STORELOC - A RETAIL STORE LOCATION MODEL-BASED ON MANAGERIAL JUDGMENTS

The selection of an attractive location plays a crucial role in the performance of most retail firms. In modeling the site selection process, existing research has relied primarily upon consumer data. However, evidence suggests that a model's predictive accuracy can be increased by incorporating managerial input. Further, managers are more likely to employ a location model if it involves their active participation. In this study, a retail location model (STORELOC) is proposed based on managerial judgments. Data from decision makers at a financial institution are used for illustrating the model's application. Convergent validity of the model is assessed by comparing the results with those obtained by employing an alternative location model. The proposed STORELOC location model is viewed as having greater applicability since it requires managerial participation.