Abstract
Using an absorbing Markov chain model, we formulate consumers’ shop-around behaviors as the Kaiyu Markov model. Based on the Kaiyu Markov model, we conceptualize the shop-around effect to enable us to evaluate retail spatial structures, which we define as an increase in the frequency of visits to each commercial district due to consumers’ shop-around behaviors. We improved the traditional survey of consumers’ purchasing behaviors to collect the actual consumers’ shop-around behaviors and applied the Kaiyu Markov model to the data obtained from the improved survey conducted for the metropolitan area of Nobeoka City, Japan. We estimated the actual shop-around effects for the 17 commercial districts in the city and showed that the concept of the shop-around effects serves as a helpful tool for evaluating and planning the retail spatial structure of the city.