A fresh look at an old problem: saturation in the retail market and how it affects both retailers and consumers

Yanine, FernandoCordova, Felisa M.Valenzuela, LionelIsla, Pablo2019-08-262019-08-262019-05-28Indian Journal of Science and Technology; Volume 12, Issue 18, May 2019: p.http://hdl.handle.net/20.500.12254/1551Objective: Traditional saturation analysis on competitive location decision science focuses on diminishing returns for incumbents and newcomers in a specific spatial location pertaining to commercial retail potential past a certain point of market saturation. Methods/Findings: This study looks at this problem but employs a different approach to the subject altogether, wherein saturation is no longer a variable affecting only retailers but one that affects both: the marginal utility of consumers and the revenue of retailers albeit differently. A new mathematical model is proposed based on selected papers, contributing new insight into an already widely discussed subject. Application: Analysis shows that it is important for competitive location decision-making to address saturation from both sides of the overall competitive location decision issue, not just from the retailers’ standpoint.enAtribución-NoComercial-CompartirIgual 3.0 Chile (CC BY-NC-SA 3.0 CL)ClusteringMarket ShareRetail Saturation IndexA fresh look at an old problem: saturation in the retail market and how it affects both retailers and consumersArtículohttp://dx.doi.org/10.17485/ijst%2F2019%2Fv12i18%2F144604