These final consumers are attracted by a shopping center or town by the assortment of goods offered for sale and by the. Although algebraic manipula tions allow the law of retail gravita tion and the breakingpoint equation. Reillys law of retail gravitation is widely used in the determination of potential retail trade area. In addition to newton s law of gravity in the physical sciences, there were other antecedents to reilly s law of retail gravity. Reillys law reillys law reillys law of retail gravitation, a traditional means of tradingarea delineation, establishes a point of indifference between two cities or communities, so the trading area of each can be determined the short version. Reillys model, as represented by both his law of retail gravitation and the breakingpoing equation, predicts shopping behavior of rural people for relatively ubiquitous goods and serv ices4. Reillys law of retail gravitation reillys law of retail gravitation is a theoretical means of trade area definition. In economics, reillys law of retail gravitation is a heuristic developed by william j.
Retail gravity theory, reilly s law of retail gravitation, point of indifference retail gravity theory. Reilly based his law of retail gravitation, on an analogy with newtonian physics linked with empirical observations of shopping behaviour placed in an interurban structural context. Economic geography reillys retail gravitation youtube. The pure gravity model is reflected in reilly s law of retail gravitation reilly, 1929, which is used to calculate market areas. This paper attempts a reformulation and generalisation of reillys 1931 law of retail gravitation.
Others have refined and modified the variables and parameters in reillys law. M i and m j are masses population, total income, etc. Reillys law reillys law reillys law of retail gravitation a. According to reillys law, customers are willing to travel. Reilly himself challenged workers in the field to produce new evidence which would refute or. Reillys law the purpose of reillys law of retail gravitation 1931 is to find a point of indifference between two locations, so the trading area of each can be determined. Louis, missouri, rather than those of kansas city, missouri, although according to this law they should have favored the st. His work and theory, the law of retail gravitation, allows us to draw trade area boundaries around cities using the distance between the cities and the population of each city. Pdf this paper attempts a reformulation and generalisation of reillys 1931 law of retail gravitation. The two retail gravity models or formulas are huff s gravity model, and reilly s law of retail gravitation. Carey had included a description of the tendency of humans to gravitate together in an 1858 summary of social science theory. Location planning theories in valuation of retail premises. Retail gravity theory, reillys law of retail gravitation, point of indifference retail gravity theory.
Aug 12, 2010 reillys law of retail gravitationreillys law of retail gravitation based on newtonian gravitation principles,based on newtonian gravitation principles, explain how large urbanized areas attract customers from smallerexplain how large urbanized areas attract customers from smaller rural ral communities. In this paper an examination of the evolution of reilly s law is made, the contemporaneous wheel of retailing theory being used as an organisational framework. This activity can be applied in a retailing class related to the site and location selection units, in a consumer behavior class related to outlet selection in the consumer decision process, or when examining situational influences. Gravity models tend to be popular and primarily include reillys law of retail. Basic assumptions of reillys law of retail gravitation. New laws of retail gravitation journal of marketing. Reilly himself challenged workers in the field to produce new evidence which would refute or strengthen his law, and developments in spatialinteraction theory during the last decade are used here in taking up this challenge. Arguably the most popular of theses gravity models and methods is converses breakingpoint model which was based on reillys law of retail gravitation which first appeared in 1929 as a research monograph at the.
Young in 1924 described a formula for migration that was based on the physical law of gravity, and h. This point is assumed to be a function of the distance between two locations pondered by their respective size population often used for this purpose. Gravitation, converses breakingpoint model, huffs model of trade area. A breaking point can be defined as a balanced point between two places. Based based between discovered breaking point budget territories charge accounts chargeaccount business cities and towns city draws city increases city or town city to b. Reillys law 1 was developed in the 1930s and was a simple application of the newtonian universal law of gravitation to try to provide an explanation of how retail trade areas extended out from cities and towns. This paper attempts a reformulation and generalisation of reilly s 1931 law of retail gravitation.
Reillys law of retail gravitation wikimedia commons. An empirical test of reillys law of retail gravitation by william burdette wagner topics. Reilly published a second edition of the work in 1953. The origins of spatial interaction theory date from the pioneering studies of william j. Learn vocabulary, terms, and more with flashcards, games, and other study tools. This video tutorial demonstrates how to use reillys retail gravitation formula to calculate retail gravitation and the breakpoint distance between competing cities or malls, e.
Is based on the premise that people are attracted to larger places to do their shopping. Media in category reilly s law of retail gravitation this category contains only the following file. Another look at retail gravitation theory shippensburg university. Wagner the author is an assistant professor of marketing at the university of missouri. Reilly in 1931,it says that people in a larger city will travel farther to shop than people in a smaller city. The law of retail gravitation ultimately derives its name from. Reillys law of retail gravitation 1929 applied the newtonian gravity model directly an d suggested that retail travel between two centers would be proportional to the product of their populations and inversely proportional to the square of the distance separating them. Reillys law of retail gravitation assumes both cities are accessible from a major thoroughfare population data represent differences in the amounts of goods and services available from each city when presented with two city choices, customers will pick the city with a larger population. Reilly was inspired by the law of gravity to create an application of the gravity model to measure retail trade between two cities. Time and distance traveled influence willingness to shop in a given city. Reilly s law of retail gravitation reilly s law of retail gravitation is a theoretical means defining a trade area. More likely to travel shorter distances when possible. Reilly created a formula for calculating the precise point of geographical equilibrium between two nearby trade areasthe point at which onehalf of the population shops in either trade area. In this paper an examination of the evolution of reillys law is made, the.
Suggests consistencies in shopping behavior yield to mathematical analysis and prediction. An empirical test of reillys law of retail gravitation. Media in category reillys law of retail gravitation this category contains only the following file. Reilly of the university of texas in austin had access to data on the location of purchases by the residents of the various counties in texas.
He called this model the law of retail gravitation. Reillys model was revised by converse 1949, who derived a wellknown breakingpoint formula from equation 3. It is based on the premise that people are attracted to larger communities to do their shopping, but the time and distance they must travel influence their willingness to shop in a given city. Article information, pdf download for reillys challenge. In its simplest form, it assumes two market centers towns, shopping malls, etc. Of all published articles, the following were the most read within the past 12 months. Retailing is selling consumer goods in small quantities to the final consumers. This note presents some information which does not agree with reilly s law of retail gravitation. The law of retail gravitation ultimately derives its name from newtons law of gravity, which explains and predicts the gravitational attraction between astronomical bodies of varying mass reilly 1953. Reilly s law of retail gravitation ranks among the classics of marketing geography. He knew that generally the farther away two counties were from each other the fewer transactions would take place between them. Gravitation, converses breakingpoint model, huffs model of trade area attraction and christallers central place theory. Reilly himself challenged workers in the field to produce new evidence which would refute or strength his law, and developments in spatialinteraction theory during the last decade are used here in taking up this challenge. Find in a library download this page pdf download left page pdf download right.
Reilly published a model designed to provide estimates of the trade areas of central places. The first recognised refinements and modifications to reillys law came from converse 1949 in identifying an inertia factor that reflected the reluctance of a consumer to move any distance in making a purchase. Reillys law of retail gravitation is a theoretical means defining a trade area. The distancedecay function of geographical gravity model2015. Sep 25, 2015 this video tutorial demonstrates how to use reilly s retail gravitation formula to calculate retail gravitation and the breakpoint distance between competing cities or malls, e. An empirical test of reillys law of retail gravitation william b. Reillys law holds that trade centers draw consumers from neighboring communities in. Reillys law of retail gravitation financial definition of. It basically states that there is a mathematical equation for. The law of retail gravitation differs in that it is much more mathematicallyoriented than the former. Reillys law of retail gravitation ranks among the classics of marketing geography. The residents of columbia, missouri, showed no preference for patronizing the merchants of st. Reilly march 6, 1899 november 17, 1970 was an american economist, university lecturer and writer who is best known for developing reillys law of retail gravitation which was named after him.
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