Establishment Decision of Experience Stores: Insights into Marketing Effect

Abstract

Methods of contacting customers are constantly evolving. An increasing number of manufacturers have established experience stores, plazas or centers that provide marketing, education, and trade functions to enhance business performance. This paper develops integer programming models to analyze the experience store establishment decision. Demand functions, cost parameters, and firm learning curves that impact on the experience store decision are also examined. In addition, this paper provides two case studies to validate the proposed experience store establishment models. Three proposed models can assist managers in developing marketing strategies related to the experience store establishment.