Katherine Goff
Market Penetration Analysis Using Spatial Modeling: A Lawn Care Company © 2008
The main objective of this study is to demonstrate how spatial modeling can be used by businesses to streamline marketing efforts. A lawn care company operating in the Greater Toronto Area has been used as a case study to exhibit the applicability of the proposed methodology. Several independent variables were derived from the company�s customer database and data from the 2006 Canadian Census. These variables were utilized in multiple regression analysis. Two models were created, a simple market model and a two surface model, with the two surface model accounting for differences between urban and suburban parts of the GTA. The two surface model yields acceptable explanatory power (R2 = 54%), though there is some evidence of spatial autocorrelation among the residuals. Despite this, the model appears to work well in many parts of the GTA and is suitable for use by lawn care companies to target marketing efforts.