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Megatrends in Retail Real Estate pp 81–99Cite as

Estimating Retail Sales Using the Poisson Gravity Model

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Part of the book series: Research Issues in Real Estate ((RIRE,volume 3))

Abstract

The retail gravity model is the model commonly used for estimating the retail sales potential of a retail center. Estimating retail sales is critically important to many decision makers. The traditional gravity model uses only size and distance as the only variables in its estimation. This chapter improves on the traditional gravity model by including retail center specific variables and socioeconomic characteristics of the shoppers in addition to size and distance, the traditional gravity model explanatory variables. In this chapter, shopping behavior is specified as a Poisson process. The estimation of retail sales involves two major steps. In the first step, the number of shopping trips taken to the different shopping centers in a retailing system are estimated. In the second step, retail centers are allocated retail sales for the Metropolitan Statistical Area, based on their shares of shopping trips.

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Author information

Authors and Affiliations

  1. Real Estate Appraisal & Research Group, P.O. Box 241583, Omaha, NE, 68124, USA

    A. Ason Okoruwa

  2. Department of Insurance, Real Estate and Legal Studies, College of Business Administration, University of Georgia, Athens, GA, 30602, USA

    Hugh O. Nourse

  3. Department of Economics, Pennsylvania State University, University Park, PA, 16802, USA

    Joseph V. Terza

Authors
  1. A. Ason Okoruwa
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  2. Hugh O. Nourse
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  3. Joseph V. Terza
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Editor information

Editors and Affiliations

  1. American University, USA

    John D. Benjamin

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© 1996 Kluwer Academic Publishers

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Okoruwa, A.A., Nourse, H.O., Terza, J.V. (1996). Estimating Retail Sales Using the Poisson Gravity Model. In: Benjamin, J.D. (eds) Megatrends in Retail Real Estate. Research Issues in Real Estate, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-1802-3_6

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  • DOI: https://doi.org/10.1007/978-94-009-1802-3_6

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-7303-5

  • Online ISBN: 978-94-009-1802-3

  • eBook Packages: Springer Book Archive

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