process of choosing the optimal location for a business based on accessibility to and availability of customers as well as considerations as to space costs, size, and other physical characteristics, zoning regulations, investment tax credits, and the quality of the available workforce. The greater the perceived value of the goods offered, the greater the effort a consumer is willing to expend in order to reach the seller’s place of business. For example, a grocery store in a rural area with limited competition does not have to worry about accessibility as much as a dry cleaner in an urban area with numerous competitors. Sophisticated computer modeling tools can be used to evaluate site alternatives based on the number and characteristics of consumers in each prospective location.
Dictionary of Marketing Terms for: site selection