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THE EFFECT OF DISTANCE DECAY: A STUDY OF AUTOMOTIVE RETAILING

Retail automotive literature that examines how the distance between a retail automotive facility and the prospective purchaser affects market performance is limited. Primary data for this study indicates that distance and purchase in the retail automotive sector move in opposite directions. This study examines similar goods that have high barriers of entry and proposes other methods of increasing market reach. This is a study of the conditions that affect the market performance for imported luxury vehicles. First, is the effect of distance on purchase decisions. Vehicular sales drop the further away a customer is from a car dealership. We call this phenomenon distance decay. Distance decay is defined as: the interaction between two locations declines as the distance between then increases. Secondly, when similar brands are viewed as substitutes, the consumer will choose the brand with the closest automotive service department to their residence or place of employment. Thirdly, door-to-door selling can decrease distance decay. Lastly, pick-up and delivery service can decrease distance decay. Data from 30,936 prospects and individuals who entered, phoned, or emailed a dealership inquiring about purchasing a new Audi were used in the study. These prospects will be categorized by who intended to buy and who actually purchased a car. In addition to the prospects, data from 6,153 individuals who purchased a new Audi from four Audi dealerships in the greater Philadelphia area and from the framed field experiment were used in the study. These categories will then be further labeled by ZIP code and city to determine the effects of distance. Then, possible solutions will be performed on test groups to determine what alternatives from other industries can be used to improve market performance involving long distances. / Business Administration/Interdisciplinary

Identiferoai:union.ndltd.org:TEMPLE/oai:scholarshare.temple.edu:20.500.12613/1927
Date January 2017
CreatorsMiller, Charles Miller
ContributorsRosenthal, Edward C., 1959-, Mudambi, Susan, Chitturi, Pallavi, Wattal, Sunil
PublisherTemple University. Libraries
Source SetsTemple University
LanguageEnglish
Detected LanguageEnglish
TypeThesis/Dissertation, Text
Format105 pages
RightsIN COPYRIGHT- This Rights Statement can be used for an Item that is in copyright. Using this statement implies that the organization making this Item available has determined that the Item is in copyright and either is the rights-holder, has obtained permission from the rights-holder(s) to make their Work(s) available, or makes the Item available under an exception or limitation to copyright (including Fair Use) that entitles it to make the Item available., http://rightsstatements.org/vocab/InC/1.0/
Relationhttp://dx.doi.org/10.34944/dspace/1909, Theses and Dissertations

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