Abstract
From a managers’ point of view it is useful to know whether or not a market area has changed over time, and whether two market areas are different. In this paper we propose, using the kernel density estimation method, to estimate the density of a market area and show how the estimated market area densities may be compared for differences using Bayesian cross-validated likelihood methods. The proposed methodology is highlighted using two applications. One application involves comparison of lunch and dinner markets of a restaurant and the other application involves identifying the optimal area for a direct mail program.
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Donthu, N. Comparing market areas using kernel density estimation. JAMS 19, 323–332 (1991). https://doi.org/10.1007/BF02726507
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DOI: https://doi.org/10.1007/BF02726507