Comparing market areas using kernel density estimation
Journal of the Academy of Marketing Science · 1991 · Volume 19 · Issue 4
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.
Keywords
Model Comparison, Kernel Density, Kernel Density Estimation, Mailing List, Market Area
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