Optimal Location of New Chain Retail Stores Based on Geomarketing (Location-Based Marketing) with a Combined Approach of TOPSIS and GIS

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Sabzali Yamaqani Kobra; Ahmadi Mohammad; Gharibnavaz Nader; Sabzali Yameqani Ali

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Journal Paper

Paper Information

Journal: Iranian Journal of Trade Studies Year:2023 | Volume:27 | Issue:105 Page(s): 53-90

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Title

Optimal Location of New Chain Retail Stores Based on Geomarketing (Location-Based Marketing) with a Combined Approach of TOPSIS and GIS

Author(s)

Sabzali Yamaqani Kobra | Ahmadi Mohammad | Gharibnavaz Nader | Sabzali Yameqani Ali | Issue Writer Certificate

Keywords

Location Selection

Geomarketing (Location Based Marketing)

GIS

TOPSIS

Chain Stores

Abstract

This study aims to determine the optimal location of new Chain Stores based on geomarketing (location-based marketing) with a combined approach of TOPSIS and GIS. The statistical population included experts and customers of the retail industry (Janbo, Ofogh Kourosh, Haft, Refah, Shahrvand and Etka stores) in Tehran. In the expert section, using cluster sampling method from each cluster, 2 to 3 stores in the north, east, west, center and south were chosen and then 14 experts were selected from the clusters. In the customer section, 384 people who visited the Chain Stores were selected using the available non-random sampling method and questionnaires were distributed among them. Then, in the quantitative phase, the Analytic Hierarchy Process (AHP) was applied for ranking in the expert section. Also, in the customer section, the Friedman ranking test with SPSS software was used. After collecting the required data and performing spatial analysis, maps related to the components and location indicators were generated using ArcMap software. In the following, a case study consisting of 3 proposed places in the 18th district of Tehran city was investigated for the establishment of a new store. Finally, the proposed stores were ranked using the TOPSIS method based on the decision matrix extracted from the opinions of experts, customers and GIS based maps. However, according to the case study conducted from the experts and customers’ point of view, it was determined that the location number 2 located in Rajaee Street in Tehran is suitable for opening a new store.

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