Retail gravitational theory is less useful in defining trading areas for metropolitan areas than in rural areas.

Question

Quizplus · Accepted Answer

Retail gravitational theory is based on the assumption that consumers will travel farther to larger retail centers with wider selections of goods and services. In rural areas, where there are fewer retail options, this theory can be useful in defining trading areas and understanding consumer behavior. However, in metropolitan areas, there are typically numerous retail options within a smaller geographic area, and other factors such as demographics, income, and psychographics are more important in determining trading areas.

Retail Gravitational Theory Is Less Useful in Defining Trading Areas