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A comparison of two retail spheres of influence

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A Comparison of Two Retail Spheres of Influence Introduction The purpose of this study unit is focusing on investigating a low order shop and a high order shop which enhance our knowledge towards the Sphere of Influence. Sphere of Influence is an area or region over which an organization or state disregards cultural, economic, military or political domination. But in this case we are studying, in some areas of habitation of where the customers come from, shopping or retail outlets or indeed destination outlets, have a sphere of influence over towns of certain areas, for example the Central business district (CBD). In order for these shops to open, they have to look at the threshold population. According to Britannica Encyclopedia, threshold population is "the minimum number of people needed for a service to be worthwhile." In order to fully understand the purpose of the study, it was best for us to explore it ourselves by going to a field study, experiencing it in real life, therefore, we can learn right on the spot. Therefore, with a prepared set of questions, we gathered in pairs and went to different areas in Hong Kong to collect data. For my investigation, I decided on two areas: Christian Dior in The Landmark in Central for the high order store and Wellcome in Causeway Bay. ...read more.


At around 6pm-8pm, I collected 60 data, 30 for each Low Order and High Order (refer to appendix at the back). After organizing my data, I used ArcGIS 9.1 and input all the data into the map and I will later further explain and analyze on those maps. Data description and analysis From the data collected, the map shows the sphere of influence of the high order shop is larger than the sphere of influence of the low order shop. As said in the introduction, their locations are affected by the threshold population. The sphere of influence is larger because the range of goods sold in the high-end shop usually is high in value and limited. While on the contrary, the low-end store sells goods that are usually low in value and requires a smaller threshold population, therefore, the sphere of influence is smaller, as they are located in almost every neighborhood. Thus, this reinforces my hypothesis: The Sphere of influence is larger for the high order store than the Sphere of Influence for the low order store. As shown in the map, the furthest data point for the high order shop is Clear Water Bay., residents in such places will have to travel all the way to the city in order to access the high order shop. ...read more.


While the low order shop is spread out equally in various places, therefore the range would be less and making the Sphere of Influence smaller. The range of transportation used to travel to the low order shop is less than the range of transportation used to travel to the high order shop is also accepted because the data analysis shown a graph indicating the people travelling to the high order shop rely on many different transports while the low order shop mostly rely on walking. Last but not the least, the amount of money spent on the high order store is more than the money spent on the low order store is correct. Because it is also proved in the data analysis and with the help of the pie charts, the total amount of money spent on the high order store is clearly a lot higher than the low order store. Research Limitations For the field study investigation, there were limitations because I went to Central during Rush hour and therefore took a very long time to collect the data I needed. Next time if I were to do this investigation again, I would plan my time earlier, when there are less people on the streets, less crowded, meaning the people are less busy as well, and I can conduct the questionnaire more efficient and effective and retain more accurate results. ...read more.

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