Huff model

In spatial analysis, the Huff model is a widely used tool for predicting the probability of a consumer visiting a site, as a function of the distance of the site, its attractiveness, and the relative attractiveness of alternatives. It was formulated by David Huff in 1963.[1] It is used in marketing, economics, retail research and urban planning,[2] and is implemented in several commercially available GIS systems.

Its relative ease of use and applicability to a wide range of problems contribute to its enduring appeal.[3]

The formula is given as:

where :

  • is a measure of attractiveness of store j
  • is the distance from the consumer's location, i, to store j.
  • is an attractiveness parameter
  • is a distance decay parameter
  • is the total number of stores, including store j

References

  1. Huff, David L. (1963). "A Probabilistic Analysis of Shopping Center Trade Areas". Land Economics. 39 (1): 81–90. doi:10.2307/3144521. ISSN 0023-7639. JSTOR 3144521.
  2. "Huff, David | AAG". www.aag.org. Retrieved 2021-04-20.
  3. Dramowicz, Ela (2005-07-03). "Retail Trade Area Analysis Using the Huff Model". www.directionsmag.com. Retrieved 2021-04-20.
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