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

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

Research output: Contribution to journalArticle

5 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)782-792
Number of pages11
JournalEuropean Journal of Operational Research
Volume269
Issue number2
DOIs
Publication statusAccepted/In press - 1 Jan 2018

Keywords

  • Facility location
  • Leader-follower planning
  • Multipurpose shopping trips
  • Store clustering

ASJC Scopus subject areas

  • Modelling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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