Sales Associations between Brand Stores Based on Spatial Interaction Effects

Abstract

There is a dearth of research concerning location-based service (LBS), including its determinants and antecedents. However, it is still unclear how LBS influences a brand store’s profit with the consideration of surrounding stores. To fill the gap, this study focuses on the influence of surrounding store information on sales of a brand store from the perspective of LBS. By analyzing spatial data, sales data, and shopper flow data of 737 brand stores for a large shopping mall in China with spatial Dubin model, this study identifies several findings: (1) sales and shopper stay times in surrounding stores can negatively influence sales of a brand store; (2) store types can moderate the relationship between the sales of surrounding stores and those of a brand store; (3) shopper flow in surrounding stores can also influence the sales of a brand store depending on the volume of shopper flow at different times in a day. This study has implications for academics and practitioners.