Sales Associations between Brand Stores Based on Spatial Interaction Effects

Yuepeng Sui,Jiaoju Ge,Guoxin Li,Musavarah Sarwar

doi:10.1155/2021/9990947

Abstract

There is a dearth of research concerning location-based service (LBS), including its determinants and antecedents. However, it is still unclear how LBS influences a brand store’s profit with the consideration of surrounding stores. To fill the gap, this study focuses on the influence of surrounding store information on sales of a brand store from the perspective of LBS. By analyzing spatial data, sales data, and shopper flow data of 737 brand stores for a large shopping mall in China with spatial Dubin model, this study identifies several findings: (1) sales and shopper stay times in surrounding stores can negatively influence sales of a brand store; (2) store types can moderate the relationship between the sales of surrounding stores and those of a brand store; (3) shopper flow in surrounding stores can also influence the sales of a brand store depending on the volume of shopper flow at different times in a day. This study has implications for academics and practitioners.

Highlights

Introduction e mobile Internet andInternet of ings (IoT) are shaping a new retail form, in which mobile devices allow marketers to contact shoppers directly and shoppers to obtain and share product information in real-time. is new retail form has great impact on retailers and shoppers
This study complements the herding influence literature by exploring how stores with difference features can induce different shopper gathering and herding influence, playing a determinant role in changing the competitive relationships among surrounding stores. ird, this study extends consumer behavior literature by introducing location-based service (LBS) into the context of offline shopping malls. e usage of LBSs can deepen the understanding of positional factors that may affect the sales of a brand store. is study highlights the importance of LBSs from a practical perspective and provides suggestions for operators in shopping malls about location strategies for different types of stores
According to the different spatial characteristics embodied after the basic model is revised, the spatial measurement model can be divided into two main types: the spatial error model and the spatial autoregressive model. “ e first law of geography” points out that stores have geographic dependence and relevance, and spatial measurement models can describe the geographic dependence of stores

Summary

Literature Review and Research Hypotheses

Us, shoppers need to allocate their limited attention and budgets to a brand store when wandering around a shopping mall. For a shopper, making purchase decisions in a brand store may reduce his/ Her limited attention and budget for other stores, restricting sales of other stores. H3: the sales of a brand store are significantly negatively affected by shopper stay time in surrounding stores. For stores within a shopping mall, real-time shopper flow can be helpful to understand shopper purchase habits and the reasons for sales changes, increasing the store sales [29].

Methodology

Figure 2

Results

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