidence: 99%

See 2 more Smart Citations

Customer Behavioral Shifts as a Result of the COVID-19 Pandemic: Are They “Sticky”?

Xu,

Bahrami,

Pentland

2024

Preprint

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“…The gravity model is one of the measurement models that utilize Newton's law of gravity to measure spatial interactions. It has been widely used in different scientific fields [41][42][43]. With the deepening of the research, the theoretical basis of the gravity model has become more mature, and it has gradually become an important measurement method to study the interrelationship between two things in the socio-economy.…”

Section: B Materials Base Location Model 1) Gravity Modelmentioning

confidence: 99%

Site Selection of Multi-Level Material Bases in Coal Mine Considering the Hierarchical Reserve Mode and Demand Difference—A Case Study

Wang,

Zhou,

Bai

2024

IEEE Access

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As one of the important energy industries, the safe production of coal mines not only concerns the safety of employees, but also affects the sustainable development of society. Recent rescue cases have shown that the layout of material bases and the allocation of emergency materials need to be further optimized. For this problem, this paper adopts the material hierarchical reserve mode for the first time, combining the material hierarchical reserve mode, multi-level material base selection model, and fuzzy analytic hierarchy process (FAHP) method to determine the optimal location of the coal mine material base in Liaoning Province. Determine the reserve level of emergency materials through evaluation and clustering analysis of various emergency materials. Improve the traditional gravity model and construct a multi-objective planning model for multi-level material base site selection. Apply the reserve level of emergency materials and real regional data to the site selection model, and use genetic algorithm (GA) to solve the model. Then, the optimal site selection scheme was selected using FAHP, and sensitivity analysis was conducted. The research results indicate that: (1) 9 county-level, 6 city-level and 2 provincial-level material bases will be constructed. (2) The location selection of material bases is not only affected by costs, but also by the density of road networks.(3) The use of hierarchical material reserve mode can significantly reduce the construction cost of material bases. Compared to the traditional material reserve mode, it can reduce costs by 86.6%. Compared to a singlelevel material bases, it can still reduce costs by 74.7%. The research results of this paper can be used for the selection of emergency material bases and the allocation of emergency material reserves, which can reduce costs and promote the improvement of regional emergency rescue capabilities.

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Multi-store consumer satisfaction benchmarking using spatial multiple criteria decision analysis

Saridou,

Vavatsikos,

Grigoroudis

2024

Oper Res Int J

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Using gravity model to make store closing decisions: A data driven approach

Cited by 10 publications

References 39 publications

Customer Behavioral Shifts as a Result of the COVID-19 Pandemic: Are They “Sticky”?

Customer Behavioral Shifts as a Result of the COVID-19 Pandemic: Are They “Sticky”?

Site Selection of Multi-Level Material Bases in Coal Mine Considering the Hierarchical Reserve Mode and Demand Difference—A Case Study

Multi-store consumer satisfaction benchmarking using spatial multiple criteria decision analysis

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