TY - JOUR
T1 - Effects of multipurpose shopping trips on retail store location in a duopoly
AU - Marianov, Vladimir
AU - Eiselt, H. A.
AU - Lüer-Villagra, Armin
N1 - Funding Information:
This research was supported by Grant FONDECYT 1160025 and by the Complex Engineering Systems Institute through grants ICM P-05-004-F and CONICYT PIA FB0816 . This support is gratefully acknowledged. We also much appreciate the thoughtful comments of the anonymous referees, who have enabled us to clarify a number of issues and produce a more tightly written paper.
Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2018/1/1
Y1 - 2018/1/1
N2 - 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.
AB - 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.
KW - Facility location
KW - Leader-follower planning
KW - Multipurpose shopping trips
KW - Store clustering
UR - http://www.scopus.com/inward/record.url?scp=85042617547&partnerID=8YFLogxK
U2 - 10.1016/j.ejor.2018.02.024
DO - 10.1016/j.ejor.2018.02.024
M3 - Article
AN - SCOPUS:85042617547
SN - 0377-2217
VL - 269
SP - 782
EP - 792
JO - European Journal of Operational Research
JF - European Journal of Operational Research
IS - 2
ER -