Market Area Analysis-calculate profitability Flashcards Preview

Human AP- 12.3-consumer services in a regular pattern > Market Area Analysis-calculate profitability > Flashcards

Flashcards in Market Area Analysis-calculate profitability Deck (3):
1

what is market-area analysis used for

determine if location in the area would be profitable and where the best location would be within the market area

2

how do you determine the range?
3 steps

1-compute range (how far are people willing to travel)
2-compute the threshold (how many customers are needed to make a profit)
3-Draw the market area

3

how do you draw the market area

1-draw range and adjust based on competition
2-count people within range-if it meets the threshold, then the location is ok