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The Geographical Edge: Spatial Analysis of Retail Loyalty Program Adoption
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Author(s): Arthur W. Allaway (The University of Alabama, USA), Lisa D. Murphy (The University of Alabama, USA)and David K. Berkowitz (The University of Alabama, USA)
Copyright: 2005
Pages: 18
Source title:
Geographic Information Systems in Business
Source Author(s)/Editor(s): James Pick (University of Redlands, USA)
DOI: 10.4018/978-1-59140-399-9.ch012
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Abstract
This chapter demonstrates important insights gained by adding spatial capabilities to marketing analyses. Four steps are described to produce a geographically enabled data set of the first year’s daily use for a major retailer’s loyalty card program at one store in a mid-western U.S. city. Traditional analysis is contrasted with results from a geographic information system (GIS). Probabilities of adoption were clearly tied to the geographic variables generated by the GIS; for example, over the whole year, the likelihood of someone adopting on a given day decreased 13.4% for each mile they resided away from the store, while each Innovator (adopted in the first two days) located within .6 mile of a prospective adopter increased adoption likelihood by 13.2%. Further, three very distinct spatial diffusion stages are visible showing adoption as a function of distance to the store itself, to the billboards, and to the earliest adopters.
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