---
id: "question-online-service-dynamics"
type: "open-question"
source_timestamps: ["¶20"]
tags: ["edge-cases", "business-models"]
related: ["concept-relative-proximity"]
resolution_path: "Empirical studies analyzing location-based ad responsiveness for e-commerce delivery zones or home-service businesses (e.g., plumbers, landscapers) where the customer does not travel to a physical storefront."
sources: ["tail1"]
sourceVaultSlug: "hbr-seg-tail1"
originDay: 1
articleStem: "hbr-tail-115-location-based-advertising"
sourceUrl: "https://hbr.org/2026/03/a-better-strategy-for-location-based-advertising"
sourceTitle: "A Better Strategy for Location-Based Advertising"
---
# How do spatial dynamics apply to online or service businesses?

**Open question:** How do these spatial dynamics apply to **online or service businesses**?

The authors explicitly caveat that their analysis focuses on **physical retail where ads drive store visits**. Businesses that are primarily online, or **service businesses where customers don't choose based on travel cost**, operate under **'different dynamics'** — the exact nature of which the source leaves unexplored. This bounds the reach of [[concept-relative-proximity]].

**Resolution path:** Empirical studies of location-based ad responsiveness for e-commerce delivery zones or home-service businesses (plumbers, landscapers) where the customer does not travel to a storefront.

## Enrichment context
The caveat is well grounded: for e-commerce and online food delivery (OFD), customer travel cost is replaced by **service reach and delivery logistics**, and choice hinges more on brand, digital experience, price, and platform presence. But a nuance to hold — research (e.g., OFD repeat-purchase studies) shows **location still matters** even in digitally mediated services, so relative proximity may remain relevant for **delivery zones, warehouse proximity, or customer clustering** rather than disappearing entirely.