Exploring location determinants of Asia’s unique beverage shops based on a hybrid MADM model

Abstract

Identifying relevant location determinants is a good starting point for shop operators, help to increase profitability and, thus, avoiding business failure. Traditional Analytic Hierarchy Process (AHP) or the Analytic Network Process (ANP) have shortages that require improvement. Herein, Decision-Making Trial and Evaluation Laboratory (DEMATEL), ANP based on DEMATEL (DANP), and modified Vlse Kriterijumska Optimizacija I Kompromisno Resenje (modified VIKOR) are used to construct a hybrid multiple-attribute decision making (MADM) model, encompassing three dimensions and thirteen criteria in exploring the location determinants of Asia’s unique Bubble Tea Shops (BTSs) and to evaluate three preselected alternatives in Nanjing, China. The empirical findings of the DEMATEL method reveal that traffic traits (D1) and site traits (D2) are critical to BTSs, and that once these are enhanced, shop traits (D3) are also improved. Criteria deemed as important, based on the DEMATEL and DANP methodology, are (in descending order): proximity to a street corner (C2), proximity to public transportation systems (C1), road width (C3), proximity to communities (C5), proximity to commercial areas (C6), types of shop (C9), and proximity to schools (C7). Different decision-making rankings among alternatives are indicated based upon the modified VIKOR method and corresponding strategies for improvement are presented.

Keywords

• bubble tea shop (bts)
• location determinants
• decision-making trial and evaluation laboratory (dematel)
• analytic network process based on dematel (danp)
• modified vlse kriterijumska optimizacija i kompromisno resenje (modified vikor)