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2012_0319_Packet
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2012_0319_Packet
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4/6/2012 3:25:52 PM
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A GUIDE TO RETAIL IMPACT STUDIES <br />greatly. A rural resident may drive further for a good deal on a television than for bread, and <br />further still for a dishwasher or a vehicle. <br />Geographical features, such as mountains or bodies of water, may further alter market areas. <br />In a Colorado analysis, for example, the strong boundary created by the winding passes across <br />the Continental Divide and various roadless areas altered the market area of a mountain city a <br />great deal. In Alaska, ferry routes brought some very distant communities into the orbit of a <br />study community, while nearer communities on paved roads felt little draw. These boundaries <br />are best understood by discussions with local residents and business owners and a review of <br />transportation infrastructure in the region. <br />Finally, market areas in many regions are impacted by other factors, such as the presence of <br />tourists, niche specialization in particular communities, or the locat <br />outlets. Upon taking all these considerations into account, the analyst can identify a consensus <br />market area for the lines of goods at issue in the analysis. <br />Analysts can employ consumer surveying to help determine the extent of market areas, but this <br />may be prohibitively expensive in many cases. <br />Below are two sample market area maps. <br />RETAIL MARKET AREAS: GUNNISON, CO AND HOMER, AK <br />Note that market areas for the study communities are strongly affected by both transportation <br />infrastructure and geographic features. In Gunnison on the left, the market is defined by the <br />broad arc of the continental divide to the east and the Black Canyon to the west. In such a <br />setting, there is little the community might offer to entice residents from adjacent market areas. <br />In Homer on the right, note in particular the inclusion of roadless areas to the south. In those <br />communities, would-be shoppers must travel on a ferry that delivers them to Homer. <br />10 <br /> <br />
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