Validating the gravity-based competitive location model using inferred attractiveness

The attractiveness of retail facilities is an essential component of models analyzing competition among retail facilities. In this paper we introduce an innovative method for inferring retail facility attractiveness. Readily available data from secondary sources about customers' buying power and sales volumes obtained by competing retail facilities are used. The gravity-based competitive facility location model is used to predict sales. The attractiveness of the retail facilities is inferred from these data. The procedure is used to confirm the gravity competitive facility location model. Inferred attractiveness results based on empirical data from Orange County, California, were compared with an independent survey with excellent match.