Alexander Little

Testing the Spatial Accuracy of Selected Trade Area Delineation Techniques in Relation to Cinema Patronage: A Comparison of Toronto and Vancouver © 2014

The Spatial accuracy and effectiveness of three trade area delineation techniques for use in the Canadian cinema industry was studied within the Toronto and Vancouver CMA's (as defined by Cineplex). To complete this analysis, theoretical trade areas were delineated for each Cineplex theatre in Toronto and Vancouver using two commonly implemented techniques, the Huff Model and Theissen Ploygons. To supplement these frequently used methods, a relatively forgotten technique, the Converse Breaking-Point, was modified from its original purpose to allow for the creation of intra-urban polygonal trade areas. Information provided by Cineplex on SCENE Member patronization of theatres for the year 2013 allowed for the creation of distance decay curves to provide conceptual understanding of the relationship between cinema customers and the distance travelled to theatre locations. This information on patronization allowed for the spatial accuracy of the trade area delineation techniques implemented to be tested using authentic customer data. The results of the analysis indicate that each model provides effective trade area delineation under different circumstances. Trade area techniques that create mutually exclusive trade zones had increased utility in areas of sparse competition with limitations in areas of dense competition. On the other hand, the Converse Breaking-Point proved more effective in areas of dense competition as a result of its creation of overlapping trade areas. Distinct regional patterns of distance decay were also discovered across both CMA's exposing underlying patronization patterns present across both of the vastly different Canadian retail markets studied.

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