Note—Estimating Geographic Customer Densities Using Kernel Density Estimation

Naveen Donthu and Roland T. Rust
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Naveen Donthu: Georgia Institute of Technology
Roland T. Rust: University of Texas at Austin

Marketing Science, 1989, vol. 8, issue 2, 191-203

Abstract: This paper shows how kernel density estimation may be used to estimate flexibly the geographic distribution of customers in a market. In addition it shows how a density-based product positioning methodology may be applied to site selection, using the estimated geographic customer density to help locate a new or (relocated) store or distribution center. This application provides a conceptual basis for more complicated site selection and spatial demand models which might involve several predictor variables.

Keywords: market area analysis; retailing kernel density estimation; nonparametric density estimation; site selection (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:8:y:1989:i:2:p:191-203

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