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

2019-08-262025-11-052019-08-262025-11-052019-08-262019-05-28https://hdl.handle.net/20.500.12254/5586Objective: 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.http://creativecommons.org/licenses/by-nc-sa/3.0/cl/Atribución-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 consumersArtículo