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:

${\displaystyle P_{ij}={\frac {A_{j}^{\alpha }D_{ij}^{-\beta }}{\sum _{k=1}^{n}A_{k}^{\alpha }D_{ik}^{-\beta }}}}$

where :

• ${\displaystyle A_{j}}$ is a measure of the attractiveness of store j
• ${\displaystyle D_{ij}}$ is the distance from the consumer's location, i, to store j.
• ${\displaystyle \alpha }$ is an attractiveness parameter
• ${\displaystyle \beta }$ is a distance decay parameter
• ${\displaystyle n}$ 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. Archived from the original on 2021-04-22. 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.