HUFF’S GRAVITY MODEL

By

Anoop, Durgesh, Fahim , Anand ,Ranjan , Venky

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

shrinks

ASSUMPTIONS:

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

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

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

The “pull” of any given shopping area is influenced by the proximity of competing shopping areas

HUFF’S MODEL FORMULA

tripsshopping of kinds different on time travelofeffect thereflects that oexponent tAn

center shopping point to starting scustomer' from distanceor timeTravel

center shopping of Size

center shopping particular a to travelingorigin ofpoint given aat customer a ofy Probabilit

Where

ijT b

ijT

jj S

jiijP

n

1jb

ijTjS

bijTjS

ijP

UNIVERSITY AND SHOPPING CENTERS: GRAVITY MODEL ILLUSTRATION

IFIM Business school TOTAL Mall500,000 sq ft

OLD TOWN100,000 sq ft

Forum Mall1,000,000 sq Ft

3 m

iles

5 Miles

1 mile

HUFF’S MODEL: THE SOLUTION

Pij = 1000 32

(1000 32) + (500 52) + (100 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