Skip to main content

Abstract

A Multiplicative Competitive Interaction Model may be used for predicting the sales volumes for new locations of large scale stores or shopping centers. The paper reviews the least squares technique for evaluating the parameters of the model. Teekens ’ approach is applied to obtain the maximum likelihood estimators for the multiplicative competitive interaction model. The minimum variance unbiased estimators and limitations of the various techniques are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aitchison, J. and Brown, J.A.C., The Lognormal Distribution, Cambridge University Press, 1966.

    Google Scholar 

  • Applebaum, William, Methods For Determining Store Trade Areas, Market Penetration, and Potential Sales, Journal of Marketing Research Volume III, May 1966.

    Google Scholar 

  • Bradu, Dan and Mundlak, Yair, Estimation In Log-normal Linear Models, Journal of American Statistical Association, Volume 65, March 1970.

    Google Scholar 

  • Finney, D.J., On the Distribution Of A Variate Whose Logarithm Is Normally Distributed, Supplement To The Journal Of The Royal Statistical Society, Volume 7, 1951.

    Google Scholar 

  • Haines, George Jr., Simon, Leonard S., and Alexis Marcus, Maximum Likelihood Estimation of Central-City Food Trading Areas, Journal Of Marketing Research, Volume LX, May 1972.

    Google Scholar 

  • Hlavac, Theodore, E., Jr. and Little, John D.C., A Geographical Model Of An Urban Automobile Market, in David B. Hertz and Jacques Meese (editors), Proceedings Of The Fourth InterNational Conference In Operations Research, John Wiley and Sons, New York, 1966.

    Google Scholar 

  • Huff, David L., “Determination Of Intraurban Retail Trade Areas”, Los Angeles: Real Estate Research Program, University of California, Los Angeles, 1962.

    Google Scholar 

  • Huff, David L., Lawrence, A Programmed Solution For Approximating An Optimum Retail Location, Center For Regional Studies, University of Kansas.

    Google Scholar 

  • Johnston, J. Econometric Methods, (2nd Edition), McGraw-Hill Book Company, New York, 1972.

    Google Scholar 

  • Kuehn, Alfred A., McGuire, Timothy W., and Weiss, Doyle L., “Measuring The Effectiveness of Advertising”, Proceedings, Fall Conference, American Marketing Association, 1966.

    Google Scholar 

  • Luce, Ducan R., Individual Choice Behavior, John Wiley and Sons, New York, 1959.

    Google Scholar 

  • McFadden, Daniel, Conditional Logit Analysis of Qualitative Choice Behavior, from Frontiers In Econometrics, edited by Paul Zarembka, Academic Press, 1974.

    Google Scholar 

  • Nakanishi, Masao, and Cooper, Lee G., Parameter Estimation For A Multiplicative Competitive Interaction Model--Least Squares Approach, Journal Of Marketing Research, Volume XI, August 1974.

    Google Scholar 

  • Teekens, R., Prediction Methods In Multiplicative Models, Rotterdam University Press, 1972.

    Google Scholar 

  • Theil, Henri, Principles of Econometrics, John Wiley and Sons, Inc., 1971.

    Google Scholar 

  • Thoni, H., A Table For Estimating The Mean Of A Lognormal Distribution, Journal Of The American Statistical Association, Volume 64, 1969.

    Google Scholar 

  • Urban, Glen L., “Mathematical Modeling Approach To Product Line Decisions”, Journal Of Marketing Research, Volume 6 February 1969.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Academy of Marketing Science

About this paper

Cite this paper

Khairullah, Z.Y., Pandit, V. (2015). Estimation of a Multiplicative Model for Locating Large Retail Stores. In: Malhotra, N. (eds) Proceedings of the 1985 Academy of Marketing Science (AMS) Annual Conference. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-16943-9_43

Download citation

Publish with us

Policies and ethics