Professional Documents
Culture Documents
Impact of geomarketing and location determinants on business development and decision making
Veland Ramadani, Donika Zendeli, Shqipe Gerguri-Rashiti, Leo-Paul Dana,
Article information:
To cite this document:
Veland Ramadani, Donika Zendeli, Shqipe Gerguri-Rashiti, Leo-Paul Dana, "Impact of geomarketing and location
determinants on business development and decision making", Competitiveness Review: An International Business Journal ,
https://doi.org/10.1108/CR-12-2016-0081
Permanent link to this document:
https://doi.org/10.1108/CR-12-2016-0081
Downloaded on: 05 December 2017, At: 03:47 (PT)
References: this document contains references to 0 other documents.
To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 3 times since 2017*
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
Access to this document was granted through an Emerald subscription provided by emerald-srm:393177 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please
visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication
Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.
1. INTRODUCTION
In today's global markets, geomarketing is more important than ever, because it’s essential to
take advantage of opportunities like any open niches and get a step ahead of competitors. To
manage markets in an efficient way and to tap new potential ones are the keys to boost the
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
business turnover. This is exactly what a geomarketing approach allows decision makers to do.
Companies of all industries across both, Business-to-business (B2B) and Business-to-customer
(B2C) sectors, can profit from a geomarketing approach to sales, decision making, marketing,
business development and expansion planning.
Success requires companies to pay attention to characteristics of the regional market.
Geomarketing is not only simple but is also straightforward, requiring only data related to sales
potential, GIS for visualizing and analyzing data and digital maps for relevant regional levels.
Having knowledge of locations, planning approaches, sales strategies and statistical methods is
as well as fundamental. Choosing the right location is also a pre-request for the success of the
businesses (Baaij, Van Den Bosch and Volberda, 2004; Ferreira et al., 2015). Location as a
factor of competitive advantages for companies by enabling them to succeed in local and global
markets as well (Akpinar et al. 2017). Which means that if a company is dependent on customer
traffic (and in fact, it absolutely is), they need to conduct a market survey to narrow down the
best site selection based on the research, data and analysis of certain important geomarketing
determinants.
Geomarketing is nothing but the integration of geographical intelligence into various
aspects of marketing and is the use of geographic parameters in marketing research methodology
(sampling, data collection, analysis and presentation). It is the practice of using geographic
information in the process of marketing activities and analysis. It also involves looking closely at
a specific area to study and analyzing specific trends or characteristics in order to incorporate
conclusions into the design and implementation of marketing activities or campaigns.
Geomarketing determinants and data have direct influence on the development of modern
trade and the reorganization of retail types. Site selection is being based on a scientific procedure
1
that saves both time and money, and hence becomes automated. Whether businesses have a retail
location or not they need to pay attention to location of their customer and tailor their marketing
message accordingly.
The aim of this paper is to see the influence of geomarketing on business development
and decision-making process within businesses on Western Macedonia. Despite the fact that the
purpose of the paper could be a general framework for geomarketing, given the applied research
context, the goal will be accomplished through a survey and econometric model such as
Structural Equation Modeling (SEM) to analyze the influence of geomarketing on small and
medium-sized companies (SMEs). The paper will enlighten the geographic dimension of
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
marketing on business development as well as on decision making processes. Given the complex
and diverse nature of businesses and markets in the country, it is especially difficult for decision
makers to comprehend the process of identifying opportunities and/or threats. As a result, the
implementation of geomarketing, its techniques and tools are of a great value and advantage for
businesses, particularly for further business development and making better decisions.
In this paper, we try to see the influence of geomarketing determinants, such as: location,
industry, socio-demographic factors and business factors on business development and the
decision-making process.
The paper is structured as follows: firstly, we introduce the literature review on
geomarketing worldwide, and afterwards we also provide an overview about its impact on
business development and the decision-making process of companies. In the following section,
we summarize the research of geomarketing and its determinants in the Republic of Macedonia.
Methodology is described in section three. The final part displays discussion of results,
conclusions, limitations and future research.
2. LITERATURE REVIEW
2.1. Geomarketing
2.1.1. Marketing and geography
Geography matters in every organization and every discipline. The use of the geography in
marketing is called geomarketing. Some authors define geomarketing simply as a “specific
application of the spatial economy” (Latour and Le Floch, 2001, p.37), while others (Cliquet,
2006, p.15) give a more comprehensive definition and description like “a collection of
2
techniques enabling the manipulation of geo-coded data, it can help in analysis more than in the
conception of strategies and even less in decision-making” or “a marketing technique based on
the premise that individuals living in the same geographical location have socio-demographic,
economic and even cultural characteristics quite similar” (Lehu, 2004, p.365). Furthermore,
Yrigoyen (2003) considers geomarketing as a powerful marketing tool which helps decision
makers to solve some critical issues (geosegmentation and/or geopositioning) in market analysis.
“Tell me where you live, I will tell you who you are”.
This quote by Bernard (2003) is quite simple, but resumes very correctly the concept of
geomarketing. In essence, geomarketing is the integration of geographical intelligence with
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
software into various aspects of marketing, which makes use of geographic information
parameters in marketing research methodology (sampling, data collection, analysis, conclusions
and presentation) and decision making.
The role and importance of location and space have increased inversely with market
expansion, even though the massive and daily use of internet has become a new form of
disappearance of geographical markets. Clients remain very precisely localized in geographical
space, which explains that the difficulties met by certain internet distribution companies in
delivering to their clients (Cliquet, 2001) and the companies although present on the web, still
originate from precise geographic zones (Volle, 2000).
Geomarketing is considered as a new dimension of brainstorming and solving problems
which integrates geographic information and knowledge by classifying and organizing the data,
analyzing and modeling certain processes and relationships. Several definitions are provided in
Table 1.
[Insert Table 1 about here]
3
“[c]ollection of data located in space, structured in a way that is able to conveniently extract
syntheses useful in decision making” (as cited in Didier, 1990, p.255). According to Cliquet
(2006) the American definition insists more on the computer aspects and the different operations
that a GIS should be capable of accomplishing, whereas the French definition is more general,
both in the form of the GIS and in its aims.
Giant corporations like Google, Facebook, Twitter or Instagram have admitted the rise of
geo-targeting and location-based services (Ali, 2004). More specifically, Facebook launched its
own location-based set of features-which every Facebook user can utilize them as well. Google
launched Google Latitude, an app which tracks the user’s location on an ongoing basis and
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
Twitter released its geo-location feature which attaches a map to user’s tweets to show where the
user is tweeting from. Equivalent to this is the Instagram process when it comes to posting
photos by Insta users.
4
geo-marketing by the numbers and made a survey-infographic about this issue. They concluded
that: 63% of smartphone users “frequently” use apps that require them to give their location;
90% of U.S. marketing agencies had clients requesting geographically targeted online ad
campaigns; 65% of companies are focusing on geographical context for their mobile marketing
tactics; 50% of the visitors to Google Maps only do business with the top 3 results; and hyper-
local marketing is cheaper, more effective than search engine marketing.
Territorial conquest has become the primary issue for all companies and especially retail
companies. Territorial coverage, both from region to region and on an international level, is at
least as important as sales in determining the strength of a store chain network (Cliquet, 2006).
Most of the business is being done locally. Every city, country or region has a lot of
organizations which target clients in a specific geographic area. A lot of managers, Chief-
Executive-Officers (CEOs) or entrepreneurs are targeting a market location or possible market
segments as a result of expansion planning on a local basis.
Selecting a business location or expansion planning, is part of the very general approach to
location of economic activities, as Thünen (1895) had already tried to describe. When seen from
the commercial business perspective, it assumes very precise characteristics. Distinguished
economists, such as Eaton and Lipsey (1982) and Hotelling (1929) have looked into this question
in order to understand where retail locations should be placed and why. Others have often
regretted the negligence suffered by the spatial variable in economic theories simply because the
distance variable is not taken into account (Isard, 1952) just because there is a lack of economic
explanation of the presence of economic activities in centers (Tinbergen, 1964), or because of the
spatial aspect of the neoclassical model (Eaton and Lipsey, 1976). Genarally said “location that
could effectively and positively affect the [business] development as well as that of the firm
performance” (Minai and Lucky, 2011, p. 110).
Companies have to integrate several tools developed by a variety of scholars not only to
create or analyze a market selection framework, but also for expansion planning. Some of these
tools are market demand driven models (Teoh, Welch and Wong, 1998), and others are long term
market potential assessments (Arnold and Quelch, 1998). Others are cultural dimensions for
5
measuring cultural distance (Morosini, Shane and Singh, 1998) or they might be a competitive
analysis of an industrial sector (Porter, 1990).
Moreover, companies can evaluate client distribution, turnover and the performance of
their sales territories and business sites by analyzing regional market data which give them an
objective basis and to provide answers to the following questions: In which sites the company
can acquire new clients?; Which of them is best suitable for expansion planning?; How much
potential exists in those sites? and, Are there any possibilities to explore an additional sales
model?.
Global market segmentation can be viewed as the process of identifying segments whether
they are country groups or individual buyer groups of potential customers with homogeneous
attributes who are likely to exhibit similar buying behavior patterns (Hassan and Craft, 2005).
When targeting clients for new locations (especially international ones) and segmenting the
same, companies need to develop and implement a strong marketing which will have an
advantage in technological view in order to overcome the cost of foreignness (Kindleberger,
1969). According to Sakarya, et al. (2007), companies select several criteria when it comes to
market penetration, such as: long-term market potential, cultural elements, and competitive force
of the industry and customer receptiveness-this is especially obvious in emerging markets.
In an increasingly global and technology savvy marketplace where customer segments are
becoming homogenized across national restrictions, segments of behavior and lifestyle are a
necessary addition to geopolitical and economic segmentation in international markets (Aulakh
and Kotabe, 1993; Cho et al. 2016; Luqmani et al., 1994). There is a relationship between
strategic use of segmentation bases and strategic positioning, which has various strategic
marketing consequences for companies like opportunities for expansion, to transfer the products
globally and to develop more effective decisions (Good, 2014; Hassan and Craft, 2005).
6
2.2.3. Redistricting market coverage
Another filed of geomarketing implementation in the aspect of business development in
redistricting market coverage by exploiting sales potential, field knowledge and geo-planning.
When it comes to planning and simulating market coverage, GIS are the ideal tool. They help
companies to structure sales areas in homogenous way according to market and/or turnover, to
balance customer portfolio, to plan an efficient organization etc. The main point of redistricting
market coverage is optimal provision of the market with sales services, in order to exploit better
market potential and to increase turnover.
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
The conquest of space is not only planet-wide. It also occurs at national and local levels. At
national level, insufficient coverage can lead to great difficulties in terms of access to the
national media, this time for reasons of decline in audience and in terms of logistical costs
(Cliquet, 1998; Hisrich and Ramadani, 2017; Ratten, 2004). A spatial incoherence with “holes in
the coverage” is to be avoided, because this would involve higher transport costs and frequent
stock shortages (Rulence, 2000). Finally, it cannot be forgotten that proper territorial coverage
for the distributor ensures the manufacturer a good distribution of products under the same trade-
name-this is unquestionably an element of the distributor’s service.
7
products, established prices, clients, competitors, suppliers and similar, which are often
underestimated. Actually, these conversions in the shape of trade can also be analyzed as a new
perspective to involve geographic dimension of trade, which has an influence on setting prices.
There are numerous normative location models that have been proposed for chain
companies like: banks or retailers (Lilien, Kotler and Moorthy, 1992). On the other hand,
promotion companies take into account geographic variables in order to increase the efficacy of
communication. This occurs especially when ‘delivering’ messages such as: catalogues, display
materials, prospectus and similarly. All of the above explain the increasing importance of
geographic information in advertising, where the last one “is not regarded as entertainment or an
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
8
display and tabular reporting capabilities. The continuous increasing interest in GIS and other
similar systems is very good news for decision makers, especially when they are faced with both,
long-term decision making (spatial planning, infrastructure management and strategic business
planning) and short-term decisions (emergency response and resource logistics).
In the ongoing text, we analyze how GIS and SDSS help companies to plan, organize and
develop their business.
9
specific area?’, ‘what they are alike?’ and how 4P-s can be tailored according to these
characteristics?
profitable than their competitors” even after accounting for several confounding factors.
According to the same authors, big data helps decision makers to analyze, measure, and know
more about their companies, and directly translate it into improved decision making.
10
tailoring marketing activities according to location where a company is operating, and it can be
used in any aspect of the marketing mix – product, price, place or promotion (geo targeting).
3. METHODOLOGY
3.1. General information
Method can be seen as a systematic approach, as a technique for data collection or as a research
strategy in analyzing a phenomenon (Dubois and Gadde, 2002). In this paper methodology
serves as a systematic approach referring to the inductive and deductive reasoning that is
exhibited on the literature review and as a research strategy which refers to goals set for
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
11
Debar and 4% in the city of Struga. As far as we are concerned about the industry of companies’
data show, 20% of companies surveyed belong in the manufacturing industry, while most of the
companies – 73% belong to the service industry and only 7% of companies are part of other
industries such as: construction, handcraft etc.
Employment data from the survey indicate that 76% of all surveyed companies have up
to 10 employees, 10% of them have from 11 to 20 employees, 6% have 21 to 30 employees and
only 8% have more than 31 employees in their companies.
3.3. Source of data
According to ESS (Brancato et al., 2004) questionnaires constitute the basis of every survey-
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
based statistical measurement and are by far the most important measurement instruments
statisticians use to grasp the phenomena to be measured. As mentioned before, the majority of
data are primary the ones collected by questionnaires and finally delivered electronically or in
hard-copy. Withal, mail surveys continue to be one of the major data collection modes, as the
method has its own quality, and the competence in terms of design has improved a lot (Dillman,
2000). Furthermore, the graphical layout of the electronic questionnaire plays an important role
in easing the interviewer’s job and preventing data capturing errors (Couper et al., 2000).
3.5. Hypotheses
In this paper are set these hypotheses:
H1: Geomarketing determinants, such as: location, industry, socio-demographic factors
and business factors, have positive influence on business development.
12
H2: Geomarketing determinants, such as: location, industry, socio-demographic factors
and business factors, have positive influence on decision making processes.
models, MIMC models, and IRT models (Stata Structural Equation Modelling, 2013, p.2). Based
on the background of research and SEM, we present Figure 1 – The Structural Equation
Modelling (SEM). A Latent Variable Path Analysis (LVPA) where the path diagram has a casual
flow from top to bottom and wherein:
1. Straight arrows - represent direct effects and are used to define casual relationships.
Moreover, the variable at the tail of the arrow is causing the variable at the point;
2. Boxes/rectangles - represent observed and measured variables (in our research-
business development indicators and decision-making indicators);
3. Ellipses - represent latent variables (in our SEM model - geomarketing determinants).
The main idea lies in the theoretical concept that geomarketing determinants influence the
development of a business and their decision making, be it either for general decisions or either
for specific ones like: site selection, spatial planning or marketing activities related to 4Ps.
As follows, we present general concept of our SEM model.
The ongoing sections discuss the empirical findings of data gathered from the
questionnaires, and the analysis and interpretation of the SEM model and its results separately
for each hypothesis. We estimate our SEM model in two ways:
a) Measurement model – used to assess the proposed measurement model in SEM regarded
as a model fit. The significance of CFA consists on verifying measurement models
derived from classical theory (Dwyer, 1989; McDonald, 1985). Indices as R-square,
RMSEA (Root Mean Squared Error of Approximation) and SRMSR (Standardized Root
Mean Squared Residual) are used for determining how well the apriori model is fitting
the theory and often are referred as test of goodness of fit based on predicted vs. observed
13
variables. Other indices as CFI (Comparative Fit Index), TLI (Tucker-Lewis Index) and
CD (Coefficient of Determination) are tests of goodness of fit comparing the given model
with an alternative model.
b) Path Analysis - Latent Variable Path Analysis (LVPA) provides a graphical overview and
empirical estimation of relationships to represent our assumed theory. It allows
‘translating’ and expressing the idea of how causes are related to effects into a model and
how the total effect of one variable on another can be broken down into direct effects.
[Insert Figure 1 about here]
The Structural Equation Model combines the measurement model with path analysis and
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
takes the measurement error into account. Thus ‘adjusts’ the correlations and path coefficients
appropriately-assuming the model specification is correct.
While bearing the previous statement in mind, we build the following SEM model (as it is
mentioned previously only for this hypothesis) and analyze the results from Measurement Model
and Path Analysis, which explain the current situation of surveyed companies in Western
Macedonia and Multivariate Regression for future forecasts.
To measure business development of companies we selected and estimated three
indicators: Sales (total annual sales value), Products (total number of products, projects or
services sold in a year) and Clients (total number of company’s clients).
14
I. Measurement Model
This model is a multivariate regression model that describes relationships between the latent
variable and dependent variables. In case of H1 we obtain results from STATA 12 (Table 3)
[Insert Table 3 about here]
According to data from Table 2, geomarketing determinants influence the business development
of a company positively since p-values of all business development indicators (Sales, Products
and Clients) are less than the alpha levels for significance .05 and .01. Furthermore,
Geomarketing Determinants influence positively the total value of Sales with a coefficient of 1.
Similarly, the coefficient for Products is 1.24 and the coefficient of Geomarketing Determinants’
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
influence on Clients is 1.25. All the above coefficients are strongly significant at level of 0.05
and 0.01.
R-square reports (Table 4) how well the variance is explained by each indicator. The
fraction of the variance of latent variable (Geomarketing Determinants) is 0.67 and shows that
latent variable explains for 67% dependent variables (Sales, Products and Clients). The
coefficients mc and mc2 also indicate a good correlation between variables in the model.
[Insert Table 4 about here]
We estimated the SEM model in STATA 12 and the following figure (Figure 2) gives us an
overview of the current situation of 115 surveyed companies in Western Macedonia. It also
provides a picture of the direct effect of Geomarketing Determinants (latent variable) on
observed variables, respectively on Sales for 62%, on Products for 56% and on Clients for 69%.
In the SEM model constant for Sales is 6.5, for Products is 2.2 and for Clients is 2.4. Error
associated with observed variable indicators is 0.61 for Sales, 0.68 for Products and 0.52 for
Clients.
Table 4 includes Fit Indices of SEM model for the first hypothesis:
a) goodness of fit tests based on predicted vs. observed covariances like:
15
1. RMSEA (Root Mean Squared Error of Approximation) and
2. SRMR (Standard Root Mean Squared Residual)
The above stated indices indicate that we have an excellent fit since their values are less
than .05 and .01 (RMSEA=0 and SRMR=0).
b) goodness of fit tests comparing the given model with an alternative model like:
1. CFI (Comparative Fit Index) and
2. TLI (Tucker-Lewis Index)
Both indices have values equal to 1 and which points out that we have an excellent fit of
the model (CFI=1 and TLI=1). Lastly, the Coefficient of Determination (CD) is 0.67. It is also
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
named as the R-square and is explained in a detailed manner in the section of Measurement
Model for H1 (Table 5).
[Insert Table 5 about here]
Graph 1 visualizes the influence of location on business development of all surveyed
companies. Moreover, it manifests the fact that business development indicators have a greater
increase of businesses who are located at biggest cities (especially in Skopje-capital city and
Tetovo) in Western Macedonia in comparison to other less-developed cities. Causes can be
different, for example: number of population (either customers or labor force), population
mobility, household composition, economic development of the city, market opportunities,
implementation of information technology, socio-demographic factors and other similar reasons.
Grewal, Levy, Mehrotra and Sharma (1999) allege that depending on type of location some
products or store’s location may become more or less appealing. This fact is equivalently linked
with number of products sold or clients and total value of sales. As a result of this we have
companies whose number of products sold, number of clients and the overall sales value is
greater than other companies, and all this is interrelated to the simple fact of location factor.
[Insert Graph 1 about here]
From a consumer perspective, convenient location(s) and product(s) assortment drive store
choice (Briesch, Chintagunta, Fox, 2009). Based on this, the evaluation of (potential) sites should
consider store location and assortment composition together. Therefore, retailers should
investigate strategic point of sales, managers and marketers should compile better routes of
distribution or to launch branches, and all of them should work together on building robust
strategies to turn them into sources of profit.
16
H2: Geomarketing determinants, such as: location, industry, socio-demographic
factors and business factors, have positive influence on decision-making process.
Similarly, as in the first hypothesis, we build the following SEM model for H2 and analyze
results from Measurement Model and Path Analysis, and Multivariate Regression. For measuring
decision making in companies we selected and estimated three indicators: L_DM (did and how
location characteristics influenced on companies’ decision making), I_DM (did and how industry
characteristics influenced on companies’ decision making) and SDBF_DM (did and how socio-
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
I. Measurement Model
Uniformly, measurement model of the second hypothesis describes relationships between the
latent variable and dependent variables. Thus, after estimating data in STATA 12 we acquire the
outputs displayed in Table 5 and 6.
In compliance with data from Table 6, geomarketing determinants influence positively
decision-making process in a company since p-values of all decision-making indicators (L_DM,
I_DM and SDBF_DM) are less than .05 and .01. Furthermore, Geomarketing determinants
influence positively the total value of L_DM for coefficient of 1. Identically, the coefficient for
I_DM is 0.93 and the coefficient of Geomarketing Determinants’ influence on SDBF_DM is
0.61. All of the coefficients are strongly significant at level of 0.05 and 0.01.
R² reports (Table 7) the fraction of variance explained by each indicator. Also, fraction of
the variance of the latent variable (Geomarketing Determinants) is 0.77, which shows that latent
variable explains for 77% dependent variables (L_DM, I_DM and SDBF_DM). A good
correlation between variables in the model is displayed also by coefficients mc and mc2.
[Insert Table 7 about here]
17
II. Latent Variable Path Analysis (LVPA)
In similar fashion, as in the first hypothesis we calculated the SEM model for the second
hypothesis. Figure 3 presents the summary and data of the estimated model in STATA 12.
The first thing we spotted is the direct effect of Geomarketing determinants (latent
variable) on observed (dependent) variables, which is on L_DM for 79%, 76% for I_DM and on
SDBF_DM for 44%. The second thing that can be noticed in the model is variable constant,
respectively L_DM constant is 3.2, I_DM constant is 3.4 and SDBF_DM constant is 2.9.
Error associated with observed variable indicators is 0.37 for L_DM, 0.42 for I_DM and 0.81 for
SDBF_DM.
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
18
not only for business development of companies. Ultimately, a company being established in a
very good location has more opportunities for growth and prosperity than the other way round.
[Insert Graph 2 about here]
As claimed by Levy and Weitz (2004) the best regions for opening new stores are those
who generate the highest demand or sales, but according to Duan and Mela (2009), and Garber et
al. (2004) the problem lies in the fact that (potential) sales are not readily observed and do not
necessarily match with observed population density. The need for improved decision support in
business location decision making can be traced to the hitherto lack of both, relevant spatial data
frameworks able to characterize and distinguish intra-city business destinations, and the lack of
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
relevant decision making models and methods to support and improve location choice (Weber,
2010). Moreover, Nelson and Wake (2003) propose geodemographic segmentation based on
identifying demographically similar postcodes or the smaller census collector districts.
19
Making more data-driven decisions and refraining from their impulsive and intuitive
decision making, which is in most of the cases;
Taking into consideration relevant factors when making important decisions, which
might influence their business;
Reckoning and relying decisions on consolidation of existing networks, and
optimizing core competencies and business model to achieve a profit above the
industry average;
Better identification and estimation of the domestic and foreign market (detailed
evaluation of clients, competitors, business partners, market changes, global trends
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
20
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
21
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
22
Sample 115. The total number of surveyed companies was 150, but the total
number of the sample is 115. We only took into consideration surveys
that were totally answered, since was the best for the statistical model we
used.
What was measured It was measured the performance of the surveyed companies by their
location, industry, socio-demographic factors and business factors and
what is their impact on business development and decision-making
process.
Where these measures come from From the survey
How did the surveyed companies
perform: (mean values, standard
deviations, and loadings)?
Employees: • Sample Standard Deviation: 9.9389
• Population Standard Deviation: 9.896
• Sample Size :115
• Sample Variance: 98.7817
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
Products Sold in units in the last year: • Sample Standard Deviation: 1766253.6813
• Population Standard Deviation: 1758557.55
• Sample Size:115
• Sample Variance: 3.11965206671E+12
• Population Variance: 3.09252465666E+12
• Mean: 246680.7478
Number of clients served in the last year: • Sample Standard Deviation: 193842.1205
• Population Standard Deviation: 192997.489
• Sample Size: 115
• Sample Variance: 37574767679.9
• Population Variance: 37248030760.3
• Mean: 30098.4522
Table 2. Descriptive analyses
23
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
24
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
25
Table 5: Fit indices for H1
26
GEOMARKETING
DERMINANTS
-location
-industry
-socio-demographic factors
-business factors
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
Business
Development
-sales Decision Making
-products
- clients
GEOMARKETING DETERMINANTS
27
GEOMARKETING DETERMINANTS
28
15
Business Development Indicators
10
5
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
Sales Products
Clients
29
REFRENCES:
Akpinar, M., Can, Ö., and Mermercioglu, M. (2017). Assessing the sources of competitiveness of US
States. Competitiveness Review, 27 (2). http://www.emeraldinsight.com/toc/cr/27/2.
Ali, R. (2004). Tech Alliance on ‘Digital Living’ to Be Unveiled, Available at:
https://gigaom.com/2004/06/22/tech-alliance-on-digital-living-to-be-unveiled/ (Accessed: 10/09/2016)
Alter S. L. (1980), Decision Support Systems: current practice and continuing challenges, Addison-
Wesley, Reading Massachusetts.
Arnold D.J., and Quelch J.A. (1998), New strategies in emerging markets, Sloan Management Review,
40, 7-20.
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
Aulakh P.S., and Kotabe M. (1993), An assessment of theoretical and methodological development in
international marketing: 1980-1990, Journal of International Marketing, 1(2), 5-28.
Baaij, M., Van Den Bosch, F., and Volberda, H. (2004). The International Relocation of Corporate
Centres: Are Corporate Centres Sticky? European Management Journal, 22(2), 141-149
Babbie E. (1990), Survey Research Methods, 2nd ed., Belmont, California: Wadsworth Publishing
Company.
Baines P., Fill Ch., and Page K. (2012), Essentials of Marketing, Oxford University Press.
Battista C. (1995), Competition in the Food Chain, Business Geographics, 3 (3), 32-34.
Bernard C. (1996), La géographie du lieu de vente, Points de Vente, 626, 20-21.
Bernard S. (2003), Geomarketing: the key optimization factor for a business, Grenoble.
Belyaeva, Z., Krivorotov, V., Kalina, A., and Yerypalov, S. (2016). Competitiveness of Russian regional
oil complexes, Competitiveness Review, 26(2), 147 - 165
Bill R., and Zeher M. L. (2001), Encyclopedia of Geoinformatics, Springer, Heidelberg.
Brancato G., Macchia S., Murgia M., Signore M., Simeoni G., Blanke K., Körner T., Nimmergut A.,
Lima P., Paulino R., and Hoffmeyer-Zlotnik J. H. P. (2004), Handbook of Recommended Practices for
Questionnaire Development and Testing in the European Statistical System, Available at:
http://epp.eurostat.ec.europa.eu/portal/page/portal/quality/documents/RPSQDET27062006.pdf
(Accessed August 31, 2015)
Briesch R. A., and Chintagunta P., Fox E. (2009), How does assortment affect grocery store choice?,
Journal of Marketing Research, 46 (2), 177-189.
Cho, D-S., Moon, H-C., and Yin, W. (2016). Enhancing national competitiveness through national
cooperation: The case of South Korea and Dubai, Competitiveness Review, 26(5), 482 - 499
30
Cliquet G. (1998), Integration and Territory Coverage of the Hypermarket Industry in France: A Relative
Entropy Measure, International Review of Retail, Distribution and Consumer Research, 8 (2), 205-
224.
Cliquet G. (2001), Integration and territory coverage of the hypermarket industry in France: A relative
entropy measure, International Review of Retail, Distribution and Consumer Research, 8 (2), 205-224.
Cliquet G. (2006), Integration and territory coverage of the hypermarket industry in France: A relative
entropy measure, International Review of Retail, Distribution and Consumer Research, 8 (2), 205-224.
Cohon J. L. (1978), Multiobjective programming and planning, Academic Press, New York.
Couper M.P., Beatty P., Hansen S., Lamias M., and Marvin T. (2000), CAPI Design Recommendations,
Report submitted to the U.S. Bureau of Labour Statistics.
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
De By R. A., Ellis M., Georgiadou Y., Knippers R., Sun Y., Kraak M. J., Weir M., Radwan M., Westen
C., Kainz W., and Sides E. (2001), Principles of Geographical Information Systems, Enschede, The
Netherlands.
Densham P. J. (1991), Spatial decision support systems, Geographical information systems: Principles
and applications, 1, 403-412.
Didier M. (1990), Utilité et valeur de l’information géographique, Economica, Paris.
Dillman D.A. (2000), Mail and Internet Surveys. The Tailored Design Method, New York: John Wiley &
Sons.
Duan J. A., and Mela C. F. (2009), The role of spatial demand on outlet location and pricing, Journal of
Marketing Research, 46, 260-278.
Dubois A., and Gadde L. E. (2002), Systematic combining: an abductive approach to case research,
Journal of Business Research, 50, 553-560.
Dwyer J. H. (1989), Statistical models for the social and behavioral sciences, Oxford: Oxford University
Press.
Eaton B. C., and Lipsey R. G. (1976), The Introduction of Space into the Neo-classical Model of Value
Theory, Working Papers 239, Queeen’s University, Department of Economics.
Eaton B. C., Lipsey R. G. (1982), An Economic Theory of Central Places, The Economic Journal, 92
(365), 56-72.
ESRI (2012), Approaches to school business GIS programs, Redlands, CA: Environmental Systems
Research Institute.
Ferreira, J., Fernandes, C., and Raposo, M. (2015). The Effects of Location on Firm Innovation Capacity.
Journal of the Knowledge Economy, http://link.springer.com/article/10.1007/s13132-015-0281-4
Fink A. (1995), How to Sample in Surveys, London: Sage Publications.
Fowler Jr. F. J. (1993), Survey Research Methods, 2nd ed., London: Sage Publications.
31
Garber R. K., Hedges D. J., Herke S. W., Hazard N. W., and Batzer M. A. (2004), The Alu Yc1
subfamily: sorting the wheat from the chaff, Cytogenet. Genome Research, 110 (1-4), 537-542.
GEODAN (2004), A flight simulator for site planning, provides an Geomarketing reliable prediction,
Geodata, 15 (1), 12-14.
Good, D. (2014). Predicting real-time adaptive performance in a dynamic decision-making context.
Journal of Management & Organization, 20 (6), 715-732.
Grewal D., Levy M., Mehrotra A., and Sharma A. (1999), Planning merchandising decisions to account
for regional and product assortment differences, Journal of Retailing 75, 405–424.
Hassan S. S., and Craft S. H. (2005), Liniking global market segmentation decisions with strategic
positioning options, Journal of Consumer Marketing, 22 (2), 81-89.
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
32
Manyika, J., Chui, M., Brown, B., Bughin, J., Dobbs R., Roxburgh, G. and Byers, H.A. (2011). Big data:
The next frontier for innovation, competition, and productivity. US: McKinsey Global Institute.
McDonald R. P. (1985), Factor analysis and related methods, Hillsdale, NJ: Lawrence Erlbaum.
Meissner, P., and Wulf, T. (2014), Antecedents and effects of decision comprehensiveness: The role of
decision quality and perceived uncertainty, European Management Journal, 32 (4) 625-635.
Minai, M.S. and Lucky, E.O.I. (2011). The Conceptual Framework of the Effect of Location on
Performance of Small Firms. Asian Social Science, 7 (12), 110-118
Montgomery A.L. (1997), Creating Micro-Marketing Pricing Strategies Using Supermarket Scanner Data,
Marketing Science, 16 (4), 315-337.
Morosini P., Shane S., and Singh H. (1998), National cultural distance and cross-border acquisition
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
33
Thünen J. H. (1895), Der isolierte Staat in Beziehung auf Landwirtschaft und Nationalökonomie, Berlin,
Hempel and Parey.
Tinbergen J. (1964), Sur un modèle de la dispersion géographique de l’activité économique, Revue
d’économie politique, 430-441.
Volle P. (2000), Du marketing des points de vente à celui des sites marchands: spécificités, opportunités
et questions de recherche, Revue Française du Marketing, 177/178, 83-101.
Weber P. (2010), A Decision Support System for business site selection, Department of Computer
Science, University College London.
Wellhoff A. (2001), Le merchandizing: bases, nouvelles techniques, category management, 5th edition,
Dunod, Paris.
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
NOTES
1
For more information, please visit: https://blog.kissmetrics.com
2
For more information, please visit: http://www.gfk-
geomarketing.com/en/market_data/market_data_by_theme/roper_consumer_styles.html
3
For more information, please visit: http://www.onlinemarketing-trends.com
Authors:
Donika Zendeli is MA of Marketing, South East European University. Actualy is working in Coordea,
which aim is to assist our clients in their day-to day activities, as well as long-term development
strategies. The Coordea team is made up of ambitious and creative people with the right mix of skills to
address the needs and preferences of our clients.
34
awarded for Outstanding Teaching and Learning by American University of the Middle-East, Kuwait.
Among her recent books is the Female Entrepreneurship in Transition Economies.
Léo-Paul Dana is a Professor at Montpellier Business School and Marie Curie Fellow at Princeton
University. He obtained his BA and MBA at McGill University and PhD from the Ecole des Hautes Etudes
Commerciales HEC-Montréal. He served as the Deputy Director of the International Business MBA
program at NTU in Singapore, and on the faculties of McGill University, INSEAD, and the University of
Canterbury. He holds the title of Adjunct Professor at the University of Regina and the same at the
University of the South Pacific. He has published extensively in a variety of journals including the British
Food Journal, Cornell Quarterly, Entrepreneurship: Theory and Practice, Journal of Small Business
Management, Journal of World Business and Small Business Economics.
Downloaded by RMIT University Library At 03:47 05 December 2017 (PT)
35