Huff’s Gravity Model

HUFFS GRAVITY  MODEL  By

Anoop, Ano op, Dur Durge gesh, sh, Fahim Fahi m , Ana Anand nd ,R ,Ranj anjan an , Venk enkyy

HUFF¶S GRAVITY MODEL Based on the premise that the probability that a given customer will shop in a particular store or shopping center becomes larger as the size of store or center grows and distance or travel time from customer 

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shrinks

ASSUMPTIONS: f

The proportion of consumers patronizing a given shopping area varies with the distance from the shopping area

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The proportion of consumers patronizing various shopping areas varies with the breadth and depth of merchandise offered by each shopping area

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The distance that consumers travel to various shopping areas varies for different types of products purchased

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The ´pullµ of any given shopping area is influenced by the proximity of competing shopping areas

HUFF¶S MODEL FORMULA S j z T ij b P ij ! n b § S j z T ij j !1 Where P ij ! Probabilit y of  a customer at a given point of  origin i traveling to a particular shopping center  j S j ! Size of  shopping center  j T ij ! Travel time or distance from customer' s starting point to shopping center  b ! An exponent t o T ij that reflects the effect of  travel time on different kinds of  shopping trips

UNIVERSITY AND SHOPPING CENTERS: GRAVITY MODEL ILLUSTRATION IFIM Business school

Foru Mall 1,000,000 sq Ft 1

ile

OLD TOWN 100,000 sq ft

TOTAL Mall 500,000 sq ft

HUFF¶S MODEL: THE SOLUTION 1000 z 32

P ij  =

(1000 z 32) + (500 z 52) + (100 z 12) Probability = .43 .43 x 12,000 students = 5,160 customers 5,160 customers x Rs.150 = Rs.774,000

Repeat steps 1 to 3 for the remaining areas and then sum them .

Thank You

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