Abstract
Identifying relevant location determinants is a good starting point for shop operators, help to increase profitability and, thus, avoiding business failure. Traditional Analytic Hierarchy Process (AHP) or the Analytic Network Process (ANP) have shortages that require improvement. Herein, Decision-Making Trial and Evaluation Laboratory (DEMATEL), ANP based on DEMATEL (DANP), and modified Vlse Kriterijumska Optimizacija I Kompromisno Resenje (modified VIKOR) are used to construct a hybrid multiple-attribute decision making (MADM) model, encompassing three dimensions and thirteen criteria in exploring the location determinants of Asia’s unique Bubble Tea Shops (BTSs) and to evaluate three preselected alternatives in Nanjing, China. The empirical findings of the DEMATEL method reveal that traffic traits (D1) and site traits (D2) are critical to BTSs, and that once these are enhanced, shop traits (D3) are also improved. Criteria deemed as important, based on the DEMATEL and DANP methodology, are (in descending order): proximity to a street corner (C2), proximity to public transportation systems (C1), road width (C3), proximity to communities (C5), proximity to commercial areas (C6), types of shop (C9), and proximity to schools (C7). Different decision-making rankings among alternatives are indicated based upon the modified VIKOR method and corresponding strategies for improvement are presented.
Highlights
As a key factor in the success of long-term strategic decisions, location determinants have received extensive attention in the research on food outlets, such as restaurants (Tzeng et al, 2002; Park & Khan, 2006; Dock et al, 2015; Chen & Tsai, 2016; Yang et al, 2017), convenience stores (Kuo et al, 2002), and the food retail industry (Sevtsuk, 2014; Yıldız & Tüysüz, 2019)
Shop traits (D3), which present with a negative (d + r), is not an important determinant of Bubble Tea Shops (BTSs), DEMATEL-based ANP method (DANP) methodology indicates that this category carries the highest weight
This work started by improving upon the traditional multiple-attribute decision making (MADM) methods–which did not fully consider the mutual influences involved when exploring retail location determinants–for use with BTSs
Summary
As a key factor in the success of long-term strategic decisions, location determinants have received extensive attention in the research on food outlets, such as restaurants (Tzeng et al, 2002; Park & Khan, 2006; Dock et al, 2015; Chen & Tsai, 2016; Yang et al, 2017), convenience stores (Kuo et al, 2002), and the food retail industry (Sevtsuk, 2014; Yıldız & Tüysüz, 2019). A series of retail location theories–including spatial interaction theory (Reilly, 1929, 1931), central location theory (Christaller, 1933, 1966), and bid-rent theory (Alonso, 1964)–have been used to explore the complex relationship between consumers’ demands, accessibility, and retail location. Whether it concerns a chain enterprise or a single store, proper decision-making about an establishment’s location can help expand the venture’s market of concern in order to attract more customers, increase market share. Lin et al Exploring location determinants of Asia’s unique beverage shops based on a hybrid
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