Targeting Potential Grocery Customers In The Gta Using A Market Penetration Model
by Michael Lee © 2008

This paper provides an evaluation of a spatial analytical technique that can aid a grocery business in targeting potential customers within the Greater Toronto Area. A principal component analysis is used to reduce a number of demographic and behavioural variables to 6 underlying factors before they are entered as independent variables in a multiple regression (OLS) to produce a market penetration model. The results of the model indicate a high level of explanation (R2 = 75.4%). The research demonstrates the significance of using GIS, spatial analysis, and multivariate techniques to help increase market penetration for grocery retailers in the GTA by targeting potential new customers.